China

Citic and CLSA will survive boss departure

20 March 2019

The Hong Kong brokerage’s CEO is quitting, shortly after its chairman left. The moves have led to whispers of a culture clash with China’s Citic Securities, which bought CLSA for $1.3 bln in 2013. Bank mergers are always a challenge. Still, it’s too early to write this one off.

Rivals can fly around Google’s game cloud

20 March 2019

The U.S. web giant is stepping into gaming with a browser-based service. Console makers Nintendo and Sony lost a combined $3 bln of value on the news. Google's scale intimidates, but victory depends on exclusive titles that can out-drive Super Mario, not just lots of servers.

Gadgets light up Xiaomi’s future

20 March 2019

The Chinese giant defied a global phone slump with a 53 pct jump in 2018 sales to $26 bln, even after a sluggish fourth quarter. Bets on cheap-and-cheerful markets are paying off, as is a shift to pricier devices. Despite boss Lei Jun's internet ambitions, hardware still matters.

Dianrong boss daringly says what many are thinking

19 March 2019

Co-founder Guo Yuhang blames the government for slow growth at his peer-to-peer lender. Such regulatory grievances are common from bankers elsewhere, but rare in China. The complaints will strike a chord in the industry even if they don’t alter the course of mercurial rules.

Blackstone belatedly buys into Abenomics

19 March 2019

The U.S. private equity firm is making its Japan LBO debut by acquiring drugmaker Ayumi for $1 bln. It is a retread already owned by two local buyout shops. The government’s newly introduced price controls could squeeze smaller peers, however, and give a rollup strategy a shot.

Chinese car lender’s IPO drives a hard bargain

19 March 2019

Dongzheng Automotive Finance could be worth $1.4 bln after going public, valuing the company at a big premium to rivals. Its fast growth, high returns and luxury-vehicle focus may justify that. But it’s shifting into new markets and has yet to face the rough ride of a downturn.

Recruitment is weak link in U.S.-China tech war

18 March 2019

Trump officials are building IP theft cases and mulling AI export bans. But the government can’t stop Chinese firms from opening offices stateside and hiring from rivals: Tesla wannabe Nio has 600 workers in San Jose. Talent is fair game and U.S. firms must fend for themselves.

Ping An offers up a glimpse of China’s bank reboot

18 March 2019

The insurance giant is preparing a $1 bln IPO for OneConnect, a startup offering tech support for mainland lenders, including fancy credit checks. Beijing wants banks to lend more to smaller, private firms, but few can handle the risk. It’s a dilemma that leaves a lucrative gap.

Italian Silk Road gambit is a double-edged sword

15 March 2019

Marco Polo’s daring travels turned Venice into a wealthy gateway to China; 750 years on, Rome wants to rebuild that special bond through infrastructure deals. Improving ties with a key trading partner makes sense. The risk of leaning East is that Italy loses clout in the West.

China’s hasty investment law garbles the message

15 March 2019

Lawmakers have passed new rules affecting foreign firms from BASF to BMW, fast-tracking reforms to ease U.S. trade tensions. The result, though, seems awkwardly vague, drawn up with little outside input. That suggests the aim is a diplomatic win: real change will take longer.

Crackdown on banks gives Hong Kong an IPO edge

15 March 2019

UBS has been banned from leading market debuts for a year, and is part of a foursome paying $100 mln in fines for shoddy due diligence stretching back to 2009. As bourses fight to host a new wave of unproven startups, investors can take some extra comfort from the city’s aegis.

Self-driving trucks expose Chinese tech gap

15 March 2019

Mainland autonomous truck startup TuSimple is hitting the U.S. road, challenging the likes of Waymo and Volvo. Despite support from Beijing, policy contradictions have reduced China’s attractiveness to its own companies, making it a laggard in the self-driving race.

Viewsroom: Boeing’s struggles

14 March 2019

The U.S. aircraft maker is facing a crisis after a second crash involving an updated version of its workhorse 737 jet. There’s a financial hit to Boeing from countries grounding the plane; but there are geopolitical implications, too. Plus: China tries to stimulate its economy.

Pinduoduo offers New York a Shanghai bargain

14 March 2019

The $29 bln shopping app is giving investors a taste of Chinese tech: promise, growth and volatility. Shares fell over 17 pct after it spent far more than expected in 2018 to lure and retain customers. Still, the experience of rivals like Alibaba suggests better times ahead.

China’s tax collectors could yet blunt stimulus

14 March 2019

Officials say Beijing’s $300 bln levy reduction this year sets a world record. Yet despite a big slash last year, the government’s total take kept rising. Better enforcement could partly offset lower rates, making it harder to predict just how much cuts might juice growth.

Ping An stock repurchase comes with Beijing twist

13 March 2019

China’s biggest insurer plans to buy up to $1.5 billion of its Shanghai shares. The company, which has a Hong Kong listing too, says it’s undervalued, but the deal also stems from official efforts to pep up mainland markets. Shareholders benefit, but policy winds blow both ways.

China’s Starbucks rival pushes its luck

13 March 2019

Lu Zhengyao, Luckin Coffee’s chairman, wants a $200 mln personal loan in exchange for a role on the upcoming IPO, Reuters reports. Such hubris suggests the delivery-focused chain, which faces intensifying competition, is overheating. Investors should beware getting scalded.

Blackstone’s round trip brightens HNA attractions

12 March 2019

The private equity shop is buying back control of a Hong Kong construction company it sold to the Chinese group in 2016. The $900 mln price tag belies a slug of cash that comes with it. That makes the valuation inviting and may increase interest in HNA’s sprawling portfolio.

The Exchange: Out of the desert, into a trade war

12 March 2019

Weijian Shan spent his youth labouring in the Gobi Desert. Now he runs $30 bln at PAG, after stints at TPG and the World Bank. One of the first Chinese to study in America after the Cultural Revolution, Shan discusses trade tensions, and the economic risk of historical amnesia.

Meituan Dianping drives itself to distraction

12 March 2019

The $42 bln Chinese super-app operator grew fourth-quarter sales by a robust 89 pct. Meituan’s entire valuation is reflected in the strength of its food delivery unit against Alibaba-owned Ele.me. That raises fresh questions about costly ride-hailing and bike-sharing diversions.