Britain joins China in investment limbo 1 Jul 2016 Heathrow Airport's expansion is on hold. Now the UK has voted to leave the EU, controversial or financially demanding decisions may be left dangling. There's a precedent in China, where a graft purge led to widespread dawdling. British inertia could be much tougher on growth.
BBMG deal firms up China’s sloppy cement industry 30 Jun 2016 The Beijing-based building materials group is injecting $2 bln of assets into Jidong Cement and taking control of its weaker rival's parent company. This and other big deals are helping rationalise China's glutted industry – even if M&A is often neither quick nor straightforward.
Kuka shows bargaining power of China’s M&A targets 29 Jun 2016 Foreign companies with prized technology can demand much more than a fat premium from Chinese bidders. That is the message from Midea's extensive binding agreement to keep the robotics maker's headquarters, factories and jobs in Germany for the next seven and a half years.
Local brands lead race for China’s savvy consumers 29 Jun 2016 From shampoo to snacks, upstart Chinese companies are challenging foreign rivals, a new report shows. They heed digital trends, adapt to local tastes and respond to customers' increasingly sophisticated demands. Western firms that don't follow their lead risk being left behind.
Lyft mulls trip out of capital destruction 28 Jun 2016 The $5.5 bln ride-hailing app has hired Frank Quattrone’s Qatalyst – an adviser with a knack for selling tech firms at hefty premiums. With rivals Uber and Didi raising and burning billions in an attempt to gain control of markets, M&A discretion may prove wiser than valor.
Steel deal will test China’s reform mettle 28 Jun 2016 Combining Baosteel and Wuhan Steel would create a global giant. If cost and capacity cuts followed, that would underline how serious China is about industrial reform, and suggest a flood of cheap exports could recede. For now, though, it’s easy to be sceptical.
China has more to lose from Western turmoil 28 Jun 2016 As voters in developed countries reject globalisation, Premier Li Keqiang has called for more international economic cooperation. That makes sense: rising protectionism and resistance to foreign investment will hurt Chinese business and exacerbate its own economic slowdown.
China’s innovators set to ratchet up patent wars 28 Jun 2016 Homegrown firms have been busy building a war chest of patents. A recent ruling in Beijing against a design of Apple’s iPhone suggests local tech rivals are increasingly willing to wield them too. As competition for market share heats up in China, more skirmishes will follow.
Qualcomm lawsuit is test of its China standing 27 Jun 2016 Less than two years after a record antitrust settlement with Beijing, the U.S. chip giant is suing a local handset maker for breaching patent agreements. It's a big gamble on China's legal system. The outcome will set the tone for the market where Qualcomm earns half its revenue.
Qunar’s cut-price buyout might just fly 24 Jun 2016 The travel agent is the latest U.S.-listed Chinese group to get a buyout proposal from back home. A 15 pct premium to a depressed stock price is hardly generous. But if major shareholder Ctrip can be persuaded to hop aboard, this deal could work.
Hong Kong IPO cornerstone habit is out of control 22 Jun 2016 The territory’s addiction to pre-selling shares in new listings has gone too far. China Development Bank’s leasing unit may hand at least 70 pct of its $1 bln offering to friendly investors. The practice distorts prices, hurts liquidity, and diminishes Hong Kong’s reputation.
Chinese ouster big wake-up call for Spanish boards 21 Jun 2016 Shareholders in Spain’s NH Hotels have voted to remove China’s HNA from the board of the Spanish hotel group due to accusations of a conflict of interest. Activist investors are a rare sight in the cosy boardrooms of Spain. This sets an important precedent.
Tencent displays financial skills in Supercell buy 21 Jun 2016 A consortium led by the Chinese gaming giant will buy 84 pct of the Clash of Clans maker for $8.6 bln. Tencent will have voting control, yet will invest less than half that sum in equity. It’s a shrewd way to reduce the risks of buying into a notoriously hit-driven business.
Wal-Mart picks right battle in China with JD deal 21 Jun 2016 The U.S. giant is selling its local website to rival JD for $1.5 bln in stock. Wal-Mart only recently took full control of the unit. But battling Alibaba and JD would have been difficult and costly even for the world’s top retailer. Now it can focus on boosting offline sales.
Vanke’s white knight leaves shareholders in a bind 20 Jun 2016 China’s top property developer wants to buy land from Shenzhen’s metro operator for $6.9 bln in stock. If approved, this would help Vanke see off an unwanted suitor. Diluting existing shareholders is hardly investor-friendly, but vetoing the deal would not do much good either.
Symbolic iPhone ruling attests to real China risk 17 Jun 2016 A Beijing regulator ordered Apple to stop selling some smartphones in the city because their design was too close to a Chinese firm’s model. The ruling probably won’t have much effect, but it’s a reminder of the uneven field upon which Apple, Uber and others are playing.
Review: Mapping China’s economy for outsiders 17 Jun 2016 Arthur Kroeber’s guide to the Chinese economy punctures the myth that it is governed from on high. He describes the competing interests and political bargains that underpin its growth in layman’s terms. It’s a valuable source for anyone trying to make sense of People’s Republic.
China’s foreign M&A spree has its own unique logic 17 Jun 2016 Chinese bidders are snapping up overseas companies with few obvious financial benefits. Three factors are at work. Some want to acquire technology and management expertise. Some see value compared with inflated asset prices at home. Others are just seeking trophy assets.
Batteries will short-circuit old business models 16 Jun 2016 Cheap, powerful batteries are almost a mass-market reality. The U.S. storage market could grow 45 pct a year, as prices plunge. It’s great for green energy suppliers, and those who like clean air - but less so for old-school utilities, and possibly makers of batteries themselves.
MSCI gives China stock markets time to clean house 15 Jun 2016 The index compiler has put investors first by leaving mainland stocks out of its global benchmarks. Fund managers need to be sure they can get their cash out of China as easily as they can put it in. The decision gives Chinese regulators a clear incentive for further reform.