COLOMBO: Sri Lanka’s central bank kept interest rates unchanged on Friday ( Sep 27 ) in line with expectations, citing domestic and global uncertainties, but said inflation was likely to remain low and the economy was doing much better than initially expected. The Standing Deposit Facility Rate and Standing LendingContinue Reading
Qarbotech Sdn Bhd, which claims to be a technology pioneer in photosynthesis enhancement through advanced carbon quantum dots, has announced its expansion across Southeast Asia, driven by US$ 1.5 million ( RM6.2 million ) in a seed round , from investors, including 500 Global, Better Bite Ventures, ID Capital, EQT Foundation, and Epic Angels Limited.
Launched in 2018, the , investment , solidifies , Qarbotech ‘s , commitment to introducing its pioneering technology to new markets. It had earlier announced in Feb that it raised US$ 700, 000 in a plant square. The most recent statement is characterized as its grain expansion round. Data from Crunchbase , shows Temasek Foundation among its owners, while Khazanah Nasional gave it a give and Petronas Future Tech gave aid with non-equity help.
The funding , may allow it to range functions in areas such as Malaysia, Indonesia, Thailand, and Vietnam, where demand for innovative agricultural solutions is rising.
” We’re thrilled to embark on this new section of growth”, said Chor Chee Hoe, CEO of Qarbotech. ” Our solution, QarboGrow, is a milestone in plant science, using natural, biodegradable carbon quantum dots to dramatically improve light intake and increase crop yields by up to 60 %. This addresses issues with food safety and optimizes the use of fertilizers, thereby reducing the need for a lot of software that can cause dirt pollution and degradation.
As part of its development, Qarbotech is opening its second manufacturing center in Puchong, Malaysia, capable of producing 100, 000 gallons of QarboGrow regular. This facility represents a major step forward in meeting the country’s growing need for cutting-edge agricultural technology.
Amirul Merican, COO of Qarbotech, stated,” This purchase will help us to increase production and bring our branded alternatives to more farmers in the region, enabling them to make more with less economic impact.
The entrepreneur behind Qarbotech’s breakthrough technologies is Prof Dr Suraya Abdul Rashid, a leading nano scientist ranked among the nation’s top 2 % experts in 2022, 2023, and 2024. Her research supports the foundational knowledge of QarboGrow more, in line with the 2023 Nobel Prize in Chemistry for the finding of quantum dots.
” With over two decades of experience in nano, I am thrilled to discover classical lines finally achieving useful, large-scale influence in agriculture”, said Prof Dr Suraya, chairman and chief professor of Qarbotech and director of the Institute of Nanoscience and Nanotechnology, University Putra Malaysia. ” Our patented technology addresses the inconsistencies of photosynthesis using a scalable and sustainable approach, bypassing the need for genetic modifications, allowing us to directly address challenges in crop yield and climate resilience.”
Qarbotech’s innovations are already making an impact. A pilot project with PT Iceh Agro Indonesia in Indonesia that involved 400 hectares of rice fields increased yields by up to one tonne per hectare and significantly increased farmer incomes.
” Imagine the same farmer with the same land, labour, and workflow being able to produce up to 60 % more food. Qarbotech’s photosynthesis multiplier makes that possible. We are proud to provide additional financing to Qarbotech and believe their technology will be mission-critical for regions vulnerable to climate change”, said Khailee Ng, managing partner, 500 Global.
Michal Klar, founding partner at Better Bite Ventures, added,” Qarbotech embodies our commitment to supporting a more sustainable, climate-friendly food system through transformative technology, improving economic outcomes while lowering emissions. This innovative team and their effort to transform the world food system are a success, in our opinion.
The potential to increase crop yields across a range of climates and agricultural practices presents a significant market opportunity with over 500 million smallholder farmers worldwide.
” During our entrepreneurship competition in Southeast Asia, Qarbotech surprised us with their breakthrough in photosynthesis enhancement. Their innovation demonstrates that it is possible to increase farmers ‘ yields and economic outcomes while lowering carbon emissions. With EQT’s global expertise in agricultural investments, we aim to help Qarbotech overcome barriers to achieving scale”, said Cilia Holmes Indahl, CEO of EQT Foundation.
