China

Aussie tycoon hammers home overboarding message

20 July 2018

James Packer resigned from a whopping 22 more directorships after he quit the Crown Resorts board for mental health reasons. Campaigns against such overstretched executives are on the rise, as evidence suggests returns can suffer. Companies would be wise to demand greater focus.

The Exchange: Asia’s bubbly entrepreneurs

20 July 2018

Pete Sweeney hits the RISE tech conference in Hong Kong and hears pitches on vegan cryptocurrency, fog computing and big data for shrimp farmers. Trade tensions haven’t dented enthusiasm, but venture capitalists expect a correction to flush the dumb money from the market.

China’s air quality depends on its debt clean-up

20 July 2018

Efforts to reduce smog have been an underrated success, with air pollution down by around 33 pct in some cities last winter. The campaign to trim the $20 trln corporate debt pile helped, as it cut credit to inefficient factories. If Beijing resumes easing, haze could reappear.

TSMC etches chip fortunes onto investor memories

19 July 2018

The $190 bln Taiwanese semiconductor maker delivered the $2 bln in quarterly earnings that was anticipated. Weak smartphone and cryptocurrency demand, as well as global trade tensions, will be a drag in the second half, though. Betting on AI and 5G should help TSMC longer-term.

Old-school Chinese tech IPO bedeviled by startups

19 July 2018

Valuation expectations are falling for state-owned mobile mast operator China Tower, just as they did for smartphone maker Xiaomi. A $50 bln max may now be $35 bln, with a slug heading to cornerstone investors. The techlash is bringing at least some sense back to the market.

China’s commitment to stable yuan looks unstable

19 July 2018

The currency has moved below 6.7 a dollar, a level recently defended by state banks. The fall reflects a greenback rally and cooling Chinese growth, not the trade war weapon many investors fear. As Beijing warms to monetary easing, though, lines in forex sand easily blow away.

Hadas: Global case of baby fever is easily cured

18 July 2018

From China to Hungary, governments are concocting financial incentives for women to bear more children. The efforts are doomed, because kids these days are an economic drag. Declining populations may be a problem for creditors, but they do not really threaten national prosperity.

Really Big Data gives China medical AI edge

18 July 2018

Investors at a Hong Kong conference talked up a digital-healthcare revolution. The hype is also palpable in Silicon Valley, where U.S. life-sciences investment hit a record $17 billion last year. It’s early, but Chinese outfits with access to a huge data trove can take the lead.

Race to governance bottom won by China’s Pinduoduo

18 July 2018

The shopping app’s owner apes Alibaba with a partnership that controls the board and an insider committee on top. It then adds super-voting stock for founder Huang Zheng, who is a member of all three groups. Investors who buy into the $1.6 bln IPO are just along for the ride.

BYD’s football fumble salts investor wounds

17 July 2018

The $17 bln Chinese car and battery maker says a fraudster struck deals in its name, including with Arsenal. BYD has already squandered a rally in electric vehicle stocks; its muddled response to this scandal will vex stakeholders like Warren Buffett. Patience could run out.

Chinese shopping-app IPO travels long last mile

17 July 2018

Shanghai-based Pinduoduo is seeking a $20 bln valuation in a New York debut. Sales are surging, but its social-networking e-commerce business model targeted at lesser-known areas of China may perplex overseas investors. Unwelcome comparisons to Groupon and Zynga are possible.

Alibaba’s $2 bln food sale hints at indigestion

17 July 2018

The e-commerce firm is raising new funds from outside investors for its meal delivery arm Ele.me, media reports. This comes just three months after Alibaba took full control of the unit. Rival Meituan's mooted $4 bln Hong Kong flotation might be giving Jack Ma stomach jitters.

Boring Chinese GDP data just got interesting again

16 July 2018

Economic growth clocked in at 6.7 pct in the second quarter from a year ago, down a tick from earlier this year. The figure has been uncannily steady, making it easy to shrug off. As a trade war and deleveraging bite harder, though, overseas investors should pay closer attention.

Hong Kong stock-block will annoy all around

16 July 2018

Beijing won’t let investors trade in foreign issues or ones with super-voting shares on the HKEX. Xiaomi took an early hit and Hong Kong will hold less appeal for the likes of Aramco and tech firms. What may be a kneejerk reaction to reeling Chinese markets also could do damage.

China’s flirtation with Europe is a tease

13 July 2018

Beijing is wooing continental leaders like Germany’s Angela Merkel, hoping for allies against Trump. Despite some common interests, Brussels is sceptical of China’s market opening gestures, plus it still needs U.S. security guarantees. Sweet free trade nothings won’t cut it.

Silk Road speed bumps show limit of yuan diplomacy

13 July 2018

There is trouble along Beijing's trillion-dollar trade route. From the Maldives to Malaysia, politicians are calling to review deals, fretting over debt and dependence. Domestic politics are driving the backlash, making it tough to turn economic might into lasting influence.

Viewsroom: Trump’s Supreme Court pick

12 July 2018

The U.S. president has chosen a friend of big business in Brett Kavanaugh. But he faces bigger questions from Senate democrats about executive power. Plus: Commodity giant Glencore faces mounting risks in Washington, and what’s behind the Chinese yuan’s downward slide.

Trade war rouses U.S. from tax-cut stupor

11 July 2018

U.S. levies on another $200 bln in Chinese goods are causing Republican lawmakers and companies to sound the alarm. They could have done so sooner – but were drunk on the president’s tax-cut plan. The timing will make it hard to stop what’s already gone too far.

Chinese sportswear may be hard turf to defend

11 July 2018

As Nike and Adidas duke it out at the World Cup in Russia, a bigger matchup looms. China’s market for sneakers and kit is growing quickly, and local rivals like $14 bln ANTA have had a good run. Younger and richer consumers, though, could start giving foreign brands an advantage.

Trade war corporate welfare queues will get long

11 July 2018

Team Trump is targeting another $200 bln of Chinese goods, from fish to chemicals, for 10 pct tariffs. Both countries are also trying to reassure businesses with talk of exemptions and subsidies. That just leads to more unhealthy and lasting government influence over industry.