TikTok works hard to keep Indonesia party going 11 Dec 2023 The ByteDance-owned short-form video app is merging its online shopping business in the archipelago with local rival GoTo’s Tokopedia unit. Its $1.5 bln funding and 75% stake in the new entity will allow TikTok to bypass a recent ban on e-commerce sales in the fast-growing market.
China’s state pension fund joins the national team 7 Dec 2023 The $400 bln National Social Security Fund will be allowed more flexibility on equity investments, per new draft rules. It’s the first big asset allocation overhaul in over 20 years, so change was due. It also signals Beijing is sparing no effort to shore up the capital market.
Midea will test China Inc’s welcome overseas 7 Dec 2023 The world’s largest home appliance company plans to use proceeds from a Hong Kong listing to buy global brands. It follows the $48 bln firm’s 2017 purchase of Germany’s Kuka. Outbound M&A has shrunk but a weak Chinese economy provides a growing incentive to pursue deals abroad.
China credit warning is well-timed plea for action 6 Dec 2023 Moody’s has put the country’s ratings on downgrade watch. It may seem tardy, given how long property woes and local government debt have vexed investors. But with Beijing heading into a busy planning season, reminders of the need for responsible economic policy are welcome.
CATL prepares to power up wildest electric dreams 5 Dec 2023 The world’s largest battery maker boasts $14 bln in net cash, making a possible Hong Kong listing seem unnecessary. But the extra funds would help CATL grow in Europe and could potentially fuel explosive expansion in Southeast Asia and the US too.
Temu takes edge, and shine, off Shein 29 Nov 2023 The shopping app’s huge success helped parent PDD double quarterly revenue, sending its New York stock up 18%. It puts the planned US debut of its rival, valued at $60 bln, in perspective. Shein will test appetite for hot China-linked deals but it’s not a singular phenomenon.
Slowing China still leads the race for commodities 28 Nov 2023 The world’s second-largest economy may expand by a sub-par 4% next year. But that would be 27% of global growth. And Beijing’s shift from property to greener sectors will support its appetite for copper, steel and such. Investors looking just at the big picture risk missing out.
Foxconn is still running with difficult status quo 27 Nov 2023 Terry Gou’s exit from Taiwan’s presidential election race may shield the $45 bln firm he founded from immediate political crossfire from Beijing. However, the Apple supplier’s push to move production outside of China leaves it firmly on frontlines of rising cross-strait tensions.
Moutai price hike comes with bigger responsibility 22 Nov 2023 The Chinese booze giant has raised the wholesale price of its fiery liquor for the first time since 2018, lifting the spirits of investors in the $310 bln group. But it may have to share the windfall with its home province, which is grappling with a $380 bln debt hangover.
Geely unit IPO will test geopolitical speed limit 21 Nov 2023 EV maker Zeekr, owned by China’s largest auto group, may raise almost $500 mln by going public in New York. Sales of cars, batteries and research are zooming at home, but plans to list and expand abroad look ambitious unless Beijing’s tensions with Washington and Brussels abate.
Ransomware targets will pay one way or another 17 Nov 2023 Just saying no to extortionists – as the White House wants US firms to do – might stamp out ransom attacks. But the hack of Chinese bank ICBC shows why it’s not always realistic. Companies who won’t pay up need ever-better defenses. Either way, it’s an extra cost to be borne.
Alibaba’s U-turn casts dark clouds over China tech 17 Nov 2023 The $200 bln giant nixed the spinoff of its cloud unit, blaming US curbs on chips. The end of Beijing’s regulatory crackdown has not brought hoped-for stability. With markets worried about China’s economy and bad geopolitics, it’s still too hard to see the bottom for the sector.
Biden and Xi’s warmer ties look flimsy 16 Nov 2023 The leaders of the largest economies resumed high-level communication following years of tension. In this Viewsroom podcast, Breakingviews columnists explain how Taiwan as well as anti-China rhetoric in the lead-up to next year’s US election could undo any goodwill.
Biden-Xi summit clears low bar, reaches no heights 16 Nov 2023 The US and China leaders agreed to resume military communications, work to curb fentanyl production and discuss the risks of AI. It reduces the risk of an accidental war over Taiwan but the otherwise thin pickings highlight a fragile world where managing conflict tops the agenda.
JD’s stunted growth leaves it in the discount bin 16 Nov 2023 Revenues in the Chinese e-tailer’s core electronics and appliances unit struggled last quarter. As consumers feel the pinch, a focus on big-ticket items puts it at a disadvantage to rivals selling cheaper goods. The valuation is depressed but so is the business outlook.
Measuring the US and China’s conscious decoupling 16 Nov 2023 President Joe Biden and his Chinese counterpart Xi Jinping don’t agree on the terminology, but the Sino-American relationship is fracturing. A close look at trade, finance, investment, people and geopolitical noise shows the world’s two largest economies are pulling apart.
China’s property boost has to sway wary banks 15 Nov 2023 Beijing wants to inject 1 trln yuan into housing projects. It’s a bigger version of a 2022 scheme lenders shunned because developers are saddled with huge debts. Without a broader plan to convince banks the government can stop the real estate rot, the new effort will also fail.
More US-China take-privates could get feisty 14 Nov 2023 A bidding war has erupted for $1.4 bln Nasdaq-listed industrial automation solutions firm Hollysys. One would-be buyer even staged a dawn raid. If a deal succeeds, minority owners of undervalued peers could push for more value, too, as Chinese companies bid farewell to the US.
China’s Singles Day shows buyers’ commitment issue 13 Nov 2023 The country’s biggest shopping event recorded meagre growth of around 2% in total volumes despite steep discounts. E-commerce giant Alibaba didn’t provide figures again, a sign of slow sales. Beijing needs consumers to power growth but shoppers look fatigued.
Meta’s China quest thaws thin layer of dense cube 10 Nov 2023 The $828 bln social media company plans to sell virtual reality headsets in the country, 14 years after its Facebook service was banned there. Hardware is a less thorny way to grab revenue. It also puts pressure on the US government to soften its stance on some Chinese tech.