Wal-Mart learns limits of divide and rule in China 11 Jul 2016 The U.S. giant's Chinese employees used social media to co-ordinate nationwide strikes. That will make it harder to cut cosy deals with local governments. Telecom giant China Unicom has also faced cross-country protests. But foreign firms tend to enjoy less official protection.
China’s factories gain from march of the sew-bots 11 Jul 2016 Millions of jobs across Southeast Asia are at risk from wider use of automation, a new report has warned. The surprising beneficiary might be China. Robots could add to its shrinking workforce, while its network of suppliers and ports are a strength the rest of Asia can’t match.
Temasek’s goals are bold for a low-yield world 8 Jul 2016 The $180 bln Singaporean investor just suffered its first down year since the financial crisis. Still, it beat benchmarks, and some key holdings have since rebounded. However, Temasek is still targeting a feisty 8 pct annual return. That could skew future investment decisions.
Bank bill mess is symptom of China cash crunch 8 Jul 2016 A Bank of Ningbo employee mishandled short-term bills worth 3.2 bln yuan ($479 mln). It's the latest scandal to hit China's weakly regulated commercial paper market. Yet as long as companies keep delaying payments to suppliers, demand for cash substitutes will remain strong.
Vanke battle is test of China’s shareholder rules 7 Jul 2016 The country's top property developer is fighting with major holder Baoneng. The spat has produced a $7 bln deal, a motion to dismiss the board, and suggestions big stakeholders are colluding. The outcome will show whether China's public markets are up to protecting investors.
Yuan’s stealthy slide makes for cooler summer 7 Jul 2016 China's currency is falling against the U.S. dollar and other currencies again. Unlike last year, though, local and global investors seem less worried. Chinese companies have paid off a lot of foreign debt. More transparent management by the central bank has also calmed nerves.
Chinese investment banks play in own M&A league 6 Jul 2016 The likes of CICC and CITIC stormed up the advisory rankings in the first half, closing in on global rivals. A $120 bln-plus blitz of cross-border Chinese deals largely explains their rise. It's a market that is mostly off-limits to Western banks. Fees are probably skinnier too.
CR Beer share sale helps Snow go down more easily 6 Jul 2016 The Hong Kong-listed brewer got a great price from AB InBev for the remaining 49 pct of China's top beer brand. Now it is raising $1.2 bln in a rights issue. With the purchase from ABI on track to close soon, and CR Beer's shares performing well, raising equity makes sense.
China’s new GDP formula encourages creative waste 6 Jul 2016 Including R&D spending in output calculations makes the economy look bigger. But worries about creative accounting miss the point. The real concern is that the move gives local officials an extra incentive to finance empty incubators, vapid patent mills and me-too tech startups.
China’s giant savings bank not as safe as it seems 6 Jul 2016 One in three Chinese citizens has money in Postal Savings Bank of China. It has fewer loans to bloated state firms and fewer bad debts than rivals. But big holdings of bonds issued by other arms of the Chinese state – and increased dabbling in shadow finance – still pose risks.
China’s M&A spree will face growing backlash 5 Jul 2016 German politicians are the latest to get jittery about a Chinese takeover bid. In the absence of global foreign investment rules, countries can block deals they don't like. China's reluctance to open its markets means surging cross-border acquisitions will spark more resistance.
Japan’s carmakers are passengers in wild FX ride 5 Jul 2016 Shares in Toyota, Nissan, Honda and others have crashed since Britain voted to quit the EU. All will be hit by an economic slowdown, and some would suffer from new tariffs on UK-made vehicles. But the selloff mostly reflects how exposed the firms are to currency-market swings.
China State Grid seeks power and profit overseas 4 Jul 2016 Buying 23 pct of Brazil's CPFL for $1.8 bln is the latest in a string of deals by the government-owned electricity distribution giant. It's partly an effort to push high-voltage technology. But with power prices held low at home, foreign investments also promise better returns.
HK has to pore over cement deal that came unstuck 4 Jul 2016 West China Cement shares crashed just before a takeover by rival Anhui Conch fell over. That suggests the news leaked somehow. Hong Kong regulators have already clamped down on insider trading, long seen as a big problem in the territory. A fast, thorough investigation is needed.
Australian economy can cope with political turmoil 4 Jul 2016 National elections have failed to give Prime Minister Malcolm Turnbull the decisive support he sought. Fragmented politics make reining in the budget deficit and broadening the tax base even harder. Still, solid economic growth means Australia can weather a bit of uncertainty.
Britain joins China in investment limbo 1 Jul 2016 Heathrow Airport's expansion is on hold. Now the UK has voted to leave the EU, controversial or financially demanding decisions may be left dangling. There's a precedent in China, where a graft purge led to widespread dawdling. British inertia could be much tougher on growth.
Japan’s chat app IPO is more Twitter than WeChat 1 Jul 2016 Messaging platform Line is going public with a valuation of up to $6.6 bln. Like Chinese rival WeChat, it has lured millions with games and virtual stickers. Yet its user base has stopped growing. Like Twitter, it must now try to squeeze more revenue out of those people.
Asian amnesties point to wealth of tax worries 1 Jul 2016 Authorities in India and Indonesia are doubling down on efforts to persuade citizens to declare their assets. The schemes in both countries are very different but could provide a welcome boost to tax revenues. New global rules could also help governments reap a big windfall.
BBMG deal firms up China’s sloppy cement industry 30 Jun 2016 The Beijing-based building materials group is injecting $2 bln of assets into Jidong Cement and taking control of its weaker rival's parent company. This and other big deals are helping rationalise China's glutted industry – even if M&A is often neither quick nor straightforward.
Abu Dhabi fund merger papers over Malaysia problem 29 Jun 2016 State investor IPIC has sparked multiple controversies and is now locked in a dispute with Malaysia's 1MDB. Combining it with local peer Mubadala should lead to better governance. Creating a new $135 bln vehicle also helps the emirate scrub out the stain of past missteps.