China’s e-commerce shift puts malls under pressure 24 Jun 2014 Stores have closed as customers move online. If internet shopping keeps growing at the same pace, it could account for a quarter of retail sales by 2020. Yet while growth in malls will peak this year, China’s urbanising population means well-planned plazas can still find success.
Hugo Dixon: Is Greece losing its reform drive? 23 Jun 2014 Prime Minister Antonis Samaras has stuck to a harsh fitness programme for two years. But just as it is bearing fruit, he has sidelined some reformers in a reshuffle. There is only one path to redemption for Athens: stick to the straight and narrow.
Alibaba is case study in U.S.-China legal gulf 23 Jun 2014 As the Chinese ecommerce giant prepares for its U.S. IPO, a congressional group is flagging the dangers in its ownership structure. Uncertainty in PRC law is to blame. The certainty that American authorities have the right to pursue graft in China is another less obvious risk.
China audit scrapes at rust in SOE engine 23 Jun 2014 Understated earnings, overstated assets, secretly built golf courses – a new audit shows a litany of accounting problems at big state-owned enterprises. This low-level rule-bending is less eye-catching than high-level corruption, but it’s a no less pernicious drain on growth.
Review: ‘Leftover Women’ may hinder China’s growth 20 Jun 2014 Women’s rights have suffered from China’s fixation on social harmony, says Leta Hong Fincher in a new book. She exposes an injustice, but that’s not enough to force change. What might is the threat of a slowing economy.
China may get less than it bargains for from UK 18 Jun 2014 Britain’s $23.5 bln package of Chinese trade and investment comes with unspoken terms: keep quiet on politics, and don’t expect reciprocity. That’s not such a bad deal. Rule of law means Chinese money buys less influence in the UK than it would back home. China may be getting more rambunctious, but openness is still the best response.
New World woe shows danger in Cayman safe haven 18 Jun 2014 The Hong Kong property group’s buyout of its China unit failed after shareholders with less than 1 pct of the votes blocked the deal under the island’s archaic rules. It’s a reminder that a Cayman domicile brings risks as well as rewards for Asia’s power-hungry tycoons.
China veto is wake-up call for world’s dealmakers 17 Jun 2014 Beijing’s antitrust enforcer has sunk its first overseas transaction, killing a Maersk-led container-shipping alliance. The national interest in protecting local outfits made this tie-up especially vulnerable. But there’s a real risk China could torpedo other global deals.
Alibaba’s slow unveiling shows good and bad sides 17 Jun 2014 The e-commerce giant has revealed more details ahead of its upcoming IPO. The growing importance of commission revenue is positive. But the rapid shift to mobile transactions is squeezing margins. The quartet of non-executive directors is unlikely to win over governance sceptics.
China’s Hong Kong experiment faces biggest trial 13 Jun 2014 Economic tensions and coming “Occupy Central” democracy protests are testing a two-system formula that has thrived for 17 years since the former colony returned to the People’s Republic. Hong Kong’s stability and China’s patience can no longer be taken for granted.
China’s vanishing metals corrode confidence 12 Jun 2014 Traders may have pledged copper or aluminium as collateral for multiple loans. Lenders can’t always spot such behaviour, and may have reasons not to complain too much or pull back too quickly. But metal-related antics are another sign of the weakness in China’s financing chains.
China hits bump on road to financial acceptance 11 Jun 2014 MSCI has decided not to include mainland shares in its benchmark emerging market index. Recent stock market reforms may help it fare better in the next reshuffle. Yet China’s capital flows remain far from free. That will hinder its efforts to join the global financial community.
China’s mini-stimulus verges on micro-management 10 Jun 2014 A tweak that lets some banks lend more to the rural sector will boost growth a bit, and maybe create some jobs. The cost is ever more complexity. That might suit regulators looking for more influence, but fine-tuning takes China further from its goal of being market-driven.
Thai telco gets better end of China Mobile deal 10 Jun 2014 True Corp is selling an 18 pct stake to the state-backed operator as part of a wider $2 bln share issue. True reduces its debt and gains a cash-rich partner to support its aggressive growth. For China Mobile, the minority stake is a pricey way to kick-start its overseas push.
China-U.S. cyber spat risks corporate casualties 9 Jun 2014 Beijing has responded to spying charges by taking aim at American tech companies. An escalating dispute could lead to blocked deals in the U.S. and lost sales in China. Though companies can try to ease security concerns, it’s hard for them to escape a political escalation.
Review: China gives Africa handy investment lesson 6 Jun 2014 Howard French’s new book paints an unflattering picture of the PRC’s heavy involvement in Africa. But China’s presence is not all bad. At a minimum, it gives African governments and businesses a benchmark for other offers now that the continent is attracting Western interest too.
Jack Ma soccer buy does Alibaba investors a favour 6 Jun 2014 The internet giant’s founder hatched a $192 mln investment in China’s most popular team during a drinking session. Though the deal is immaterial to Alibaba’s value, it shows how the group works. It’s a reminder that investors in its IPO will be little more than spectators.
BRICS bank: a good idea that can do grave harm 6 Jun 2014 Brazil, Russia, India, China and South Africa are sponsoring a World Bank clone. The new lender could ease the infrastructure deficit in emerging markets, but could also end up backing social and environmental disasters. The bank’s governance will decide if it’s a boon or a bane.
China wrestles with repression of financial sort 4 Jun 2014 Incomplete political reforms led to violence and retrenchment twenty-five years ago today. China is stable now, but the financial system shows a similar tension between opening up and control. Missteps could lead to chaos. Yet savers may be harder to suppress than activists.
China’s strikes not as bad as they seem 3 Jun 2014 Adidas and Nike are among Western brands who have fallen foul of angry workers demanding better pay. Mostly they oblige. But manufacturers are gaining from better infrastructure and financial reform; workers naturally want a share. Strikes are more evolution than revolution.