No Signboard plans to resume stock trading on SGX by ‘next 7 days’, but investors remain worried

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The financial investor also emailed No Signboard’s representatives for information on the bank’s debt, the standing of its court cases, and whether it intends to file a rights lawsuit.

When a business grants existing owners the opportunity to purchase more shares of the business, it becomes a right issue.

” You need money ( for your ) big plans… but we do n’t know what’s your plan to fund your acquisitions”, said the retail investor.

” Since Offering, I have been holding on to the communicate. Post ( share ) consolidation, everything is peanuts already. I may say current owners have lost anything. How can you assure me that if there is a right matter, I can give you more money when I leave?”

No Signage declined to confirm whether the work has a right matter. But Mr Lim, who is also a producer of white warrior Gazelle Ventures, appealed to owners to “have some trust”.

” What we’ve done is we took a leap of faith. We’ve put a lot of money into this business, and we’re now in the same place as you,” the interval CEO said.

” We also want to see our money increase, from an individual’s point of view. So please have some confidence – hopefully, you can trust us that we will endeavour ( for ) the money we put in, and your money that you’ve invested thus far, ( to ) recover value”.

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Another financial buyer expressed concern about No Signboard’s present “horrible situation” and what went wrong with it.

Mr. Lim responded that none of the company’s current representatives were in charge prior to the business suspension. &nbsp, Furthermore, he is unable to provide a clear solution but in his view, the firm was” never properly thought away, not effectively run and not properly funded” then.

The financial investment, who just wanted to be known as Mr. Ho, told CNA that many investors may be interested in finding out how things turned out. No Signboard is a family name brand whose roots can be traced to the 1970s&nbsp, when it first started as a hawker kiosk at Mattar Road.

He continued, adding that Jumbo Group, another Singaporean restaurant chain, had performed also after going public in 2015.

” I think many people thought ( this will ) be the same”, said Mr Ho, who is in his 50s.

For Mr Loke, who holds about S$ 3, 000 fair of No Signboard stock, said he has questions about the company’s future programs which seem focused on acquiring more F&amp, B companies.

Given the F&amp, B industry’s substantial operating costs, particularly for brick- and- concrete ones, these new acquisitions may get a long time to breakeven, he reasoned.

Besides, the six- month embargo for the white warrior trader is very small.

” How can you discover a treatment in six months? What if that buyer even leaves, and you are up to circle one”? said Mr Loke, adding that it would have been more convincing if the business had more “reputable” shareholders on board.

Mr Loke said this reminded him of his other failed purchase, albeit a smaller amount, into today- former water treatment firm Hyflux.

” From what I’ve heard, I’m not going to invest any more money right now ( if there are rights issues ).” But I ca n’t sell because that will be as good as gone”, said the retail investor. ” I will just wait and see”.

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Opposition submits general debate motion

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Three- time session billed as second official evaluation of coalition’s poor performance

PUBLISHED: 13 Mar 2024 at 17: 50

Opposition submits general debate motion
Chaithawat Tulathon, head of the Move Forward Party, speaks at a media conference on Jan 31. On Wednesday, the opposition formally submitted a motion for a three-day public debate over what it termed the government’s bad performance. ( Photo: Nutthawat Wichieanbut )

The opposition claimed that this was the first time the coalition government’s work performance had been evaluated in a formal motion for a three-day public debate on Wednesday.

According to Chaithawat Tulathon, the Move Forward Party ( MFP ) leader, the Srettha Thavisin administration has not even begun to honor its commitment to implement the fundamental policies it announced in parliament over the course of six months.

The opposition leader presented the movement to parliament leader Wan Muhamad Noor Matha along with members of other opposition parties, including the Democrat, Thai Sang Thai, and Fair events.

Mr. Wan stated that the discussion would be scheduled for April 9 as the latest parliament session wraps up.

A general conversation, in which ministries ‘ performance can be voted on, gives opposition parties a chance to raise issues of public concern. However, it does not have the same impact as a reprimand debate, in which ministers can cast their own opinions.

Older Move Forward members have argued that a full-fledged censure debate is too early in the government’s mandate.

It is still unclear how the government will bring out its laws, which were intended to ease the public’s financial hardships, said Mr. Chaithawat, after more than six weeks since the Pheu Thai-led coalition’s election.

These guidelines include solving the loan difficulties of businesses and individuals, bringing along high energy costs, stimulating the economy, resolving differences of opinion over amending the constitution, and restoring public trust in the rule of law, said the opposition leader.

