Off to a good start

By Beansprout • 07 Jan 2023 • 0 min read

China re-opening cheer, decent T-bill yield & higher deposit rates

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Happy new year!

We’re off to a good start in the financial markets, with gains across major indices in the first week of 2023. 

The cut-off yield on the first 6-month T-bill auction of 2023 remained decent at 4.2% p.a., despite falling from the previous auction. 

That’s quite close to the best 1-year fixed deposit rate available today. 

The war on deposits continue, with Stanchart raising the interest rates on its Bonus Saver account to up to 7.88%.

Lastly, we’re reading that some employees of shipping company Taiwanese Evergreen Marine are getting up to 52 months of bonus!  

We hope you’ll take a step closer to improving your financial wellness in 2023! 

Stock Market Update
Source: Bloomberg. Price as of market close on 6 Jan 2023 

🚀 Re-opening cheer 

What happened? 

China announced more measures to support the struggling property sector and showed signs of easing its clampdown on the tech sector. 

What does this mean?

The latest moves were seen a further sign that Chinese authorities are prioritising economic growth. 

This comes after the government relaxed its Covid policies at a faster pace than market expectations. 

In particular, the tech industry might sense some relief after facing strict government regulations in recent years. 

Why should I care? 

These positive developments have helped the Chinese stocks start 2023 with strong gains.

The Hang Seng Index rose by 4.2% for the week, while the Hang Seng Tech Index rose by 7.3%. 

 

 

🚗 MOVING THIS WEEK

  • Tesla (TSLA) delivered 405,278 vehicles in 4Q22, which fell short of the consensus estimate of 431,117 vehicles as it faced weaker demand. The company also reduced prices for its vehicles in China as the market becomes more competitive. 
  • Nio (NIO) delivered 15,815 vehicles in December, representing a record-high monthly delivery. This would bring total deliveries in the fourth quarter to above 40,000, an increase from 31,607 in the previous quarter. 
  • Alibaba’s (BABA) consumer finance unit, Ant Group, has received approval to significantly increase its registered capital, indicating progress in addressing regulatory concerns.
  • Bed Bath & Beyond (BBBY) has released a financial filing indicating that the company is having difficulties attracting customers and increasing sales.

Source: Bloomberg, CNBC, Business Times, Edge Singapore

 

 

💡 THE BIG IMPORTANT STORY

T-bill latest yield at 4.2% p.a. Here's why the yield is slightly lower.

There were more competitive bids and less non-competitive bids in the 6-month T-bill auction on 5 Jan compared to the previous one.

 

🤓 WHAT WE’RE LOOKING OUT FOR THIS WEEK

  • Thursday, 12 Jan: US CPI 
  • Friday, 13 Jan: JPM, Bank of America, Citigroup earnings

Source: Bloomberg, SGX 

 

 

🍭 THAT’S INTERESTING

Bumper year

Evergreen Marine has given its employees much to rejoice with massive year-end bonuses of up to 52 months’ pay. This comes after the Taiwanese shipping company reported strong profits in 2022 with the surge in freight rates. The payout in 2022 would also be the highest of any listed company in Taiwan’s stock market history, according to Taiwan’s Central News Agency. Earlier, South Korean refiner Hyundai Oilbank announced it was ­­­paying out 1000% of base salaries as bonuses.  

Source: Channelnewsasia

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