Chinese Data Center Firm GDS Seeks Record $3.4 Billion Loan
Chinese data center operator GDS Holdings Ltd. is seeking a $3.4 billion-equivalent loan for its data center operations in Malaysia, people familiar with the matter said.
The borrowing would be its biggest ever loan. It would also be among the largest financings for the sector by any borrower in Asia.
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CNBC
an hour ago
- CNBC
Trade tensions aren't stopping Chinese companies from pushing into the U.S.
BEIJING — Chinese companies are so intent on global expansion that even the biggest stock offering to date on Shanghai's tech-heavy STAR board counts the U.S. as one of its biggest markets, on par with China. Shenzhen-based camera company Insta360, a rival to GoPro, raised 1.938 billion yuan ($270 million) in a Shanghai listing Wednesday under the name Arashi Vision. Shares soared by 274%, giving the company a market value of 71 billion yuan ($9.88 billion). The United States, Europe and mainland China each accounted for just over 23% of revenue last year, according to Insta360, whose 360-degree cameras officially started Apple Store sales in 2018. The company sells a variety of cameras — priced at several hundred dollars — coupled with video-editing software. Co-founder Max Richter said in an interview Tuesday that he expects U.S. demand to remain strong and dismissed concerns about geopolitical risks. "We are staying ahead just by investing into user-centric research and development, and monitoring market trends that ultimately meet the consumer['s] needs," he told CNBC ahead of the STAR board listing. China launched the Shanghai STAR Market in July 2019 just months after Chinese President Xi Jinping announced plans for the board. The Nasdaq-style tech board was established to support high-growth tech companies while raising requirements for the investor base to limit speculative activity. In 2019, only 12% of companies on the STAR board said at least half of their revenue came from outside China, according to CNBC analysis of data accessed via Wind Information. In 2024, with hundreds more companies listed, that share had climbed to more than 14%, the data showed. "We are just seeing the tip of the iceberg. More and more capable Chinese firms are going global," said King Leung, global head of financial services, fintech and sustainability at InvestHK. Leung pointed to the growing global business of Chinese companies such as battery giant CATL, which listed in Hong Kong last month. "There are a lot of more tier-two and tier-three companies that are equally capable," he said. InvestHK is a Hong Kong government department that promotes investment in the region. It has organized trips to help connect mainland Chinese businesses with overseas opportunities, including one to the Middle East last month. Roborock, a robotic vacuum cleaner company also listed on the STAR board, announced this month it plans to list in Hong Kong. More than half of the company's revenue last year came from overseas markets. At the Consumer Electronics Show in Las Vegas this year, Roborock showed off a vacuum with a robotic arm for automatically removing obstacles while cleaning floors. The device was subsequently launched in the U.S. for $2,600. Other consumer-focused Chinese companies also remain unfazed by heighted tensions between China and the U.S. In November, Chinese home appliance company Hisense said it aimed to become the top seller of television sets in the U.S. in two years. And last month, China-based Bc Babycare announced its official expansion into the U.S. and touted its global supply chain as a way to offset tariff risks. Chinese companies have been pushing overseas in the last several years, partly because growth at home has slowed. Consumer demand has remained lackluster since the Covid-19 pandemic. But the expansion trend is now evolving into a third stage in which the businesses look to build international brands on their own with offices in different regions hiring local employees, said Charlie Chen, managing director and head of Asia research at China Renaissance Securities. He said that's a change from the earliest years when Chinese companies primarily manufactured products for foreign brands to sell, and a subsequent phase in which Chinese companies had joint ventures with foreign companies. Insta360 primarily manufactures out of Shenzhen, but has offices in Berlin, Tokyo and Los Angeles, Richter said. He said the Los Angeles office focuses on services and marketing — the company held its first big offline product launch in New York's Grand Central Terminal in April. Chen also expects the next phase of Chinese companies going global will sell different kinds of products. He pointed out that those that had gone global primarily sold home appliances and electronics, but are now likely to expand significantly into toys. Already, Beijing-based Pop Mart has become a global toy player, with its Labubu figurine series gaining popularity worldwide. Pop Mart's total sales, primarily domestic, were 4.49 billion yuan in 2021. In 2024, overseas sales alone surpassed that to hit 5.1 billion yuan, up 373% from a year ago, while mainland China sales climbed to 7.97 billion yuan. "It established another Pop Mart versus domestic sales in 2021," said Chris Gao, head of China discretionary consumer at CLSA. The Hong Kong-listed retailer doesn't publicly share much about its global store expansion plans or existing locations, but an independent blogger compiled a list of at least 17 U.S. store locations as of mid-May, most of which opened in the last two years. The toy company has been "very good" at developing or acquiring the rights to characters, Gao said. She expects its global growth to continue as Pop Mart plans to open more stores worldwide, and as consumers turn more to such character-driven products during times of stress and macroeconomic uncertainty.
