Hong Kong and Asean have agreed to expand bilateral trade under their free-trade and investment agreements, the Thai Commerce Ministry revealed on Tuesday.
The two agreements are crucial to the region’s economic recovery after the pandemic, said Commerce Vice Minister Sansern Samalapa, who headed the Thai delegation at last week’s 5th Asean-Hong Kong Economic Ministers’ Meeting.
All sides agreed to add five more branches of economic and academic cooperation to the Asean-Hong Kong, China Free Trade Area (AHKFTA) Agreement and the Asean-Hong Kong Investment Agreement (AHKIA).
The five branches are sanitary and phytosanitary measures; standards, technical regulations and conformance assessment processes; intellectual property; digital technology for trade facilitation; and investment promotion.
The meeting also agreed to accelerate talks on the next negotiating plan, which covers product-specific rules under the AHKFTA, and investment clauses.
Hong Kong has already exempted import duties on all Asean products under the two agreements, which came into effect in February. It has also opened up its content production services to Thai radio and television operators.
Meanwhile, the territory has pledged 5 million Hong Kong dollars (21.4 million baht) to develop potential of Asean member countries.
Hong Kong is Thailand’s 8th largest trading partner. Trade between the two territories in the first seven months this year (January-July), totalled $8.418 billion (281 billion baht), up 10.35 per cent from the same period in 2020.
The Stock Exchange of Thailand (SET) Index closed at 1,614.86 on Tuesday, up 11.80 points or 0.74 per cent. Transactions totalled THB83.91 billion with an index high of 1,618.19 and a low of 1,591.81.
The index bounced back after a sharp fall of 22.59 points or 1.39 per cent on Monday.
The 10 stocks with the highest trade value today were DELTA, SCB, PTT, KBANK, AOT, KCE, SCGP, BBL, GULF and ADVANC.
The Department of Trade Negotiations (DTN) said on Monday that Thailand is reevaluating the pros and cons of the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) free trade agreement after China signed the pact last week.
Auramon Supthaweethum, the department’s director-general, said the market size of CPTPP is now bigger than it was when it only had 11 signatories, namely Japan, Australia, New Zealand, Canada, Mexico, Peru, Chile, Singapore, Brunei, Malaysia and Vietnam.
“With China, the CPTPP population has expanded to over 1.9 billion people or 25 per cent of the global population with a total gross domestic product [GDP] of approximately US$25.3 trillion or 30 per cent of the global GDP,” she said.
However, she added that CPTPP was smaller than the Regional Comprehensive Economic Partnership (RCEP) which comprises 15 members, namely Indonesia, Malaysia, the Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, Cambodia, China, Japan, South Korea, Australia and New Zealand.
The RCEP is the world’s largest free trade agreement covering over 2.3 billion people or 30 per cent of the global population with a total GDP of $28.5 trillion or 33.6 per cent of the global GDP.
“China’s move to join the CPTPP agreement will help expand trade and investment opportunities among member countries, especially participation in the regional supply chain, as China is an important material resource and production base in the region,” she said.
“Meanwhile, it proved that China is ready to improve standards and regulations to match those of member countries, such as intellectual property protection, labour rights, e-commerce and state enterprises’ operations.”
Thailand has free trade agreements with nine CPTPP members, namely Japan, Singapore, Vietnam, Brunei, Malaysia, Australia, New Zealand, Chile and Peru.
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Auramon added that Thailand was getting ready to negotiate a free-trade agreement between Asean countries and Canada soon.
“The expansion of CPTPP had caused Thailand to reevaluate agreement’s benefits and impacts, such as tariff reduction or suspension, product origin and trade facilitation rules,” she said.
The Commerce Ministry will also reevaluate the agreement before it proposes changes to the Cabinet, she said.
Since, CPTPP is an issue that is closely followed by many sectors, the International Economic Policy Committee, which is made of senior representatives of the economic sector, is required to participate in the reevaluation as well.
