Weekly Market Update - 4 September 2023

Landmark Victory

Grayscale Investments has won a key legal fight in its push to launch a Bitcoin exchange-traded fund, bringing the crypto industry to the precipice of tapping billions of dollars from everyday investors. The firm’s court victory over the US Securities and Exchange Commission is a watershed moment for the largest cryptocurrency. Advocates say an ETF based on spot Bitcoin prices would result in a gush of retail cash.

Source: Bloomberg

Record Loss

Chinese developer Country Garden warned that it may default on its debt and raised concerns about staying in business after posting a record first-half loss of almost $7 billion. The company said in a filing that if its financial performance continues to deteriorate, the group might not be able to meet debt obligations. Once the country’s biggest developer by sales, Country Garden is in a debt spiral that may be worse than rival Evergrande’s, because it has four times as many property projects. China’s property slump has been worsening, with new home sales falling the most in a year in July. The government earlier unveiled a further easing of its mortgage policies in an effort to halt the housing slowdown.

Source: Bloomberg

G-20

Chinese President Xi Jinping is planning to skip next week’s G-20 summit in New Delhi — a snub that’s likely to aggravate strains with India. Chinese Premier Li Qiang will attend in his place. Tensions between the Asian giants already threaten to prevent G-20 leaders from issuing a joint communique for the first time since the forum was created in 1999, according to sources. It would be the first time Xi has skipped a G-20 summit since taking power, raising more questions about China’s global clout as its economy slows.

Source: Bloomberg