Hong Kong protest demands reach their expiry date 11 Nov 2019 Police shot an activist at close range on Monday, exacerbating the city's turmoil days after a first protest fatality. Chief Executive Carrie Lam’s mismanagement persists. Now, even acquiescing to high-profile demands will not quell unrest or prevent a protracted economic slump.
Recession gatecrashes Hong Kong’s fintech party 8 Nov 2019 Online-only banks stole the show at an annual gathering. Yet months of political unrest have hit small businesses. The added risks may delay local launches from the likes of Standard Chartered and Tencent. It's an unfortunate own goal for a city keen to catch up in this space.
Biotech upstarts will be Big Pharma’s China tonic 6 Nov 2019 AstraZeneca is launching a $1 bln healthcare fund in the People's Republic. A wealthier, older society promises huge growth, but rising costs mean Beijing is pushing drugmakers to lower prices. Investing in local discoveries and exporting them globally could be a smart remedy.
Hong Kong IPOs get away with a protest discount 4 Nov 2019 Warehouse owner ESR is the latest issuer to pull off a $1 bln-plus debut, despite months of anti-government demonstrations that have left investors jittery. Alibaba's plans may be back on track too. But the welcome has been tepid, and may be reserved for blue-chip sellers.
Hong Kong exceptionalism lives another day 31 Oct 2019 The economic cost of the protests continue to mount with the territory now in a technical recession. Yet even as Chinese authorities tighten their grip on the city, Hong Kong’s special status endures, and past precedent suggests it can bounce back from the turmoil.
HSBC unveils mandate for radical shakeup 28 Oct 2019 Interim CEO Noel Quinn scrapped an 11% return on tangible equity target as pre-tax profit fell 12%. Ideas like offloading the French unit are easy, but he and Chairman Mark Tucker will have to think bigger to satisfy shareholders. The bad results make bolder plans easier to sell.
Mike Pence extends prickly olive branch to China 25 Oct 2019 The U.S. vice president blasted Beijing for protectionism, aggression and oppression in a long-delayed speech. He also blamed China for "decoupling" from global norms, but welcomed it to rejoin. The invitation may keep negotiations for a weak trade deal on track, but little else.
Worst of Hong Kong’s bling pain is yet to come 24 Oct 2019 Asia’s luxury-shopping mecca is in its fifth month of mass protests. Hermes, LVMH and others have so far managed to offset the hit by selling more in mainland China. But as violence escalates, so does the risk of regional contagion, challenging the resiliency of that strategy.
Warehouse IPO reroutes Asian investment bank fees 21 Oct 2019 Warburg Pincus-backed logistics firm ESR is trying a Hong Kong market debut again after postponing an effort in June. Morgan Stanley has been enlisted to lead the $1.4 bln deal over Deutsche Bank and CLSA. Given the industry shakeup, it may be a sign of things to come.
Hong Kong shopkeepers live on borrowed time 18 Oct 2019 Small businesses create 45% of jobs in the protest-battered city, yet monetary-easing moves won’t reach companies lenders see as too risky. Many underbanked entrepreneurs need handouts and rent cuts to survive. Their plight reinforces the case for more financial creativity.
Hong Kong’s meeker neighbour faces its own perils 17 Oct 2019 Macau, run under similar rules to the former British colony, has been untroubled by anti-government protests across the water. History and size explain its model behaviour. The result, though, is less ideal: a $55 bln casino monoculture that relies on China’s tourists and favour.
Hong Kong’s best hope: billionaires’ self-interest 16 Oct 2019 Chief Executive Carrie Lam promised to tackle the severe inequality that has fuelled unrest. Instead, she offered a mish-mash of underwhelming measures. Her political capital shredded, the city’s powerful tycoons could do worse than step in to take matters into their own hands.
Hong Kong seeks new traffic cop for wonky market 15 Oct 2019 Ashley Alder made the best of a middling job as chief securities regulator. He made progress fighting shoddy IPOs, though failed to stop dual-voting share structures. His successor could tackle the SFC’s slow enforcement, but will still be stuck between powerful vested interests.
Hong Kong’s miseries enter self-perpetuating cycle 14 Oct 2019 Unhappy factors like property prices, living costs, and bankruptcies are pushing a Breakingviews index to historic highs. Demonstrators’ demands are political, not financial. But mounting economic stress on ordinary people sabotages government attempts to call a truce.
Viewsroom: General Motors strike runs on hot air 10 Oct 2019 Workers downed tools over three weeks ago, despite last-minute concessions by the U.S. carmaker. Job-security fears are a sticking point. So is the union’s need to prove its worth after a kickbacks scandal. Plus: U.S. basketball plays smart defense on China’s Hong Kong backlash.
“South Park” makes an anti-diplomat out of Viacom 8 Oct 2019 The animated series is banned in China after it poked fun at Hollywood’s willingness to self-censor. Owner Viacom’s business in the PRC makes it vulnerable to reprisals. For now, it can enjoy the soft power that comes from being one of few U.S. brands prepared to speak its mind.
LSE has done Hong Kong’s bourse a favour 8 Oct 2019 Charles Li, unable to charm the UK exchange into talks, has dropped his bid. It’s a blessing in disguise. Adding cash to sweeten a rejected 30 bln pound offer would stretch finances, and the political backdrop has worsened after a weekend of violence in the Chinese-run territory.
Hong Kong financial alarm button blinks faster 8 Oct 2019 Emergency laws enacted on Friday triggered a weekend of clashes, during which protesters trashed mainland-linked stores. The subway shut and queues formed at stores and ATMs. Local dollars are already being swapped for greenbacks: more panic will fuel human and capital flight.
Stand-in HSBC boss passes first interview question 7 Oct 2019 Noel Quinn may cut 10,000 jobs at the UK bank. A decisive move on costs would mark him out from predecessor John Flint and marginally boost pathetic returns in Europe. A bigger test of his suitability for the full-time job is whether he can sort HSBC’s struggling U.S. business.
Hong Kong’s next phase starts with ominous bang 2 Oct 2019 Police shot a protester during clashes on Communist China’s 70th anniversary, in contrast to Xi Jinping’s message of peaceful development. Beijing’s quandary also became starker: it needs to restore calm for economic stability, but tougher intervention will fuel further unrest.