Asia-Pacific

Guest view: Trump trade war threatens Korean peace

18 September 2018

Invoking national security to impose tariffs on car exporters such as Hyundai and Kia is myopic, argue the Korea Society’s president and a former U.S. ambassador to Seoul. As fresh talks with Pyongyang start, it’s worth remembering that politics cannot be divorced from economics.

Reinsurers’ lean years will trigger M&A wave

17 September 2018

Insurers are bracing for $20 billion of damage from Hurricane Florence, following record losses in 2017. Rising claims aren’t the sector’s only problem: hedge funds and other new investors are eroding margins too. The best way to survive may be swallowing a rival.

Indonesia’s Go-Jek can hitch ride on Meituan IPO

17 September 2018

The smartphone-based taxi service is raising about $2 bln. New cash will help Nadiem Makarim’s unicorn expand in the region and even into online shopping. A successful market debut by its Chinese backer Meituan Dianping also should fuel Go-Jek’s quest to be a multi-purpose app.

Trump’s China tariff weapons are getting blunter

17 September 2018

The U.S. administration is set to move forward with duties on another $200 bln of imports. Initially, it deftly avoided consumer goods. The expanded list, though, is more policy sledgehammer than scalpel. The pain will be felt by American households and Chinese exporters alike.

Chancellor: Lehman’s easy money extends to China

17 September 2018

The last in a series of essays marking the 10th anniversary of the crisis argues the ultralow rates that inflated assets and led to widespread capital misallocation, wealth inequality, financial instability and other risks in advanced economies are even more evident in China.

U.S. oil producers lose grip on global crown

14 September 2018

Fields in Texas were meant to help make the country a bigger exporter of black gold than Saudi next year. But pipeline construction is delayed longer just as American inventories are falling. U.S. drillers risk losing control of the market the longer logistics problems linger.

Chancellor: The carry trade that followed Lehman

14 September 2018

The subprime crisis was born from yield-chasing in the Greenspan easy-money era. Even lower interest rates since the Lehman bust revived the global carry trade. Another maelstrom will be hard to avoid.

Nio zooms from carmaker to tech star

14 September 2018

China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.

Southeast Asia’s politics cloud digital ambitions

14 September 2018

The Davos crowd descended on Hanoi this week and talked up ties that could make the 660-mln-person region the next China. Recent moves suggest tech barriers are rising, though. Europe's approach to data would be a better path to cut costs and risks while growing local champions.

China investors coming to terms with changed world

14 September 2018

The tone at this year’s CLSA powwow in Hong Kong was notably reserved as attendees wrestled with trade tensions, a cooling economy and the 20 pct fall in Shanghai stocks. General pessimism seems overdone, but the Asia-focused financial community senses a new normal taking hold.

Meituan Dianping feeds into Chinese tech fears

13 September 2018

The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.

Biotech starts Phase II Hong Kong market trial

13 September 2018

Diabetes drug developer Hua priced its shares at the bottom of the range, and halved the deal size. After peer Ascletis debuted last month to kick off an expected wave of IPOs from the sector, its value fell 50 pct. The success rate for this big experiment may be low for a while.

Chinese investment bank IPO flaunts tech conflicts

13 September 2018

Alibaba-affiliated Ant Financial has been lined up as a cornerstone investor in China Renaissance. Fan Bao’s boutique built its business advising JD and is among the last with loyalties to Jack Ma’s other big rival, Tencent. The knotty relationships potentially spell trouble.

Beijing’s confused tax message will strain growth

12 September 2018

A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.

Hadas: Japan can revel in fall from market glory

12 September 2018

The country was the king of stocks in 1989, with 32 of the world’s 50 largest listed companies. It hasn't fully recovered since the crash; only Toyota is left today. Japanese incomes, though, are growing as fast as in any developed economy. For that, market caps hardly matter.

Chinese $5 bln winter sports bid is hard to beat

11 September 2018

Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.

Japan’s Renesas speeds into autonomous M&A wreck

11 September 2018

The Tokyo-based chipmaker is buying U.S. peer Integrated Device Technology for $6.7 bln. A promised uplift in revenue from selling self-driving and connected-car technology sounds optimistic. Even if Renesas can achieve such synergies, the return on investment barely stacks up.

Didi falls way behind Uber on road to IPO

11 September 2018

Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.

Chinese Tesla’s $1.3 bln IPO revs up too fast

11 September 2018

Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.

Volvo’s IPO problems go beyond brewing trade war

10 September 2018

The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.