CalPERS has good reason to recruit from Beijing 20 Sep 2018 The $350 bln pension fund may hire a manager of China’s forex reserves as its next investment boss. His China knowledge would be a plus. Nativists may howl. But Ben Meng trained on Wall Street and ran asset allocation at CalPERS. That’s what makes him a good pick for the job.
Jack Ma’s American dream clashes with China First 20 Sep 2018 Alibaba’s retiring founder rescinded a promise to create 1 mln U.S. jobs. He blamed tariff tensions, but Kroger and other foreign brands have not had a level playing field on the global Tmall site. Unless that changes, the company will be more of a trade problem than solution.
Opportunism rewards China’s secretive deal giant 20 Sep 2018 Hillhouse has raised over $10 bln for its latest private equity fund, Asia’s largest. It will invest in mature companies and startups, an unusual strategy but suitable for a region where buyouts are scant. Zhang Lei’s returns validate a model rivals are adopting.
Banks give China’s web lenders a second life 19 Sep 2018 Investors are fleeing the country's $200 bln peer-to-peer lending sector, as Beijing steps up its crackdown. The squeeze has pushed many outfits like LexinFintech to seek more funding from banks. Margins will suffer, but it's a small price to pay for growth.
Investors can ignore glimmers of China trade hope 18 Sep 2018 The latest round of U.S. tariffs on $200 bln of its goods, and China’s response, could have been worse. That buoyed markets. But investors are missing the bigger picture. Talks and hearings haven’t stopped things getting to this point, and they are likely to escalate further.
Naspers takes first step to shrinking Tencent gap 18 Sep 2018 The South African group is valued at a hefty discount to its $120 bln stake in the Chinese internet giant. Floating its African TV unit should therefore provide some relief to frustrated investors. To unlock more value, though, Naspers may need to shed its remaining operations.
Trump’s China tariff weapons are getting blunter 17 Sep 2018 The U.S. administration is set to move forward with duties on another $200 bln of imports. Initially, it deftly avoided consumer goods. The expanded list, though, is more policy sledgehammer than scalpel. The pain will be felt by American households and Chinese exporters alike.
Chancellor: Lehman’s easy money extends to China 17 Sep 2018 The last in a series of essays marking the 10th anniversary of the crisis argues the ultralow rates that inflated assets and led to widespread capital misallocation, wealth inequality, financial instability and other risks in advanced economies are even more evident in China.
Nio zooms from carmaker to tech star 14 Sep 2018 China’s answer to Tesla reversed out of a dismal NYSE debut as its shares jumped 76 pct in their second day of trading. That imputes a $13 bln market cap that values Nio less like a manufacturer and more like an internet darling. Production figures make it hard to justify.
China investors coming to terms with changed world 14 Sep 2018 The tone at this year’s CLSA powwow in Hong Kong was notably reserved as attendees wrestled with trade tensions, a cooling economy and the 20 pct fall in Shanghai stocks. General pessimism seems overdone, but the Asia-focused financial community senses a new normal taking hold.
Meituan Dianping feeds into Chinese tech fears 13 Sep 2018 The Tencent-backed super-app owner raised over $4 bln in its IPO. Big fund managers could scarcely afford not to buy shares, but mom and pop investors were less enthusiastic than for other recent market debuts in the sector. It’s a good indication of waning investor appetites.
Biotech starts Phase II Hong Kong market trial 13 Sep 2018 Diabetes drug developer Hua priced its shares at the bottom of the range, and halved the deal size. After peer Ascletis debuted last month to kick off an expected wave of IPOs from the sector, its value fell 50 pct. The success rate for this big experiment may be low for a while.
Chinese investment bank IPO flaunts tech conflicts 13 Sep 2018 Alibaba-affiliated Ant Financial has been lined up as a cornerstone investor in China Renaissance. Fan Bao’s boutique built its business advising JD and is among the last with loyalties to Jack Ma’s other big rival, Tencent. The knotty relationships potentially spell trouble.
Beijing’s confused tax message will strain growth 12 Sep 2018 A fiscal shake-up is set to slash personal taxes and leave China's workers with nearly $50 bln more to spend. Companies, though, may need to start paying a lot more social charges, raising their costs. That has left officials scrambling to avoid a fall in corporate investment.
Chinese $5 bln winter sports bid is hard to beat 11 Sep 2018 Fujian-based Anta has approached Finnish ski-wear maker Amer. The offer values the group at a hefty 17 times EBITDA. Anta’s need to fend off U.S. peers in its home turf suggests it will pay more than any rival. Still, the target’s share price suggests investors aren’t convinced.
Didi falls way behind Uber on road to IPO 11 Sep 2018 Both burn heaps of cash, but new figures reveal that the $56 bln Chinese app pockets just two cents of every rider dollar. For $72 bln Uber, the roughly equal sum after subsidies is 23 cents. Differences are getting clearer even if neither looks ready to ride onto public markets.
Chinese Tesla’s $1.3 bln IPO revs up too fast 11 Sep 2018 Electric-car maker Nio has a rich price tag to match its premium branding. Under the bonnet, though, it looks less shiny. The group combines an opaque legal structure favoured by tech giants with dependence on a local auto partner. Sales are still nascent, and rivals abound.
Volvo’s IPO problems go beyond brewing trade war 10 Sep 2018 The carmaker’s Chinese owner has paused a float worth up to $30 bln. Even without America’s tariff antics, that price tag would have been far too high. Investors are unconvinced old-school auto groups will get a return for their spending on electric and autonomous cars.
Jack Ma’s exit plan just raises more questions 10 Sep 2018 Alibaba says CEO Daniel Zhang will succeed the $420 bln group's co-founder as chairman in 2019. Planning ahead is laudable, but the sketchy blueprint, after a baffling interview, leaves worries over the top job and Ma's influence unanswered. It's one step forward, two steps back.
Jack Ma’s next moves will instruct China tech 8 Sep 2018 The charismatic co-founder of Alibaba says he plans to retire. It’s a sign of the $420 bln company’s maturity that others are ready to step up, unlike at rivals like scandal-hit JD. But he will still wield huge influence. Investors will want clarity on who really holds the reins.