MONEY MASTER

China’s major internet finance platforms are cautiously resuming their consumer lending businesses, signaling a potential shift in Beijing’s stance after years of regulatory clampdowns that began with the halted Ant Group IPO in 2020. According to industry insiders, platforms such as  Ant Group ,  Tencent’s WeBank , and  Meituan  view Beijing’s new  consumer loan interest subsidies —introduced in August to spur domestic consumption—as a green light to expand cautiously. The move marks a turning point after regulators previously forced these fintech giants to restructure and comply with stricter capital and data-use requirements. “The regulatory landscape has become more accommodative,” said one industry source. “The economy now needs large internet finance platforms.” Regulatory Winds Shift The fintech sector appears to be entering what UBS describes as a phase of  “normalized regulatory oversight.”  UBS projects lending via online platforms to grow...

Chinese tech stocks have surged over the past few weeks following the announcement of a stimulus spree by the Chinese government, with the Hang Seng Tech Index rising more than 45% in less than four weeks . Notably, this rally appears to be fueled by fresh buying rather than short covering , according to S3 Partners and JPMorgan Chase & Co. . Major companies such as Alibaba Group Holding Ltd. , JD.com Inc. , and Baidu Inc. have seen their American Depositary Receipts (ADRs) rally, but short positions on these stocks have remained stable . Short interest for these companies has hovered around 2% to 3% of available shares , according to Ihor Dusaniwsky , managing director of predictive analytics at S3. This lack of aggressive short covering indicates that bearish bets have not been significantly closed despite the strong rally. Fund managers, such as Han Piow Liew from Maitri Asset Management , noted that the magnitude of the recent bounce usually forces shorts to cover their...

  Alibaba Group Holding Ltd , JD.com Inc , and Meituan saw their best trading days in years following the Chinese government’s announcement of wide-ranging stimulus measures aimed at boosting the struggling domestic economy. Meituan and JD.com surged over 20% in Hong Kong trading on Thursday and Friday, marking their best two-day performance since 2022, while Alibaba rose as much as 15% . The stimulus package includes support for the property sector , cash handouts for residents in hardship, and increased social security benefits for unemployed graduates. These measures helped ease concerns over China’s debt-ridden property market and high youth unemployment , which in turn bolstered consumer tech firms . Cash-rich companies like Alibaba, based in Hangzhou, are leading share repurchases this year, boosting investor confidence. Alibaba’s shareholder yield at the start of this month was over 8% , more than double that of any company in the Magnificent Seven in the US. Th...

Meituan , China's leading delivery platform, successfully raised US$2.5 billion through a two-tranche dollar bond deal , according to regulatory filings released on Wednesday. This marks the first offshore debt issuance by a Chinese technology company in 2024. The deal included a 3.5-year bond raising US$1.2 billion and a five-year bond raising US$1.3 billion . The final amount exceeded Meituan’s initial plan of US$2 billion due to strong investor demand. The 3.5-year bond was priced at three-year Treasuries plus 115 basis points , while the five-year bond was set at five-year Treasuries plus 125 basis points . This pricing came in tighter than the initial guidance given to investors, which had indicated spreads of 145 basis points and 160 basis points over Treasuries, respectively. Meituan, known for its wide range of app-based services such as bike-sharing , ticket-booking , and maps , has positioned itself as a key player in China's tech sector. This bond deal is si...