Asia-Pacific

China’s electric cars reinvent the wheel for good

3 Oct 2023

The country’s automakers are overtaking legacy marques at home and abroad. In this Exchange podcast, industry consultant Tu Le explains what has given BYD, especially, the edge over rivals. He also makes the case for treating Elon Musk’s Tesla as a Chinese carmaker.

China has reason not to let Evergrande rejig rot

3 Oct 2023

Its chairman is suspected of crimes. Offshore creditors may hope a proposal to restructure their $19 bln holdings is still on the table. A forced liquidation will see them recover as little as 2%. Their fate will offer a clue to whether Beijing still values overseas debt markets.

Capital Calls: Birkenstock IPO

2 Oct 2023

Concise views on global finance: The German footwear brand is offering shares at between $44 and $49 ahead of its market debut next week.

Peak China may pose peak danger

2 Oct 2023

A glance through history suggests great powers are a threat whether they are rising or falling. China may be especially dangerous as its economic growth slows. It is riling its neighbours. Investors would be wise to assign a greater weight to this fat tail risk, says Hugo Dixon.

Capital Calls: US government shutdown

29 Sep 2023

Concise views on global finance: Civil servants, who already earn 24% less than the market rate, lose their pay when Washington closes. Legislators, meanwhile, keep collecting their $174,000 salaries. Having skin in the game would help focus congressional minds.

PwC Aussie mess is classic do as I say not as I do

29 Sep 2023

An independent review sparked by a tax-leak scandal lays bare governance failures at the advisory firm including an overly powerful CEO, a supine board, poor risk processes and, ironically, an aversion to external help. Fixing those is just the start of the company's turnaround.

Capital Calls: Pelululemon

28 Sep 2023

Concise views on global finance: The apparel firm and the exercise-bike maker have entered into a five-year partnership, ending a costly feud. For Lululemon, it removes the risk of an outright acquisition. Peloton gains a valuable partner, but still faces an uphill climb.

China plus one will lift India’s capital market

28 Sep 2023

Global funds are doubling down on India, supporting IPOs. JSW Infrastructure attracted $7.3 bln of orders for fewer than $200 mln-worth of shares. It paves the way for big debuts like Ola Electric and Reliance Retail. Investors, though, are entering a market priced to perfection.

Indonesia spoils TikTok’s Southeast Asia party

28 Sep 2023

The region’s largest economy is banning social media outlets from hosting direct sales on their platforms. That’ll hit ByteDance’s short-form video app hard: it has 125 mln Indonesian users and the country is its main e-commerce market. So much for mixing business with pleasure.

Capital Calls: UBS Russia risk

27 Sep 2023

Concise views on global finance: The Swiss bank’s value fell by $3 bln after Bloomberg reported that the US Department of Justice is investigating the recent acquisition of Credit Suisse over possible compliance failures.

Byju’s restructuring leaves one big job untouched

27 Sep 2023

India’s troubled edtech star may slash 5,000 roles in its overhaul. That’s easy work compared to solving its $1.2 bln loan dispute. Co-founder Byju Raveendran remains CEO. Starting a new chapter with old hands is tough but it reflects a hard reality for the Prosus-backed group.

Lithium merger is charged up by tycoon fever

27 Sep 2023

Gina Rinehart, Australia’s richest person, has bought 11% of Liontown, which is sizing up a $4 bln takeover by Albemarle. Whether she makes a full bid or not, she’s only the latest mining billionaire forcing a strategic buyer to dig deeper for an energy transition commodity.

Capital Calls: Net neutrality is back, again

26 Sep 2023

Concise views on global finance: US regulators want to reopen a decade-old fight over the internet’s rules of the road. But just like merger cops who have struggled to gain traction, they are trying to use yesterday’s tools to predict tomorrow’s problems.

Hong Kong bankers play an anxious waiting game

26 Sep 2023

Fewer IPOs in the city mean firms such as UBS and Bank of America are more willing to handle middling transactions like Tuhu’s $150 mln offer. But as big deals stir in New York and beyond, the downsizing increasingly will look like an awkward stopgap for Wall Street.

Nomura is merely first in line for new China risk

25 Sep 2023

Charles Wang Zhonghe, the firm’s Hong Kong-based chair of investment banking for the People’s Republic, is barred from leaving the mainland. Overseas banks committing to bulk up in the country may no longer be able to avoid the effects of President Xi Jinping’s crackdowns.

Evergrande is weak link in China’s property fix

25 Sep 2023

The developer’s debt rejig has fallen before the first hurdle. It can’t issue new notes because of an investigation. For all Sunac and Country Garden’s good news, Evergrande accounts for half of the trio’s $670 bln liabilities. Its struggles will hold back the entire market.

Western rival to Belt and Road has much to prove

25 Sep 2023

The G7’s $600 bln plan to compete with China’s flagging investment push has launched splashy railway and energy schemes in Africa and Asia. But governments and private investors haven’t put up much cash. It’s also unclear how poor countries will avoid debt traps, says Hugo Dixon.

Ukraine war gives wings to India bond index debut

22 Sep 2023

JPMorgan will add the country’s sovereign debt to its emerging market index, easing concentration issues following Russia’s exclusion. It drags foreigners into a $1 trln market. New Delhi sees new gains from opening but it may have to bend on taxes and more to win wider backing.

M&A spillover in India-Canada fight hurts everyone

22 Sep 2023

As bilateral relations sour over a murder, tycoon Sajjan Jindal is going slow on his planned $8 bln consortium bid led by JSW Steel for Vancouver-based Teck’s coal assets. The stalling hurts the buyer and the seller, and India’s diversification ambitions a bit more.

Capital Calls: US budget

21 Sep 2023

Concise views on global finance: US House Speaker Kevin McCarthy is siding with hardline conservatives to fund the government. Empowering the further-right flank narrows the already slim odds of new Ukraine aid, cannabis reform and crypto clarity.