Xi has weak pitch selling status quo to Trump 14 Mar 2017 The U.S. president will reportedly host China's Xi in April, but neither has much to bring to the table. Xi wants Trump to stick with the status quo on trade, investment and climate change. In exchange China will make friendly noises about investment and reform, but little more.
Chipmaker’s chairman short-circuits shareholders 10 Mar 2017 The man leading Cypress Semiconductor's board also helps run a Beijing-backed private equity firm that's buying a tech outfit Cypress eyed in the past. Cypress' recently departed founder now wants the chairman ousted. The governance and conflicts could fry the corporate wiring.
China gets a timely economic spring in its step 10 Mar 2017 A batch of positive data sets a good tone for the economy in 2017, easing fears of capital flight and deflation. The respite may be brief. Even so, it provides some room for Beijing to step back from firefighting, allowing it to focus on deleveraging and its ambitious restructuring plans.
Protectionism skews emerging market risk compass 9 Mar 2017 Anti-trade rhetoric is a threat to export-dependent countries. But commodity producers such as Saudi Arabia are less vulnerable than nations that play a big role in global manufacturing, like China or Thailand. The latter look more prone to market volatility than in the past.
China gives Trump cheap trade trinkets 9 Mar 2017 China looks to have fast-tracked the U.S. president's trademark applications, and its economy is going his way too. U.S. imports shot up 38 pct last month, and the yuan has firmed. There's less to the data than meets the eye, and the trademarks are trouble.
North Korea’s pressure points are hard to push 9 Mar 2017 Pyongyang's missiles and an alleged murder are vexing its few friends; China's ban on coal imports suggests a fresh desire to tame its neighbour. Old foes like the U.S. could also apply more pressure through secondary sanctions. But that may, in turn, worsen relations with China.
Stinky Chinese M&A leaves investors flush 8 Mar 2017 Two directors at Yingde Gases want a police probe into the chairman. All three plan to sell their shares to a buyout firm touting a $1.5 bln takeover. U.S. rival Air Products may offer more. It is a bizarre example of bad governance working out well for independent shareholders.
U.S. tech sanctions will rattle China’s firewall 8 Mar 2017 ZTE will plead guilty for violating U.S. trade curbs. The charges could have been more severe and an $892 mln fine is manageable. More powerful is the message it sends that the U.S. is prepared to take action against Chinese companies to rein in the likes of Iran and North Korea.
Citi dips cautious toe in China bond pool 7 Mar 2017 The U.S. bank will include Chinese bonds in existing emerging market indexes - the first major provider to do so. This is a victory for Beijing, which has struggled to lure foreign investors. It’s a low-risk diplomatic win for Citi, as the sums involved are probably small.
China has leeway to tackle local debt mountain 7 Mar 2017 Authorities say cutting the $2.2 trln local government debt pile is a 2017 priority. Past attempts failed. An improving economy gives Beijing room to address the issue, in part by boosting local tax power. Possible higher interest rates and lower land prices argue for haste.
Jack Ma casts a shadow over JD’s fintech spinoff 7 Mar 2017 Boss Richard Liu is separating the finance business valued at $7 bln out of the e-commerce group and taking a direct stake for himself. It is less controversial than when Alibaba did the same in 2011. But there are enough similarities with this cosy deal to sound an alarm.
Slower China growth plan begs for labour reform 6 Mar 2017 Beijing has set a GDP growth target for 2017 of 6.5 pct as it seeks to revive stalled reforms and cut industrial overcapacity. Yet the leadership still wants unemployment below 4.5 pct. This aggressive goal, alongside an inflexible labour policy, could create new problems.
India becomes front in global e-commerce proxy war 5 Mar 2017 Alibaba is leading a $200 mln investment into Paytm’s marketplace, creating a new Indian unicorn. That confirms the Chinese juggernaut's decision to take on Amazon, which is investing $5 bln in India. As homegrown rivals flail, tech's big boys will duke it out. Only one will win.
Seoul-Beijing feud cues Lotte to end China misery 3 Mar 2017 The South Korean retailer is under attack from Beijing for letting Seoul use its land for a defence system. Chinese state media is vowing to make life hard for the group. It's hard already. Losses in China have sparked a founding family spat. This rift is a good excuse to exit.
Macau’s hot streak depends on mainland momentum 2 Mar 2017 Gaming magnate Sheldon Adelson was right: Macau did hit bottom last year. Casino revenue in the gambling enclave keeps rising, up 18 pct last month to a two-year high. But everything hinges on China's economic health. If strains worsen, Macau's fortunes could change fast.
China bike-sharing turns into VC pileup 2 Mar 2017 Startups Mobike and ofo have raised huge sums. But a glut of venture capital sloshing around, combined with misguided state support for entrepreneurship, has attracted a parasitic swarm of competitors too. Without policy changes, investors could suffer, as could the public good.
Market delivers crazy love letter to China’s FedEx 2 Mar 2017 A rally in the newly listed firm behind SF Express makes boss Wang Wei one of China's richest men. At roughly $40 bln, his company is now worth nearly as much as Deutsche Post. That looks like an overreaction, driven by hype over e-commerce and a shortage of tradeable shares.
Berlusconi benefits from Chinese M&A own goal 1 Mar 2017 The $780 mln sale of AC Milan is the latest takeover to suffer as Middle Kingdom investors struggle to match dealmaking desires with reality. A Chinese consortium may further delay buying the soccer club, handing Italy's controversial businessman and ex-PM a much-needed boost.
Research “Big Bang” sifts losers from megastars 1 Mar 2017 Sellside firms must charge fund managers an explicit price for European securities analysis from next year. Research is already competitive - hence brokerage CLSA chopping 90 staff in the Americas. More jobs will go, even as the best analysts command fatter pay packets.
HK gas spat should squeeze more from Air Products 1 Mar 2017 A buyout firm has upset the U.S. group's pursuit of Hong Kong-listed Yingde Gases with a rival $1.5 bln proposal. Investors think the intervention could force a higher proposal out of Air Products. That would be a victory for outside shareholders after a rocky few months.