🌍 Oil Hits 16-Week Low as OPEC+ Signals Output Boost, US Shutdown Fuels Demand Worries

oil:US:UCO:Oil
Brent crude futures fell 1% to US$65.35 per barrel and US WTI crude dropped 0.9% to US$61.78, marking the lowest closes in over three months. The slide came as the US government shutdown heightened concerns over economic demand, while expectations grew that OPEC+ may boost production in November.

US:FANG:Diamondback Energy
Diamondback Energy’s CEO warned that if crude stays near US$60 per barrel, US oil production growth could stall, as fewer drilling projects remain profitable at such levels.

OPEC:OPEC:Organization of the Petroleum Exporting Countries
OPEC rejected reports that it plans to raise production by 500,000 bpd in November, stressing the importance of compliance with output quotas and compensatory cuts. However, sources said OPEC+ may still agree to boost supply as Saudi Arabia seeks to regain market share.

US:EIA:US Energy Information Administration
The EIA reported a 1.8 million-barrel increase in US crude inventories for the week ending Sept 26, above analyst forecasts of 1 million barrels, adding pressure on prices.

US:API:American Petroleum Institute
The API had earlier reported a 3.7 million-barrel draw in US crude inventories, contrasting with the EIA’s build figures and adding uncertainty to supply-demand signals.

US:DGT:Dow Jones Industrial Average
The US government entered a shutdown as Congress failed to reach a funding deal. Agencies warned of delayed key economic data, while the White House said worker layoffs could follow. President Donald Trump’s tariffs continued to weigh on factory activity, even as manufacturing edged higher in September.

RU:Russia:Russian Oil Exports
Russia’s crude loadings from western ports rose 25% in September despite refinery outages caused by Ukrainian drone attacks. Deputy PM Alexander Novak said domestic fuel supply was under control, though some regions faced shortages.

VE:PDVSA:Petróleos de Venezuela
Venezuela’s state-run PDVSA lifted oil exports to 1.09 million bpd in September, the highest since February 2020, despite ongoing US sanctions.

🚀 Hong Kong Markets Buzz: KWG Restructures, HSBC Turmoil, Tech & Pharma Shakeups

HK:1813.HK:KWG Group
KWG Group announced successful restructuring of three onshore corporate bonds issued by its subsidiaries Guangzhou Hejing Holdings and Guangzhou Tianjian Real Estate, marking completion of its domestic bond restructuring efforts.

HK:1398.HK:ICBC
ICBC confirmed that the National Financial Regulatory Administration approved Yao Mingde’s qualification to concurrently serve as CFO, with the appointment effective immediately.

HK:1357.HK:Meitu
HK:9988.HK:Alibaba Group
US:BABA:Alibaba Group
Meitu’s DesignKit has integrated with Alibaba’s Quick QianNiu backend, providing Taobao and Tmall merchants with AI product image generation tools.

HK:0005.HK:HSBC Holdings
HSBC Chairman Mark Tucker resigned, leaving the group without a successor. UK regulators urged the bank to speed up the appointment process amid market unease.

HK:9888.HK:Baidu
Guotai Haitong Securities cut Baidu-SW’s target price to USD176 but kept its “Overweight” rating, citing confidence in long-term prospects despite short-term pressures.

HK:9618.HK:Kuaishou
Kuaishou surged 7% to lift the Hang Seng Tech Index over 2% midday, supported by continued momentum in chip and tech stocks.

HK:2209.HK:Zijin Gold International
HK:2899.HK:Zijin Mining
Zijin Gold International closed up 60.8% at HKD115.1 on its debut, with turnover above HKD10 billion. Parent Zijin Mining also hit fresh highs as gold demand surged.

HK:603259.HK:WuXi AppTec
WuXi AppTec jumped over 5% at midday after management said new output could be increased within two months, drawing strong investor interest.

HK:1177.HK:Sino Biopharmaceutical
Guotai Junan initiated coverage of Sino Biopharm with a “Buy” rating and a HKD10 target price, citing strong pipeline growth.