The Energy Policy Administration Committee chaired by Energy Minister Supattanapong Punmeechaow on Monday approved the first revision of the National Power Development Plan of 2018-2037, a source said.
This version reportedly includes the objective of securing national energy stability by producing clean energy, reducing carbon emission and helping Thailand become a decarbonised society. The objective will be implemented between 2021 and 2030.
The committee has also tasked the Energy Policy and Planning Office (EPPO) and Department of Alternative Energy Development and Efficiency (DEDE) to revise the annual production capacity of power plants fueled by coal and natural gas, boost their capacity through the use of renewable energy (biomass, biogas, solar, wind, community and industrial wastes), as well as consider buying electricity generated by hydro-power plants from neighboring countries.
The committee also agreed to extend the price guarantee for liquefied petroleum gas (LPG) at Bt318 per 15-kilogram canister for three months until December 31. The move aims to ease people’s financial burden in the fallout of Covid-19 even though the global price of LPG is trending upwards. The Energy Ministry has been tasked with monitoring the price of LPG closely and proposing a price revision to the committee when necessary.
SiriHub Investment Token will be Thailand’s role model for asset-backed tokenization that will transform the Thai capital market. XSpring Digital has worked closely with partners and regulators to create attractive and compliant investment opportunities that will re-assure all investors.
• XSpring Digital declares that the SiriHub Investment Token, which allows people from all levels of society to invest in Thailand’s first real estate-backed ICO, is attracting strong attention from investors. This real estate-backed token has the Siri Campus Office Building, where the headquarters of Sansiri Public Company Limited (SIRI) is located, as its underlying asset.
• As per the asset valuation reports from the appraisers, the value of the “Siri Campus” will likely rise from THB2.4 Billion to THB2.6 Billion the next four years and that will affect higher revenue sharing of SiriHubB token holders, thanks to the analysis report that Sukhumvit land prices have great potential to increase at a rate of around 10%.
• With high Returns on Investment (ROIs) that are far above current bank deposit interest rates and a minimum investment of only THB10, many XSpring application downloads have currently exceeded their expected target ahead of the first day of subscription on September 21, 2021, from 00.01 AM.
• All investors are recommended to download the XSpring application to their mobile devices to verify their identity, and thus ensure that they can subscribe to the digital tokens on the day of the opening sale and transfer funds immediately via the app. In addition, XSpring Digital is collaborating with ERX Company Limited (ERX) in the distribution of SiriHub Tokens. ERX has outsourced its sales functions to four leading securities companies in Thailand – KTBST SEC, Finansia Syrus Securities, Krungthai Zmico Securities, and Asia Plus Securities, to support sales.
Mr. Att Tongyai Asavanund, Chief Executive Officer of XSpring Digital Company Limited, a subsidiary of XSpring Capital Public Company Limited (XPG), said: “The success of XSpring Digital to launch the SiriHub Investment Token, which represents Thailand’s first real estate-backed ICO, is aligned with the XPG’s vision to offer a comprehensive ecosystem for investment in digital finance for Thai investors. This real estate-backed token has the Siri Campus Office Building, where the headquarters of Sansiri Public Company Limited is located, as its underlying asset. It is a new investment model that uses digital technology to connect the capital market world. Its main goal is to provide opportunities for investors at all levels of society to access high-value real-estate investments. It does this by allowing investors to invest even with a small amount in that we offer a minimum subscription price of only THB10 per token. Through such a small outlay, investors are provided with quarterly returns over four years for a much higher return than current bank deposit rates.”
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XSpring Digital is delighted to see SiriHub Token attract strong attention A big wave of investors
“The SiriHub Investment Token will be Thailand’s role model for asset-backed tokenization that will transform the Thai capital market. XSpring Digital has worked closely with partners and regulators to create attractive and compliant investment opportunities that will re-assure all investors. Currently, the number of people to have already registered via the XSpring App to prepare for the subscription day on September 21 has exceeded our expectations.”
