Asia-Pacific

Essar deal dilemma sums up investing in India

10 October 2018

To buy the steelmaker out of bankruptcy, suitors first must pay off any debt of defaulters in their orbit, a court has ruled. For ArcelorMittal, that’s a $1 bln auction entry fee. India’s unpredictable business and legal environment makes such a decision especially difficult.

China worries give luxury investors excuse to sell

9 October 2018

Reports of stricter customs checks on Chinese tourists returning from the week-long national holiday triggered a selloff in luxury stocks. Government curbs are nothing new. But the sector’s high valuations make shareholders nervous about any sign of weaker demand from China.

Hong Kong’s political risk takes new form

9 October 2018

Leader Carrie Lam has made a good start tackling a housing crisis, and public sentiment is improving. With mass protests less likely, she may push for a controversial security law next. The business community appreciates stability, but eroding rule of law is a rising threat.

Beijing’s property crackdown looks half a bluff

9 October 2018

Policymakers are mulling an end to pre-sales that provide one third of developers’ funding, and pushing a nationwide housing tax. Both would sting, and investors look nervous. In the current climate, however, Beijing can’t afford to undermine its most important asset class.

Hadas: Nobel rewards pointless economic modelling

8 October 2018

Paul Romer won half the 2018 prize for recognising that education and governments help growth. William Nordhaus won the other half for condemning man-made climate change. Obvious? Maybe, but their work has complex equations. Unfortunately, these obscure more than they clarify.

China’s oil appetite won’t be enough to save Iran

8 October 2018

Beijing has resisted U.S. calls to cut crude imports once sanctions hit. But hopes that will be enough to offset a drop of as much as 1.6 mln barrels a day in Iranian exports look optimistic. Instead, it seems to be eyeing the old playbook of public bluster and quiet reductions.

Electric-car crash gives Evergrande a tech lesson

8 October 2018

Jia Yueting’s Tesla wannabe wants to scrap a $2 bln rescue agreed with a unit of the Chinese property giant. In June, the deal sent Evergrande Health stock soaring. Much of that gain is now lost. Investors are left with few reasons to trust future efforts to swerve into new lanes.

Beijing’s $175 bln boost raises stimulus conundrum

8 October 2018

The central bank has pumped yet more cash into the system. Despite the debt hangover from its last spree, China does need more investment in green technology, healthcare and education. Economically, it can also afford to spend wisely. Haste, though, will make more waste.

Sizing up Chinese tech political risk is perilous

5 October 2018

Shares in computer maker Lenovo plunged 22 pct Friday after a news report alleged Beijing agents inserted spy chips into other companies‘ motherboards. Peers fell too. Fear of China’s role in globally integrated I.T. supply chains is growing but the fallout is hard to price.

India holds back a currency bazooka

5 October 2018

The rupee is the worst performer in Asia this year, and doubts about the integrity of local shadow lenders are weighing it down further. A decision to keep rates steady acknowledges monetary policy won’t help much. Still, the central bank has a bigger weapon: diaspora bonds.

KKR takes sides in Southeast Asia’s tech battle

5 October 2018

The buyout firm is investing in a leading Filipino payments startup, alongside Tencent. The main rival is backed by Alibaba. Chinese giants and SoftBank have been burning cash to win users in a regional war of attrition. KKR may get caught in the crossfire.

Casino owner stacks deck in Philippines deal

5 October 2018

Lawrence Ho’s $11 bln gambling empire has offered to buy the rest of its Manila resort operator. The valuation methods are creative and Melco is trying to bully minority holders. Prospective investors in a planned New York IPO should take note of this treatment, however distant.

Samsung is closer to maxing out memory limits

5 October 2018

South Korea's tech titan expects quarterly operating profit to hit a record $15 bln, thanks to an upswing in chip demand. Memory prices will probably peak by year-end, however. Slower earnings growth, and the mounting legal woes of Samsung's leaders, will test investor patience.

U.S.-China trade war morphs into loyalty test

4 October 2018

Vice President Mike Pence wants Google to halt a search-app project in China. He also said Beijing tried to get an American company to denounce U.S. policies in exchange for a license. With tariffs already imposed on most products, warped patriotism provides a new battleground.

Cyber risks deserve top billing more often

4 October 2018

Global trade tensions have dominated recent economic news. Thursday’s revelations of possible Chinese computer-hardware meddling and Russian hacking of a world chemical-weapons body and sports-doping watchdogs give justified prominence to what may be a bigger threat to growth.

Infected supply chains challenge Big Tech defenses

4 October 2018

Apple and Amazon both denied a report they had installed servers harboring compromised chips. It speaks to a problem with global manufacturing. Ensuring the purity of goods made far from end users is difficult, especially across borders. The alternative is to make less profit.

Copper caught in crossfire of trade war

4 October 2018

Escalating tensions between Washington and Beijing have helped drag down the red metal by some 14 pct since June. The price is now well below levels required to inspire mining giants to invest in new supply, even though existing pits are ageing fast and green demand is on a tear.

Toyota and SoftBank press accelerate on AV jargon

4 October 2018

The duo are pairing up to build "Autono-MaaS" vehicles. The $200 bln carmaker gets introduced to Masayoshi Son’s stable of ride-hailing apps and his telco gets a big potential data customer. As wild bets proliferate, for now, this one helps Toyota catch up on the buzz.

China’s winter production cuts are down, not out

4 October 2018

Beijing has reduced pollution targets and delegated output decisions to local authorities. That looks like a retreat after last year’s heavy industry pain, which pushed up steel prices. The reality is more complex: officials still want to balance green imperatives with growth.

Fan Bingbing stars in a tax coming-of-age tale

4 October 2018

Chinese authorities have charged the popular actress a whopping $129 mln for concealing past dues. Her months-long disappearance has been a gripping saga, featuring claims of widespread fraud. But there is another plot line: Beijing’s awkward shift to a better-enforced tax code.