Beyond boosting productivity, QarboGrow’s unique carbon quantum dot technology promotes carbon sequestration by enabling plants to store more carbon dioxide, which results in lower greenhouse gas emissions. With each litre of product increasing carbon dioxide capture, QarboGrow’s global scaling could have a significant impact on efforts to combat climate change. This opens up the doors to carbon credits and offsets, which are becoming increasingly important in a world where emissions reduction is a top priority.
With far-reaching economic and environmental effects, Qarbotech’s technology is a breakthrough in agritech with increased yields and climate action.
HONG KONG: Piyush Gupta, the company’s CEO, announced on Wednesday ( Sep 25 ) that ownership in its China securities joint venture is increasing from 51 % to 91 %. The comments were made a day after China took extreme measures to boost its struggling business and money markets. TheContinue Reading
A marriage equality bill that was signed into law by Thailand’s monarch is the first in South East Asia to recognize same-sex organizations.
The bill passed the Senate in June, but it still needed imperial support to be law. It was published on Tuesday and may take effect on January 22nd, 2017.
The action was hailed as traditional by activists as the culmination of years of fighting for marriage justice.
In a region where such views are uncommon, Thailand has long been seen as a comparative shelter for the LGBTQ area.
The new legislation uses gender-neutral words in place of “husbands”, “wives”, “men” and “women”. Additionally, it grants same-sex people the right to adopt and inherit.
” Now we’re not just getting to read our names in union certificates, but we are also writing a website in story… that tells us that love not set a problem of who we were born to be”, Ann Chumaporn, a lifelong LGBTQ activist and co-founder of the Bangkok Pride movement, told the BBC.
” It’s a triumph of equality and human dignity”.
She said she plans to orchestrate a large wedding for more than 1, 000 LGBTQ people on 22 January.
” We are all happy and thrilled. We’ve been fighting for our freedom for over 10 years, and now it’s ultimately happening”, another advocate, Siritata Ninlapruek, told AFP media company.
Prime Minister Paetongtarn Shinawatra posted on X:” Thanks on one’s passion. # LoveWins”.
Previous PM Srettha Thavisin, who has been outspoken in his support for the costs, even applauded the growth as a” significant action” for Thailand.
” Equity and equality have become fundamental in Thai culture. In the end, gender diversity may be fully accepted. Gratitude”, he wrote on X.
When the legislation comes into result, Thailand may be just the second area in Asia, after Taiwan and Nepal, where same-sex people you get married.
In 2019, Taiwan’s congress became the first in Asia to legalise same-sex relationship. Nepal’s second same-sex coalition was announced in November of last year, five months after its Supreme Court upheld its favor.
The government, which said it would fixed up a board to decide on more legal privileges for same-sex people, made the decision just one month after India’s top prosecutor had ruled against it.
Singapore scrapped a colonial-era law that banned gay sex in 2022, but also amended its constitution to prevent the courts from challenging the definition of marriage as one between a man and a woman.
Thanyarat Doksone provided extra monitoring in Bangkok.
Japan – In a level of the AI increase days, Japan’s Kokusai Electric is building its first fresh in-country shop in 35 years.
In the markets for Chemical Vapor Deposition ( CVD), Atomic Layer Deposition ( ALD ), and other thermal process and plasma treatment equipment used to create nanoscale thin films for the fabrication of integrated circuits ( ICs ) on silicon wafers, Kokusai squares off against Applied Materials and Tokyo Electron.
Following a successful spin-off from the Hitachi Group led by US private equity firm KKR, the business has since resurrected as a leader in semiconductor manufacturing technology.
Kokusai is significantly smaller than Applied Materials and Tokyo Electron in terms of overall sales, but according to market research firm Gartner, it holds significant market share in its key products, accounting for 34 % of batch CVD in 2023 and 70 % in batch ALD.
Kokusai’s target applications include AI processors and other advanced logic ICs, the high-bandwidth memory ( HBM ) used with AI processors, 3D NAND flash memory and silicon carbide power devices.
” As silicon products have become three-dimensional and more sophisticated in recent years”, Kokusai explains,” the edge of chips has become more difficult. This, in turn, has increased need for very difficult accumulation”.
Examples include the continuously increasing number of layers in 3D NAND, the Gate All Around ( GAA ) transistors developed with 3nm process technology, and the Complementary Field-Effect Transistor ( CFET ) architecture being developed by nanoelectronics R&, D organization imec for use at process nodes below 1nm, which were all envisioned at the end of the decade.
