Asia-Pacific

Thrice-ditched Aussie telco has its work cut out

5 June 2019

Swedish fund EQT has dropped its toppy $2.3 bln bid for Vocus after due diligence. Shares dropped 20%. It’s the third financial buyer to walk since 2017. It casts doubt on the target’s efforts to integrate deals. New boss Kevin Russell has to find a way to dial up confidence.

Chinese vocational school IPO taps job anxiety

5 June 2019

China East Education has raised $625 mln in Hong Kong, valuing it at $3.1 bln. Beijing’s push to retrain millions of laid-off workers could boost its bottom line, but the market is fragmented, and earnings are volatile. This price implies very optimistic growth expectations.

China’s censors expose a truth about corporate JVs

4 June 2019

Reuters’ 30th anniversary coverage of Tiananmen was blocked by Blackstone-backed partner Refinitiv in China amid pressure from Beijing. The $20 bln data provider’s priorities deviate from those of the news publisher. It’s a prime example of how partnerships can be strained.

Aussie rate cut demands fiscal backup

4 June 2019

The RBA trimmed its benchmark interest rate to a record low 1.25% from 1.5%. Another chop is expected, which would bring closer the limits of conventional monetary policy. It puts the onus on Scott Morrison’s government to loosen purse strings and avoid mistakes made elsewhere.

South Korean infighting hobbles recovery plan

4 June 2019

Revised GDP showed the export-dependent economy shrank more than expected amid a U.S.-China trade spat. The central bank, stuck between anaemic inflation and a plummeting currency, has dithered. A rate cut might help, but political squabbles are short-changing fiscal stimulus.

Beijing tries the patience of Tiananmen’s children

4 June 2019

After crushing student protests in 1989, the government promised prosperity in exchange for compliance. Wages have soared, but so has inequality. Now President Xi is calling on youth to shoulder bad debts and trade war costs. Their disaffection is as big a risk as revolution.

Pricey Japan is best game in town for U.S. casinos

4 June 2019

Operators like Las Vegas Sands and MGM have vowed to spend $10 bln each developing new resorts, and may pledge more. A tough rule book makes the country particularly attractive to Americans, given compliance risks in other emerging markets. But a bidding war will reduce returns.

Southeast Asia offers some emerging market shelter

3 June 2019

Trade friction and a stronger dollar have dented asset prices in Indonesia and its neighbours. But election distractions are over and central banks have scope to help growth. Most helpfully, investors trust policymakers here more than peers in countries like Turkey or Argentina.

Guest view: Innovation transforms central banking

3 June 2019

Technology is upending payments and regulation, writes the Bank for International Settlements’ Agustin Carstens. As policymakers rise to the challenge, and even study the possibility of issuing digital currencies themselves, monetary and financial stability is their pole star.

Blackstone deal stacks GLP closer to China IPO

3 June 2019

The buyout firm will purchase $18.7 bln of U.S. properties from funds managed by the warehouse giant, tapping booming e-commerce demand. GLP can now concentrate on a bigger package, its portfolio in the People's Republic. A rival’s imminent listing could also help speed up delivery.

Beijing’s threats may soon come in bigger packages

3 June 2019

Officials are drafting a blacklist for badly behaved foreign companies. It is the latest warning signal, as China tries to respond to U.S. blows without escalating an increasingly bitter trade dispute. But that’s getting harder, and a new FedEx probe raises the stakes.

India can’t afford to copy China on growth stats

31 May 2019

New Delhi's frequent revisions of GDP data are less egregious than Beijing’s habit of forcing officials to hit targets, and experts have other ways to measure economic health. But fears of manipulation are embarrassing, and potentially more damaging for capital-scarce India.

Hedge funds see honey in Japan’s value traps

31 May 2019

The Land of the Rising Sun dominated Hong Kong’s Sohn gathering. Many see signs of unjustified panic in slumping equities this year, creating opportunities to buy low. But even optimists highlight the cash hoarding and slack governance that have long scared investors away.

Online tutor puts U.S. love of China IPOs to test

31 May 2019

Chinese companies have pitched themselves in New York as a bet on rising consumption, insulated from trade ructions. But poor performances of Luckin Coffee and others have tempered enthusiasm. That means even profitable ones like education upstart GSX may fail to make the grade.

Viewsroom: A new game of carmaker matchmaker

30 May 2019

Fiat Chrysler spurned Peugeot by offering to merge with France’s Renault, which is itself joined to Nissan. How will the pairings play out, and what does it mean for the automotive sector? Plus: Why fossil-fuel giants like BP are painting themselves a pale shade of green.

Macau mogul picks up Crown jewels for a song

30 May 2019

Lawrence Ho is buying 20% of his former partner’s Australian casino operator for $1.2 bln, less than rival Wynn earlier indicated it might pay. A bet Down Under could play well for the New York-listed group but James Packer’s partial exit is a raw deal for other shareholders.

Huawei’s EU friends will stay on the line for now

30 May 2019

BT and Vodafone paused sales of some of the Chinese group’s phones after America put it on a blacklist. Yet Huawei equipment still pervades European telecom networks. Ripping it out now would be costly and disruptive. Better to wait and see whether the U.S. pressure persists.

Goldman abandons Trump’s White House, for India

30 May 2019

The Wall Street bank just cut the ribbon at a new $250 mln Bengaluru office with room to grow staff by about 50%, to 7,300. After supplying the U.S. president with a coterie of close advisers, Goldman is clearly rejecting his anti-global positions by eyeing overseas expansion.

China booze giant raises empty glass to investors

30 May 2019

Thirsty investors signed up en masse for Kweichow Moutai’s yearly gathering. The $166 bln distiller addressed concerns about why its parent created a unit that could funnel business away from the listed outfit. The candidness is welcome but it won’t avert a governance hangover.

Nio forces investors to test-drive new model

30 May 2019

When the $4 bln electric-car maker listed last year, it was branded as China’s Tesla. But the loss-making startup’s strategy has shifted sharply. Nio now plans cheaper models and may build a factory with state backing. Shareholders bought one company, and ended up with another.