Ebbing geopolitical risks stoke bullish views on Chinese stocks

Investment strategy: Geopolitical risks in abeyance

David Woo writes that perceptions of lower geopolitical risk in the coming weeks support a positive outlook on the Chinese stock market, which has outperformed others recently. Despite poor trade data, China is likely to implement reforms and deregulations due to waning global market share.

China: If you build it, will they come?

David Goldman highlights a positive outlook on Chinese equities, particularly in the tech sector. He notes that economic challenges have prompted the Chinese government to adopt market-friendly measures, aiming to boost market multiples.

Ukrainian counteroffensive stalls as Russia advances

James Davis assesses that Ukraine’s offensive military progress has thus far been limited, with only a 5-kilometer advance over two months. A recent counteroffensive by Russia pushed Ukrainian troops back, raising questions about Moscow’s strategic choices moving forward.

TSMC committed to Taiwan

Scott Foster sees Taiwan Semiconductor Manufacturing Company (TSMC) reassuring its commitment to Taiwan amidst concerns of expansion in other countries. Meanwhile, Intel has established an innovation center in Shenzhen to engage with local companies and promote its technology.

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In pictures: Singapore’s National Day parade 2023 at the Padang

SINGAPORE: There were thrills aplenty at Singapore’s National Day Parade to mark its 58th year of independence. Crowds were entertained by the Republic of Singapore Air Force fighter jets pulling off awe-inducing manoeuvres as part of an enhanced aerial display to mark its 55th anniversary. 

The Red Lions, the Singapore Armed Forces’ parachutist team, pulled off their jump from 10,000 feet above with panache, and the Padang was bathed in neon colours for the show segment directed by filmmaker Royston Tan.

Take a visual tour of NDP 2023’s standout moments through the perspectives of CNA’s visual journalists Gaya Chandramohan, Hanidah Amin, Raydza Rahman and Syamil Sapari.

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Indonesia’s capital named world’s most polluted city

Jakarta residents have long complained of toxic air from chronic traffic, industrial smoke and coal-fired power plants. Some of them launched and won a civil lawsuit in 2021 demanding the government take action to control air pollution. The court at the time ruled President Joko Widodo must establish national airContinue Reading

Why is China experiencing its worst flooding in 60 years?

BEIJING: A Chinese river basin where 110 million people live has been hit by the worst floods since 1963 despite massive mitigation efforts, particularly during the rule of Mao Zedong, overwhelmed by the impact of global warming and outdated infrastructure. Typhoon Doksuri, the most powerful storm in China this year,Continue Reading

Inspired, nostalgic, sense of sadness: Halimah’s range of emotions at her last NDP as President

She also said it was wonderful that people with disabilities were included in the celebrations.

“We show Singapore and the world that people with disabilities are actually people with different abilities, they have the talents, and we give them the chance to show those talents,” she said, adding that the work produced by people with disabilities “never fails to fascinate” her.

“As a country, on the most important day that we celebrate our nationhood, we integrate our people with disabilities,” Mdm Halimah said.

“We bring them to the fore, because Singaporeans, we’re all in this together, not those who can run the fastest. But everyone must work together as a team.”

In response to a question about whether she has felt lonely, sitting in the president’s seat during each National Day Parade, Mdm Halimah said she never felt alone. 

“I never felt that I’m looking at the parade alone,” she said, adding that there is a sense of togetherness.

“There are times when we go through hardships, we all have to limit, constrain ourselves. But there are times when we have to celebrate and we celebrate together.”

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Singapore shines its light on the future with NDP 2023

The show soon began with students from Bedok View Secondary School, Deyi Secondary School, East Spring Secondary School and Victoria Junior College in vibrant costumes dancing to this year’s theme song, Shine Your Light, and easing the crowd into the programme. 

This year, a total of 2,400 performers and 43 artistes were involved, with students and community groups converging from various schools, ministries and organisations to make NDP happen.

Another 400 students from tertiary institutions contributed as audience motivators, make-up artists and content creators, and they could be seen dotted throughout the stands, dancing to songs tirelessly throughout. 

Speaker of Parliament Seah Kian Peng and Members of Parliament were welcomed to the NDP and made their way onto the stands from the National Gallery. 

Shortly after 6pm, a crowd favourite, the military free fall segment was conducted by the Red Lions, with eight descending from a transport aircraft in aerial formation and taking minutes to reach the ground. The crowd waited with bated breath, last year’s mishap involving a Red Lion in an awry landing on everyone’s minds. 

Each Red Lion landed, within seconds of the other, smoothly and to ecstatic cheers and applause from the crowd. 

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Partition-based ceasefire won’t work in Ukraine

Even as Ukraine’s counteroffensive pushes slowly forward, some observers are calling for the warring sides to negotiate a ceasefire. This would create a de facto demarcation line separating areas held by Ukrainian forces from those under Russian control at the moment the fighting stops.

Others argue, however, that a ceasefire is unlikely to lead to a durable settlement. For Ukraine, a truce would mean giving its adversary time to regain strength for renewed aggression, while abandoning its citizens to the horrors of occupation in Russian-controlled areas.

Establishing a provisional line of separation would break up long-established administrative and economic structures. This would indefinitely prevent the divided regions from rebuilding and restoring their inhabitants’ security and welfare.

To understand this, let’s look back at how Soviet leaders drew the border between Russia and Ukraine. It was this border that Ukraine inherited in 1991 after the dissolution of the Soviet Union.

