Naspers selldown prolongs Tencent dependence 22 Mar 2018 The South African group is offloading shares worth up to $11 bln in the Chinese giant. But it’s keeping the remaining 31 pct for at least three years, and will invest the proceeds. Shareholders have little reason to give it any more credit for its highly profitable Tencent bet.
China’s 5G ambition is China Mobile’s punishment 22 Mar 2018 The country's biggest wireless group grew earnings 5 pct in 2017. This year will be tougher. Beijing wants the carrier to deliver a world-beating, ultra-fast network in a jiffy, and sell access cheaply. That will be tough on shareholders, but the state-owned group has no choice.
Chinese drone giant DJI charts a risky flight path 22 Mar 2018 The world’s top maker of unmanned aircraft is raising money at a $15 bln valuation, Reuters says. Sales are soaring and DJI has a commanding market lead. Given drones’ data-gathering ability and military potential, though, DJI could easily hit turbulence in major foreign markets.
How Washington could really fix trade with China 22 Mar 2018 President Trump is rolling out tariffs and wants a $100 bln cut to the deficit. Yet Beijing’s import-substitution plans, forced tech transfers and IP policy are the real problems. By ditching them China would justify a truce, and reinforce its claim to free-trade leadership.
Hadas: Taking on the Chinese new world order 21 Mar 2018 The People’s Republic lacks the political and cultural appeal to supplant the U.S. as all-round hegemon. Even so, it could soon set many global economic standards. The right response is cognitive empathy and careful choice of battles. Western countries too often choose wrong.
Vivendi discovers quitters can be winners 21 Mar 2018 Vincent Bolloré’s media group has made a capital gain of 153 pct by selling its stake in Ubisoft, which he had long coveted. The restraint is laudable. If only he could exit as easily from an investment in Telecom Italia, where he is stuck with a paper loss and angry investors.
Tencent wisely prepares for post-“Kings” era 21 Mar 2018 Hits like "Honour of Kings" powered another blockbuster quarter for the $565 bln web titan. Yet Tencent's incredible run in online games may tail off, as overall market growth in China slows. Pushing into videos and music is vital, despite high upfront costs and distant returns.
Daimler’s creepy Chinese suitor scrubs up well 21 Mar 2018 Geely’s earnings doubled to $1.7 billion in 2017, as its SUVs flew off the lots. Chairman Li Shufu’s surprise stake-building ruffled feathers in Germany. But Li’s company is trouncing Daimler’s current local partner, BAIC. That might in time prompt a rethink in Stuttgart.
Asia’s banks leave room for debt funds to thrive 21 Mar 2018 Traditional lenders neglect many smaller borrowers in the region. But while they are weighed down by bad loans and tough regulation, that creates a gap for new providers. Private debt funds are benefiting from limited competition and better bankruptcy regimes too.
Foreign banks find silver lining to U.S. clouds 20 Mar 2018 Congress isn’t handing the same regulatory relief to the stateside businesses of HSBC and others as it is to midsize domestic lenders. But Washington’s shift to more tailored regulations for the industry should at least give embattled foreign banks a bit of a break.
China’s regulatory mega-merger howls for synergies 20 Mar 2018 Uniting banking and insurance oversight while consolidating the work of other ministries should relieve burdens Beijing puts on private enterprise. Big layoffs would be an important next step for the new regime. Idle paper-pushers have grown too fond of mindless crackdowns.
D.C. subway could ride Hong Kong’s MTR 20 Mar 2018 The Washington Metro's equipment and safety woes are a smoking symbol of U.S. infrastructure ineptitude. Market-based fixes would be wise. Other cities have hired Hong Kong's mass-transit provider for help, but its property and punctuality playbook also may be replicable.
China’s new central banker is a gesture to U.S. 19 Mar 2018 Vice Governor Yi Gang was a long shot due to prejudice against "sea turtles", or Chinese with overseas experience. But as well as a reformer, Beijing wanted someone who could reassure foreign investors. Yi is both. The financial bureaucracy needs more like him.
Viewsroom: How long should a leader lead? 16 Mar 2018 China’s President Xi Jinping can now stay in power for life. Goldman Sachs CEO Lloyd Blankfein seems ready to retire after 12 years at the top. Yet five years may be the ideal length of service. Breakingviews columnists discuss the limitations to limitless rule.
China’s corporate-exposé programme jumps the shark 16 Mar 2018 A popular consumer-rights show fell flat targeting VW again and small bike-sharing startups. State broadcaster CCTV's yearly investigations once scared CEOs and even knocked their share prices. After helping deliver the message on quality control, "3.15" is no longer must-see TV.
Asian defence firms can exploit local insecurities 16 Mar 2018 Beijing is cranking up military spending and other regional governments are gunning up as the U.S. security umbrella frays. Manufacturers like Korea Aerospace, Japan’s Mitsubishi Heavy and even China's AVIC are ready to take a bigger bite of a $160 billion regional weapons market.
Asia may reward private equity’s patient capital 15 Mar 2018 After years of wrestling with the region's founding families and companies, the buyout model is paying off, new research from Bain suggests. Deals are pricey, but getting bigger. If more like Toshiba and GLP come along, Asia itself could turn into a solid long-term investment.
China’s lithium trouble in Chile hints at more 15 Mar 2018 A government agency wants to block Tianqi Lithium's bid for a stake in $13 bln rival SQM, arguing the market is too concentrated. China seldom gets pushback in resources M&A. Beijing can expect more potholes as it tightens its grip on ingredients for electric vehicle batteries.
China and U.S. trade places in 5G space race 14 Mar 2018 America is nudging Qualcomm into the role of a national tech champion. China is a potent rival, and has pushed home champs Huawei and ZTE into global leaders. The trouble is that Beijing is expert at bending firms to its will, while Washington is grappling to define its new role.
Prudential breakup is only a partial solution 14 Mar 2018 The global insurer is to demerge its European operations into a separate UK-listed arm. That could help unwind a discount to the probable sum of its parts but carries costs as well. Pru investors might have been better served by a sale, or an unpicking of the U.S. and Asian arms too.