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.
Chinese mega-fund is the last thing tech needs 3 Jul 2018 A state-owned enterprise is working with one of SoftBank’s partners on a $15 bln answer to the Vision Fund. Deploying huge sums wisely is hard, even if you have SoftBank’s track record. This could further inflate valuations, and stoke fresh subsidy battles among startups.
China’s renewable giants can live without handouts 29 Jun 2018 Authorities are pulling state subsidies for solar and wind companies. The shake-out recalls earlier crises, which claimed stars like Suntech. Now, however, cheaper technology and better supporting infrastructure give clean energy champions a chance to thrive on their own.
Viewsroom: Trump goes hog wild on trade 28 Jun 2018 The U.S. president rejected hard-liners’ calls to ban China investing in sensitive U.S. tech. Yet he’s pushing for tariffs that could cost carmakers $45 bln and is livid Harley-Davidson will no longer make EU-bound bikes in the States. Plus: tapping China’s shale reserves.
Baidu’s $1 bln buyback is too little or too much 28 Jun 2018 The $85 bln Chinese web giant has failed to impress with its repurchase plan. The amount wasn't big enough to excite investors and in any event, the search engine operator is supposed to be focused on turning into an AI champion. It has better things to do with the cash.
Chinese used-car sale fails timing test 28 Jun 2018 Online marketplace Uxin has halved the size of its U.S. float. A hefty lending business may be to blame, but its worst offense is probably picking a moment when regulatory uncertainty is already battering Chinese tech stocks. Rivals waiting in the IPO queue should take note.
Softer U.S. China plan is no comfort for investors 27 Jun 2018 President Donald Trump rationally chose to use national-security deal reviews to restrict Chinese investment. It’s a win for his Treasury secretary over trade hardliners. But the review body is opaque, mixed messages have confused markets, and Trump still wants auto tariffs.
China’s homegrown shale is worth the bother 27 Jun 2018 The People’s Republic produced a fraction of U.S. shale gas output in 2017. Terrain issues, deep wells and limited data explain why, yet better domestic technology and state support are pushing production up. With trade tensions rising, Beijing's costly hedge looks sensible.
China dims chances to shine in Asia’s cloud 27 Jun 2018 Demand is rising for remote data services across the region, including from proliferating startups. Chinese vendors such as Alibaba are best placed to challenge the likes of Amazon. Beijing's push for "internet sovereignty," though, may impede expansion, even by local champions.
China’s $2 bln electric car rescue is an odd turn 26 Jun 2018 A subsidiary of property giant Evergrande has agreed to bail out a troubled U.S.-based Tesla challenger. Faraday Future’s Chinese founder Jia Yueting gets breathing space, but why Chinese or U.S. regulators would clear this deal is a puzzle. Investors may be celebrating too soon.
Diageo could use a chaser as it runs up China tab 26 Jun 2018 The British booze giant wants to spend some $900 mln to own a majority of Sichuan Swellfun. A rally in baijiu stocks means Diageo is buying high again. Absolute control offers defensive value, but a broader strategy will be equally important against $150 bln Kweichow Moutai.
Chinese bank IPO seeks to emulate its tech clients 26 Jun 2018 China Renaissance is preparing to go public just as Meituan Dianping and other new-economy titans do the same. The advisory shop’s slow revenue growth and small bottom line make a mooted $5 bln valuation seem punchy. Boss Fan Bao will be counting on an investment halo effect.
China’s gentle German auto bid may work too well 25 Jun 2018 The Wang family, owners of a Chinese car parts supplier, made an $882 mln offer for headrest maker Grammer. A pledge to save jobs and the buyer’s size make a full takeover tricky. Yet shareholders wary of the increasingly messy governance probably won’t want to stick around.
Xiaomi super-syndicate lifts noise-to-signal ratio 25 Jun 2018 The Chinese handset-maker picked 23 banks for its $6 bln Hong Kong IPO. Having so many hangers-on jostling for $76 mln of fees could make it hard to gauge demand. That has tripped up previous listings and is unhelpful for a debut that has already had to dial down its exuberance.
Jack-of-all-apps Meituan masters few for IPO 25 Jun 2018 The unprofitable Chinese tech firm revealed in its Hong Kong debut plans that food delivery, travel and a handful of other areas account for over 90 pct of revenue. To justify a possible $60 bln valuation, investors will have to believe it can succeed in more cutthroat markets.