China moves trade fair online, but few buyers follow

China moves trade fair online, but few buyers follow
For Chinese firms that rely on exports the loss of the twice yearly trade fairs threatens disaster. (AFP)
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Updated 20 June 2020

China moves trade fair online, but few buyers follow

China moves trade fair online, but few buyers follow
  • With most foreign visitors barred from China, the event has transformed itself into an e-commerce platform

BEIJING: Standing in front of shelves laden with colorful backpacks, a saleswoman promoted bags on the Canton Trade Fair’s website without knowing whether anyone was watching as the world’s biggest sales event opened in cyberspace to avoid the coronavirus pandemic.

The twice-a-year fair usually draws more than 180,000 foreign buyers and 60,000 Chinese vendors to the southern city of Guangzhou. But with most foreign visitors barred from China, the event has transformed itself into an e-commerce platform with mini-shopping channels for nearly 8,000 vendors.

The saleswoman for Honeyong Enterprise showed off backpacks for children. Shark fins jutted out of a model for boys. A pink model for girls had lace flaring out from the bottom like a ballerina’s tutu.

“It will look like dancing girls when your little girl wears it,” said the saleswoman, who gave her name as Sophia. “If you want more choices, please contact me right now,” Sophia said, pointing to an instant message link on the screen, “or send me an email.”

The fair, founded in 1957, was for decades Chinese exporters’ main link to foreign buyers. It faces growing competition from companies such as Hong Kong’s Global Sources and China’s Alibaba Group that connect buyers and exporters online. But the fair still is popular with retailers and other customers who want to meet new suppliers and try out products.

Orders at last year’s spring session, which attracted 195,000 buyers, totaled 199.5 billion yuan ($29.6 billion), organizers say. 

BACKGROUND

Tencent and Alibaba are working with trade shows in China and abroad to put events online in hopes of reaching more customers.

This year, it isn’t clear yet how many buyers have followed vendors to the website.

“Not many foreign customers visit us online,” said Honeyong’s sales manager, Clare Wan. “Maybe if they want to check out new products, they still want to see them in person.”

To manage its online bazaar, the Chinese government turned to tech giant Tencent, operator of the WeChat messaging service. The video platform includes technology that produces a three-dimensional digital image of a product that potential buyers can turn around and see from different angles, according to Tencent. Instant messaging and interpretation features are intended to allow customers in other countries to talk directly to sellers.

Tencent and Alibaba are working with trade shows in China and abroad to put events online in hopes of reaching more customers. The coronavirus pandemic “means we have to pioneer the 21st-century trade show,” said John Caplan, Alibaba’s president for North America and Europe.

Still, the Internet is no substitute for meeting vendors in person, said Chris Sillitoe, who owns a sourcing company in Britain that buys tools and other hardware for retailers. Sillitoe has visited every Canton Fair in the last two decades.

“That’s absolutely what it’s all about,” said Sillitoe. “The virtual fair isn’t a replacement for being on the ground in China.”

Honeyong exports 90 percent of its products, said Clare Wan. Honeyong built a studio and spent three months preparing for its online sales debut, she explained.

“We still think this is worth it so long as more people get to know our company and products.” 


Mubadala to invest $100m in a Chinese on-demand trucking startup before IPO

Mubadala to invest $100m in a Chinese on-demand trucking startup before IPO
Updated 3 min 21 sec ago

Mubadala to invest $100m in a Chinese on-demand trucking startup before IPO

Mubadala to invest $100m in a Chinese on-demand trucking startup before IPO
  • Mubadala to take part in private placements before IPO
  • Ontario Teachers’ Pension Plan Board also investing $100 million