The SiriHub Investment Token is the first real estate-backed ICO to have obtained approval from the Securities and Exchange Commission of Thailand (SEC). The initial offer price is THB10 per token. A limit of 240 million tokens is offered on a first-come, first-served basis. The total to be raised is THB2.4 Billion.
Investors can choose between two tranches of the SiriHub Investment Token:
1) SiriHubA offers 160 Million tokens valued at THB1.6 Billion. Holders of SiriHubA will receive their returns from a quarterly revenue share of up to 4.5% per year and revenue sharing from the sale of the property after the project’s end, all of which will not be more than THB1.6 billion.
2) SiriHubB offers 80 Million tokens valued at 800 Million Baht. Holders of SiriHubB will receive returns from a quarterly revenue share of up to 8.0% per year and revenue sharing from the sale of the property after the project’s end, from the surplus of THB1.6 billion.
One of the highlights of this real estate-backed token is that the investment is within a single asset. This way, investors will be able to know the project they are investing in full detail as specified in the white paper, unlike investments in such vehicles as Real Estate Investment Trusts (REITs), in which the assets in the fund can be changed. Funds raised from the SiriHub Token issuance will be used to secure the Revenue Sharing from the rental income of Siri Campus Office Building and to also acquire the rights to be the Asset via shares of Siripat Four Company Limited. Located within T77, a lifestyle community in a prime location of the Sukhumvit area. The Siri Campus Office Building is the headquarters of Sansiri Public Company Limited (Sansiri PCL, SIRI), which is the sole tenant for the 100% area. With the long-term lease of 12 years, investors are assured that the project will receive continued revenues from the rental fee from Sansiri PCL throughout the four-year project period where the income after expenses will be arranged as quarterly revenue sharing distributed to token holders. Within 12 months prior to the end of the project, the token issuer will also arrange disposal of the assets in order to distribute profit sharing from net-asset-sale proceeds as the final portion of revenue to token holders.
As per the asset valuation reports from appraisers approved by the SEC, the value of the Siri Campus Project will likely rise to THB2.6 billion in the next four years in accordance with an analysis by the Agency for Real Estate Affairs (AREA) that reports the summary of changes in land prices in the vicinity of the On Nut BTS Station, which is near the Siri Campus. In 2021, the average price of land in the area was THB1.1 Million per square wah (4 square meters) and the Compound Annual Growth Rate (CAGR) has increased from 2015 to 2021 at a rate of around 10% per annum. This shows that the property’s location has great potential and relatively high growth prospects in the future.
In addition to the ease of accessing this investment platform, Mr. Asavanund went on to explain the many inherent safeguards employed by XSpring Digital in its investment system.
“The Sirihub Token has a mechanism to fully protect investors. XSpring Digital is the ICO portal, certified by the SEC, and there is protection provided under the trust and trustee structure. The SiriHub Investment Token offering runs on the Tezos blockchain system, the world’s most advanced blockchain technology developed to support digital fundraising with a real-estate-backed ICO. The blockchain provides greater security in accordance with Anti-Money-Laundering/Combating the Financing of Terrorism(AML/CFT) measures using three high-security features:
1.Know Your Customer (KYC) standards. Only approved registrants can be put on the white lists to trade the digital tokens.
2. The system also has real-time Clawback: This is a feature for returning stolen tokens to the token holder’s wallet.
3.Private Capitalization Table (Cap Table): Personal information will not be listed so as to protect the privacy of token holders but the issuer will have the ability to know in real time who owns the tokens similar to a share registry.
For the process of subscription and trading of the SiriHub Investment Token, a total of 240 million tokens will be initially offered at THB10 per token, which divides into a 160-million-token offering of SiriHubA and an 80-million-token offering of SiriHubB. The subscription period will run between September 21 and October 4, 2021. Investors can subscribe 24/7 on their mobile devices. In addition, XSpring Digital is collaborating with ERX Company Limited in the distribution of SiriHub Tokens. ERX has outsourced its sales functions to four leading securities companies in Thailand – KTBST Securities, Finansia Syrus Securities, Krungthai Zmico Securities, and Asia Plus Securities – to support the sale of SiriHub Tokens.
