Monday morning links

Xi Jinping said that China will go on a charm offensive and try to portray a more positive picture of itself to the outside world.

Liu He and US Treasury Secretary Janet Yellen agreed that US-China relations “are very important”.

The Biden administration issued a new executive order banning US investment in Chinese military-linked companies, replacing Trump’s November 2020 Executive Order 13959. The government moved the authority of the investment ban from the Department of Defense to the Treasury Department. The list of companies is similar to the previous one with just a few exceptions. The ban on new investments will go into effect on 2 August 2021.

Parts of China’s Guangdong province went into lockdown as the delta variant of COVID-19 continues to spread.

The US scrapped a limit on how far South Korean missiles can fly, causing a wave of investor optimism about Korean missile manufacturers.

Athletes are arriving in Japan ahead of the Tokyo Olympics in July, and public opinion is turning more positive about the event.

The central bank of the Philippines said it is considering further monetary easing to support the economy.

Singapore’s new unlinked cases reached zero on Saturday for the first time since 10 May, suggesting that the outbreak is now under control.


Asian stock ideas

  • Value Investing Substack with a forensic analysis of Malaysian oil services company Serba Dinamik which has been accused of “financial inconsistencies” but also experiencing insider buying (KLSE:SERBADK — US$625 million)

  • Dumile Capital blog on a hidden Indonesian asset in Japanese tech company Beenos (TSE:3328 — US$400 million)

  • Net Interest Substack wrote a piece on Indian payment company Paytm (BSE:N/A — N/A), which is planning an IPO later this year


Long-form writing


Podcasts and videos


Chart of the week – Return on equity in a downtrend trend in China across both SOEs & the private sector


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