China

Baidu’s revival adds speed to China’s AI race

26 April 2018

Quarterly earnings at China’s search giant topped $1 bln, trouncing expectations. Sales at its listed video arm, iQiyi, also jumped. Baidu may have been eclipsed by rivals like Alibaba, yet progress in autonomous driving is giving it an early lead in tech's next battlefield.

Diminished Deutsche Bank resembles cut-price BNP

26 April 2018

The German lender signalled the end of its global investment banking ambitions with cuts in the U.S. and Asia. New boss Christian Sewing plans to focus on Europe and more stable revenue sources. But low profitability hinders his plan to mimic continental rivals like BNP Paribas.

U.S. squeeze could rally China tech behind Beijing

26 April 2018

Like rival ZTE, Chinese telecoms equipment giant Huawei could also be in trouble over sanctions. The duo’s woes show how vital U.S. parts are to global supply chains. Beijing, which has long dreamt of self-sufficiency in technology, could enlist help from the likes of Alibaba.

China’s bad banks go on, even if bad bankers don’t

26 April 2018

Huarong is humbled as graft busters oust its chairman and confiscate passports. The company is part of an aging group that evaded obsolescence by turning into distressed asset investors. With $270 bln of bank loans gone sour, Beijing needs to keep bad banks around.

Xiaomi puts collective spin on tech IPO vows

25 April 2018

The Chinese firm says if net margins on its phones and gadgets ever top 5 pct, users will keep the spoils. Ahead of an IPO at a mooted value of up to $100 bln, this is a stunt worthy of Silicon Valley. It tells investors to focus on apps, and consumers that Xiaomi has their back.

Viewsroom: America puts ZTE in the sin bin

25 April 2018

The Trump administration’s decision to ban U.S. companies from selling to the Chinese telecom giant is seriously hurting the company's business. And there’s no easy plan B for ZTE. Also: China has a new way to measure unemployment. Should investors take it seriously?

Didi floors its way to a public listing

24 April 2018

The Chinese ride-hailing outfit may be steering toward an $80 bln IPO this year as Uber finds its way. Didi also is moving into Mexico, adding food delivery and exploring custom cars with the likes of Renault. It could be a bid to race to opening Hong Kong and Shanghai markets.

Ping An healthcare IPO looks pricey but fit

23 April 2018

The Chinese finance giant has launched a $1 bln IPO of its medical arm. By connecting patients with doctors, drugs and health services online, the Good Doctor app supports policy while accumulating valuable data. It’s not yet profitable, but the premium looks justifiable.

Ericsson rebirth as much made in China as Sweden

20 April 2018

The Swedish telecom-kit maker’s shares soared 15 pct after quicker-than-expected cost cuts. That adds credibility to boss Borje Ekholm’s previously unimpressive rescue effort. An even bigger boost could come from anti-Chinese sentiment harming rivals like Huawei and ZTE.

Beijing sets off careless Wanda fire sale

19 April 2018

Officials pushed the developer to shed assets to pay down debt, forcing it to scramble to stave off default. Buyers of its properties got discounts that let them book billions in quick profit. In retrospect, Beijing’s meddling looks more hapless than prudent.

Hadas: Knowledge is better shared than patented

18 April 2018

China is moving towards stronger protection of intellectual property. Trump’s prodding may speed up the pace. But hoarding knowledge is getting harder and less worthwhile, especially in developing countries. A global “Republic of Technology” may eventually replace patent wars.

China/Russia oil hug can dodge Huarong curveball

18 April 2018

Beijing is investigating the state-run asset manager’s chair for graft, in a copy of its probe into private group CEFC. That complicates Huarong’s support for CEFC’s acquisition of a stake in Rosneft. Yet given these are de facto state players, the deal should still survive.

Danone pasteurised debt gives novel way to go green

18 April 2018

Banks led by BNP Paribas will charge the French dairy group a lower margin on a 2 billion euro credit line if it hits social and environmental targets. Perversely, lenders would gain if Danone drags its feet. But shareholders now have a clear incentive to do the right thing.

Savory European fare feeds China’s M&A cravings

18 April 2018

Property developer Kam Fung may buy Spanish meat producer Incarlopsa, valuing it at 1.2 bln euros. Combining bricks and ham offers no clear benefits, and the price looks rich. But Beijing isn't guiding against food investing, and the Trump era forces a change of deal direction.

China backlash could unravel 5G network effect

18 April 2018

Huawei's retreat and ZTE being cut off from U.S. vendors will slow telecom infrastructure development in both America and China. And given how instrumental the two companies are to 5G technology and the power of supply chains, the whole global rollout is likely to be impeded.

China’s new unemployment measure has big job ahead

18 April 2018

In the first regular monthly numbers using surveys, Beijing reported a 5.1 pct jobless rate. It's far better than relying on claims of work-seekers. The question is whether officials will trust the gauge enough to scrap GDP growth targets – and if others trust it in a downturn.

Cox: Belt and Road paving way to worrying excess

17 April 2018

Hallmarks of speculative exuberance abound with China's plan to recreate modern Silk Road trade routes. There are fancy new banking jobs, silly conferences and creative investment ideas. The danger is the $1.5 trln initiative devolves into an epic era of capital misallocation.

China’s surprise reserve cut exposes growth angst

17 April 2018

The central bank cut reserve requirements for banks, freeing $200 bln for lending. That backs up other moves to help over-stretched banks amidst a purge on loose credit. The timing, however, suggests Beijing is looking for a cushion if the economy slows, or a trade war escalates.

Tesla in pole position to win U.S.-China trade war

17 April 2018

Beijing has set deadlines to lift JV rules for foreign automakers. Ford and Daimler will be pleased, but Elon Musk's embattled $50 bln electric-car maker should benefit most. Freed to enter the biggest market without having to share technology, Tesla's risky strategy may pay off.

Zambia debt dispute undermines African credit

17 April 2018

The copper producer has denied it has dollar debt beyond its $8.7 bln of foreign borrowing. Its vague clarification comes two years after a $3 bln bond scandal in neighbouring Mozambique. Bilateral lending, particularly from China, is blurring the credit picture across Africa.