INVESTMENT BULLETIN SEPTEMBER 20TH 2021 ISSUE NO.27
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INVESTMENT BULLETIN
STUDENT WRITERS - STUDENT OPINIONS
SEPTEMBER 20TH 2021 ISSUE NO.27
Lake Matheson
The University of Auckland Investment Club Investment Bulletin Team 2021 Shyam Prasad-Jones Bulletin Editor-in-Chief Andrew Meng Zac Gadsby Senior Writer Senior Writer Logan Rainey Luka Borich Senior Writer Senior Writer Matt Attwood Aniston Inger-Holland Senior Writer Junior Writer Timothy Cross Tulsi Khanna Junior Writer Junior Writer Ananya Ahluwalia Joshua Paul Junior Writer Junior Writer Rohan Bhatt Rohit Rajagopal Junior Writer Junior Writer Sarah Jeong Phoebe Horton Andrews Junior Writer Junior Writer Zac Ballantyne Issie Dekker Junior Writer Junior Writer Prices as at Friday 17th September 2021 unless otherwise stated UAIC INVESTMENT BULLETIN FOR 2021, IS BROUGHT TO YOU IN PARTNERSHIP WITH:
Contents The club An update from the fund 2 Opinions The missing link: profits 3 Pfizer: post-covid growth 5 Semi-conducting a crisis 7 Cold snap: Canadians rush to the polls 9 Evergrande or everdue? 11 MYOB column Seizing Advantage: The technology pivot ANZ businesses must make 13 INFINZ Young Women in Finance Women in the corporate world 14
An update from the club
A RUNDOWN OF THIS WEEKS PITCHES WRITTEN BY OUR INVESTMENT COMMITTEE ANALYSTS
Ford Motor Company move into the electric vehicle
"Revving up your portfolio" -
space. Ford’s sustainable values
Anna Marsden
Ford Motor Company (NYSE: F) was and focus on doing their part for
established in 1903 by Henry Ford. the environment mean that not
His vision was to create a car brand only would you be investing in a
for the American user. As the strong company financially, you’d
fourth-largest automaker in the also be making an ethically sound
world, Ford presents a well- choice. The Investment Committee
diversified product range with a has voted against passing Ford to
range of brands catering to the valuation stage, with the final
general consumer, luxury, and vote being 4/15.
commercial users. Its competitive
advantage lies with its strong
“Ford” focus and new Ford+
strategy, which looks to strengthen
its core competencies and drive its
2 / The club September 20 2021
The missing link: profits
WRITTEN BY ROHIT RAJAGOPAL
CONNECTED, EFFICIENT AND OCCASIONALLY OVERPRICED. FROM A CONSUMER
PERSPECTIVE, THESE ARE SOME OF THE FIRST THINGS THAT POP INTO MIND WHEN
DESCRIBING UBER. AS A DRIVER, IT MAY FEEL MORE LIKE FISHING - POSITIONING
YOURSELF OPTIMALLY AND CASTING OUT BAIT TO DRAW RIDERS IN. THIS GAME OF
PATIENCE CAN EITHER BE REWARDING OR FRUSTRATING, BUT ULTIMATELY IT MAY JUST
NOT BE WORTH IT. YET THIS IS THE LEAST OF UBER'S CONCERNS. SINCE ITS INCEPTION IN
2009, THE RIDE-SHARING PHENOMENON HAS CONSISTENTLY RETURNED YEARLY LOSSES,
DESPITE EXPANDING ITS CORE BUSINESS SEGMENTS. NOW PUT YOURSELF IN THE SHOES
OF AN INVESTOR. HOW DO YOU JUSTIFY FUNDING A COMPANY WHERE PROFITS ARE
ALWAYS IN SIGHT BUT NEVER IN REACH?
