Investor Relations Week: Santa’s rally, Tencent’s one-off payout, and US stock exchanges look to Southeast Asia


Investor Relations Week takes a break for the holidays. See you in 2022!

– Investors are “closely watching” the latest data on the fast-spreading Omicron variant for signs of the virus’s impact on the US economy and earnings “as the market moves towards what has historically been a period strong year for stocks, ”Reuters said on Dec. 23. The news agency noted that at the time of the report’s publication, the S&P 500 had only fallen 0.1% since the Omicron variant was identified on November 24. Reuters said it was not clear what effect Omicron would ultimately have in the markets but noted that a South African study into the variant’s apparent lower severity “bodes well” for a “Father’s rally. Christmas “. Historically, U.S. stocks have risen in the last five trading days of December and the first two days of January in the 56 out of 75 years since 1945, the news agency said, citing data from CFRA Research.

However, CityWire reported that the FTSE 100 “made a modest rise” at the start of the last full trading day of the year on December 23, but “failed to deliver the Santa Claus rally as investors like to see, “despite research showing omicron The coronavirus variant may be less severe than the delta strain.

– Tencent has announced that it will sell most of its shares in Chinese e-commerce giant to its shareholders, CNBC reported – a move it says has resulted in the “downfall” of shares in . Tencent has said it will declare a one-time dividend in which it distributes more than 457 million Class A common shares of to shareholders, with a total value of approximately HK $ 127.7 billion ( $ 16.37 billion).

– US stock exchanges are pursuing listings of companies in Southeast Asia and India to counter a sudden slowdown in activity from China, reported the Financial Time (paying). Asian companies based outside China have been largely absent from the US stock market, he said, but they are taking a closer look because “Sino-US tensions are causing new Chinese quotes to dry up and threaten income from the NYSE and Nasdaq stock market “. Bob McCooey, Nasdaq Chairman for Asia-Pacific, told the newspaper, “We believe the whole region is ripe for IPO activity. The pipeline has grown from a handful of companies, if you ask me a year ago, to a few dozen today.

– In related news, Nikkei Asia reported that the Indonesian Stock Exchange (IDX) has relaxed rules for new listings in an attempt to attract more IPOs, including those from the “booming tech sector ” from the country. The move comes less than a month after the Financial Services Authority, or OJK, announced new regulations that allow tech companies to issue multiple voting shares – with varying levels of voting rights – when they are introduced in stock Exchange. Efforts to attract local tech companies to the IDX are becoming more urgent as Western exchanges seek Southeast Asian companies for overseas listings, Nikkei Asia added.

– Bloomberg (paywall) said more than half of this year’s 481 U.S. IPOs are trading below their bid prices, according to data compiled by the news agency. These deals, excluding an even longer list of Special Purpose Acquisition (Spac) companies, collectively set a record high of around $ 167 billion, easily beating 2020. Bloomberg said the volatility and the poor performance meant that “enthusiasm for IPOs waned” at the end of the year. He warned that while the first quarter of 2022 appears to be busy, “expect a volatile year to come.”

– “Companies are preparing for another record year for the conclusion of agreements”, according to The Wall Street Journal (paying). Mergers and acquisitions hit a record high in 2021, fueled by low interest rates, increased private equity fundraising and efforts by companies to respond to broader changes in their industries, he said. said, noting that the total value of global M&A deals as of Dec. 21 was $ 5.7. tn. This is an increase of 64% from the same period a year earlier, according to data provider Refinitiv. The total number of transactions, meanwhile, rose 22% during that period, to 59,748, Refinitiv told the newspaper. the WSJ said that while “many of the factors that propelled the conclusion of agreements in 2021 are expected to continue into the next year,” policy changes on the horizon “could slow the pace of business mergers.”

– Chairman of Third Point Investors Ltd, a London-based investment fund linked to Dan Loeb’s activist group, resigns after receiving “personal threats” amid escalating fight with investors rebels, according to FT. The newspaper said Steve Bates, a former U.S. stock analyst and JPMorgan executive who had been chairman since 2019, ruled that “circumstances have made his continued service as a director of the company untenable,” according to a statement from the board. ‘administration. The move follows meetings between TPIL and activist investors Asset Value Investors and Staude Capital. the FT described Bates’ exit as “the latest twist in a feud that pitted Loeb, one of the world’s toughest activists, against a group of dissident shareholders.” Loeb on Thursday called the activists a “stain on institutional investors” and said their “youthful antics smacked of hopelessness and inexperience”.

– Artificial intelligence firm SenseTime saw its Hong Kong IPO oversubscribed, after “global investors – minus those in the United States – dismissed U.S. sanctions to bid for shares in the ‘one of the world’s leading AI companies,’ said the South China Morning Post. SenseTime received around HK $ 2 billion in orders for the retail tranche of its closing IPO, the newspaper said – about 2.3 times oversubscription, brokers estimate . The company’s shares will first trade on December 30, marking Hong Kong’s largest IPO since September.

However, SCMP added that the result “pales” compared to the four-time oversubscription received by the Hong Kong-based company in early December before it was added to the U.S. government’s sanctions list under Uighur law. protection of forced labor. While the sanction did not prevent U.S. investors – institutional or retail – from owning SenseTime shares, the company excluded them from its sale of shares.

– The FT reported the news that Fidelity International has listed a second active EST in Australia in response to “growing demand from local investors” for such products. The $ 706 billion asset manager initially launched its global demographic strategy as a managed fund in 2012. The ETF version of the fund is now listed on the Australian Stock Exchange under the symbol FDEM. Speaking to the newspaper, Alva Devoy, chief executive of the Australian branch of Fidelity, said the asset manager was launching the strategy as a listed vehicle “because Australian investors are increasingly interested in ETFs at active management “. She said local demand for active ETFs was strong as the products were “easy to access” through ASX.

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