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.
Adidas catchup race has further to run 14 Mar 2018 The shoemaker’s shares have outpaced Nike and Puma during a global sportswear boom in the last three years. However, they still trade at a discount to main rivals, despite faster revenue growth and improving margins. Hitting new, higher targets should help Adidas close the gap.
Blackstone’s Schwarzman schools CIC on art of deal 14 Mar 2018 China’s sovereign wealth fund has sold its stake in the private equity firm. CIC only bagged a so-so return from its decade-long investment. For Blackstone’s founder and CEO, meanwhile, the partnership opened some lucrative doors to the world’s second-largest economy.
Qualcomm slays a lion, baits a dragon 13 Mar 2018 Having the U.S. government essentially declare it a national champion allowed the chipmaker to defend itself from rival Broadcom’s bid. But a rise in anti-foreign sentiment may hurt Qualcomm too – since it’s still waiting for China to approve its own $44 bln acquisition of NXP.
Natixis takes lower-risk route to M&A glory 13 Mar 2018 The French investment bank is spending about 100 mln euros on stakes in three boutique advisory firms including the UK’s Fenchurch. Lenders seeking to buy their way up the league tables have a poor record. But the low cost and arm’s-length management reduce the risk of an upset.
China’s AgBank gets an encouraging capital lift 13 Mar 2018 The country's third-largest bank is raising $16 billion from the Ministry of Finance and state-backed enterprises. It's the biggest move yet in Beijing's initiative to address bad loans by shoring up balance sheets. Smaller lenders may require additional financial creativity.
Chinese micro-lender’s $100 bln dream is a stretch 12 Mar 2018 Qudian’s founder CEO Min Luo will forgo his salary until the $5 bln firm tops a $100 bln valuation, bigger than backer Ant Financial. That’s unrealistic for a company trading below its New York IPO price in an industry under intense scrutiny – unless its shareholder turns buyer.
China’s iQiyi channels Netflix with a twist 12 Mar 2018 The Baidu-backed video-streaming site wants to raise at least $1.5 bln in an IPO. It's growing quickly and spending cash on new programmes for 50 mln paying customers. But iQiyi also broadcasts live events and sells ads. That makes it a tantalizing hybrid that's hard to value.
Review: The flimsy finances behind China’s miracle 9 Mar 2018 The People’s Republic has long defied the economic doom-mongers. In “China’s Great Wall of Debt”, Dinny McMahon exposes the fragility and contradictions of the country’s growth model. It’s a detailed and original reality check on the latest bout of China hype.
U.S. metal tariffs may not be biggest trade worry 8 Mar 2018 The president’s steel and aluminum levies have rattled markets and nudged his economic adviser to quit. A probe into Chinese intellectual-property policy could prove more devastating, though. It commands wide support and could inflict broad trade and investment disruption.
China courts tech and Taiwan with Foxconn IPO 9 Mar 2018 The Apple assembler is set to list a $50 bln-plus subsidiary in Shanghai. Speedy approval shows China is serious about luring tech giants onto mainland exchanges. The People’s Republic is also keen to deepen financial ties with Taiwan, even as diplomatic relations sour.
Congo digs deep hole with overhaul of mining law 8 Mar 2018 The world's top cobalt producer is right to update rules written after a ruinous war. But the dramatic shift to bring in more taxes also reneges on an earlier promised 10-year "stability clause". Unpredictable swings damage an already battered image, and put investment at risk.
Asia’s boardrooms require critical mass of women 8 Mar 2018 One fifth of firms in Hong Kong's Hang Seng Index have all-male boards but appointments of women are rising. The next task is to ensure they are present in sufficient numbers for companies to reap the full rewards of diversity. The multiplier effect applies to girl power too.
Chinese bidders find new way to collar their prey 8 Mar 2018 Geely’s boss used an “equity collar” to amass a $9 bln stake in automaker Daimler fast, and without much hard currency. HNA has done something similar at Deutsche Bank and Swiss travel retailer Dufry. Other Chinese firms could use derivatives to make their money go further.
HNA is enjoying a pleasant stay at Hilton 7 Mar 2018 The cash-strapped Chinese group bet $6.5 bln on the U.S. hotelier, using lots of borrowed money. It has now sold stock in the spun-off Park Hotels for $1.4 bln, while retaining another $7.6 bln stake. HNA has been a crazily prolific investor, but this trip was worth it.