Hong Kong can stand up to Jack Ma 4 Nov 2016 Jack Ma has threatened to list the $60 bln Ant Financial elsewhere if Hong Kong won't innovate. That sounds like code for allowing something like the special sway he enjoys over Alibaba. Conceding to Ma won't fix the exchange's problems. Nor does Ant have someplace better to go.
Unblocking DoCoMo’s Tata exit is New Delhi’s job 4 Nov 2016 Turmoil at the Indian group was fueled by Ratan Tata's wish to pay the Japanese telco $1.2 bln it is owed for its stake in a JV. But retroactive regulations make honoring the payment illegal. A wily workaround would add to governance concerns. Policymakers need to fix the rules.
Scandal in Seoul masks bigger economic problems 3 Nov 2016 A furore over a quirky confidante is buffeting South Korean President Park Geun-hye. The regularity of such crises attests to poor governance. But that's only part of a larger challenge: avoiding Japan-style stagnation despite heavy debts, weak exports and an ageing population.
Malaysia’s pivot to China is payback plus 3 Nov 2016 The country is not as desperate as the Philippines for investment. But cozying up to Beijing is one way to express gratitude for China's continued support during the 1MDB scandal. Outside funding can also help Najib meet ambitious development goals - and win re-election.
Alibaba’s big data ambitions become an easier sell 2 Nov 2016 Cloud, media and things other than online retail now make up almost a fifth of the e-commerce giant's total revenue. Alibaba's shift from being a shopping platform to a data and content firm is still a work in progress, but boss Jack Ma's vision is looking increasingly plausible.
Hong Kong zombie stocks lurch toward IPO bankers 2 Nov 2016 China Forestry, listed in 2009 and suspended from trading two years later, has caught up with co-sponsors Standard Chartered and UBS. Both banks just revealed probes by the Hong Kong regulator. If that's the pace of justice, there are dozens more undead firms that could lash out.
KFC discovers weak appetite for Chinese consumers 2 Nov 2016 Yum Brands' spun-off local unit is a straightforward play on rising mainland consumption, offering Chinese growth with U.S. governance. A surprisingly modest valuation for the KFC operator suggests punishment for past mistakes - and caution about China's economic transformation.
Samsung’s biotech IPO is an $8 bln medical mystery 2 Nov 2016 The giant conglomerate's BioLogics unit is valuing itself generously. Demand for biological drugs is soaring, but the group's untested technology and model – touted as analogous to the contract manufacture of semiconductors – mean investors have to take its prospects on trust.
Valeant sale epitomizes new CEO’s dilemma 1 Nov 2016 Selling the Salix unit for $10 bln would be Joseph Papa's first big move since taking the reins. It would help pay down the drug giant's whopping debt. But it would also reduce desperately needed future cash flows. Papa needs to prove he can do more than preside over a fire sale.
StanChart’s returns goal hinges on cost rigour 1 Nov 2016 The UK emerging markets bank is making good progress on shedding its worst assets. But with third-quarter revenue only flat on the previous three months, it’s all the more important to hit cost targets. The challenge is doing so without losing more business.
Bank of Japan sits back for Clinton-Trump ride 1 Nov 2016 The central bank kept policy unchanged, even as it trimmed inflation forecasts. Adding extra stimulus just one meeting after introducing a new, yield-focused framework would look panicky. The BOJ also needs to keep something in reserve for upsets like a U.S. election shock.
Shenanigans at Tata taint India’s governance wins 1 Nov 2016 Corporate oversight is improving despite a messy spat at a conglomerate people thought represented the highest standards in the country. There is a long way to go, but investors are becoming more vocal, proxy firms are on the rise, and tycoons are on shorter leashes.
China debt-for-equity swap is half a decent idea 1 Nov 2016 The rescue plan for struggling state champions will buy them time to get their houses in order. But the deal lets lenders off the hook too easily, and hangs public money on it instead. Needed management reforms aren't mandated. Half a restructuring might turn out as bad as none.
Asia billionaire hunters go from predators to prey 31 Oct 2016 Fallout from Malaysia’s 1MDB fund scandal means banks must vet the region's wealthy more keenly. Tougher compliance needs come at an awkward time for Credit Suisse and Julius Baer, which have been hiring furiously. They also explain why subscale peers like ABN Amro may want out.
Container ship M&A crashes into sceptical market 31 Oct 2016 A three-way Japanese merger will create a new industry heavyweight. Yet investors are ignoring the promised $1 bln of annual savings. Even aggressive consolidation plans, it seems, are not enough to convince the market that battered shipping firms can get back on an even keel.
Breakdown: Gauging the risks of a China crisis 31 Oct 2016 Debt is rising rapidly, while the links between the official banking system and shadowy institutions are growing deeper and harder to fathom. The People’s Bank of China can probably ride to the rescue in the event of a shock. But a painful credit crunch will be harder to avoid.
UBS probe neatly captures Hong Kong market dilemma 31 Oct 2016 Regulators are looking into UBS's role in local IPOs. Whatever the outcome, it epitomises a clash between lofty governance goals and too many banks chasing sometimes questionable listing candidates. Long-term, global institutions would gain from taking the high road.
UBS ban in Hong Kong would compound terrible year 28 Oct 2016 The Swiss bank says a probe into some IPOs might put its corporate finance business in the Asian city on hiatus. UBS is struggling in Hong Kong, and has slid down the league tables. With third-quarter results showing global fees down more than rivals, this comes at a bad time.
Emperor Xi gets new clothes 28 Oct 2016 China's Communist Party named President Xi Jinping as its "core" leader - a title previously granted to icons like Mao and Deng. But Xi needs more than titles to implement tough reforms; he needs provincial allies and a viable vision for economic policy. He may have neither.
Alibaba label fails to stick on courier IPO debut 28 Oct 2016 Shares of China’s ZTO Express fell 15 pct on their debut in New York. Aggressive pricing is mostly to blame. Justifying an e-commerce style premium for a logistics firm was a tough sell to begin with. ZTO lacks the margins and dominance of Jack Ma's giant to be delivered as such.