NEW YORK: UAE sovereign investment vehicle Mubadala plans to invest $100 million in Full Truck Alliance Co., a Chinese trucking startup that styles itself as “Uber for trucks,” Bloomberg reported.
Full Truck Alliance (FTA) said on Tuesday it is aiming for a valuation of over $20 billion in its US initial public offering, marking another high-profile Chinese stock market listing in New York this year.
This coincides with a private placement in which the Ontario Teachers’ Pension Plan Board and Mubadala will each purchase $100 million worth of Class A ordinary shares, Bloomberg said.
FTA, more popularly referred to as Manbang in China, said it is offering 82.5 million American Depositary Shares (ADS) at between $17 and $19 per ADS. Each ADS represents 20 Class A ordinary shares.
At the top end of the price range, FTA could raise as much as $1.57 billion from the IPO,which would make it the largest US listing for a Chinese company this year, according to data provider Refinitiv. Chinese vaping firm RLX Technology Inc. raised $1.4 billion in its US IPO in January.
Those figures are expected to be dwarfed in the coming weeks when China’s largest ride-hailing company Didi Chuxing launches its IPO, which is expected to be the biggest share sale of the year. Reuters has previously reported that Didi could raise as much as $10 billion from its stock market flotation.
A spate of richly valued Chinese tech startups have targeted IPOs in the US in recent years, as they can tap into the deepest capital pool in the world and avoid tighter regulatory scrutiny in major Asian exchanges like Hong Kong.
Last year, Chinese companies raised $12 billion from US listings, nearly triple the amount raised in 2019, according to Refinitiv data. This year is expected to comfortably surpass last year’s tally.
Chinese companies have so far raised $5.82 billion in the United States this year, according to Refinitiv data.
FTA, formed out of a merger in 2017 between two digital freight platforms, Yunmanman and Huochebang, is led by former Alibaba executive Peter Hui Zhang.
The company runs a mobile app that connects truck drivers to people that need to ship items within China. It was the world’s largest digital-freight platform by gross transaction value last year, according to research from China Insights Consultancy that was commissioned by the company.
In November, FTA was valued at nearly $12 billion after a $1.7 billion investment, Reuters reported. That investment round was led by Japanese conglomerate SoftBank’s Vision Fund, Sequoia Capital, Permira Capital and Fidelity.
China’s tech giant Tencent Holdings Ltd. is also one of the company’s backers.
Morgan Stanley, CICC and Goldman Sachs are among the underwriters for FTA’s offering in New York. The company plans to list on the New York Stock Exchange under the symbol “YMM.”


Saudi Arabia dominates slow MENA IPO market in Q1

Saudi Arabia dominates slow MENA IPO market in Q1
Updated 14 min 9 sec ago

Saudi Arabia dominates slow MENA IPO market in Q1

Saudi Arabia dominates slow MENA IPO market in Q1
  • MENA IPOs lagged the global market in Q1, which was the best first quarter in terms of both deal numbers and proceeds for the 20 years

DUBAI: Saudi Arabian companies accounted for two of the three initial public offerings in the Middle East and North Africa region during the first quarter of 2021, representing 96 percent of the amount raised, according to consultancy EY.
The two listings on the Tadawul in Q1 raised $281.6 million. That compares with $1.45 billion from four listings for the whole of 2020, which represented a 78 percent share of the MENA IPO market, EY said in a report.
Alkhorayef Water & Power Technologies raised $144 million after its retail offering was oversubscribed by 1,511 percent and the institutional offering by 6,320 percent. Theeb Rent a Car Company collected $138 million from its IPO, which was oversubscribed by 6,010 percent for the institutional tranche and 3,385 percent for the retail offering.
MENA IPOs lagged the global market in Q1, which was the best first quarter in terms of both deal numbers and proceeds for the 20 years, generating $105.6 billion from 430 offerings, EY said. MENA IPOs raised $294.8 million, a 64 percent decline from the same period in 2020 and down from $925 million Q4, 2020.
“The MENA region’s IPO market was off to a slower than expected start in 2021, despite expectations for an increase in IPO activity after an uptick and stronger performance in Q4 of 2020,” said Matthew Benson, EY MENA strategy and transactions leader. “We expect IPO activity to bounce back over the coming months while economic conditions in the region continue to improve, aided by the accelerated vaccine rollouts and the possibility of reaching herd immunity against COVID-19.”


Aramco’s entrepreneurship arm launches $27m roadshow to find KSA’s next big startups

Aramco’s entrepreneurship arm launches $27m roadshow to find KSA’s next big startups
Updated 35 min 7 sec ago

Aramco’s entrepreneurship arm launches $27m roadshow to find KSA’s next big startups

Aramco’s entrepreneurship arm launches $27m roadshow to find KSA’s next big startups
  • Wa’ed has up to SR100 million ($27 million) at its disposal to hand out in loans and venture capital investments to commercially feasible ventures

DHAHRAN: Saudi Aramco’s entrepreneurship arm Wa’ed on Wednesday launched its first roadshow event to unearth and fund the next generation of Saudi entrepreneurs.

Wa’ed has up to SR100 million ($27 million) at its disposal to hand out in loans and venture capital investments to commercially feasible ventures that would fill existing gaps in the Kingdom’s economy.

Aiming to support game-changing ideas that will create new jobs, the Wa’ed entrepreneurship roadshow will hold a series of events in six Saudi cities from September to December.

Jubail, Yanbu, Riyadh, Jeddah, Makkah, and Madinah will play host to the tour being organized in association with some of Wa’ed’s key partners, including the Royal Commission for Jubail and Yanbu, Monsha’at, the Saudi General Authority for Small and Medium Enterprises, development firm Namaa Almunawara, and investment company Wadi Makkah.

“These shows are a coordinated effort with our partners to find and fund new entrepreneurs who will add value to the Saudi entrepreneurial ecosystem and accelerate the pace of economic diversification in the Kingdom,” said Wassim Basrawi, Wa’ed managing director.

