Review: Hong Kong’s recipe for more instability 27 Oct 2017 Three short books analyse the city’s politics after 20 years in Chinese hands. Freedom sets it apart from the mainland, but without full democracy to match Hong Kongers rely on protest instead. An ineffective executive and an implacable Beijing turn this into a combustible mix.
Activist broadcasts Japanese governance weak spot 25 Oct 2017 A UK investor wants TBS to sell corporate stakes and return cash to shareholders. Fair enough: The $3.5 bln TV network owner has little obvious use for Tokyo Electron and other holdings. Despite some broader progress, it will take more pressure to break this bad Japan Inc habit.
Tencent’s books are less gripping than its games 24 Oct 2017 Publishing unit China Literature wants to list in Hong Kong at a value of up to $6.4 bln. Sales and earnings are taking off. But e-books are less lucrative than online games, with a smaller market and a shorter track record. This does not merit a valuation to match its parent.
UBS no longer lonely in Hong Kong’s IPO sin bin 12 Oct 2017 The securities watchdog says it is probing shoddy work by 15 firms on Hong Kong listings. That takes some heat off UBS, the only active IPO bank named so far. A lot has changed in recent years, but the regulator’s zeal in cleaning up the market is nonetheless welcome.
Hong Kong’s new leader clears first hurdle 11 Oct 2017 In her maiden policy address, Carrie Lam unveiled lower taxes for small firms and more affordable housing for the middle class. Her proposals mark a decent start for tackling the city’s economic divide. If she follows through, Lam could earn support tackling more divisive issues.
HSBC’s next challenge is how to grow responsibly 9 Oct 2017 The global bank wants insider John Flint to replace CEO Stuart Gulliver, according to the Sunday Times. If approved, he will take over a slimmed-down lender trading at 1.2 times book value. Investors now want growth – but Flint and Chairman Mark Tucker should heed past mistakes.
More for China than London in Russian hydro IPO 5 Oct 2017 Oleg Deripaska’s En+, which controls aluminium outfit Rusal, aims to raise $1.5 bln in an LSE and Moscow listing. It touts a green model, but public investors will have little say. The cornerstone backer, a partner of the PRC group that just bought into Rosneft, may do better.
Telco banks may be consigned to fringes of finance 4 Oct 2017 Orange and Altice plan to offer banking services to capitalise on a boom in digital finance. It’s a novel solution to slowing telecom revenue growth, and similar ventures were a hit in Africa. But mobile operators are entering a crowded field, with no obvious advantage.
Hit IPO undercuts the case for new Hong Kong board 28 Sep 2017 Shares in Chinese online insurer ZhongAn soared on their debut. This deal suggests the bourse’s push for a new venue with looser standards is misguided. The city should be able to lure desirable Chinese tech listings just fine by making tweaks to the existing regime.
Macau mobster’s ICO is ideal test for watchdogs 26 Sep 2017 Former gangland boss “Broken Tooth” is backing a $500 million initial coin offering, according to Hong Kong’s SCMP. The convicted money-launderer’s deal lends ammo to those calling for the suppression of new crypto-currencies. But this is a great opportunity to refine rules.
AIA’s new boss gets a good deal in Australia 21 Sep 2017 New CEO Ng Keng Hooi is buying local life insurance units from the scandal-hit CBA. The move shores up AIA in an important market. Growth at the targets has been lacklustre. But a headline price of $3 bln implies a slim premium, with potential to grow sales and cut costs.
Hong Kong is better off without dual-class shares 14 Sep 2017 Hong Kong’s securities watchdog has conceded in a battle for control over listing approvals, says the SCMP. Regulators can still reject proposals for unequal voting rights, which might lure tech IPOs at the expense of governance. But they'll need to get used to being unpopular.
Chinese web grocer’s IPO requires a strong stomach 14 Sep 2017 Food giant COFCO wants to raise up to $600 mln floating an online supermarket. Sales are growing as web shoppers splurge on fresh produce. But the group is investing heavily in logistics. Throw in a costly price war with Alibaba and others, and investor appetite may be lacking.
Hong Kong’s fresh Aramco pitch is flawed 5 Sep 2017 Stock exchange boss Charles Li is pushing a "Primary Connect" scheme allowing Chinese punters to buy into listings in the city. The aim is to lure the bumper Saudi IPO with the prospect of a flood of retail money. But mainland investors have a better playground at home.
Carrefour’s ills demand Tesco-like revamp and more 31 Aug 2017 The French supermarket said full-year operating profit could fall 12 percent, partly due to stiff competition at home. The grocer’s new CEO faces even more challenges than Tesco’s Dave Lewis did three years ago. Domestic market share is shrinking and its online offering is weak.
India’s tax attack on Li Ka-shing is a bad call 30 Aug 2017 New Delhi wants to wring the same taxes out of buyer and seller in an old telco deal. Slapping a $5 bln demand on Hong Kong’s CK Hutchison, while also chasing Vodafone, is farcical. If India really wants to end “tax terrorism” it should change its law and rein in bureaucrats.
Macau tycoon’s movie spinoff is worth watching 29 Aug 2017 Lawrence Ho’s Melco International wants to spin off Studio City, a film-themed resort in China’s gambling enclave. The business has been in need of a script doctor. New cash would help it stay competitive and the listing would let Studio City’s two other backers exit stage left.
Samsonite luggage could travel more 24 Aug 2017 The world's largest luggage-maker reported flat earnings in the first half, as it digests a big acquisition. Alone among fashion stocks, Samsonite offers a unique pure play on travel. But for all its globe-trotting image, it looks over-dependent on American demand.
Trading floors send hopeful signs on disruption 21 Aug 2017 Hong Kong’s bourse is closing its trading floor, the latest big exchange to do so. Globally, brokers in bright jackets have had a good run, given how little sense “open outcry” trading makes today. Nostalgia can protect some jobs from automation for a surprisingly long time.
Jack Ma’s MassMutual deal shows promise 18 Aug 2017 The Alibaba founder’s unit Yunfeng Financial is buying MassMutual’s Hong Kong arm. The $1.7 bln deal with the U.S. insurer helps turn Yunfeng into a broader financial group, by adding insurance and pensions operations. Once again, Ma is melding online and offline businesses.