Asia-Pacific

Review: How Murdoch’s news revolution devoured him

22 September 2017

The play “Ink” dramatises the tycoon’s populist assault on Britain’s cloistered media after buying the Sun in 1969. It’s a deft history of the press culture that eventually led to the phone hacking scandal. These days Rupert Murdoch’s empire is the one at risk of disruption.

ZhongAn’s hit fintech IPO pushes lots of buttons

22 September 2017

The online insurer’s $1.5 bln Hong Kong listing turned into a blowout deal. No wonder: this is an unusual growth stock, with powerful backers and a story that should in time lure mainland investors too. Now the Chinese outfit just has to live up to its lofty valuation.

Diplomatic fog blinds China and U.S. over N. Korea

22 September 2017

Economic curbs are squeezing North Korea but the volley of test missiles hasn't slowed. Trump and Xi have misread the situation, and each other. Kim Jong Un is unimpressed by half-hearted sanctions; they strengthen him domestically. Time to price in the risk of real violence.

Chinese online retailer sits in lap of IPO luxury

21 September 2017

Secoo has carved out a nice niche, selling upscale brands such as Tod's and Versace. Its customer base is small, though, and the firm is burning cash. Even so, impressive order sizes and a clean image make it a tempting target for counterfeit-fighting Alibaba and mass-market JD.

China can afford to shrug off credit downgrades

21 September 2017

S&P just dinged the sovereign rating. Banks have been marked down too. Worries about rising debt are justified, but the market’s non-reaction shows how differently China’s economy is wired. State control and plentiful savings mean Beijing will escape most of the usual fallout.

Hadas: Crypto-currencies presage new monetary era

21 September 2017

No, bitcoin and its peers won’t become an electronic version of the gold standard. Rather, the speculation surrounding them indicates a financial system out of control. If the frenzy ends in a crash, it’s a chance to revive the old idea of a centrally controlled money supply.

What Carney can learn from Yellen

21 September 2017

Fed Chair Janet Yellen showed rate-setters can shock markets even when they stick to the script. That’s a lesson for the Bank of England’s Mark Carney, who has talked up a rate rise this year. Like her, he may have to hike without having solved a host of economic puzzles.

Agarwal’s Anglo wager is risky way to plot breakup

21 September 2017

The Indian billionaire is doubling down. Paying as much as 1.5 billion pounds to raise his stake in the UK-listed miner to 20 pct may be a way of trying to force a breakup. But unpredictable commodities prices and South Africa’s volatile politics could scupper any such plans.

Tencent heats up fintech fight with CICC stake

21 September 2017

The Chinese tech giant is taking a 5 pct stake in the investment bank. Tencent has already cut deeply into Alibaba's share of electronic payments. This will help Tencent grow in wealth management – and chip away at its archrival’s dominance of online money-market funds.

AIA’s new boss gets a good deal in Australia

21 September 2017

New CEO Ng Keng Hooi is buying local life insurance units from the scandal-hit CBA. The move shores up AIA in an important market. Growth at the targets has been lacklustre. But a headline price of $3 bln implies a slim premium, with potential to grow sales and cut costs.

HTC tethers itself to a new virtual reality

21 September 2017

The ailing Taiwanese firm will sell part of its handset unit to Google for $1 billion. This will free up HTC to focus more on its risky but promising VR business, where it is winning market share. Deeper ties with the U.S giant might also help fend off rivals Sony and Facebook.

Memory sale leaves a hollowed-out Toshiba

20 September 2017

After many leaks, lawsuits and U-turns, Toshiba is set to sell its prized flash-memory unit to Bain and partners for $18 bln. A successful sale would fix the balance sheet and placate lenders. It also reduces a Japanese industrial icon to a ragbag of barely profitable businesses.

Tata Steel deal crystallises overseas M&A pain

20 September 2017

The Indian group’s deal with ThyssenKrupp will shore up the ailing business it bought in 2007. But the joint venture will assume just a quarter of the European unit’s 9.5 bln euros of liabilities. That’s bad for Tata Steel shareholders. At least its rich parent is supportive.

Tata Steel JV pays ThyssenKrupp four dividends

20 September 2017

A historic joint venture with India's Tata will unshackle the German group from the fickle, capital-intensive steel industry. Lower pension liabilities, a share of synergies worth 3 bln euros and a more robust balance sheet are further benefits. Workers will fare better too.

Snap poll in Japan would be mixed for investors

20 September 2017

A renewed mandate for Premier Shinzo Abe would provide political certainty. It could also bring a big tax hike, which would hurt growth and the battle against deflation. In turn, that calls for yet more super-easy monetary policy: a plus for markets, at least in the short-term.

South Korea wobbles walking U.S.-China high-wire

20 September 2017

Seoul's balancing act between China and America looks untenable. North Korean missiles are flying, yet Beijing is spanking South Korea over a U.S. missile-defence system. Trump, unsympathetic, wants trade concessions. Perhaps it’s time for a regional counterbalance to China.

China “Belt and Road” waves red flag for investors

18 September 2017

Beijing’s vision of infrastructure connecting some 70 countries already has fund firms rushing to create vehicles to lure investment. But broad index ETFs miss that many projects make little commercial sense. Skeptical punters should focus on a narrower set of potential winners.

Market returns Best’s IPO plans to sender

19 September 2017

The Alibaba-backed logistics firm has cut the price of its New York flotation, and slashed the deal’s size to $495 mln, IFR reports. Best has belatedly recognised it was asking too much of investors, given the poor performance of rival ZTO, and its own evolving business model.

Foreign automakers will pay for Chinese EV drive

19 September 2017

China’s pledge to scrap gas guzzlers looks serious. A new quota system will force motor-makers to sell electric vehicles. Those who miss targets must buy credits from battery-powered rivals. Home-grown brands are likely to reap the benefits, at the expense of global giants.

Activist has fighting chance with China’s Sina

19 September 2017

U.S. hedge fund Aristeia is going after the $8 bln Chinese web company. Sina looks like a good target: it is clearly undervalued and its boss is not protected by super-voting shares. A big stake in microblogging affiliate Weibo offers some straightforward ways to create value.