Worse still, he said without going into more detail, the alliance has been accused of blinding itself to abuses of power committed by specific state authorities for personal gain.

The current state is accused of allowing dual requirements in the country’s justice system, according to Mr. Chaithawat, instead of accelerating the promised work to restore public confidence in the rule of law.

” If left to continue this approach, the government’s lack of work effectiveness, skill, ethics and age would further hamper the social and economic treatment that people expected to see when they cast their ballot for parties in this coalition”, he said.

Mr Chaithawat likened the coming conversation to a marking of the president’s research.

He declined to provide specifics on the main subjects that would be covered in the discussion or to mention how Thaksin Shinawatra handled the pardon of former prime minister Thaksin Shinawatra.

And even though the 2024 governmental expenditure has still not been passed, he added, the administration’s job performance could still be assessed by various methods.

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Japan’s unions find surprising allies in push for higher pay, work with government, companies

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Tokyo: It surprised left officials who have long been associated with the criticism when Fumio Kishida hand-picked unionist-turned-opposition senator Wakako Yata as one of his particular experts next year. But, Yata’s session as the company’s head of labor and income highlighted growing cooperation between the government and organisations as policymakersContinue Reading

Cause to cheer, cause to jeer China stock bounce – Asia Times

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A debate between the bulls and bears is raging as a few measures for Chinese companies, which are off 20 % from their January lows.

The cows are betting that Beijing’s recovery efforts have been successful in bringing the market base and that there are numerous buying opportunities. The animals see more of a “dead kitty jump” after a US$ 7 trillion defeat and continued symptoms China’s economic holes are deepening.

Who’s straight? Whether President Xi Jinping and Premier Li Qiang take the lead in that regard depends on what they will do next.

To be sure, the rise in promote charges, including those for the Hang Seng Tech Index, suggests that investors have overcame the stress and are now digesting Beijing’s ostensible game plan.

That requires very targeted more than broad-based stimulus and a greater emphasis on longer-term reforms to strengthen China’s large economic game and strengthen the role of high-tech and other high-value-added sectors.

However, this preliminary rally also signifies that Xi and Li have a new relationship with international investors.

On the time: Li Qiang and Xi Jinping in a document image. Image: Twitter / Screengrab

Communist Party leaders must accelerate efforts to end the house crisis, maintain regional government finances, and enhance China’s funds markets to support the new buying.

This week’s National People’s Congress and” Two Sessions” conferences made for an uneasy split- display for Xi’s group.

Beijing took a huge leap forward with strategies to destroy “new successful forces” to build a more stable and successful business on one monitor.

On the other hand, there were messages that previous policy mistakes are catching up with the business, as seen in fierce efforts to stop China Vanke, a significant property developer, from going bust.

Techniques taken since January to comfort international investors appear to be gaining some traction. These include the People’s Bank of China’s use of precise cash to help the country’s frightened areas and the “national group” of state-run cash ‘ stock purchases.

” We see China’s stock turnover possible growing more, especially if stimulus policies out of the annual meeting of the National People’s Congress meet marketplace expectations”, says Jonathan Fortun, an analyst at the Institute of International Finance.

” We are beginning to see the pandemic go away from the Chinese equity market, with significant reforms in the real estate industry under way and significant state-led purchases,” he continued.

Zhu Liang, investment director of AllianceBernstein Fund Management, points out that mainland stocks, particularly A- shares, are highly attractive in terms of valuation.

It’s a bit of a change from January when Chinese stocks were among the worst-performing asset classes on the planet. Since then, changes to the banks ‘ reserve ratio requirements and other efforts to boost liquidity have slowly but surely retracted the attention of the world to China.

Xi, Li, and PBOC Governor Pan Gongsheng have yet to address the deflation narrative to the delight of many investors.

According to Citigroup economist Xinyu Ji, “further policy efforts are essential to foster and consolidate the price momentum.”

According to Morgan Stanley analysts, “markets are likely to remain volatile because the NPC fiscal package is insufficient to address the deflation concern and corporate earnings remain constrained.”

Hope can be sparked by reports that China Vanke, a country struggling for cash, is negotiating a debt swap with banks. The property industry is still very insolvent despite its stumble, which serves as a reminder of that. On Monday, Moody’s Investors Service cut China Vanke to a” junk” rating.

The most recent property developer is teetering toward default, China Vanke. Image: X Screengrab

” The rating actions reflect Moody’s expectation that China Vanke’s credit metrics, financial flexibility and liquidity buffer will weaken over the next 12 to 18 months”, says Kaven Tsang, an analyst at Moody’s.

