Hong Kong’s first female chief starts from behind 27 Mar 2017 Unloved new leader Carrie Lam faces a steep climb. Growth is slow; social divides are deep. Loosening the purse strings might win a few hearts. Her real test will be preserving the rule of law, but she's unlikely to stand up to the pro-Beijing faction she owes her job to.
Chinese broker offers investors a fair IPO trade 27 Mar 2017 Guotai Junan Securities is selling Hong Kong stock at a 25 pct markdown versus its mainland shares. That should be enough to entice buyers to the $2.1 bln offer. Investors would purchase one of China's strongest brokers, and at a bigger discount than the wider sector.
Air Products finds China M&A has unstable element 27 Mar 2017 The U.S. firm is giving up on a $1.5 bln play for Yingde Gases. A profit warning from the target provides cover for a retreat but Air Products underestimated a messy boardroom spat, and its months-long trauma highlights the difficulties faced by foreign suitors in China.
Guest view: The $1 trln trade deal anyone can love 24 Mar 2017 Even as NAFTA, TPP and other global accords come under siege, one WTO agreement was quietly just put into force. It'll help countries and companies big and small save money by getting goods across borders quicker, says Andrew Wilson, who runs a Chamber of Commerce affiliate.
Enough with Hong Kong market’s dark alleys 24 Mar 2017 Hong Kong is plagued by puzzling share gyrations. On Friday a $5 bln stock crashed 90 pct in minutes. HKEX boss Charles Li reportedly says his market is no casino, even if a few "gangsters" lurk in dark corners. Such complacency will do nothing to reassure investors.
Markets would miss Japan’s reformer-in-chief 24 Mar 2017 Investors are relaxed about a scandal involving Premier Shinzo Abe's wife. But the episode underscores a vulnerability. Abe's grand economic overhaul has broad support - but it is called "Abenomics" for a reason. A weaker leader would struggle to keep up the momentum.
China’s offshore bond revival could be brief 24 Mar 2017 Companies are rushing to sell dollar bonds overseas, aided by a new ability to issue onshore guarantees. Yield-hungry foreign investors are keen. But as liquidity tightens and rates rise, expect more defaults. Those pledges could prove unreliable if things go wrong.
Li Ka-shing sails through choppy global seas 23 Mar 2017 The Hong Kong tycoon’s CK Hutchison saw net profit rise 6 pct in the full year. That is impressive given stuttering growth at home and Brexit pains. Globally, the allure of conglomerates is fading. But the results vindicate the East-West strategy of Asia's "superman".
Life is looking up for China’s insurance giants 23 Mar 2017 Low interest rates and stricter capital rules made 2016 hard for mainland life insurers like Ping An and China Life. Now, the tide is turning as bond yields rise. For major players, a crackdown on high-return investment products should also help them regain market share.
Tencent’s new high score enables M&A attack mode 22 Mar 2017 The Chinese web giant’s revenue surged 44 pct to $6 bln in the fourth quarter, powered by games and advertising. Fast-growing payments and cloud computing units also contributed. To sustain growth and keep rivals at bay, Tencent's acquisition machine will have to go up a level.
Big brokerage IPO requires faith in Chinese reform 22 Mar 2017 Guotai Junan Securities is poised to raise $2 bln in Hong Kong. The sector is crowded, margins are thin, and regulators are fickle. But Guotai's scale and breadth position it well to benefit from more liberalisation and better enforcement.
SoftBank and Alibaba have Indian tangle to unpick 22 Mar 2017 A potential merger between Snapdeal and Paytm would take Masayoshi Son and Jack Ma off the warpath in India, where their flagship companies, SoftBank and Alibaba, have invested in the rival e-commerce unicorns. Such a truce would save investors money in the long run.
Spotless bid leaves private equity mess Down Under 21 Mar 2017 The cleaning and catering firm is fielding a surprise $1 bln takeover bid. Long-suffering owners will be tempted to cash out at a 59 pct premium. But IPO buyers won't be made whole. So this will remain a cautionary tale for Australian investors wary of PE-backed flotations.
Sceptics of Vodafone’s Indian merger have a point 21 Mar 2017 A big merger of the British telco's India unit with Idea Cellular should create $10 bln of synergies. Yet Idea investors are pricing in barely one third of the benefits. It underscores fear that the new entity will not be in a much better position to take on cut-throat rival Jio.
Vodafone’s Indian synergies come at a high price 20 Mar 2017 A $23 bln merger to create the nation's top mobile operator had to satisfy Vodafone as well as outside shareholders in partner Idea Cellular, while also giving a big voice to an Indian tycoon. The outcome is complex. Still, the savings are massive and the alternative is grim.
Colao trades one Vodafone risk for another 20 Mar 2017 The telco chief’s joint ventures in India and the Netherlands are a clever way to get scale and efficiency, and may help Vodafone’s valuation. The catch: investors depend on Vittorio Colao keeping his JV partners sweet. Too much success or too little could jeopardise the balance.
China-Hong Kong “bond connect” has dual benefits 20 Mar 2017 Beijing is firming up plans to let mainland and Hong Kong investors trade in each other's debt markets. The tie-up will make it easier to get Chinese bonds into world indexes. It should also boost trading and push up prices in the territory's fixed income market.
Stars align for Vietnam’s privatisation push 20 Mar 2017 Hanoi's desire to tame the budget deficit and boost efficiency bodes well for the sale of state assets, including big brewers. A buoyant stock market helps. But in the rush to secure fat listing valuations, Vietnam risks driving away the foreign buyers it needs.
Corona Capital, March 18: Elizabeth Warren 18 Mar 2020 Breakingviews has launched a daily column covering pandemic-related insights that you might have missed. Throughout the day, we’ll bring you shorter-than-usual views with the same financial savvy on companies, economies and capital markets during this important unfolding story.
Radioactive economics cloud Westinghouse’s fate 17 Mar 2017 The storied firm pioneered the use of alternating current in the 19th century and nuclear power in the 20th. Now massive losses have forced Toshiba to put it up for sale. Even if it can find a buyer, nuclear's dire economics and troubled politics make a third century doubtful.