Investment & Market Trends

Wong Engineering Corp Bhd (WEC) is disposing of a 10% equity interest in its associate company, Broadway Lifestyle Sdn Bhd (BLSB), for a total cash consideration of RM6.27 million as part of its ongoing efforts to unlock value from its investment portfolio and strengthen focus on its core precision engineering operations. In a filing with Bursa Malaysia, WEC announced that it had entered into a share sale agreement with Econ Property Management Sdn Bhd on July 21 for the disposal of 250,000 ordinary shares and 5.15 million redeemable non-cumulative preference shares in BLSB. Following the completion of the transaction, WEC’s equity interest in BLSB will be reduced from 35% to 25%, while BLSB will continue to remain an associate company of the group. WEC said the disposal consideration was determined on a willing buyer-willing seller basis, taking into consideration several factors, including the group’s original investment cost as well as BLSB’s estimated net assets and liabilities. Under the terms of the agreement, Econ Property Management will make an initial payment of RM5 million upon execution of the share sale agreement, with the remaining balance of RM1.27 million to be settled within three months from the date of the agreement. The precision engineering group said the divestment aligns with its strategy to optimise its investment holdings, enhance capital efficiency and provide additional financial flexibility to support its ongoing business operations and future growth initiatives.

Crude palm oil (CPO) prices are expected to trade between RM4,400 and RM4,650 per tonne in August, supported by Indonesia’s implementation of its B50 biodiesel programme, stronger energy prices, and improved biodiesel economics, according to the Malaysian Palm Oil Council (MPOC). In a statement, MPOC said rising geopolitical tensions between the United States and Iran pushed gasoil prices up by around 30% between early and mid-July, making fossil fuel more expensive than both palm oil and soybean oil. This has improved the competitiveness of palm oil as a biodiesel feedstock. However, the council noted that further gains in CPO prices may be capped by softer global demand and elevated vegetable oil inventories in key importing markets. Malaysia’s palm oil supply remains favourable, with data from the Malaysian Palm Oil Board (MPOB) showing that production increased 8% month-on-month to 1.63 million tonnes in June 2026 as the seasonal production cycle gathered pace. Despite the monthly increase, output was still 3% lower year-on-year, marking the fourth consecutive month of annual decline. Palm oil exports also rose 6.1% from the previous month to 1.20 million tonnes in June, although export volumes remained 4% below the same period last year. MPOC attributed the weaker annual performance to softer demand from major markets such as China and India, amid lingering economic uncertainty and the impact of geopolitical tensions in West Asia. Meanwhile, Malaysia’s palm oil inventories climbed to 2.5 million tonnes in June, reflecting stable supply conditions. Looking ahead, MPOC expects global oilseed production to continue expanding, although growth is projected to slow during the 2026-2027 season. Combined output of soybeans, sunflower seeds and rapeseed is forecast to increase by 16.5 million tonnes, below the average annual increase recorded over the past four years. The council said slower growth in oilseed production, coupled with rising demand for vegetable oils from the biofuel sector, is expected to provide longer-term support for vegetable oil prices. While near-term demand remains moderate, MPOC expects seasonal restocking ahead of Deepavali to provide some support, particularly in India, which typically imports around 30% of its annual vegetable oil requirements between July and September. With palm oil remaining the most competitively priced major vegetable oil, MPOC believes it is well positioned to benefit from the seasonal increase in demand in the coming months.