That’s “because of its declining contracted sales and the growing uncertainty over its funding options in the face of the prolonged property market downturn in China.”

The onshore debt default watch involving Country Garden’s continues to generate unfavorable headlines. So there are doubts about China’s “around 5 %” economic growth target for this year without additional bazooka stimulus explosions.

Hitting the 5 % GDP goal will be” challenging”, says ING Bank economist Lynn Song, pointing to weak consumer confidence in Asia’s biggest economy. ” Trade is unlikely to be a major engine of growth as well, with global trade growth expected to remain below historical averages, especially given rising Sino-US trade protectionionism,” said one analyst.

Nomura Holdings ‘ economists concur that “achieving the’around 5 % ‘ growth target will be very challenging.”

They point out that China’s economy is still” still faltering,” as evidenced by the crackdown on local government debt in 12 high-risk provinces, the likely likely significant slowdown in investment in the new energy sector, and the lackluster data that has been made available for January and February.

The local government debt component of China’s economic puzzle is also undergoing growing and more stringent scrutiny. Banks are being advised by Xi’s regulators to halt their use of offshore bond-issuance services by local government financing vehicles ( LGFVs ).

The$ 9 trillion mountain of LGFV debts poses a significant challenge for Xi’s efforts to deleveraging the economy. A state-owned company selling bonds to pay LGFV debt was one recent transaction that raised questions. The issue is that these practices are more prevalent than many investors might think.

It’s “rare to explicitly issue debt just to repay debt of another entity,” says economist Victor Shih, director of the 21st Century&nbsp, China&nbsp, Center at the University of California- San Diego.” Insect subsidies of LGFVs are everywhere,” he says.

They must deal with an increasingly difficult balancing act as Xi and Li try to deleverage the economy. Beijing could face new pressure from the outside as the world’s headwinds increase in terms of fiscal and monetary stimulus.

” China’s economy is marred by insufficient domestic demand”, says Emily Jin, an analyst at advisory firm Datenna.

” For years, analysts have urged Beijing to boost consumption’s role in China’s economy, to little avail. The 5.2 % increase in consumer demand in 2023, largely attributable to a low base effect from pandemic consumption levels, may not hold up until 2024, according to Jin.

For now, China’s deflation trend is cheering many bond investors. In early March, yields on 30- year bonds hit a record low of 2.4 %.

Yet Beijing’s fiscal spending plans– and its debt issuance plans – mean Xi and Li must tread carefully. China, for example, plans to sell a record 1 trillion yuan ($ 139 billion ) of ultra- long- term bonds. That’s more than two times the average issuance between 2019 and 2023.

According to Goldman Sachs analyst Xinquan Chen,” the risk of a correction at the long end is high.”

According to economists, the recent spike in gold prices may be just as related to worries about Chinese deflation as US inflation.

” Gold is now the most overbought since March 8, 2022, where it peaked and declined from$ 2, 050 to$ 1, 650″, write Bank of America strategists in a recent note. Although we do n’t demand that, it is reasonable to anticipate that price momentum to wane and/or decline in the face of stretched daily relative-strength index conditions.

China’s stock market could be hampered by rising trade tensions ahead of the US election on November 5. According to Stephen Innes, a strategist at SPI Asset Management, the recent decline in Apple Inc.’s stock as iPhone sales in China decline are a” stark reminder of the ongoing trade tensions between the United States and China.”

The most crucial missing element is a bold and specific strategy to solve the property crisis, which investors are currently looking at. It’s vital, analysts say, that Beijing devises a mechanism to get bad assets off property developers ‘ balance sheets.

Whether China cribs from Japan’s 1990s bad- loan mess or America’s 1980s savings and loan debacle matters less than authorities acting urgently and assertively.

In the short run, China’s housing minister, Ni Hong, says regulators intend to support “reasonable” financing needs of real estate developers. A so-called “whitelist mechanism” is a part of the plan to keep liquidity flowing to the property sector, which can account for about a quarter of GDP.

China has n’t intervened in the property market as aggressively as many anticipated. Image: Twitter

Last month, China Construction Bank, one of the nation’s biggest state- owned commercial institutions, said it had handled more than 2, 000 such projects, approving nearly$ 2.8 billion of pending disbursements.

However, much more incisive action may be required to keep the China stock bulls moving and give them the confidence to put their bets up. A definitive end to the crisis may be required.

