Tuesday, April 22 2025 | ASIA TODAY INTERNATIONAL - Reporting the Business that Matters in Asia
HONG KONG -- While Asia dominates car battery production, China dominates the supply chain in terms of EV battery components, according to the global financial group, Natixis. "Most EV battery components are currently produced by the three Asian battery powerhouses (China, South Korea and Japan), but China's leading role in the "underneath" components is more obvious than EV battery supply." Natixis says.
HONG KONG -- Northern Hong Kong will be built into a 300-square-kilometre metropolis positioned as an international innovation and technology (I&T) hub. The Northern Metropolis will involve development of the San Tin Technopole.
SINGAPORE -- Thailand's prolonged battle with COVID-19 will cause permanent losses for the economy, putting strain on banks, says ratings agency Standard and Poors. But policy flexibility and fiscal support is helping mitigate the fallout.
TAIPEI - ANZ Bank has revised upwards its GDP growth forecasts for Taiwan to 6.0% in 2021 and 3.8% in 2022, thanks to strong investment (27.97% y/y) during the third quarter.
NEW DELHI -- Following an interim agreement which will be signed prior to Christmas 2021, India and Australia will sign a Comprehensive Economic Cooperation Agreement (CECA) by the end of 2022. Covering trade in goods and services, the comprehensive agreement will also include a pact on investments.
HONG KONG - Going beyond 2021, there are three main factors challenging the strength of the Hong Kong economy, says the global financial group Natixis, which expects a steep fall in Hong Kong's GDP in 2022.
HANOI - Vietnam's Prime Minister, Pham Minh Chinh, has signed off amendments to the Investment Law which provide Special Investment Incentives for a number of new and expanded projects. These include innovation centres and research and development (R&D) centres with total investment capital of VND 3,000 billion (US$130 billion)1 or more, of which at least VND 1,000 billion (US$43 billion) is disbursed within three years from the date of the investment registration certificate (IRC) or approval of investment policy.
SEOUL -- South Korea's recovery slowed in the third quarter after an impressive surge in Q2. Sequentially, headline GDP growth came in at 0.3% q/q,translating into an annual rise of 4%. In a briefing note, ANZ Bank says the slowdown arose mainly from a quarterly dip in private consumption and investment. Exports, meanwhile, strengthened, allaying some concerns over supply side shortages in key industries such as electronics and autos.
TAIPEI -- President Tsai Ing-wen has reaffirmed the Government's commitment to developing Taiwan's semiconductor industry as it builds the country into an advanced manufacturing hub -- while safeguarding its position in global supply chains.
BEIJING - The Chinese Government has released a draft of far-reaching changes to Antimonopoly Law, signalling tougher enforcement. In Client Alert, lawyers Baker McKenzie say the proposed reforms follow earlier draft changes published in January 2020.
HONG KONG -- China's GDP grew a weaker-than-expected 4.9% y/y in Q3, a figure which is not consistent with the economy's sequential growth and the dip in the jobless rate during the quarter, according to ANZ Bank.
HONG KONG - China's Q3 GDP figures together with September real economic indicators have further confirmed a continuing moderation of year-on-year growth momentum, and Chinese authorities will need to strike a balance between stimulating growth and pressing ahead with structural reforms, says BBVA Bank.
MELBOURNE -- S&P Global Ratings believes the troubles of Evergrande hint at credit strains simmering among Chinese corporates, and a strong resolve by the Government to tackle this issue. S&P says a survey involving 25,000-plus global entities reveals that the leverage levels of China's corporate sector are significantly above the global average. "It is a US$27 trillion problem that is increasingly getting the attention of Beijing," says S&P.
LONDON -- The 24th annual trade talks between Taiwan and the U.K. were held this week via videoconference. The U.K. is Taiwan's third largest trading partner in Europe, and a leading source of foreign investment, which stood at an accumulated US$10.7 billion as of August 31.
HONG KONG - ANZ Bank is forecasting China's Producer Price Index (PPI), the average increase in selling prices received by Chinese domestic producers of goods and services, to peak at a level of 12% in the fourth quarter of 2021, lifting China's annual PPI for 2021 to 7.5%. Prices are being driven by higher energy prices.
HO CHI MINH CITY -- Tough restrictions to curb COVID-19 infections in Vietnam resulted in Q3 GDP growth contracting sharply by 6.17% y/y, affecting all aspects of the economy.
As a result, ANZ Bank has revised downwards its ful- year 2021 GDP growth forecast to 1.4%, from 3.6% previously.