*All dollar values given in USD temporary or freelance jobs though that their competitors were
connecting clients over the web. likewise burdened by significant
As the premier ride-share app in
losses. Lyft's revenue dropped by a
the world, chances are that most
The pandemic has immensely third compared to the previous year
readers have utilised one or more of
impacted Uber. A limiting demand and looked to business-to-business
Uber's service lines. With a strong
of customers froze the ride-sharing logistics as an alternative source of
brand reputation and a 68% market
markets as revenue fell from $13 income.
share in the U.S., the firm has
billion in 2019 to $11.1 billion in 2020.
continued to grow by venturing
As its mobility business fell 43%, Subsequently, 2021 has thus far
into distribution and freight along
Uber Eats fought back with a 179% seen mixed fortunes for Uber. A net
with research programs for
surge in revenue as people turned income of $1.1 billion in the second
advancing vehicular transport. A
to food and delivered goods. The quarter was regarded as a turning
flexible income stream has lured
people into driving for Uber as a total number of trips completed by point for the company. These gains
side-hustle with an increase of drivers decreased 27% to 4.98 were largely due to their stakes in
750,000 delivery merchants over billion, and Uber also took Aurora, who acquired the firm's
the last quarter. In turn, the preventative measures by cutting self-driving unit, and Didi, their
company now headlines the gig over 6,700 jobs at the height of the Chinese counterparts. It was initially
economy, which is founded on outbreak. It should be noted thought that the latter realised over
3 / Opinions September 20 2021
$1.4 billion in a valuation on June this year. CFO Nelson Chai stated, On the flip side, the company has
30th, but the final figure was "we expect our adjusted EBITDA done a great job of keeping its
slashed by 50% as China's loss in Q3 to improve to less than competitors at bay by investing
cybersecurity administration $100 million", and the company is large amounts in them. With over
brought the price down after Didi's "well-positioned to reach adjusted $12.9 billion of portfolio holdings,
IPO. As such, Uber's operating loss EBITDA profitability by Q4". Uber has a major stake in Zomato,
totalled $1.19 billion despite Lime and Didi with additional
substantial increases in their Recently, ride-share firms have acquisitions of delivery services,
mobility and delivery divisions. been scrutinised for not offering Drizly and Postmates. Still, the
their gig workers a minimum effects of these strategies are
However, in a bid to please wage, especially in a period of job unknown in the long run.
investors, the ride-share giant has uncertainty. In February, Uber lost
often highlighted its EBITDA a court battle in the U.K., which And this brings me back to how
losses. During the same quarter, meant they had to set aside $600 investors continue to pile in the
Uber's adjusted loss was $509 million for driver wages and cash for Uber. Perhaps many are
million, which was higher than the holiday pay. Coupled with this, the hedging an industry bet and
first quarter of 2021, but massively company attempted to incentivise assessing the overall trend of the
improved from the same time last their drivers by staging a plan in ride-share sector. It could be that
year. Whilst EBITDA is a good April to provide $250 million in Uber's vision for revolutionising
indicator of a firm's short-term bonuses. autonomous vehicles presents an
operational efficiency. It is not attractive investment case.
reflective of generally accepted Uber's business model requires Nonetheless, the company's cash
accounting principles (GAAP) more drivers to create more drain doesn't seem to point
which consider net flows. An income. Yet, with 46% of its current towards profits anytime soon.
investor could easily disregard revenue paid out to drivers, it's Instead, all we can do is play the
these metrics as "fake profits". difficult to see how they can waiting game.
Lyft looked more promising as they continue expanding whilst
reported their first quarterly delivering on their promises. Even
adjusted profit, which surpassed by treating their drivers as
preliminary estimates. Uber is now independent contractors with no
in a race to prove it can also return payroll taxes and benefits, Uber
positive margins as they reaffirm seems to be no closer to actual
expectations to do so by the end of GAAP profitability.