That’s not to say Team Xi’s splashy pivot toward greater innovation and productivity is n’t a “buy” signal. China needs more productivity gains to achieve decent economic growth in the future, according to analyst Tilly Zhang of Gavekal Dragonomics, who is a member of Gavekal Dragonomics.

Yet, the move upmarket is very much still a work in progress. According to Zichun Huang, an economist at Capital Economics,” the NPC Work Report last week commits to keeping “money supply and credit growth in step with the real GDP and inflation targets.” This may indicate that policymakers will try a little harder to push inflation higher than the 3 % target than the previous year.

But, Huang notes,” we think China’s low inflation is a symptom of its growth model built on a high rate of investment. We anticipate that inflation will remain low in the long run because reducing dependence on investment is still far off.

The good news, though, is that efforts to raise China’s economic game are beginning to pay some dividends.

” China’s economy is weak but it’s not that weak”, economist Shaun Rein at the China Market Research Group, told CNBC.

” If you’re a multinational, if you’re looking to drive growth over the next three to five years, the next China is China. It’s not India — India’s only a sixth of the GDP of China— it’s not Vietnam. These are small markets. So I actually think investors should be looking long- term at China again, it’s definitely investible”, he said.

” It’s too early to call a bull market, you still have to be very cautious, the economy is still weak – do n’t get me wrong — again the D word – deflation – looms over China, there is still a weak job market, but the valuations are too low”, Rein said.

Follow William Pesek on X, formerly Twitter, at @WilliamPesek

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WWI lessons Ukraine needs to heed to win the war – Asia Times

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As Russia’s invasion of Ukraine enters its third year, the war’s tactics increasingly seem to match scenes from the First World War: soldiers huddle in trenches along stagnant front lines and navigate intense barrages.

Beyond trench warfare, however, the Ukraine conflict resembles the strategic, operational and tactical situation faced by Allied commanders immediately prior to the 100 Days Offensive, and its lessons remain applicable to contemporary wartime political and military leaders.

The successes produced by the 100 Days Offensive that began in the late summer of 1918 were primarily influenced by the Allies’ reliance on a strategy of maximum effort, flexible campaigns and advances in tactics.

The 100 Days Offensive

Having suffered significant losses in the preceding months, and facing the possibility of growing German strength following the defeat of Russia, Allied leaders prioritized launching a decisive offensive before their own exhaustion forced them to settle for peace.

These strategic considerations led Allied commanders to shift the balance of their forces to seize opportunities along the front. Beginning with a surprise attack on Amiens, the Allies often rapidly shifted the center of their offensive efforts. These moves forced the German High Command to commit additional resources along the front, weakening its defenses.

While the Allies’ hurried tempo led to higher casualties, maintaining momentum was critical to eventually piercing the Hindenburg Line, the Germans’ most significant prepared defensive position.

Allied tactics forced combat into the open. While aircraft had been introduced prior to 1918, the Allies were able to rely on near-total control of the air. This allowed Allied forces to more effectively target their artillery fire and rely on better reconnaissance.

Moreover, the Allies were also able to introduce significant numbers of tanks to the battlefield. This development allowed Allied forces to gain localized fire support at key stages of the offensive and contributed to their string of victories.

Wartime challenges

The legacy of the 100 Days Offensive offers several strategic, operational and tactical lessons that remain highly applicable to the Ukrainian War. These include the importance of political timelines, the role of mobility in combat and the necessity of air power and infantry innovation.

Having dedicated a significant portion of its economy to war production, Russia will become more capable of replacing its wartime losses. This shift has occurred just as the United States and Europe have struggled to fulfill orders for ammunition and other equipment for Ukraine due to domestic political complications.

Moreover, Ukraine faces growing debt due to the war and lacks large numbers of available service personnel, mirroring the state of the Anglo and French militaries in 1918 and raising doubts as to how long Ukraine can continue to engage in high-intensity combat.

Russia’s strength has also been bolstered by its capacity to enact further rounds of conscription and ongoing public support for the war. In contrast, conscription remains a highly contentious topic in Ukraine, which may harm its future readiness.

Lessons for Ukraine

However, the Allies’ experience in 1918 is instructive. Even a weakened Anglo-Franco-American coalition remained capable of winning dramatic victories over a powerful adversary, so long as its political leaders remained fully committed to the war.

The operational challenges facing Ukraine and Russia are also akin to those faced by the Allies during the war. Russian forces have constructed miles of prepared defenses on its occupied territories, much of which Ukraine has yet to overcome.