HK:1876.HK:Budweiser Brewing APAC
JPMorgan slashed Budweiser Brewing APAC’s target price to USD8.5, keeping a “Neutral” rating but highlighting attractive dividend potential.

HK:3690.HK:Meituan
Soochow Securities listed Meituan among the top HK stocks with highest net buys by Southbound funds last week, underscoring renewed mainland investor interest.

HK:2015.HK:Li Auto
HK:1211.HK:BYD
Goldman Sachs projected BYD’s Denza N8L sales to average 6,000 units per month, surpassing Li Auto’s L8 model in performance expectations.

HK:2400.HK:XD Inc
Goldman Sachs raised XD Inc’s target price to HKD81.4 while maintaining a “Neutral” rating, noting stable business fundamentals.

HK:2105.HK:Laekna
DBS cut Laekna-B’s target price to HKD24.16 but reiterated its “Buy” call, citing long-term growth potential in innovative drug development.

💥 Malaysia Deal Flow Heats Up: Banks Tap CP, Energy Restructures, and Solar Wins

KL:1295.KL:Public Bank Berhad
Public Bank launched a RM10 billion commercial paper programme to raise short-term funds over seven years, lodged via the Securities Commission Malaysia’s Lodge & Launch Framework through Public Investment Bank Berhad.

KL:1066.KL:RHB Bank Berhad
RHB introduced a combined RM5 billion multi-currency commercial paper and sukuk murabahah programme under the Lodge & Launch Framework to fund general banking needs, working capital, or refinancing.

KL:6033.KL:Petronas Gas Berhad
Petronas Gas will separate regulated and non-regulated businesses by transferring gas transportation, processing and utilities into wholly owned subsidiaries, after securing Ministry of Finance tax-exemption approval for the restructuring.

KL:7099.KL:Mayu Global Group Berhad
Mayu Global said MACC has frozen bank accounts of its 80%-owned unit Sunrise Manner Sdn Bhd and summoned a director; the company has not received details of the investigation.

KL:4847.KL:Epicon Berhad
Epicon received a RM26.15 million demand from Tan Chong Industrial Equipment Sdn Bhd relating to a 2016 settlement over bus lease and maintenance obligations.

KL:4405.KL:Tan Chong Motor Holdings Berhad
A unit of Tan Chong is seeking RM26.15 million from Epicon tied to lease and maintenance settlements, according to a legal demand served to Epicon.

KL:7094.KL:Eurospan Holdings Berhad
The mandatory general offer by new controlling shareholder Samuel Ng closed with acceptances lifting his stake to 84.11%, consolidating control of the furniture maker.

KL:9261.KL:Gadang Holdings Berhad
A Gadang-led consortium won a RM52 million EPCC contract for a 15MWac LSSPV project in Tawau, Sabah, awarded by Tenaga Aspirasi Sdn Bhd.

KL:0369.KL:JS Solar Holding Berhad
As part of the Gadang–JS Solar consortium, JS Solar will undertake EPCC works on the 15MWac LSSPV plant in Tawau under the RM52 million award.

KL:2429.KL:Tanco Holdings Berhad
Tanco partnered with China Civil Engineering Construction Corp under a 51:49 JV framework to explore EPC works and financing for Malaysian transport infrastructure projects.

🔥 Deals, Deliveries & Shutdown Dramas Rock Global Markets

SGX:5WH.SI:Rex International
Rex International boosted its stake in Lime Petroleum to 89.74% through a share swap deal, strengthening its position in the energy business.

US:BRK.A:Berkshire Hathaway
Warren Buffett’s Berkshire Hathaway is reportedly close to a US$10 billion deal to acquire OxyChem, the chemical unit of Occidental Petroleum, marking another bold expansion into energy and materials.

SGX:BJK.SI:Digilife Technologies
Digilife Technologies acquired a 51% stake in a sustainable building materials manufacturer for US$4.9 million, broadening its exposure to green construction solutions.

