Gamer favourite Razer’s next level demands focus 23 Jul 2019 The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.
China’s Topsports takes eye off e-commerce ball 17 Jul 2019 Two years after a $6.8 bln buyout of Belle, the shoe retailer has unveiled IPO plans for its athletic-wear chain. A Beijing-backed fitness push should help sustain sales growth. A dependence on Nike and Adidas is a worry, though, as is the lack of emphasis on its online strategy.
Czech lender’s Hong Kong IPO braves Bud hangover 16 Jul 2019 Home Credit’s float may value it at over 10 billion euros. The lender offers rapid growth and a focus on the Chinese consumer. But after AB InBev’s fail, the mooted valuation could be seen as toppy given both pluses could yet turn into minuses.
Tencent holds key to China’s e-sports bonanza 15 Jul 2019 DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.
Thomas Cook wipeout forces Fosun to double down 12 Jul 2019 The ailing UK tour operator is finalising a 750 mln pound recapitalisation which would give creditors control of the airline and the Chinese group its travel unit. That allows Fosun to salvage its 250 mln pound equity stake. Other shareholders are likely to be left with nothing.
Budweiser’s IPO swagger turns into a drunk stumble 12 Jul 2019 AB InBev delayed pricing a $9.8 bln listing of its Asia unit, hinting at poor demand for the year’s biggest float. Boss Carlos Brito and his bankers didn’t leave room for manoeuvre, setting a punchy price range and shunning cornerstone investors. The result is an early hangover.
China’s tech funding rut shifts power to investors 11 Jul 2019 Startup whizz-kids have plenty to bemoan in Hong Kong this week: fewer venture deals in the mainland, lacklustre IPOs and a trade war clouding prospects for all. That marks a change from past exuberance. For those investing, though, it's a chance to be a little more demanding.
Odds are on for Macau mogul’s gutsy global play 10 Jul 2019 Lawrence Ho has built Melco Resorts and Entertainment into a $12 bln casino empire stretching from Manila to Melbourne. Next, he’ll chase a licence in Osaka. Even if he doesn’t hit the Japanese jackpot, diversifying into a true global operator looks like a good bet.
Hong Kong chief’s humiliating retreat comes late 9 Jul 2019 Carrie Lam says her extradition bill is dead. The admission of failure is welcome but also overdue. She is bowing to get demonstrators off the streets; to regain the confidence of CEOs, investors and citizens, the city's leaders will have to show they are listening more closely.
Anta outruns short-sellers at surprising pace 9 Jul 2019 The $18 bln Chinese athletic-gear maker is under attack again, this time from Muddy Waters, which accuses it of fraudulently inflating profit margins. Despite an abundance of doubters, the stock is up a third this year. Resisting scepticism may be a less challenging sport.
Budweiser serves up a pricey pint in Hong Kong 2 Jul 2019 AB InBev values its Asian unit at up to $65 bln, or about 20 times EBITDA. That’s close to multiples of rivals in fast-growing emerging markets like China, but half the business is in slower, more mature ones. The IPO will seem less giddy if Carlos Brito pours on M&A next.
Hong Kong protesters score Pyrrhic victory 2 Jul 2019 A furious faction broke into the city’s empty legislature and trashed it, deepening a crisis for Chief Executive Carrie Lam. The violence will weaken some of the movement’s support. It also may spook big business and give Beijing a pretext to dig in. There’s little to celebrate.
The Exchange: Hong Kong’s political crisis 2 Jul 2019 Michael Tien was among the first politicians from the city’s pro-Beijing faction to oppose the controversial extradition proposal. Just before protesters ransacked the legislature, he spoke with Breakingviews about Chief Executive Carrie Lam’s future and giving residents a vote.
A “shareholder” vote would help Hong Kong CEO 28 Jun 2019 Locals want Carrie Lam to quit her rare political chief executive role. But no corporate boss could succeed under such suffocating governance. Some pressure would be eased by letting subjugated shareholders pick a leader from a field nominated by Beijing's entrenched board.
Apple tastes luxury’s less lustrous side 28 Jun 2019 Jony Ive, whose iMac and iPhone designs fueled the $920 bln firm’s meteoric rise, is leaving - and at a time when phone sales are falling and trade flows under threat. Design-dependent brands can recover from creative brain drain, but it’s sometimes a painful process. Just ask Gucci.
Evergrande can ill-afford an electric-car fantasy 21 Jun 2019 The property giant has already put over $4 bln into green vehicle brands and dealers. Now it plans to plough ten times that into research and factories; for the same money boss Hui Ka Yan could buy Tesla. But he’s no Elon Musk, and this could derail a debt clean-up.
CLSA exodus leaves owner Citic with an empty shell 20 Jun 2019 The brokerage's star analysts are being poached by rivals like Credit Suisse and Jefferies. They take with them much of the brand value China's Citic Securities paid $1.3 bln for in 2013. Such mergers are always tough. But the state-owned group missed opportunities to do better.
Hadas: Hong Kong teaches lessons on taming China 19 Jun 2019 The Asian financial hub is a special case, but its mass protests make clear that single-minded resolve can push back against an increasingly prosperous and autocratic People’s Republic. Similar focus would help foreign businesses and governments. Donald Trump is mostly failing.
Sweden provides a cautionary digital tale for HSBC 18 Jun 2019 Hong Kong’s new online banking licences open the UK-based titan to new challenges in a market that accounts for 30% of pre-tax profit. Scandinavian giants such as Swedbank quickly fell prey to startups. And HSBC will be up against the likes of tech-savvy Alibaba and Tencent.
Beijing yields to Hong Kong’s financial clout 15 Jun 2019 Carrie Lam has suspended a bill that would have allowed extradition to the mainland, backing down after protests rocked the city she leads. It’s a defeat for her, and leaves egg on the central government’s face. But for China, Hong Kong’s economic utility trumps political control.