Corporate Governance

Viewsroom: WeWork unfurls the red flags

15 August 2019

The shared-office provider’s long-awaited IPO filing is packed with pointless life-affirming tropes. But it also details a host of conflicts of interest and other risks that should send investors running. Plus: India’s powerhouse Reliance is building a war chest for dominance.

Hong Kong businesses pick an ill-timed ESG fight

13 August 2019

A stock exchange plan to increase disclosure on green issues and governance has met resistance from local firms, wary of extra costs. The city already lags the likes of Singapore on such reporting; protests are hardly adding to its appeal. A corporate victory would be pyrrhic.

India’s bold Kashmir grab raises economic stakes

6 August 2019

New Delhi says an abrupt move to end special rights for the disputed territory will aid development. Kashmir could use more state funds and private cash, but gains will be limited without peace. Serious unrest would also hit a $3 trln Indian economy already in the doldrums.

Greece’s new PM needs to avoid banking own goal

1 August 2019

The fund that oversees state shareholdings in the country’s four big banks has been a force for better governance. Even so, recently elected Prime Minister Kyriakos Mitsotakis may decide to overhaul its leadership. A changing of the guard now would send the wrong message.

StanChart’s Winters makes best of a weak hand

1 August 2019

The emerging market bank is growing, helped by trading revenue and falling impairments. But currency swings, a trade war and rate cuts make Bill Winters’ targets harder to hit. Investors probably shouldn’t begrudge him a salary that's a sliver of what he could have had elsewhere.

SoftBank’s new $108 bln vision is broader, fuzzier

26 July 2019

Vision Fund 2 so far lacks endorsement from prior investors Saudi Arabia and Abu Dhabi. It has plenty of heft, though, and less Saudi money might relieve wary investees. Focus is an issue: targeting anything “tech-enabled” gives Masayoshi Son a very long spending leash.

Nissan’s awful earnings deliver a gift to Renault

25 July 2019

The Japanese car giant’s 95% drop in quarterly earnings has prompted it to announce 12,500 job cuts and plans to reduce capacity. But boss Hiroto Saikawa has previously underestimated how bad things are. That weakens his hand in resisting closer ties with Nissan’s French partner.

Macquarie is both target and role model on pay

24 July 2019

Aussie watchdogs are cracking down on bank remuneration, and a group of shareholders plans to contest Macquarie’s pay at this year’s shareholder meeting. That’s odd, because Macquarie’s practices are pretty sensible – and its rewards pale versus poorer performers on Wall Street.

Fresh attack on China’s zombies can bury some

18 July 2019

Beijing officials are on a campaign to kill off moribund companies. Past versions of this familiar horror flick have ended with local authorities keeping state-owned groups staggering along anyway. But a healthier economy and big ambitions make this sequel worth watching.

Miner exits shift coal spotlight to Anglo American

16 July 2019

BHP is the latest heavyweight to consider a sale of thermal coal assets. That's sensible given weak prices, pressure from investors and a business that is barely material. Anglo's bigger exposure means a tougher choice - with few buyers, there’s a case for staying the course.

Rio sounds copper warning from Mongolian steppe

16 July 2019

The miner's flagship Oyu Tolgoi expansion will be up to 30 months late, and could cost as much as a third more than planned. It’s a fresh blow to a project that has been bruised by local politics. The latest snag is a reminder of why the red metal has become so hard to dig up.

China’s tech funding rut shifts power to investors

11 July 2019

Startup whizz-kids have plenty to bemoan in Hong Kong this week: fewer venture deals in the mainland, lacklustre IPOs and a trade war clouding prospects for all. That marks a change from past exuberance. For those investing, though, it's a chance to be a little more demanding.

IndiGo row makes case for clipping founders’ wings

10 July 2019

The two top owners of India's largest and most profitable airline are at war over an old shareholder deal handing one of them outsize control. Now that the country has laid out strict rules for dual class shares and more, such pacts look like a relic of bad governance past.

Anta outruns short-sellers at surprising pace

9 July 2019

The $18 bln Chinese athletic-gear maker is under attack again, this time from Muddy Waters, which accuses it of fraudulently inflating profit margins. Despite an abundance of doubters, the stock is up a third this year. Resisting scepticism may be a less challenging sport.

Indian media mogul’s buyout buries the tech lead

8 July 2019

Minority shareholders are challenging a valuation of Vineet Jain’s empire. Stakes in Uber and other startups, some acquired in exchange for newspaper ad space, may not be fully reflected in the offer price. It’s a twist on holding company discounts faced by the likes of SoftBank.

The Exchange: Hong Kong’s political crisis

2 July 2019

Michael Tien was among the first politicians from the city’s pro-Beijing faction to oppose the controversial extradition proposal. Just before protesters ransacked the legislature, he spoke with Breakingviews about Chief Executive Carrie Lam’s future and giving residents a vote.

Private equity’s broken record plays on in Japan

27 June 2019

Buyout barons gathered in Tokyo were giddy again about corporate carve-outs, inspired partly by Hitachi. Some of the latest exuberance is merely driven by fresh funds. Although Japan Inc may be changing, there are few signs yet of any bonanza. And sellers now have some leverage.

CEO protest vote would create a new Nomura problem

20 June 2019

Adviser ISS wants shareholders to punish Koji Nagai at an upcoming annual meeting. He has presided over the bank’s first full-year loss in a decade and an embarrassing leak, and has not fixed bigger strategic issues. The trouble will be finding a replacement better able to do so.

Trump gives China’s homegrown tech goal a boost

13 June 2019

Beijing’s move to grant 5G telecom licences early is a show of trade war bravura, given the foreign inputs required. Much of its industrial policy, though, has been about encouraging long-term self-sufficiency. Washington’s assault on equipment-maker Huawei now leaves no choice.

Foxconn leaves room for governance improvement

11 June 2019

Taiwan's $32 bln iPhone assembler has missed an opportunity with its first investor day. A management rejig is encouraging, but stops short of a succession plan. Worse, it fails to clarify departing boss Terry Gou’s future role. Shareholders will be left only a little wiser.