Kokusai has also established a significant presence in the market for advanced reasoning Circuit thermal processing products, first in Japan and China, and then in Europe and the US. In the past four rooms, just over 50 % of the company’s income were in China.
The semiconductor production equipment business started with a single diamond germanium/silicon ingot grabber in 1956, which Kokusai Electric Company, which was established in 1949 as a maker of telecommunications and other electronic equipment, began.
A propagation furnace was created in 1964, and a CVD system was created in 1970 as a result. In 1961, the business was listed on the Tokyo Stock Exchange.
In 2000, Kokusai Electric merged with Hitachi Denshi, a maker of film, communications and analyze tools, and Yagi Antenna to shape Hitachi Kokusai Electric, a unified company of digital conglomerate Hitachi Ltd.
With sales and service centers in Taiwan, China, Europe, and the US, Hitachi Kokusai has grown to become a leader in the production of semiconductor production tools. It has also established companies in Japan and South Korea.
However, it was a difficult mashup of three largely related organizations. US merger business KKR seized 24.9 % of Hitachi Kokusai in a contentious deal with different foreign and Chinese investors in 2017 as part of the reform of the Hitachi Group.
Hitachi Kokusai’s semiconductor production equipment department was spun off, taken over by KKR, and renamed Kokusai Electric Corporation in 2018.
Applied Materials and KKR reached an agreement to buy Kokusai in 2019, but that deal fell apart two years later subject to objections from the Chinese competitive regulator.
The Chinese choice made sense because Kokusai’s product line would match Applied Materials ‘ and boost its market focus. If the parties involved in a package have a significant business reputation in the nation, Chinese authorization is necessary.
Kokusai Electric Corporation was listed on the bottom tier of the Tokyo Stock Exchange in October 2023, earning DealWatch’s” IPO of the Year” accolade. ( The 1995 establishment of the DealWatch Awards helped to grow and expand Japan-related capital markets. )  ,
DealWatch wrote in its assessment of Kokusai that” we cautiously executed the deal in a tough situation with an uncertain business culture and a worsening silicon cycle. This is the first large-scale world IPO in Japan in approximately five years.” We attracted attention from blue-chip outside investors, leading to incredibly strong property value performance”. Kokusai’s IPO price was ¥1, 840, but it jumped more than 30 % on the first day of trading.
By the end of the fiscal year ending on March 31, 2024, KKR owned 43.4 % of Kokusai. In July, KKR sold about half that stake. The most recent shareholder data available shows Qatar Investment Authority at 4.9 %, Applied Materials at 14.7 %, and KKR at 23.2 %.
Since July, Kokusai’s share price has dropped from an all-time high of 5, 940 to 3, 320 yen. Applied Materials made some profit, KKR made some profit, and other investors bought shares in exchange for what it could not have acquired in a takeover. Kokusai has now gotten its independence from KKR after fleeing the Hitachi bureaucracy.
Toyama Prefecture, northwest of Tokyo on the Japan Sea, will now have Kokusai’s new 24 billion yen factory, which will be able to meet its goal of double production capacity in five years, up to March 2026, with twice the efficiency of older facilities. It will also seek to strengthen the company’s R&, D capability.
” To make our operations smarter”, Kokusai’s management said,” we plan to systematically introduce cutting-edge technologies, including IT, IoT]Internet of Things], digitalization, data utilization, automation, and even AI”. The beginning of production is expected in October.
Kokusai is also expanding its service and support operations in the US, Europe, India, Southeast Asia, Taiwan, mainland China and Japan.
Its customers include TSMC, Samsung Electronics, Micron Technology, Chinese DRAM maker CXMT, Intel and other leading semiconductor makers. The key to filling up the new factory will be having the necessary equipment to implement their advanced process technologies.
Follow this writer on , X: @ScottFo83517667
Suthep Kaengsanthia, Thailand’s Permanent Secretary for Education, has urged Asia-Pacific academics to demonstrate their commitment to changing the way they teach to ensure that every student in the region has access to quality education.
In a speech at the 6th Asia-Pacific Meeting on Education 2030 ( Apmed 6), Mr. Suthep stated that Thailand is also one of the Asian-Pacific countries that needs to reevaluate and restructure the educational system in response to the problems brought on by the Covid-19 crisis.
