Asia-Pacific

Capital Calls: Fund services M&A, Mattress mystery

6 Dec 2021

Concise views on global finance: Shareholders of Amsterdam-listed Intertrust dodge a regulatory crackdown with a 1.8 bln euro sale; the western man credited with Chinese retailer DeRucci’s success finally has his identity revealed.

Alibaba’s new CFO signals shifting priorities

6 Dec 2021

The Chinese e-commerce company, whose market value has halved to $300 bln this year, is replacing finance chief Maggie Wu. During her seven-year tenure, Alibaba successfully courted foreign investors. Successor Toby Xu’s experience suggests there will be a greater focus at home.

China property market faces more nationalisation

6 Dec 2021

Evergrande, the country’s most indebted developer, has admitted it might formally default. With $10 bln in property bonds maturing in January alone, officials are under pressure to keep the sector from collapsing. The most expedient solution is to put more housing in state hands.

Capital Calls: Zoom, U.S. jobs

3 Dec 2021

Concise views on global finance: The video-conferencing service is investing in Amex Global Business Travel as part of a $5.3 bln SPAC deal; in the United States, only 210,000 positions were added in November, but the unemployment rate fell.

Review: An antidote to the cult of busyness

3 Dec 2021

The pandemic focused minds on life’s brevity. Oliver Burkeman delves into fruitful approaches to using that limited time in “Four Thousand Weeks”. It’s an articulate reflection on distraction, the joyless urgency of productivity hacks, and why keeping options open may be futile.

Didi faces long and perilous journey to Hong Kong

3 Dec 2021

The $38 bln ride-hailing group is eschewing its New York listing for one in the Asian hub amid pressure from Beijing. A take-private would be costly; migrating American depositary receipts could be tricky. Didi will have to navigate Hong Kong's tougher IPO requirements too.

Legal challenge affirms logic of Nvidia mega-deal

3 Dec 2021

U.S. trustbusters are suing to block the chipmaker’s controversial Arm acquisition. A growing price tag, from $40 bln to about $75 bln, undermines the financial value. At least the FTC is, in a way, buttressing the strategic rationale of buying the Switzerland of semiconductors.

Alibaba looms larger than Beijing in Weibo IPO

3 Dec 2021

China's $8 bln answer to Twitter is readying a secondary listing in Hong Kong. The company’s sway over public opinion means it is a frequent target of censorship campaigns and regulatory crackdowns. That makes the e-commerce giant's 30% stake a political liability for both.

It’s a dangerous time to buy China’s property dip

3 Dec 2021

Small Chinese developer Fantasia shocked markets when it defaulted on a $206 mln bond out of the blue, despite $4 bln in cash on its balance sheet. Now creditors are pushing it toward bankruptcy. Investors eying distressed property bonds should think twice; Fantasia has company.

Super-app Grab gets rear-ended

3 Dec 2021

The group’s shares plunged 20% on debut following its $31 bln SPAC merger. Unlike China’s Didi or India’s Paytm, the crash wasn't so much its fault; the Altimeter- and Temasek-backed deal was well-enough constructed. But Grab is in a market pile-up that won’t clear soon.

CSL’s Swiss drug punt looks like a bad trip

2 Dec 2021

The $99 bln Aussie jab maker is in talks to buy iron-deficiency specialist Vifor for around $7 bln. CEO Paul Perreault has a track record of strong growth and winning M&A. The prospect of subpar returns and a looming patent expiry suggest his golden touch is losing its lustre.

Capital Calls: Dan Loeb, Daily Mail

2 Dec 2021

Concise views on global finance: The billionaire activist swats away his own gadfly investor; the UK tabloid’s controlling Rothermere family sweetens its take-private offer, to the presumable delight of the campaigners on its news desk.

China’s VIE problem is resolving itself

2 Dec 2021

Beijing may try to tighten data oversight by banning companies from listing overseas using variable interest entities. U.S. regulators are already pushing back on the structures and companies rethinking IPO venues. Another heavy-handed crackdown risks being unnecessarily clumsy.

Pharmacy bidding war stands to get more feverish

2 Dec 2021

Aussie supermarket chain Woolworths has offered 13% extra to buy Priceline owner API over an agreed deal with Wesfarmers. The premium now stands at a whopping 53%. Deep-pocketed buyers, a frenzied M&A market and the implied returns are a prescription for additional sweeteners.

Women’s Tennis models real China ESG

2 Dec 2021

The association is halting lucrative tournaments in the country after local star Peng Shuai went missing following sexual assault claims. Western companies generally exempt China from espoused social values. The weak track record makes it hard to see many following the WTA lead.

Vaccinating the world is a worthy but elusive goal

1 Dec 2021

Ensuring all rich and poor countries are fully jabbed is the best way to stop Covid-19 variants. The cost of lockdowns makes it an economic necessity. The challenge, as South Africa shows, is getting needles to people, and persuading them of the benefits. That may take years.

Super-app Grab rides high into New York debut

1 Dec 2021

The Southeast Asian giant held firm in a difficult year. It’s on track to hit targets set from its record $31 bln SPAC merger, supporting a rich 13 times sales valuation multiple. Margins in its ride-hailing business show the promise of its food-delivery-to-fintech ambitions.

Macau mogul’s downfall is good news for casinos

1 Dec 2021

China’s investigation into an illegal gambling group casts a shadow over Alvin Chau’s Suncity, which once helped high rollers fund as much as $8 bln in wagers each year in the betting hub. But the VIP market is a drag on earnings. Ending it can help strengthen recovering casinos.

Capital Calls: Volkswagen, Turkey

1 Dec 2021

Concise views on global finance: The German carmaker may take mining stakes to secure electric-vehicle raw materials, echoing Henry Ford, the U.S. production-line pioneer; the Turkish central bank is resorting to old tricks to prop up the lira but it’s an unsustainable strategy.

Capital Calls: Wise, Swedish oil

30 Nov 2021

Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.