Though it hasn’t been slower since 2009, the pace of expansion in the world’s second-biggest economy is still rapid enough to avert the need for a humiliating stimulus. The big exception is real estate, where some kind of meddling to ease a funding crunch looks unavoidable.
The stock exchange is poised to launch a debate on shareholder voting rights after Alibaba cancelled its listing in the former colony. Dumping “one share, one vote” won’t necessarily attract many new IPOs. But it would undermine Hong Kong’s already shaky corporate governance.
The UK distiller is again trying to tighten its grip on India’s United Spirits. It’s offering $1.9 bln to nearly double its stake to 54.8 pct. A sky-high multiple of 38 times EBITDA gives this offer better odds than the last. And there’s industrial logic to offset the huge price.
Empty coffers await the opposition leader who is widely tipped to be the country’s next prime minister. Instead of pursing self-defeating austerity, Narendra Modi could pass on more federal spending budget to India’s states. Their expenditure produces three times more output.
A potential $11 bln tie-up of booking sites Ctrip and Qunar sounds dandy. But the real break may be for search engine Baidu. As Qunar’s biggest shareholder, it could get a first-class seat in the merged duo, with room to take a bigger stake when valuations come back to earth.
The private Chinese pork producer hasn’t had much time to justify the fat premium it paid for Smithfield last year. Yet relisting the enlarged group in Hong Kong implies the value of the U.S. business has risen at least 21 percent. Others will be tempted to try a similar trick.
Finance ministers meeting in DC blasted Congress’ refusal to back more lending power for the fund and a bigger voice for the likes of China and Brazil. Harsh words alone won’t do much. But votes against Ukraine loans and other plans would inflict a high price on foot-dragging.