Asia-Pacific

Review: What can be more premium than luxury?

30 October 2020

The next generation of affluent shoppers will spend more on experiences and edgy products, says Erwan Rambourg in “Future Luxe”. That may dim the appeal of classic deluxe products like Gucci bags or Cartier watches. Luxury will be more about what you do than just what you own.

Corona Capital: Netflix price hike

30 October 2020

Concise views on the pandemic’s corporate and financial fallout: The streaming-video service hiked the price on subscriptions as binge-watching booms during the pandemic.

Trump vs. Biden is sideshow for Xi

30 October 2020

U.S. elections are closely followed in China, but the outcome of this year’s presidential ballot may matter less this time. Trump's tough act on Beijing has wrought little real damage. And while neither candidate is likely to thaw relations, the pandemic has left America weaker.

Lufax slips softly priced IPO past Ant hullaballoo

30 October 2020

The Ping An-backed Chinese fintech outfit has garnered less hype than Jack Ma’s record-shattering rival. It isn’t growing as fast, but its online lending unit is profitable and established. A $33 bln valuation, at 13 times forecast 2021 earnings, makes for a compelling option.

Nokia makes a meal of its Huawei free lunch

29 October 2020

The $19 bln telecom giant’s shares slumped after it slashed operating margins. New boss Pekka Lundmark is right to beef up investment to improve its 5G offering as China’s Huawei battles U.S. hostility. But right now Nokia is losing out on new business rather than snapping it up.

Corona Capital: Utah Jazz, Comcast, Kraft

29 October 2020

Concise views on the pandemic’s corporate and financial fallout: Utah Jazz’s owners sign off with a respectable return; Comcast shoots the light out on broadband; and Kraft rides the stay-at-home wave.

Beijing comes banging on real estate’s door

29 October 2020

The central bank has asked developers to report monthly investments, loans and more. It’s an extraordinary step to rein in China Evergrande and peers, which have amassed over $2.5 trln of debt. President Xi Jinping’s push to reallocate investment out of property is gaining steam.

Chinese lender IPO mess holds rules up to ridicule

29 October 2020

Xiamen Bank shares surged by the maximum allowable 44% in their Shanghai debut. That’s par for the course on primary mainland boards, but a day-two 10% plunge and trading halt are not. Semi-official guidance distorts bank pricing in particular, and is overdue for revision.

Corona Capital: Drugmaker’s pick-me-up, Golf M&A

28 October 2020

Concise views on the pandemic’s corporate and financial fallout: Drugmaker GSK sees a recovery in vaccinations against old-school ailments; meanwhile Covid-19 turns out to be a handy driver when it comes to golf-related dealmaking.

Nomura cashes last post-dated efficiency cheque

28 October 2020

Chief Executive Kentaro Okuda pledged to reinvent the bank when he took over in April, and now he’s delivered higher pre-tax profit in its three main units with record input from overseas. Earlier revamps did a lot of lifting. That cues Okuda to start a deeper overhaul.

It’s time for Sheldon Adelson to leave Las Vegas

28 October 2020

His $37 bln casino company may sell U.S. assets for $6 bln to double down on fast-growing Asian markets. That would thin its hedge against risks in Chinese Macau, but Nevada contributes barely 10% of earnings. Las Vegas Sands could use the cash for deals – and debts.

Big banks are ill-suited to be biodiversity cops

28 October 2020

Under pressure from investors and regulators, lenders have woken up to the financial risks of climate change. Activists are pushing for similar urgency in protecting the world’s variety of plants, animals and insects. But any big shift requires governments to lay down the law.

Remember TikTok? Send an indulgence to deal gods

28 October 2020

The Chinese-backed video platform is waiting for a U.S. court ruling, Trump administration approval, and then Beijing has to have a word. That’s all before integration with Oracle and Walmart even starts. With the U.S. election forthcoming, TikTok is stuck in M&A purgatory.

Corona Capital: Binge-watching, Gaming

27 October 2020

Concise views on the pandemic’s corporate and financial fallout: Streaming viewers like to binge-watch, but they are being stingy; a fresh surge of Covid-19 cases could be a boon for gaming developers.

Noel Quinn deftly sails HSBC into stiff winds

27 October 2020

A 36% fall in quarterly profit was better than feared thanks in part to choppy markets. The CEO’s plan to wring more fees out of customers is also welcome. Low interest rates are only one problem, though. UK, U.S. and Chinese authorities loom too large over the bank’s prospects.

Ant’s $312 bln valuation puts faith in fast growth

27 October 2020

Both the Hong Kong and Shanghai shares priced with a lucky number eight. To achieve the symbolised prosperity, the Chinese fintech giant’s profit would have to double by 2022 based on the conservative 24 times multiple. Much rides on winning over customers and regulators alike.

Moutai’s charitable turn will be real market drag

27 October 2020

The Chinese liquor champion’s mediocre third-quarter results shaved $14 bln from its market cap on Monday. The $309 bln index heavyweight is giving handouts to local governments even as state investors dump shares the company gave them. Worse, there’s probably more to come.

Coke bottler serves up flat cross-border deal

26 October 2020

Europe’s main distributor of the iconic soda offered $6.2 bln for its Aussie peer, hoping to tap fizzier markets and expand beyond Coke. Though Coca-Cola is taking a discount for part of its 31% stake in the target, scant synergies fail to justify the premium for other investors.

Corona Capital: Mixed market messages, Chile votes

26 October 2020

Concise views on the pandemic’s corporate and financial fallout: Global stocks slumped on Monday as Covid-19 cases rose – yet some prognosticators are readying for major stimulus; and Chile has shown that pandemics don’t have to squash voter turnout.

Samsung chairman bequeaths a tainted empire

25 October 2020

Lee Kun-hee, who transformed a noodle business into a smartphone and chipmaking colossus, has died at 78. The second-generation leader's mark on Korea Inc will endure, as do scandals that follow the family. Their challenge is to clean up the messy parts of his $355 bln legacy.