Asia-Pacific

Viewsroom: Biden’s inauguration, China’s stresses

21 January 2021

The new U.S. president arrives with a long to-do list, good intentions and a swelling national debt pile. Gina Chon and Richard Beales talk with John Foley about what to expect. Plus: New lockdowns bring fresh financial problems in China, as Yawen Chen and Pete Sweeney explain.

Guest view: Voluntary carbon markets carry risks

21 January 2021

Surging demand for carbon credits is a positive sign of private sector interest in addressing climate change. But it makes no sense to scale up voluntary markets if it’s not clear what these traded commodities actually represent. Or how they will help meet global climate goals.

Corona Capital: Intel, Run on guns

21 January 2021

Concise views on the pandemic’s corporate and financial fallout: Intel’s new boss gets closer to his big debut. Meanwhile, gunmakers are riding high on social tensions and pandemic angst, but could soon find they have fewer friends in high places.

Chinese monopoly rules threaten super-app model

21 January 2021

The central bank has defined payments dominance in market-share terms, squarely targeting Ant and Tencent. Its new draft rules also separate transactions from interest-bearing products. That will complicate cross-selling more profitable services, and deter new competitors.

China’s energy policy keeps blowing fuse

21 January 2021

Widespread electricity rationing last month slowed factory output, threatening another harsh winter for Chinese households. Banning Aussie coal didn’t help, but Beijing has stalled reforms to its grid monopoly, forcing a choice between emissions targets and keeping the lights on.

Corona Capital: ESG investing, U.S. moves, P&G

20 January 2021

Concise views on the pandemic’s corporate and financial fallout: ESG opens up investing opportunities; home values in U.S. resort towns rise faster than rural areas; and Procter & Gamble cleans up.

Elliott’s HK exit reflects Asia activist reality

20 January 2021

The hedge fund is closing its Hong Kong base and will run its Asian campaigns from Tokyo and London. Moving amid the city’s political strife raises eyebrows, but the region’s rapid growth in shareholder shake-ups is passing China by. Paul Singer’s group is following the money.

Indian beauty shop all dolled up with places to go

20 January 2021

Nykaa makes it easy for millennials in far-flung cities to buy branded cosmetics online. The TPG-backed startup is growing fast without discounting deeply while keeping a lid on losses. That should help a mooted $3 bln IPO valuation – if it isn’t snapped up by a tech titan first.

Corona Capital: Bank of America, Halliburton, NBA

19 January 2021

Concise views on the pandemic’s corporate and financial fallout: Bank of America’s animalistic analogies; Halliburton sees a recovery that can’t come soon enough; The New York Knicks’ valuation has its top spot to lose.

Hong Kong stays on dangerous roller coaster ride

19 January 2021

Troubled Ocean Park is receiving another government lifeline, growing its rescue cost to over $1 bln. That's more than the latest stimulus package, in a further sign of the city’s skewed priorities. Even with a new business model, the park is destined for more downs than ups.

Breakdown: Evergrande’s rejig offers measure of Xi

19 January 2021

The indebted developer is scrambling to reorganise as officials move to end the nation’s property goldrush. The result is a frenzy of deals and diversification. Breakingviews explains how the group seen as too big to fail will test Xi Jinping’s resolve to deleverage the economy.

Samsung boss verdict softens chaebol reform push

18 January 2021

Jay Y. Lee has been sentenced to 30 months in prison for bribery, less than what prosecutors requested. The lenient outcome fuels fears that protecting jobs takes priority over reining in South Korea’s powerful conglomerates. Regardless, governance upgrades might be delayed.

New Rio Tinto boss has Mongolian bullet to bite

18 January 2021

Atop Jakob Stausholm’s to-do list is sorting out the miner’s troubled $10 bln Oyu Tolgoi copper project. Satisfying Ulaanbaatar, pushy hedge funds and minority shareholders at once will be impossible. Raising equity and reworking a sticky loan structure are the least-bad options.

Total’s Indian green energy splurge has two hedges

18 January 2021

The French giant is upping its exposure to renewable power by buying 20% of Adani Green Energy. The $2.5 bln price tag is well below the target’s market value. Teaming up with tycoon Gautam Adani may also help avoid problems suffered by other Western energy groups in India.

Corona Capital: Indian banks, LBOs, Stellantis

18 January 2021

Concise views on the pandemic’s corporate and financial fallout: Indian banking guru Aditya Puri gives reasons to be bullish about New Delhi’s lenders at a Breakingviews predictions event; the ECB cracks down on risky loans; carmaker Stellantis gets a boost from passive funds.

China faces side-effects of growth medicine

18 January 2021

China's economy grew 2.3% in 2020 thanks to tough pandemic measures, an export boom and a flood of credit. But local governments’ fiscal stress has become acute, social frictions are rising, and private-sector investment is slowing. This year could be trickier than the last.

Corona Capital: Satellites, Shoes

15 January 2021

Concise views on the pandemic’s corporate and financial fallout: SoftBank pours cash into satellite startup; and footwear winners and losers.

Chinese investors can soothe Xiaomi’s U.S. pains

15 January 2021

Investors wiped out $10 bln in market value from the Hong Kong-listed phone maker on its addition to a U.S. blacklist of firms that Americans cannot own. Yet others like China Mobile have seen local buyers piling in, offsetting the selloff. Xiaomi can expect similar.

KKR owes $1.3 bln debt of gratitude to China

15 January 2021

Applied Materials will pay the buyout shop $3.5 bln for smaller peer Kokusai instead of the $2.2 bln agreed in 2019. Beijing has delayed giving its blessing so long that the microchip sector improved. The rare upward price negotiation should help even if the deal falls through.

Xi rewrites China’s rags to riches tale

15 January 2021

Zhong Shanshan sits atop Asia’s largest fortune, at $84 bln, thanks to bets in bottled water and vaccines. His rise reflects a new economy, where property and tech bosses have fallen out of favour. But as Beijing frets over stock bubbles, new wealth can be just as easily lost.