international

China’s rare earth magnet exports dropped by more than half in May, plunging to their lowest monthly volume in over five years, as stringent export controls continue to weigh on outbound shipments. According to data released by the General Administration of Customs, overseas shipments of rare earth permanent magnets fell to 1,238 tonnes in May, representing a 52.9% decline from April and marking the weakest monthly total since February 2020. On a year-on-year basis, exports were down a steep 74%. The significant decline comes amid tightened restrictions introduced in April, when Beijing imposed curbs on exports of seven medium-to-heavy rare earth products and selected magnet categories. The move, seen as a strategic response in ongoing geopolitical and trade dynamics, has disrupted critical global supply chains spanning the automotive, aerospace, semiconductor and defence industries. Despite a pledge earlier this month to accelerate export licence approvals—following a broader US-China agreement to ease trade tensions—industry insiders report that Chinese customs authorities remain cautious. Particular scrutiny is being placed on rare earth magnets due to classification challenges; a single customs code currently covers a wide range of magnet types, complicating the clearance process. Sources, speaking on condition of anonymity due to the sensitivity of the matter, noted that even lower-performance magnets used in consumer electronics and appliances are being delayed, given the regulatory ambiguity. The Ministry of Commerce confirmed on Thursday that “a certain number” of export licence applications had been approved, although further details were not disclosed. Leading Chinese magnet manufacturers JL MAG Rare-Earth and Innuovo Technology recently announced they had secured limited export permits for select clients, signalling that some progress is being made despite ongoing bottlenecks. Cumulatively, rare earth magnet exports from January to May fell by 14.5% year-on-year to 19,132 tonnes—the lowest level for this period since 2021. China is the world’s dominant supplier of rare earth magnets, accounting for over 90% of global output. The country’s tightening grip on outbound shipments underscores its strategic leverage over materials critical to high-tech manufacturing and clean energy transition globally. -Reuters

Cognizant Technology Solutions is set to invest ₹15.82 billion ($182.76 million) in the development of a new campus in Visakhapatnam, Andhra Pradesh. According to an official statement from the state government released on Friday, the campus is expected to generate approximately 8,000 jobs upon becoming operational in March 2029. The announcement underscores a growing trend among global IT service providers to expand into India’s tier-2 cities. Cognizant’s decision follows Tata Consultancy Services’ recent commitment to establish a ₹13.70 billion campus in the same city, projected to create 12,000 jobs. The initiative aligns with Cognizant’s broader strategy to reduce real estate expenses by shifting focus from major urban centres to emerging hubs. In May 2023, Chief Executive Ravi Kumar S revealed plans to relinquish 11 million square feet of office space globally, predominantly in India’s largest metropolitan areas, while investing in alternative locations like Visakhapatnam. This investment also comes at a time when the global IT sector, valued at $283 billion, continues to respond to economic pressures by streamlining operations. Companies are adopting measures such as asset monetisation and postponing salary adjustments to manage costs amid fluctuating demand. Despite these headwinds, Cognizant has recently reported positive momentum. In the previous quarter, the Teaneck, New Jersey-headquartered firm raised its annual revenue guidance and surpassed expectations, driven by growing interest in AI-enabled IT services. The company now anticipates full-year 2025 revenue in the range of $20.5 billion to $21.0 billion, up from the earlier forecast of $20.30 billion to $20.80 billion. Cognizant has not issued an official comment on the Visakhapatnam development at this time. -Reuters

Vanzo Holdings Bhd has announced that its wholly owned subsidiary, Vanzo Asia Sdn Bhd (VASB), has entered into a distribution agreement with Taiwan-based Xishangxi International Marketing Co Ltd (XIMCL), marking a significant step in its regional expansion strategy. Under the terms of the agreement, XIMCL will serve as the exclusive distributor of VASB’s products across Watsons retail channels in Taiwan, encompassing both physical outlets and e-commerce platforms. The partnership was disclosed in a recent filing with Bursa Malaysia. The agreement also grants VASB the authority to permit XIMCL to expand distribution to additional prominent retail segments, including pharmacies, supermarkets, minimarkets and convenience stores. Effective from 20 June 2025, the two-year agreement will run through to 19 June 2027. VASB’s products are expected to be available across more than 500 Watsons outlets in Taiwan beginning September 2025. Vanzo highlighted that the collaboration provides a direct pathway into Taiwan’s fast-moving consumer goods (FMCG) market via one of the country’s most recognisable health and beauty retail chains. The agreement is anticipated to significantly enhance VASB’s market visibility and retail penetration across Taiwan. -The Star

