Weekly Market Update - 21 May 2023
Alibaba Breakup
Alibaba will explore initial public offerings for its logistics and grocery arms while hiving off its $12 billion cloud business, kicking off the first phase of a much-anticipated breakup to try to revive anemic revenue growth. CEO Daniel Zhang outlined the contours of the historic shakeup after the e-commerce giant posted its third consecutive quarter of single-digit revenue growth, reinforcing concerns that a Chinese consumer spending rebound may be farther out than anticipated.
Source: Bloomberg
Russian Sanctions
G-7 nations will increase pressure on Russia with additional sanctions as well as restrictions on goods it uses on the battlefield, according to a senior Biden administration official. The administration will cut off about 70 entities from Russia and other countries receiving US exports by adding them to a Commerce Department export blacklist. The group will also work together to track Russian diamonds — potentially paving the way for an import ban in the future.
Source: Bloomberg
Australian Property Boom
Chinese buyers are once again snapping up property in Australia, further fueling resurgent prices in everything from luxury homes to tiny student apartments. And real estate agents who work with Chinese buyers predict numbers will surge this year. Australia is the No.1 destination for Chinese buyers of offshore property, with demand strongest for three- and four-bedroom houses, according to Sydney-based Plus Agency. Rising rents and limited supply are driving property markets from Sydney to Perth and a return of big-spending foreign buyers will add to pressure on prices.
Source: Bloomberg