Chinese optical components manufacturer Zhongji Innolight is aiming to raise up to HK$55.05 billion (US$7 billion) through a listing in Hong Kong, potentially making it Asia’s second-largest initial public offering (IPO) of 2026. According to a filing with the Hong Kong Stock Exchange, the Shenzhen-listed company plans to offer 54.5 million shares at a maximum price of HK$1,010 per share. If a 15% over-allotment option is fully exercised, the total fundraising could increase to approximately HK$63.3 billion (US$8.1 billion). The IPO is expected to become Hong Kong’s largest share sale since Alibaba’s US$12.9 billion listing in 2019, and the second-biggest in Asia this year after Chinese memory chipmaker CXMT Corp’s US$8.6 billion Shanghai STAR Market listing. Zhongji Innolight has secured support from 33 cornerstone investors, who have committed around US$3.45 billion, representing nearly half of the base offering. The investor lineup includes Temasek, BlackRock, JPMorgan Asset Management, Abu Dhabi Investment Authority, Wellington Management, Bain Capital, Alibaba, Tencent, CPP Investments, Oaktree, General Atlantic, and several other global investment firms. The company manufactures optical transceivers, critical components that enable high-speed data transmission through fibre-optic networks. These products are widely used in data centres, cloud computing infrastructure, and artificial intelligence (AI) systems, positioning Zhongji to benefit from growing global demand for AI-related technologies. The planned listing comes as Chinese technology companies accelerate investments in AI infrastructure to meet rising demand for advanced computing power and data centre capacity. Zhongji reported strong financial growth, with 2025 revenue rising 60.3% year-on-year to 38.24 billion yuan (US$5.7 billion), while net profit more than doubled to 11.58 billion yuan. In the first quarter of 2026, revenue nearly tripled to 19.5 billion yuan, reflecting continued momentum in its business. The company said proceeds from the IPO will be used to fund research and development, expand global production capacity, strengthen its supply chain, and support future growth initiatives. The final offer price is expected to be announced on July 29, with trading on the Hong Kong Stock Exchange scheduled to begin the following day. The listing is jointly sponsored by Goldman Sachs, CICC, Morgan Stanley, and GF Securities.

China has given approval for fast-fashion giant Shein to proceed with its long-awaited initial public offering (IPO) in Hong Kong, according to a notice published on the China Securities Regulatory Commission (CSRC) website on Friday. The approval marks a major step forward for the online retailer after its previous attempts to list in New York and London faced regulatory hurdles. A spokesperson for Shein did not immediately comment on the development. Shein has reportedly been awaiting Beijing’s approval for nearly a year, with the IPO process requiring clearance from senior levels of the Chinese government, according to a source familiar with the matter. The company’s listing plans have attracted close scrutiny in China due to political sensitivities surrounding its global operations. Concerns were reportedly heightened following controversies involving the company, including a sex doll-related scandal in France and allegations regarding labour conditions among some of its suppliers in China. IPO Valuation Could Reach US$40 Billion to US$50 Billion Shein was valued at as much as US$100 billion (RM407.11 billion) in 2022 during the peak of the pandemic-driven e-commerce boom. However, its valuation was later adjusted as investor sentiment weakened amid slowing online retail growth, increased regulatory pressure and criticism from politicians, retailers and industry groups. The company’s most recent private fundraising round in May 2023 valued Shein at approximately US$66 billion. According to sources, Shein is now targeting a valuation of between US$40 billion and US$50 billion through its Hong Kong IPO. While this would place the company below rival Temu’s parent company PDD Holdings, which has a market capitalisation of about US$117 billion, it would still make Shein significantly larger than Swedish fashion retailer H&M, which is valued at around US$24 billion. Previous Listing Attempts in US and UK Founded in 2012 by Chinese-born entrepreneur Sky Xu, Shein has grown into one of the world’s largest online fashion retailers, offering low-cost apparel such as US$5 dresses and US$10 jeans across around 150 countries. The company initially filed for a US IPO in November 2023 but faced increasing resistance from lawmakers and regulators over concerns linked to its supply chain practices and Chinese ownership ties. Following delays in the US, Shein shifted its focus to London, where the Financial Conduct Authority reportedly approved a draft prospectus. However, the company was unable to proceed as it had not received the required approval from China’s CSRC. Shein’s prolonged IPO journey highlights the growing impact of geopolitical tensions on Chinese-linked companies seeking access to global capital markets. The situation also reflects Beijing’s increased oversight of overseas listings following its decision in 2020 to halt Ant Group’s planned IPO at the last minute. New regulations introduced by the CSRC in 2023 gave Chinese authorities greater authority to review and potentially block offshore listings that could raise national security or data concerns. Although Shein relocated its headquarters to Singapore in 2022, the company remains subject to Chinese listing regulations due to its reliance on a large network of suppliers based in China. Hong Kong Set to Benefit from Major Listing A successful Shein IPO would provide a boost to Hong Kong’s capital markets, which have experienced renewed momentum as a global listing destination. Over the past 12 months, the CSRC has approved more than 180 IPO applications, according to public disclosures, contributing to increased activity in Hong Kong’s equity capital markets. Ongoing Criticism Over Labour and Business Practices Despite its rapid global expansion, Shein has faced criticism from competitors, regulators and non-governmental organisations over several aspects of its business model. The company has been accused of contributing to concerns surrounding factory working conditions, carbon emissions from air freight shipments and the environmental impact of producing large volumes of low-cost clothing. Its direct-to-consumer model, which involves manufacturing apparel through Chinese suppliers and shipping products directly to customers worldwide, has also come under pressure as the US and European markets move to tighten customs exemptions and impose duties on low-value imports. The Hong Kong listing would represent a significant milestone for Shein as it seeks to strengthen its global presence while navigating increasing regulatory scrutiny and geopolitical challenges.