Upon completion of the subscription and the distribution of tokens to investors, the tokens are targeted to trade from October 12, 2021 in the secondary market through ERX, the first digital asset exchange focused on digital token trading licensed by Thailand’s Ministry of Finance and regulated by the SEC.
XSpring Digital is undergoing discussions with more than 10 clients who are interested to raise funds from tokenization in sectors such as real estate, tourism, and entertainment. At present, we are in the process of studying the possibilities afforded by tokenization, the types of tokens, and the protection mechanisms available so that our efforts attain the greatest benefits for both token issuers and investors.
Mr. Asavanund concluded: “An Initial Coin Offering (ICO) is a key alternative fund-raising method in the digital era – the SEC also supports the adoption of such technology in the capital market. It is an investment suitable for the public and new investors, as well as all major and institutional investors. It is an accessible new opportunity. We are grateful that the SEC has approved the trading of SiriHub Investment Tokens, so we believe these vehicles offer a valuable new dimension to the investment market in Thailand. This new investment is in projects with the high economic growth potential. Investors can conveniently transact via their mobile devices, 24 hours a day, through the XSpring application. Anyone can start to learn about investing in the digital finance world, which will play a key role in our lives.”
Investors interested in investing can learn about investment options and should open an account, verify their identity, and take the Investor Knowledge Test in advance to prepare for the subscription. Investors can download the XSpring apps on both iOS and Android. This will save time and allow investors to complete their subscriptions quickly, conveniently, and securely. The subscription period runs from September 21, 2021 at 00:01 am to October 4, 2021 at 3:30 pm.
On the subscription day, investors who have already opened an account, verified their identities and completed all the required steps, will be able to subscribe to SiriHub Investment Token and complete their purchases using the following process:
• Click on the SiriHub Investment Token project link.
• Read and study the project details.
• Choose the token and amount of investment to subscribe for each token. The system will automatically calculate the number of tokens as per the amount paid.
• Investors have to pay the full amount of investment at the cost THB10 for each token.
• The digital tokens are allocated following successful payment on a first-come, first-served basis
• After the full amount is paid and confirmation is received, investors will receive an email to inform them that their subscription is complete.
Investors will know the allocation of purchased tokens via email after the closing date of the subscription period. Tokens will be distributed to the wallets of investors who have registered and opened accounts with ERX in advance.
For any inquiry, please contact 02-038-5999, or follow the news of digital assets and digital tokens at:
The Stock Exchange of Thailand (SET) Index fell by 3.49 points, or 0.22 per cent, to 1,599.57 on Tuesday morning.
The volume of total transactions was THB4.16 billion with an index high of 1,605.37 and a low of 1,599.12 in opening trade.
The 10 stocks with the highest trade value were: KBANK, EE, DELTA, SAWAD, CPALL, PTT, SCC, CPF, KCE and TTA.
The SET Index closed at 1,603.06 on Monday, down 22.59 points or 1.39 per cent. Transactions totalled 85.01 billion baht with an index high of 1,620.72 and a low of 1,601.16.
The price of gold peaked by THB150 in morning trade on Tuesday.
AGold Traders Association report at 9.23am said the buying price of a gold bar was THB27,800 per baht weight and selling price THB27,900, while gold ornaments cost THB27,303.16 and THB28,400, respectively.
At close on Monday, the buying price of a gold bar was THB27,650 per baht weight and selling price THB27,750, while gold ornaments cost THB27,151.56 and THB28,250, respectively.
The baht opened at 33.35 to the US dollar on Tuesday, weakening from Monday’s closing rate of 33.34.
