Opening Bell ð is Tech in Asiaâs free newsletter that brings you the biggest news and latest trends around Asiaâs publicly listed tech companies. [Read from your browser]( Opening Bell ð Welcome to the Opening Bell! Delivered every Monday via email and through the Tech in Asia website, this free newsletter breaks down the biggest stories and latest trends on Asiaâs publicly listed tech companies. If youâre not a subscriber, get access by [registering here](. --------------------------------------------------------------- Written by Simon Huang
Journalist Hello {NAME} Growing up in Singapore, which has a relatively efficient and comprehensive public transport system, I never really saw the need for owning a car - even more so since Uber introduced ride hailing to the world over a decade ago. This was reinforced by how expensive cars are in the Lion City. Thanks to high import taxes and having to buy a certificate of entitlement (giving one the right to vehicle ownership for 10 years), a [new Toyota Camry]( can set you back by as much as S$220,000 (US$163,000). However, after adopting a dog in July, I have had second thoughts about owning a car lately. Singapore isnât the most pet-friendly country - pets are not allowed on public transport. This means a lot of money spent on taxis and Grab, which charges a premium for its GrabPet service. So I find myself browsing through the websites of companies like Carro recently to see how much cheaper a used car might be - spoiler alert: Theyâre still pretty expensive! One website I did not look at was Carsome, which my colleague, Emmanuel, has written about in this weekâs [featured story](. This was not because I have anything against the Malaysia-based unicorn but because Carsomeâs [Singapore website]( only offers to buy used cars, not sell them. But the company is one of the major players in Southeast Asiaâs used-car space, with a valuation of US$1.7 billion and potential revenue that is several times that - youâll have to read the article to find out exactly how much! Yet things have not been completely smooth sailing recently: Carsome had to lay off staff at the end of September despite having a three-year cash runway, as Emmanuel shows in his article. The company also reportedly shelved its plans for a dual listing, which was set for this year, in Singapore and the US. CEO and co-founder Eric Cheng tells Tech in Asia that while Carsome is âcapable of going public,â it âdoesnât really make senseâ to do so at the moment given market conditions and economic headwinds. If and when the company decides to pull the trigger, the upside may be that the company will be in a stronger financial position. Similarly, Iâve decided to hold off on buying a car for now amid volatile market conditions. But I might reconsider my decision when the tide turns. -- Simon
Â
---------------------------------------------------------------
Â
THE BIG STORY [Can Carsome break even in 2023?]( The used-car platform plans to go back into the black after an eventful 2022. 3 TRENDS TO KEEP AN EYE ON Hot stocks, earnings reports, restructuring, pressure from activist investors, and more. 1ï¸â£Â GoTo shares fall to record low: Shares of GoTo Group (GOTO, IDX) [plunged to a record low]( after lock-up agreements barring major investors from selling their shares in the Indonesian tech company expired. At the close of trading on December 1, the first day of trading following the expiry of the agreements, GoTo shares closed at 141 rupiah (US$0.01) apiece, down 58% from their IPO price. As we highlighted in a [story]( in July, GoTo was then trading at a 6x multiple of its US-listed rival Grab (GRAB, NDAQ). We predicted that âGoToâs shares may underperform against its rivalsâ moving forward. We donât always get these calls right, but in this case, we were onto something: Since the article was published, GoToâs shares have fallen by 53%, compared to Grab, which is up 12%, and Sea (SE, NYSE), which has slipped 12%. To be fair, GoToâs management was well aware of the situation. On the companyâs most recent [earnings call]( management specifically addressed the issue, stating that the company was âexploring options to support selling shareholders as well as bring new long-term institutional capital into our cap table.â However, shares dropped 7% last Thursday after the company [said]( some of its existing investors âdecided not to take up a secondary offering of shares at this time.â As we write this on Friday, GoToâs shares are down 6% for the day. Based on current prices and 2021 revenues, GoToâs price-to-sales ratio is still nearly twice that of Grabâs. The formerâs shares may have further to fall in the weeks ahead. 2ï¸â£Â Alibaba (BABA, NYSE) subsidiary launches in Spain: A subsidiary of Alibaba incorporated in Singapore [launched]( ecommerce marketplace [Miravia]( in Spain. This move comes after [reports]( earlier this year that Lazada was eyeing Europe for its first major expansion outside Southeast Asia. In contrast, regional rival Shopee [exited Spain]( in June this year, although it continues to invest in certain markets like Brazil. We are starting to see some divergence in strategies among Chinese tech giants. Tencent (0700, HKG) is [slimming down]( its large investment portfolio, while continuing [âaggressiveâ M&A activity]( in its core gaming business. Meanwhile, Alibabaâs ecommerce rival JD.com (9618, HKG) is [pulling out]( of its joint ventures in Indonesia and Thailand to focus on its home country. Like Tencent, Alibaba seems to be doubling down on what it knows best: ecommerce. It is also looking for growth outside China. 