Hong Kong

HSBC would be unwise to fall back on the Fed

22 Feb 2022

Boss Noel Quinn reckons his mega-bank will hit its 10% return target a year early if interest rates rise as markets expect. Tighter monetary policy brings its own risks, however, and Hong Kong presents fresh problems. More self-help, including on sticky expenses, would be wise.

Chinese e-commerce IPO hawks an Alibaba antithesis

17 Feb 2022

Huitongda mainly sells electronics and fertiliser to wholesalers in rural areas. It's a low-margin and simple business compared to the expansive shopping empire run by its large backer. Amid the tech rout, the $3 bln company's Hong Kong stock sale ticks some of the right boxes.

Pru CEO change puts HSBC and StanChart on the spot

10 Feb 2022

Mike Wells is retiring after shaking up the $46 bln insurer and redirecting its focus to emerging markets. Whoever replaces him will be based in Asia instead of London. Where the top brass sit depends on many variables, but the job is harder to do far from the main hub.

Elliott flub hurts Hong Kong investor activism too

31 Jan 2022

The pushy shareholder has thrown in the towel on its seven-year battle with Bank of East Asia. It looks like a costly defeat for Paul Singer’s firm. That an industry titan failed to break through family ties so prevalent in the city shows the hazards for similar campaigns.

Ferretti float may be back in same boat

24 Jan 2022

After a bold $1.2 bln valuation target sank its Milan IPO effort in 2019, the Italian yacht maker owned by China’s Weichai is now sailing for Hong Kong. Growth is buoyant, but luxury goods have charted a patchy course on Asian bourses. It’ll be hard, again, to make a splash.

China plays lonely game of Covid whack-a-hamster

19 Jan 2022

As Hong Kong culls 2,000 of the rodents, Beijing is blaming overseas mail for spreading Omicron. Dogged devotion to Covid-zero and the resulting disruptions are becoming increasingly farcical, and costly, as the rest of the world learns to live with the virus.

Peninsula Hotel owner checks in for expensive stay

19 Jan 2022

Hong Kong’s Kadoorie family paid almost twice market rate to add 12% to its controlling stake in the 156 year-old chain with luxury hotels from Paris to Tokyo. With shares trading at a third of net asset value, it suggests some post-pandemic tourism plays have yet to be booked.

Asia comes late, with hangups, to the SPAC party

13 Jan 2022

Two blank-cheque companies are listing in Singapore. Share sales will trickle out of Hong Kong too. Yet strict rules set in both centres suggest neither will match New York’s wild success. That’s fine if it protects a repeat of the region’s past disasters with shell firms.

Southeast Asia still loves New York

10 Jan 2022

While U.S.-listed Chinese companies move home, Indonesian and Vietnamese startups are eyeing a berth in the Big Apple. Unlike their northern peers, these hopefuls are starting with home floats. Ensuring IPOs fill local coffers first is good politics and makes financial sense too.

Dissent endures for Hong Kong shareholders

6 Jan 2022

The buyer of camera components maker Yorkey Optical lifted its offer by 14% after pushback from activist investor David Webb while minority owners thwarted tycoon Joseph Lau’s attempt to take his Chinese Estates private. Small financial victories carry greater meaning these days.

China Mobile punches up direct-listing numbers

5 Jan 2022

A year after getting run out of New York, the telecom titan sold $8 bln of equity in Shanghai while initiating a $13 bln stock buyback in Hong Kong. Deploying its bloated cash pile is overdue, but such contortions also support the idea of listing shares without raising capital.

Nio’s European road trip will earn bragging rights

4 Jan 2022

The Chinese electric-car maker will win foreign fans with a marketing splurge. While it may take years to grab a big share of the $120 bln global market for battery-powered rides, even modest success abroad can put it ahead of rivals, boosting its sales and stock in 2022.

Brace for a $600 bln Chinese escape from New York

22 Dec 2021

Mainland-based companies with U.S. listings face regulatory fire from both Beijing and Washington. Retreats are accelerating, as ride-hailing outfit Didi joins the exodus mere months after its $4 bln IPO. Hong Kong offers one clear route, but there will be a wave of buyouts too.

Richard Li pays steep price for round-trip fare

15 Dec 2021

His Hong Kong-based insurer FWD has raised $1.4 bln from Apollo and others as its $13 bln New York IPO plan fizzles. A 30% valuation discount reflects the need to keep investors sweet ahead of a likely listing back home instead. Super-voting stock also will have to be scrapped.

U.S. blacklist puts China AI into local mode

14 Dec 2021

Artificial intelligence startup SenseTime is delaying its $800 mln Hong Kong IPO after the mid-deal shock of Washington’s investment ban. Foreign backers can be mostly replaced by mainland money. But the boycott ends the sector’s global ambitions and accelerates tech decoupling.

Cancer biotech’s triple listing has singular risk

13 Dec 2021

Beigene is raising $3.3 bln on Shanghai’s STAR market, making it the first company to trade there and in New York and Hong Kong. That suits its ambition to be seen as a global business and gives it enviable funding options. But its listing largesse is at the mercy of geopolitics.

Money travels in Hong Kong even if people can’t

10 Dec 2021

The HKMA and PBOC trotted out a roster of banking and regulatory grandees to defend the city’s position as a financial hub. Hosting such an event at all suggests extended isolation is a growing worry. They make a strong case, however, about the power of capital flows into China.

Glove maker’s governance spoils pandemic bounce

9 Dec 2021

Top Glove, the world’s largest maker of protective handwear, has won investor support for a third listing in Hong Kong. Labour concerns derailed the Malaysian firm’s earlier attempt when markets were hot. With shares back near pre-pandemic levels, the delay has cost it dearly.

Alibaba looms larger than Beijing in Weibo IPO

3 Dec 2021

China's $8 bln answer to Twitter is readying a secondary listing in Hong Kong. The company’s sway over public opinion means it is a frequent target of censorship campaigns and regulatory crackdowns. That makes the e-commerce giant's 30% stake a political liability for both.

SenseTime IPO could help HSBC gain recognition

26 Nov 2021

It’s the only Western lead adviser on the AI dragon’s mooted $2 bln Hong Kong market debut. The issuer’s spot on a U.S. blacklist adds a degree of difficulty to the large Chinese stock sale. That makes it an especially bold way to showcase renewed investment banking ambitions.