Thailand even faces environmental risks such as cross-border air pollution, climate change and drought, and they affect how educators learn, he said.
He continued,” We are at a crucial time in our society, where changing our educational system is more urgent than ever to make sure training in the region becomes more diverse, adaptable, and relevant to the needs of our civilizations.”
According to Mr. Suthep, Thailand is committed to an academic perspective because it recognizes that training is the basis of sustainable development and the key to unlocking the potential of each person in every neighborhood.
Creative solutions are needed, he said, because the nation is also dealing with pandemic-related learning gaps in regards to environmental problems.
” So, I urge teachers in Asia-Pacific places to commit to transforming training in the region”, he said.
A past” Bangkok Statement of 2022″ report was launched after the” 2nd Asia-Pacific Regional Education Minister’s Conference” held in Bangkok from June 5–7, 2022.
That speech highlighted two priorities: Safe School Reopening, Learning Recovery and Continuity of Learning, and Transforming Education and the Education System. ” But together, we can create an education program that is more diverse, resilient and adaptable to the ever-changing globe”, he said.
At the meeting held under the heading” Accelerating Actions: Transforming the What and How of Learning for Sustainable Future,” Mr. Suthep spoke to more than 200 participants from about 30 Asia-Pacific nations to draw attention to the need to accelerate action in order to accomplish the Sustainable Development Goal ( SDG) 4 of the United Nations.
According to Sustainable Development Goal 4, “ensure inclusive and equitable value knowledge and promote lifelong learning opportunities for all.” This objective is a key factor in good change, highlighting the revolutionary value of education in creating a just and sustainable world.
In addition, Soohyun Kim, regional chairman of the Unesco Regional Office in Bangkok, stated that it is essential to ensure that every student in every neighborhood in Asia-Pacific has access to a quality education.
Babies in the Asia-Pacific place were less equipped to deal with these issues, according to Ms. Kim, as a result of many problems across the area, such as the climate crisis and the rapid changes in work and life in the wake of the Covid-19 crisis.
” Let’s imagine a 10-year-old girl living in our region. The rapid changes in work and life, and the escalating climate crisis. She is less than she should be in the aftermath of the pandemic.
” She needs more than academic access. She requires a course that will help her get ready to face the challenges of an increasingly digital world. Her ability to thrive academically, socially, and emotionally, depends on the actions we take,” she said.
However, Ms. Kim said that because of the pace at which SDGs are being achieved, the Asia-Pacific region might not be able to achieve them until 2062, including SDG 4, in accordance with her opinion.
So, there should be a movement to change the “what and how” of learning for a sustainable future, which affect both what is taught to the learners and how to create an environment that fosters holistic development, well-being, and lifelong learning, she said.
Kim: Disruptions across region
Other than air force exercises and training on the high seas, tensions between China, Taiwan, and the US are also a part of the conflicts. The technological field is likewise playing a role in the dark issue.
Dominance over global semiconductor supply stores is one of the main causes of the growing political rifts between Taiwan and the US on the one hand and China on the other. Because semiconductors, or microchips, provide everything from smartphones and business applications to sophisticated military hardware and critical infrastructure.
As the demand for advanced microchips rises globally, not least because of the explosive growth of artificial intelligence, so does their proper value to the advancement of individual countries and the world market. Currently, China imports computers for twice as much as it does oil.
This growing emphasis on electronics around the world adds a new layer of complexity to the raging China-Taiwan tensions. Now, Taiwan is the nation’s largest and most innovative microchip maker, and China is the civilization’s biggest consumer of electronics.
We as geopolitics and advanced systems researchers see the struggle to control device supply chains as one of the fundamental struggles of the twenty-first century. The US, which announced a new influx of export controls on silicon items on September 6, 2024, might use Taiwan’s experience as an example.
Taiwan did not emerge as the country’s silicon superstar by accident. Due in large part to its versatile production system and world-class executive talent pool, the self-governing area has been producing high-quality computers for years.
Taiwan must find a delicate balance in order to maintain its position of dominance in the semiconductor industry, especially when it comes to exporting cutting-edge solutions to China.
