Chinese retail investors deserve more respect 23 Mar 2021 Stereotyped for playing $3 trln of shares like poker chips, local traders are getting sophisticated even as amateurs upend U.S. markets. Structural reforms, crackdowns on shadow credit and tech upgrades have attracted more sober savers. They might cushion falling markets.
China’s Quora haunted by own existential question 23 Mar 2021 Zhihu, the country’s largest online Q&A platform, seeks a $6.4 bln valuation in a New York IPO. It narrowed losses and doubled sales last year thanks to a membership drive, but the business plan has holes. The price also looks extremely rich given peers’ struggles.
Capital Calls: Bank M&A, Wine trades 19 Mar 2021 Concise views on global finance in the Covid-19 era: Sabadell’s decision to keep its UK unit nixes hopes of a deal with BBVA; U.S. vintner Duckhorn’s IPO ups pressure on Treasury Wine.
Luckin may grow into its fraudulent numbers 18 Mar 2021 The bankrupt Chinese coffee chain has agreed a bondholder deal that implies both sides are upbeat about its future, a year after news of faked sales jolted investors out of a caffeine high. Breakingviews calculates Luckin may be percolating those figures for real by September.
China’s Tesla wannabes will drive closer to home 18 Mar 2021 The country’s electric-vehicle makers have so far chosen New York to charge up on capital. Now three of them, Nio, Li Auto, and Xpeng, may plug into Hong Kong to raise some $6 bln. If green-car exuberance follows in their wake, the trio will open a new venue in the race for cash.
China’s Zillow builds hope for hard-up developers 17 Mar 2021 Ke’s adjusted net profit tripled in 2020 despite Beijing’s hawkish tone on frothy prices. The $77 bln Tencent-backed home broker is worth more than its U.S. peer and Australia’s REA combined. Its success is tempting property giants to get stuck in but the model is hard to copy.
Unloved Chinese car site deserves a test drive 16 Mar 2021 The $12 bln online dealer Autohome raised $688 mln in its Hong Kong secondary listing, 30% less than initially planned. It’s not a sexy electric-vehicle maker, but an asset-light model and 40% net profit margin bests peers. As demand recovers, its current discount seems unfair.
Danone CEO exit gives France governance upgrade 15 Mar 2021 Boss Emmanuel Faber is leaving the 42 bln euro yoghurt maker after pressure from activist investors. It shows even French companies once declared strategic by the government are not safe from uppity shareholders. Underperformers whose chair is also CEO are now potential targets.
Caymans may provide shelter in buyout storm 15 Mar 2021 Lowball takeover bids from bosses at China Biologic and Sina are tempting investor lawsuits in the Caribbean islands. Such M&A valuation challenges understandably have petered out in Delaware. Minority shareholders in Chinese companies, however, could use some extra protections.
Grab listing offers up an uber Uber 15 Mar 2021 Merging with a U.S. SPAC might value Singapore’s ride-hailing-to-food delivery giant at $40 bln. New bets on fintech expand its range beyond its U.S. peer and backer, and put it on a bumpier path to profit. But founder Anthony Tan can count on a Southeast Asian scarcity premium.
Grocery wars may hoover up JD’s profit crumbs 12 Mar 2021 Quarterly sales at the Chinese online retailer rose 31% to $34 bln from a year earlier. But $146 bln JD is barely breaking even and a push into online supermarkets, where rival Alibaba is muscling in too, will clip profitability. Boss Richard Liu is testing investor patience.
Coupang lives up to Masayoshi Son’s vision 11 Mar 2021 The South Korean e-commerce phenomenon is worth $109 bln after its shares popped 81% on their New York debut. Coupang has qualities synonymous with SoftBank tech bets: fast growth, lofty valuation, and a hyped-up founder. At least its path to profit has been modelled by Amazon.
Capital Calls: Digital art 11 Mar 2021 Concise views on global finance in the Covid-19 era: A blockchain-protected work by Beeple sold for $69 million at Christie's.
Capital Calls: McKinsey, Celebrity SPACs 10 Mar 2021 Concise views on global finance in the Covid-19 era: McKinsey’s new boss isn’t new enough; the SEC tells investors to be careful of celebrities bearing SPACs.
Panasonic turning dial too far on $6.5 bln deal 10 Mar 2021 After paring some sprawl, the electronics giant may now buy the rest of supply-chain software developer Blue Yonder. The faster-growing tech would help lift profitability, but at a hefty price of 40 times forecast EBITDA. Some $2 bln of erased market value speaks to the overload.
JDE Peet’s spilt milk has lessons for IPO hopefuls 9 Mar 2021 Shares in the $19 bln JAB-backed coffee group dived after weak 2021 guidance. Rivals Illy and Unilever, which may spin off its tea arm, will shudder at the L’OR maker trading below its May IPO. More marketing spends and premium drinks could set them apart in any future listings.
Chinese developer undercuts Wall Street’s ESG push 9 Mar 2021 Even after Seazen founder Wang Zhenhua’s imprisonment for child molestation, BlackRock, Pimco and others own the company’s bonds. Although his son now chairs the $15 bln group, Wang still controls it. Such examples make socially conscious investor messages sound like lip service.
Capital Calls: American Airlines, Crypto PayPal 8 Mar 2021 Concise views on global finance in the Covid-19 era: The U.S. carrier is issuing new debt and hocking some airline miles to pay back the U.S. Treasury loan that carried restrictions on pay and dividends; PayPal investors give a shrug over another dive into bitcoin-land.
U.S. SPACs are a first step for Asian tech giants 8 Mar 2021 Walmart’s Indian e-tailer Flipkart is mulling a New York debut via a blank-cheque firm valuing it at $35 bln. Other wannabe issuers in emerging Asia are eyeing dual listings to stay close to home. If China’s any guide, complex structures will materialise sooner rather than later.
Jardine picks opportune moment for historic buyout 8 Mar 2021 The Mandarin Oriental owner will pay $5.5 bln to buy out its fellow holding company, unwinding a 1980s-era structure designed to fend off tycoons like Li Ka-shing. A low valuation and cheap funding make it a smart time for the storied Hong Kong trading house to reduce complexity.