Chinese web giant Tencent gets U.S. tax bonus 15 Jan 2018 U.S. investors snapped up more than half of a $5 billion bond sale by Tencent. That's partly thanks to Republican tax cuts, which may result in fewer bonds from American tech stalwarts. That helps the gaming and social media outfit to lock in cheap overseas funding.
New push for global yuan fuels fresh appreciation 15 Jan 2018 China is restarting the project to take its currency global after years of neglect. European central banks are helping by including it in their reserves. Throw in a stronger euro, and a seemingly relaxed Beijing, and the yuan could easily strengthen further.
HNA’s hard job: put the M&A machine into reverse 12 Jan 2018 The acquisitive Chinese group has been buffeted by regulatory setbacks and signs of financial stress. Now trade in two key listed units in China is halted, suggesting a corporate reshuffle could be looming. HNA will find shrinking back to health tougher than breakneck growth.
Viewsroom: China’s dubious shot across U.S. bow 11 Jan 2018 Talk of buying fewer of Uncle Sam’s bonds may be Beijing’s way of showing some teeth as the Trump administration mulls import tariffs. But as with other retaliatory trade tactics, it would hurt China too. Plus, why Nelson Peltz doesn’t want to be called an activist investor.
China is stuck in a petroleum Catch-22 11 Jan 2018 A yuan crude futures contract could finally launch in Shanghai early this year, as the world’s largest importer tries to shake up a market dominated by London and New York. A new benchmark is within reach, but clear-cut success will require the unthinkable: embracing the dollar.
Trump will be party pooper-in-chief at Davos 10 Jan 2018 The U.S. president’s “America First” agenda is the antithesis of the Swiss conflab’s global ethos. His visit to the mountain resort may be a bid for reconciliation, or a pitch for strongman status. Either way, his presence is a stark rebuke to Davos elites who got him badly wrong.
Beijing’s wrath may sink Broadcom’s $105 bln deal 10 Jan 2018 China's handset-makers are rightly worried about its bid for rival chipmaker Qualcomm. At the least, Broadcom will probably need to make promises on pricing. Given recent U.S. hostility towards Chinese companies, even the nuclear option of an outright veto cannot be ruled out.
China’s U.S debt talk reveals weak trade-war hand 10 Jan 2018 Beijing may slow or halt Treasuries purchases. It’s the biggest holder of Uncle Sam’s liabilities, so in theory the People’s Republic has leverage as the White House mulls imposing tariffs. As with other measures China could take, though, it would cause damage at home.
Jack Ma opens floodgate on Hong Kong tech listings 10 Jan 2018 The Alibaba founder could list parts of his e-commerce firm in Hong Kong. That suggests the exchange’s proposals to permit dual-class shares and more secondary listings are having their desired effect. The implications for local corporate governance will be ugly.
Mobike veers cautiously into Didi’s taxi lane 8 Jan 2018 The Chinese bike-sharing unicorn has secured an investment from carmaker FAW as part of a wider push to expand into shared automobiles. It's an effort to rattle rival Ofo's alliance with $56 bln ride-hailing giant Didi. Catching up will be a slog, but may be worth the effort.
Wanda’s sports spinoff would help trim flab 5 Jan 2018 The Chinese conglomerate could float sports assets acquired in haste, including a sports marketer and a triathlon organiser, Reuters says. Fresh funds could help cover offshore debts. Streamlining might also persuade regulators to let the main property unit list onshore.
Beijing will allow a local government default 5 Jan 2018 Despite a long campaign to rein in rampant off-balance sheet borrowing by cash-strapped regional authorities, the practice remains pervasive. Next year officials will tolerate the once-unthinkable: a bond default. That will rattle fixed-income investors onshore and off.
Electric cars will catch up with gas guzzlers 5 Jan 2018 Plans to ban dirty vehicles are stoking investment in clean transport, driving down costs. Consumers could find battery power as cheap as combustion engines for the first time in 2018. But it will be harder to drive up profitability. Automakers will struggle as margins tighten.
Oil bulls look to Trump rather than Iran protests 4 Jan 2018 A tightening global balance of supply and demand for crude means geopolitical shocks could push up prices. Anti-government protests in Iran seem unlikely to disrupt production. A looming U.S. decision on whether to revisit sanctions could have a bigger impact.
Didi provides glimpse into its global playbook 4 Jan 2018 In its first big step abroad, the Chinese ride-hailing powerhouse is paying $600 mln for control of Brazilian peer 99. The buddy-up first and buy later approach could mean Grab, Lyft or Ola will be next. It also suggests Didi-backer SoftBank may have a master plan, after all.
A 400 pct Chinese broker premium begs explanation 4 Jan 2018 Fog is thickening around a missing tycoon’s embattled empire. One holding of Xiao Jianhua’s Tomorrow Holdings, Hengtou Securities, said nine owners will sell a stake to CITIC Guoan for $1.4 bln, or five times the market price. Such mysteries undermine Hong Kong's investor appeal.
Hong Kong will start atoning for missing Alibaba 4 Jan 2018 The city lost many Chinese tech listings to New York. But it is building a critical mass of stocks, analysts and investors, and is poised to weaken governance rules in favour of founders. That sets the stage for the IPOs of rising stars Didi, Toutiao and Meituan-Dianping.
Tech salad will come with a side of SLAW in 2018 3 Jan 2018 Spotify, Lyft, Airbnb and WeWork are all potentially going public in the coming year. None of them may ever match the scale of a FAANG or BAT. But each is disruptive in its own way, and offers investors a unique play on the future of cities, mobility, work and play. Bon appetit!
Ant’s U.S. march may require China-like steps 3 Jan 2018 Jack Ma's payments business will have to rethink its global strategy after its MoneyGram deal was vetoed. Even an alliance is at risk if rival Euronet bids anew. Instead, just as U.S. companies have bought small stakes in China, Ant could do the same with Western Union or PayPal.
China’s small-fry banks will start merging in 2018 3 Jan 2018 Squeezed by tighter money, cooling property and anxious regulators, the country’s 4,399 lenders will begin to consolidate. Some deals will boost efficiency; others will force crummy assets into healthier banks. For foreign buyers, the challenge is telling which is which.