Li Ka-shing concession gives investors power boost 8 Oct 2015 The tycoon’s Cheung Kong Infrastructure unit has slightly sweetened its $12.4 bln offer for affiliate Power Assets. The move is designed to pre-empt a public showdown with minority shareholders. But it risks emboldening them to hold out for even more - and resist future deals.
China criticism makes even Li Ka-shing defensive 30 Sep 2015 The Hong Kong tycoon has rejected accusations that he is turning his back on the mainland. Yet the fact he felt the need to issue a defence shows the hostile terrain now facing business leaders in China. Shrill allegations of treachery will only make them less willing to invest.
Li Ka-shing’s power deal is at risk of a jolt 29 Sep 2015 The tycoon’s Cheung Kong Infrastructure unit wants to buy cash-rich affiliate Power Assets for $11.6 bln in stock. Investors have the motive and the means to push for better terms. But they need to believe the rewards of a sweetened offer outweigh the risks of Li walking away.
Aussie vitamins get iron ore-style China boost 18 Sep 2015 A Guangzhou baby-formula firm is gobbling up Swisse, one of Australia’s biggest vitamin makers. The $1 bln deal caps a stunning run for clean-living specialists Down Under. As miners can attest, shifts in Chinese demand can transform an industry’s fortunes for better – or worse.
China brokers’ problems go beyond trading probes 16 Sep 2015 The president of CITIC Securities has been ensnared in an insider-trading investigation. That underscores how China’s stock slump has put brokerages in regulators’ sights. Still, collapsing trading volumes and forced stock-buying are a bigger threat to their bottom lines.
Li Ka-shing’s power deal is a tidy-up too far 8 Sep 2015 The Hong Kong tycoon wants his CKI unit to buy the rest of $18 bln affiliate Power Assets. Li’s latest restructuring would create a simpler, cash-rich firm with lots of M&A opportunities. But the all-share, no premium tie-up doesn’t look great for Power investors.
China bad bank pays high price for respectability 28 Aug 2015 Cinda Asset Management started as a dump for dodgy bank loans but expanded into funds, insurance and brokerage. Now it’s looking to swallow Hong Kong lender Nanyang for around $8.8 bln. At more than twice its own book value, Cinda needs many benefits to make the deal stack up.
Li Ka-shing can pull more levers at CK Hutchison 7 Aug 2015 The Hong Kong tycoon fixed the last big problem in his telecoms empire with a $24 bln tie-up in Italy. With that transaction done, future dealmaking is likely to focus on other parts of his conglomerate. Reviving the listing of retail arm AS Watson is one way to release value.
HSBC faces long march to unlock value 3 Aug 2015 First-half results beat forecasts and its Brazilian unit fetched a pleasing $5.2 bln. Slashing costs and shrinking the balance sheet will take years. Though HSBC shares trade below book value and yield 5.5 pct, there are few obvious catalysts for a re-rating.
Numbers add up to HSBC leaving London 31 Jul 2015 The global bank is reviewing its head office location based on 11 criteria such as economic importance, transparency and tax. A ranking based on data compiled by Breakingviews shows Singapore, Hong Kong and even Toronto are more attractive than HSBC’s current home base.
Chinese tourists leave luxury brands flat-footed 17 Jul 2015 Burberry is the latest label to discover the cost of tracking China’s globetrotters. Hong Kong is losing its appeal as a shopping mecca for mainlanders, leaving brands with spare stores and profit-busting rents. Following luxury’s most prized customers calls for nimbleness.
Chinese shares still look overvalued 6 Jul 2015 Mainland authorities are taking ever-bolder steps to prop up stocks which have dropped almost 30 pct in three weeks. Yet earnings growth is slowing and valuations are still high when compared with other markets. If fundamentals matter, Chinese equities have further to fall.
Hong Kong regulator rides to defence of principles 26 Jun 2015 By rejecting the stock exchange’s plan to weaken “one share, one vote” rules, the SFC has acted for the long-term good. Some companies might follow Alibaba and list elsewhere. But overall, public investors should benefit. It’s a welcome stance as China’s capital markets open up.
Tencent dredges Hong Kong’s murky depths 24 Jun 2015 The tech giant is buying into Mascotte, an HK investment group mainly notable for a disastrous solar-materials acquisition. Financially, the $97 mln deal hardly matters for the $191 bln Tencent. But off-topic, unexplained moves like this should concern outside shareholders.
Weaker shareholder rights a bad omen for Hong Kong 22 Jun 2015 Ditching its “one share, one vote” rule may help the stock exchange lure listings from New York – or Shanghai. But Hong Kong’s standards are already under pressure as China’s capital markets opens up. The willingness to sacrifice long-held principles bodes ill for future reform.
HSBC continues to wind back the clock 9 Jun 2015 Four years since he started pruning the bank, CEO Stuart Gulliver is cutting risk-weighted assets by a quarter and shedding 50,000 employees. HSBC is returning to its roots as an Asia-focussed trade lender, though investors will have to wait almost three years to feel the effect.
Chinese broker cashes in on doped-up stock markets 9 Jun 2015 CITIC Securities could raise $5 bln in a beefed-up Hong Kong share sale. China’s biggest broker is touting more margin financing business and a new strategic partner. Those benefits, plus the country’s stock boom, have anaesthetized investors against the pain of dilution.
Elliott lands glancing blow on cosy HK market 8 Jun 2015 A local court has backed the activist’s gripe about Bank of East Asia selling stock to a friendly investor. Hong Kong firms routinely disregard lethargic shareholders to issue stock at will, abetted by docile directors. But Elliott’s challenge is too narrow to bring real change.
Alibaba fluffs first rule of being a movie villain 4 Jun 2015 The Chinese group’s film-making unit is raising $1.6 bln of equity, diluting shareholders and effectively leaving it a loss-making cash shell. On-screen bad guys who torture the hero usually give a lengthy account of their plans. Investors in Alibaba Pictures don’t even get that.
Jack Ma turns Reorient into free-money factory 1 Jun 2015 The Alibaba founder’s fund is among investors taking control of the Hong Kong investment firm. Though their plans are vague, the shares promptly soared, handing the new owners a $5 billion-plus paper gain. It’s another example of Ma’s involvement creating value from thin air.