PING AN’s Post

From the people and for the people

NEWS ANALYSIS: Find out what this weeks' top stories mean for investors: -May retail sales are up due to end-of-financial-year promotions. -RBA's potential rate hikes dampen Australian investor sentiment. -Samsung's Q2 profit surges due to high-end AI chips -and more... Read it all here https://lnkd.in/gFZXzUzC #investmentmarkets #investmentopportunities #investments #investing #managedfunds #independentinvestors #australianinvestments #investmentsaustralia #investmentoptionsinaustralia

𝐂𝐡𝐢𝐧𝐚'𝐬 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐅𝐢𝐧𝐚𝐧𝐜𝐞 𝐒𝐞𝐜𝐭𝐨𝐫 𝐅𝐚𝐜𝐞𝐬 𝐂𝐨𝐧𝐬𝐨𝐥𝐢𝐝𝐚𝐭𝐢𝐨𝐧 𝐔𝐧𝐝𝐞𝐫 𝐍𝐞𝐰 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 China's consumer finance industry, worth about $120 billion, is poised for significant consolidation due to tighter regulations announced by the National Financial Regulatory Administration. The new rules, demanding a threefold increase in registered capital to over 1 billion yuan and a major investor with at least a 50% stake, aim to mitigate financial risks and boost sector health. With 10 of 31 consumer lenders falling short on capital requirements, and many lacking a qualifying major investor, the sector is expected to see mergers and new capital infusions, particularly from larger financial and internet companies. The sector, serving over 338 million borrowers, including many from vulnerable demographics, faces a transformation as it navigates the heightened regulatory landscape. #finance #news #China #ConsumerFinance #Regulations Source: https://lnkd.in/g4fqb9sW

Here's David Kuo's Smart Look At The Week Ahead this week with market outlooks and corporate updates.

Erica Tay, our Thailand economist was on CNBC to discuss the country's economic outlook. Key highlights: 🇹🇭 Expect Thailand's GDP growth to rebound in H2 2024 due to public spending and tourism. 🇹🇭 The government's strategic plan Ignite Thailand aims to gear up high tech industries - semicon, EVs and medical. 🇹🇭 Need to reconsider or scope down the digital wallet plan as it will push public debt up to 68% of GDP. Watch a snippet of the interview on CNBC here -https://maybank.my/3VWcDiW #ThaiGDP #ThailandDigitalWallet #IgniteThailand

#MoodysRatings Outlook for nonfinancial companies in Asia-Pacific excluding China is stable. Robust GDP growth will underpin earnings in 2025, while easing interest rates support refinancing and funding conditions. Certain sectors will benefit from diversifying supply chains. Learn more in our 2025 Outlook to gain insight into our projections for key corporate sectors and credit metrics: https://lnkd.in/gmKcuiak #MoodysOutlooks2025

Asia-Pacific is a powerhouse, contributing approximately 42% (or $218 trillion USD) of global wealth. This surge is driving competition among private banks and wealth managers eager to serve the region’s growing wealth. However, APAC investors have unique needs that differ significantly from those in America and Europe. Here’s what I’ve learned about investor preferences in this dynamic market—and how you can stay ahead. Read my latest article 👉 https://lnkd.in/g5W7cu6n

As the business environment in China gets tougher, we will likely see more scrutiny of common industry practices, which have been largely allowed to continue unchecked. This will throw up more scandals into mainstream media. One of my first tasks when I started working in China in 2008 was to chase late payment from a big global auto brand JV. I think this was a standard initiation. Like when you started in the trades and would be sent to the hardware store to get a tin of ‘tartan paint’ or a ‘glass hammer’. Or indeed when you started in Zenith Media TV buying department in London and were told by your manager to call up an unusually aggressive sales rep at Laser to ask for a ‘box of ratings’. After finding the person responsible in finance, I introduced myself on a call, established the person had the invoice, asked when it would be paid, what with it being 6 months late, and the response I got was: ‘What’s in it for me?’ Still a bit green and wet behind the ears, I asked if I understood correctly and they confirmed, yes, adding: ‘everyone else has got their cut, I want mine, and then the invoice will be paid.’ An easy one to kick up the line. Now things are not always as brazen as that anymore, but the opportunities to manipulate personal gain from an increasingly complex system with little outside oversight, have grown as the industry has expanded. While I know nothing of the detail of this particular case, the way ecommerce is structured in market, requiring mandatory intermediary Trading Partners (TPs), makes the system open to abuse. Who selects the TP between platform, client, and agency is not always clear, and neither is the criteria for selection (hint: it's not always the interests of the brand that are prioritised). This is a common problem for global companies inexperienced in market dynamics, if your visibility stops at the point where an intermediary gets involved in the supply chain, you will have problems. Every market has its own peculiarities when it comes to money flow in media between clients, agencies, intermediaries and platforms. Expect to see much more of this kind of headline as companies scramble to understand where their decades of growth in China has disappeared to leaving a massive hole in global targets. Happy to chat more on this is anyone is interested to understand how it works and how to make it better. #independentmedia #makedifferenthappen #media #marketing #advertising #ecommerce #china #chinabusiness

China’s fast aging population is presenting substantial business opportunities for financial services companies.   China is Aging Before Becoming Rich   China entered the phase of an aging society in 1999 when the GDP per capita was only US$1,000, resulting in less financial capacity to support senior care.   Today, the challenge in China is that retirement replacement ratio is low while there is lack of awareness of importance of financial planning for senior care. Michael Guo, our Group Co-CEO at the "Summer Davos" in Dalian pointed out that there is increasing demand for capital preservation and appreciation to build a “personal pension reserve” in the wealth management business.   The lack of coherent, quality senior care services in China also brought about opportunities for companies like Ping An. We are leveraging our base of 234 million retail customers to select the best service providers and set standards in the market. The strength of Ping An lies in its ability to integrate providers into a comprehensive, technology-empowered senior care service platform that can meet customers’ personalized needs.   Seamless Integration of Financial Products and Senior Care    Our integrated solutions comprise financial products offering insurance protection, wealth appreciation and inheritance, and healthcare and senior care services for health management, chronic disease management, medical consultations and rehabilitation, residence security, guardianship and entertainment.    Technological empowerment plays an important role in Ping An’s senior care strategy. For example, AI has been fully implemented in 200 scenarios for online concierge customer interactions in our home-based senior care. Read more: https://bit.ly/3WewJoP  #amnc24 #silvereconomy

Internet | Pinduoduo - Eric Wen Consumption downgrade continues to be in PDD’s favor: 4Q23 last-mile express parcel volume in China increased by 27.4% yoy (per SPB; Exhibit 4), but online-spending on physical goods only increased 6.6% (per NBS; Exhibit 5), implying AOV decline of 16.3% in 4Q vs. the 8.9% decline for 2023 (Exhibit 6). In our view, the AOV declines suggest consumer demand for low priced products persist, a category in which PDD is dominant in China. We expect consumption downgrade in China will persist given the low consumer confidence, which is causing consumers to seek out cheaper alternative for their purchases, such as PDD, in our view. Read full story here: https://buff.ly/3P8n2nL For more information on our #internet product, and other Aletheia Capital research, please contact info@aletheia-capital.com #investments #advisory #ideas #fintech #InYourCorner