Asia’s tech titans face Nissan-style key-man risk 27 Dec 2018 Startup founders have flourished in the region, taking over where old-school tycoons left off. Yet after Carlos Ghosn and a storm at JD, shareholders see charismatic bosses as liabilities too. Such concerns may mean unwanted attention at SoftBank, Foxconn and others in 2019.
Tencent will become world e-sports champion 27 Dec 2018 The global $1 bln competitive video-game market will reach a new level in 2019. As audiences for “League of Legends” tournaments pull even with the NFL, ad revenue will post explosive growth. That will fund Tencent’s expansion of its overseas franchise.
A Trump versus Xi wrestling match might just help 26 Dec 2018 Maybe not a real one. But Tencent could tag-team with WWE to build Chinese versions of Triple H and The Undertaker, and vent a bit of trade tension. The $370 bln tech giant would make a burly partner; Tencent would score a PR coup, plus Trump access via co-founder Linda McMahon.
Asia’s beauty giants will apply a Western gloss 21 Dec 2018 J&J, Unilever and others have splashed out on cutting-edge cosmetics in Japan and South Korea. They want innovation, plus clout in China. Yet locals like Shiseido and snail mask supremo Amorepacific have cash and room to grow outside the region. They can reverse the M&A trend.
U.S. cyber allegations risk bigger rift with China 20 Dec 2018 The United States indicted Chinese hackers while its allies condemned cyber thefts. The moves, like the recent detention of Huawei’s CFO, are ostensibly separate from trade talks, but Beijing won’t see it that way. The Trump administration may have to choose its priority target.
Shared bike wipeout indicts China’s startup model 20 Dec 2018 Ofo is struggling to refund millions of rider deposits, media report. The $2 bln firm, led by a young, stubborn founder, rushed for market share regardless of cost, enabled by indulgent backers like Alibaba. China's wasteful tech spending may be overdue a big bankruptcy.
East Africa will buck global great rift trend 20 Dec 2018 Twenty-five years after genocide, Rwanda’s economy is motoring sufficiently to need new markets. The potential inclusion of Ethiopia would make East Africa a single market of 250 million people. If it prospers, it would provide a useful counterpoint to global balkanisation.
Hong Kong’s IPO crown rests on rickety market 20 Dec 2018 The financial centre's $32 bln haul of new listings this year puts it in the global lead. Yet 72 pct of debutantes are trading below their offer prices, and overall trading is thin. Too few long-term investors and a crowded but illiquid market are to blame. Both are hard to fix.
China can afford some pipe dreams in 2019 20 Dec 2018 After years of speculation, Beijing will finally push behemoths like $200 bln PetroChina to spin off their pipelines next year. Allowing those oil and gas networks to run independently opens the field up to smaller competitors. It’s a major step towards energy market reform.
China’s three mobile carriers will become two 19 Dec 2018 As 5G investments ramp up next year, the country’s carriers will face mounting bills. That might make 2019 the year that the two smaller players, China Unicom and China Telecom, finally join forces. It would mean less competition, but officials have bigger prizes in mind.
The 2019 stock market reversal: how it happened 18 Dec 2018 Few people would have disagreed at the beginning of the year that the nine-year-long bull market was reaching its end phase. That didn’t diminish the shock when stocks began to plunge in earnest. Breakingviews lays out a fictional account of how the good times came to an end.
Xi passes up his chance to play Santa 18 Dec 2018 In a speech to mark 40 years since China’s shift to a more market-orientated economy, the president failed to announce bold new measures and wasted a chance to offer the U.S. trade concessions. It’s a stark reminder of how far hopes have fallen for liberalisation on Xi’s watch.
Wanda takes a deft detour into Party nostalgia 18 Dec 2018 The property conglomerate said it will build a $1.7 bln “red tourism” destination, even as it sells off other theme parks. Wang Jianlin’s outfit may be shedding assets to pay back jittery creditors, but officials are the constituency he really needs to placate.
Didi will seize the wheel of a Chinese carmaker 17 Dec 2018 The $56 bln ride-hailing firm has tied up with the likes of Toyota to develop vehicles and services, as lines between tech firms and auto manufacturers blur. Boss Cheng Wei, inspired by falling valuations in China’s car sector, will deploy Didi's $12 bln cash pile to buy a brand.
China’s economic slouch will rattle cult of Xi 17 Dec 2018 Growth will keep slowing toward 6 pct amid a muddled plan to spark private investment while protecting state dinosaurs. That might embolden subdued Beijing reformers to push back against President Xi Jinping. Expect more defaults, fewer tech crackdowns and faster market opening.
China’s social credit poses rising risk to CEOs 14 Dec 2018 Beijing’s plan to blacklist executives for misbehaviour is widely misunderstood. But it's worrisome as tensions spike. By holding CEOs accountable for their company's misdeeds, the system blurs China’s already fuzzy line between corporate and personal interests.
Chinese startups will get thrown an M&A lifeline 14 Dec 2018 Regulatory tightening and skittish investors mean many tech seedlings will struggle to raise funds in 2019. With Tencent less active, it’s a buyer’s market for the likes of Alibaba, SoftBank and Xiaomi. Enterprise tech, AI and electric cars will make for vulnerable targets.
Investors could use a bit more skepticism on trade 13 Dec 2018 Stocks have rallied after signs Beijing is giving ground on some U.S. demands, including cutting tariffs and opening markets. Yet America's hawks won’t be wooed by skin-deep changes and tensions extend broadly, including to Chinese hacking. Any truce could easily be tripped up.
Anta deal enters arena of extreme financial sports 13 Dec 2018 Instead of a straightforward acquisition, the Chinese company structured a $5.2 bln LBO of Finland’s Amer. Partners like Lululemon’s founder may help accelerate sales of workout apparel and Salomon skis, but hefty debt also implies a risky race for private equity-style returns.
China’s murky moves hand Trump more ammo 13 Dec 2018 Ottawa has lost contact with another citizen after Beijing detained an ex-diplomat. It will be considered retaliation for the arrest of Huawei’s CFO. Despite other concessions, such tactics stand to alienate China scholars, embolden U.S. hardliners and make trade peace harder.