Robert Ciemniak

We are kicking off the week with our monthly report covering real estate macro data in June. Link below to our report covering price trends ranging from new sales in various cities to real estate investment. 🔗 Read more here. YY Asia: Overview of real estate macro data in June https://lnkd.in/emBBKWaY #Ratingdog #YYAsia #China #RealEstate #Macro #Property #Developers #Investment #HighYield #June #Data #CreditResearch

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June 11 2024 – 10 Notable Articles To Read Article: Hong Kong’s $8B Fund Plans Pact With AI-Focused ‘Unicorn’ Takeaway: Hong Kong Investment Corp. plans to increase spending on research and development and invest in talent training in Hong Kong. Source: Bloomberg Link: https://lnkd.in/dg7vbruj Article: India plans new shipping firm to capture revenue from growing trade Takeaway: Expand its fleet by at least 1,000 ships over the next decade and aims to capture a larger share of revenue from growing trade. Source: Reuters Link: https://lnkd.in/ddYv5UC5 Article: Elliott Investment Management L.P. Takes Almost $2B Stake in Southwest Takeaway: One of the largest investors in Dallas-based Southwest Airlines and enables it to advocate for changes at the US carrier. Source: Bloomberg News Link: https://lnkd.in/d3AwWUXP Article: Seattle-based private equity firm Sound Growth Partners (SGP) has closed its oversubscribed inaugural buyout fund at its hard cap after securing $275m in capital commitments, including anticipated leverage. Takeaway: Will invest in niche market leaders in the lower middle market using the firm’s One-Stop Buyout approach, supplying all the capital needed to complete a transaction. Source: Private Equity Insights Link: https://lnkd.in/dVv9kE-P Article: Noble Corporation to Buy Rig Rival Diamond Offshore in $1.6B Deal Takeaway: Rig contractors will provide the largest fleet of new drillships, with deepwater drilling experiencing growth again as shale expansion slows. Source: Bloomberg Link: https://lnkd.in/dsKWQtFz Article: Emirates Telecom’s €2.2B PPF Deal at Risk in EU Probe Takeaway: The EU has begun an investigation into the competition impact of the deal, which could force Emirates Telecom to abandon its M&A plan. Source: Bloomberg Link: https://lnkd.in/dS-jg22a Article: SHEIN’s 40% Revenue Growth and Profit Boost in 2023 Could Help Lure IPO Investors Takeaway: Maintained strong revenue growth and increased its profit margin. Source: The Information Link: https://lnkd.in/dEThEpae Article: After hits like Reddit and Scopely, Collaborative Fund easily raised a $125M fund to tackle climate, health and food Takeaway: The new fund will also focus on seed-stage companies, with about half allocated for initial investments and the rest reserved for follow-on. Source: TechCrunch Link: https://lnkd.in/dKSRAeGG Article: Apple Debuts a Clear AI Strategy. It Hopes to Spur iPhone Sales. Takeaway: Introduced a comprehensive strategy called Apple Intelligence, encompassing multiple components. Source: Barron's Link: https://lnkd.in/dyMskvcN Article: Europe’s Onetime Crisis Economies Are Now Outperformers. Takeaway: Countries like Greece, Spain, and Portugal, once considered economic basket cases, are starting to show confidence after years of enduring a brutal crisis and deep recessions. Source: Bloomberg Link: https://lnkd.in/dZezzfSp #news #research #business

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🔝🏢Investors see limited appeal in🇭🇰Hong Kong property🔻⚠️ Poor investor sentiment is reflected in a depressed sector, from low occupancy to falling profits. There's a strong sense that Hong Kong needs to reinvent itself before investors return. Stemming the continuing decline of Hong Kong's real estate market will not be easy, with negative #investor sentiment crowding in on the territory despite the declining interest rate trend. "We're in a different world now. I don't see many foreigners or real estate funds investing in Hong Kong real estate, at this point in time," Arbutus' Timothy Tsui told AsianInvestor. Arbutus is a multi-#familyoffice based in Hong Kong. Residential #property prices have fallen almost 25% from the all-time high in September 2021, with transaction volume continuing to decline, according to research from global commercial #realestate specialist CBRE The underpinning of the Hong Kong property market by cash-rich mainlanders is now a flawed assumption, said Tsui. "Even if a property was 30-40% off, who would buy it? If you are expecting the Chinese super-rich to step up, there's only a certain amount of that kind of #capital around." Tsui believes Chinese real estate investors are wary after the collapse of Evergrande and other mainland developers. For the average #HongKong private #banking client with #exposure to the sector, "I'm guessing you'd be quite cautious until you got that #money back," said Tsui. The rental decline in mainland China tier 1 cities is unlikely to moderate given the significant supply-demand imbalance, according to #CBRE. #Houseprices in #China remain on a downward spiral, with a glut of unsold properties emphasising the scale of the problem. A SECTOR IN DECLINE❓⚠️ With top hotels in Hong Kong only half full and office vacancy rates in the Central business district of 40% not uncommon, Hong Kong appears to have priced itself out. Local developers including Hongkong Land, Sun Hung Kai and Sino Land have all recently reported a sharp drop in profits. Businesses that are not tied to Central Hong Kong can find rents in Shenzhen that are now 50% cheaper. Operating costs can also be commensurately lower. "The rent itself (in south China) is already a huge attraction," said Tsui. Read More… https://lnkd.in/eUQN9W3T

