Chinese selfie IPO only works in certain light 30 Nov 2016 Meitu wants a valuation up to $5.2 bln in its Hong Kong listing. Its user base is growing, thanks to features like virtual makeup and skin whitening. But most of its sales comes from selling smartphones. Mainland investors might buy the hype but the look doesn't travel so well.
Foreigners welcomed to Shenzhen innovation bubble 28 Nov 2016 The long-awaited Shenzhen-Hong Kong Stock Connect programme launches next week. China hopes to usher foreign capital into "innovative" concept stocks even as domestic interest starts to flag. Amid all the hype, investors will need to pick carefully.
China effluent enthusiasm will survive short stink 28 Nov 2016 Short-seller Glaucus alleges fraud at sewage specialist CT Environmental, the second scandal in the industry this year. It is a dirty business but investors will hold their noses: with greener policies and urbanization pressures, China’s wastewater sector is anything but the pits.
Asia’s upstart robo-advisers face self-destruction 18 Nov 2016 Automated investment apps are popping up in the region; tech giants like Alibaba are eying the market too. Low fees make it hard to succeed without deep pockets or a large user base. If the U.S. experience is any precedent, small players are destined for the digital scrap yard.
HSBC’s capital cloud lifts but returns remain dark 7 Nov 2016 The bank's capital ratio soared after a shift in the treatment of its stake in Bank of Communications. But net interest margins fell and returns remain below the cost of equity. Fixing that requires HSBC to quickly put capital to work in areas of strength like Asia and the UK.
Needless Chinese haste risks Hong Kong waste 7 Nov 2016 Beijing has preempted the territory's courts by interpreting the Basic Law to prevent two independence activists from taking office. Markets are shrugging as black-clad youths protest, but long-termists in the financial sector should be more rattled about Hong Kong's future.
Hong Kong tax only a breather for property bubble 7 Nov 2016 The territory nearly doubled stamp duty to 15 pct to cool surging prices. It's the toughest measure yet, but continued capital inflows from China will blunt the impact. Barring a big increase in supply, the world's least affordable housing market is likely to remain that way.
Lenovo could follow Dell’s buyout blueprint 4 Nov 2016 Sales keep falling at the Chinese PC giant, and its stock has shed nearly 40 pct this year. If Lenovo's bosses and main shareholder think the market is too pessimistic about its turnaround, there is a ready-made solution: mimic U.S. rival Dell and take the $7 bln group private.
Hong Kong can stand up to Jack Ma 4 Nov 2016 Jack Ma has threatened to list the $60 bln Ant Financial elsewhere if Hong Kong won't innovate. That sounds like code for allowing something like the special sway he enjoys over Alibaba. Conceding to Ma won't fix the exchange's problems. Nor does Ant have someplace better to go.
Hong Kong zombie stocks lurch toward IPO bankers 2 Nov 2016 China Forestry, listed in 2009 and suspended from trading two years later, has caught up with co-sponsors Standard Chartered and UBS. Both banks just revealed probes by the Hong Kong regulator. If that's the pace of justice, there are dozens more undead firms that could lash out.
StanChart’s returns goal hinges on cost rigour 1 Nov 2016 The UK emerging markets bank is making good progress on shedding its worst assets. But with third-quarter revenue only flat on the previous three months, it’s all the more important to hit cost targets. The challenge is doing so without losing more business.
Asia billionaire hunters go from predators to prey 31 Oct 2016 Fallout from Malaysia’s 1MDB fund scandal means banks must vet the region's wealthy more keenly. Tougher compliance needs come at an awkward time for Credit Suisse and Julius Baer, which have been hiring furiously. They also explain why subscale peers like ABN Amro may want out.
UBS probe neatly captures Hong Kong market dilemma 31 Oct 2016 Regulators are looking into UBS's role in local IPOs. Whatever the outcome, it epitomises a clash between lofty governance goals and too many banks chasing sometimes questionable listing candidates. Long-term, global institutions would gain from taking the high road.
UBS ban in Hong Kong would compound terrible year 28 Oct 2016 The Swiss bank says a probe into some IPOs might put its corporate finance business in the Asian city on hiatus. UBS is struggling in Hong Kong, and has slid down the league tables. With third-quarter results showing global fees down more than rivals, this comes at a bad time.
Hong Kong swats short-seller too hard 20 Oct 2016 Banning U.S. short-seller Andrew Left from Hong Kong's stock market for five years, and threatening future criminal penalties, is harsh. This will hurt the market's long-term health. The timing is also unfortunate, given concerns over rising mainland influence on the city.
Evergrande finally hits on some sensible M&A 4 Oct 2016 The debt-laden developer plans to swap assets for control of a mainland rival. By acquiring the $1.6 bln Shenzhen Real Estate, Evergrande may win higher valuations onshore. Assuming the overhaul gets past regulators and investors, this makes more sense than other recent deals.
Li Ka-shing’s banking foray is an odd throwback 30 Sep 2016 The Hong Kong tycoon, his son, and foundations have emerged as a near-3 pct shareholder in the newly listed Postal Savings Bank of China. The indirect stake is worth $1.4 bln. Li has dabbled in banks before. But the "performance-linked notes" suggest he is treading cautiously.
China ties can help Hong Kong catch up in fintech 30 Sep 2016 The city is playing catch-up with Singapore in financial technology. But as a gateway to mainland China, Hong Kong has two big advantages: easy access to a huge market, and proximity to tech giants Alibaba and Tencent. Those benefits should help it close the gap.
Powerful owners hobble Asia’s governance reform 29 Sep 2016 Asian corporate governance is improving despite frequent scandals, according to a review, which goes on to call on institutional investors to speak up more. Fair enough, but majority owners can still bully outsiders so long as the latter lack say over independent directors.
China’s HK office obsession locks in low returns 29 Sep 2016 Mainland companies such as Evergrande are snapping up prestigious Hong Kong office buildings. With rental yields below 3 pct, these seem like poor investments. That suggests buyers might also be looking for ways to guard against a further selloff in the yuan.