Alibaba crafts an archetypal Davos deal 19 Jan 2017 The Chinese e-commerce giant unveiled a 12-year tie-up with the Olympics. This is more about status than financial returns. The blend of Chinese ambition, tech optimism and deal-doing among international elites is gold-standard Davos.
HNA buys SkyBridge to White House 18 Jan 2017 The Chinese conglomerate is taking a stake in newly minted White House adviser Anthony Scaramucci's hedge fund. The business fit is a stretch. But the rationale of deal-hungry HNA hoping to make a friend on Trump's team as it tries to expand in the United States is hard to avoid.
HK listing crackdown is warning to Chinese banks 18 Jan 2017 The Hong Kong securities watchdog is cracking down on market misconduct. On Monday the SFC sued UBS, StanChart and others over the 2009 IPO of a troubled Chinese company. Fines and licence freezes are likely. Chinese banks, which now dominate local listings, should pay attention.
Trump void lets Xi Jinping cosy up to Davos Man 17 Jan 2017 The Chinese president defended trade and international cooperation at the global conflab. Beijing is a highly flawed champion of globalisation. But if America turns inward under its new president, China can play a bigger global role in everything from trade to climate change.
China has back to the wall on IPO reform 17 Jan 2017 A Monday flash crash in Shenzhen was fuelled by fears of a flood of new initial public offerings. Beijing's micromanagement of the pace and pricing of IPOs has encouraged a zero-sum mentality amongst investors. Reform could cause a deeper correction, but a healthier one.
MNCs need sharper edge in China talent wars 17 Jan 2017 Multinationals are losing the battle for top Chinese talent. Local firms poached almost a third of executives who changed jobs in the past five years, while only 10 percent went the other way, a survey finds. Still, MNCs retain one big advantage: a career escape from China.
Politics could flatter or flatten global growth 16 Jan 2017 Last year the world economy grew at its slowest rate since 2009, the IMF reckons. Stimulus in China and the promise of Donald Trump’s tax cuts mean the next two years should be better. However, increased risks of protectionism make forecasts even more tentative than usual.
LeEco’s $2 bln rescue rewards bad habits 16 Jan 2017 Property developer Sunac is ploughing funds worth more than half its market value into the overstretched TVs-to-electric cars group led by billionaire Jia Yueting. The partnership makes Jia's earlier pledge to slow down sound unconvincing, and could lead Sunac astray too.
Trump could shove Iran closer towards China 13 Jan 2017 Secretary of State nominee Rex Tillerson backs a review of Tehran's sanctions deal, echoing harsh words from his president-elect. China has already identified Iran's weak economy as a target for investment. Cementing the trend could chip away at U.S. dominance in the Gulf.
China Resources seals neat exit from builder brawl 13 Jan 2017 The $5.4 bln sale of its entire stake in China Vanke to Shenzhen Metro allows the conglomerate to extract itself from a boardroom fight at an attractive price. It looks like the beginning of the end for a spat that has irked regulators. Other shareholders may follow its lead.
Review: Mapping out China’s fast-changing internet 13 Jan 2017 The world's largest mobile economy is powered by an internet with Chinese characteristics, says Winston Ma. His book is an insightful guide to the forces behind the country's thriving tech sector. But it turns a blind eye to challenges faced by outsiders like Facebook and Airbnb.
Regulators try to save fund lemmings from selves 12 Jan 2017 Customers of open-ended investments rely on false promises of liquidity that tend to evaporate in market panics. The Financial Stability Board has some ideas for addressing the ensuing risks. Its ideas are sound, but would be superfluous if fund managers did their jobs.
Hadas: The new autocratic economics is still fuzzy 12 Jan 2017 Muscular leaders have diverging concerns. Oil-dependent Putin does little to promote Russian growth. China’s Xi puts expansion above financial stability, while Turkey’s Erdogan risks the economy for political strength. The common factor is state control, greased with corruption.
Beijing lobs trade grenade into Trump’s court 11 Jan 2017 China is imposing punitive tariffs on imports of a U.S. animal feed just days before the president-elect takes office. Trump has already talked tough about taxing imports from the Middle Kingdom. Retaliation risks escalating into a trade war that neither side would win.
China bullies South Korea at its own risk 12 Jan 2017 Beijing looks to be exacting economic revenge against Seoul over a U.S. military pact. Sectors riding the "Korean wave" in China, like cosmetics and entertainment, are in the crosshairs. But deep manufacturing ties are harder to break. Excessive harshness would backfire on China.
Air Products can endure Yingde’s gas tactics 11 Jan 2017 Yingde Gases has answered a bid from its $31 bln U.S. rival with a noxious plan to sell a 10 pct stake via a private placement. It looks like an unfriendly response to an opportunistic move. Air Products' size means it can afford to wade into this messy Chinese boardroom spat.
Ma’s job offer to Trump is no Chinese peace pipe 11 Jan 2017 Alibaba founder Jack Ma met with the U.S. president-elect and pledged to create 1 mln jobs. Trump, well-pleased with this tribute, says he and the Chinese e-commerce tycoon will do "great things" together. There is less to both statements than meets the eye.
Fosun can justify double dip in Portugal 10 Jan 2017 The Chinese investor is upping its stake in lender BCP from 16.7 pct to 30 pct. Fosun is supposed to be deleveraging, and the Portuguese bank still won’t be lavishly capitalised. Still, with BCP trading at 0.2 times book, the Shanghai-based group can argue it is not overpaying.
Alibaba’s new brick-and-mortar bet looks pricey 10 Jan 2017 The Chinese e-commerce giant thinks it can save physical retail. It's offering to take Intime, a struggling operator of mainland malls and department stores, private for $2.6 bln. This is a pricey experiment trying to solve China's traditional shopping woes with tech.
Air Products has promising formula for Chinese M&A 9 Jan 2017 The $31 bln gas giant is circling Hong Kong-listed Yingde. Inbound Chinese M&A has all but evaporated but Air Products' timing is good: big debts and a boardroom fight have shrunk the target's market value to $700 mln. An existing Chinese presence would help de-risk any deal.