China

Investors can ignore glimmers of China trade hope

18 September 2018

The latest round of U.S. tariffs on $200 bln of its goods, and China’s response, could have been worse. That buoyed markets. But investors are missing the bigger picture. Talks and hearings haven’t stopped things getting to this point, and they are likely to escalate further.

Naspers takes first step to shrinking Tencent gap

18 September 2018

The South African group is valued at a hefty discount to its $120 bln stake in the Chinese internet giant. Floating its African TV unit should therefore provide some relief to frustrated investors. To unlock more value, though, Naspers may need to shed its remaining operations.

Trump’s China tariff weapons are getting blunter

17 September 2018

The U.S. administration is set to move forward with duties on another $200 bln of imports. Initially, it deftly avoided consumer goods. The expanded list, though, is more policy sledgehammer than scalpel. The pain will be felt by American households and Chinese exporters alike.

Chancellor: Lehman’s easy money extends to China

17 September 2018

The last in a series of essays marking the 10th anniversary of the crisis argues the ultralow rates that inflated assets and led to widespread capital misallocation, wealth inequality, financial instability and other risks in advanced economies are even more evident in China.

Nio zooms from carmaker to tech star

14 September 2018

China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.

China investors coming to terms with changed world

14 September 2018

The tone at this year’s CLSA powwow in Hong Kong was notably reserved as attendees wrestled with trade tensions, a cooling economy and the 20 pct fall in Shanghai stocks. General pessimism seems overdone, but the Asia-focused financial community senses a new normal taking hold.

Meituan Dianping feeds into Chinese tech fears

13 September 2018

The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.

Biotech starts Phase II Hong Kong market trial

13 September 2018

Diabetes drug developer Hua priced its shares at the bottom of the range, and halved the deal size. After peer Ascletis debuted last month to kick off an expected wave of IPOs from the sector, its value fell 50 pct. The success rate for this big experiment may be low for a while.

Chinese investment bank IPO flaunts tech conflicts

13 September 2018

Alibaba-affiliated Ant Financial has been lined up as a cornerstone investor in China Renaissance. Fan Bao’s boutique built its business advising JD and is among the last with loyalties to Jack Ma’s other big rival, Tencent. The knotty relationships potentially spell trouble.

Beijing’s confused tax message will strain growth

12 September 2018

A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.

Chinese $5 bln winter sports bid is hard to beat

11 September 2018

Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.

Didi falls way behind Uber on road to IPO

11 September 2018

Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.

Chinese Tesla’s $1.3 bln IPO revs up too fast

11 September 2018

Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.

Volvo’s IPO problems go beyond brewing trade war

10 September 2018

The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.

Jack Ma’s exit plan just raises more questions

10 September 2018

Alibaba says CEO Daniel Zhang will succeed the $420 bln group's co-founder as chairman in 2019. Planning ahead is laudable, but the sketchy blueprint, after a baffling interview, leaves worries over the top job and Ma's influence unanswered. It's one step forward, two steps back.

Jack Ma’s next moves will instruct China tech

8 September 2018

The charismatic co-founder of Alibaba says he plans to retire. It’s a sign of the $420 bln company’s maturity that others are ready to step up, unlike at rivals like scandal-hit JD. But he will still wield huge influence. Investors will want clarity on who really holds the reins.

Foreign carmakers are caught in a China drive-by

7 September 2018

Beijing wants to slash excess auto production at a time when Nissan, Toyota and others hope to expand. Draft rules could cut as much as a third of capacity in the world’s largest car market. Official feuding over the issue too could prove a speed bump, even for global giants.

Tianqi edges ahead in Hong Kong’s lithium race

7 September 2018

China’s top two producers of the battery ingredient are revving up $1 bln listings in the city. Both offer a bet on the electric car boom. But Tianqi’s quality resources give it a narrow advantage over processing giant Ganfeng, at a time when investor confidence is wobbling.

China flaunts firepower in Canadian copper deal

6 September 2018

Zijin Mining agreed to buy Nevsun for $1.4 bln, trumping hostile suitor Lundin. A cash bid at a 57 pct premium mostly to bet on a project in Serbia speaks to Beijing's relentless appetite for important metals, but also to scarce supply. Pockets of outbound M&A exuberance persist.

China’s London stock bridge goes halfway across

5 September 2018

Beijing has new draft rules for investing between the Shanghai and London exchanges. In theory the channel could see Chinese punters put billions into UK shares, as they have in Hong Kong. It’s otherwise more about diplomatic relations than market demand.