4 / Opinions September 20 2021
Pfizer: post-covid growth WRITTEN BY ISSIE DEKKER ONE OF THE BIGGEST MEDICAL NAMES IN THE FIGHT AGAINST COVID-19 IS PFIZER. FOUNDED IN 1849 BY TWO GERMAN IMMIGRANTS IN NEW YORK, PFIZER WAS COMMONLY KNOWN FOR THEIR SUCCESS IN DEVELOPING VIAGRA AND ITS MASS PRODUCTION OF VITAMIN C BUT EARNT ITS HOUSEHOLD NAME IN 2020 WITH THEIR COVID-19 VACCINE. PFIZER IS THE ROLLOUT VACCINE IN NEW ZEALAND, BEING THE CHOSEN ONE OF THREE VACCINES APPROVED BY MEDSAFE. WINNING THE COVID-19 VACCINE RACE HAS HELPED PFIZER'S IMAGE AND PERFORMANCE FLOURISH, BUT WHAT ABOUT WHEN THIS COVID CRAZE ENDS? The vaccine Pfizer helped develop finding a way to destroy it. If you However, this cannot be expected is known as Comirnaty. Research get exposed to the actual to be sustained. While research is was initially led by BioNTech; a coronavirus, your immune system suggesting that a third dose of the German biotechnology company remembers how to fight the spike vaccine proves even more effective focused on manufacturing patient- proteins, preventing them from against infection, what happens specific immunotherapy latching on to your cells and once everyone is vaccinated? This treatments for cancer and consequently infecting you. Once subject is open to speculation, as infectious diseases. According to BioNTech had developed this, they we are already seeing new variants their website, BioNTech's vision is partnered with Pfizer in March of of the coronavirus arising. The to use genetic features of tumours 2020 to expand research and start Pfizer vaccine is 3.3% less effective to personalise cancer therapy, skills a clinical trial. Trials proving the against the Delta variant, which is easily transferable to start building success of the vaccine saw the still a strong resistance to infection, the genetic instructions for World Health Organisation list it for but research is ongoing about coronavirus spike proteins. These Emergency Use in December 2020, potential variants even more spike proteins are the little spikey allowing countries to proceed with aggressive than Delta. There are no projections around the outside of their own approval and rollout variants formed or identified yet the coronavirus cells and are used procedures. which are cause for concern to to infect cells in our bodies. While it vaccinated individuals, but one seems backwards to mimic the The development of the covid-19 can't help to think there could be virus you want to eradicate, the vaccine is outstanding for Pfizer one day. spike proteins themselves do not and has helped them to grow contain the virus. The beginning of significantly. The vaccine brought While the science currently the genetic code for the spike in USD 7.8billion in the Second- indicates the Pfizer vaccine is protein contains a specific Quarter of 2021, and 2021 vaccine effective against the Delta variant, sequence that tells your cell to kick revenue is projected at USD it can be worrying to think the the spike protein out to the 33.5billion due to signed contracts coronavirus could evolve like the immune system, which starts for 2.1 billion doses to be delivered. flu, with new variants quickly 5 / Opinions September 20 2021
arising and new vaccinations realisation of spin-off company increase since 2007. Whether the
required yearly. For Pfizer, this Upjohn. This left Pfizer 20% smaller high prices for Pfizer's medications
could be an opportunity to and with a new vision to focus on are the result of extensive research
capitalise their quick development disease cures and prevention to and development costs remains
of the vaccine. Alternate vaccine change patients' lives around the open to speculation, but it seems
Moderna quickly followed Pfizer world. probable. Research and
and indicated a strong protection development are notoriously
against the Delta variant. If further Pfizer doesn't just do well with expensive and requires extensive
variants arise, it will be interesting vaccines. They have had many funding. Passing these costs on to
to watch the race for vaccines breakthroughs. They were the first patients struggling through
unfold. Given the current research pharmaceutical company to mass- disease already is unfair, but
though, it is unlikely that the produce penicillin and vitamin C unfortunately is the result of the
vaccine will be a continuous source and develop Viagra, discovering United States healthcare system.