The Thai currency is likely to move between 33.30 and 33.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht is still pressured by weakening factors than strengthening in the short term. Foreign investors might sell more Thai bonds amid concerns that bond issues in the future might be more than expected after the Thai government raised the public debt ceiling and borrowed more.
Some investors have stopped speculating that the baht will strengthen and sold short-term bonds, due to worries of a new Covid-19 wave.
Poon added that the baht was pressured by the strengthening dollar from the risk-off state in the market. The baht was also pressured by the weakening yuan that affected the Asian currencies market from Evergrande’s default.
The key resistance level for the baht would be at 33.50 to the dollar. Poon speculated that the rising price of gold might prompt some investors to sell while the gold price rebounds.
The rise in gold price might help the baht strengthen because investors who sell gold in dollars will exchange them back to the baht.
While voters prepare to render their verdict on Prime Minister Justin Trudeaus government at the polls on Monday, the market is taking a distinctly downbeat view of the local currency, despite recent buoyancy in resource prices.
Indeed the rise in global commodity costs could even become a headwind for the country’s economy rather than a tailwind as concerns about domestic inflation take center stage for citizens, politicians and central bankers alike.
The loonie, as it is affectionately dubbed because of the bird that graces Canada’s coinage, has been one of the worst-performing developed-market currencies in the second half of this year. After outstripping all its Group-of-10 counterparts in the first six months of 2021, it’s fallen 3.6% since June 30. And activity within derivative markets suggests there could be more pain to come for the currency even as the Bank of Canada starts to pave the way for monetary policy tightening.
“It’s been pretty clear over the last week or two that the CAD is just not responding to some of the positive fundamental impulses in the way we would have expected,” said Shaun Osborne, chief currency strategist at Scotiabank. “I suspect the CAD may continue to struggle a little bit.”
On Monday, the loonie was the second-worst performing G-10 currency amid a broad stock and commodity rout, as investors weighed the impact of China’s struggling real estate sector.
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In the options market, the right to sell the Canadian dollar versus the greenback in three months’ time has been rising in cost relative to the price of purchase rights. So-called risk reversals, which compare the costs of these puts and calls, this month reached levels unseen since June 2020, suggesting increased interest in hedging against Canadian dollar losses.
One- and three-month implied volatility measures have ticked up in recent weeks, suggesting that some investors are bracing for an increase in activity.
Positioning data from the Commodity Futures Trading Commission also shows a dialing back of Canadian dollar bullishness. While speculators maintain a net long position, it has fallen notably from its recent peak in mid July, while asset managers are also holding smaller bullish positions than they were a couple of months ago.
All this comes even as the Bloomberg Commodity Index has risen 2% since June 30, although crude oil is around 4.2% lower.
Opinion polls in Canada have indicated that Trudeau’s Liberals are in a tough fight to remain in power, despite promises to boost spending. While elections have not typically been a source of major investor disquiet when it comes to Canada, there are a number of elements to this year’s battle between Trudeau and Conservative challenger Erin O’Toole which could potentially sway markets.
The biggest risk will be if a minority government is formed and is unable to make any headway on policy decisions, potentially triggering another election in the not-too-distant future, according to Toronto-Dominion Bank analyst Mark McCormick. This could lead to elevated volatility in the short-run, he said.
Another major potential impact is on the monetary policy backdrop. The central bank’s five-year inflation targeting mandate is up for renewal this year and there is a chance that Bank of Canada Governor Tiff Macklem might request more flexibility, so whoever is in power could hold the key to that.
O’Toole has said he favors the inflation target at 2% as regular people struggle to make ends meet. Trudeau said that families, not monetary policy, would be his government’s top economic priority and wants to continue with increased stimulus.
