The Bank of Russia unexpectedly maintained its key interest rate at a record-high 21% , defying analysts’ expectations of another significant hike as inflation remains stubbornly elevated. The decision marks a shift toward a more measured approach in balancing economic growth and price stability. Key Details Inflation Concerns: Annual inflation climbed to 8.9% in November, well above the central bank’s 4% target , with inflation expectations reaching 13.9% in December. Policy Rationale: The central bank cited the significant tightening of monetary conditions after October’s 200-basis point hike as sufficient to resume disinflationary processes. Governor Elvira Nabiullina emphasized avoiding both economic overheating and severe slowdowns. Economic Overheating: Elevated government spending on the war in Ukraine and social programs, coupled with labor shortages and rising wages, have fueled strong domestic demand, exacerbating price pressures...
Alibaba Group Holding Ltd.’s majority stake in Sun Art Retail Group Ltd, a leading Chinese hypermarket chain, is drawing interest from private equity (PE) firms, according to sources familiar with the matter. Potential buyers, including DCP Capital and Hillhouse Investment, are reportedly considering purchasing part or all of Alibaba’s 79% stake in Sun Art.
The shares of Sun Art have surged by 28% this year, giving the company a market value of approximately US$2.2 billion. The stock was temporarily suspended from trading in Hong Kong on Friday, pending an announcement related to the takeovers and mergers code. In addition to DCP and Hillhouse, Alibaba’s stake may also attract interest from other international buyout funds.
These discussions are still in the preliminary stages, and it is not guaranteed that a deal will materialize. While DCP and Sun Art declined to comment, spokespeople for Alibaba and Hillhouse have yet to respond to inquiries.
Alibaba acquired its controlling stake in Sun Art in 2020 for US$3.6 billion. Sun Art operates hundreds of hypermarkets across China under brands like RT-Mart and supports Alibaba’s expansion in fresh produce through its distribution and storage networks. However, Alibaba, under the leadership of CEO Eddie Wu, has been refocusing on its core business in e-commerce and cloud services, with reports earlier this year suggesting the company is also considering selling its InTime department store arm.
Recent market conditions, buoyed by China's economic recovery, have led several top shareholders in Chinese companies to cash out of their holdings, further boosting interest in deals like this. Hong Kong’s Hang Seng Index has climbed 21% this year, reflecting the improving market outlook.
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