Asia-Pacific

Africa phone king is China’s tech star in waiting

15 April 2019

Little-known Transsion stands out among those waiting to IPO on Shanghai's new board. The Chinese handset maker has strong Belt and Road credentials as the top brand in the last frontier. With striking similarities to Xiaomi’s early years, there’s plenty to get excited about.

Axing China’s residency rules makes great stimulus

12 April 2019

Officials are relaxing some restrictions that inhibit internal migrants from relocating to big cities. Local governments worried about budgets stymied progress in the past. But rolling back obsolete regulations now could give a big boost to labour productivity and growth.

Morgan Stanley puts its seal on Jack Ma’s bazaar

12 April 2019

The Wall Street bank upped its stake in a mutual funds joint venture using Taobao, Alibaba’s online mall better known for makeup and clothes. E-commerce is playing a bigger role selling Chinese financial assets, but it makes some uncomfortable. This deal could reassure doubters.

Australia’s Crown could be Plan B for Japan losers

12 April 2019

James Packer’s $6 bln casino operator is effectively up for sale after Wynn submitted an offer and then ended talks. Crown would be a decent option for rivals that don’t win a licence in Osaka or Nagoya. The likes of Galaxy, Genting or Melco may yet train their sights Down Under.

Viewsroom: Wells Fargo searches for a leader

11 April 2019

The U.S. bank may be tempted to recruit from splashy peers like Goldman Sachs. But there are better reasons to poach from smaller firms. Meanwhile, the $170 bln Chinese liquor maker Kweichow Moutai is worth more than Diageo. Breakingviews columnists discuss the firewater’s draw.

Holding: Investors ignore law of “stuff happens”

11 April 2019

Using fiascos like oil-well blowouts and tainted burritos to claim stock fraud is increasingly common in the United States, but misguided. Companies have a duty to disclose significant risks, not warn of unlikely mishaps. Arguing otherwise enriches lawyers at investors’ expense.

India’s Jet Airways is too frail to fail

11 April 2019

Planes are grounded, but a bankruptcy of the country’s once-top private carrier is unthinkable, especially as the nation votes. Related job and bank losses would be politically toxic. Even a well-structured out-of-court deal could yet leave New Delhi with a second state airline.

Bond market addition will test China’s resolve

11 April 2019

Index inclusion is pulling global investors into the $13 trln market. Implausible ratings and thin liquidity are among fixable teething issues. The real question is if Beijing will meddle with bonds in bad times as it has in stocks. Initial signs are that it might resist.

Asian logistics IPO delivers at a discount

11 April 2019

Warburg Pincus plans a Hong Kong listing for $4 bln warehouse operator ESR. Fancy godowns are in short supply and e-commerce is booming. Yet public markets have not favoured regional rivals like GLP, taken private in 2017. Plain packaging will help the sale stack up.

Dan Loeb can help Sony handily sharpen its picture

10 April 2019

The activist’s return to the $60 bln PlayStation-maker provides a catalyst to break the company into a pure-play chips business and a more-focused entertainment group coveted by Apple, Amazon and Netflix. By exiting phones and selling insurance, it can also better compete.

Modi victory rally in Indian stocks is premature

10 April 2019

The Nifty 50 benchmark hit a record high on expectations the prime minister’s BJP party will get five more years. Valuations are already toppy amid an economic slowdown and weak investment. That can improve only if the winner repairs a huge trust deficit with the “bollygarchs.”

Boeing’s crisis flies beyond its 737 MAX failures

9 April 2019

Shareholders extended to $28 bln the overall hit to the aircraft maker’s value after it slashed production of the jet involved in two fatal crashes. The immediate impact on Boeing’s bottom line doesn’t justify that. But the reputational damage and risk to other projects do.

IMF plays Cassandra to the global economy

9 April 2019

The international lender, whose spring meeting is this week, cut its 2019 world growth forecast to 3.3 percent, with big downgrades for Germany and Italy. Its advice for countries on how to deal with hazards is sound but almost certain to be ignored.

China’s firewater punch diluted by a political put

9 April 2019

The $170 bln Kweichow Moutai is now worth about as much as Diageo, Pernod, Campari and Remy combined. Eye-popping earnings and foreign interest have fuelled a 50 pct stock price surge this year. But officials in Beijing keep its valuation from reaching maximum intensity.

Wynn splurges on a new beginning Down Under

9 April 2019

The casino giant wants to buy Australia’s Crown Resorts for $7 bln. Both companies are on the rebound after break-ups with billionaire bosses Steve Wynn and James Packer, and seeking fresh starts. But a hefty 26 pct premium bets too many chips on the return of big spenders.

Japan Post’s insurer returns with better packaging

9 April 2019

The postal operator is offloading $3.5 bln of Japan Post Insurance stock. It gives funds to a seller known for dubious M&A. Investors are offered a company at a cheaper valuation and in better health than when this fiddly privatisation process kicked off in 2015.

Loeb’s Sony sequel has makings of a blockbuster

8 April 2019

The activist behind Third Point is building a stake in Sony and getting the Japanese group to sell its movie studio could be part of the plan, Reuters reported. The media landscape has changed since Dan Loeb last tried to break Sony up. The idea looks ready for prime time.

UK web rules will speed internet’s balkanisation

8 April 2019

The government may fine groups like Facebook – and senior managers – who fail to police harmful content. This adds teeth to lame social-media regulation, but also creates a UK-specific standard. As other states beef up local regulations, web groups’ margins will feel the squeeze.

Korean Air CEO’s death sends grim chaebol message

8 April 2019

Cho Yang-ho has died at 70 just weeks after shareholders ousted him from the carrier’s board. The family-controlled holding company’s market value promptly soared by a fifth. Momentum for Korean corporate reform may be slowing, but this reaction suggests investors yearn for more.

Indonesia’s Jokowi can make a final term count

8 April 2019

The president is on track to win re-election. His first five years had successes in infrastructure, and reduced rural poverty. With a stronger hand, he can tackle pricklier issues hindering private investment and job creation. That will help a sluggish economy, and his legacy.