SGX:YF8.SI:Yangzijiang Financial Holding
Yangzijiang Financial Holding, alongside Xiamen TCL Industrial Investment Co and China Orient Asset Management Co, will jointly control 23.36% of HK:600884.HK:Ningbo Shanshan Co, a lithium battery anode material producer. Yangzijiang will invest RMB 1.02 billion, equal to about 4.5% of its market cap, with the aim of stabilizing Shanshan’s restructuring and supporting its role in the EV and new energy sectors.

US:NIO:Nio Inc
Nio delivered 34,749 vehicles in September 2025, a 64.1% year-on-year surge. Quarterly deliveries rose 40.8% to 87,071 units, fueled by its NIO, ONVO and FIREFLY brands. Cumulative deliveries now stand at 872,785 vehicles.

US:DGT:Dow Jones Industrial Average
US:S27.SI:S&P 500
US:QQQ:Nasdaq Composite
Markets braced for volatility as President Donald Trump warned that “a lot of good” could come from a government shutdown, hinting at mass federal worker layoffs. With 750,000 employees at risk of furlough, Democrats and Republicans remain deadlocked over healthcare tax credits. House Speaker Mike Johnson and Senate leaders Chuck Schumer and John Thune exchanged blame as the funding deadline loomed.

SGX:JYEU.SI:Lendlease Global Commercial REIT
Lendlease Global Commercial REIT secured a new U.S. technology tenant for its Milan property, lifting occupancy to 49% and bolstering its European portfolio.

📈 Wall Street Shrugs Off Shutdown as Pharma, Tech & Gold Surge

US:S27.SI:S&P 500
The S&P 500 logged a fresh record high, rising 0.34% to close at 6,711.20, as investors brushed aside U.S. government shutdown worries. The US:QQQ:Nasdaq Composite climbed 0.42% and the US:DGT:Dow Jones Industrial Average gained 43 points, or 0.09%. Traders bet the funding stoppage will be short-lived, despite stalled talks between Democrats and Republicans. Market strategists note the Federal Reserve is still expected to cut rates in October, even as an economic data blackout delays payroll reports.

US:BIIB:Biogen
US:MRK:Merck
US:BMY:Bristol Myers Squibb
US:PFE:Pfizer
Pharmaceutical stocks extended gains after President Donald Trump announced a drug pricing deal with Pfizer. Biogen soared 10% during trading and added another 2% after-hours. Merck gained 7.4% and Bristol Myers 5.2%, both edging higher post-close. Pfizer shares jumped 14% for the week on the rollout of “TrumpRx,” a direct-to-consumer platform.

US:REGN:Regeneron Pharmaceuticals
US:MRNA:Moderna
Health-care stocks boosted indexes, with Regeneron and Moderna leading Wednesday’s rally. The US:XLV:Health Care Select Sector SPDR ETF touched its highest level since April. Merck, Pfizer, and US:LLY:Eli Lilly all logged their strongest weeks in years.

US:INTC:Intel
US:AMD:Advanced Micro Devices
Chipmaker Intel surged 7% after reports it is in early talks with AMD to manufacture chips through its foundry business. Intel is up 40% since the Trump administration took a 10% stake in August, while AMD rose 1% on the news.

US:TSLA:Tesla
US:RIVN:Rivian
Electric vehicle makers Tesla and Rivian are set to report Q3 deliveries. Tesla eyes a fifth straight week of gains, while Rivian heads for its weakest week in a month.

US:REDDIT:Reddit
Reddit shares tumbled 12% after data showed a decline in ChatGPT citations for the platform. The stock is pacing for its worst week since April.

US:NPH:Neptune Insurance Holdings
Neptune Insurance surged 24% in its NYSE debut, making it the nation’s largest private flood insurer. Its timing coincides with the federal shutdown freezing new flood insurance applications.