For one, Japanese policymakers are rightly determined to protect the island’s intellectual property while avoiding social friction with a nation that views the isle as its own territory. Also, Taiwan wants to keep computers from powering Chinese missiles now pointed at the money, Taipei.
Japanese law forbids the shift of systems to China up until the early 1990s. But laws were poorly enforced. As a result, Chinese businesses usually evaded previous sanctions by moving their business through then-British Hong Kong. The island’s device market was actually a beneficial source of income.
Taiwan’s approach to regulating the movement of systems started to change in 1993 when President Lee Teng-hui implemented the” no haste, get patient” plan. A program that added extra layers of oversight to very developed technologies, deals valued at more than US$ 50 million, and specialized vital infrastructure projects was put in place of the tight ban.
Crafted over years, this “outbound purchase testing” system features many checks intended to safeguard Taiwan’s primary chip technologies. Chinese government are actively involved in monitoring and overseeing funding decisions made by the region’s semiconductor firms in China.
Authorities are also concerned about ensuring that native chipmakers are in line with Taiwan’s corporate goals while reducing political ties to its neighbor.
During the verification process, Chinese companies are required to post comprehensive expense plans to government-appointed reviewers for acceptance. For instance, when a Chinese semiconductor company, such as the world’s largest chip manufacturer TSMC, considers establishing a fresh facility in China, it must first conduct a thorough approval process.
Even though the cautious policy change, which is still being pursued today given rising geopolitical tensions, was thought to be out of step with the development of more open global trade relations with China.
After years of intensive lobbying by US corporations, the restrictive human rights restrictions that had hampered Western trade with China were lifted in the 1990s. China’s permanent normal trade relations were established in 2000 by US President Bill Clinton, paving the way for its accession to the World Trade Organization a year later.
Trade with China, including of advanced technologies, exploded thereafter.
However, over the past ten years, Washington’s strategic decisions regarding trade with China have changed significantly.
China was identified as a strategic rival in the US in 2018, naming several Chinese hackers as national security threats and the government as national security threats. President Joe Biden ordered the Treasury Department to create regulations to establish an outbound investment security program to safeguard semiconductor, quantum, and AI technologies by August 2023.
A few months later, the US imposed severe restrictions on China’s trade of advanced chips and chipmaking equipment. The European Union published a white paper in the early 2024 that suggested doing the same.
Taiwan, of course, has its own particular political concerns in China. Given Beijing’s long-standing ambition to, as Chinese leaders put it, “reunify” Taiwan with the mainland, local officials are particularly aware how doing business with China might have unpredictable and damaging political ramifications.
The Taiwanese National Security Bureau has long warned that Beijing is using business to covertly advance its political ambitions, including by using Taiwanese money to establish proxies and influence in Taiwan.
And Taiwan’s National Science and Technology Council made a list of over 20 core technologies that it wanted to prevent Beijing from acquiring, including know-how and raw materials to make chips smaller than 14 nanometers in late 2023.
In order to counteract Chinese influence, Taiwanese authorities and businesses have relied on the outbound screening system. Additional guidelines have been developed to defend Taiwan’s position in the semiconductor industry, including mandating that Taiwanese investors keep a controlling stake in all Chinese subsidiaries.
Nonetheless, Taiwan’s outbound investment screening system is facing multiple tests. It has to supervise financial investments from Taiwan into China’s rapidly expanding chipmaking industry, but it also has to curtail the transfer of advanced Taiwanese technologies to China.
For instance, Foxconn, a Taiwanese technology company, made an investment in Tsinghua Unigroup through its Chinese subsidiary in 2022. The National Integrated Circuit Industry Investment Fund, a Beijing-based private equity firm, supports Tsinghua Unigroup.
The Taiwanese government fined Foxconn for failing to submit a preapproval application to the outbound investment screening authorities, which ultimately withdrew its investment.
China’s expanding chip industry is also extending its local supply chain, which raises the question of whether Taiwan should impose restrictions on other suppliers to semiconductor manufacturers.
Huawei, a Chinese company, aggressively expanded its chip production network by leveraging its affiliates and Taiwanese suppliers after the US tightened export controls on China in late 2023.
Four Taiwanese semiconductor companies were later accused of aiding Huawei in developing its own domestic chip supply chain.
China has aggressively pushed for greater technological autonomy as Taiwan’s semiconductor industry is becoming more restricted. It has done so by lowering its reliance on imported high-tech goods and supplies from the US, Japan, the Netherlands, and Taiwan.
