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.
China’s soccer frenzy has early signs of fatigue 28 Feb 2017 A unit of LeEco has lost the rights to screen top Asian matches after missing a payment on a $100 mln-plus deal. The cash-strapped group has unique problems. Still, Chinese investors have poured record sums into the sport. Some others have probably over-stretched too.
China’s unicorn shortcut sidelines IPO reform 27 Feb 2017 The securities watchdog is mulling faster listing approvals for big tech firms. Letting Jack Ma's $60 bln Ant Financial jump the queue may convince other entrepreneurs to follow, eschewing New York and Hong Kong. But this would be a poor substitute for meaningful IPO reform.
Hollywood’s Oscar glow could be dimmed by China 24 Feb 2017 Some $5 bln from the People's Republic has been pumped into U.S. movie production since 2014. The infusion has been a big help as studio margins shrink. A Beijing crackdown on financing presents a threat, however, and could mean more belt-tightening after Tinseltown's big night.
China regulator reshuffle leaves turf intact 24 Feb 2017 The People's Republic is shaking up top financial and economic positions, with veteran watchdog Guo Shuqing poised to take charge of supervising banks. Yet there is still no sign of the much-discussed super-regulator, and central bank chief Zhou Xiaochuan remains in place.
Breakdown: China swaps bad debt for faint hope 24 Feb 2017 The People's Republic is trying to ease its huge corporate debt burden by letting some state-owned groups switch bank loans for equity. Over 300 billion yuan has already been exchanged. Breakingviews explains how, if the companies cannot be saved, taxpayers will still be on the hook.
AIA’s bullish talk contrasts with cash caution 24 Feb 2017 The Asian insurance juggernaut has weathered the clampdown on Chinese capital outflows well, clocking up another bumper year. New business soared 28 pct and a key profit measure rose 15 pct. But management's confidence is not quite matched by its dividend plans.
Ctrip maps route to become China’s next web giant 23 Feb 2017 A near-monopoly in online travel makes Ctrip an attractive bet on Chinese tourism. Better-than-expected results and punchy growth targets have also impressed investors. If the $24 bln outfit stays on course, it may join Baidu, Alibaba and Tencent among China's online elite.
Hong Kong budget is missed chance to spread wealth 22 Feb 2017 The city's new finance chief rolled out new spending and said occasional deficits might be permitted. The shift away from stinginess comes weeks before Hong Kong chooses a new leader. But it's unlikely to placate the protest movement; the massive $120 bln reserve stays untouched.
Air Products’ Chinese bid deserves to fly 22 Feb 2017 The U.S. giant has been stuck in a weird battle for control of Yingde Gases, which it wants to buy for up to $2.8 bln including debt. The target's board finally seems to be seeing sense. Bravo: the suitor is offering a fair EBITDA multiple and a fat premium for shareholders.
Baidu’s AI reboot is overdue and welcome 22 Feb 2017 The scandal-hit search engine is prioritising artificial intelligence. Playing to its core strength is sensible. But after costly diversions into video streaming and food delivery, the Chinese tech group owes investors an explanation of how this new pivot will deliver profit.
Golden Globes flop could tarnish Chinese bidders 21 Feb 2017 Officials torpedoed Dalian Wanda's $1 bln bid for Golden Globes producer Dick Clark, a Hollywood website says. Reining in Wang Jianlin may be diplomatically astute and economically prudent, but if China's richest man can't get deals done, it's a bad sign for other Chinese buyers.
Hadas: Trump’s FX truthiness misses the big points 20 Feb 2017 The U.S. president’s complaint that cheap overseas currencies hurt U.S. jobs contains a little truth, but his proposed cure is far worse than the disease. The main problem in foreign exchange is excess volatility. Fixing that requires better global coordination – a distant dream.