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Hong Kong’s first UK exchange foray clouds second

20 September 2019

Its 2012 takeover of the London Metal Exchange promised to preserve the institution and expand in China. Hong Kong’s bourse honoured the first, but Beijing made its own way in commodities. Returns have been poor too. That history informs its $37 bln London Stock Exchange bid.

Beijing’s monetary easing path is a conflicted one

20 September 2019

China has trimmed its new one-year benchmark lending rate to 4.2%. Policymakers want to boost slowing growth, but without fueling a property or credit bubble. The result is another half-step towards loosening that will disappoint those hoping for a quick stimulus.

Li Ning’s sprint easily confused for a marathon

19 September 2019

The $7 bln Chinese sportswear maker’s shares have nearly tripled this year and now fetch a higher valuation multiple than Nike, Adidas and Anta. A new co-CEO from Uniqlo may help build on the turnaround. Fierce competition and an economic slowdown, however, will slow the pace.

Vaping isn’t dead, just prematurely haggard

18 September 2019

Juul Labs started as a safer alternative to smoking, but now lawmakers are treating it as a menace. Its recent $38 bln valuation has likely gone up in flames. That doesn’t mean e-cigarettes won’t be profitable. Margins could even be higher as a niche health aid.

Pig crisis gives China a shot at transparency

18 September 2019

African swine fever has driven local pork prices up by about 50% in a year. Inflation remains muted regardless, prompting some speculation that officials may be massaging the figures. Other factors make that unlikely, but it's a rare opportunity for Beijing to open up – a little.

AIA has a good option against Hong Kong turmoil

17 September 2019

The $120 bln insurer is vulnerable to protests rocking the city with an estimated one third of new business dependent on visitors from the mainland, many hoping to move money offshore. AIA’s policies sold in China are no substitute, but expansion there will ease any future pain.

Dairy deal Down Under unlocks China prize

17 September 2019

State-backed Mengniu wants to buy Bellamy’s, a maker of infant formula, for some $980 mln. The premium looks frothy, and such tie-ups have soured before. But if local ties mean licences and an Aussie brand lures wealthy buyers, shareholders are right to bet on success.

China keeps trade war fire away from Wall Street

17 September 2019

Goldman Sachs wants a majority stake in its local joint venture. Beijing looks open to letting U.S. banks boost their presence despite tensions. Their lack of market heft means they don’t threaten local rivals, and China needs their support in the future.

The Exchange: The Asianisation of the world

17 September 2019

A splintering West and increasingly interconnected East is creating a newly powerful mega-region, according to Parag Khanna, author of “The Future is Asian.” He swung by the Breakingviews office in Hong Kong to break down the economic and geopolitical rationales behind his idea.

Tencent jams pedal into battered China car market

16 September 2019

The tech giant and others have made a roughly $1.2 bln offer for comparison site Bitauto. That will in turn mean bidding for online retailer Yixin, which the target part-owns. It’s a cheap bet that may bring benefits in payments; acceleration will still require an auto recovery.

Huawei’s post-American world comes into hazy view

13 September 2019

The Chinese telco giant plans to raise $850 mln in its first onshore bond issuance. It’s also ready to share its prized 5G know-how with foreign firms. Innovative concessions may blunt a relentless U.S.-led assault on its reach, but still point to a more domestic-focused future.

Beijing’s new moves dance around capital controls

11 September 2019

Quotas on a pair of high-profile inbound investment schemes are being scrapped. It’s partly symbolic, given that a $300 bln cap was never hit. China wants more foreign funds, but not enough to put outbound flows at risk. Mounting debt problems will further entrench the system.

China’s 5G fix reflects a costly global reality

10 September 2019

Two of the three state telecom outfits will join forces to build a next-generation network. Cooperation could shave about $50 bln off a bill likely to be several times larger. It's a solution that suits Beijing’s ambitions, but a sensible one; overseas rivals may not be so lucky.

Chinese video-games takeover bid may start a trend

10 September 2019

Internet pioneer Sohu is offering to buy out minority investors in a U.S.-listed gaming subsidiary for a near-70% premium. The move looks opportunistic: the shares, hit by Beijing’s regulatory crackdown, are at less than half of a 2017 peak. Peers could lure bargain hunters too.

U.S. might quite like a China deal for En+

9 September 2019

State firms linked to Beijing may buy Russian VTB’s stake in the energy group. Washington, which attached strict conditions to the de-sanctioning of Rusal’s parent, wouldn’t love a Russia-China sale. But it could at least help distance still-sanctioned Oleg Deripaska from En+.

Jack Ma exits as China tech 2.0 unease sets in

9 September 2019

Alibaba's charismatic co-founder will step down as chairman. Ma was more politically deft than rivals like Tencent's Pony Ma, keeping his company out of regulatory trouble. His successor steps in at a tricky time: Beijing’s grip is tightening as the e-commerce boom cools.

Viewsroom: How money really can grow on trees

5 September 2019

Done right, reforestation can capture much of the carbon causing climate change. It would improve crop yields and water quality and lessen the power of floods and storms like Hurricane Dorian. There are good financial returns to reap, too. Plus: the Alibaba competitor to watch.

Carrie Lam climbdown hints at Beijing’s priorities

5 September 2019

Hong Kong’s chief executive withdrew a controversial extradition bill, probably with central government approval. Her other comments implied that mainland officials are focused on risks to China’s positive international image. Trade negotiators should take note.

Chinese consumers are deceptively perky

4 September 2019

Sales of athletic gear, appliances and such have kept growing at 7-10% in defiance of economic headwinds blowing more strongly. Tax cuts and rising property values are helping. Without such support, the likes of Tiffany, Haier and Yum China are likely to feel the slowdown’s pinch.