Smartkarma Daily Briefs

• China Vast Industrial Urban Development (6166 HK)‘s scheme document is out with the court meeting scheduled for 23 November. The IFA considers the offer to be fair and reasonable. 
• Key conditions include approval by at least 75% of independent shareholders (<10% rejection). Shareholders with blocking stakes either provided irrecovables or will likely support the offer.
• The offer is not great but headcount test is not applicable. At last close and for the 14 December payment, the gross and annualised spread is 0.8% and 6.7%, respectively.

• Hong Kong government published on Oct 31 a statement titled “Policy Statement on Development of Virtual Assets in Hong Kong” with a much friendlier stance on crypto industry
• The policy statement mainly focuses on crypto asset ETF, NFT, tokenized assets, stablecoin, and e-HKD; while utility tokens are missing from it.
• While this has been perceived positively by the industry, the biggest concern is still the regulatory uncertainty, especially considering mainland China’s outright ban on all crypto-related activity

• Bank Central Asia (BBCA IJ) released a robust set of 9M2022 results driven by loan growth across all segments together with low-cost CASA funding and falling provisioning.
• The bank demonstrated its leadership in transactional banking with total transactions growing +48% YoY, with 89% in volume terms and 59% in value terms through mobile and internet banking. 
• Bank Central Asia (BBCA IJ) continues to be a core holding and trades at a premium to its peers for good reason and it has already demonstrated its digital prowess.

• Go Digit General Insurance is looking to raise about US$503m in its upcoming India IPO. The deal will be run by ICICISec, MS, Axis, Edelweiss, HDFC Bank and IIFL.
• Go Digit General Insurance is a digital full stack insurance company, offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products.
• In this note, we talk about the positive aspects of the deal.

Lucror Analytics Morning Views comprise our fundamental credit analysis, opinions and trade recommendations on high yield issuers in the region, based on key company-specific developments in the past 24 hours. Our Morning Views include a section with a brief market commentary, key market indicators and a macroeconomic and corporate event calendar.

• CIFI Holdings
• Country Garden Holdings Co
• Longfor Properties
• Vedanta Resources

• FIFA, who recently launched FIFA+ Collect, have stepped up their Web3 game with yet another partnership.
• This one is a bit more niche and complex. Equally, it’s potentially more interesting than the more generic highlight reel based moments that FIFA dropped a couple of weeks ago.
• Basically, this is an NFT, that uses AI to train itself to interact with a number of different digital environments in several different ways.

• The International Sustainability Standards Board (ISSB) recently confirmed important aspects of its proposed sustainability reporting standards. One step closer to a unified standard.
• Particularly noteworthy is confirmation that disclosures of Scope 3 emissions will be required. Scope 3 emissions are largely unreported, but account for the majority of total emissions.
• Scope 3 disclosure could have repercussions for ESG ratings, ESG indices based on ESG ratings, and potentially (though too soon to tell) reconstutions of exchange-traded funds.