Signals are good for China Tower IPO 7 Aug 2017 The company that owns nearly all of China’s telecom towers is preparing a Hong Kong listing of up to $10 bln. Investors like the industry’s stability and high yields, while China Tower also boasts some growth potential. At the right price, this should get a good reception.
China charges into burgeoning bitcoin battle 4 Aug 2017 The crypto-currency has been cloned, thanks to support from China's massive mining community. Although local trade has been suppressed by regulators, the People's Republic has managed to increase its influence over bitcoin's development by running the machines behind the market.
Sydney meets Shandong in $2.5 bln share sale 4 Aug 2017 Yancoal is raising more than 10 times its own market cap to buy Rio Tinto’s coal unit. To get this done, the indebted small-cap had to bring in some unusual underwriters. The result is a novel blend of Australian public-company process and Chinese state capitalism.
U.S.-China spat casts doubt on MoneyGram payoff 3 Aug 2017 Shares in the U.S. payments firm trade 12 pct below an offer from Jack Ma’s Ant Financial. Markets are now pricing in a sizeable risk that the Trump administration will stymie the $1.2 bln deal. That would send a nasty message to Beijing, at the expense of MoneyGram investors.
Search engine IPO depends on Tencent for results 2 Aug 2017 China’s Sogou is planning a U.S. listing valuing it at up to $5 bln. The firm is a distant second in mobile search behind Baidu. Sogou, or “search dog”, will have to work like one to convince investors its relationship with part-owner Tencent can justify that valuation.
Macau cashes in on cheap thrills and VIP perks 1 Aug 2017 The gambling hub is enjoying a flutter this year. VIP and ordinary gamers stayed at the tables in July, lifting monthly revenues to their highest level since January 2015. If China's economy cooperates, and planned capacity comes on line, the good times will roll on.
China’s trophy case could become discount rack 1 Aug 2017 Big dealmakers such as Anbang and Wanda might have to hold a yard sale. HNA is still keen on ousted White House adviser Anthony Scaramucci's firm SkyBridge, but it too may need to cut back. Bargain-hunters will benefit from any Chinese selling spree.
Fancy fast food makers eye China’s dining upgrade 1 Aug 2017 Changing consumer appetites in the world's largest fast food market are attracting attention from premium brands like Shake Shack – possibly at the expense of incumbents like McDonald's. The opportunity looks tasty, but competition and quality control could give them heartburn.
Hutchison Telecom’s sell-off is a risky call 31 Jul 2017 The Li Ka-shing-backed firm is selling its fixed-line arm for $1.9 bln. The market undervalued the unit and a better-than-expected price reflects keen competition for Asian buyouts. Yet the remaining business will be painfully dependent on Hong Kong’s wobbly mobile market.
Apple sets course for China policy minefield 31 Jul 2017 The U.S. tech giant has minted money in China for years thanks to the iPhone. But slowing sales are forcing it to turn to cloud and payment services. This puts Apple squarely in the sights of the hostile regulators and local rivals that helped drive off Facebook and Uber.
AIA’s new boss starts from position of strength 28 Jul 2017 Booming sales in China and Hong Kong helped the Asian life insurer report a 42 pct surge in new business. New CEO Ng Keng Hooi has a $11 bln surplus to play with. Even if he can’t run all of that down, that still leaves a lot of firepower to fund growth, deals, and dividends.
Baidu rebound buys time for reinvention 28 Jul 2017 Quarterly earnings leapt more than 80 pct at the $70 bln Chinese web giant. That shows the core search business is recovering after a nasty run-in with Beijing last year. This gives Baidu more room to focus on the future, chiefly its mobile offering and artificial intelligence.
Viewsroom: Citi lays out path to mediocrity 27 Jul 2017 CEO Mike Corbat pledged a huge earnings boost at the bank’s first investor confab in nine years. But Citi’s enduring crisis hangover will still leave it trailing most rivals. In China, HNA’s shadowy ownership may be a big problem for U.S. M&A. Plus: Google keeps clicking.
Noble turns to radical medicine 26 Jul 2017 Banks gave the stricken commodity trader a few months’ reprieve. Now its new boss is selling key energy units, writing down controversial assets and planning $1 bln more in asset sales. There is a long way to go but at least he is tackling Noble’s pressing liquidity problem.
Hong Kong’s IPO naming and shaming hits new low 25 Jul 2017 AMTD Strategic Capital had its listing application publicly rejected. That’s embarrassing for AMTD’s banks and its parent, a securities and fund-management firm backed by Morgan Stanley. The financial and reputational costs should prod other debutants and advisers to try harder.
HNA shines dim light on ownership 25 Jul 2017 A restructuring of the acquisitive Chinese conglomerate’s shareholding structure is meant to allay concerns about opacity. It loses two mysterious investors and will now be majority owned by a pair of charities. More clarity is welcome, but this web still looks pretty tangled.
Grab rides two trends to $6 bln valuation 24 Jul 2017 The taxi app is raising $2.5 bln in Southeast Asia’s biggest fundraising. It helps that Japan’s SoftBank is investing in unicorns everywhere and that Didi, like China's other tech giants, is chasing growth nearby. The funds will make it harder for Uber to conquer the region.
Beijing sours on private-sector independence 24 Jul 2017 Bureaucrats who once encouraged foreign takeovers are now second-guessing private deals by Dalian Wanda, HNA and others. Tech stars like Tencent are being force-fed shares in state dinosaurs. The Communist Party has grown overconfident in its ability to micro-manage.
IPO baggage weighs heavier on ZTO 21 Jul 2017 A U.S. pension fund is suing the Chinese courier and its underwriters for inflating profit margins in its $1.4 bln New York debut last year. Shares have traded poorly since, and the company faces rising costs and fierce competition. Winning over sceptics will be even harder now.
China’s new carbon market faces pricing pratfall 21 Jul 2017 China is about to launch the world’s biggest carbon market, after sharply reducing its scope to a few core sectors. The scheme can help foster cleaner, leaner industry. But success is likely to be limited by dodgy data, distorted pricing, and Beijing's distrust of market forces.