first_imgA Hong Kong dollar note is seen in this illustration photo May 31, 2017. REUTERS/Thomas White/Illustration HONG KONG (Reuters Breakingviews) – The boring Hong Kong dollar has been more exciting of late. A couple months after a U.S. hedge fund manager targeted the currency, it is moving sharply. Two giant upcoming stock sales are a major factor, but the recurring phenomenon flags a peculiarity of the system. Since late May, Hong Kong’s dollar has been on a relative tear for a currency that trades in a narrow band against the U.S. dollar, to which it is pegged. It touched its strongest level in two years last week. The three-month Hong Kong Interbank Offered Rate ticked up to 2.7%, outstripping the equivalent U.S. dollar Libor rate of 2.3%. At least some of the buzz can be chalked up to brewer Anheuser-Busch InBev’s Asian business seeking to raise nearly $10 billion in Hong Kong. Alibaba is also eyeing a listing on the local exchange that could pull in another $10 billion. Previous share offerings, including China Literature’s heavily subscribed one in 2017, have caused similar rate bounces. The two mega-deals come during peak dividend season for Hong Kong-listed Chinese companies; they’ll fork out almost $19 billion in July, Morgan Stanley analysts estimate. The upshot is that many of the city’s dollars are being snapped up at once. It’s a reminder of a local oddity. Issuers descend on the city to flog securities denominated in local dollars to investors who also hail from abroad. When combined with Hong Kong’s outsized financial sector – the $4 trillion total market capitalisation is more than 1,000% of local GDP, compared to about 150% for the United States, according to World Bank data – it means an occasional scramble for the money. There’s no obvious immediate threat to the peg. The sharp movements do, however, provide a reminder of Joseph Yam’s warning about how Chinese capitals flows could cause volatility to become more pronounced and even dangerous. The former head of Hong Kong’s de facto central bank said it is “unrealistic” to expect a currency designed for a 7-million-person economy to service the international investing needs of more than a billion people. Being a financial gateway has its rewards, but also some potentially mounting risks.BreakingviewsReuters Breakingviews is the world’s leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time. Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.last_img read more

first_imgPublished on SHARE SHARE EMAIL January 30, 2019 SHARE COMMENTcenter_img Telangana Telangana State has attracted more than $21 billion in investments over the past four-and-a-half years since its formation in 2014. A significant part of the investment, 90-95 per cent, is likely to be put to use on the ground over the next few years.Stating this at a FICCI National Council meeting, Jayesh Ranjan, Principal Secretary, Industries, Telangana, said “a number of new companies and many companies that already operate out of Hyderabad and the state, are seeking to expand.”The investment flow has been made possible due to the state government’s progressive policies and the innovative TS iPass system, which ensures deemed clearance for various industrial applications within 15 days of making an application.Ranjan said the policy provides for punitive measures against officials found responsible for delays in extending clearances to industrial applications. “Though I have not been punished as yet for a delay, at least seven officers have been punished for delays, by way of salary cuts of 2-4 days.”“Having become the No.1 state in Ease of Doing Business within a few years of its formation, we continue to pursue the goals set by Chief Minister K Chandrasekhar Rao, with the single focus of transforming the state into Bangaru Telangana (Golden Telangana),” he said.Talking about clearances for industrial units, Ranjan said industries do not have to secure any clearances for commencement of construction works and all clearances would be provided within 15 days of making the application. In case it has not been provided, it would be deemed to have been cleared, he said.IBM, Welspun, HSIL, Adani, AmazonReferring to a mega facility of Amazon, which is seeking to build 3 million sq.ft., the official said “the project designs were extremely complicated, and yet we managed to clear them within 11 days.”Referring to new and upcoming investments, he said HSIL, which has a significant presence in Telangana, has drawn up plans for another manufacturing unit in the state.The Welspun Group, which had committed investment of about $150 million in a manufacturing unit, is also considering a logistics facility. The diversified Adani Group, which has set up a facility for unmanned aerial vehicles, has indicated its interest in setting up a logistics unit close to the aerospace park.Speaking at the event, a senior IBM official said from one facility with about 2,000 employees, it has grown to over 12,000 employees and several facilities in Hyderabad, and the growth momentum would continue. “IBM employees are engaged in cutting-edge research for global operations,” he said.Responding to IBM’s observations, Ranjan said, “under the state’s skill development initiative, IBM courses were most popular and we expect IBM to add its Watson to the portfolio.” COMMENTSlast_img read more

first_imgThe Supreme Court of India (file photo)   –  RAJEEV BHATT Published on SHARE SHARE EMAIL COMMENT COMMENTS May 06, 2019 Tamil Nadu The Supreme Court, on Monday, stayed the disqualification proceedings against two AIADMK MLAs, who were served notice by the Tamil Nadu Assembly Speaker for allegedly indulging in “anti-party” activities.The notices were served under the anti-defection law.Also read: TN Assembly Speaker issues notice to 3 pro-Dhinakaran AIADMK MLAsA bench of Chief Justice Ranjan Gogoi and Justice Deepka Gupta also issued notices on the plea filed by two AIADMK MLAs V T Kalaiselvan and E Rathinasabapathy. “Notice. Stay of proceedings,” the bench said.Also read: TN Speaker Dhanapal can’t act against AIADMK MLAs, says StalinOn April 30, A Prabhu (Kallakurichi), Kalaiselvan (Vriddhachalam) and E Rathinasabapathy (Aranthangi) were served notices by Assembly Speaker P Dhanapal, seeking an explanation for allegedly siding with Amma Makkal Munnetra Kazhagam (AMMK) leader TTV Dhinakaran.Out of the three MLAs, two lawmakers have approached the Supreme Court challenging the notice served to them. SHARE DMK AIADMKlast_img read more