South Korean internet-only lender Kakao Bank has received official approval from the Thai government to operate a virtual bank, marking a significant step in its global expansion strategy and the first re-entry of a Korean bank into the Thai financial market in 25 years. The Ministry of Finance of Thailand has selected a consortium led by Kakao Bank and SCBX, one of Thailand’s leading financial groups, as one of three successful applicants licensed to establish a virtual banking presence in the country. The announcement places Kakao Bank at the forefront of Thailand’s digital banking evolution, which aims to provide comprehensive financial services entirely through online platforms without the need for traditional brick-and-mortar branches. Yoon Ho-young, Chief Executive Officer of Kakao Bank, described the licence as a pivotal milestone in the company’s growth strategy. “This licence is a crucial step in exploring new markets and a valuable opportunity to showcase the excellence of Korea’s digital finance technology,” he stated. The consortium was highly rated for its robust digital banking infrastructure, advanced technological expertise, and strong localisation strategies—factors that aligned closely with the Thai government’s vision for a digitally driven banking future. The virtual banking system in Thailand is scheduled to enter full-scale operations in the second half of 2026, following a one-year preparation period. Kakao Bank’s involvement is expected to serve as a strategic entry point not only for Korean financial institutions but also for broader Korean corporate interests looking to establish a foothold in the Thai market. -Yonhap

Shares in Foshan Haitian, China’s leading soy sauce manufacturer, made a modestly positive debut on the Hong Kong Stock Exchange on Thursday 19 June, following a US$1.3 billion initial public offering – one of the largest in the territory so far this year. The Guangdong-based company saw its shares rise as much as 4 per cent in early trading, before settling to close at HK$36.50, up 0.55 per cent from its listing price of HK$36.30. The listing price had been set at the upper end of its offer range. The performance was notably resilient in the context of a broader market decline, with the Hang Seng Index falling by 2 per cent on the day. Chairwoman Cheng Xue described the listing as “another important milestone in Haitian’s development history”. Established in 1955 as a small family-run workshop, Foshan Haitian has since grown into China’s largest condiments producer by volume for the past 28 consecutive years. The Hong Kong debut marks its second major market entry, following its Shanghai listing in 2014. The float attracted substantial interest from cornerstone investors, with Hillhouse Capital, Singapore’s sovereign wealth fund GIC, and Royal Bank of Canada’s Global Asset Management among those committing to US$595 million worth of shares. The company also exercised its greenshoe option, signalling robust investor appetite. Proceeds from the offering are earmarked for product development, production expansion, and international market penetration, particularly across Southeast Asia and Europe. The listing comes at a time of renewed momentum for Hong Kong’s capital markets, following years of subdued activity driven by pandemic-related disruptions, domestic economic stagnation in China, and increased geopolitical scrutiny. Recent high-profile listings, including battery giant CATL and pharmaceutical group Jiangsu Hengrui, have revived optimism around the city’s IPO prospects. Edward Au, Deloitte China’s southern region managing partner, noted that Hong Kong is “well-positioned to contend for the top position in the global IPO market in 2025”, though he cautioned that broader macroeconomic and geopolitical uncertainties could still present headwinds. Foshan Haitian’s debut follows Jiangsu Hengrui’s US$1.3 billion raise in May, one of the largest biopharmaceutical IPOs globally this year, and CATL’s US$4.6 billion listing — the biggest to date in 2025. According to Bloomberg data, IPOs and follow-on share sales in Hong Kong have so far generated US$26.5 billion as of mid-June, a substantial increase from US$3.8 billion over the same period last year. The Hong Kong Stock Exchange currently has dozens of pending applications from mainland Chinese firms seeking to list, underscoring the resurgence of confidence in the city’s equity markets. -AFP