StanChart hopes crash into harsh market realities 26 Oct 2023 Shares in the lender run by Bill Winters tanked by up to 17% after surprise hits to its China bank and real estate holdings. These may be one-offs. But the reaction is a reminder that StanChart’s current mediocre goals, after years of subpar results, offer little room for error.
Hong Kong property stares into the abyss 24 Oct 2023 Secondary sales prices in the world’s least affordable housing market fell 19% since a 2021 peak, the biggest slump since the global financial crisis. High interest rates are a pain and slashing stamp duties may not help. The city’s image problem will keep hurting sentiment.
China’s consumers look more golden closer to home 9 Oct 2023 Domestic tourists splurged $103 bln over Golden Week, marking the busiest holiday in five years. Yet fewer consumers are venturing further afield, including to Hong Kong, while those who do spend less. That’s a smaller problem for Beijing than it is for the rest of the world.
Spying suspicions will stalk Alibaba and Wall St 6 Oct 2023 Belgium is scrutinising the tech giant’s European logistics hub as its courier unit prepares to list. The issues may be old but the risks facing Chinese firms going global are rising. Elections in the US and beyond will only make China deals harder to execute.
Alibaba spinoff can deliver two recovery packages 4 Oct 2023 Logistics unit Cainiao’s name may mean “rookie”, but the group is profitable and weaning itself off dependence on its parent. A successful IPO valuing it at $10 bln or more would warm up Hong Kong’s market and show Alibaba’s overhaul is on track after CEO Daniel Zhang’s exit.
Hong Kong bankers play an anxious waiting game 26 Sep 2023 Fewer IPOs in the city mean firms such as UBS and Bank of America are more willing to handle middling transactions like Tuhu’s $150 mln offer. But as big deals stir in New York and beyond, the downsizing increasingly will look like an awkward stopgap for Wall Street.
Nomura is merely first in line for new China risk 25 Sep 2023 Charles Wang Zhonghe, the firm’s Hong Kong-based chair of investment banking for the People’s Republic, is barred from leaving the mainland. Overseas banks committing to bulk up in the country may no longer be able to avoid the effects of President Xi Jinping’s crackdowns.
Samsonite’s baggage is heavy with geopolitics 12 Sep 2023 Of all the global companies listed in Hong Kong mulling full or partial exits from the city, the $5 bln luggage maker has the least financial motive to move but is “evaluating” venues nonetheless. It hints at the growing pressure on multinationals to plan for extreme scenarios.
Richard Li can afford to be fifth time lucky 11 Sep 2023 The tycoon’s Asian insurer FWD looks set to let its Hong Kong listing application lapse. Ending its fourth IPO push is sensible: it doesn’t urgently need funds. Yet Li’s multi-year run at a debut for his sober business is turning into a test for the languishing capital market.
Revamped Pru faces up to an old problem 31 Aug 2023 CEO Anil Wadhwani boosted the insurer’s new business profit by a third in the first half and laid out new growth targets. But despite shedding its UK and US arms to focus on Asia, the $35 bln group’s valuation still lags rival AIA. A slowdown in China makes it harder to catch up.
Global insurers surf China’s storm while they can 24 Aug 2023 AIA’s value of new business in Hong Kong more than doubled in the first half. The $100 bln giant and peers are benefitting again from selling policies to returns-hungry mainland visitors. Insurers may become victims of their success if Beijing’s angst over capital flight deepens.
A less friendly Hong Kong awaits global investors 15 Aug 2023 The city ditched a requirement for Chinese firms to hold separate votes on certain matters for onshore and offshore shareholders. It hits at the outsize influence BlackRock and others long exercised via Hong Kong and is another reason to buy mainland shares instead.
L’Occitane buyout is bad look for Hong Kong 10 Aug 2023 Boss Reinold Geiger wants full ownership of his skincare group. At $7 bln, it would be the city’s largest take-private and L’Occitane could relist at a higher valuation at home in Europe. It’s a no-brainer others will want to copy and shows up the Asian hub’s helplessness.
Bubble tea will test limits of China’s consumers 8 Aug 2023 Half a dozen boba-drink makers including Mixue Bingcheng are looking to list abroad. Profit margins are low in the $20 bln sector. But as shoppers reduce higher-end spending, the cheap-and-cheerful brews can thrive – even if Beijing holds back on much-needed stimulus.
HSBC invites shy investors to turnaround party 1 Aug 2023 Boss Noel Quinn is upping targets at the $160 bln bank after first-half pre-tax profit more than doubled. It’s good timing: pushy shareholder Ping An and its breakup hopes may have been effectively silenced, but other owners need convincing that Quinn’s overhaul has legs.
Swire’s Coca-Cola sale gives investors sugar rush 29 Jun 2023 Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.
Hong Kong’s market promotions get shrill 28 Jun 2023 The city’s bourse is trying to lure foreign listings from Europe and the Middle East while regulators push local lenders to bank crypto exchanges. The first initiative is worthwhile but unlikely to yield much new business; the latter creates fresh headaches for HSBC and peers.
Hong Kong’s yuan-trading push is a long-term bet 19 Jun 2023 The city’s bourse operator will allow investors to trade some stocks in yuan. The hope is to eventually lure more mainland Chinese and offshore investors. But as with the near decade-old trading link with China, any tangible financial benefits will take a while to flow through.
Vodafone’s do-or-die UK deal is a risky bet 14 Jun 2023 The $24 bln telecoms firm is merging its UK mobile business with CK Hutchison’s Three to create Britain’s largest network. It is promising investment to win over competition watchdogs. It could backfire, but CEO Margherita Della Valle has few easy ways to please weary investors.
Yacht maker’s Italy pivot shows the way for Prada 8 Jun 2023 A year after its Hong Kong IPO, the Chinese-owned maker of boats loved by Hollywood stars is rushing to also list shares in Milan. The move offers scant valuation upside, but hedges geopolitical risks. If Ferretti can pull it off, luxury brand Prada will follow.