China In-Focus — Shimao misses repayment on $1bn bond; Tesla Q2 deliveries fall

Tesla Inc. delivered 17.9 percent fewer electric vehicles in the second quarter from the previous quarter, as China’s COVID 19-related shutdown disrupted its production and supply chain.
Tesla Inc. delivered 17.9 percent fewer electric vehicles in the second quarter from the previous quarter, as China’s COVID 19-related shutdown disrupted its production and supply chain.
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Updated 03 July 2022

China In-Focus — Shimao misses repayment on $1bn bond; Tesla Q2 deliveries fall

China In-Focus — Shimao misses repayment on $1bn bond; Tesla Q2 deliveries fall

BEIJING: Chinese developer Shimao Group has missed the interest and principal payment of a $1 billion offshore bond due on Sunday in the latest blow to China’s embattled property market.

Shimao was unable to pay a total of $1.023 billion in principal and interest to creditors of a senior note listed on the Singapore Exchange, the developer said in a Sunday filing on the Hong Kong bourse, citing “market uncertainties over debt refinancing” and “challenging operating and funding conditions.”

With a coupon rate of 4.75 percent, the bond matured on July 3 this year.

The developer has not received notice of acceleration of repayment from its lenders, it said, suggesting the debt holders have not moved to take enforcement actions.

Shimao hired Admiralty Harbor Capital as its financial adviser and Sidley Austin its legal adviser to help assess and explore ways to manage the liquidity crisis.

Meanwhile, creditors of its two syndicated loans have agreed to give the cash-strapped Chinese developer a breather.

Shimao said it has received written notice of support from the majority of the lenders of two syndicated loans agreed upon in 2018 and 2019, in which HSBC acted as the lead facilitator for dual currency loans.

Tesla Q2 deliveries fall on China’s COVID-related shutdown

Tesla Inc. delivered 17.9 percent fewer electric vehicles in the second quarter from the previous quarter, as China’s COVID 19-related shutdown disrupted its production and supply chain.

The world’s biggest electric car maker said on Saturday that it delivered 254,695 vehicles in the April to June period, compared with 310,048 vehicles in the preceding quarter, ending a nearly two-year-long run of record quarterly deliveries.

A resurgence in COVID-19 cases in China had forced Tesla to temporarily suspend production at its Shanghai factory and also affected suppliers’ facilities in the country.

Tesla is ramping up production at the Shanghai factory with the easing of the COVID-19 lockdown, which will help boost deliveries in the second half.

Early in June, Tesla CEO Elon Musk told executives that he had a “super bad feeling” about the economy and needed to cut about 10 percent of staff at the electric car maker.

China loosening entry restrictions for US citizens

China will loosen entry restrictions on US citizens, allowing entrance in case of transit via a third country, notices issued late on Friday by the Chinese Embassy in Washington said, relaxing rules imposed in Beijing’s drive to curb COVID-19.

According to an updated policy statement, US citizens with valid negative COVID test results looking to enter China may now apply for and receive a green health code for travel in from either the US or a third country. In the past, the embassy would only grant the codes to US citizens flying directly from the US.

China has loosened the same restrictions recently for citizens of other countries.

The restrictions, coupled with a limited number of direct flights from the US to China, caused ticket prices to cost as much as $10,000.

The changes follow a similar slight relaxation of COVID-19 testing rules for people arriving in China from countries including the US announced on May 18.

 

(With input from Reuters) 

 

 

 


China’s Huawei set to finalize data center location in Saudi Arabia 

China’s Huawei set to finalize data center location in Saudi Arabia 
Updated 12 sec ago

China’s Huawei set to finalize data center location in Saudi Arabia 

China’s Huawei set to finalize data center location in Saudi Arabia 

RIYADH: China’s tech giant Huawei is soon to decide the location of its data center in Saudi Arabia, president of Huawei Cloud Middle East told Gulf News. 

The data center in Saudi Arabia will be Huawei’s second in the Middle East, following Abu Dhabi.

“We are in the final stages of the Saudi decision — the investment decision has already been made,” Frank Dai explained. “All that’s left is where in Riyadh should the facility be built.”

He added: “The Middle East remains central to our vision of how digital transformation can reshape economies, even change the world. This is only the beginning of what data-driven economies can achieve.”


Wizz Air to resume flights from UAE to Russia in October

Wizz Air to resume flights from UAE to Russia in October
Updated 24 min 56 sec ago

Wizz Air to resume flights from UAE to Russia in October

Wizz Air to resume flights from UAE to Russia in October

DUBAI: European budget airline Wizz Air will resume flights from Abu Dhabi to Moscow from October, it said on Thursday, more than five months after the carrier suspended all services to Russia following Moscow’s invasion of Ukraine in February.