These defenses have contributed to the static position of both militaries and will likely force Ukraine or Russia to shift their forces along the front in bids to make a breakthrough.

While Russia has continued to send waves of unprepared units into intense combat, Kiev must be careful to conserve its combat power for future offensives.

Further, Ukraine should also maintain its commitment to misdirection, as it did earlier in the war by reportedly focusing on Kherson before attacking Kharkiv, to prevent Russian forces from consolidating their lines. This tactic would follow the Allies’ attempt to spread German forces thin and prevent their reinforcement of the Hindenburg line.

Lastly, the role of air power and innovative infantry tactics remain as critical to contemporary offensives as they were during 1918. Though neither Ukraine nor Russia has been able to establish complete control over the air, Ukraine’s use of drones has allowed its forces to direct pinpoint artillery fire against Russian positions.

Additionally, the relative independence of the American Expeditionary Forces and the Canadian Corps allowed new tactics to be tested in combat, bolstering their contribution to the offensive. This model will continue to be beneficial to Ukraine’s push to allow more junior officers to act on their own during combat.

Over the course of the 100 Days Offensive, the Allies managed to overcome three years of unrelenting trench warfare, along with a prolonged last-ditch German offensive, before bringing the war to an end. This series of events was precipitated by a growing strategic emphasis on waging a decisive campaign, adopting new operational doctrines, and relying on new tactical approaches, all of which remain applicable to the current war.

However, perhaps the lasting lesson of the 100 Days Offensive is that the campaign led to victory despite its failure to fully eject German forces from France. Looking toward the third year of the war in Ukraine, it is important to recognize that victory wears many disguises beyond golden laurels.

John Long Burnham is a policy research assistant at the China Institute of the University of Alberta.

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

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Once India’s most valuable start-up, Byju is now fighting to survive

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Byju Raveendran, co-founder and chief executive officer of Byju's PTE Ltd., during a panel session on day two of the Qatar Economic Forum (QEF) in Doha, Qatar, on Wednesday, May 24, 2023.Getty Images
By Meryl Sebastian
BBC News, Kochi

In 2018, Byju Raveendran was the toast of India’s start-up world as his eponymous edtech company, Byju’s, was crowned a unicorn.

Through the pandemic, as schools shut, Byju’s kept growing and expanding – until it all started to unravel.

Once India’s leading privately-held company valued at $22bn (£17.38bn), it is now regarded by some as a cautionary tale for domestic start-ups, as investment company BlackRock recently slashed its valuation to $1bn.

On 23 February, a majority of shareholders in Byju’s parent company Think & Learn (T&L) voted to remove Mr Raveendran as CEO during an extraordinary general meeting (EGM), citing allegations of “mismanagement and failures.”

Mr Raveendran and his family deny the allegations, disputing the vote’s validity and claiming it violated internal company laws requiring at least one founder-director present at the EGM. In a letter to employees the next day, Mr Raveendran called the meeting a “farce” and challenged it in court.

The Karnataka High Court has temporarily halted the implementation of the resolutions passed in the EGM as it hears the case.

The events were the latest in a growing mountain of legal and financial crises the edtech firm has been battling in recent years.

In the past year alone, Byju’s has faced mounting debt, unhappy investors, lawsuits by lenders, an investigation by India’s financial crimes agency, layoffs of thousands of employees, delayed salaries and a liquidity crisis.

Signage at a Byju's Tuition Center, operated by Think & Learn Pvt., in Mumbai, India, on Friday, Feb. 2, 2024

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In January, after several missed deadlines, T&L had reported a consolidated loss of 82.3bn rupees ($1bn, 792.3m) for 2022. The company is yet to present its audited financials for 2023, missing the December deadline it had set last year.

Byju’s has also been accused by customers of pressure selling – allegedly coercing parents into buying courses they couldn’t afford. Social media is flooded with complaints accusing the company of jeopardising the savings of vulnerable people. In 2021, the firm dismissed these allegations as “baseless and motivated.”

This month, Byju’s told its employees their salaries would be delayed as it could not access funds raised during a rights issue. A month ago, the company said it had struggled to pay salaries due to lack of money.

Byju’s, established in 2011 as an online tutoring firm, initially focused on classes for schoolchildren and competitive exam preparation in India. The firm later expanded to introduce learning apps in various Indian languages. A significant portion of Byju’s revenue came from the sale of hardware such as tablets, SD cards, and laptops hosting its educational content.

