Kieran Calder, CFA

China International Capital Corp (CICC) and China Galaxy Securities Co. (CGS) are planning to launch funds with a total value in excess of US$1 billion in South East Asia. The aim is to secure a share of this lucrative market amid a US tariff war.These PE funds will target high-growth sectors such as healthcare, AI, advanced manufacturing, renewable energy and consumer, offering investors exposure to emerging opportunities across both China and South-east Asia.There have been rumours about the merger of these two Chinese investment banks for a long time, but does this consistent action overseas foreshadow the future integration?#China #overseas #investmentbanks #funds #launching

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📢 𝗝𝗮𝗽𝗮𝗻 𝗖𝗿𝘆𝗽𝘁𝗼 𝗧𝗮𝘅 𝗥𝗲𝗳𝗼𝗿𝗺 𝗣𝗿𝗼𝗽𝗼𝘀𝗲𝗱 𝗯𝘆 𝗜𝗻𝗱𝘂𝘀𝘁𝗿𝘆 𝗚𝗿𝗼𝘂𝗽𝘀!💰 On July 30, Nikkei Newspapers reported that two major crypto industry groups in Japan — the Japan Virtual and Crypto Assets Exchange Association (𝗝𝗩𝗖𝗘𝗔) and the Japan Cryptoasset Business Association (𝗝𝗖𝗕𝗔) — have submitted a 𝙟𝙤𝙞𝙣𝙩 𝙩𝙖𝙭 𝙧𝙚𝙛𝙤𝙧𝙢 𝙧𝙚𝙦𝙪𝙚𝙨𝙩 to Japan’s Financial Services Agency. 🎯 𝗞𝗲𝘆 𝗣𝗿𝗼𝗽𝗼𝘀𝗮𝗹: Apply a 𝙛𝙡𝙖𝙩 𝟮𝟬% 𝙨𝙚𝙥𝙖𝙧𝙖𝙩𝙚 𝙩𝙖𝙭𝙖𝙩𝙞𝙤𝙣 (申告分離課税) to 𝙞𝙣𝙘𝙤𝙢𝙚 𝙛𝙧𝙤𝙢 𝙘𝙧𝙮𝙥𝙩𝙤 𝙩𝙧𝙖𝙣𝙨𝙖𝙘𝙩𝙞𝙤𝙣𝙨, regardless of the type of crypto asset, wallet, or whether it’s spot or derivative trading. 📊 Currently, crypto capital gains are taxed as 𝙜𝙚𝙣𝙚𝙧𝙖𝙡 𝙩𝙖𝙭𝙖𝙩𝙞𝙤𝙣 𝙞𝙣𝙘𝙤𝙢𝙚 (総合課税) — with 𝙅𝙖𝙥𝙖𝙣 𝙩𝙖𝙭 𝙧𝙖𝙩𝙚𝙨 𝙖𝙨 𝙝𝙞𝙜𝙝 𝙖𝙨 𝟱𝟱% — significantly higher than other nations according to Nikkei: 🔹 US: max 37.1% 🔹 France: 30% 🔹 South Korea: 20% 🏦 The Japan Blockchain Association (𝗝𝗕𝗔) also submitted a similar request. According to their April survey: ✔️ 𝟴𝟬% of respondents said 𝙩𝙝𝙚𝙮 𝙬𝙤𝙪𝙡𝙙 𝙞𝙣𝙫𝙚𝙨𝙩 𝙢𝙤𝙧𝙚 if the tax rate dropped to 20%. ✔️ 𝟴% cited "𝙝𝙞𝙜𝙝 𝙩𝙖𝙭𝙚𝙨" as the 𝙧𝙚𝙖𝙨𝙤𝙣 𝙛𝙤𝙧 𝙣𝙤𝙩 𝙞𝙣𝙫𝙚𝙨𝙩𝙞𝙣𝙜 in crypto. 🧠 𝗜𝗻𝘀𝗶𝗴𝗵𝘁: Aligning Japan’s crypto taxation with financial products like stocks could promote growth and attract more investors. Will the government act? 💬 𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝘁𝗵𝗼𝘂𝗴𝗵𝘁𝘀: Would a 20% flat tax rate encourage you or your clients to invest? For more insights on the 𝙅𝙖𝙥𝙖𝙣 𝙩𝙖𝙭 𝙩𝙧𝙚𝙖𝙩𝙢𝙚𝙣𝙩𝙨 𝙤𝙣 𝙘𝙧𝙮𝙥𝙩𝙤𝙘𝙪𝙧𝙧𝙚𝙣𝙘𝙮, check out my past LinkedIn post: https://bit.ly/3TEsJLV #OnePointJPtax #CryptoTax #JapanTax #Blockchain #CryptoInvesting #JVCEA #JCBA #JBA #Web3Japan #GlobalMobility #ExpatriateTax

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Foreign investors are buying Japanese equities like never before (at least in the data set I have available, covering the last ~20 years). This has been the key driver of the near 30% rebound in the TOPIX index from its April lows. Since April, global investors have been net purchasers of Japanese stocks for 14 straight weeks, amounting to 6trn yen / US$40bn. While large amounts of foreign buying have occurred at various times in the dataset, never before has it happened with this consistency week by week. Interestingly, the buying streak extends to 16 weeks if we exclude futures and focus only on cash equities. This could indicate that real longer-term money is coming into the market rather than just traders positioning. In addition to foreigners, the other major category of buyer is the corporations themselves, with Japan experiencing a surge in share buybacks as companies reform their capital allocation policies. Sellers include insurance firms being forced to sell down cross-shareholdings (and potentially also some portfolio rebalancing), domestic mutual funds (included in the sheet under the "Trust Banks" label), and retail investors. What you will note from the table below is the often counter-cyclical buying and selling of Japanese retail investors, and the mutual funds they invest in. Foreign buying tends to drive the market upward, leading to domestic selling - or another way to look at it, for global investors to buy, someone has to sell, and that someone has to be the domestic investors if non-Japanese are net purchasers. Have you been buying Japanese stocks, and if so / if not, why / why not? Please share in the comments.

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