The airline’s Abu Dhabi-based joint venture, Wizz Air Abu Dhabi, will operate the daily flight from Oct. 3, with fares starting from 359 dirham ($97.74), it said in a statement.

Wizz Air, which in October 2021 announced the Abu Dhabi to Moscow flights would start in December that year, said on Feb. 27 it had suspended all flights to Russia.

Other Emirati carriers, including Emirates, have continued to operate services to Russia following the invasion of Ukraine.

Wizz Air Abu Dhabi is a joint venture between Abu Dhabi sovereign wealth fund ADQ and the European airline. It is based in Abu Dhabi and is a UAE registered carrier.


Public private partnerships to be encouraged in key Saudi region by new company

Public private partnerships to be encouraged in key Saudi region by new company
Updated 50 min 28 sec ago

Public private partnerships to be encouraged in key Saudi region by new company

Public private partnerships to be encouraged in key Saudi region by new company

RIYADH: Private businesses will be encouraged to work closely with the public sector on projects in Saudi Arabia’s Qassim region thanks to the creation of a new specialist organization.

The Qassim Region Municipality Company was given the go-ahead to form and create a board of directors by the Ministry of Municipal and Rural Affairs and Housing.

The company aims to enhance investment activity in the municipal sector in the Qassim region and to establish development projects in partnership with the private sector.


UAE sees financial surplus boom during first quarter

UAE sees financial surplus boom during first quarter
Updated 08 August 2022

UAE sees financial surplus boom during first quarter

UAE sees financial surplus boom during first quarter

RIYADH: The UAE’s net financial surplus increased by 129 percent during the first quarter of this year, according to data from the UAE Ministry of Finance.

The surplus during the first three months of 2022 amounted to 36.4 billion dirhams ($10.1 billion), compared to 15.9 billion dirhams in the same period last year.

Revenues during the first quarter also increased by 39 percent to 123.77 billion dirhams, Asharq reported, while expenses increased by 16.9 percent to reach 87.41 billion dirhams.


KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition

KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition
Updated 08 August 2022

KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition

KAPSARC participates in IAEE Tokyo event, invites delegations to Riyadh edition
  • The KAPSARC experts spoke at three key plenary and 11 concurrent sessions to share their insights on current global energy and environmental concerns

TOKYO: A delegation from Saudi Arabia’s energy economics and sustainability think tank, the King Abdullah Petroleum Studies and Research Center, participated in the 43rd International Association for Energy Economics conference in Tokyo last week.

Titled “Mapping the Energy Future, Voyage in Uncharted Territory,” the conference ran from July 31 to Aug. 4, with over 600 attendees.

The KAPSARC experts spoke at three key plenary and 11 concurrent sessions to share their insights on current global energy and environmental concerns, and how to find solutions to help shape future energy policies and encourage climate action.

KAPSARC’s talks and presentations also included the future role of fossil fuels, decarbonization risks and opportunities, renewables, energy economics, electricity markets, transportation and oil market stabilization.

During the plenary session “Climate Change and Decarbonization Challenges: Risks and Opportunities,” KAPSARC Research Fellow Dr. Noura Mansouri said: “Today, we have the opportunity of decarbonization represented in the Circular Carbon Economy, which is a new framework that values all options and encourages all efforts to reduce carbon accumulation in the atmosphere.”

KAPSARC oil and gas market expert, Hamid Al-Sadoon, explained that more investment in the hydrocarbon industry is needed to bridge the potential future gap between energy supply and demand.

“In all likelihood, hydrocarbons are here to stay. Simply because the developing world not only represents a large chunk of the demand, but they also need hydrocarbons to raise the standards of living of their citizens and develop their economies­ — that entails using more fossil fuels to reach parity with advanced nations,” he said.

Tatsuya Terazawa, chairman and CEO of Japanese think tank the Institute of Energy Economics Japan, added: “We need to face the energy challenges to better cope with high energy prices and enhance energy security while at the same time realize our long-term goals of carbon neutrality and develop the necessary supply chains for energy sustainability.” 

KAPSARC President Fahad Alajlan also spoke at the closing plenary.

“The contrast between the discussions we had over the past few days and the discussions we had during COP 26 is stark,” he said. “COP 26 discussions had a prescriptive view on what we all need to do to achieve net zero by 2050 without taking into consideration the more complex nature of nations worldwide. 

“Over the past few days, we have together adopted a more nuanced approach towards collective climate solutions that are holistic and inclusive,” he added.

During his closing remarks, Alajlan invited participants to attend the 44th Annual International IAEE event in Riyadh, which is being organized by KAPSARC and the Saudi Association for Energy Economics and being held on Feb. 4-8, 2023. It will be the first time the IAEE has hosted its annual conference in the Middle East.

KAPSARC has waived conference registration fees for all attendees.