US:GLD:SPDR Gold Shares
US:BTC:Bitcoin
Gold extended a breakout, hitting record highs with momentum traders driving inflows. Analysts caution gold’s rally could pause, with Bitcoin poised for a seasonal Q4 bounce. Capital rotation into crypto is seen as likely, as Bitcoin historically rallies in October and November.

US:FERMI:Fermi America
Data center developer Fermi America jumped 40% in its Nasdaq debut, raising $683 million in its IPO. The company is developing a Texas campus with potential output of 11 GW by 2038, combining nuclear, natural gas, and solar power.

Singapore Banks Drive Dividend Growth in H1 2025, Capital Group Study Shows

Singapore’s three local banks led dividend growth in the first half of 2025, according to a study by asset manager Capital Group.

Singapore-listed companies paid out US$8.2 billion in dividends in H1, a 13.1% increase year-on-year after adjusting for one-off special dividends, exchange rates and other factors.

DBS Group Holdings was the key driver of core dividend growth, raising its quarterly payout to S$0.60 per share and adding a capital return dividend of S$0.15 per share for both Q1 and Q2. That lifted total payouts each quarter to S$0.75, up from S$0.54 a year earlier.

United Overseas Bank (UOB) declared an interim dividend of S$0.85 per share for H1, slightly down from S$0.88 last year, but also issued a special dividend of S$0.25.

Oversea-Chinese Banking Corp (OCBC) paid an interim dividend of S$0.41 per share, down from S$0.44, alongside a special dividend of S$0.16 for FY2024.

Capital Group noted that strong earnings and robust capital buffers allowed Singapore banks to return more cash to investors via dividends and buybacks. Globally, the financial sector accounted for two-fifths of dividend growth in H1, supported by favorable conditions and its large weight in the market.

Core dividend payouts worldwide rose 6.2% year-on-year to a record US$1.14 trillion, with banks driving nearly half of that increase. Sector-wide, core dividends grew 9.2% to US$299 billion.

DBS ranked among the top 13 global banking contributors to dividend growth, alongside Mitsubishi UFJ Financial Group in Japan and JPMorgan Chase in the US.

In Asia-Pacific (excluding Japan, China and Hong Kong), dividends rose 5.2% on a core basis to US$47.5 billion, led by Taiwan, South Korea and Singapore.

Looking ahead, Capital Group expects dividend growth in H2 2025 to remain strong, particularly from Singapore banks, Taiwanese technology, shipping, Japan’s broad market, and Spanish utilities.

Pop Mart Bets on Labubu to Become China’s Mickey Mouse

China’s Pop Mart is taking cues from Disney as it looks to turn the runaway success of its toothy monster Labubu into a century-spanning franchise, Executive Director and co-COO Si De told Reuters in a rare interview.

Labubu has already broken new ground by becoming the first Chinese product to win a global audience for its emotional and creative appeal, rather than being seen purely as a value-for-money item. Pop Mart now wants to build on that momentum.

“We have learnt from Disney for a long time. In fact, Disney’s great value lies in its ability to operate IP over the long-term, even up to 100 years,” Si said, citing the enduring legacy of Mickey Mouse.

While analysts warn that Pop Mart’s reliance on Labubu could be risky as the craze inevitably cools, the company sees opportunities to spin out content, entertainment, theme parks and merchandise in the same way Disney has built empires around its most popular characters.

Si declined to disclose timelines or investment figures but said the near-term focus is not on creating the “next big hit.” Instead, the company plans to enhance Labubu’s presence through product innovation, collaborations, content, theme parks and retail displays. Over time, the goal is to develop five to 10 IPs with similar long-term potential.

Labubu’s global boom has already supercharged Pop Mart’s fortunes. The Hong Kong-listed company’s shares have soared nearly 200% this year, pushing its market value above that of Hasbro, Mattel and Sanrio combined.

“Pop Mart is selling a lifestyle that consumers are buying because they want to be part of it,” said Louis Houdart, China managing partner at consulting firm Mad, noting that its margins now rival some luxury brands.

