NetEase fortifies itself against global disarray 2 Jun 2020 The $51 bln video-game producer is ready to raise $2.6 bln in Hong Kong. Quarantined customers have helped it defy a U.S. backlash against Chinese stocks. A secondary listing closer to home, following a tougher trail blazed by Alibaba, should add a useful layer of protection.
U.S. sanctions on China are means without an end 29 May 2020 President Trump says he may penalize PRC officials linked to a new security law for Hong Kong. The first move of its kind would escalate tensions. Yet it probably won’t deter Beijing and could spur retaliation. Unlike tariffs, there's also no clear goal beyond punishment.
China can live with a less special Hong Kong 28 May 2020 The entrepôt's unique autonomy brought prosperity without Beijing having to cede control of the economy and people. Hong Kong’s importance has dwindled, however, and may even be holding China back. A U.S. move to strip its special status only shows how disposable that status is.
Viewsroom: Hong Kong crunch 28 May 2020 U.S. Secretary of State Mike Pompeo declared the Asian financial hub no longer autonomous from China, days after Beijing unveiled plans to ban sedition and subversion there. Breakingviews columnists in the city untangle what it means amid the trade war, pandemic and protests.
Hong Kong financiers face Man Group’s terror 28 May 2020 During China’s 2015 crash, police detained the China chief of the British hedge fund and others; some state media blamed foreigners for sabotaging markets. Beijing’s proposed new security law will extend this attitude to Hong Kong. Bankers should worry as much as protesters.
Hong Kong gets thrown under “make China pay” bus 27 May 2020 America’s top diplomat Mike Pompeo says the city is no longer autonomous. That decision initially hurts the financial hub more than it does Beijing. But an escalation in unrest would set the scene for worse economic pain for China, with a U.S. election raising the stakes.
Meituan Dianping cooks up some tasty scraps 25 May 2020 Covid-19 hit China’s $83 bln takeaway-to-taxis company, whose quarterly sales fell 13%. The outlook is shaky, but more restaurants have signed up and new initiatives like contactless delivery should provide value longer-term. Merging Western peers are in comparative disarray.
Hong Kong wreck looms if U.S. hawks join Beijing’s 22 May 2020 China is ramming through laws to suppress sedition and foreign meddling, which are certain to be broadly defined. The business community can endure political repression. Sloppy U.S. retaliation against trade and investment flowing through the city would really hurt, though.
Xiaomi making the most of the crisis 21 May 2020 Rolling out a 5G model during China's lockdown paid off for the online-savvy handset maker. First-quarter sales increased 14% from a year earlier, to $7 bln. Serious setbacks for rival Huawei and virus-powered interest in home gadgets should help sustain the impressive growth.
Index makeover sets fresh benchmark for Hong Kong 20 May 2020 The main Hang Seng tracker is welcoming companies with secondary listings and dual-class shares, opening the door to Alibaba, Xiaomi and more. That will help diversify baskets overstuffed with banks and such. It also underscores the local bourse’s plight to attract tech startups.
The Exchange: Hong Kong’s pressure cooker 19 May 2020 Covid-19 has halted anti-government protests, but tensions are simmering. Hong Kong-based lawyer and author Antony Dapiran explains to Robyn Mak how local officials and Beijing are using legal means to silence opponents, and why another summer of discontent is all but guaranteed.
China’s chip giant serves nationalism and reform 18 May 2020 The $13 bln SMIC received a $2 bln boost from state funds ahead of a debut on Shanghai’s new STAR board. The firepower reinforces Beijing’s push for tech self-sufficiency. SMIC’s Cayman Islands structure will also test new listing rules that overseas-listed peers could use.
Las Vegas Sands exit indicts Japan’s gaming plan 14 May 2020 Sheldon Adelson's firm is scrapping a $10 bln project to open a casino in the country. Short licensing periods, tough government requirements, high costs and reluctant banks are deterring the best operators. It’s a bad omen for Tokyo’s gambling tourism ambitions.
Corporate valuation of Hong Kong gets messier 12 May 2020 The city's global stock as a place to live and work has risen with its success in containing Covid-19. Anti-government protests signal a return to an unhappy normal but with most other finance hubs gripped by crisis, political turmoil is less of a reason to sell than before.
Hong Kong bourse walks fine line on CEO succession 7 May 2020 Boss Charles Li plans to step down by October 2021. Ample lead time helps HKEX shareholders and should ensure a clean handover, but he also risks becoming a long-term lame duck. Finding someone equally able to balance the interests of Beijing and foreign investors will be tough.
Hong Kong’s reeling companies need a quicker fix 7 May 2020 Local businesses have been battered by Covid-19 and months of protests, but the city still lacks a regime to give them breathing room while they nurse themselves back to health. A mooted Chapter 11-style system will take too long to implement, but other options are available.
Hong Kong’s jobless rate understates harsh reality 6 May 2020 The 4.2% figure is implausibly low given the protests and the pandemic. With U.S. unemployment expected to reach 20%, the Asian financial hub’s distorting omissions of many classes of workers are left exposed. Restaurant receipts and retail sales hint at the true economic damage.
Corona Capital: U.S. GDP, Gilead’s drug, Spotify 29 Apr 2020 Concise views on the pandemic’s corporate and financial fallout: the U.S. economy takes a dive; Gilead’s antiviral drug may help a bit; and Spotify sings an upbeat tune.
HSBC’s dividend policy is ripe for reform 28 Apr 2020 The UK mega-bank is well-capitalised despite a 48% slump in pre-tax profit and five-fold rise in bad-debt provisions. That’s partly because regulators told CEO Noel Quinn to halt payouts. It’s an opportune moment to link them to earnings and provide flexibility in future crises.
Review: The legal battle for Hong Kong’s future 24 Apr 2020 In "City on Fire", lawyer Antony Dapiran offers a riveting account of the 2019 protests. While demonstrators took to the streets, Beijing and the local government used Hong Kong’s rule of law to silence opponents. Coming court battles will help determine the financial hub’s fate.