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Congratulations to our True Global Ventures portfolio company Animoca Brands and team (Kenneth Shek Yat Siu Evan Auyang Jared Shaw Minh Do Alan Lau) with their US$23.9 million committed at 12x oversubscription on the MOCA Token Launch! 🌟 The total pre-deposited funds of US$29.3m was conducted on MocaList, a new co-branded token launchpad jointly launched by Mocaverse and CoinList. Access to the offering was gated by Moca ID, the MOCA Token Launch was the top-funded sale on CoinList so far in 2024, with participation by nearly 17,000 unique KYC-ed users from 123 different countries and record participation from the Mocaverse community. The MOCA Foundation serves as the platform to build the largest interoperable cultural economy in the Web3 space powered by the MOCA Token, and support the growth of Moca DAO, where members will take the lead in co-creating Migration Infrastructure Providers (MIPs) and engaging in cross-DAO empowerment through unique delegation models. I see KYC-Identity interoperability across Web3 applications accelerating ease of mass market adoption such that when you onboard onto one MOCA Ecosystem Web3 application you easily onboard onto all at the same time! https://lnkd.in/d6XTA-5D

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Revetas Capital, a leading real estate investment manager specializing in tailored real estate solutions, secures #three_mandates from #Korean Asset Management Companies (AMCs) representing multiple Korean Institutional Limited Partners (LPs). The initial investment volume stands over €860 million.   These mandates mark a strategic collaboration aimed at supporting Korean overseas investments in the face of shifting interest rates and a rise in complex real estate situations in Europe and the United States. Revetas will extend its expertise in restructuring and recapitalization to stabilize these investments over the mid to long term, offering both rescue capital and funding for essential building and tenant improvements.   Eric Assimakopoulos, Revetas’s Managing Partner, expressed enthusiasm about the mandates, stating, "We are pleased to collaborate closely with Korean Institutional AMCs and LPs on their overseas investments. Our focus is on providing capital recovery solutions in a market characterized by dislocation, complexity, and the ongoing importance of price discovery. We see solutions in uncertain times that offer real and meaningful value to our partners and a roadmap to recovering capital".   Revetas is renowned for its specialization in delivering effective solutions to owners and financial institutions amidst market turbulence, uncertainty, and liquidity challenges. The company's mission is to identify and stabilize troubled assets, establish sustainable capital structures, and provide liquidity to facilitate the recovery of initial investments over the midterm, aligning with market stabilization in the real estate sector.   The trio of mandates underscores Revetas' commitment to fostering successful partnerships and driving value in the global real estate market. With its proven track record and expertise, Revetas is poised to continue to make significant strides in supporting Korean overseas investments. #newmandates #capitalrecovery #korea

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NEFIN 立盈 Secures HKD $22.15 Million Green Loan from Bank SinoPac NEFIN, a prominent developer of carbon neutral solutions, has successfully obtained a green project finance loan of HKD $22.15 million from Bank SinoPac’s Hong Kong Branch. The loan will support the development of environmentally sustainable projects. The initial tranche of the loan will be utilized for two NEFIN projects in Hong Kong SAR. These projects are in collaboration with a renowned international financial institution and a global leader in logistics. NEFIN anticipates further drawdowns later this year for the remainder of its Hong Kong SAR portfolio. This funding is expected to boost the returns on NEFIN’s financed projects and provide […] Read the full story here: https://lnkd.in/dhtxrYYu #solarenergy #alternativeenergy #solarpv #pvsolar #photovoltaic #cleanenergy #cleantech #climatechange #middleeast #africa #india #asiapacific #asia #decarbonisation #greenloan #hongkong #nefin #renewableenergy #sinopacbank #southeastasia #sustainabledevelopment

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Unlocking Opportunities: Key Drivers of Success in Japan's Real Estate Market Japan's real estate market has become a hotbed for global investors in 2023. Let's explore the key factors behind this surge: 💱Weaker Yen: The falling value of the yen against major currencies has opened doors for cross-border investors to acquire Japanese assets at attractive prices. 📉 Low Interest Rates: Japan's low interest-rate environment, reinforced by the Bank of Japan's loose monetary policy, makes the market appealing to global capital. 📈Post-COVID Rebound: As consumer demand and business activity bounce back post-pandemic, there's a renewed appetite for various real estate assets. 🏛️ Stable Regulations: Japan's stable regulatory framework is a magnet for institutional investors and private equity firms seeking consistent returns. Amidst this dynamic landscape, Uni-Asia Capital (Japan) Ltd is your seasoned guide. With deep expertise in the Japanese market, it offers comprehensive asset management services spanning residential, commercial, hospitality, healthcare, and strategic landbank investments. This strategic approach ensures sustainable returns and builds a legacy of success. Learn more: https://buff.ly/3VhSMdD #JapaneseRealEstate #InvestmentOpportunities #RealEstateMarket #AssetManagement #RealEstateInvesting #PropertyInvestment #UniAsiaCapital #PostCovidRebound #StableRegulations