New data released Wednesday showed year-on-year consumer-price gains accelerated to 4.1% in August, the fastest inflation since 2003 and the fifth consecutive reading above the Bank of Canada’s 3% cap. That landscape of accelerating inflation will, of course, be critical for monetary policy: The BOC boss said earlier this month he intends to scale back bond purchases as the economy recovers, leaving open the possibility for higher rates if consumer costs keep on rising. But it will also potentially have an effect on the election result itself, the kinds of fiscal policy that emerge in its wake and the eventual decision surrounding the BOC mandate.
“Election outcomes can have an impact on fiscal policy which reverberates into monetary policy or vice-versa,” said Tom Nakamura, a portfolio manager at AGF Management. “There is some concern about the election.”
Looming over all this is the specter of the U.S. monetary policy decision this Wednesday. Any notable signals from the Federal Reserve about its potential timeline for asset-purchase tapering or interest-rate hikes are likely to have a significant impact on risk assets around the world, including the Canadian dollar and the commodities complex.
“It’s clear the Fed is going to start the taper process this year and at the same time we reached peak BOC hawkishness,” said McCormick. “The biggest driver of loonie now is the outlook for the dollar and global risk sentiment.”
U.S. stocks climbed from the lowest levels of the day following a rout sparked by investor angst over Chinas real-estate sector and Federal Reserve tapering.
The S&P 500 was down about 2%, after slumping as much as 2.9%, the biggest one-day slide since October 2020. Treasuries gained along with the dollar before Wednesday’s Fed meeting, where policy makers are expected to start laying the groundwork for paring stimulus.
“If the market is ripe for a correction, ’tis the season for one,” said Anne Wickland, Portfolio Manager at Easterly Investment Partners LLC. “Most selloffs seem to occur at the end of the third quarter, beginning of the fourth as investors start to adjust future expectations.”
The Stoxx Europe 600 index dropped 1.7% to a two-month low. Raw materials led the broad-based retreat as iron ore extended a slump below $100 a ton and base metals declined after China stepped up restrictions on industrial activity.
Hong Kong shares slumped amid the biggest selloff in property stocks in more than a year as traders tracked the risk of contagion from the debt crisis at developer China Evergrande Group, which is fueling new fears about China’s growth path.
“China is not investable, not at this point — even on a government level because you just really don’t know what protection you’re going to have or what the currency is going to do,” Ed Yardeni, president of Yardeni Research, said in an interview on Bloomberg TV.
Aside from Evergrande and the prospect of reduced Fed stimulus, financial markets also face risks from uncertainty over the outlook for President Joe Biden’s $4 trillion economic agenda as well as the need to raise or suspend the U.S. debt ceiling. Investors were already fretting over a slowing global recovery from the pandemic and inflation stoked by commodity prices.
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Treasury Secretary Janet Yellen said the U.S. government will run out of money to pay its bills sometime in October without action on the debt ceiling, warning of “economic catastrophe” unless lawmakers take the necessary steps.
Meanwhile, emerging-market stocks headed for their biggest drop in a month, while Russia’s ruble and Chile’s peso led developing-nation currency declines. Bitcoin briefly fell below $43,000. WTI crude oil extended a drop toward $70 a barrel.
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Some of the main moves in markets:
-The S&P 500 fell 2.2%
-The Nasdaq 100 fell 2.7%
-The Dow Jones Industrial Average fell 2.2%
-The MSCI World index fell 2%
– – –
-The Bloomberg Dollar Spot Index rose 0.2%
-The euro was little changed at $1.1727
-The British pound fell 0.6% to $1.3658
-The Japanese yen rose 0.5% to 109.41 per dollar
– – –
–The yield on 10-year Treasuries declined five basis points to 1.31%
–Germany’s 10-year yield declined four basis points to -0.32%
–Britain’s 10-year yield declined five basis points to 0.79%
– – –
–West Texas Intermediate crude fell 1.9% to $70.62 a barrel
XSpring Digital is delighted to see SiriHub Token attract strong attention A big wave of investors
XSpring Digital is delighted to see SiriHub Token attract strong attention A big wave of investors
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