Asia-Pacific

Soccer world will miss Chinese sugar daddies

20 July 2017

State media has questioned Suning’s purchase of Inter Milan, part of a $3 billion mainland soccer splurge, amid an offshore M&A clampdown. The acrobatic financing of AC Milan may attract Beijing’s attention next. Benching Chinese buyers could hurt cash-strapped European clubs.

Alibaba rewrites its e-commerce playbook

20 July 2017

China's online giant is trumpeting "new retail": a push into bricks-and-mortar shopping. That could help sustain high growth. But abandoning the asset-light model which has been Alibaba's unique selling point will weigh on profits.

Wanda and Sunac go back to M&A 101

20 July 2017

The Chinese developers have been forced to rejig their $9 bln property deal. The result is a less fiddly structure with a third party. That might get the sale through, but Wanda's long list of problems make it unclear if it is any closer to its bigger goal of listing onshore.

Hadas: No auction often beats a bad auction

19 July 2017

Governments and Google are fans of auction theory, which teaches how to extract the highest bids for assets like radio spectrum or online ads. But the branch of economics cannot say if the price is fair. Auctions too often confuse consumers and tarnish the image of capitalism.

Einhorn’s bold Toshiba play has just enough logic

19 July 2017

The Greenlight boss unexpectedly took a stake in the beleaguered Japanese group, betting it's hit bottom. That's gutsy, but not necessarily reckless: Toshiba is closer to selling its chip business, which could give it much-needed financial relief and unlock value in other units.

Malaysia power IPO will test 1MDB stain

19 July 2017

China Nuclear wants to float assets acquired for $2.3 bln from disgraced 1MDB. A Kuala Lumpur listing may smooth local misgivings over Chinese ownership. But it is unclear if investors are ready to look beyond the fund scandal. Recent listings also suggest it will be a hard sell.

Australian banks can digest capital hike move

19 July 2017

Regulators in Oz have aggressively hiked capital requirements for big banks. The caution is warranted given the finance sector's concentration and record household debt. A grace period will soften the blow for lenders, but outsized returns could be a thing of the past.

German climate change policy takes Trumpian turn

18 July 2017

Angela Merkel has castigated the U.S. President for pulling out of the Paris accord. Yet two German states are putting mining jobs ahead of cutting carbon emissions. If they don’t reconsider, the Chancellor’s green credentials – and the global agreement – will suffer a blow.

Xi pours cold water on China’s “creativity” rally

18 July 2017

Investors, hearing President Xi call for a clampdown on financial risk, are speeding their exit from small caps and tech stocks into "old economy" blue chips. The bubble in the valuations for early-stage startups could be next to pop. That would not be a bad thing.

Taiwan deals foreign private equity another blow

18 July 2017

Carlyle-appointed directors are in legal trouble in Taiwan, Bloomberg reports. Whatever the merits, the market has been hard on buyout firms, many of them stuck mopping up decade-old messes. If Taipei wants economic revival, it needs to send warmer signals to foreign investors.

Wanda’s M&A punishment is too much, too late

17 July 2017

Chinese banks have been ordered to halt lending to entertainment and property giant Dalian Wanda, Reuters reported, in what looks like retroactive punishment for big foreign investments. Such blurry lines around what is and isn't allowed do Chinese outbound investment no good.

China’s revived economy rests on borrowed pillow

17 July 2017

Gross domestic product grew 6.9 pct in the second quarter, capping a solid first half. Robust manufacturing, foreign demand, strong commodities and a softer dollar give the government time to attack bad debt and get housing prices under control. But Beijing needs to hurry.

Chinese green car boom fuels lithium rush

17 July 2017

Beijing's policy push toward electric vehicles is driving investor interest in lithium and lithium miners. The price of lithium carbonate has almost trebled since 2015, and acquisitions are underway. Demand for the suddenly strategic commodity could trigger a tussle over supply.

GLP logistics buyout just about gets from A to B

14 July 2017

The Singaporean group accepted a S$16 bln offer from its own CEO and Chinese buyout firms. The decision seems more about deliverability than price, which is a worry when buyers are also insiders. Still, the 25 pct premium adds enough financial bubble-wrap to ensure safe passage.

China finance powwow marks inflection point for Xi

14 July 2017

Officials gather today in Beijing for a major policy conclave. Challenges include high debt and poor agency coordination. President Xi Jinping is increasingly concerned about financial risk. The meeting offers a chance for the leader to refurbish his reform credentials.

Hong Kong’s regulator power grab is overdue

14 July 2017

The SFC will use little known rules to stop questionable listings after a spate of scandals. The bold move significantly undermines the stock exchange's role in approving IPOs and will complicate oversight in the short-term. Ultimately, the city needs a single strong regulator.

Sacred cows feed India’s flying chicken shares

14 July 2017

Hindu hardliners' campaign to protect cows helped shares of poultry specialist Venky's up around 440 pct this year without making the midcap pricey. Even with a reprieve on a cattle slaughter ban, chicken will remain in demand as the top protein source for a rising middle class.

Viewsroom: Elon Musk’s Down-Under wager

13 July 2017

Tesla’s CEO is putting the firm’s reputation, and $50 mln, on the line in a deal to quickly provide energy storage to South Australia. Over in Texas, a battle is brewing between investment icons Warren Buffett and Paul Singer over a long-suffering and oft-wooed energy company.

Speed bump warranted in China-Chicago bourse trade

13 July 2017

Some U.S. lawmakers want the SEC to block the sale of the Midwest exchange to Chinese investors. Their concerns are largely fear mongering. But as self-regulators, all such venues will soon get access to customer data as part of a new audit trail. That justifies closer review.

Aramco exemption bends London IPO rules to limit

13 July 2017

The UK regulator wants to change its listing regime to lure state-controlled groups like the Saudi oil giant. The watchdog has to keep markets clean while protecting London’s competitiveness. But making policy for a single company - especially one as big as Aramco - is a mistake.