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We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.
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Hong Kong Stock Exchange Is Looking for More 🏦
Given Hong Kong’s reputation as a global financial center, the Hong Kong Stock Exchange is one of the world’s most important stock exchanges. In terms of total IPO fundraising size, Hong Kong has been world’s biggest stock exchange six out of the last ten years, capitalising on China’s growth. For mainland Chinese companies, listing on the Hong Kong Stock Exchange is an attractive, obvious option.
This KrAsia interview with Christina Bao, Head of Global Issuer Services at HKEX (Hong Kong Exchanges and Clearing Limited), highlights some of the hot topics being discussed regarding the role of the Hong Kong Stock Exchange. Because of US-China political tension, many Chinese companies are choosing to delist from the US and instead list in Hong Kong. On top of that, HKEX is making major marketing efforts to attract Southeast Asian companies to list in Hong Kong. The next generation of Southeast Asian tech companies will be an attractive target for all stock exchanges around the world, and the Hong Kong Stock Exchange might have the best chance of being the home of their new listings.
Luxury Consumption in Post-Covid Southeast Asia 💅
Many Southeast Asian countries continue to suffer from the coronavirus, but there’s a surprising new trend around the demand for luxury goods in this region. A recent study by iPrice Group has recorded significant increases in the amount of Google Searches across Southeast Asia for luxury brands like Chanel and Louis Vuitton. Increases in search volume have also been recorded for luxury watches like Rolex and sportswear brands like Adidas/Yeezy. This study doesn’t explain why, but that leaves us with some interesting hypotheses.
Are people searching for more luxury goods to take advantage of Covid-related sales and discounts? Are people searching because more overall commerce is happening online? Another concept people are describing is “revenge spending,” when people decide to spend even more money after a significant period of deprived demand because of the coronavirus. Considering the current boom in sales in China as the economy reopens, you can definitely see examples of revenge spending. Whatever the reason behind these increases in luxury search volume in Southeast Asia, this makes it even more important for your brand to have a high-quality online presence. Your ‘virtual’ storefront might matter more than your physical storefront.
Alibaba Clamps Down on Fake University Admission Letters 🎓
Before getting shut down by Alibaba’s security team, merchants on Alibaba’s online marketplace Taobao were selling faked university admission letters for as low as $28. The results of the Gaokao, China’s national college admission exam, were released recently—essentially deciding where millions of high school students around the country would be attending university. There was a high profile case in local news describing a high school student who got caught with a fake admissions letter to prestigious Tsinghua University.
Taobao is huge, with 874 Million monthly active users. On such a big marketplace, you can expect that there will be a certain percentage of fake, counterfeit, or illegal goods. There is an entire category of ‘informal services’ people can trade on the platform, and these fake university degrees are just one example out of many. With new demand for new industries resulting from the coronavirus, I’m sure there will be many new hustles people will sell as an informal service on Taobao. Overall, Alibaba is still thriving despite the coronavirus, with increased revenue and user engagement.
Update #55 - Hong Kong Stock Exchange, SEA Luxury, and Fake Universities