of revenue for Pfizer. citric acid and manufacturing
EpiPens. It hasn't always been Pfizer has done extremely well in
Being the first vaccine to reach successful for Pfizer though, with the past year, developing a strong
Emergency Use Listing status, trials for antibiotic Trovan ending vaccine against Covid-19 and
Pfizer has become a very topical tragically during the meningitis recording strong revenues. The
and popular name. Listed on the epidemic in Nigeria in 1996. Trovan biopharma company has made
New York Stock Exchange, the was never approved for use significant strides in the
stock price of Pfizer has moved on afterwards. Their medications pharmaceutical world since its
the higher side of 30% over the last Vyndaqel and Vyndamax for heart establishment in 1849, and its
year. This is much more volatile condition cardiomyopathy have journey in a seemingly far-off post-
than other pharmaceutical come under fire for being too covid will be interesting to watch.
companies of comparable size. expensive for patients to afford. Such growth seen over 2020 and
Johnson & Johnson who also have 2021 due to coronavirus will be
developed a (less successful) covid- Despite early studies proving the near impossible to maintain, and
19 vaccine moved less than half as drug is effective in keeping Pfizer's future in the volatile
much. While the covid-19 vaccine patients out of hospital and market that is pharmaceuticals
isn't the only thing going for Pfizer, reducing the risk of death due to and health organisation approvals
it certainly is currently its biggest the disease, the United Kingdom is shaping up to be rocky.
growth source. In its 2021 Quarter National Institute for Health and
Two results, Pfizer reported a 10% Care Excellence shunned funding
Operational Growth excluding the for Vyndaqel on the basis of cost.
vaccine revenue, the vaccine They said they would be open to
providing a further 76%. The renegotiations with Pfizer around
excluded Operational Growth is 4% the cost-effectiveness. The high
higher than their Second-Quarter cost of the drug is contradictory to
2020, implying that their other Pfizer's vision to help patients as if
products have been doing well too. patients are unable to afford
beneficial medication what is the
The top revenue earner of point in developing it. Pfizer also
Oncology (cancer) in 2020, Second- got penalised in the United States
Quarter has seen a 19% increase in for the recent increases in the
total revenue to the same quarter price of EpiPens, a first response
of 2021. Hospital product revenues medication for life-threatening
also saw a considerable increase of anaphylactic reactions. Pfizer and
21% from the second quarter of its subsidiaries agreed to pay a
2020. This is promising for Pfizer, USD 345million settlement in July
especially considering the this year over the 650% price
6 / Opinions September 20 2021
Semi-conducting a crisis
WRITTEN BY ANANYA AHLUWALIA
WITH THE ADVANCEMENT OF TECHNOLOGY AND THE FAST-PACED DEVELOPMENT OF
THE INTERNET OF THINGS (IOT), ALMOST EVERYTHING AROUND US IS BECOMING
'SMART'. WHAT STARTED AS A REQUIREMENT OF JUST PHONES AND COMPUTERS HAS
SPREAD TO CARS, TOOTHBRUSHES AND EVEN LITTER BOXES. HOWEVER, THIS JOINT
ADVANCEMENT OF MANY ASPECTS OF OUR LIVES HAS ALSO INTRODUCED A BOOM IN
DEMAND AND JOINT VULNERABILITY.
If you haven't already noticed, mass produced are measured at an China. This means the shortage
production for a concerning average of 12 nanometers. That's caused by high demand,
number of goods is at a standstill, more than 8 thousand times culminated with the Global Covid
and it's because of one very, very smaller than a single strand of Supply Crisis, has resulted in this
small reason - the semiconductor human hair - and people are still dire situation.
chip. aiming to get it smaller. Along with
the need to get chips smaller, Automaker giants like Ford, BMW
Typically made of Silicon, and also manufacturers are also pressured and Tesla have voiced their
the reason the notorious Valley in for them to work faster. Meaning concerns with regard to
San Francisco got its name, the more transistors are required while production problems. In late July,
semiconductor is a vital not compromising the node size. CEO Elon Musk stated, "The chip
component to any computing And of course, all these demands supply is fundamentally becoming
component or device. As the name come partnered with the age-old a factor on our output," and that,
indicates, a semiconductor sits on a ultimatum of cheap cost of "It was an incredibly intense effort
spectrum somewhere between a production. of finding new chips, writing new
pure insulator and a conductor. The firmware, integrating with the
property can be manipulated by The rise in demand for these chips vehicle and testing in order to
adding impurities to the element and its increase in complexity maintain production".
