JPMorgan payout would put princelings in context 17 Nov 2016 The bank is close to reaching a $250 mln-plus settlement with U.S. authorities over hiring the relatives of Chinese officials. That's relatively small compared to other recent banking fines, suggesting the case wasn't clear-cut. It offers hope for others still under scrutiny.
Anti-China report lobs match into Trump powder keg 16 Nov 2016 Congress is being advised to ban any takeovers of U.S. companies by the Middle Kingdom's state-owned firms. The report tars private firms with the same brush and heightens fears of spying and economic warfare. It's easy fodder for the president-elect's populist platform.
JD’s $7 bln spinoff keeps investors in the dark 16 Nov 2016 The Chinese web retailer plans to sell its finance arm to a group of local investors including JD CEO Richard Liu. Offloading the loss-making subsidiary will help margins, but absent more detail on the unit's performance, shareholders can't tell if they will get a good deal.
VW rejigs China partners but keeps hand on wheel 16 Nov 2016 Its Audi unit could move some production from struggling FAW to a joint venture with SAIC, adding firepower to compete with Mercedes Benz. After 30 years in China the Germans need not worry about JV partners becoming rivals, thanks to government coddling and easy profits.
Chinese copper firm goes off-script in Hollywood 15 Nov 2016 Loss-making Anhui Xinke is buying the studio behind "The Hurt Locker" for $350 mln. It is not the first Chinese acquirer of a U.S. film producer but it might be the most out of place. Betting on pictures for profits to cure the hurt in the bloated metals sector is pure fantasy.
China’s zealous cleantech firms risk burning cash 15 Nov 2016 Chasing $1 billion-plus prizes like Dutch waste-management company Attero might please officials in Beijing. But acquisitions are not the best way to take advantage of green policies at home. Getting the know-how to scale up doesn't require such large, distant investments.
ChemChina-Syngenta deal suffering Chinese blight 14 Nov 2016 The Swiss agribusiness group's share price has tumbled, implying a plunge in confidence the $43 bln purchase will happen. The rot seems to be in the PRC, where corporate and political jockeying could prevent needed approval. China Inc will pay a high price if the deal fails.
Alibaba digs itself deeper into a data hole 11 Nov 2016 The Chinese group wants the market to focus less on the sales handled by its websites and more on actual revenue. But it also boasts about doing $5 bln of business in the first hour of Singles' Day, the Chinese answer to Black Friday. The mixed message is confusing for investors.
China can become a better hedge against U.S. risk 10 Nov 2016 The election of Donald Trump hands Beijing an unprecedented opportunity to boost its influence in Asia at the expense of America's. But China won't reap the full benefit unless it shares its wealth more widely and treats neighbours less like client states and more like partners.
Few winners in Asia from Trump’s shock victory 9 Nov 2016 Rising protectionism and a weaker commitment to regional security are particularly worrying for South Korea, Japan and Taiwan. But heightened uncertainty could hit economies and markets across the continent. At least for China trade losses may be offset by geopolitical gains.
Rio Tinto trips into bribery mine shaft in Africa 9 Nov 2016 The $67 bln mining giant has another scandal on its hands in Guinea, despite tightened controls after a similar problem in China. It's unlikely to derail the sale of Rio's remaining stake in the $20 bln Simandou iron-ore project to Chinalco, but collateral damage is unavoidable.
China’s boldest billionaire starts to face reality 8 Nov 2016 Jia Yueting has written to staff acknowledging his Netflix-to-Tesla empire grew too fast and faces a cash crunch. His candour about LeEco's struggles is welcome. The odds of simultaneously succeeding in TVs, smartphones, electric cars, sport and video-streaming remain very long.
China sacrifices finance chief on altar of growth 8 Nov 2016 President Xi Jinping has abruptly replaced Finance Minister Lou Jiwei. The reshuffle removes a powerful advocate for reform and signals growth at any cost is a priority. The longer China delays dealing with its debt problem, the more painful the eventual reckoning will be.
HSBC blows hot and cold on Chinese partner 8 Nov 2016 The UK bank says that its near-20 pct stake in Bank of Communications remains the “flagship” of its Chinese operations. The warm feelings are reciprocated. Yet HSBC just benefitted from an accounting change that implies the shareholding is anything but integral.
Too much U.S. good news is bad for Chinese yuan 8 Nov 2016 A stronger American economy is putting pressure on China's sliding currency. Markets have priced in one rate hike by the Federal Reserve, but if positive surprises prompt more increases, it would undermine China's gradual depreciation strategy and provoke more capital controls.
Needless Chinese haste risks Hong Kong waste 7 Nov 2016 Beijing has preempted the territory's courts by interpreting the Basic Law to prevent two independence activists from taking office. Markets are shrugging as black-clad youths protest, but long-termists in the financial sector should be more rattled about Hong Kong's future.
CICC swaps independence for broking fix 7 Nov 2016 The Chinese investment bank once backed by Morgan Stanley is buying retail-focused China Investment Securities for $2.5 bln in stock. CICC is paying a low price to address an important weakness in its brokerage business. The trade-off is handing majority control to Beijing.
Hong Kong tax only a breather for property bubble 7 Nov 2016 The territory nearly doubled stamp duty to 15 pct to cool surging prices. It's the toughest measure yet, but continued capital inflows from China will blunt the impact. Barring a big increase in supply, the world's least affordable housing market is likely to remain that way.
Golden Globes make problematic prize for Wanda 4 Nov 2016 Wang Jianlin's company is already big in Hollywood. Now it is buying Dick Clark, the U.S. TV awards producer, for about $1 bln. The sellers should be happy. But Washington's Sino-sceptics may not want to see Wang rolling out the red carpet for many more entertainment firms.
Lenovo could follow Dell’s buyout blueprint 4 Nov 2016 Sales keep falling at the Chinese PC giant, and its stock has shed nearly 40 pct this year. If Lenovo's bosses and main shareholder think the market is too pessimistic about its turnaround, there is a ready-made solution: mimic U.S. rival Dell and take the $7 bln group private.