China

Riches and new rules weigh down China Mobile

20 October 2017

A price war and cuts to roaming fees have hit margins. But the biggest issue facing the $205 bln behemoth is its enormous cash hoard. That is the main reason China Mobile trades at a large discount to peers. Until shareholders see more of the cash, the valuation gap is justified.

Meituan orders up help to be China’s next web star

20 October 2017

The food-delivery to hotel-bookings startup raised $4 bln at a $30 bln valuation. Investors reckon Meituan-Dianping could be China’s next huge online platform. With scale benefits from offering many different services, and this warchest to fight off rivals, they could be right.

PBOC’s Zhou seeks lasting sway with debt warning

19 October 2017

The central bank governor is suddenly ramping up calls for reform and warning of a possible “Minsky moment.” With the 19th Party Congress in full swing, the soon-to-depart 69-year-old no doubt hopes to burnish his legacy, and ensure a like-minded successor fills his shoes.

China’s leaders make peace with its old economy

19 October 2017

Output grew 6.8 pct in the third quarter, helped by higher debt, exports and property prices. For all the talk of innovation and deleveraging, the factors driving growth haven't changed. Nor do a few startups signal transformation. For better or worse, Beijing is okay with that.

Qudian IPO feeds debt-hungry Chinese millennials

18 October 2017

The online lender backed by e-commerce giant Alibaba’s financial arm has priced its U.S. listing above expectations, says Reuters. It boasts fast growth, low defaults and - shockingly for tech - profitability. As young Chinese shoppers rack up debt, Qudian will keep earning.

Viewsroom: President Xi Jinping’s moment

17 October 2017

The Chinese Communist Party’s 19th National Congress kicks off this week. Delegates at the week-long confab will select new leaders, including for key financial and economic posts. But the spotlight will be on Xi and whether he can consolidate his power and extend his reign.

China’s iQiyi is like Netflix with extra challenges

17 October 2017

The Chinese video-streaming service is eyeing a debut on U.S. markets next year and already inviting comparisons to its American partner. Both are burning cash on new content to lure fans. Fickle consumers and limited appeal abroad stand in the way of a $10 bln-plus valuation.

Guest view: Chinese oil can fuel North Korea talks

16 October 2017

Nothing will concentrate the minds of North Korean leaders more than a Chinese oil embargo, argues William Rhodes, a former Citigroup executive and co-chair of the G30’s steering committee on bank culture and governance.

Blame for Deutsche Bank woe extends beyond CEO

16 October 2017

Reports of boardroom tension at the German bank are adding to unease among investors already rattled by a sliding share price. While boss John Cryan may be in the firing line, Chairman Paul Achleitner helped set the strategy. He shares some responsibility for the bank’s malaise.

Communist Party assault muddles Chinese capitalism

12 October 2017

The government hopes to regain the private sector's confidence even as it tightens its grip, in particular on the critical tech sector. Alignment with state priorities could ease red tape, but bureaucrats make lousy CEOs, and vicious factional politics will distract executives.

Fast Retailing tailors a bright future in Asia

13 October 2017

Full-year results from the $32 bln fashion retailer behind Uniqlo show it is back on track overseas. Fast Retailing is growing rapidly across Asia, has staunched U.S. losses, and has bold plans for China. After earlier missteps, this Japanese group is going global in fine style.

Beijing’s closer embrace is bad news for Big Tech

12 October 2017

China wants stakes and board seats at web giants like Tencent, the WSJ says. Beijing is already influential behind the scenes in technology, and given its tightening grip elsewhere, a power grab in this vital sector was all but inevitable. This will nonetheless cost investors.

Hong Kong’s new leader clears first hurdle

11 October 2017

In her maiden policy address, Carrie Lam unveiled lower taxes for small firms and more affordable housing for the middle class. Her proposals mark a decent start for tackling the city’s economic divide. If she follows through, Lam could earn support tackling more divisive issues.

Syngenta puts Beijing’s unspoken promises to test

10 October 2017

The Swiss seed company’s Chinese parent and its state backers disagree over whether they stand behind its legal bills. It’s a dynamic found across China’s financial system: implicit guarantees are common, and rarely tested. The government has good reason to keep things ambiguous.

IKEA digital surrender raises flicker of IPO hope

10 October 2017

The Swedish furniture firm has grown through its warren-like stores and without needing external capital. Yet it now plans to sell through websites like Amazon to reach new customers. With competitive pressures growing, IKEA might also revisit its aversion to selling stock.

Breakdown: Xi and China’s leadership reshuffle

10 October 2017

President Xi Jinping may be China's strongest leader in decades, but reform has been slow on his watch. Some believe that if he can consolidate power at the Party Congress next week, he'll liberalise further. Four key benchmarks will help measure the strengthening of Xi's grip.

China’s oil giants brace for electric car crash

9 October 2017

Beijing's move against gasoline means tough times ahead for the country's oil majors. The rapid push into new energy vehicles will curb demand for imported hydrocarbons, but at the expense of state giants like Sinopec and PetroChina. It might also pressure crude prices.

Wanderlust, not shopping, drives China tourism 2.0

9 October 2017

More people spent China's "Golden Week" holiday on Thai beaches than in Hong Kong malls. As Chinese tourists eschew shopping for sight-seeing, offshore luxury retailers could lose custom. But as the travelling middle class spreads out, there are bound to be more winners.

Viewsroom: Building the car for the future

5 October 2017

Ford boss Jim Hackett’s plan to catch up with rival GM on electric and self-driving vehicles starts with $14 bln of cost cuts. China may be in pole position as it considers banning gasoline cars entirely. But plenty of factors could delay mass adoption of new technology.

More for China than London in Russian hydro IPO

5 October 2017

Oleg Deripaska’s En+, which controls aluminium outfit Rusal, aims to raise $1.5 bln in an LSE and Moscow listing. It touts a green model, but public investors will have little say. The cornerstone backer, a partner of the PRC group that just bought into Rosneft, may do better.