Commodities Update — Gold gains; Corn recovers from one-week low; Carlsberg Q2 sales below analysts expectations

RIYADH: Private equity firm PAG, backed by Blackstone Inc., is considering a delay of its planned initial public offering in Hong Kong amid market volatility, Bloomberg reported, quoting people familiar with the matter. 

According to the report, the firm led by Chinese dealmaker Weijian Shan, is now more likely to make its debut in 2023. 

The firm has taken this decision due to market volatility which will lead investors to demand steep discounts, ultimately resulting in weak trading in the initial days, the people, who wished to stay anonymous, said. 

Bloomberg News has previously reported that the firm’s offering could raise as much as $2 billion. 

Yuan firms

China’s yuan firmed on Wednesday, recovering from a three-month low hit in the previous session on growing signals Beijing will provide more support to shore up growth in the struggling economy.

Traders were also eyeing minutes from the Federal Reserve’s July meeting due later in the day for any new clues on how large the central bank’s interest rate hike is likely to be in September.

The People’s Bank of China set the midpoint rate at 6.7863 per dollar prior to market open, weaker than the previous fix of 6.773.

In the spot market, the yuan opened at 6.7800 per dollar and was changing hands at 6.7711 at midday, 179 pips firmer from the previous late session close.

Stocks up

China and Hong Kong stocks climbed on Wednesday, led by gains in developers on rising hopes that the government would roll out supportive measures to prop up the country’s ailing property sector.

By the midday break, the benchmark Shanghai Composite index had climbed 0.3 percent, while the blue-chip CSI 300 index was up 0.7 percent.

In Hong Kong, the benchmark Hang Seng Index advanced 0.8 percent, while the Chinese H-shares listed in Hong Kong also gained 0.8 percent.

China pares back holdings of US Treasuries

China slashed holdings of US Treasuries for a seventh consecutive month in June, Treasury Department data released on Monday showed, with investors closely tracking this measure in the wake of tensions between the world’s two largest economies involving Taiwan.

China’s stash of US government debt dropped to $967.8 billion in June, the lowest since May 2010 when it held $843.7 billion. 

In May, the world’s second-biggest economy had $980.8 billion in Treasuries, data showed. China’s hoard of US debt has seen multiple 12-year lows in the last few months.

Data also showed Japan increased its holdings of Treasuries to $1.236 trillion in June, from a revised $1.224 trillion in May. The Treasury report released in July showed Japan had $1.213 trillion in Treasuries for the month of May.

Overall, foreign holdings of Treasuries rose to $7.430 trillion in June from a revised $7.426 trillion in May.

(With input from Reuters)