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.
China’s softening on bad loans looks complacent 7 Mar 2018 The regulator is easing buffers required for problem loans, according to media reports. This is another incremental move to relieve struggling lenders and borrowers amid a shadow banking squeeze. That’s good for them, but Beijing appears too relaxed about bank balance sheets.
Ctrip may lose altitude as China travels 7 Mar 2018 The $25 bln online travel agency built a dominant position by aggressively buying small rivals. Now ones backed by giants Alibaba and Tencent are taking off in far flung cities, where tourism is booming. Ctrip's early lead looks precarious now it will have serious competition.
HNA’s Swiss airplane food IPO is far from gourmet 6 Mar 2018 The former Chinese deal machine is listing up to 65 pct of Gategroup to help ease its liquidity crunch. The maker of in-flight meals has expanded since HNA paid $1.5 bln for it in 2016. Factor in an IPO discount, though, and HNA will do well to recoup its original investment.
Beijing electric car leader runs on policy power 6 Mar 2018 A $4.5 billion backdoor listing offers the first pure play on China’s new energy auto market. Beijing Electric Vehicles leans heavily on subsidies and patronage - a precarious position as the central government reworks support for the sector. Its alliance with Daimler might help.
China’s economic targets invite promise fatigue 5 Mar 2018 More money and more credit, less tax and red tape, plus the same old 6.5 pct growth target: Beijing’s key economic conference opened with cautious tweaks to last year's playbook. Chinese promises in Davos that reform will "exceed foreign expectations" look thin already.
Chinese homecoming could fire up tech stocks 5 Mar 2018 Beijing could let Alibaba, Baidu, Tencent and others issue “Chinese depositary receipts”. A loyal local investor base is likely to further bid up the companies’ already lofty share prices. And the scheme could ruin Hong Kong’s own plans to attract banner technology listings.
JD’s ad boom is silver lining in Alibaba fight 2 Mar 2018 Costs are soaring at the $66 bln Chinese web retailer as competition with its arch-rival takes new forms. Hence a surprisingly big quarterly operating loss, which upset investors. At least JD's lucrative advertising business is growing fast, offering a welcome boost to margins.
China techie’s $47 bln trade leaves arbs in shade 2 Mar 2018 Zhou Hongyi led a $9 bln buyout of his U.S.-listed antivirus firm in 2016. Now its successor is trading in China at $56 bln. That far outstrips what most hedge funds or commodity traders achieve in years of arbitraging price gaps. Alas for copycats, this is not easy to follow.
Battery-powered IPO should be handled with care 2 Mar 2018 Ganfeng Lithium is coming late to the electric vehicle party. The Chinese miner and battery maker wants to raise at least $1 bln in Hong Kong as competition to make power cells intensifies and prices are peaking. Investors will want to know it isn't just cashing out at the top.
Advent’s UK car technology bet safer than it looks 1 Mar 2018 The private equity group is snapping up British tech firm Laird for 1.2 bln pounds including debt. Paying a 73 percent premium for a group exposed to the car sector post-Brexit sounds punchy. But Advent doesn’t need to reinvent the wheel to spruce up its undervalued target.
China’s war on tycoons intensifies 1 Mar 2018 Authorities are probing the boss of fast-growing oil trader CEFC, a respected magazine says. This comes days after regulators took over Anbang, a major insurer. CEFC shows even magnates who recently appeared untouchable are now at risk of incurring Beijing’s wrath.
Momo pairs well by swiping right on China’s Tinder 27 Feb 2018 The $7 bln social network is buying Tantan for at least $600 mln. It's yet another shift for Momo, whose original online courtship effort flopped and led it into video. Though lucrative, competition and censorship are getting stiffer. This new partner should spice things up.
Alibaba delivery deal could be tasty side dish 27 Feb 2018 The $500 bln e-commerce outfit may buy the rest of Chinese startup Ele.me, which gets meals from restaurants to homes. Simply battling rival Meituan Dianping would be costly. If it can enhance Alibaba's payments, groceries and parcels businesses, though, it makes much more sense.
Xi’s open-ended rule bodes ill for governance 26 Feb 2018 China is set to scrap presidential term limits, meaning Xi Jinping could serve as leader for life. For foreign execs and investors, the further consolidation of power means less predictable policymaking. It also raises the risk of bad decisions taken in an information vacuum.
Geely wheels Mercedes into its chop shop 26 Feb 2018 The Chinese carmaker's founder has bought a 10 pct stake in Daimler, parking it next to Volvo, Lotus, London cabs and Swedish trucks. It's another strange turn in Geely's route to global growth. This new $9 bln part will be hard to fuse onto what has otherwise been a sweet ride.
Anbang is big test of China’s non-market market 23 Feb 2018 The state seizure of the insurer looks designed to leave markets unruffled. It will probably work, since capitalist forces in China are still on a tight rein. The real impact will be subtle, as investors and foreign regulators weigh up this new hands-on approach.
Anbang seizure flips script on Chinese takeovers 23 Feb 2018 Authorities have commandeered the acquisitive insurer and prosecuted its boss. It is the boldest step yet in Beijing’s battle against financial excess, and is meant to protect policyholders and avert systemic trouble. The move may also be a worrying omen for HNA and others.