Hong Kong stock-block will annoy all around 16 Jul 2018 Beijing won’t let investors trade in foreign issues or ones with super-voting shares on the HKEX. Xiaomi took an early hit and Hong Kong will hold less appeal for the likes of Aramco and tech firms. What may be a kneejerk reaction to reeling Chinese markets also could do damage.
China’s flirtation with Europe is a tease 13 Jul 2018 Beijing is wooing continental leaders like Germany’s Angela Merkel, hoping for allies against Trump. Despite some common interests, Brussels is sceptical of China’s market opening gestures, plus it still needs U.S. security guarantees. Sweet free trade nothings won’t cut it.
Silk Road speed bumps show limit of yuan diplomacy 13 Jul 2018 There is trouble along Beijing's trillion-dollar trade route. From the Maldives to Malaysia, politicians are calling to review deals, fretting over debt and dependence. Domestic politics are driving the backlash, making it tough to turn economic might into lasting influence.
Viewsroom: Trump’s Supreme Court pick 12 Jul 2018 The U.S. president has chosen a friend of big business in Brett Kavanaugh. But he faces bigger questions from Senate democrats about executive power. Plus: Commodity giant Glencore faces mounting risks in Washington, and what’s behind the Chinese yuan’s downward slide.
Trade war rouses U.S. from tax-cut stupor 11 Jul 2018 U.S. levies on another $200 bln in Chinese goods are causing Republican lawmakers and companies to sound the alarm. They could have done so sooner – but were drunk on the president’s tax-cut plan. The timing will make it hard to stop what’s already gone too far.
Chinese sportswear may be hard turf to defend 11 Jul 2018 As Nike and Adidas duke it out at the World Cup in Russia, a bigger matchup looms. China’s market for sneakers and kit is growing quickly, and local rivals like $14 bln ANTA have had a good run. Younger and richer consumers, though, could start giving foreign brands an advantage.
Trade war corporate welfare queues will get long 11 Jul 2018 Team Trump is targeting another $200 bln of Chinese goods, from fish to chemicals, for 10 pct tariffs. Both countries are also trying to reassure businesses with talk of exemptions and subsidies. That just leads to more unhealthy and lasting government influence over industry.
China’s share slump spotlights super-regulator 11 Jul 2018 Exchanges rebounded briefly on reports Beijing might delay investment restrictions due to market ructions. A new regulatory structure put in place after a botched response to the 2015 crash hasn’t overreacted to this year’s 16 pct slump yet. But big problems haven’t been fixed.
“Back to the Future” trade war lacks Reagan vision 10 Jul 2018 Trump is using 1980s tactics to hit China with tariffs. The Gipper used similar levies to curb Japanese chips, computers and TVs. But Reagan also helped kick off global talks that created the WTO. Today’s White House wields only sticks, not carrots that might boost U.S. exports.
CATL’s overseas charge has lasting power 10 Jul 2018 The Chinese battery champion will build its first factory abroad in Germany after scoring a $5 bln supply deal with BMW. It establishes a base in a promising market for electric vehicles. The newly listed company is cementing its lead over compatriot Warren Buffett-backed BYD.
Tesla can beat Ford out of China trade pits 9 Jul 2018 Absorbing new tariffs on U.S. cars would probably have killed any chance of CEO Elon Musk hitting his goal of a profitable second half. Ford can soak them up. Strategically, the balance is different: Ford needs new ideas, while Tesla just has to get on with building a factory.
Xiaomi IPO will punish bankers twice 9 Jul 2018 The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.
China’s offshore debt crackdown adds outflow risk 9 Jul 2018 Officials are curbing dollar bond issuance as the yuan weakens. Regulation of the $775 bln market has always been haphazard. This move looks reactive and clumsy. It will put more downward pressure on a faltering currency, and could inadvertently encourage capital leakage.
Rules of the road crystallizing for Chinese M&A 9 Jul 2018 Trade tensions and nationalism have tripped up transactions involving chipmakers Broadcom, Qualcomm and NXP, among others. Even as Beijing and Washington spar, though, dealmakers are adapting by scanning different regions or accepting smaller stakes and tougher conditions.
U.S.-China trade war to be fought in the trenches 6 Jul 2018 The first round of tariffs hits Friday. Trump says they might come to cover over $500 billion of exports. Beijing will retaliate. This will hit exporters, then deter investment, impede research, and twist reform. Rising mutual distrust has resulted in tragedy.
China’s Fosun gets into bed with its boss 6 Jul 2018 The $16 bln conglomerate is adding matchmaking to its "happiness ecosystem", buying a dating service from Chairman Guo Guangchang for $600 mln. Baihe Jiayuan is a big brand, but sector growth is slowing and the price looks steep. This insider deal is unlikely to charm investors.
Chinese markets have much to fear from fear itself 4 Jul 2018 A stronger dollar largely accounts for a recent 6 pct fall in the yuan, with the central bank managing the pace. Tumbling Chinese stocks can be weathered, and some defaults are healthy. Patience is not one of President Xi’s virtues, though, and panicked intervention is a risk.
WTO pullout is self-fulfilling prophecy for Trump 3 Jul 2018 About 70 pct of cases filed this year at the world body target new U.S. tariffs. The White House also isn’t strongly pursuing disputes. Tilting America’s winning record to losses would bolster WTO rancor. Congress can stop a withdrawal but anti-trade rhetoric still resonates.
U.S. veto on China Mobile could grow wider 3 Jul 2018 The Trump administration wants to deny the $180 bln carrier’s longstanding bid to offer overseas calls from America. The financial impact will be negligible. But this could herald a broader U.S. campaign to weaken Beijing’s control over Chinese people and companies abroad.
Deutsche reboot looks incompatible with China tech 3 Jul 2018 New boss Christian Sewing is scaling back in capital-intensive businesses like bond trading and serving hedge funds. That creates a challenge: how to hold onto rainmakers in less problematic areas, like a revamped Asia tech team which is winning deals with Ant and Tencent.