Golden Chinese shopping spree will tarnish soon 3 Oct 2016 China's "Golden Week" holiday will see mainland tourists splurging in bazaars from Milan to Macau. Retailers should enjoy it while it lasts. Tax cuts will make shopping at home less painful, and younger Chinese prefer experiences to handbags. That will cap future growth.
Buying Chinese bonds still bad idea, just less bad 30 Sep 2016 Foreign investors are accelerating plans to increase their holdings of Chinese bonds, a poll shows. The prospect of global index inclusion is likely to push up prices, and yields are attractive. But the fundamentals are still scrambled. This is no place to park the pension.
Li Ka-shing’s banking foray is an odd throwback 30 Sep 2016 The Hong Kong tycoon, his son, and foundations have emerged as a near-3 pct shareholder in the newly listed Postal Savings Bank of China. The indirect stake is worth $1.4 bln. Li has dabbled in banks before. But the "performance-linked notes" suggest he is treading cautiously.
China ties can help Hong Kong catch up in fintech 30 Sep 2016 The city is playing catch-up with Singapore in financial technology. But as a gateway to mainland China, Hong Kong has two big advantages: easy access to a huge market, and proximity to tech giants Alibaba and Tencent. Those benefits should help it close the gap.
Powerful owners hobble Asia’s governance reform 29 Sep 2016 Asian corporate governance is improving despite frequent scandals, according to a review, which goes on to call on institutional investors to speak up more. Fair enough, but majority owners can still bully outsiders so long as the latter lack say over independent directors.
Shanghai as financial hub? Don’t believe the hype 28 Sep 2016 Professionals think Shanghai is the world's next upcoming financial centre. In reality the city is losing traction thanks to official neglect, and it's more likely to retreat than advance. Foreign finance executives should put any relocation plans on hold.
Shrinking China stock premium has lasting quality 27 Sep 2016 Punters from China are rushing south, causing the premium at which shares on the mainland trade to those in Hong Kong to halve to 20 pct. The long overdue rebalancing looks sustainable this time around, thanks to regulatory tolerance and changing attitudes.
Asian cull makes Goldman Sachs look rattled 26 Sep 2016 The Wall Street bank is laying off nearly a third of its Asian investment bankers. Lumpy deal flow, fierce competition and low fees are endemic in Asia, but Goldman's pullback suggests the scandal over Malaysia's 1MDB may have also dampened its appetite for risk.
UK, even now, is a good bet for Li Ka-shing 23 Sep 2016 The Hong Kong tycoon is reportedly eyeing $14 bln of gas grids. Never mind Brexit uncertainties or the veto of Li's British mobile merger. UK infrastructure offers solid, stable returns, and this could be a good use of the $7 bln cash pile stranded at Li's Power Assets unit.
Indonesia’s e-commerce riches will be elusive 22 Sep 2016 Capital is pouring into Southeast Asia's most promising e-commerce market. Alibaba's $1 bln stake in Lazada gives it a head start. But competition is fierce. Issues like logistics and payments will make it costly to replicate the dominance the Chinese group enjoys at home.
China gets steelier about debt restructuring 22 Sep 2016 Metals trader Sinosteel has agreed a $4 bln workout. The deal is a fudge, but spreads the pain more widely than expected. Meanwhile, a smaller miner has been allowed to fail. Both episodes suggest China is getting a bit tougher about debt problems in moribund sectors.
China postal bank aptly fails to push envelope 21 Sep 2016 Postal Savings Bank is raising $7.4 bln after pricing shares in its IPO near the bottom of the range. The implied worth of the lender's equity is 0.93 times its forward book value, in line with peers. Higher costs and loan concentration means it is lucky to secure that.
Asian investment banking is a money pit 20 Sep 2016 Fees from underwriting and deals are up 8 pct this year after a poor start. But only a few big foreign houses are profitable. Fierce competition, global and regional, keeps fees down. Meanwhile, big-ticket Chinese business goes to Chinese firms. It creates the conditions for more banks to retreat.
China’s startups have few good options left 20 Sep 2016 A slowdown in venture capital is squeezing smaller tech hopefuls. Many have flocked to the "New Third Board" but it's hard to raise new equity on this moribund over-the-counter market. Some cash-strapped groups may sell out to larger rivals, or cut costs and hope for the best.
Milk recovery sounds sour note for food producers 19 Sep 2016 Dairy Crest says higher cream prices could hit its margins, though it expects to meet full-year guidance. Sharp falls in milk prices over the past two years mean there are now fewer cows to go around. Yet as the cycle recovers, it's hard to pass higher costs on to consumers.
Aussie $7 bln port deal reveals seller’s market 19 Sep 2016 The latest privatisation Down Under sees a consortium leasing Melbourne's port for a punchy 25 times EBITDA. It underscores the huge global appetite for assets offering decades of reliable returns - and is a reminder that Australia can afford to be picky over new owners.
China’s frothy new home prices look vulnerable 19 Sep 2016 House prices are shooting upwards. August data shows even the inland backwater of Hefei city saw prices jump 40 pct yoy. There are signs of discontent, however. If authorities choose to tame this hallmark of the old economy, they have plenty of tools to battle the bubble.
Chinese CEO divorce may disturb corporate children 16 Sep 2016 Software tycoon Zhou Yahui, owner of most of gay dating app Grindr, is transferring $1.1 bln worth of company stock to his ex-wife. That may traumatize the process of making additions to the company, perhaps including Zhou's ongoing effort to buy parts of Opera Software.
How Hinkley delivers a bad deal for everyone 15 Sep 2016 The approval of Britain’s new nuclear power plant puts politics ahead of sense. Consumers could end up paying 15 bln pounds in today’s money. New ownership tests erode the country’s reputation for openness. Brexit has undermined Britain’s bargaining power.
China’s car scam shows best and worst of subsidies 15 Sep 2016 Lavish grants for electric vehicles nurtured new technology and a massive market. The largesse came at a price, though, with many millions of dollars lost to scammers faking sales to claim cash. There may yet be a happy ending for home-grown heroes like BYD.