In 2021, the company spent billions to expand globally, acquiring other edtech start-ups and firms such as Aakash, Toppr, Epic, and Great Learning.

The current standoff between Byju’s and its investors stems from the company’s efforts to address a cash crunch by proposing a rights issue, seeking to raise up to $200m – an invitation to existing shareholders to purchase additional new shares in the company.

Ahead of the EGM, Mr Raveendran said the issue was fully subscribed and the company would appoint a third party agency to monitor how these funds are used.

But the company’s valuation has declined sharply. This means investors who did not participate in the right issue may see their stake in the company significantly diluted.

“No investor likes this,” says K Ganesh, an angel investor who founded one of India’s largest online grocers, BigBasket.

“If you don’t put money, you’re gone. But if you do put, it’s good money over bad money. There is no winner here.”

Four Byju’s investors filed a petition with the National Company Law Tribunal (NCLT), a quasi-judicial authority overseeing corporate disputes, seeking to block the rights issue.

The tribunal instructed Byju’s to keep the proceeds from the rights issue in a separate account until the resolution of the investors’ petition. Investors have petitioned the Supreme Court, seeking a hearing in the event of Byju’s challenging the tribunal’s decision.

The BYJU'S learning app, developed by Think and Learn Pvt., is displayed on a tablet at the company's headquarters in Bengaluru, India, on Wednesday, April 5, 2017.

Getty Images

Meanwhile, in a Florida court, lenders accused the company of siphoning $533m into an obscure hedge fund in the US.

But the firm denied the allegation, saying “an offshore subsidiary remains the beneficiary of the money” which it has invested in “high security fixed income instruments” with a multi-hundred billion dollar fund in the US.

Camshaft, a wealth manager who had managed the funds, told the court that the money was transferred to a 100% subsidiary of Byju’s. In a statement, Byju’s said this was consistent with its position that “group entities remained the beneficiary holders of the money”.

A lead sponsor of the Indian cricket team till 2023, Byju’s is in arbitration with the Board of Control for Cricket in India (BCCI) after being sued for allegedly failing to fulfil its sponsorship obligations and not paying dues of 1.58bn rupees.

On 22 February, India’s financial crimes agency, the Enforcement Directorate, issued a look-out notice against Mr Raveendran in connection with alleged foreign exchange violations involving 93bn rupees.

In a statement to the BBC, Byju’s said the ED had concluded its investigation. “Byju’s maintains and will continue to maintain complete adherence to all relevant FEMA (Foreign Exchange Management Act) regulations,” the firm said.

Local reports say Mr Raveendran is currently in Dubai and has been shuttling between Delhi and Dubai for the last three years. Byju’s did not comment on Mr Raveendran’s whereabouts.

In this photo taken on January 10, 2019, employees of education technology start-up BYJU's work on content development for the app at their office in Bangalore

Getty Images

The company’s biggest challenge would be to shore up funds, says Shriram Subramanian, who heads an independent corporate governance research and advisory firm.

Last year, three of its board members – V Ravishankar of Sequoia Capital (now Peak XV Partners), Vivian Wu of Chan Zuckerberg Initiative, and Russell Dreisenstock of Prosus – resigned, leaving just Mr Raveendran, his wife Divya Gokulnath and brother Riju Raveendran on the board.

Mr Subramanian says sometimes it’s a good thing for companies to “fail and fail fast”.

Instead of chasing valuation, companies should put in place robust business practices and “play the long game”, he says. “Raising money and going for valuation every few days is all humbug.”

Others, however, feel that the company’s problems should not be seen only through the lens of profit and loss.

Public discussion on the Byju’s “continues to be in the languages of good and bad corporate management,” Sanjay Srivastava, a professor at SOAS University’s department of anthropology and sociology, wrote in the Indian Express newspaper.

Srivastava describes this as a “fast-food model of education” which has “been converted to a machine for profit-making without much proof that it produces any public good”.

Irrespective of the outcome, the crisis is unlikely to affect Mr Raveendran himself, experts say.

Mr Ganesh says that while a comeback for the CEO would be “a daunting task”, Mr Raveendran is still “a terrific entrepreneur” who built a large business and raised huge amounts of money.

Besides, a “reasonable, stable outcome” for the company is also important for India’s start-up ecosystem, he adds.

“This is India’s largest start-up and the world is watching.”