3ï¸â£Â Elon and Apple bury the hatchet?: Never a dull moment in Elon-land. The worldâs richest man and now owner of social media platform Twitter started the week with a Twitter storm by alleging that Apple (AAPL, NDAQ) had [threatened]( to remove the Twitter app from its App Store. Few people would want to take on Apple, the worldâs most highly valued company. Musk did so with characteristic verve, also bringing up the 30% cut that Appleâs App Store takes from all transactions on the app store - a sensitive topic for the iPhone maker. But Musk is also on shaky ground. Twitter is heavily indebted after Muskâs takeover, and regulators from the [European Union]( and [US Federal Trade Commission]( are paying close attention to the now privatized social media company. Ultimately, both sides decided it was better to nip any issues in the bud. On [Wednesday]( Musk went to Appleâs headquarters and met with CEO Tim Cook, later tweeting that they âresolved the misunderstanding about Twitter potentially being removed from the App Store.â The jury is still out on the future of Twitter and, by extension, Musk. On the one hand, his erratic way of running what until recently was a large, publicly listed company is horrifying many stakeholders, including Twitter users, employees, and regulators. On the other hand, one should never underestimate the abilities of the person who built Tesla into one of the most valuable companies in the world and founded one of the worldâs most promising private space companies. What we can be sure of is that Musk will continue to provide many more entertaining moments.  ---------------------------------------------------------------
Â
2 EYE-POPPING FACTS Tech in Asia scours the internet to bring you head-turning numbers from the world of business. [7.8%]( - Singaporeâs United Overseas Bank (U11, SGX) is offering a maximum interest rate of 7.8% per annum. This applies to deposits between S$75,000 (US$55,455) and S$100,000 (US$73,939) and requires users to credit their salary to the bank and meet a minimum spend of S$500 (US$370) a month on certain credit cards. One of the upsides of higher interest rates is that banks are finally having to compete for [CASA]( funds. [0.5%]( - Following remarks by US Federal Reserve Chairman Jerome Powell, markets are pricing in a 0.5% hike as the most likely outcome of the central bankâs December meeting. However, Powell also warned that overcoming inflation might ârequire holding policy at a restrictive level for some time.â Investors chose to see the glass as half full and bid up stocks, though they could be in for tough times in the year ahead if they overlook potential downsides. Â
--------------------------------------------------------------- THE ONESÂ YOU DIDN'T SEE COMING We spotlight the unusual, not-your-everyday kind of story that had everyone talking and social media buzzing over the past week.
 China signals shift in Covid stance after mass protests Last week, we highlighted the mea culpas investors in FTX were being forced to perform. This week, it may be our turn. Previously, when highlighting the risks faced by Apple in China, we wrote that while most pundits expect Covid policies in China to loosen in 2023, âit may take longer.â This was based on the fact that the moment case numbers started to go up, China was already backtracking on some of its earlier (very tentative) announced policies to loosen restrictions. However, last week, unprecedented mass protests broke out across the country as many Chinese citizens reached their Covid-zero breaking point. Protests are not uncommon in China, but they usually deal with specific local issues and grievances with local authorities. It is much rarer to have protests break out across the country on the same issue and with anger directed at the central government. There were even calls for President Xi Jinping and the Communist Party to step down from power. Some even [said]( these were âChinaâs most widespread demonstrations to target the countryâs top leaders since 1989, when the government crushed the Tiananmen Square protests.â The central governmentâs initial response seems to be to [ease some virus restrictions]( with rules in major cities relaxed. Still, the road ahead remains long and arduous for China, even if a post-Covid reopening comes sooner than expected. Low vaccination rates among the elderly and a shortage of intensive care facilities means that death rates are likely to rise significantly - which would present another series of challenges for the central government and President Xi, who has wrapped his own authority in the countryâs management of the pandemic. Why does any of this matter to investors? As the second-largest economy in the world and as the home to some of its most innovative tech companies, we cannot ignore what is going on in the Middle Kingdom. Reopening plans will no doubt cheer beaten-down Chinese stocks but may also lead to a rise in demand for oil and other commodities, resulting in spiking prices, worsening inflation and threatening to keep interest rates higher for longer. That will affect stock valuations everywhere. Currency converted from Singapore dollar to US dollar: US$1=S$1.35; Indonesian rupiah to US dollar: US$1=15,435 rupiah. Thatâs it for this edition - we hope you liked it! Not your cup of tea? You can unsubscribe from this newsletter by going to our preference center at the bottom of this email. Happy investing and see you next week! Disclaimer: This content is for informational purposes only. Kindly do not construe any such information as legal, tax, investment, financial, or other advice. [ADVERTISE]( | [SUBSCRIBE]( | [HIRE]( | [FIND JOBS]( P.S. Don't miss out on the biggest tech news and analysis. Add newsletter@techinasia.com to your address book, contacts, or safe sender list. Or simply move us into your inbox. Too many emails? Switch to a different frequency or get new content through our [preference center]( or [unsubscribe](. You can also break our hearts and remove yourself from all Tech in Asia emails over [here](
 Copyright © 2022 Tech in Asia, All rights reserved.
63 Robinson Road, Singapore 068894