Hong Kong gets temporary face-lift from selfie IPO 15 Dec 2016 The city has burnished its financial centre credentials with photo-app Meitu's $629 mln listing, the biggest tech deal in a decade. Other Chinese entrepreneurs are watching intently. But Hong Kong's lacklustre aftermarket may still send mainland unicorns galloping to New York.
Small step for some is giant leap for Uzbekistan 14 Dec 2016 The landlocked central Asian country has poor human rights and low foreign investment. But new President Shavkat Mirziyoyev has made encouraging changes, like restoring air links with Tajikistan and scrapping visas for some foreigners. There is far to go, but it’s a start.
Confusion is already taking a toll on Chinese M&A 13 Dec 2016 China has floated plans to make it harder to move money abroad, and to stop leftfield takeovers, but has not announced any concrete rules. Never mind: uncertainty is always a deal killer. Sellers are already wary, and will demand larger premiums and upfront payments.
Philips brightens private equity’s gloomy corner 12 Dec 2016 Apollo has bought the Dutch company's LED and car lighting business for $2 bln. That's 40 pct below a Chinese bid that American regulators blocked on security grounds. Buyout firms can't easily outbid cash-rich Eastern investors. At least they can sometimes pick up the crumbs.
Beijing seeks applicants for Hong Kong’s worst job 12 Dec 2016 Special Administrative Region seeks competent and charismatic chief executive. Goals: reassure a rattled finance industry, tame crazed property prices and make peace with a protest movement. And somehow not look too much like Beijing's agent. Anyone?
Viewsroom: What’s at stake in Trump vs. China? 9 Dec 2016 The U.S. president-elect upended decades of diplomacy by taking a call from Taiwan's leader. But some U.S. companies will welcome his stance. And China has much to lose from any escalation. Also: Italy PM Renzi gets his marching orders. And there's no easy move to monetize chess.
China bond market could use some foreign insight 9 Dec 2016 Regulators may allow foreign ratings agencies into the onshore market. That might comfort overseas investors enough to persuade index compilers to include Chinese bonds. The trick will be stimulating competition in a market twisted by government guarantees.
China cracks capital whip on Macau ATMs 9 Dec 2016 The government reportedly halved the cash tourists can withdraw using UnionPay cards in the gambling mecca. That hammered casino operator stocks and may derail the island's economic recovery. It also illustrates the utility of a debit card monopoly in stemming capital flight.
China will show Trump more carrot than stick 9 Dec 2016 The People's Republic likes to test out new U.S. presidents. Its response to the TV tycoon’s early tantrums, however, hints at a more measured approach. China will try to avoid provoking Trump on currency and military issues, but take a harder line on investment and trade.
U.S. scandal is blot on China’s educational sector 9 Dec 2016 Shares of the $7 bln New Oriental have fallen 11 pct since Reuters reported allegations that staff helped applicants cheat to get into U.S. colleges. The claims are dismaying. But the financial fallout should be limited. Investing in Chinese education remains a first-class idea.
China gets a good cop as Trump’s primary emissary 8 Dec 2016 The president-elect mollified Beijing with his ambassador pick. The selection of Iowa Governor Terry Branstad, who has personal connections with Xi Jinping, calms waters troubled by Trump's tough talk. As other hardliners are brought in, Branstad will need to pack a surfboard.
China is still firmly on the menu for McDonald’s 8 Dec 2016 The U.S. burger giant is nearing a $2 bln sale of its local unit to an investment consortium. Viewing this as a simple retreat is tempting but misguided. As elsewhere, franchising is a better business than owning and operating stores. A big Chinese partner brings myriad benefits.
Average Chinese Zhou is not an FX outflow threat 8 Dec 2016 China's FX reserves fell $69 bln in November as corporate capital flows out of China. Some worry ordinary Chinese will be next, mobbing banks to convert yuan to dollars when their quota resets in January. Officials need not over-react. Zhou is happy with his yuan in the bank.
China regulator has healthy fear of goblin raids 8 Dec 2016 The country's top stock regulator startled investors by ranting against "barbarians" and "goblins". It's not just superstition: he's worried about insurers using premiums to fund corporate raids. Plenty of Chinese boardrooms could use a shake-up, but not by ghoulish speculators.
Fosun’s $3 bln U.S. sale is an orderly retreat 6 Dec 2016 Selling U.S. insurer Ironshore is a welcome sign of caution from one of China's most aggressive dealmakers. The deal will shore up Fosun's balance sheet and sharpen its focus on emerging markets. The U.S. will only become tougher for Chinese firms to navigate.
Trump to U.S. businesses in China: drop dead 5 Dec 2016 U.S. President-elect Donald Trump's precedent-breaking call with Taiwan's president, followed by ominous tweets about Chinese policy and American firms' overseas production, has diplomats scrambling. One thing is clear: Trump doesn't care about U.S. investments in China.
Closing jaws of China cash trap bad news for MNCs 5 Dec 2016 Multinationals in China can bring money in any time they like, but it may never leave. Tightening capital controls will be a major problem for foreign companies in mature sectors, especially for U.S. firms planning to remit profits if Trump cuts taxes on offshore earnings.
Review: China’s doomed anti-corruption campaign 2 Dec 2016 Tales of Chinese officials enriching themselves are so prevalent they no longer astonish. President Xi Jinping's anti-corruption campaign has penalised bad behaviour. But in "China's Crony Capitalism", Minxin Pei argues that state ownership makes any sustained crackdown futile.
China’s pension move into stocks is overdue 1 Dec 2016 China is moving to invest $290 billion worth of public pension funds in financial markets including stocks. That won't spark a rally, but will increase healthy institutional ownership. Given shortfalls, long-term returns from volatile Chinese stocks are preferable to deposits.
Dollar strength spells more U.S. bond weakness 30 Nov 2016 As emerging market currencies wilt against a resurgent greenback, countries like India are dipping into their war chests to sell dollars. More may have to follow suit. Sooner or later, this will involve selling Treasuries. It’s more bad news for the battered U.S. bond market.