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Two Sessions: China touts openness while tightening control

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Chinese President Xi Jinping (L) speaks to Premier Li Qiang at the opening of the NPC, or National People's Congress, at the Great Hall of the People on March 5, 2024 in Beijing, ChinaGetty Images
By Tessa Wong
Asia Digital Reporter

The National People’s Congress is usually capped off by the premier’s press conference. But this year, and for the rest of the term, the tradition has been mysteriously nixed.

Officials have said there was no need for it given there were other opportunities for journalists to ask questions. But many observers saw it as another sign of consolidation and control, in what became a running theme for the congress, even as top officials preached openness.

The cancellation of the press conference also effectively diminishes Premier Li Qiang’s profile. Though the event was scripted, it was a rare chance for foreign journalists to ask questions and gave the country’s second-in-command some room to flex his muscles.

In years past, it even yielded some unexpected moments. In 2020 then-premier Li Keqiang disclosed figures that stoked debate over a government claim that they had eradicated poverty.

The dimming of the spotlight on the premier, along with a shorter congress this year, are all signs of ongoing structural change within the Chinese Communist Party (CCP) where President Xi Jinping is increasingly accumulating power at the expense of other individuals and institutions, noted Alfred Wu, an associate professor at the National University of Singapore who studies Chinese governance.

But to the outside world, the party is keen on projecting a different kind of image as it battles dwindling foreign investor confidence and a general malaise in its economy.

Addressing international journalists last week, foreign minister Wang Yi insisted China was still an attractive place to invest in and do business.

“China remains strong as an engine for growth. The ‘next China’ is still China,” he said, before citing ways in which “China is opening its door wider”.

This year’s economic blueprint, delivered by Mr Li at the start of the session, laid out plans to open up more areas to foreign investment and reducing market access restrictions in sectors such as manufacturing and services.

These moves come after foreign investors were spooked by recent anti-espionage and data protection laws, as well as several sudden high-profile detentions of Chinese and foreign businessmen. Foreign direct investment in China recently fell to a 30-year low.

“There are fewer political checks and balances, there is no transparency. This is the bigger concern for investors… you cannot predict what’s going to happen, so you avoid the risk,” said Dr Wu.

Chinese Foreign Minister Wang Yi speaks during a press conference for domestic and foreign journalists as part of the National People's Congress and Two Sessions on March 7, 2024 in Beijing.

Getty Images

But last week Mr Wang dismissed such concerns. “Spreading pessimistic views on China will end up harming oneself. Misjudging China will result in missed opportunities,” he said, as he focused on talking up China’s prospects.

Both Mr Wang and Mr Li repeatedly used buzzwords like “high quality development” and “new productive forces” to signal a new stage in China’s development, though neither fully explained what they meant. China is aiming to hit an ambitious goal of around 5% GDP growth this year.

“Beijing is changing how it opens to the world,” said Neil Thomas, a fellow in Chinese politics at the Asia Society Policy Institute.

He said it is now focused on attracting high-end foreign technology and advanced manufacturing operations to help Chinese companies in key future industries.

“Foreign investment and trade are less important for China’s economy than they once were, but Beijing still wants to avoid a rush to the exits that could further shake its growth prospects.”

An employee works at a permanent magnet motor workshop of Shengli Oilfield Shuntian Energy Saving Technology Co., Ltd. on March 6, 2024 in Dongying, Shandong Province of China.

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At the same time, officials were keen to emphasise the government’s ultimate goal.

“Stability is of overall importance, as it is the basis for everything we do,” said Mr Li. Elsewhere in his report, he made it clear that while China pursues growth, it would also prioritise greater national security.

Some may question how successfully China can achieve a thriving open economy while increasing control.

But “from Beijing’s perspective, there is no contradiction between high-quality development, especially with foreign investment, and greater security needs,” said Jacob Gunter, lead analyst with Merics specialising in China’s economy.

For instance, when it comes to critical technologies where Chinese firms have yet to catch up, it would want to ensure as much of it as possible is produced within its borders, pointed out Mr Gunter. This reduces the risk of rivals – such as the US and its allies – stealing the technology or blocking their exports to China.

Beijing also signalled it would continue to clamp down on problematic areas in its economy, such as the floundering real estate sector and ballooning local government debts.

Mr Li promised more measures to defuse financial risks and improve supervision, and pledged to crack down on illegal financial activities.

While these problems have existed for several years, “the debt levels and size of the property bubble have gotten big enough that they have to solve it now and can’t back off”, said Mr Gunter.

“The economy is performing really poorly right now. The fact that they haven’t gone back to kicking this can down the road signals this is a longer term priority and not something they will back off on.”