through a doping process. This means the shortage of the product
malleability means the is at an all-time high. Medical devices that require a
semiconductor can be catered to connection to power or batteries
different components in different Production of this chip is an also depend on semiconductors
ways, which makes the product so international process, with raw and are a part of the chip struggle.
valuable. materials harvested from countries Many of these devices are crucial
like Japan and Mexico and to the treatment and recovery of
Semiconductors currently being manufacturing in the US and those diagnosed with COVID-19,
7 / Opinions September 20 2021
further highlighting the Alternatively, you could look to open to investing in the modern
importance of the product. individual companies in the electronics industry- I know I will.
However, many countries didn't semiconductor industry for
view the chip as the essential investment opportunities. As with An interesting read into the
component it turned out to be, all individual stock investments, complexity of semiconductors: The
and closed semiconductor this option will come with its own Chip Shortage Keeps Getting
factories during lockdown periods, risk depending on how you choose Worse. Why Can’t We Just Make
further adding to the lapse in to invest, but the following links More?
supply. help you in your decisions.
However, with the shortage finally 10 Biggest Semiconductor
being recognised as a crisis- Companies
inducing problem, experts predict
a significant development in the There’s No Easy Way Out Of The
global semiconductor supply Chip Shortage, But These Stocks
chain, which alludes to the perfect Stand To Benefit
investment opportunity.
Ultimately, although the pandemic
The PHLX Semiconductor Sector is partially to blame for the
Index (NASDAQ: SOX) comprises 30 shortage in semiconductors, the
companies with operations insufficient foresight into the rapid
spanning the semiconductor acceleration of technological
development process. Over the growth is a primary cause of this
past year, the index's growth has problem. Also, though solutions
been incredible, seen by a are being developed, they will take
USD$1,311.12 increase since the start a while and a lot of cash to
of September 2020. That's a 62% implement. So watch this space,
increase in less than 12 months. and keep your minds and wallets
8 / Opinions September 20 2021Cold snap: Canadians rush to
the polls
WRITTEN BY PHOEBE HORTON ANDREWS
FOLLOWING THE DISSOLUTION OF GOVERNMENT REQUESTED BY PRIME MINISTER JUSTIN
TRUDEAU ON THE 15TH OF AUGUST, CANADIANS WILL VOTE IN A FEDERAL ELECTION THIS
MONDAY, THE 20TH OF SEPTEMBER, BRINGING FORWARD THE COUNTRY’S NEXT ELECTION
BY APPROXIMATELY 25 MONTHS.
Mr Trudeau’s intentions are clear: to to name the previous Prime parties are the centre-left Liberals,
win re-election by capitalising on Minister. But Canada’s political led by Justin Trudeau, and the
the success of his government’s landscape is like New Zealand’s, centre-right Conservatives.
vaccine rollout, which has outpaced and the clairvoyance granted by an Additionally, there are two more
that of the UK, the US, Australia, understanding of the issues driving parties that are likely to have a
and New Zealand. This success Canadian politics, made explicit by significant role in this year’s
comes despite the country’s Monday’s election results, will give election: the New Democratic Party
milquetoast response to COVID-19 us a greater understanding of the and the Bloc Québécois. Additional
in 2020, which saw over 15,000 future of politics here. Questions minority parties include The Greens
Canadians dead by the end of the such as “how will voters reward and the People’s Party, but these
year. By comparison, Australia’s greater freedoms at the cost of parties lack widespread support.
