China’s art market paints itself into a corner 13 Mar 2015 The People’s Republic has become one of the world’s largest art hubs, with sales of $12 bln in 2014. Yet minimalist cross-border trade sketches a picture of an introverted giant: heavy duties and local tastes mean most of the action is staying firmly within China’s borders.
Credit Suisse buys some insurance with Pru CEO 10 Mar 2015 Hiring Tidjane Thiam to replace Brady Dougan should bring a fresh perspective to capital and cost conundrums. The former consultant may encounter skeptical dealmakers and regulators. Even so, his decision to leave the fast-growing UK insurer is a vote of confidence in banking.
HK property shows limits of new central bank tools 3 Mar 2015 Regulators in the former colony have spent five years tightening mortgage controls, but real estate prices are still rising. It’s a reminder not to expect too much from “macro-prudential” policies. Authorities can stop banks from lending too much. Deflating a bubble is trickier.
Asian telco IPOs show investors still yield-hungry 26 Feb 2015 Investors snapped up shares in Thailand’s Jasmine broadband fund and may do the same for Hong Kong provider HKBN, reflecting the view that U.S. interest rates will remain lower for longer. As long as money remains cheap, shareholders will chase generous and reliable dividends.
HSBC’s operating woes trump Swiss tax furore 23 Feb 2015 CEO Stuart Gulliver’s offshore accounts bring new scrutiny of past fiscal fiddles. They also raise the bar for future good behaviour. The main concern for investors, though, is the bank’s lacklustre financial performance. Even a reduced 10 percent ROE target is some way off.
China developer rescue more grey knight than white 6 Feb 2015 The purchase of 49 percent of defaulted property group Kaisa by rival Sunac gives offshore bondholders hope of getting their money back. For the wider sector, though, it’s only a problem deferred. While Kaisa may have been saved, there are only so many brave buyers to go around.
Li Ka-shing buys way to European telco credibility 27 Jan 2015 The $15 bln move by the Hong Kong tycoon to bulk up in UK mobile through his conglomerate Hutchison Whampoa may be the end of a difficult chapter. Li has struggled to profit from European 3G. By doubling down on the bet, he can build the scale needed to move forwards.
Cheap oil lubricates Li Ka-shing’s corporate rejig 12 Jan 2015 Asia’s richest man is shifting a 6 pct stake in Canada’s Husky Energy to his holding company as part of a broader shake-up. The move is vital to keeping Li’s grip on the telco-to-property empire. Though shareholders may object, the falling oil price has worked in their favour.
Li Ka-shing converts to shareholder value religion 9 Jan 2015 Asia’s richest man is splitting his empire in two: a property company, and everything else. The reshuffle should help shrink the conglomerate discount while allowing Li to leverage up in real estate. It’s an overdue recognition there is value to unlock in the $85 billion empire.
Tycoon graft trial shows HK law worth fighting for 19 Dec 2014 A former official and a property mogul have been found guilty of charges relating to misconduct in public office. The transparency, unpredictability and lack of a neat ending make it very different from similar cases in mainland China. That’s just the way rule of law should be.
BAIC Motor IPO offers slow road to China luxury 15 Dec 2014 The Chinese automaker’s unracy $8.6 bln valuation reflects the slowdown of China’s car market. BAIC is betting on its premium venture with Daimler for growth. That has promise, if investors can get comfortable with what’s still a mass-market firm without control where it counts.
Protests made Hong Kong more hopeful, less certain 12 Dec 2014 The 75-day occupation is over, but the democracy movement remains strong. The student-led protests have polarised politics, exposed economic inequality, and challenged Chinese rule. That makes Hong Kong’s future harder for businesses and investors to predict.
Investors carried away with HK Exchange’s options 18 Nov 2014 Expectations for the link-up with Shanghai have boosted shares of the Hong Kong stock market’s owner by 33 pct this year. The tightly-controlled scheme alone doesn’t justify the rally. Investors are betting the connection will get bigger and broader. They will need to be patient.
China’s stock connection: a guide for the perplexed 14 Nov 2014 Hong Kong and Shanghai are about to activate a long-awaited link between their exchanges. The hook-up could have big implications for investors. But it’s also restrained by China’s determination to limit cross-border capital flows. Breakingviews explains what’s at stake.
Hong Kong protests lay minefield for business 31 Oct 2014 The democracy debate is dividing the city. For companies, keeping quiet is less risky than expressing an opinion that could irk customers, staff, or Beijing. It’s even harder for employees who must tread the blurry line between free speech and representing corporate interests.
Hong Kong protests reach polite impasse 28 Oct 2014 The “umbrella movement” has lasted a month, confounding predictions of apathy, chaos, or a Beijing crackdown. A compromise on democratic reform is as distant as ever. Yet Hong Kong’s mostly civil activists have changed the city’s political geography for good.
Missed stock connection hurts China’s reform drive 27 Oct 2014 Regulators have delayed a flagship scheme to connect the Hong Kong and Shanghai exchanges. Protests, market jitters and tax issues may have been factors. The problem is that investors are in the dark. The uncertainty damages confidence in the plan, and in other Chinese reforms.
China’s capital defences have sprung a major leak 22 Oct 2014 Strict controls should shield China from flighty foreign capital. In practice, investors have snuck in at least $725 billion of short-term money since 2008. That makes the economy vulnerable to outflows. Central bankers are saddled with preventing a trickle becoming a flood.
Hong Kong protests’ silver lining for umbrella IPO 22 Oct 2014 Pro-democracy demonstrators are clouding luxury sales in the Chinese territory. Yet the movement’s symbol has cast a light on Jicheng Umbrella’s upcoming listing. International brolly sales are on the up. After the smoke clears, however, the main worry is rising labour costs.
Hong Kong tycoons can be part of protest solution 21 Oct 2014 The city’s business leaders have outsize influence over local politics. Relaxing their grip on special corporate votes would be a symbolic gesture to pro-democracy activists – and may help preserve the stability that has served tycoons, and their investors, so well for so long.