And it was this border that Russian President Vladimir Putin denounced on the eve of Russia’s full-scale invasion of Ukraine in 2022, declaring that modern Ukraine was a historical mistake arising from early Soviet border-making policy.

Map 1. Ukraine in 1991:

Map: Rainer Lesniewski / Alamy Stock Vector via The Conversation

As research has shown, Russian and Ukrainian communists who in 1919 mapped out the border between Ukraine and Russia took as their starting point the former Russian empire’s provincial boundaries.

These had evolved haphazardly over centuries and reflected neither the geographical distribution of Ukrainian and Russian speakers nor economic considerations, such as transport links, the location of industries or flows of goods to markets.

Over the next decade, Moscow repeatedly moved the border with the aim of shaping a Ukrainian Soviet Republic that, while retaining a majority Ukrainian-speaking population, could also build a strong and sustainable economy. This meant drawing borders to facilitate rational planning and the integrated development of industry and agriculture.

In some cases, the Soviet authorities involved local officials and residents in border-making. Regional interests, however, were always subordinated to the needs of the Soviet economy and the imperative of maintaining central political control.

Map 2: Ukrainian borders between 1917 and 1938

The districts of Shakhty and Taganrog are shaded dark green. Putivl’ district is shaded yellow. Content: Stephan Rindlisbacher. Cartography: S. Dutzman, Leipzig, 2021, Author provided (no reuse)

For example, the districts of Shakhty and Taganrog were initially incorporated in the Ukrainian Soviet Republic as they had a majority of Ukrainian speakers. In 1924, however, they were transferred to the Russian Soviet Federative Republic (RSFSR) for economic reasons.

By contrast, Putivl’ district had been allocated in 1919 to the RSFSR, as most of its population was Russian-speaking. Despite this, in 1926 the district was integrated into Soviet Ukraine after Ukrainian officials and local residents made the case that its markets and transport links were within that republic.

In 1954 Soviet leader Nikita Khrushchev transferred the Crimean peninsula to Ukraine. However, this was not a “gift”, as commonly reported, and even less an “exceptionally remarkable act of fraternal aid” on the part of the Russian people, arising from its “generosity” and its “unlimited trust and love” of Ukrainians, as Soviet politicians at the time declared.

Rather, as recent analysis shows, it was a strategic decision with multiple motives. Khrushchev aimed to reinforce central Soviet control over Ukraine by incorporating Crimea’s large ethnic Russian population, after a decade of Ukrainian nationalist insurgency in the newly annexed western regions.

At the same time, Khrushchev hoped the transfer would win him the support of Ukrainian communist elites, bolstering his bid for supreme power in the factional struggle that erupted after Stalin’s death in 1953.

Construction of a vast irrigation system unifying Crimea and southern Ukraine was already underway, to be fed with water from the Kakhovka reservoir on the Dnipro River via the North Crimean canal. For the purposes of planning and carrying out this mega-project, only completed in the mid-1970s, the transfer of Crimea to Ukraine also made economic sense.

Border-making across the Soviet Union attempted similarly to balance many different, often competing, criteria. Where these borders were drawn to a large extent determined the subsequent course of Soviet history and, since 1991, has shaped the internal development and external relations of states and societies across post-Soviet space.

Invasion and annexation

In February 2022, Russia launched its full-scale invasion of Ukraine, seeking to revise the post-1991 border settlement. By that summer its army had occupied large parts of the four eastern Ukrainian regions of Donetsk, Luhansk, Kherson and Zaporizhzhia.

In September, on the Kremlin’s orders, Russian-installed leaders of these regions organized a series of plebiscites. These asked residents in occupied areas if they wished their region to become part of the Russian Federation.

Voting took place watched by armed soldiers and counting was unmonitored. The polls – denounced by UN officials as “illegal” – unsurprisingly yielded vast majorities in favor of joining Russia.

Russian soldiers stand guard at the Kakhovka power plant near Kherson. Photo: Twitter / EPA

On September 30, 2022, Putin declared Russia’s annexation of these regions. Four days later the Russian state Duma ratified this.

However, even at the moment of annexation large parts of these territories remained under Ukrainian control or were threatened with imminent recapture. In November, the Ukrainian army liberated the city of Kherson.

Its 2023 counteroffensive is now slowly but steadily taking back land in several areas of the annexed regions.

New state borders?

Where, then, does Russia intend to draw its new state borders? In September 2022, Putin’s spokesman Dmitry Peskov refused to give any answer to this.

He reiterated only that Russia had recognized the independence of the Luhansk and Donetsk People’s Republics within the Ukrainian regional borders that had existed before the declaration of these Russian proxy administrations in 2014.

This implied that Russia envisaged incorporating these regions in their entirety. He said nothing about Kherson and Zaporizhzhia.

A ceasefire along a Korea-style demarcation line would fracture the unified territory that Ukraine inherited in 1991. Over and above the political, strategic, legal and moral objections to an armistice that entrenches territorial partition, this outcome would cause intractable economic problems.

Whether a truce held for a few months or many years, it would continue to prevent external investment in the divided regions, draining state resources and preventing vital reconstruction.

A stopgap solution without a permanent settlement – a peace treaty – will only create conditions for further suffering and future conflict.

Nick Baron is Associate Professor in History, University of Nottingham and Stephan Rindlisbacher is Academic Research Fellow at the Center for Interdisciplinary Polish Studies, European University Viadrina

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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