death toll at the same time was exposure to COVID-19?” can be
below 1,000; New Zealand’s was just answered by seeing who Canadians Ideologically, the NDP sits to the
25. elect and whether Trudeau’s left of the Liberals, departing from
government has recovered from its them in its calls to cancel student
But why is the outcome of this misadventures last year. debt and increase taxes on wealthy
federal election on the other side of Canadians. The party enjoys greater
the world relevant? Canada is not The political landscape in Canada is popularity among younger, inner-
among New Zealand’s 15 major dominated by two big-tent parties – city Canadians, winning almost as
trading partners, nor is it of much these are parties which have broad large a proportion of mock student
strategic value. Most New appeal and secure a large votes as the Liberals. The leader of
Zealanders would be hard-pressed proportion of votes. These two the party is Jagmeet Singh, the first
9 / Opinions September 20 2021visible minority to run a major from the BQ; and his desire for a
political party in Canada. CANZUK agreement, which would
see increased freedom of
The Bloc Québécois, an movement between Canada,
idiosyncratic party by global Australia, New Zealand, and the
standards, hopes to advance United Kingdom, as well as greater
Quebec’s independence. While economic and geopolitical
sovereignty lacks popular support, coöperation in a similar vein to the
polling suggests that many free trade agreement between
Quebecers support greater Australia and the UK announced
autonomy for their province. The earlier this year.
party generally aims to take seats
from larger parties instead of With less than a week until the
running its own diverse platform election, polling suggests that the
and use this position to agitate for Liberals and the Conservatives are
pro-Quebec policy. The party is tied for votes, at approximately 32%
currently lead by Yves-François ±4%. While the NDP and BQ could
Blanchet. theoretically form a coalition in
parliament with the election
What the NDP and BQ lack in winner, at ~19% and ~7%,
popular support (the latter doesn’t respectively, this has all but been
even run candidates outside ruled out, as it was in 2019. The
Quebec), they make up for in their Liberals and Bloc Québécois are
ability to play kingmaker; a clipped more efficient at turning votes into
left-wing split asunder on issues seats in parliament than either the
like indigenous rights, Conservatives or NDP, but a surge
environmental stewardship, and in popularity one way or another
burgeoning insecurity has seen the could make this irrelevant,
balance of power tip towards these especially as parties vie for votes on
minor parties, who can take votes key issues like the COVID-19
from the larger ones and advance response, Quebec autonomism, and
their policies accordingly. Trudeau economic wellbeing.
lost his majority government in the
2019 election and must rely on Will Canadians reward the Trudeau
these minor opposition parties to government for an enormously
pass his legislation, giving them successful vaccine rollout or chide
power beyond their size. the government for its failure to
enforce stricter lockdown
The Official Opposition, the centre- conditions in 2020? Will Erin
right Conservative Party, is O’Toole’s brand of centre-right
currently headed by Erin O’Toole, a politics, more palatable than the
relatively moderate lawyer-turned- populist rhetoric of other
politician who took control of the contemporary conservatives, strike
party in 2020. Among O’Toole’s a chord with disenfranchised
unique perspectives are his vocal voters? Whatever the outcome may
support for unions, atypical of a be, it is likely to set the tone of
country’s most prominent Western politics in a post-
conservative politician; his support pandemic world.
for greater Quebec autonomism,
which could see his party take votes
11 / Opinions September 20 2021Evergrande or everdue?
WRITTEN BY ANISTON INGER-HOLLAND
THE CHINA EVERGRANDE GROUP HAS HIT HEADLINES ACROSS THE WORLD THIS WEEK
AFTER CONCERNS OF A POTENTIAL COLLAPSE. THE GROUP IS CHINA’S SECOND-LARGEST
PROPERTY DEVELOPER WITH NZD 154 BILLION IN SALES IN THE LAST YEAR ALONE.
HOWEVER, EVERGRANDE HAS FACED LIQUIDITY ISSUES. IN 2020, REPORTS EMERGED THAT
THE EVERGRANDE GROUP HAD WARNED OFFICIALS IN GUANGDONG PROVINCE THAT
PAYMENTS DUE IN JANUARY 2021 COULD CAUSE A LIQUIDITY CRISIS AND POTENTIALLY
LEAD TO CROSS-DEFAULTS IN THE BROADER FINANCIAL INDUSTRY. THIS CRISIS HAD BEEN
AVERTED TEMPORARILY WHEN INVESTORS WAIVED THEIR RIGHT TO FORCE AN NZD 18
BILLION REPAYMENT.