CNBC
2 hours ago
- CNBC
Tariffs are the biggest macroeconomic concern for two in three investors, poll finds
Mounting trade tensions and tariffs have become the single biggest worry for global investors, overshadowing all other economic risks, a new survey shows. Nearly two-thirds (63%) of institutional investors and wealth managers identified trade levies as the most significant macroeconomic concern impacting their strategy, according to a survey published by British investment manager Schroders. The perceived risk from tariffs was more than six times greater than the next highest-ranking concern. The poll, which surveyed nearly 1,000 top investors representing a combined $67 trillion in assets, found that this trade uncertainty is fueling a demand for stability. The study was done between April and May, and ahead of the announcement of the trade deal that U.S. President Donald Trump said was reached with China. The agreement struck on Wednesday is subject to final approval by Trump and Chinese President Xi Jinping, the White House leader said. Meanwhile, the Schroders survey indicated that about four in five investment professionals polled also said they are likely to increase their allocation to actively managed investments in the coming year, in a bid to stem the volatility caused by macroeconomic events. "Resilience now tops the investment agenda, as the rising tide no longer lifts all boats," said Johanna Kyrklund, group chief investment officer at Schroders. "The wider backdrop is that financial markets are still adjusting back to structurally higher interest rates, made painful in many cases by high levels of debt. This is raising questions about future market trends and the value of passive approaches in a period of greater uncertainty." Kyrklund added, "In this environment, active strategies provide the control investors need to manage complexity, create portfolio resilience and seize opportunities."
Yahoo
2 hours ago
- Yahoo
Trump says he is open to extending trade deal deadline for other countries: 'I would'
President Donald Trump said Wednesday he was willing to extend the deadline for countries to reach a trade deal with the United States, but he doesn't think it will be necessary. At the same time, he also indicated that in one to two weeks his administration would be sending out letters telling countries "what the deal is." Trump made the remarks ahead of a performance of "Les Misérables" that he attended at the Kennedy Center in Washington with the first lady. Trump Administration Prevails As Appeals Court Pauses Lower Court Decision Blocking Contested Tariffs "I would," Trump said when asked if he would be willing to extend the July 8 deadline for countries to negotiate a trade deal or else face steep tariffs. "But I don't think we're going to have that necessity," the president added, telling reporters "we're rocking in terms of deals" right now. Shortly after announcing sweeping tariff policies on April 2 for virtually every U.S. trading partner, the Trump administration chose to institute a 90-day pause to give countries a chance to make a deal with the United States. Read On The Fox News App Trump noted during the gaggle with reporters ahead of Wednesday's Kennedy Center performance that the United States remains in talks with about 15 countries with whom it is still trying to cement a deal. But the president said that he intends to send letters to these partners setting unilateral tariff rates if a deal is not reached. "We're dealing with Japan. We're dealing with South Korea. We're dealing with a lot of them. We're dealing with about 15 countries. But as you know, we have about 150-plus, and you can't [make a deal with all of them]. So we're going to be sending letters out in about a week and a half, two weeks, to countries and telling them what the deal is." Trump's Tariff Strategy Could Pay For His Tax Bill, But Only If They Stick, Experts Warn "At a certain point, we're just going to send letters out … saying this is the deal, you can take it or leave it," Trump added. Highly anticipated trade talks with China held in London this week led to a preliminary agreement between the world's two biggest economic powers, but the "framework" is still pending final approval from Chinese President Xi Jinping and Trump. "We made a great deal with China. We're very happy with it," Trump told reporters at the Kennedy Center on Wednesday evening. "We have everything we need, and we're going to do very well with it. And hopefully they are, too."Original article source: Trump says he is open to extending trade deal deadline for other countries: 'I would'
