Asia-Pacific

Pig crisis gives China a shot at transparency

18 September 2019

African swine fever has driven local pork prices up by about 50% in a year. Inflation remains muted regardless, prompting some speculation that officials may be massaging the figures. Other factors make that unlikely, but it's a rare opportunity for Beijing to open up – a little.

AB InBev returns to Hong Kong with a soberer pitch

18 September 2019READY SOON

The Belgian brewer’s Asia unit has relaunched its failed IPO with a lower $4.8 bln target, offering a better growth story at a similar valuation. CEO Carlos Brito may fetch more for the business than he originally wanted, too. Flourishing in a rocky market will be the tough part.

Sony’s activist defence is only semi-convincing

17 September 2019

The $75 bln Japanese entertainment conglomerate rejected a call from Dan Loeb’s Third Point to spin off its chips business. The long-term case for keeping it is fuzzy but this may not be the best time for separation. It’s harder to support Sony holding onto its finance unit.

AIA has a good option against Hong Kong turmoil

17 September 2019

The $120 bln insurer is vulnerable to protests rocking the city with an estimated one third of new business dependent on visitors from the mainland, many hoping to move money offshore. AIA’s policies sold in China are no substitute, but expansion there will ease any future pain.

Dairy deal Down Under unlocks China prize

17 September 2019

State-backed Mengniu wants to buy Bellamy’s, a maker of infant formula, for some $980 mln. The premium looks frothy, and such tie-ups have soured before. But if local ties mean licences and an Aussie brand lures wealthy buyers, shareholders are right to bet on success.

China keeps trade war fire away from Wall Street

17 September 2019

Goldman Sachs wants a majority stake in its local joint venture. Beijing looks open to letting U.S. banks boost their presence despite tensions. Their lack of market heft means they don’t threaten local rivals, and China needs their support in the future.

The Exchange: The Asianisation of the world

17 September 2019

A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.

Hong Kong’s revived IPOs play to tougher crowd

16 September 2019

AB InBev and ESR are restarting float plans cancelled during violent protests. Both may have better sales pitches, but ongoing unrest in the city and economic headwinds could still dampen demand. That they are pushing ahead anyway suggests they fear next year will be worse.

Tencent jams pedal into battered China car market

16 September 2019

The tech giant and others have made a roughly $1.2 bln offer for comparison site Bitauto. That will in turn mean bidding for online retailer Yixin, which the target part-owns. It’s a cheap bet that may bring benefits in payments; acceleration will still require an auto recovery.

Washington casts longer shadow over Hong Kong

16 September 2019

Protests in the Chinese territory have rallied momentum for a proposal that scrutinises its special trade status and threatens sanctions. It’ll be hard to make the bill a priority in Congress, but President Trump could use it as leverage as he seeks a broader deal with Beijing.

Huawei’s post-American world comes into hazy view

13 September 2019

The Chinese telco giant plans to raise $850 mln in its first onshore bond issuance. It’s also ready to share its prized 5G know-how with foreign firms. Innovative concessions may blunt a relentless U.S.-led assault on its reach, but still point to a more domestic-focused future.

Big Oil’s climate smokescreen is about to clear

13 September 2019

Exxon Mobil and others often cite a well-worn global warming scenario to imply their models are sustainable. A major study, by a body whose signatories represent $86 trln of assets, should make that harder. Especially as it will soon shine a spotlight on individual companies.

A little sunlight would help India’s shadow banks

13 September 2019

Alternative lenders have grown rapidly, providing loans for cars and homes. Now many are struggling to secure funds and share prices have plunged. A central bank-led review to expose the weakest would restore confidence and help reverse India's sharp consumption-led slowdown.

Hong Kong’s LSE bid suffers market credibility gap

12 September 2019

Shares in Hong Kong Exchanges and Clearing barely budged in response to a bold $37 bln cash-and-share offer for its London rival. That could be a sign that investors like the combination. A better explanation is that they think it’s unlikely to happen.

Yahoo Japan pushes Zozo investors into new orbit

12 September 2019

The SoftBank-backed web portal offered $3.7 bln for control of the ailing fashion site. Zozo’s boss, who bought SpaceX’s first ticket to the moon, is tendering most of his stake. Other owners may want to sell too: Yahoo Japan recently trampled on minority shareholders elsewhere.

It’s time to quit Japanese staffing giant Recruit

12 September 2019

Local companies are selling a combined 7%, but substantial cross-holdings remain an overhang. Worse, a market valuation of $50 bln relies on strong growth in HR tech, including its job review site Glassdoor, even as economic signs weaken. Justifying that will become harder work.

Viewsroom: Nissan’s car-crash CEO

11 September 2019

Hiroto Saikawa is stepping down amid controversy over his pay. It has implications for the company’s rocky Renault alliance, and by extension for the French carmaker’s recent attempt to merge with Fiat Chrysler. Plus, is activist Elliott Management going soft on AT&T?

HKEX bids $37 bln to halt London rival’s escape

11 September 2019

Hong Kong’s exchange is dangling a 23% premium to LSE shareholders if they reject a $27 bln deal with data provider Refinitiv. It’s a last-ditch attempt to snag the perennial takeover target. But the tie-up has only vague financial benefits and faces a tricky political reception.

Beijing’s new moves dance around capital controls

11 September 2019

Quotas on a pair of high-profile inbound investment schemes are being scrapped. It’s partly symbolic, given that a $300 bln cap was never hit. China wants more foreign funds, but not enough to put outbound flows at risk. Mounting debt problems will further entrench the system.

Cash incinerator WeWork could stall without an IPO

10 September 2019

Backer SoftBank wants the company to scrap a cut-price listing, the FT says. Yet the office sublessor may burn $15 bln by 2023, even if cash outflows reverse to match profitable peer IWG, a Breakingviews calculator suggests. Without IPO proceeds, WeWork may not last that long.