Hadas: Even Trump can’t make graft great again 11 Apr 2018 Resistance to corruption is evident in cases against ex-leaders of South Korea, Brazil and South Africa. Old royal privileges make no sense in modern economies. U.S. officials and the corporate elite have strayed, but rising middle classes will keep straightening out the crooked.
Solid takeover hurdle trips up Foxconn of sneakers 11 Apr 2018 Taiwanese contract footwear maker Pou Chen wanted full control of its Hong Kong affiliate Pou Sheng. The $1.4 bln deal was nixed, however, by just 4 pct of investors. There's a risk that the rigorous system can be gamed, but it commendably tilts in favour of outside shareholders.
HSBC donates top banker to China’s soft power push 11 Apr 2018 The bank created a new role sure to please Beijing: Head of Belt and Road Initiative. The job will be to coordinate efforts serving the $1 trln overseas infrastructure plan. The nomenclature will burnish HSBC's cred in China. And it may catch on with the rest of Wall Street.
Viewsroom: The biggest loser, China or the U.S.? 10 Apr 2018 A volley of words threatens a trade war between PRC leader Xi Jinping and U.S. President Donald Trump. Developing China has much at risk in fighting with the world’s largest economy. But American businesses are vulnerable too. Plus: Meituan goes all-in with local services.
Trump trade war risks European carmaker backfire 10 Apr 2018 BMW and Daimler sell a surprising number of American-made vehicles in China. Were the U.S. president’s tariff-war rhetoric to become reality, carmakers could shrink stateside production. If Trump wants to keep rather than lose jobs, he should seize Beijing’s latest olive branch.
Ant Financial’s $150 bln worth could grow further 10 Apr 2018 Its next fundraising could peg the Chinese payment giant at that eye-popping valuation. Getting there calls for art more than science. Throw out traditional methods, stitch together some comparable Western companies and throw in some adjustments, and it needn’t be a stretch.
Xi throws the trade ball back into Trump’s court 10 Apr 2018 China’s president pledged imminent market openings at a speech on Tuesday. He re-hashed plenty of old promises but dangled new items on autos and intellectual property. The opening offer is unlikely to appease U.S. hardliners, but it creates precious space for more negotiation.
Glencore’s Rusal cloud has a silver lining 9 Apr 2018 The commodity trader is nursing a hit to its 9 percent stake in the Russian miner, whose shares have halved due to U.S. sanctions. But the loss is bearable and disruption to the aluminium market and growing protectionism may end up helping CEO Ivan Glasenberg’s trading business.
Canines chase cars, except in case of eHi’s buyout 9 Apr 2018 The Chinese auto-rental agency has been a dog since its IPO in 2014. While travel is growing in the People’s Republic, that hasn’t translated into a robust business. Still, compared to similar species like Car Inc, eHi's public owners will be fortunate to exit free of bite marks.
SoftBank financially engineers banking gravy train 9 Apr 2018 An $8 bln loan backed by Alibaba shares is the latest wizardry from boss Masayoshi Son. A bevy of banks signed up for a client who has spent $750 mln on fees since 2015. The hyperactivity, ambition and assets mean SoftBank can get support for even the most fiendish of ideas.
Breakdown: China’s gift to big technology 9 Apr 2018 Beijing has unveiled plans to allow Alibaba and other offshore-listed tech giants to sell stock using depositary receipts. The move should boost their valuations and benefit investors on both sides of the Pacific – but creates a few fresh headaches too.
Review: The ultimate truth about blockchain 6 Apr 2018 The technology behind bitcoin has applications that extend far beyond the crypto-currency hype. But is it the panacea for humanity’s problems? “The Truth Machine” takes a positive view of decentralised digital ledgers, but underplays fundamental questions of safety and trust.
Carlyle uncorks a fine Australian wine deal 6 Apr 2018 The private equity firm is acquiring Accolade, maker of Hardys and other brands, for A$1 bln. Asian demand should leave ample room for growth. Higher Chinese tariffs on U.S. wine also could help. And a cheap valuation compared to rival Treasury makes it a buyout worth toasting.
U.S. companies in China prepare to be squeezed 6 Apr 2018 President Trump is aiming new tariffs at $100 bln of Chinese exports after Beijing threatened duties against U.S. products. American firms have invested over $250 bln into China in the past 25 years. Their assets are now exposed to regulatory harassment and shifting trade flows.
Chinese visitors can hit nerve tariffs don’t reach 5 Apr 2018 Levies on imports will slow the flow of TVs and medical devices into the United States. They could also thin the already-falling influx of tourists from China. America collects more from them than from all its exports of soybeans, and that number could pass $50 bln by 2022.
China brings a gun to its U.S. trade gunfight 4 Apr 2018 Beijing proposed duties on $50 bln of American exports hours after the U.S. said it would tax the same value of Chinese exports. Doing so may hit China’s economy, but that’s the point. The readiness to go toe-to-toe implies Trump’s trade war will be neither good nor easy to win.
Meituan deal sets pace in Chinese bicycle-sharing 4 Apr 2018 The food-delivering, ticket-booking, ride-sharing app is buying Mobike for $2.7 bln. Given the competitive and cash-burning realities, investors should be relieved at the sale. For rival Ofo, which just raised nearly $900 mln more from Alibaba and others, the riding gets tougher.
U.S. levies on China showcase the widget economy 4 Apr 2018 Washington wants to apply 25 pct duties to 1,300 Chinese imports. Politicians love high-tech industries, but this list is dominated by mundane products like dental tools and floor polishers. It’s a reminder of the crucial role everyday items play in economic growth.
China’s soybean trade card is difficult to play 3 Apr 2018 New tariffs target $3 billion worth of U.S. imports. But they don’t touch a big American pressure point: soybeans. This first round is a warning shot, to be sure. But retaliating against this commodity would hurt Chinese farmers and consumers, so Beijing might save it for last.
Review: China fraud will always have a sequel 30 Mar 2018 It’s hard to know whether China or the U.S. financial-services industry comes off worse in a new movie about scam companies in the People’s Republic. Both emerge looking greedy and amoral. But “The China Hustle” forgets to lay blame on another group: overly credulous investors.