Never a dull moment in trying to differentiate China financial noise from signal. Just yesterday, we were lauding Geely and SK's new transportation tech fund. Today, the former is at the center of swirling rumors, stirred by the China Securities Regulatory Commission (CSRC) taking longer than the usual three months, to review Geely's planned listing on Shanghai's STAR market.
"When is it cause for alarm when a government entity, let alone a Chinese one, takes longer than usual to process paperwork?" quips Jimmie Jeremejev. "In any event, we stick with our macro logic. China must develop its STAR market, as a core component of the new "duel circulation" economy. Geely is China's largest domestic automaker, and is using proceeds to lead the way in cleaner, greener transportation tech. If there is any trouble in listing, it will be due to something truly amiss in Geely's reporting, not any general crack-down on strong domestic companies listing in Shanghai."