Argentina loosens visa requirement for Chinese citizens
The decision by President Javier Millei was made to boost tourism and 'deactivate' mechanisms which have 'impeded the free development of Argentina's economy, of which tourism is a strategic area,' according to a statement on the Argentine government's website.
It comes after China in May extended its visa-free policy to citizens of Argentina as well as those of Brazil, Chile, Peru and Uruguay, putting some of Latin America's largest economies on equal footing with many European and Asian countries.
In line with the exemption adopted by China, it is 'deemed appropriate to adopt equivalent measures for Chinese nationals holding ordinary passports who enter for tourism and business purposes,' the statement said.
China is Argentina's second-largest trading partner after Brazil and a key investor in infrastructure, energy and mining projects in the country.
China has also extended a multi-billion dollar swap line to Argentina, mollifying billions of dollars in repayments that the Latin American nation needs to pay in the coming months.
Argentina is also part of China's Belt and Road Initiative, which it joined in 2022. - Reuters
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
18 minutes ago
- New Straits Times
Japan stocks surge, bonds slide after Trump says trade deal reached
Previous Next TOKYO: Japanese automaker's shares led a surge in the Nikkei share average on Wednesday, while bonds slid after US President Donald Trump said he had reached a trade deal with Tokyo. The Nikkei rallied 2.4 per cent to 40,731.86, as of 0121 GMT, with the Tokyo Stock Exchange's transport equipment index surging 8.4 per cent. Toyota Motor soared 10.9 per cent. Benchmark 10-year Japanese government bond futures tumbled as much as 1.01 yen to 137.59 yen, their lowest since March 28. The cash 10-year JGB slumped, sending the yield up 8.5 bps at 1.585 per cent. Trump on Tuesday said in a post on his Truth Social platform that the US and Japan had struck a trade deal that includes a 15 per cent tariff that will be levied on US imports from the Asian country, down from a threatened levy of 25 per cent. Japanese national broadcaster NHK reported that specific duties on Japanese auto imports would be 15 per cent instead of 25 per cent, citing government sources. "Though details are not yet available, it is commendable that the 25 per cent baseline tariff was avoided," said Norihiro Yamaguchi, senior Japan economist at Oxford Economics in Tokyo. "Lowered uncertainty will be welcomed in the equity market." Bank shares also gained, sending the TSE's banking index up 3.7 per cent. The reduced economic uncertainty helped to clear the path for the Bank of Japan to resume interest rate hikes, with its next policy meeting set for Wednesday and Thursday of next week. "I don't think this alone will lead to a Bank of Japan rate hike next week, but the possibility of a rate hike between September and October has increased," said SMBC chief currency strategist Hirofumi Suzuki. "This will create pressure to buy yen." The yen flipped between gains and losses immediately after Trump's social media post. It was last up about 0.1 per cent to 146.48 per dollar.
New Straits Times
18 minutes ago
- New Straits Times
Car sales set to skid further as headwinds mount
KUALA LUMPUR: After a sluggish first half of 2025, Malaysia's auto market appears to be hitting the brakes hard, with analysts signalling a further slowdown in sales momentum for the rest of the year. Following three consecutive years of record-breaking sales, the market now appears to be settling into a more subdued phase, marked by shrinking order backlogs, tighter loan approvals and intensifying price competition. "The market is showing signs of normalisation amid weakening order backlogs, tighter loan approvals and intensifying price competition, particularly in the non-national segment," said RHB Research analyst Iftaar Hakim Rusli. Total industry volume (TIV) for the first half fell 4.6 per cent year-on-year to 373,636 units, according to the Malaysian Automotive Association (MAA). Despite the softer start, MAA raised its full-year sales forecast to 800,000 units, up from an earlier projection of 765,000. RHB Research is holding a more cautious view, maintaining its 2025 TIV forecast at 730,000 units, which represents an 11 per cent decline from last year. Iftaar said the biggest drag is expected to come from non-national marques, many of which are now feeling the heat from an influx of aggressively priced models, especially from Chinese entrants. These new players have forced incumbents into deep discounting, a move that, while good for consumers, is destabilising the market. "Some buyers may delay their purchases in anticipation of further price cuts from both existing and new non-national marques, thereby destabilising the non-national segment," he said in a research note. Loan approval rates have also taken a hit, dropping to 55 per cent year-to-date from 58 to 63 per cent in the 2022 to 2024 period. Order backlogs, once a sign of healthy demand, are thinning too, with Perodua's backlog falling from 100,000 units to 90,000 and Toyota's from 20,000 to 15,000, said Iftaar. He added inflationary pressures are compounding the problem, squeezing household budgets just as competition heats up. In the electric vehicle (EV) segment, Iftaar expects growth to continue but remain modest due to high prices and limited charging infrastructure. The current tax exemptions for completely built-up (CBU) EVs, which have supported early adoption, are unlikely to be extended beyond end-2025, as the government shifts its focus to incentivising locally assembled EVs. "An extension of the tax holiday for CBU EVs would be counterproductive for