Financials: Bank of Kyoto, Dongzheng Automotive Finance, Tokyo Stock Exchange Tokyo Price Index Topix, Terra and more

In today’s briefing:

Bank of Kyoto (8369) Surprises With a Cross-Holding Sale Plan (Albeit Small)

Bank of Kyoto (8369 JP) has been the poster child for “deep value” Japan traders and occasional wannabe activists. It has a huge equity portfolio which dwarfs market cap.
Every year, twice a year (end of May and early December) Bank of Kyoto (8369 JP) releases a document for a meeting with analysts and press called Information Meeting.
This year’s is a little different in that it proposes sales of 10% of its equity portfolio. It’s “small” but worth thinking about.

On 19 May, SAIC Motor (600104 CH) emerged as the successful bidder for China Zhengtong Auto Services Hldg (1728 HK)’s 71.04% stake in Dongzheng Automotive Finance (2718 HK).
As SAIC will hold 30%+ of the voting rights, it will result in an MGO at a price not less than the auction price of HK$1.294 per H Share.
Dongzheng shares remain in a trading halt. The equity interest will transfer to SAIC and the MGO launched when the Shanghai Financial Court issues an auction sale judgment.

I discussed the points of the Nikkei article on the prime market created by the TSE’s market reorganization.
Looking at the prime market as a whole, it is not significantly different from the TSE 1st Section. However, there were aspects where individual companies made progress in their efforts.
Since prime market has companies with small market capitalizations and depressed valuations, it is desirable to discuss increasing the quality companies that enhance profitability, growth potential and corporate governance.

TerraForm Labs Prepares Airdrop for LUNA 2.0 Launch – The creators of LUNA and UST have announced plans to airdrop new LUNA tokens to holders as of the date stamp of May 7, 2022.
Old LUNA tokens will become called Luna Classic. While this is expected to represent much less than a penny on the dollar of the May 7 value, it gives Terra a chance to recover its ecosystem and builder community over time, which has been known for good UI/UX and ease of use.
While many wrote Ethereum off after the 2016 DAO Hack, Ethereum eventually more than recovered. We shall see what happens to Terra.

Before it’s here, it’s on Smartkarma