Asia-Pacific

Coal clearout puts Rio on path to greener deals

28 March 2018

The Anglo-Australian miner has raised $4.2 bln this month getting out of coal. That implies more buybacks and fewer environmental concerns, helping lift Rio Tinto’s modest valuation. It can also focus on future growth, including investments in battery ingredients like lithium.

Chinese banks healthy enough for stronger medicine

28 March 2018

Stable real estate and solid corporate profits helped boost annual earnings at AgBank, CCB, ICBC and others. Manic asset growth slowed and risk buffers thickened. The way is clear for reformers to tolerate more defaults and address flaws in China’s debt-for-equity swap programme.

Carlyle’s $12.6 bln Akzo deal has good chemistry

27 March 2018

The U.S. private equity group is buying a speciality chemical unit that the Dutch company put on the block after a failed PPG bid. Carlyle knows the industry and has slashed costs at Axalta. While there may be less scope for huge cuts this time, decent returns are still on offer.

Cancelled Swiss IPO is a bearable blow for HNA

27 March 2018

The embattled Chinese conglomerate wanted to raise up to $1.4 billion from Gategroup, but pulled the deal over pricing. Listing is harder than selling property or existing shares, but by holding firm on price, HNA avoids looking desperate. That could help with other disposals.

Mukesh Ambani’s music deal could get a remix

27 March 2018

India's richest man is merging two music-streaming services into a $1 bln group. That will help attract users to the telecoms arm of his Reliance Industries. With the conglomerate poised to start throwing off cash again, Ambani could take his content ambitions to another level.

China’s Gen Z app has a lot of growing up to do

27 March 2018

Bilibili, a popular video site for anime-obsessed teens, wants to list at a $3 bln-plus valuation. That’s hefty considering a single mobile game accounts for 60 pct of sales. Losses may be narrowing, but Bilibili's amateur business plan doesn't warrant a premium price tag.

Japan steels itself for worse on trade

26 March 2018

U.S. metals tariffs won’t hurt Tokyo much. But trade tensions can cause indirect harm too, since Japan is a big supplier to China, and market jitters unhelpfully boost the yen. President Trump’s scorn for a close ally hints at pressure to come over cars, agriculture and currency.

Uber races towards IPO with Southeast Asian deal

26 March 2018

The U.S. ride-hailing giant is exiting another cut-throat market. It will hand its regional business to Grab, a $6 bln local rival, and take 27.5 pct of the enlarged group. This is a sensible step to prepare Uber for public life – provided Grab can hold onto its leading position.

China sows confusion with two central bank bosses

26 March 2018

The head of the banking and insurance regulator may also become party chief at the People’s Bank of China. Guo Shuqing would outrank new Governor Yi Gang, making for an awkward combination. Guo might be the more effective reformer, but his brash style could unsettle markets.

China bond-index debut a timely counter to tariffs

23 March 2018

Bloomberg will include the country’s government and policy-bank debt in a key global index. That should attract foreign investors and encourage more liberalization. It’s also a reminder amid rising trade tensions that flows of money far outweigh those of goods and services.

Review: Pluralist economics is a work in progress

23 March 2018

“Econocracy”, a book by rebel Manchester undergraduates, gives mainstream economics a well-deserved thrashing. They could have been even tougher. But where are the alternatives? Too much of the companion volume, “Rethinking Economics”, seems underdeveloped, not to say flaky.

Facebook crisis could bust digital-ad duopoly

23 March 2018

Advertisers may pull money from the social network, which together with Google sucked up 84 pct of digital ad spending in 2017. That cash is likely to stay with data-rich platforms rather than older media. Amazon could benefit if CEO Jeff Bezos can avoid raising antitrust fears.

Steve Wynn’s casinos make best of bad hand

23 March 2018

After resigning as CEO of Wynn Resorts amid scandal, he has found buyers for his entire stake. New boss Matthew Maddox is playing terrible cards fast and well. He settled a big lawsuit and just brought in Macau rival Galaxy as a backer, which could lead to fresh opportunities.

Tiny loans price big future for newbie India bank

23 March 2018

An IPO will give Bandhan a market cap of $7 bln, or almost five times book value. That sounds punchy for a microfinance lender that only became a bank three years ago. But those rich figures can be justified by low costs and pricey loans, which together produce fat returns.

China trade spat is bigger than Trump

22 March 2018

The U.S. president ordered sweeping duties and investment restrictions. A trade swipe against the PRC has been brewing for years. The issues at stake – state capitalism, intellectual-property theft and national champions – are deep-seated, and tariffs may prove largely symbolic.

Naspers selldown prolongs Tencent dependence

22 March 2018

The South African group is offloading shares worth up to $11 bln in the Chinese giant. But it’s keeping the remaining 31 pct for at least three years, and will invest the proceeds. Shareholders have little reason to give it any more credit for its highly profitable Tencent bet.

China’s 5G ambition is China Mobile’s punishment

22 March 2018

The country's biggest wireless group grew earnings 5 pct in 2017. This year will be tougher. Beijing wants the carrier to deliver a world-beating, ultra-fast network in a jiffy, and sell access cheaply. That will be tough on shareholders, but the state-owned group has no choice.

Chinese drone giant DJI charts a risky flight path

22 March 2018

The world’s top maker of unmanned aircraft is raising money at a $15 bln valuation, Reuters says. Sales are soaring and DJI has a commanding market lead. Given drones’ data-gathering ability and military potential, though, DJI could easily hit turbulence in major foreign markets.

Viewsroom: China’s new central banker

22 March 2018

Yi Gang has experience working in America. Once considered a liability, that background now may be one of his greatest assets. And the mainland is courting companies to list shares locally, while China’s version of Hulu plans an IPO - in New York.

How Washington could really fix trade with China

22 March 2018

President Trump is rolling out tariffs and wants a $100 bln cut to the deficit. Yet Beijing’s import-substitution plans, forced tech transfers and IP policy are the real problems. By ditching them China would justify a truce, and reinforce its claim to free-trade leadership.