Asia-Pacific

Ant’s shadow obscures glowing Lufax results

27 April 2021

The Chinese fintech firm quietly raised $2 bln in New York the week before its rival’s $35 bln IPO imploded last year. On Monday it reported first quarter earnings up 19% and doubled some forecasts. Share performance remains unfairly darkened by Ant’s regulatory woes.

Capital Calls: Betway, U.S. banks, Vaccine feud

26 April 2021

Concise views on global finance: Another online betting group goes public by merging with a special-purpose acquisition company; some financial firms are racing to capture nearly-free funding from American depositors; Europe faces a long and costly fight for AstraZeneca vaccines.

Blackstone gamely reboots Indian IT deal

26 April 2021

The investor is selling control of Mphasis within its own funds. Sovereign money will join, validating a $2.8 bln commitment that includes a public offer. With U.S. cloud migration gaining pace even as the virus spikes in the company’s home, it may be a crafty self-passed parcel.

Beleaguered Aussie duo careen into dizzying spin

26 April 2021

Carving out businesses is meant to unearth buried value for shareholders. Wealth manager AMP and energy giant AGL, though, are doing so as a last resort of sorts after other strategies failed, and with CEO upheaval to boot. Starting from such a weak position does not bode well.

China puts $200bln twist on Groupon for the masses

26 April 2021

Giants like Meituan are putting a creative spin on group buying, designating part-time neighbourhood representatives to distribute deals to their communities. Shoppers get cheap groceries, online outfits cut costs and the reps make money. Alas, price wars risk ruining the model.

Capital Calls: The $2 trln toybox

23 April 2021

Concise views on global finance: Mattel’s 47% sales growth tees up a spree of discretionary spending, as American consumers raid pandemic savings.

Panasonic’s $7 bln deal will leave investors blue

23 April 2021

The Japanese group is paying a pricey 33 times forecast EBITDA for Blue Yonder, its biggest acquisition in a decade. The target's expertise in supply-chain software and steady stream of subscription sales are appealing, but the implied return on investment is a huge downer.

Corporate “flywheel effect” is mostly bad spin

23 April 2021

Management guru Jim Collins coined the term 20 years ago to describe how great companies gradually improve. Now groups from fintech Allfunds to online retailer Wish claim it works for them. Given the later troubles faced by Collins’ case studies, new fans might consider a U-turn.

India’s pandemic hell could be purgatory

23 April 2021

There is hope rising immunity and the country’s massive vaccine industry will bring a rapid end to the misery brought about by a terrifying second wave of contagion. New Delhi has little room to act if the economy follows hospitals into a state of collapse. Cracks are visible.

U.S. ruins Japan Inc’s flirt with China

23 April 2021

A 3.7% stake sale by e-commerce group Rakuten to Shenzhen-based Tencent is under joint scrutiny by Tokyo and Washington. As Japan’s stance against China hardens under American pressure, a nascent rising trend in Chinese investment in the country may be cut short.

Magic mushroom model is more service than pharma

22 April 2021

The fungi’s ingredient psilocybin has effectively treated depression and other ills. Startups like Field Trip jumped to develop patentable versions of the naturally occurring drug. Cutting trips from four-plus hours helps, but pricey therapist-shamans remain the key cost driver.

Capital Calls: Chubb and Hartford, Swimming pools

22 April 2021

Concise views on global finance: The company led by Evan Greenberg twice raised its bid for its Connecticut rival, but so far to no avail; a blowout quarter for private-pool maker Pool Corp points to buoyant wealth and spending trends, but only for some.

Viewsroom: The Super League’s short, unhappy life

22 April 2021

The richest European soccer clubs, including Juventus and Real Madrid, swiftly aborted plans to create a breakaway competition. But as Liam Proud and Peter Thal Larsen explain, the financial appeal of a U.S.-style sporting cartel remains irresistible. Plus, Huarong’s woes.

Anta bets Chinese shopping nationalism won’t last

22 April 2021

The controlling shareholder of the sportswear company will pocket $1.5 bln from a 30% share rally after consumers threatened boycotts of Western brands critical of Beijing’s Xinjiang policy. It’s smart timing by struggling Anta; patriotic outrage is a fickle sales driver.

China medical IPO comes with health warnings

22 April 2021

Tencent-backed We Doctor boasts the country's first e-hospital offering online consultations and more. A mooted $12 bln valuation looks punchy next to rivals focused on lucrative drug sales. We Doctor's mounting losses and untested business model may give investors heartburn.

Guest view: Getting finance in shape for COP26

21 April 2021

The $100 trillion required to decarbonise the world economy by 2050 won’t materialise without the financial sector. But banks, insurers and asset managers need a single set of standards to assess their net-zero ambitions. That’s now happening, write Mark Carney and Nigel Topping.

Capital Calls: U.S. antitrust, Dyal-Owl Rock

21 April 2021

Concise views on global finance: Would-be U.S. trustbuster nominee Lina Khan suggests it’s not just tech companies to blame for Big Tech’s dominance; two U.S. investment firms’ planned merger and sale to a blank-check company has cleared a legal hurdle.

New Zealand blends specially bright shade of green

21 April 2021

The United States and China are vowing to work together on decarbonisation. JPMorgan and Citi raised their sustainable-finance goals. Investors are pushing harder, too. A Kiwi plan to force banks and money managers to come clean about climate risks neatly ties it all together.

Huarong foreign bondholders get sweet nothings

21 April 2021

The market is stabilising around the troubled bad debt manager holding $21 bln in dollar bonds. Its key offshore unit says it has returned to profit; Beijing notes Huarong has adequate liquidity. It’s better than silence but thin gruel for a relief rally.

Capital Calls: Bank of America, WeWork, Kering

20 April 2021

Concise views on global finance: The bank’s shareholders voted against a deeper dive into its impact on racial inequality; the office landlord is taking bitcoin as payment, for now; the Gucci owner needs to run faster to catch arch-rival LVMH.