China’s Evergrande closes in on magical rebirth 7 Nov 2017 The property developer controlled by Xu Jiayin just raised another $9 bln by selling down a stake in a subsidiary. Based on the market reaction, the bold campaign to reduce debt is working. Pressure is now on, though, to complete the amazing turnaround with a Shenzhen listing.
U.S. rally, pain at home deter China tech’s return 5 Nov 2017 After a bold take-private deal last year, software maker Qihoo’s $8 bln backdoor listing has hit a regulatory snag. Meanwhile, shares of U.S.-listed Chinese outfits are outperforming those on the mainland. Tech firms considering an escape from New York might rethink their plans.
Chinese auto-trading IPO may prove to be a lemon 5 Nov 2017 Yixin is preparing a Hong Kong IPO. Connecting auto buyers, sellers and lenders is good business as China’s car market booms and millennials embrace debt. But a mooted value of up to $6.5 bln sounds over-revved. Even if the float goes well, the stock could later go into reverse.
Sina’s board wins Yahoo-like prize 3 Nov 2017 Bosses of the $8 bln Chinese web outfit thwarted a U.S. hedge fund's quest to add two directors. Sina's big problem is that it's worth less than its big stake in Weibo. As Yahoo laid bare, it can be hard to run a company whose value sits elsewhere – regardless of who's in charge.
Chinese markets can shake off post-party funk 3 Nov 2017 Following Beijing's twice-a-decade conclave, a so-called "congress put" that had kept trading calm in the run-up is wearing off. Investors are getting anxious again as a shadow-banking crackdown roils bond and money markets. Equities look first in line for policy reassurance.
Viewsroom: Saudi Arabia’s city of the future 2 Nov 2017 Crown Prince Mohammed bin Salman has a $500 bln plan to attract new business to the oil-dependent kingdom: build a utopian society on the Red Sea free of many of Saudi’s legal and cultural constraints. Plus: why tech and finance execs won’t be joining President Trump in Asia.
Alibaba splurges to impress China’s store owners 2 Nov 2017 Sales are soaring at Jack Ma's $477 bln e-commerce giant. But it is investing heavily in experimental supermarkets and malls that show off its payments, logistics and marketing prowess to others. It's a costly way to keep Alibaba’s technology and services revenue growing.
Wall Street loses in search for easy China wins 1 Nov 2017 Energy and industrial companies like GE will get to cozy up to Beijing’s new leaders during Trump’s Asia trip, but financial services aren't part of the group. That reflects White House desires for low-hanging deals to tout, and dim hopes for improved market access.
Tencent’s hit spinoff reads like a prologue 1 Nov 2017 China Literature’s $1.1 bln IPO priced at the top of the range. That could encourage parent Tencent to list other units, which would both raise capital and lessen the regulatory scrutiny on some businesses. The most radical move would be floating crown jewel WeChat.
Placing new wagers may sustain Macau’s hot streak 1 Nov 2017 High-rollers flocking to the tables helped gaming revenue jump 22 pct last quarter to $8.3 bln. Everyday punters are a smarter bet, though, for Sands, Wynn and other casinos. Despite stiffer competition for such customers, their larger numbers and fatter margins improve the odds.
HNA takeover would be a gift for online also-ran 30 Oct 2017 The Chinese deal machine is in talks to buy e-commerce outfit Dangdang for up to $1.5 bln. A deal would add to an already eclectic conglomerate. It is not clear HNA needs a second-rate online retailer and this would be an expensive shortcut to buying tech talent.
Ping An’s tech dreams far from assured 29 Oct 2017 China's biggest insurer reported a big leap in profit, powered in part by online users and AI initiatives. It also added 300,000 agents, suggesting old-fashioned growth in selling policies. That makes it hard to value Ping An in the same silly way as newly listed rival Zhong An.
Hong Kong’s dual-class plans go from bad to worse 30 Oct 2017 Shares with weighted voting rights could be heading for Hong Kong’s main board, says SCMP. A prior controversial plan proposed to insulate the wider market from governance headaches by hiving such stocks off in a separate venue. This latest idea is the greater of two evils.
China’s Belt and Road plan builds bridge to Canada 27 Oct 2017 Aecon is being sold to a Beijing construction titan for C$1.5 bln. The 42 pct premium should satisfy the target's investors and Canadian officials have little to squawk about. It's also a deal that can bypass China's M&A crackdown as it befits an infrastructure drive.
Review: Hong Kong’s recipe for more instability 27 Oct 2017 Three short books analyse the city’s politics after 20 years in Chinese hands. Freedom sets it apart from the mainland, but without full democracy to match Hong Kongers rely on protest instead. An ineffective executive and an implacable Beijing turn this into a combustible mix.
China’s Baidu stumbles in getting back to basics 27 Oct 2017 Investors wiped $10 bln from the web giant’s market value after it forecast disappointing sales for the rest of 2017. Baidu has cut costs and narrowed its focus to revitalise its scandal-hit search business. Unfortunately that has yet to translate into less volatile results.
Viewsroom: China’s leader cements his power 26 Oct 2017 President Xi Jinping emerged stronger at the end of China’s Communist Party Congress. His desire to consolidate control however may not help his plans to keep the Middle Kingdom’s economic engine humming. Plus: U.S. telecom firms try again to dial up a merger.
Beijing’s dollar bonds seek to reprice China risk 26 Oct 2017 A $2 bln sovereign dollar bond sale is the country’s first since 2004. Despite rating downgrades, the two-part deal is priced aggressively, with slim premiums to U.S. Treasuries. Local banks can guarantee demand, which could artificially cut borrowing costs for Chinese issuers.
China’s bike-share firms must switch gears in U.S. 25 Oct 2017 Mobike and Ofo, the People’s Republic’s two biggest dockless cycle-share startups, are cruising into American cities. Aggressive expansion makes sense in this winner-take-most market. But city officials and local rivals may force them to hit the brakes in unfamiliar ways.
China’s autocracy puts end to reform illusions 25 Oct 2017 As China's Communist Party tightens its grip, Western hopes that rising incomes would produce more economic and political opening look like wishful thinking. Delusions about inevitable reform are best set aside. For foreign capital this "new era" looks riskier than the last.