Berjaya Corp Bhd (BCorp) has disposed of 48.5 million shares in its listed subsidiary, Berjaya Assets Bhd (BAssets), through its wholly-owned subsidiaries Ambilan Imej Sdn Bhd (AISB) and Berjaya IPS Credits Sdn Bhd (BIPS Credits). The disposal, which was completed on July 9, 2026, involved approximately 1.9% equity interest in BAssets and was executed at a price of 30 sen per share. The transaction generated total cash proceeds of RM14.55 million for BCorp. In a filing with Bursa Malaysia, BCorp said that following the disposal, it continues to hold 308.55 million shares in BAssets, representing a remaining equity stake of approximately 12.06% in the company. The group stated that the disposal price was determined based on the prevailing market value of BAssets shares at the time of the transaction. The shares disposed were sold free from all encumbrances, allowing for a straightforward transfer of ownership. BCorp added that the proceeds from the share disposal will be utilised primarily for strengthening its financial position, including the repayment of borrowings and supporting its working capital requirements. The funds will also be allocated towards the group’s ongoing administrative and operational expenses. Despite generating cash inflow, the disposal was carried out below the carrying value recorded in BCorp’s financial statements. The shares had a book value of 73 sen per share, compared with the disposal price of 30 sen per share. The divestment forms part of BCorp’s ongoing efforts to optimise its investment portfolio, manage capital allocation and enhance financial flexibility while maintaining its strategic interest in BAssets through its remaining shareholding.

Permaju Industries Bhd (PIB) has strengthened its presence in Malaysia’s automotive sector after its wholly owned subsidiary, Cergaz Autohaus Sdn Bhd (CASB), was appointed as an authorised dealer for Chery’s Lepas brand by Chery Auto Malaysia Sdn Bhd. In a filing with Bursa Malaysia, PIB said the appointment marks another strategic step in expanding its automotive business and broadening its portfolio of vehicle brands in the local market. The company noted that the addition of the Lepas marque is expected to complement CASB’s existing automotive operations while diversifying its range of products and services. Beyond vehicle sales, the dealership is also expected to create new revenue opportunities through after-sales services, maintenance, and genuine spare parts sales. PIB said the dealership appointment aligns with its strategy to strengthen its position in the automotive industry by leveraging the growing demand for new energy and passenger vehicles in Malaysia. The company believes the partnership with Chery Auto Malaysia will enhance its long-term growth prospects by expanding its customer base and improving recurring income streams from service and maintenance activities, while reinforcing its commitment to delivering quality automotive solutions to Malaysian consumers.