Yangzijiang Financial’s Major Spin-Off: Shareholders Approve Maritime Listing, Capital Reduction & Strategic Shift

Summary of Key Developments

Yangzijiang Financial Holding Ltd (YZJFH) has secured shareholder approval for a game-changing corporate restructuring: the spin-off and SGX listing of its maritime business, YZJ Maritime. This move, constituting a major transaction under Chapter 10 of the Singapore Exchange Listing Manual, will reshape the Group’s financial and operational landscape, with critical implications for existing shareholders and potential share price volatility.

Details of the Extraordinary General Meeting (EGM) and Major Resolutions

• Date & Venue: 4 September 2025, Singapore
• Chairman: Ren Yuanlin (with Leon Yee Kee Shian presiding)
• Voting: All resolutions passed by poll with overwhelming majority

1. Spin-Off of YZJ Maritime

• Shareholders approved the spin-off of YZJ Maritime, encompassing the Group’s Maritime Fund and Maritime Investments Business.
• Each YZJ Financial shareholder as of the books closure date will receive one share of YZJ Maritime for every YZJ Financial share held, representing a full distribution in specie of YZJ Maritime’s equity.
• Post-spin-off, YZJ Maritime will be independently listed, with Ren Yuanlin remaining the largest shareholder via YZJ Settlement, alongside his son and granddaughter.
• Special provisions apply to overseas shareholders to ensure compliance with foreign laws; their entitlements may be sold on their behalf if direct distribution is impractical.

2. Capital Reduction and Share Distribution

• The Group’s issued and paid-up capital will be reduced by approximately S\$2.0 billion (from S\$4.09 billion to S\$2.09 billion), reflecting the carve-out of YZJ Maritime’s assets.
• Importantly, the reduction in book value and NTA is solely due to the carve-out, with no impairment recognised—a crucial point for NAV-sensitive investors.

3. Potential Dilution from Placement & Rights Issue

• Shareholders approved a potential dilution of YZJ Financial’s interest in YZJ Maritime by 20% or more, resulting from a proposed placement of new shares worth up to S\$250 million.
• Management clarified that the placement size and price are not fixed and will depend on market conditions. The illustrative 20% dilution is not a guarantee, but investors should be wary of dilution risks if share placement proceeds at steep discounts.
• The placement is intended to bring institutional investors on board and enhance market valuation, but management is inclined to prioritize a rights issue for existing shareholders over large placements, with Mr Ren potentially underwriting any unsubscribed rights.
• There will be no impairment charges arising from the restructuring. The dilution and capital reduction are structural, not due to asset write-downs.

Other Price-Sensitive Issues & Strategic Shifts

• Post-spin-off Financial Profile: YZJ Maritime will have a book value and NTA of approximately S\$2.0 billion, with majority control remaining with the Ren family. Shareholders will be entitled to YZJ Maritime shares based on their holdings in YZJ Financial.
• Legacy Business Strategy: YZJ Financial will focus on regional diversification, especially in Southeast Asia, with a continued reduction in China debt investments (down to 27% of AUM as of June 2025). Management is committed to prudent asset rotation, debt recovery, and reinvestment into higher-yield opportunities, including Singapore’s small/mid-cap enterprises.
• Risks & Recovery: The company has made provisions for non-performing loans in China, and any asset disposals exceeding 20% of total assets will require further shareholder approval, safeguarding investor interests.
• Market Sensitivity: Management flagged that both remaining and spin-off groups are expected to grow sustainably, but specific forward-looking financials were not disclosed due to regulatory constraints.
• Leadership Continuity: Ren Yuanlin will lead YZJ Maritime but remains the largest shareholder of YZJ Financial, with oversight and confidence in both entities. The management team has been strengthened to maintain operational and financial discipline.
• Geopolitical Risks: YZJ Maritime’s exposure to tariffs and port fees targeting Chinese vessels is limited due to its diversified business model and risk management framework.

Thank you