China

U.S. response to Hong Kong calls for precision

5 June 2020

Politicians want to swat China for ramming through draconian security laws in the restless city. The likely targets are Chinese banks. Starving them of dollars is a harsh option but risks collateral damage to foreign firms. Naming and shaming individuals is smarter and cheaper.

JD stock sale helps illuminate China’s have-nots

5 June 2020

The $70 bln Beijing-based online retailer will be next with a second listing, in Hong Kong. Others are bound to follow, but not all 175 trading on New York exchanges can access this safety valve from a U.S. backlash. Some may need to go private and hibernate for a while.

UK’s Hong Kong stance is so far mostly spin

4 June 2020

Prime Minister Boris Johnson says he is offering 3 million residents of the former colony a possible route to citizenship. For now the tweaks to the visa regime look limited and vague. That's a missed opportunity for a post-Brexit economic boost as well as for righting a wrong.

NetEase fortifies itself against global disarray

2 June 2020

The $51 bln video-game producer is ready to raise $2.6 bln in Hong Kong. Quarantined customers have helped it defy a U.S. backlash against Chinese stocks. A secondary listing closer to home, following a tougher trail blazed by Alibaba, should add a useful layer of protection.

U.S. sanctions on China are means without an end

29 May 2020

President Trump says he may penalize PRC officials linked to a new security law for Hong Kong. The first move of its kind would escalate tensions. Yet it probably won’t deter Beijing and could spur retaliation. Unlike tariffs, there's also no clear goal beyond punishment.

German carmakers step on Chinese electric pedal

29 May 2020

VW is taking big stakes in two Chinese EV firms, while Daimler may invest in battery-maker Farasis Energy’s $480 mln IPO. Demand remains tepid, oil is too cheap, and the targets look richly priced. But these deals lock in supply, and position both to compete with Tesla in China.

Chinese online tutor gets lesson in multiplication

29 May 2020

GSX Techedu deflected one sloppy short-seller attack and a second sensational one. A third from Muddy Waters calling the $7 bln company a fraud hit as Luckin buckled and Congress moved on U.S.-listed Chinese stocks. Growing scepticism will require targets to have strong defences.

TikTok’s best move is a clean break from ByteDance

28 May 2020

The video app’s Chinese parent is shifting power away from the People’s Republic. That’s unlikely to win over American lawmakers suspicious TikTok will collect consumer data and send it back to Beijing. ByteDance’s most realistic political option is to sell its rising star.

Viewsroom: Hong Kong crunch

28 May 2020

U.S. Secretary of State Mike Pompeo declared the Asian financial hub no longer autonomous from China, days after Beijing unveiled plans to ban sedition and subversion there. Breakingviews columnists in the city untangle what it means amid the trade war, pandemic and protests.

Hong Kong financiers face Man Group’s terror

28 May 2020

During China’s 2015 crash, police detained the China chief of the British hedge fund and others; some state media blamed foreigners for sabotaging markets. Beijing’s proposed new security law will extend this attitude to Hong Kong. Bankers should worry as much as protesters.

Hong Kong gets thrown under “make China pay” bus

27 May 2020

America’s top diplomat Mike Pompeo says the city is no longer autonomous. That decision initially hurts the financial hub more than it does Beijing. But an escalation in unrest would set the scene for worse economic pain for China, with a U.S. election raising the stakes.

U.S. Senate could shift China risk into overdrive

26 May 2020

A bipartisan bill would impose sanctions on Beijing officials and local banks for new Hong Kong curbs. Tensions between the two superpowers are already high. The legislation would bump that up several notches. And the economic fallout would be worse than that of the trade war.

Bad borrowing habits come home to roost in India

27 May 2020

A London court ordered Anil Ambani, the brother of Asia’s richest man, to pay $700 mln to Chinese banks led by ICBC over a personal guarantee on a loan. The case is indicative of the unorthodox funding practices used by the country’s tycoons. It should help clean up their acts.

Meituan Dianping cooks up some tasty scraps

25 May 2020

Covid-19 hit China’s $83 bln takeaway-to-taxis company, whose quarterly sales fell 13%. The outlook is shaky, but more restaurants have signed up and new initiatives like contactless delivery should provide value longer-term. Merging Western peers are in comparative disarray.

Luckin spill will get China coffee war brewing

25 May 2020

The reeling chain once worth $12 bln is getting booted off the Nasdaq for fraud. Its brand might be toxic, but it has assets and ideas that Yum China, Tim Hortons and HeyTea could buy or adapt. Such deep-pocketed competitors may present a more formidable challenge to Starbucks.

Alibaba may be China’s secret stimulus weapon

22 May 2020

The e-commerce firm is benefiting as millions of shoppers turn online - quarterly sales rose 22% to $16 bln. But overall domestic demand is weak and Alibaba has been handing out subsidies to kickstart businesses. That makes the $569 bln giant ideally suited to revive consumption.

Luxury will fly only when travellers do

22 May 2020

Burberry and its fashion rivals face a summer of discontent. European stores are starting to reopen, and more bling is being sold in mainland China. But purchases by tourists won’t rebound for a while. Rising inventory is a sign that the current season is partly lost.

China guts growth goal for greater good

22 May 2020

Beijing has ditched its annual GDP target for the first time. This relieves officials from making up for slumping demand by juicing industrial overcapacity with sloppy credit, and puts employment into focus. What’s good for China will be mixed news for trading partners.

Hong Kong wreck looms if U.S. hawks join Beijing’s

22 May 2020

China is ramming through laws to suppress sedition and foreign meddling, which are certain to be broadly defined. The business community can endure political repression. Sloppy U.S. retaliation against trade and investment flowing through the city would really hurt, though.

Wall Street front opens wide in U.S.-China combat

21 May 2020

A political war of words, including over Covid-19, is intensifying and spurring more action. BlackRock’s Chinese investments are now targeted while attacks on U.S.-listed mainland companies threaten $1 trln in market value. It’ll be hard to avoid collateral damage in finance.