Swire wisely calls on family to steady the plane 9 Feb 2018 The venerable Anglo-Asian conglomerate named a family member as chairman of its flagship Hong Kong unit. That signals it is taking problems at Cathay Pacific Airways and in oilfield services seriously. This could be good news for long-suffering Swire Pacific investors.
New-look Noble Group has a fighting chance 30 Jan 2018 A tentative deal with creditors would halve the Hong Kong commodity trader’s $3.4 bln of senior debt and give them 70 pct of the company. With a healthier capital structure, and fat incentive packages in place, it’s up to management to put years of dismal performance behind them.
Chinese tech is missing a download from investors 30 Jan 2018 Baidu, JD and other U.S.-listed firms routinely skip annual general meetings, taking advantage of a lenient setup for companies legally based in the Caymans. Depriving shareholders of this standard way to raise concerns with bosses and vote on directors is a serious red flag.
Super-voting stock returns a split-ticket 26 Jan 2018 Senior officials from Credit Suisse, BlackRock, Bain Capital and PCCW Media squared off about Hong Kong moving to open the door to dual-class share structures. It'll invite more listings, they told a Breakingviews Predictions event, but the implications are many and varied.
The Exchange: Dual-class dueling 25 Jan 2018 Hong Kong’s plan to welcome super-voting stock weakens corporate governance, but its appeal to Chinese tech companies also may be exaggerated. Officials from Credit Suisse, BlackRock, PCCW Media and Bain Capital debated the upcoming changes at a recent Breakingviews event.
Nike supplier risks own goal with $1.4 bln buyout 22 Jan 2018 Pou Chen, the world’s biggest shoemaker, is bidding for full control of Hong Kong-listed sportswear retailer Pou Sheng. Rising pressure from e-commerce makes this risky for the buyer. With a fair price on offer, outside investors should let the Taiwanese group get on with it.
Activist makes crypto-demands of bitcoin miner 19 Jan 2018 Hedge fund Oasis wants reform at GMO Internet, a Japanese firm that looks a bit like a small SoftBank. The prospects of an across-the-board victory at a shareholder vote look as unreal as the tokens GMO mines. Yet this could still prompt a juicy revaluation of the $2 bln target.
Jack Ma opens floodgate on Hong Kong tech listings 10 Jan 2018 The Alibaba founder could list parts of his e-commerce firm in Hong Kong. That suggests the exchange’s proposals to permit dual-class shares and more secondary listings are having their desired effect. The implications for local corporate governance will be ugly.
Hong Kong will start atoning for missing Alibaba 4 Jan 2018 The city lost many Chinese tech listings to New York. But it is building a critical mass of stocks, analysts and investors, and is poised to weaken governance rules in favour of founders. That sets the stage for the IPOs of rising stars Didi, Toutiao and Meituan-Dianping.
Our 2018 predictions on Reuters TV 31 Dec 2017 From the CEOs who should run for U.S. president, to the banks that ought to be sizing up mergers, our writers give their take on the coming year in a series of Reuters video reports.
Gym chain’s China private equity workout has legs 19 Dec 2017 An ex-Goldman banker’s buyout firm is backing posh Hong Kong gym chain Pure. Fitness investments can turn ugly. One big opportunity, however, is expansion in China where the $4.4 bln health club market is expected to grow 20 pct annually. That sweat could help to pump up returns.
Dual-class Hong Kong will double-cross Wall Street 15 Dec 2017 To compete with New York for tech IPOs, the Asian financial centre's exchange is set to host companies with super-voting stock. Investment bankers will be degraded as much as investors. They stand to be paid less for the same deals and can expect to share fees more widely.
Li & Fung family rearranges its sweater drawer 15 Dec 2017 The Hong Kong conglomerate is offloading its struggling knitwear, furniture and beauty products divisions for $1.1 bln. Buying them for a healthy price is a group led by the Fung clan. A company dividend will return some proceeds to them. It's a cozy solution to a prickly problem.
Sunac lays foundation for better balance sheet 15 Dec 2017 The highly-indebted Chinese property developer is raising $1 bln by selling discounted shares. Following a nearly 400 percent rise in the stock price, it's a good time to tap the market for cash. Given Chairman Sun Hongbin's deal history, he probably will need to do so again.
Hong Kong trophy tower flip could inspire copycats 13 Dec 2017 A Beijing firm plans to buy a $5.2 billion Hong Kong skyscraper almost entirely using debt, much of it at high rates. That might work if it can resell floors quickly. Success would fuel fresh speculation, and undermine attempts to stop state firms dabbling in overseas property.
U.S. hands HSBC CEO perfect going-away gift 11 Dec 2017 The end of a five-year agreement over money-laundering lapses removes the threat of authorities yanking the bank’s U.S. licence. HSBC devoted 8 pct of its operating expenses to compliance last year. Though those costs will stay, departing boss Stuart Gulliver can leave on a high.
A $50 bln Xiaomi comeback is hard to figure 6 Dec 2017 After its fall from grace, the Chinese handset maker may be mulling an IPO again. Sales are on the rise, thanks to markets like India and other items including air purifiers. Even so, only optimistic assumptions and Hong Kong's tech fever can justify the eye-popping valuation.
Ramen IPO may be worth slurping up 1 Dec 2017 Japan's Nissin is taking public its Greater China business at a valuation of about HK$4.1 bln, or $525 mln. Broader demand is falling, but the company is tapping into millennial interest in posher packaged carbs. Compared to where rivals trade, these noodles could be tasty.
Chinese trust hurries IPO before music stops 28 Nov 2017 A Shandong outfit wants to raise up to $450 million by listing in Hong Kong. Trust companies helped found China’s shadow finance system, but as Beijing squeezes off-balance sheet lending and competition rises from banks and startups, investor appetite is likely to be limited.
Half-a-trillion-dollar Tencent is market headache 21 Nov 2017 The Chinese tech giant’s market value briefly hit $535 bln, making it bigger than Facebook. While Tencent has helped push Hong Kong’s Hang Seng index to near-record highs, the gains flatter a weaker wider market. Any correction would hit a multitude of investors.