There are legitimate concerns in the West that enforcing international export restrictions on microchips and relevant suppliers may unintentionally help China’s resolve to advance domestic semiconductor production development.
Official data appears to corroborate this view, China’s overall imports of microchips in 2023 were below 2017 levels. In 2023, Taiwanese chips were exported to China, a decline of 18 %.
In addition, the National Bureau of Statistics of China reported that domestic chip production overall increased by 40 % in the first quarter of 2024. By 2032, its share of the world’s capacity to produce logic chips at 10 to 22 nanometers could increase from 6 % to 19 %.
However, these data points do not necessarily indicate that China is on the verge of technological autonomy. Instead of the most advanced chips needed to increase AI computing power, the majority of domestic chip production is based on “mature” chips for household appliances and electric vehicles.
Meanwhile, China is still dependent on Taiwan for its semiconductors. The most cutting-edge semiconductors needed for high-end smartphones and other AI-driven, high-performance computing products may have been subject to international export restrictions due to the decrease in overall chip imports.
Restricting China’s access to the global superconductor supply chain is challenging. In addition to making China dependent on Taiwanese chips, which may act as a temporary protective shield against invasion, it may also serve as a heightened level of insecurities, causing President Xi Jinping to push his efforts to accelerate their technological self-reliance on advanced chips manufacturing.
China can still produce a range of semiconductors using foreign capital and technology despite the outright ban on these chips.
Taiwan’s screening mechanisms must continue to be nimble and vigilant in order to overcome this challenge, as well as be supported by a coordinated international strategy. Only then will it be possible to halt authoritarian regimes ‘ expansion in the AI race.
Robert Muggah lectures at Pontifical Universidade Católica do Rio de Janeiro ( PUC-Rio ), while Min-Yen Chiang is a PhD student at Georgia State University.
The Conversation has republished this article under a Creative Commons license. Read the original article.
The most profitable quarter to date for CARSOME Group Inc., the largest included car e-commerce platform in Southeast Asia, announced another significant step in the direction of its much-anticipated future IPO.
According to the company, in 2Q2024, it maintained a leadership position with about 35, 000 vehicles traded ( includes cars sold through Carsome , via retail and B2B , and CarTimes in Singapore ) and claimed it grew revenue by 9 % quarter-on-quarter ( QoQ ) to above US$ 310 million ( RM1.3 billion ). The EBITDA increased over 3x Ruler, and the gross margin increased by over 10 %. Despite the challenging macroeconomic environment, this continues the profitable development speed that Carsome first demonstrated in December 2023.
In line with the strong results, Carsome announced various new financing partnerships, such as with Ambank Group ( announced in July ) and Maybank ( not officially announced yet ), which will provide over US$ 46.17 million ( RM200 million ) in new working capital lines to support Carsome’s expansion plans. Carsome intends to utilize its market-leading level to promote its financing, plan, aftersales, and another auxiliary offerings to provide its dealers and customers with a complete one-stop option.
Eric Cheng ( pic ), Carsome’s co-founder, chairman and Group CEO, said,” This quarter’s results are a continuation of our profitable growth strategy. Our GPU ( Gross Profit per Unit ) is up by more than 5 % QoQ, even as customer acquisition costs continue to come down significantly, which is a testament to our strong execution, our value proposition, and our brand equity. We will remain on the right track to record-setting time. He cited the benefits of Carsome Capital’s support for expanding its secondary products, particularly Carsome Capital.
With NPL below 2 % for retail and 0.1 % for wholesale ( referring to B2B), we have established a strong operational track record. We are well positioned to utilize our magnitude to develop this business more thanks to the extra funding support and our demonstrated capabilities. This will keep Carsome top-of-mind as we better serve both current and new customers throughout the duration of their car ownership trip.
In 2024, American stocks have outperformed their world peers due to a steady economic backdrop that has fueled the rally. After the MSCI rebalanced its main index in August, which maintained India’s land weight above a fifth of the MSCI Emerging Market Index, the market’s confidence increased.  ,
There are still significant costs associated with closing the thin position. Considering India’s forward several trades at 24 times against the state’s 13 times, utilising a lower priced business to invest into a more expensive one impacts the firm’s performance, an affront to the “buy low, sell large’ ‘ slogan for investment pickers. Those valuations are difficult to ignore, Turner noted”. The potential for a correction is higher, he said, obliging fund managers to generate alpha elsewhere while India’s outlook is still positive.