As China’s annual parliamentary sitting comes to a close after a hectic week of meetings, a glaring void looms on Monday’s final agenda.

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Commentary: Why are more people in Singapore going bankrupt?

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IS THE BANKRUPTCY THRESHOLD TOO LOW?

Given this context, it is imperative to consider how Singapore’s bankruptcy framework can continue to serve these objectives in the post-COVID-19 economy.

Under the Insolvency, Restructuring and Dissolution Act 2018, a bankruptcy application can be made against a debtor if he or she cannot repay debts of S$15,000 (US$11,260). The law also allows debtors up to 21 days to pay up on a statutory demand before bankruptcy proceedings may be commenced against them by creditors.

A crucial part of this framework is the opportunity for debtors to avoid bankruptcy by entering into a debt repayment scheme, which allows them to pay their creditors back over a maximum of five years. However, there are specific criteria for eligibility: Debtors must not hold more than S$150,000 in unsecured debt, and they cannot be sole proprietors or partners in a firm.

During the temporary COVID-19 support measures from April to October 2020, adjustments were made to these thresholds. The minimum debt level required for a bankruptcy application was temporarily raised from S$15,000 to S$60,000. Simultaneously, the eligibility threshold for the debt repayment scheme saw an increase from S$150,000 to S$250,000.

These adjustments provided a buffer during the challenging economic times brought about by the pandemic.

As we analyse the current surge in bankruptcy applications in 2023, the question arises: Should the bankruptcy threshold be re-evaluated in light of the longer-term impact on the Singapore economy following the pandemic?

Singapore had 9,669 undischarged bankrupts as of end-January 2024. Being declared bankrupt has various repercussions, including restrictions on overseas travel and challenges in securing employment. Bankrupts will also have their names listed on a bankruptcy register.

Given the changing value of money, raising the bankruptcy threshold may discourage filing for bankruptcy for smaller debts and push creditors towards negotiating debt settlements. However, the challenge lies in finding a balance between policy goals to avoid discouraging lending and increasing borrowing costs.

Similarly, attention turns to the debt repayment scheme. Modelled after the US Bankruptcy Code’s Chapter 13, Singapore’s debt repayment scheme aims to create mutually beneficial outcomes for creditors and debtors by ensuring that creditors receive payment of debts owed and debtors avoid the stigma of bankruptcy.

Broadening access to this scheme by raising the S$150,000 threshold or indexing it annually could provide relief to a larger segment of debtors. Allowing those operating an unincorporated business to qualify, provided that they earn a regular income, as permitted by Chapter 13, might also enable small- and medium-sized enterprises the opportunity to rehabilitate.

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Gold, Bitcoin surges show black swan risk rising – Asia Times

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Gold continued to break price records on Friday, trading at US$2,183 an ounce at mid-afternoon, following a more dramatic rally in Bitcoin. Gold led Bitcoin in 2020 and 2021, during the Covid crisis. This time Bitcoin clearly led gold, suggesting that investors have more confidence in the high-tech alternative to the dollar.

Key to understanding how gold gauges geopolitical risk is the longstanding relationship between Treasury Inflation Protected Securities (TIPS) and the precious metal. Both are hedges against unexpected inflation or debasement of the dollar.

From 2007 through 2022, the gold price moved in lockstep with TIPS yields, as investors used them interchangeably. The seizure of more than $300 billion of Russian reserves after Moscow’s February 2022 invasion of Ukraine changed that.

Foreign central banks hold $3.4 trillion of Treasury debt and all foreigners own more than $8 trillion. Confiscation of reserves persuaded many foreign investors, official as well as private, to shift to gold.

That’s why the value of gold predicted by TIPS yields remained very close to the actual gold price from 2007 to 2022, and then decoupled. Gold is now nearly $900 “rich” to TIPS yields. The divergence between TIPS yields and gold is at an all-time high.

This is all the more remarkable given the strong performance of world stock markets during the past several months and the subdued price of risk hedges in options markets. The cost of options on the S&P 500 (the VIX Index) or the cost of options on major currencies is close to its all-time low.

But options only provide hedges against short-term fluctuations, and their payout depends on the smooth functioning of derivative markets.

Investors evidently want to take out insurance against extreme events – the sort of trouble that might arise from a geopolitical crisis – although they are unwilling to pay much for hedges against short-term fluctuation.

Despite the tranquil appearance of markets, the likelihood of a black swan event is rising.

Follow David P Goldman on X, formerly Twitter, at @davidpgoldman

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