Construction and engineering firm Metrocon Holdings is set to make its debut on the Singapore Exchange (SGX) through a proposed S$28 million reverse takeover of embattled property developer Hatten Land, which has been under judicial management and suspended from trading since August 2024. Hatten Land has called for an extraordinary general meeting on July 22, where shareholders will vote on the proposed transaction. If approved, the deal will allow Metrocon to secure a listing on the SGX without undertaking a traditional initial public offering (IPO), providing the company with access to the capital markets as Singapore’s construction sector continues to expand. Metrocon chief executive Tan Kean Seng said the company has been exploring options to become publicly listed as it continues to grow. He noted that the opportunity to acquire Hatten Land’s listed status came through an introduction and, following careful evaluation, was deemed the most suitable route to achieve its listing ambitions. Metrocon specialises in foundation engineering, including piling and ground preparation works required for buildings and infrastructure projects. The company has been involved in numerous public housing and government developments, including projects near MRT and LRT lines, tunnels, canals and other technically demanding construction sites. According to Tan, Singapore’s construction industry is entering a period of sustained growth, supported by a healthy pipeline of public infrastructure developments and continued demand from the private sector. Metrocon has recorded strong financial growth, with revenue more than doubling from S$23.6 million in 2023 to S$61.1 million in 2025. The company is also profitable and has an outstanding order book worth S$82.5 million, which is expected to be delivered over the next 24 months. The proposed reverse takeover also forms a key part of Hatten Land’s restructuring plan under judicial management. Upon completion, Hatten Land will be renamed Metrocon Holdings, with its business shifting entirely from property development to foundation engineering. The S$28 million acquisition will be settled entirely through the issuance of approximately 107.7 million new shares at an issue price of 26 Singapore cents per share to Metrocon’s owner, LBD Engineering. In addition, Hatten Land will issue 22.4 million new shares to creditors as partial debt settlement and 21.5 million shares to restructuring funders. As part of the restructuring exercise, the company will also undertake a share consolidation, combining every 830 existing shares into one new share, reducing its issued share capital from more than 1.86 billion shares to approximately 2.24 million shares. The move is expected to streamline the company’s capital structure ahead of its proposed transformation into a listed construction and engineering group.

South Korean chipmaker SK Hynix is set to launch a US listing on Nasdaq on Monday, aiming to raise around US$28 billion as it seeks to capitalise on booming global demand for artificial intelligence (AI)-related technologies. According to regulatory filings, the company will offer 17.79 million new shares through American Depositary Receipts (ADRs), with every 10 ADRs representing one common share. The pricing range will be announced based on SK Hynix’s share price on the Seoul stock exchange, while the final offer price is expected to be determined on Thursday ahead of trading on Friday. The listing is poised to become one of the world’s largest share sales, underscoring investor confidence in AI-driven semiconductor companies. Despite SK Hynix’s shares falling 4.2% on Monday, the stock has surged about 273% year-to-date, fuelled by strong demand for AI memory chips. The fundraising comes as South Korea ramps up investments in semiconductors and AI to strengthen its position in the global technology race. Last week, the government announced a US$576 billion semiconductor investment programme, with SK Hynix and Samsung Electronics serving as anchor companies. President Lee Jae Myung has also urged officials to accelerate the rollout of major AI and chip projects, warning that delays in approvals, land acquisition and infrastructure could undermine the country’s competitiveness. SK Hynix has emerged as one of the biggest beneficiaries of the AI boom, thanks to its leadership in high-bandwidth memory (HBM) chips, which are widely used in AI systems developed by customers including Nvidia and Google. The company recently announced plans to invest 100 trillion won (US$64.4 billion) to build new semiconductor manufacturing facilities, including a plant for NAND flash memory, as part of South Korea’s broader push to expand its chip industry. Analysts believe the Nasdaq listing could improve SK Hynix’s global visibility, narrow its valuation gap with US rival Micron Technology, and pave the way for inclusion in the Philadelphia Semiconductor Index, potentially attracting greater passive investment from global funds. If successful, the deal would rank as the second-largest global share sale, following SpaceX’s US$85.7 billion IPO last month, and surpassing the landmark listings of Saudi Aramco in 2019 and Alibaba in 2014.