China conundrum
When considering Chinese equities as a source of funding, that choice becomes more pronounced. The anticipated increase in passive funds ‘ returns is likely to further reduce China’s market multiple, which is only currently 9 times. China continues to make up the majority of the MSCI EM Index even after the rebalancing.  ,
China’s stock market offers numerous opportunities to capitalize on structural shifts in its domestic economy, in addition to the valuation gap between Indian and Chinese stocks. Coupled with technological advancements, these changes should support the market’s growth profile, according to the PineBridge Mid-Year Asia Equity Outlook note.  ,
The report further notes that” China may offer alpha-generating return potential for long-term investors despite mixed near-term signals and property market woes” while noting that the ratio of earning misses to beats has decreased. The analysis coincides as more Chinese businesses look for opportunities abroad and establish themselves as multinational corporations.  ,
However, despite the stability that is alleviating systemic risks and supporting the banking sector, investors remained sidelined. According to Turner, the MSCI rebalancing may potentially increase relative selling pressure until the central bank of China implements new fiscal stimulus measures and takes more drastic interest rate cuts, which would undermine those alpha-generating opportunities.
There is no quick fix for these issues, according to Yi Ping Liao, assistant portfolio manager at Franklin Templeton Emerging Markets Equity, adding that the improvements will take time and result in a decline in economic growth and a rise in tail risks.
India’s fundamentals ,
These factors draw attention towards India, where the investment rationale is supported by structural factors such as demographics, the growing middle class, and supply chain diversification.
In response to FA, Vivian Lin Thurston, portfolio manager for William Blair’s emerging markets growth strategy, said domestic inflows are more evident in India, where financial product developments are attracting household savings into the equity market. This has provided liquidity for the broad-based market rally, led by small and medium-sized companies which are reporting even faster earnings, supporting the multiple re-ratings.
Although Indian equities may seem expensive, its macro and corporate fundamentals outweigh those of some other significant EM nations, including China, which is still facing an uphill battle to overcome an escalating economic downturn and increased structural challenges. ” Thurston added that it would be challenging to justify reversing the trend of importing products from India and moving into China right away.  ,  ,
Active fund managers may be cornered after the announcement, in a fight with domestic investors who are pushing market valuations and compulsion them to buy the more expensive India market, regardless of the cost.  ,
Back in July, MSCI announced the launch of MSCI Private Capital Indexes, constructed from a broad universe of private asset funds with over$ 11 trillion in capitalisation.
Encompassing private equity, private credit, private real estate, private infrastructure, and private natural resources, these 130 Indexes complement MSCI’s over 80 real asset fund and property indexes, providing investors with a comprehensive view of global private markets and the full risk spectrum of private real asset investing.
¬ Haymarket Media Limited. All rights reserved.
ReutersFollowing a wave of allegations against its chief, best fund managers, and the BBC, India’s market regulation is facing a danger to its reliability.
Over the past month, allegations of conflict of interest against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India ( Sebi), have been made from at least four different angles. She has denied the majority of them and has not responded to some in public.
This comes amid a bull run in India’s capital markets, which are among the country’s best performing this time.
In a flurry of mutual funds and initial public offerings ( IPO ) frenzy, millions of new mom-and-pop investors have opened electronic accounts to invest in more than$ 6 billion ( £4.5 billion ).
Trouble for Ms Buch began in August when US-based short-seller Hindenburg Research accused her and her husband of holding investments in an offshore fund used by the Adani Group, implying it was why Sebi was dragging its feet on an investigation against Adani over allegations of accounting fraud and market manipulation.
A number of other complaints have since been brought to the forefront.
The main opposition group, the Congress Party, claims that Ms. Buch has rented from a business she was looking into. It has also been claimed that she continued to work for one of India’s largest private lenders, ICICI Bank, by maintaining an “office of profit” through Employee Stock Ownership Plans ( Esops ) long after her time with them was over.