Although Evergrande has raised The implications are uncertain, but areas of the economy since the
NZD 11 billion through the selling of the future looks glum. The Group’s Evergrande Group’s liabilities
shares in its electric vehicle stock has been falling, seeing a involve more than 128 banks and
department, a property firm and a 5.39% decline in the last trading over 121 non-banking institutions,
regional bank and its effort of session, totalling an 80% decline with China Minsheng Bank holding
further raising capital by exploring year-to-date. Protests have the highest exposure. Additionally,
the idea of listing its tourism and occurred outside the company’s Evergrande has exposure in the
water businesses, it will not provide headquarters in Shenzhen, with Chinese real estate high yields
an adequate fix for the struggling demands from investors to give market, where any default could
Group as these sales won’t be them their money back. Whilst cause damaging sell-offs.
completed until next year. disgruntled employees and
investors will bear the brunt of any Evergrande also employs 200,000
Evergrande needs to make NZD collapse, the risk of cross-defaulting staff and hires millions of people for
940 Million in coupon payments by is an increasing concern for the project developments, who will all
the end of this year. In addition, Chinese government. Cross- be without a job if the firm was to
NZD 2.8 billion of outstanding defaulting occurs when a small collapse. However, it’s unclear how
bonds come due in March 2022, default, in this case, interest owed, much damage a collapse could
with a further NZD 1.8 billion in triggers an accelerated payment on cause, especially with speculation
April. Due to this, it’s expected that a larger debt which causes a that the global securities markets
a default is probable. collapse. This could impact other are highly leveraged.
12 / Opinions September 20 2021Evergrande’s situation has been compared to the likes of the Lehman Brothers, the collapse of the fourth-largest investment bank in the United States during the Global Financial Crisis. However, distinctions have been made as many believe the most immediate concern is a real estate market crash rather than a market-wide financial crisis. However, it is still a large mess to clean up, and it begs the question of whether the Chinese government would bail out Evergrande. China has bailed out companies before, such as Huarong Asset Management. However, the company was majority state- owned, unlike Evergrande. Bailing Evergrande out does give China the opportunity to further its control of non-state-owned enterprises, as seen with its recent crackdown on Alibaba and Didi. Financial assistance would also be beneficial in achieving social stability, one of the main goals of the Chinese government, as well as be in its best interests to look out for retail investors. Evergrande has NZD 262 billion worth of projects under development affecting 1.6 million homeowners or families, which means any risk to these investments will only increase social tensions. However, the editor-in- chief of China’s state-backed newspaper, Global Times, has cast doubt on a bailout and argued that Evergrande is not too big to fail as it isn’t a bank but rather a property developer. There is one thing that everyone can agree on: for Evergrande, time is ticking. 13 / Opinions September 20 2021
MYOB column
Seizing advantage: the technology pivot ANZ businesses must make
Businesses that aren’t seizing the benefits of a modern business and people management
system are struggling.
Mid-market businesses in Australia and New Zealand must make a significant technology
pivot in order to successfully take on the challenges of a post-COVID-19 world.
However, adapting to new ways of working through basic digitisation is not enough. The core
systems of a business must be upgraded in order to navigate future challenges, unlock
productivity, and stay ahead of the competition.
A new MYOB commissioned study, conducted by Forrester Consulting, reveals that unified,
cloud-based business and people management systems are vital to a mid-market
organisation’s ability to thrive and succeed.
Visit MYOB to get a snapshot view of why mid-market businesses must make the technology
pivot to a unified business and people management approach, download the full report
and/or watch the ‘Seizing Advantage’ webinar on-demand and get the full briefing on the
technology pivot businesses must make.
14 / MYOB column September 20 2021You can also read