incentivising original equipment manufacturers to establish local production facilities. "While we expect EV numbers to continue picking up in the coming months, growth in market share is likely to remain moderate due to structural headwinds, such as high pricing and limited availability of charging infrastructure. "As such, EVs are unlikely to influence overall TIV in the near term," he said. Another overhang is the impending implementation of the revised open market value (OMV) excise duty in January 2026. Iftaar said that although the measure was recently deferred again, it could lead to a 10 to 30 per cent price hike for completely knocked down vehicles unless mitigated by the authorities. He noted that the Finance Ministry has signalled that such a steep hike is unlikely but has yet to finalise the new pricing methodology. "The new OMV takes into account the engineering work, royalty payments and license fees, amongst others. "For CBU vehicles, prices are based on the cost, insurance and freight, on which import and excise duties are imposed," he said. Meanwhile, HLIB Research revised its 2025 TIV forecast slightly higher to 770,000 units to reflect stronger-than-expected demand, supported by aggressive sales and promotional campaigns as well as the launch of new, attractive models. HLIB analyst Daniel Wong said order backlogs have eased to between 120,000 and 130,000 units, with Perodua accounting for the bulk at about 100,000 units. He said Perodua is on track to sustain its sales momentum through year-end, aiming for 345,000 units in 2025, backed by steady order intake and production levels. "While the TIV outlook remains robust, we expect margins to come under pressure due to intensifying competition across the market. "We expect continued stiff competition for the RM100,000 to RM200,000-priced segment due to normalising of consumer demand and aggressive new launches and sales campaigns," he said. Wong added that companies with significant exposure to the US dollar, such as Toyota and Nissan, stand to benefit from the stronger ringgit. Meanwhile, Honda and Mazda, with heavier Japanese yen exposure, may continue to benefit from the relatively weak yen.
The Star
42 minutes ago
- The Star
Long-running hedge fund closes down
Turbulent markets: Motorists go about their routines with the central business district of Singapore in the background. New Silk Road's closure comes as smaller hedge funds face increasingly tough conditions. — Bloomberg SINGAPORE: One of Singapore's longest-running hedge funds, New Silk Road Investment, is shutting down after weak returns and a pullback by US investors in Asia led to a sharp drop in assets. The firm, started by two finance veterans about 16 years ago, saw assets under management plummet to US$615mil (S$787mil) as at December 2024, from almost US$2bil as recently as 2021. The closing comes as smaller hedge funds face increasingly tough conditions, from turbulent markets and geopolitical strife to the popularity of giant rivals whose myriad investment pods have attracted much of the available money. 'Our traditional source of funding from the US institutions had over the last several years been less enthusiastic about liquid equity investments in Asia, in no small part due to geopolitical reasons,' said co-founder Hoong Yik Luen. All remaining capital will be returned to investors and the vehicles shuttered, he added in an email. New Silk Road was a relative pioneer in Singapore's finance scene when it was founded in 2009 by Hoong, former head of Hong Kong-China equity products at Deutsche Bank, according to his LinkedIn profile, and Raymond Goh, former head of Asian equities at GIC. At the time, the entire hedge fund market in Singapore managed just S$59bil, a far cry from S$327bil as at December, according to the latest available data from the Monetary Authority of Singapore. The fund was among the early foreign investors in China, with a team on the ground in Shanghai. When it was approved for investing in yuan-denominated mainland Chinese stocks and bonds under the Qualified Foreign Institutional Investor programme in 2012, fewer than 200 firms had received such licences from the China Securities Regulatory Commission. But in recent years, performance suffered. Three of the past five years saw negative returns for both the Asia Landmark Fund and the China Fund, with declines of 28% and 19%, respectively, in 2022, according to people familiar with the matter. That same year, China's benchmark CSI 300 Index plummeted by 22%. The slump stretched into 2023, hitting many veteran China investors and forcing some to close shop. The firm had been particularly popular with US institutional investors, many of whom became wary of investing in Asia and began redeeming their funds, according to people familiar. 'We are just one of many active value funds in Asia that have not been the favour of the time,' Hoong said. 'The market has changed in such a way that it disfavours longer-term fundamental investing approach with value bias.' New Silk Road attempted to scale back earlier in 2025, reducing staff in Shanghai and shuttering a South-East Asia fund it had launched more recently, Hoong added. It is not clear how many staff members will be affected. While acknowledging that 'active management in Asia has been tough', Hoong said the firm was not forced to wind down due to deficits. He added that Singapore is still a successful hub for hedge funds. Instead, the two founders opted for a slower pace, and their successors were not ready to take the reins. 'We had just decided to hang up our boots to return the capital to our investors so that they can pursue a more appropriate strategy of the time,' he said. 'It's as simple as two veterans choosing a different path in life.' — Bloomberg