ReutersSubhash Chandra Goyal, the chairman emeritus of internet large Zee Entertainment Enterprises, blamed her for the decline of a merger between his business and Sony Enterprises, stating” I am convinced that the Sebi chairman is corrupt” and calling her “vindictive” in a press conference. He is now facing charges of fund diversion, governmental action, and a ban on holding important positions in listed companies.
But perhaps the most harmful of all is Sebi’s growing domestic discord, which has now spread into the pubic area.
On 5 September, angry staff people staged a uncommon rally outside the bank’s office demanding Ms Buch’s departure. Local media reported that around 1, 000 people had previously reportedly complained of a toxic work environment in a text to the banking department. They complained of “immense force” and” shouting, scolding and public shame” becoming a standard in discussions.
Sebi has formally rejected the promises as “misplaced”, adding that” young officers have been misguided, perhaps by physical elements”.
But, protesters on Thursday called for an immediate contraction of this speech.
” This is unprecedented”, says Hemindra Hazari, an independent business analyst. ” Up until yesterday, internal issues were allegations from the outside, then internal issues have become common. Everything is really wrong”.
Ms. Buch has vigorously defended herself, defying any claims made in the Hindenburg situation regarding conflict of interest, while ICICI Bank has denied receiving her earnings or Esops and claimed she only received her pension benefits after leaving the lender. The Sebi main has so far never made a public statement about the criticisms Mr. Chandra has made of her or the protesting workers.
Sebi did n’t respond to the BBC’s request for comment.
Getty ImagesAn student of India’s top management college, Indian Institute of Management Ahmedabad, Ms Buch is a pioneer in many ways. She became the first key to possess come from a personal business background, becoming the youngest and first female chairman to direct Sebi.
Experts claim that Sebi has been credited with changing the organization by introducing stricter insider trading standards and accounting standards, but claims of a lack of accountability in her own financial affairs raise serious questions about whether or not Sebi adheres to the same standards it expects from public figures.
” The crux of the issue is about disclosure laws governing the senior-most leaders at regulatory systems, given their access to unreleased price-sensitive data. In a paragraph for Moneylife newspaper, Sucheta Dalal, a senior financial journalist, writes that their orders and decisions can have a significant impact on stock prices, raising the bar for strict reporting and compliance standards.
According to Ms. Dalal, the requirements for head of regulators in developed nations are much more stringent, with some discrepancies in the ICICI Bank statement regarding its Esop policy complicating matters more than making them clear. For instance, they are required to “divest from direct holdings in entities that could post conflict of interest.”
Regulators like Sebi typically employ lateral hires and political appointees from the private sector. The finance ministry, the central bank, and other government nominees are all members of a board that oversees SBI.
According to Shriram Subramanian of the proxy advisory firm InGovern Research, the Buch episode is a “learning” not just for Sebi but also for other Indian regulators, such as the insurance watchdog or the Competition Commission, to implement more stringent disclosure standards.
” It will bring more transparency”, Mr Subramanian adds.
AFPInvestors seem unconcerned by the recent events of the month at this time.
Global investors already pay a regulatory risk premium when they make investments in India, and they will disregard this, according to a veteran trader.
However, if the controversy escalates, Mr. Hazari predicts that things could turn the tables.
If internal warnings are issued regarding compliance issues, institutional money can flee. He continues,” And then retail investors will start gradually resuming their positions in the market.”
Some claim that Ms Buch is now facing the very real question of leaving her post as a result of mounting pressure both from outside and inside Sebi.
Her position was “untenable” a few weeks ago, but has become increasingly “unsustainable” now, Subhash Garg, a former finance secretary, told journalist Barkha Dutt on Mojo Story, a digital outlet.
Both Ms Buch and the government would prefer a resignation or suspension as proof of guilt.
At least three market experts the BBC spoke with said the most likely outcome of the controversy will be that Ms Buch’s appointment won’t be renewed. Her current three-year tenure as chairperson ends in February 2025.
What’s most amazing to me is how the government has been completely silent. They must intervene right away. The only higher authorities that can formally authorize a credible investigation are the judiciary or the government, according to Mr. Hazari, when serious allegations are made against the regulator’s head.
Others have also demanded that Sebi’s board intervene and address the allegations in front of the media.
Global investors will watch the way the government handles the situation, and how quickly it acts, according to an executive at a foreign fund house who spoke to the BBC on the condition of anonymity.
” This will affect investor sentiment going forward”, he said.
