HSBC makes right call on CEO, three months late 17 Jul 2024 Georges Elhedery, the $160 bln bank’s new boss, always looked the best available option. HSBC’s current CFO will have a job managing slower growth and tricky Chinese relations. Had the lender endorsed him in April alongside Noel Quinn’s exit, he would be on a firmer footing.
Li clan take a tiny step to beat China value trap 12 Jul 2024 A plan for an additional listing, possibly in London, for their $15 bln infra company will allow investors shunning Hong Kong to buy the stock. As for CKI's larger parent, its revenue is globally diversified. The family faces a long slog to limit damage from its China roots.
China’s banker pay crackdown risks Pyrrhic victory 8 Jul 2024 State-backed financial firms will face orders to cap salaries at about $400,000. The move reverses a drive to pay for performance, will alienate staff, create stodgier institutions and kill Beijing's dream of creating "top class" global investment banks - all for little benefit.
Shein would lose all its shine in a Hong Kong IPO 2 Jul 2024 The $63 bln online retailer may debut in the Asian hub if its plan to list in London fails, per the FT. Not only would that confirm its failure to thread the needle between its Western markets and its Chinese roots. It would result in a slashed valuation and orphan-stock status.
Pru’s buyback falls way short of a comeback 25 Jun 2024 The insurer’s shares jumped 7% on its plan to repurchase $2 bln-worth of stock. But its valuation still lags nearest peer AIA. To close the gap boss Anil Wadhwani has to show he can deliver both his predecessor’s overhaul and his own revamp. That's likely to be a long slog.
Didi IPO would give Hong Kong its dream comeback 19 Jun 2024 Hong Kong listings have raised a paltry $1.5 bln this year. To restore animal spirits, the city needs a big offering from a well-known Chinese firm to showcase Beijing's support for offshore share sales and the end of tech crackdowns. Few tick as many boxes as the ride-hailer.
PAG’s downsized Asia fund could pay off handsomely 17 Jun 2024 China dealmaker Weijian Shan raised $4 bln for his firm's buyout fund, less than half the target, after refusing to cap exposure to the world's second-largest economy. He'll have more freedom than rivals to chase returns from discounted Chinese assets. That could be lucrative.
EU tariffs solidify China’s EV hierarchy 13 Jun 2024 Investors brushed off less-than-feared levies on Chinese electric cars, with BYD stock up 3% from two days ago and SAIC down just 2%. For the former, a vertically integrated model and lesser reliance on subsidies mean it can now pull ahead of compatriots at home and abroad.
China’s value push may bridge a Hong Kong gap 12 Jun 2024 The yawning premium of onshore stocks to their offshore equivalents is easing. A push by top market regulator Wu Qing for higher dividend payouts and Chinese investors' anxious hunt for yield could further narrow the gap. Watch out for more southbound buying.
Saudi expands strategic toolbox with Lenovo deal 29 May 2024 A PIF unit is the sole investor in the laptop maker’s $2 bln convertible bond. It pays no interest and can’t be swapped for stock until 2027. The real value to the kingdom is Lenovo’s pledge to build a new factory and regional HQ there to bolster Riyadh’s manufacturing goals.
ESR buyout showcases depths of Hong Kong misery 27 May 2024 The $6 bln Asian real estate fund manager is mulling a take-private bid. While its complex business has been hit by high interest rates, a 60% fall from the stock's 2021 peak looks harsh amid a promising turnaround. Shareholders like OMERS can push for a high premium.
Ping An wrestles with its HSBC dilemma 17 May 2024 The bank's top owner may reduce its 8% stake a year after its breakup bid failed. It's a fair move given the recent bumper returns and looming succession and growth issues. But HSBC's dividends and arguable undervaluation suggest Ping An won't trim its outsized holding too much.
Hotpot IPO looks too mild without China spice 17 May 2024 Singapore-based Super Hi has distanced itself from its Chinese roots ahead of a $50 mln US offering. That's prudent, given scrutiny on companies like Shein and ByteDance. Yet without support from former parent Haidilao, the firm may struggle to stand apart from larger peers.
HSBC’s big pair of shoes will be hard to fill 9 May 2024 The surprise departure of boss Noel Quinn, who dramatically reshaped the firm, puts the globe-straddling bank on the spot: appoint a steward of its strategy from within, or a new thinker from outside? In this Viewsroom podcast, Breakingviews columnists debate the $170 bln choice.
China banks’ $900 bln buffer offers sham comfort 7 May 2024 That’s roughly how much special debt the country’s five largest lenders must raise to obey global rules for absorbing large-scale losses. It’s an improbable scenario in China’s state-controlled financial system. For the banks, extra funding costs add to a long list of headaches.
HSBC’s ideal new boss probably doesn’t exist 6 May 2024 CEO Noel Quinn’s replacement should be familiar with the $167 bln group, have experience of Western and Asian markets, understand wholesale banking, and be available. None of the potential candidates score full marks. Chair Mark Tucker may have to compromise to fill the vacancy.
China property fix aims to restock speculation 6 May 2024 Reducing unsold inventory is Beijing’s latest directive and replaces the mantra “houses are for living in, not for speculation”. It’s a prelude to removing some investment curbs. Allowing people to get rich off the sector is a necessary evil to restore overall confidence.
FOMO finally returns to Chinese equities 3 May 2024 After a $5 trln crash, a bull market in Hong Kong and surging inflows to mainland bourses are prompting some investors to up their allocations. Policy support from Beijing, buying by long-only funds and attractive valuations suggest the start of a long road to recovery.
Unilever and Nestlé offer two flavours of India 2 May 2024 Weak rural demand ate into earnings at the $63 bln local unit of the Dove soap maker. By contrast, its smaller and more-richly valued Swiss rival grew profit thanks to a larger share of urban customers. The divergent fortunes point to the limits of the Indian consumer’s wallet.
CEO departure puts HSBC at risk of strategy drift 30 Apr 2024 Noel Quinn is retiring from the $164 bln bank after less than five years in charge. If Chair Mark Tucker picks an internal replacement the new broom risks looking like a second choice. Appointing an outsider could leave HSBC without clear medium-term targets for a year or longer.