Berjaya Property Bhd is expanding into the automotive manufacturing sector after its wholly owned subsidiary, Alam Baiduri Sdn Bhd, entered into a joint venture (JV) with Trusmax Investment Co Ltd, a wholly owned subsidiary of China’s Wanli Tire Co Ltd, to establish an automotive tyre manufacturing business in Malaysia. In a filing with Bursa Malaysia, the group said the partnership will undertake the research, development, design, manufacturing and sale of automotive tyres, as well as related spare parts and components. The new JV company will also provide after-sales services, supporting a comprehensive automotive tyre business in the local market. Under the agreement, Alam Baiduri will hold a 30% equity stake in the JV company, while Trusmax will own the remaining 70%. The parties estimate that approximately RM1.3 billion will be required to develop and establish the tyre manufacturing plant. Of the total investment, RM813.5 million, or about 63%, will be financed through shareholders’ equity contributions, while the remaining RM491.45 million, representing 37%, will be funded through borrowings. As part of its investment, Alam Baiduri will inject RM125.7 million in cash and contribute a 67.9-acre freehold land parcel valued at RM118.31 million, bringing its total capital contribution to RM244.01 million. The agreed land valuation takes into account planned construction works, as well as land conversion and subdivision costs estimated at approximately RM60 million, which will be undertaken by Alam Baiduri. The company said the cash contribution together with the related construction and land development costs will be financed through a combination of internally generated funds and borrowings. The joint venture marks Berjaya Property’s strategic diversification into the automotive manufacturing industry, while leveraging Wanli Tire’s expertise in tyre technology and production to establish a new manufacturing presence in Malaysia. The collaboration is expected to strengthen the country’s automotive supply chain and support future growth opportunities in the regional tyre market.

https://theexchangeasia.com/wp-content/uploads/2026/07/tamchy-opening-ceremony-video-1_EnMVYK3Y.mp4 The President of the Kyrgyz Republic, Sadyr Japarov, has inaugurated the Tamchy Special Financial Investment Territory (SFIT), a new international jurisdiction on the shores of alpine Lake Issyk-Kul. The first residents of Tamchy, who joined during the launch ceremony, were companies from South Korea, the UAE, Hong Kong, Switzerland and Kazakhstan. Twenty companies from across the globe are in the process of establishing residency at Tamchy SFIT. The ceremony culminated with President Japarov symbolically activating a geotag-shaped switch, thus putting Tamchy SFIT, quite literally, on the global financial map. “Changes in the global economy are driving demand for new centers of business activity where international standards are supported by true freedom of innovation and long-term investment. Tamchy SFIT is our national project and our response to the needs of international businesses. We are building a financial center from scratch — with an independent court, a modern regulator, and rules that won’t change with shifting trends.I have no doubt that Tamchy SFIT will open a new chapter in the history of Kyrgyzstan,” said President Japarov. Operating on the principles of English common law, Tamchy SFIT has its own financial regulator, an International Dispute Resolution Centre, and a single-window digital registrar. A special tax regime guarantees a 0% rate of tax on profits, dividends, capital gains, and VAT for 49 years and allows 100% foreign ownership and unrestricted profit repatriation.   Covering an area of about 6,000 ha, Tamchy SFIT can already boast a fully operational business center, while hotels and residential buildings are under construction. Issyk-Kul International Airport is within walking distance. “Great financial centres are built by understanding what international capital and businesses require. Tamchy SFIT offers exactly that — a trusted, flexible, and investor-ready platform for businesses seeking sustainable growth. Benchmarked to international gold standards, grounded in English common law, and positioned at the intersection of five EAEU economies and the Eurasian corridor, it offers a jurisdiction that is neutral, independent, and built to last,” said Ali Ijaz Ahmad, First Deputy Chairman of the Tamchy SFIT Management Council. One of the first executives who decided to set up in Tamchy SFIT was Seo Dong Hyun, CEO of Serim. “Over the past thirty years of investing in the semiconductor industry, high technology, and energy, I have come to appreciate that legal certainty and trust in the regulatory system are the foundation of long-term investment. These are the very principles on which the Tamchy SFIT was established. What is particularly remarkable is that a project of this scale was delivered in just one year—faster than in any other jurisdiction I know. Today, I registered my family holding company here. For me, this is not an investment for years, but for generations,” he said. By 2035, Tamchy aims to attract around 4,000 resident companies and create over 10,000 jobs. The expected contribution of Tamchy to the country’s economy between 2026 and 2035 is estimated at $20 bn.