Hong Kong’s new leader clears first hurdle 11 Oct 2017 In her maiden policy address, Carrie Lam unveiled lower taxes for small firms and more affordable housing for the middle class. Her proposals mark a decent start for tackling the city’s economic divide. If she follows through, Lam could earn support tackling more divisive issues.
Syngenta puts Beijing’s unspoken promises to test 10 Oct 2017 The Swiss seed company’s Chinese parent and its state backers disagree over whether they stand behind its legal bills. It’s a dynamic found across China’s financial system: implicit guarantees are common, and rarely tested. The government has good reason to keep things ambiguous.
IKEA digital surrender raises flicker of IPO hope 10 Oct 2017 The Swedish furniture firm has grown through its warren-like stores and without needing external capital. Yet it now plans to sell through websites like Amazon to reach new customers. With competitive pressures growing, IKEA might also revisit its aversion to selling stock.
Breakdown: Xi and China’s leadership reshuffle 10 Oct 2017 President Xi Jinping may be China's strongest leader in decades, but reform has been slow on his watch. Some believe that if he can consolidate power at the Party Congress next week, he'll liberalise further. Four key benchmarks will help measure the strengthening of Xi's grip.
China’s oil giants brace for electric car crash 9 Oct 2017 Beijing's move against gasoline means tough times ahead for the country's oil majors. The rapid push into new energy vehicles will curb demand for imported hydrocarbons, but at the expense of state giants like Sinopec and PetroChina. It might also pressure crude prices.
Wanderlust, not shopping, drives China tourism 2.0 9 Oct 2017 More people spent China's "Golden Week" holiday on Thai beaches than in Hong Kong malls. As Chinese tourists eschew shopping for sight-seeing, offshore luxury retailers could lose custom. But as the travelling middle class spreads out, there are bound to be more winners.
Viewsroom: Building the car for the future 5 Oct 2017 Ford boss Jim Hackett’s plan to catch up with rival GM on electric and self-driving vehicles starts with $14 bln of cost cuts. China may be in pole position as it considers banning gasoline cars entirely. But plenty of factors could delay mass adoption of new technology.
More for China than London in Russian hydro IPO 5 Oct 2017 Oleg Deripaska’s En+, which controls aluminium outfit Rusal, aims to raise $1.5 bln in an LSE and Moscow listing. It touts a green model, but public investors will have little say. The cornerstone backer, a partner of the PRC group that just bought into Rosneft, may do better.
Telco banks may be consigned to fringes of finance 4 Oct 2017 Orange and Altice plan to offer banking services to capitalise on a boom in digital finance. It’s a novel solution to slowing telecom revenue growth, and similar ventures were a hit in Africa. But mobile operators are entering a crowded field, with no obvious advantage.
Ford’s clever electric van plan in China 4 Oct 2017 The U.S. carmaker is changing course in China, insiders told Reuters, as sales slow. New state policies open an opportunity for Ford to build electric commercial vehicles. That could help meet quotas - and electrify Ford SUVs. Much depends on the partner, and battery supply.
China rate cut will please all and fool only a few 2 Oct 2017 The central bank will dole out extra liquidity to lenders who help out small businesses. In reality, though, the bar is low and most banks will benefit. Given the Chinese leadership’s emphasis on cutting back debts, it’s a smart way to dress up a future liquidity injection.
Xi Jinping can’t get Chinese planes to run on time 29 Sep 2017 As millions of Chinese people set forth to travel during the "Golden Week" holiday starting Sunday, many could spend more time in the departure lounge than on the beach. Their airports are the world's most delayed, but instead of reforming airspace, Beijing prefers fiddling data.
Expect buybacks but not M&A from China’s Sina 29 Sep 2017 An activist wants the $8 bln web group to consider a sale or a merger with subsidiary Weibo. The former would never get past boss Charles Chao, and the latter is a bad idea. But Chao could compromise by expanding the board, stepping up buybacks and handing out more Weibo shares.
Hit IPO undercuts the case for new Hong Kong board 28 Sep 2017 Shares in Chinese online insurer ZhongAn soared on their debut. This deal suggests the bourse’s push for a new venue with looser standards is misguided. The city should be able to lure desirable Chinese tech listings just fine by making tweaks to the existing regime.
Trump’s new Democrat friends put China on notice 26 Sep 2017 The U.S. president touted his common ground with congressional minority leaders Chuck Schumer and Nancy Pelosi when it comes to Beijing. They talk tougher on currency manipulation and trade than some in the White House. Their chumminess could put more economic pressure on China.
Alibaba trades margins for clarity in logistics 26 Sep 2017 The tech giant is paying about $800 mln to lift its stake in logistics arm Cainiao slightly to 51 pct. Keeping the unit at arm’s length had prompted SEC scrutiny. But absorbing the capital-intensive and loss-making Cainiao into the parent’s accounts will weigh on margins.
Macau mobster’s ICO is ideal test for watchdogs 26 Sep 2017 Former gangland boss “Broken Tooth” is backing a $500 million initial coin offering, according to Hong Kong’s SCMP. The convicted money-launderer’s deal lends ammo to those calling for the suppression of new crypto-currencies. But this is a great opportunity to refine rules.
Sunac’s spending spree leaves no room for error 26 Sep 2017 Investors have rewarded the Chinese property developer’s debt-fuelled expansion. Chairman Sun Hongbin's aggressive land-grab may well pay off, especially if the sector consolidates. But as property prices cool and political risk rises, a small misstep could be life-threatening.
Unilever gets more than beauty tips from Carver 25 Sep 2017 The Pot Noodle owner is paying 2.3 billion euros for fast-growing Carver Korea, maker of “Eye Cream for Face” serums. Owners Bain Capital and Goldman Sachs pocket a hefty profit. Unilever gains access to a booming Asian market, and exposure to e-commerce and duty-free outlets.
China-backed fund’s latest chip deal looks safer 25 Sep 2017 Canyon Bridge wants to buy troubled UK firm Imagination Technologies, after President Trump stymied an earlier attempt to snap up a U.S. chipmaker. This $700 mln deal will likely set off fewer alarms. Still, the fund's murky state links might attract UK scrutiny too.