Let’s take a look at some of the key investment news in trending this week!
1) Yet Another Chinese Firm Defaults On Its Dollar Bond!
Not long after Baoding Tianwei Group Co.’s default of its US$13.8 million coupon, another Chinese coal importer Winsway Enterprises Holdings Ltd became the nation’s second casualty.
The Hong Kong listed Winsway Enterprises was not able to pay its $13.2 million semi-annual coupon on $309.3 million of notes that mature next year. From the report it was stated that this had a high correlation to the slump on coal prices over the last few years and according to the analyst in the report, this might be a sign of more things to come! Especially for those companies that might not have a sufficient cash buffer to tide them over this challenging period. However this painful process in the short term might actually lead to a more robust system in the future.
2) The High Speed Rail Linking Singapore And Kuala Lumpur Will Be Located At Jurong
On May 5, the Prime Ministers of both Singapore and Malaysia announced that the terminus for the 350km long Thigh speed rail linking Singapore and Kuala Lumpur will be located at Jurong East.
Completion of this terminus will greatly boost traffic in the Jurong area. That was why it was no surprise that some of the big property players in Singapore are already making their mark in this area! Some notable mentions include CapitaLand Ltd’s Jcube, Genting Singapore PLC’s newly opened 557 room hotel and also Hongkong Land Holdings Ltd’s construction of a condominium right next to Westgate!
However, in the face of all this good news, we have to note that operations of the high speed rail might only commence after 2020 or maybe even later!
3) Uber Technologies Inc Said To Seek $1.5 Billions In Fund
With this round of financing, Uber Technologies would have an implied valuation of a whooping $50 billion (Yes that’s with a B, 9 zeros behind). That’s larger than the market capitalization of SGX listed conglomerate of Jardine Strategic Holdings Limited with a market capitalization of S$40 billion!
What Uber does in a nutshell is to directly link the driver to the passenger. It utilizes a mobile based application (Or app for short) for passengers to crowd source drivers. However it is not all smooth sailing with push back from governments and taxi companies with the argument that the use of unlicensed, crowd-sourced drivers was unsafe and illegal.
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