Wa’ed’s aim is to seek bold ideas with potential to positively contribute to the development and diversification of the Saudi economy.

“Seventy out of over 100 startups we supported were the first of their kind and received their first-ever investment from us, and this is what we are targeting now; distinguished and not yet supported startups and ideas,” Basrawi added.

Online applications for all Saudi-based entrepreneurs were due to open on Wednesday. After two selection rounds, successful applicants will be invited to participate in the roadshows in their cities, where events will include startup pitch competitions in the style of TV’s “Shark Tank,” and industry discussions and debate.

The tour will focus on sectors such as financial, agricultural, and environmental technology, industrial applications, reverse engineering, drones, petrochemicals, supply chain, and tourism.

In addition to Wa’ed’s incubation and mentoring services, participants will either earn fast-track funding, including loans for up to SR5 million or venture capital investments with up to SR19 million, and non-refundable grants of SR25,000, SR50,000, and SR75,000.

Amin Nasser, chief executive officer of Aramco, said: “Wa’ed has come a long way since 2011 to support talented Saudis to help them turn their business ideas into real drivers for growth and innovation.

“But the next 10 years will be even more crucial for our entrepreneurial ecosystem as the pace of transformation in-Kingdom accelerates with opportunities emerging in new business growth sectors such as technology, e-commerce, and renewable energy.

“That’s why the roadshows by Wa’ed in six cities across the Kingdom are important to make the most of these opportunities to nurture and enable a more vibrant entrepreneurial culture in Saudi Arabia.”

All those taking part in the roadshow will be able to join and benefit from Wa’ed’s Innovation Ecosystem Society which has more than 1,500 local and international members and around 400 mentors.

Enrichment events and meetings with inspirational speakers, as well as interview-based podcasts, workshops, and webinars will start ahead of the competition and will continue until the end of the program in order to provide value to as many potential beneficiaries from the initiative as possible.

Through the scheme, Wa’ed intends to expand its portfolio more evenly throughout the country. Currently, around 60 percent of its investments are in the Eastern Province, with the remainder distributed around the Kingdom.

Wa’ed has also set a goal to double its annual loan and venture capital deal volume by 2023 in a bid to support the Kingdom’s entrepreneurial ecosystem and keep up with the pace of transformation and emerging opportunities in crucial sectors including technology, e-commerce, and renewable energy.

Wa’ed currently supports more than 100 entrepreneurial businesses in Saudi Arabia by providing the necessary financial support, guidance, and tools for entrepreneurs with creative ideas and startups.

Saudi Aramco’s entrepreneurship center was established in 2011 with a mission to nurture Saudi entrepreneurs and their businesses to strive and help develop the Saudi economy. Since its inception, Wa’ed has invested more than $100 million.

It is the only no-collateral lender and largest institutional venture capital investor in Saudi-based startups.


Indonesia lists three Islamic bonds worth $3bn on Nasdaq Dubai

Indonesia lists three Islamic bonds worth $3bn on Nasdaq Dubai
Updated 16 June 2021

Indonesia lists three Islamic bonds worth $3bn on Nasdaq Dubai

Indonesia lists three Islamic bonds worth $3bn on Nasdaq Dubai
  • The new listings bring Indonesia’s total value of listed sukuk to $19.75 billion

DUBAI: Three sukuk tranches, amounting to $3 billion, have been listed on Nasdaq Dubai by the Indonesian government.
The new listings bring Indonesia’s total value of listed sukuk to $19.75 billion, the Dubai Media Office reported.
“This mounting presence of international issuers clearly underscores Dubai’s active role in promoting Islamic economy, shariah-compliant financial markets as well as supporting sustainable economic development across the world,” Hamed Ali, CEO of Nasdaq Dubai, said.
The three sukuk tranches include one of $1.25 billion yielding 1.5 percent on a five-year maturity; a $1 billion bond with a coupon of 2.55 percent yield and 10 years maturity; and a $750 million green sukuk yielding 3.55 percent yield over 30 years.
Many central banks and sovereign wealth funds in Southeast Asia and the Middle East have expressed strong interest in the paper, with a combined order book exceeding $10.3 billion.


Saudi Electricity approves Apple Pay for settling bills

Saudi Electricity approves Apple Pay for settling bills
Updated 16 June 2021

Saudi Electricity approves Apple Pay for settling bills

Saudi Electricity approves Apple Pay for settling bills

RIYADH: The Saudi Electricity Company has made it possible for its subscribers to pay their electricity bills through Apple Pay, SPA reported.

The Kingdom’s electricity provider already offers payment through credit and debit cards through its website, through a bank account, by phone, certified bank check and through point-of-sale locations.

Apple Pay launched in Saudi Arabia in February 2019.