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"China’s economy, like every other victim, subsequently entered into a liquidity trap or balance sheet recession. Private firms and households hunkered down, decreased economic activity, and saved money in order to repair their balance sheets. When credit demand falls amongst households and businesses, the standard-issue Keynesian economic medicine – i.e., running a modest fiscal deficit and lowering the price of money via central bank policy rate cuts – is ineffective. What is needed to forestall the dreaded deflation is a monetary and fiscal bazooka. The time it takes to switch into panic mode depends on a country’s culture. But make no mistake – regardless of the economic “-ism” supposedly practiced, every country always comes around to injecting monetary chemotherapy. I refer to this palliative treatment as chemotherapy because while it might cure the deflationary cancer, it ultimately kills the host. The host is the middle and lower classes, who are ravaged by asset price inflation with no discernible improvement in the real economy. And like modern oncology, this ultimately ineffective monetary chemotherapy is extremely profitable for a small cabal of financial witch doctors whose head offices are in New York, London/Paris/Frankfurt, Tokyo, and now possibly Beijing/Shanghai. Chinese people are some of the most resourceful people on this planet. They will not allow their precious yuan savings to sit idle as Beijing encourages asset price inflation. Bitcoin is not a foreign concept to middle and high income coastal urban dwellers. While the exchanges were barred from offering a visible Bitcoin/CNY trading pair, Bitcoin and crypto still flourishes in China." https://lnkd.in/g_eRxaNk

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We hosted our Q2 media briefing last week and below is an excerpt from the event. While we remain cautious on the HK/China markets, we are relatively more optimistic on the US and Japan markets. We also shared our views on AI and how it can be used to counter inflation and its potential positive impact to S&P500 corporate earnings. #HangSengInvestment #hsvm #etf

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"Whatever company you invest in today, you want to make sure that it will still be here four, five, six, seven years from now." Esther Wong, Founder & CIO of 3Capital Investment, in a conversation with Bloomberg's Venus Feng at the #BBGWealth.

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Last week, our Founder Esther Wong speaking at hashtag #bloombergwealthforum about 3C AGI Partners' investment philosophy. 1) We are still in the beginning of the new wave, we will focus on the picks and shovels, hence, AI Infrastructure for now. 2) Unlike mobile internet era, the technical moat to understand and discern AI companies are high, AI veterans enjoy unfair advantage as investors. 3) We are seeing disruptors on hardware side already. The average GPU is running at 50% efficiency, we need new inferencing solution and/or better chip design that tailors to model training and edge inferencing. We invested in Cerebras Systems for precisely this reason. 4) Most radical applications likely to be medical and education. AI being a great equalizer, both segment share great inequalities for now, hence significant market potential. 5) Both US and China will remain AI super power and companies will thrive in their respective unique ecosystem. 6) Eventually, the most important programming language will be English, and the marginal cost of intelligence will be zero, leading to a significant bigger overall AI led market opportunity than we currently define.

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Private equity is becoming increasingly important part of the M&A landscape in South Korea, and with the recent closings of several new funds, including the Hahn & Company's US$3.4 billion latest fund, private equity's influence will only increase. Meanwhile, rising Korean LP class continue to support the private markets with commitments to private equity, private credit and other private market asset classes focused on the domestic and international, the opportunities will get bigger with more capital to drive the market. Join us for this year's AVCJ Korea Forum to get actionable insights into the sentiments, strategies and thinking of these South Korea's top investors and their peers. AVCJ Korea Forum is scheduled for Sept 6 in Seoul. Details at: https://lnkd.in/g8j-JnAx #ionanalytics #mergermarket #koreanprivateequity, #privateequity, #koreanLPs, #avcj, #avcjforum

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The HKMA is pleased to welcome three new members to the Ensemble Architecture Community (AC) from J.P. Morgan Chase, National Association, R3 and WeBank Technology Services, which will support our efforts to establish interoperability standards for wholesale Central Bank Digital Currencies (CBDCs), tokenised deposits, and tokenised assets. The new members bring a wealth of business and technical expertise in tokenisation and various distributed ledger technology infrastructures. Their contributions will be instrumental in advancing the Ensemble Sandbox. The HKMA is also broadening the scope of its experimentation with fixed income and investment fund tokenisation use cases with four additional participants, including China Construction Bank (Asia), Fubon Bank (Hong Kong) Limited, JETCO and OSL Digital Securities Limited. Each participant offers unique insights from diverse areas of the financial and technology industries. Click here for more information on the new members and Ensemble use cases: https://lnkd.in/gqj6D7Yz #HKMA #ProjectEnsemble #Tokenisation #TokenisingTogetherTodayAndTomorrow

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