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.
Hong Kong can stand up to Jack Ma 4 Nov 2016 Jack Ma has threatened to list the $60 bln Ant Financial elsewhere if Hong Kong won't innovate. That sounds like code for allowing something like the special sway he enjoys over Alibaba. Conceding to Ma won't fix the exchange's problems. Nor does Ant have someplace better to go.
Malaysia’s pivot to China is payback plus 3 Nov 2016 The country is not as desperate as the Philippines for investment. But cozying up to Beijing is one way to express gratitude for China's continued support during the 1MDB scandal. Outside funding can also help Najib meet ambitious development goals - and win re-election.
Alibaba’s big data ambitions become an easier sell 2 Nov 2016 Cloud, media and things other than online retail now make up almost a fifth of the e-commerce giant's total revenue. Alibaba's shift from being a shopping platform to a data and content firm is still a work in progress, but boss Jack Ma's vision is looking increasingly plausible.
Hong Kong zombie stocks lurch toward IPO bankers 2 Nov 2016 China Forestry, listed in 2009 and suspended from trading two years later, has caught up with co-sponsors Standard Chartered and UBS. Both banks just revealed probes by the Hong Kong regulator. If that's the pace of justice, there are dozens more undead firms that could lash out.
KFC discovers weak appetite for Chinese consumers 2 Nov 2016 Yum Brands' spun-off local unit is a straightforward play on rising mainland consumption, offering Chinese growth with U.S. governance. A surprisingly modest valuation for the KFC operator suggests punishment for past mistakes - and caution about China's economic transformation.
China debt-for-equity swap is half a decent idea 1 Nov 2016 The rescue plan for struggling state champions will buy them time to get their houses in order. But the deal lets lenders off the hook too easily, and hangs public money on it instead. Needed management reforms aren't mandated. Half a restructuring might turn out as bad as none.
Asia billionaire hunters go from predators to prey 31 Oct 2016 Fallout from Malaysia’s 1MDB fund scandal means banks must vet the region's wealthy more keenly. Tougher compliance needs come at an awkward time for Credit Suisse and Julius Baer, which have been hiring furiously. They also explain why subscale peers like ABN Amro may want out.
Breakdown: Gauging the risks of a China crisis 31 Oct 2016 Debt is rising rapidly, while the links between the official banking system and shadowy institutions are growing deeper and harder to fathom. The People’s Bank of China can probably ride to the rescue in the event of a shock. But a painful credit crunch will be harder to avoid.
UBS ban in Hong Kong would compound terrible year 28 Oct 2016 The Swiss bank says a probe into some IPOs might put its corporate finance business in the Asian city on hiatus. UBS is struggling in Hong Kong, and has slid down the league tables. With third-quarter results showing global fees down more than rivals, this comes at a bad time.
Emperor Xi gets new clothes 28 Oct 2016 China's Communist Party named President Xi Jinping as its "core" leader - a title previously granted to icons like Mao and Deng. But Xi needs more than titles to implement tough reforms; he needs provincial allies and a viable vision for economic policy. He may have neither.
Alibaba label fails to stick on courier IPO debut 28 Oct 2016 Shares of China’s ZTO Express fell 15 pct on their debut in New York. Aggressive pricing is mostly to blame. Justifying an e-commerce style premium for a logistics firm was a tough sell to begin with. ZTO lacks the margins and dominance of Jack Ma's giant to be delivered as such.
Blockchain for banks will eat its creators 27 Oct 2016 A transaction involving Wells Fargo and a cotton trader has made the payment technology a reality. Meanwhile a consortium-backed platform will soon share its code. Banks act like this is a good thing, but their role as middlemen in markets like corporate bonds and FX is at risk.
China is bluffing on shadow bank crackdown 27 Oct 2016 The central bank is broadening oversight of off-balance sheet finance in the $4 trln wealth management product industry. But increasing scrutiny of the obvious isn't much of a threat to banks that rely on WMPs for profit. Shadow banking supports growth and is here to stay.
Plenum adds to jitters over Chinese outbound M&A 25 Oct 2016 A leadership conclave this week is a prelude to a reshuffle of the party's top cadre. That's a distraction for the officials whose jobs hang in the balance at state firms like ChemChina. And it's one more reason to worry about the completion of Chinese outbound deals.
China’s “bicycle Ubers” worth taking for a spin 25 Oct 2016 MoBike and ofo are billed as sexy pedal-powered answers to the ride-hailing app. The startups, backed by local tech giants, are actually asset heavy and capital-intensive. They face unique risks, but pairing smart hardware with rental economics justifies some enthusiasm.
HNA checks in to Hilton at a high-season premium 24 Oct 2016 China's free-spending hospitality giant is plunking down $6.5 bln for 25 pct of the hotelier from Blackstone. It's paying 15 pct more than market for the honor. The LBO firm triples its money in the deal. HNA at least gains a valuable, if pricey, seat at an important table.