Sat, Sep 18, 2021 page10

• World Business Quick Take

  • Agencies
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  CHINA

  PBOC injects US$13.9bn

  The People’s Bank of China (PBOC) yesterday injected short-term cash into the financial system in a sign the authorities are seeking to soothe market nerves frayed by concern over quarter-end funding needs and China Evergrande Group’s (恆大集團) debt crisis. The central bank added 90 billion yuan (US$13.9 billion) of funds on a net basis via seven-day and 14-day reverse repurchase agreements, the most since February. It was the first time this month the authorities added more than 10 billion yuan of short-term liquidity into the banking system in a single day. The funds come as the crisis facing Evergrande fuels concern over the health of the nation’s real-estate and credit markets. Adding to the stress is a seasonal spike in demand for cash as banks become less willing to lend toward quarter-end as they prepare for regulatory checks. Liquidity also tends to diminish at this time of year as the Mid-Autumn Festival approaches.

  TECHNOLOGY

  S4 Capital to buy Zemoga

  Martin Sorrell’s S4 Capital has struck a deal to buy Zemoga, a technology services company that provides a new route for the rapidly growing digital advertising group to win work from multinational clients. Sorrell, the founder of WPP, has turned S4 into a US$6 billion company in the three years since its launch by acquiring businesses to combine data with digital content and serve the likes of Facebook, Google, Burberry and Netflix. The move into tech services is to enable it to better compete with companies like Accenture and Globant, which can sell digital advertising services and advice to clients. Zemoga provides product design, engineering and delivery services to clients such as Bridgestone, Sony, Roku and Morningstar.

  SINGAPORE

  Fund aims to boost market

  Singapore is looking to set up a S$1.5 billion (US$1.1 billion) fund backed by state investment firm Temasek Holdings Pte to bolster its stock market, which has struggled with tepid listings and poor trading volumes. The fund is to invest in high-growth companies and initial public offerings. Separately, the investment arm of the Economic Development Board, a government agency promoting foreign investment, is to invest up to S$500 million into a fund aimed at companies looking to list in two to five years. The plan aims to increase Singapore’s attractiveness as a location for raising capital for local and regional companies, the government said.

  STEEL

  US Steel to build mini-mill

  US Steel Corp is to spend about US$3 billion to build a new mill, the latest sign that steelmakers are growing more comfortable that higher prices will last. The so-called mini-mill is to combine two electric arc furnaces, which primarily use steel scrap and are far more energy-efficient than traditional integrated plants that are fed by coal. The company expects to begin construction in the first half of next year and start producing in 2024. US Steel’s announcement comes as domestic futures prices have more than tripled in the past year. While this has produced a windfall for domestic suppliers, it is driving up the cost of everything from automobiles to wind turbines to kitchen appliances as the world recovers from the COVID-19 pandemic. The company forecast that it would report record earnings for the third quarter on the back of the strong prices, which would allow it to reduce debt.
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