Asia-Pacific

Hadas: Boeing lens refracts a Beijing dilemma

21 August 2019

Xi Jinping wants both tight government control and a modern economy. That combination has never worked, for good reasons. China’s leader could learn from the U.S. aerospace giant’s mess. A politically uncomfortable free press can be an economically helpful check on corruption.

Alibaba drives home costs of Hong Kong unrest

21 August 2019

The Chinese giant will delay a mooted $15 bln listing in the Asian hub after brewer AB InBev shelved its own. A trade war and protests are a poor backdrop for big offers. That will deter others and land a fresh blow to a city where business confidence is rapidly on the decline.

Meituan Dianping gets better at multitasking

21 August 2019

The $50 bln delivery-to-ride-hailing giant’s takeaway unit is expected to post its first profitable quarter on Friday, as it gets better at juggling multiple businesses. It has scaled down a costly bike sharing venture, while a push into groceries and maps plays to its strengths.

India could use a good economic crisis

21 August 2019

Car sales are down, unemployment is up and new investment proposals are at a 15-year low. There may be a silver lining: India has a record of bold reforms in times of stress, as when the country opened up in 1991. Prime Minister Narendra Modi has the mandate to repeat the trick.

Smartphones may be as good as it gets for Xiaomi

20 August 2019

Revenue at the Chinese group's handset unit rose a tad despite shrinking demand for such devices. But a push into internet services has been disappointing: Boss Lei Jun is struggling to wring more money out of a growing user base. Xiaomi’s premium valuation looks too generous.

Twitter deserves a follow for China mute and block

20 August 2019

The $32 bln social network suspended state-backed accounts trying to subvert protests in Hong Kong. It also will stop taking ads from government-controlled media. Beijing’s wedge issue is a good opportunity for Facebook, YouTube and others to reconsider profiting from propaganda.

BHP boss makes himself tougher act to follow

20 August 2019

The miner reported a record $3.9 bln final dividend alongside its highest earnings in five years. Even as CEO Andrew Mackenzie conserves cash ahead of economic clouds and the end of his tenure, he has fulfilled shareholder return pledges. Any successor will face harder choices.

It is too soon to call a bottom on Baidu

20 August 2019

Despite a 62% decline in quarterly profit, the $36 bln Chinese internet company gave investors something to cheer with unexpected growth in video. Its main search business is hurting, though, and the ad outlook is weak. ByteDance and Meituan Dianping are coming for Baidu, too.

Li Ka-shing raises fresh glass to diversification

19 August 2019

Hong Kong’s richest man is buying the Greene King pub chain for $5.6 bln including debt. Most of his empire’s sales are abroad already. But given the deal injects new capital into the UK, it’s still a boon for Brexit Britain and a minor thumbs-down for his troubled home turf.

SoftBank skin in the game risks major organ damage

19 August 2019

CEO Masayoshi Son and his dealmakers could contribute a chunk of the capital for Vision Fund 2, according to reports. Aligning staff and investors’ incentives is one thing. But since SoftBank would lend them the cash, its own losses would be magnified if the tech vehicle flops.

Chinese tourists’ reverse-Marco Polo is no fluke

19 August 2019

The flow of visitors from the Middle Kingdom to Italy has jumped. That is the reward for becoming the People’s Republic’s new best European friend. The Communist party uses its $315 bln outbound tourism market to exercise soft power, helping friends and punishing foes.

China’s rate reform inches along the market path

19 August 2019

The central bank is shaking up loan pricing, pushing aside a long-standing benchmark set by officials. It’s an overdue step designed to ease credit conditions and help companies borrow. Transmission problems remain, but a move closer to a more responsive system is welcome.

Baht’s brawn weakens sick man of Southeast Asia

19 August 2019

Thailand’s $500 bln economy expanded at its slowest rate in nearly five years last quarter, hit by cooling exports and tourism. Yet its currency is an outperformer, aggravating both problems. Lower rates and public spending could weaken it, as might investing more funds abroad.

Cathay shakeup clarifies China’s corporate muscle

16 August 2019

Boss Rupert Hogg and a top deputy resigned abruptly after the $5 bln airline scrambled to quell a mainland backlash related to Hong Kong protests. State carrier Air China owns a smaller stake than Swire, but Beijing’s sway looks bigger. The timing couldn’t be worse for Cathay.

SoftBank’s Saudi substitute is a head-scratcher

16 August 2019

CEO Masayoshi Son thinks he can raise $108 bln for his second Vision Fund without the Gulf state which bankrolled the first. Yet the numbers make it hard to see how he will do so. They imply either a big corporate or a Kazakhstani fund is writing an unexpectedly large cheque.

Unrest is recurring cost of Hong Kong’s stinginess

16 August 2019

Since demonstrations rocked the city in 2014, economic roots of dissatisfaction have worsened. Housing prices rose, tycoons’ dominance increased, and officials made token gestures while hoarding fiscal reserves. Today’s protests are political, but inequality feeds the flames.

Nio flashes warning for China’s luxury car market

16 August 2019

A co-founder of the $3 bln Tesla wannabe has quit, the latest in a string of departures. It comes after battery fires and other strategic missteps at the electric-vehicle maker. But its woes may also portend slowing premium demand: that should worry peers.

Viewsroom: WeWork unfurls the red flags

15 August 2019

The shared-office provider’s long-awaited IPO filing is packed with pointless life-affirming tropes. But it also details a host of conflicts of interest and other risks that should send investors running. Plus: India’s powerhouse Reliance is building a war chest for dominance.

Alibaba gets tailwind from Beijing stimulus

15 August 2019

Better-than-expected quarterly results from Jack Ma's $420 bln e-commerce empire show Chinese consumers are still spending amid slowing economic growth and a trade war. Tax cuts boosted earnings at rival JD.com. Lower levies will also help keep Alibaba's momentum going.

Iron ore feels the pinch of Beijing’s restraint

15 August 2019

Prices of the steel ingredient have cooled, as a supply squeeze fades but a hoped-for Chinese boost to demand remains elusive. Mainland growth is lacklustre, but construction has yet to rev up in response. Stimulus this time may not mean more bridges: bad news for Rio and peers.