See More on Facebook

Economics

Foxconn’s proposed IPO a reflection of China’s economy

Industrial manufacturer Foxconn’s possible listing on the Shanghai Stock Exchange has investors interested and signal the changing nature of China’s economic reform.


Written by

Updated: February 16, 2018

One of the largest employers and taxpayers in China, Foxconn has taken a concrete step forward to applying for an initial public offering in one of the largest capital markets in the world. Insiders are optimistic about it being listed on the Shanghai Stock Exchange in the foreseeable future.

Foxconn, also known as Hon Hai Precision Industry, is a multi-national manufacturing company headquartered in Taiwan but with factories throughout mainland China including its largest in Shenzhen where over 200,000 people are employed by the company.

The manufacturer is responsible for consumer products from some of the largest name brands in the world including Apple, Sony, Microsoft, Nintendo, and Amazon.

IPO Application 

China has markedly strengthened its control and examination of IPO applications, even many capable applicants have been persuaded to quit or failed to pass the CSRC’s qualification checks.

That the securities regulator has given the green light to Foxconn’s prospectus shows decision-makers are laying considerable stress on manufacturing industries, as well as the fitness of Foxconn’s business.

It also speaks to Xi Jinping’s promise to liberalize the economy and encourage more FDI into the Chinese market.

Labour Controversy

The IPO is also a sign of the progress that the company has made since it faced pressure in 2010 when 11 assembly line workers committed suicide in different branches throughout China – drawing criticism that the company was running a sweatshop.

Chinese media heavily criticized the company and urged the government to weed out ‘lower-end’ industries and move up the value chain.

International watchdog Human Rights Watch highlighted workplace abuses at Foxconn as part of its call on the Chinese government to allow more freedom of expression so that unfair labour practices can stop.

Eight years on, Foxconn has not only survived, but also boomed. It has remained the main parts provider for major global brands in the fast-changing information technology and electronics industries over the years. The government has also established an auditing system in conjunction with the company to ensure improvements in the workplace environment.



Enjoyed this story? Share it.


Cod Satrusayang
About the Author: Cod Satrusayang is the Managing Editor at Asia News Network.

Eastern Briefings

All you need to know about Asia


Our Eastern Briefings Newsletter presents curated stories from 22 Asian newspapers from South, Southeast and Northeast Asia.

Sign up and stay updated with the latest news.



By providing us with your email address, you agree to our Privacy Policy and Terms of Service.

View Today's Newsletter Here

Economics

Suu Kyi stripped of Amnesty honour

The Amnesty International has stripped Aung San Suu Kyi of its highest honour, the latest of several honours taken away from her since last year’s brutal military crackdown on the Rohingyas. This is the eighth honour that the former Nobel peace prizewinner has been stripped of over the past year, with Amnesty following the example of Canada, US Holocaust Museum, UK’s Edinburgh, Oxford, Glasgow and Newcastle and Canada’s Carleton Universities which also revoked Suu Kyi’s honorary degrees and awards. The long-celebrated Nobel Laureate was given Amnesty’s most prestigious honour, the Ambassador of Conscience Award for 2009 marking the 20th anniversary of her arrest and 20 years since it declared her a prisoner of conscience. The AI yesterday announced withdrawal of its highest honour fr


By Daily Star
November 13, 2018

Economics

US calls on China to remove missiles from Spratly Islands

For the first time, the United States called on China to remove missiles it deployed on three fortified outposts it built in the Spratly Islands in the South China Sea. The United States called on China to withdraw its missile systems from disputed features in the Spratly Islands, and reaffirmed that all countries should avoid addressing disputes through coercion or intimidation,” the Department of State released in a statement on Saturday (Philippine time) after the high-level US-China diplomatic and security dialogue in Washington. Both US and China committed to supporting peace and stability in the South China Sea, the peaceful resolution of disputes, and freedom of navigation and overflight and other lawful uses of the sea in accordance with international law during the dialogue, it added.


By Philippine Daily Inquirer
November 12, 2018

Economics

Thailand’s KBank to launch e-wallet, invests $50 million US in Grab Taxi

Grab on Thursday announced a partnership with Thailand’s Kasikornbank to launch mobile payment application GrabPay by KBank. The mobile wallet, which is slated to be launched as soon as early 2019, will allow Grab customers to pay for transport and delivery services, transfer funds, purchase products and services online, and make QR-code payments in restaurants and shops across Thailand. Through Thailand’s national e-payments scheme called PromptPay, all three million QR-enabled merchants in the country will be able to accept GrabPay by KBank.


By The Straits Times
November 9, 2018

Economics

Xi, Kissinger expound ties’ importance

President Xi Jinping met with former US secretary of state Henry Kissinger at the Great Hall of the People in Beijing on Thursday. President Xi Jinping called for coordinated efforts with the United States to promote healthy development of Sino-US ties. Xi made the remark on Thursday while meeting with former US secretary of state Henry Kissinger at the Great Hall of the People in Beijing. The president’s comment comes ahead of his planned meeting with US President Donald Trump at the upcoming G20 Summit in Argentina. China and the US should exercise proper judgment toward each other’s strategic intentions, Xi said, adding that there are rising negative voices in the US toward China of late, which should be taken note of. China would like to properly improve bilateral ties through friendly coordination on the basis of equality and mutual benefit, along with the spirit of mutual


By China Daily
November 9, 2018

Economics

China Trade War Update

China has kicked off the country’s first ever international import expo in Shanghai, an event designed to boost China’s image as a market to the world. President Xi Jinping, in his opening remarks, said that the Shanghai expo isn’t simply an trade fair, rather it should be viewed as a “major policy for China to push for a new round of high-level opening-up and a major measure for China to take the initiative to open its market to the world.” The Import Expo was not initially designed as an answer to the trade war with the United States—the expo was first announced more than a year ago in May of 2017, long before the first shots of the trade war were fired—but in a way that’s what it has become. President Xi


By Quinn Libson
November 8, 2018

Economics

Woman accused of blasphemy freed in Pakistan

Asia Bibi was initially found guilty of blasphemy and sentenced to death. After her release from Multan’s women prison in the light of the Oct 31 Supreme Court verdict overturning her conviction and death sentence, Asia Bibi was brought to Islamabad on board a special aircraft on Wednesday night, reliable sources told Dawn Newspaper. The aircraft carrying Aasia Bibi, whose acquittal of blasphemy charge sparked countrywide protests by religious parties and groups, landed at the old Benazir Bhutto International Airport of Islamabad adjacent to Nur Khan Air Base. Soon after her landing, she was taken to an undisclosed place in Islamabad amid tight security. The authorities were keeping her movement and whereabouts secret for security reasons. Authorities concerned were also tight-lipped about her future plan and it was unclear if she would be kept in Islamabad or would be allowed to fly out of the


By Dawn
November 8, 2018