Nickel’s return may leave everyone underwhelmed 15 Mar 2022 The London Metal Exchange will restart trading in the commodity on Wednesday, a week after the bourse suspended the market amid epic price rises. The LME’s decision to void trades angered financial investors. New safeguards may irk traditional members it was trying to protect.
Capital Calls: China stock tumble 11 Mar 2022 Concise views on global finance: Shares sink in harsh reminder of deepening rift as U.S. regulators name first Chinese companies at risk of delisting.
Nickel’s emergency stop creates longer-term issues 9 Mar 2022 The LME suspended trading in the metal and nixed trades after prices soared. The fix avoids wider losses, and London’s idiosyncratic market may make this seem a one-off. But commodity producers fretting over Russia may now also worry about how easily they can hedge in future.
Capital Calls: Argentina, Oligarch yachts 4 Mar 2022 Concise views on global finance: Argentina’s $45 bln debt deal is hope trumping experience; Floating assets sometimes worth more than $500 million each are worthy sanctions targets.
Russia crisis is Big Crypto’s coming-of-age moment 3 Mar 2022 Major exchanges like Coinbase and Binance are still open to Russians despite the risk of sanctions evasion. If they fail to spot illicit transactions, regulators will crush the life out of them. If they pass the test – and they might – it may be their ticket to the mainstream.
Capital Calls: Snowflake’s no snowflake 3 Mar 2022 Concise views on global finance: The data warehouse firm doubled revenue, but the stock was whacked. Snowflake’s solid finances mean missteps are valuation conundrums, not existential threats.
Russia exodus tests fund managers’ liquidity limit 2 Mar 2022 Western funds worth over $4 bln have suspended redemptions after Moscow froze equity trading, while MSCI may kick the country out of its emerging market benchmarks. The crisis once again exposes the flimsiness of asset managers’ promise that customers can sell when they want.
Capital Calls: DraftKings, Shake Shack, Fanatics 18 Feb 2022 Concise views on global finance: The online gambling firm predicts fast growth but heavy losses; the U.S. burger chain had disappointing earnings yet its valuation is sky-high; the sports merchandiser teams up with Jay-Z to buy a streetwear firm for a song.
U.S. relisting for Luckin would be hard to swallow 21 Jan 2022 China’s would-be challenger to Starbucks may be plotting a market comeback after $300 mln in fake sales got it booted from Nasdaq. It has restructured and is moving towards profitability, but otherwise is covered with red flags. Even floating on a local bourse would be ambitious.
Tokyo’s prime market misses point of cachet 12 Jan 2022 An overhaul of Japanese stocks has culled the top class designed to lure foreign funds by 16%. Yet because the criteria prioritised size more than better governance, 1,841 still made the cut. A club needs exclusivity to justify premier status. This falls far short.
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.
Bankers fall under China’s offshore shadow 30 Dec 2021 Beijing is requiring foreign financial institutions that help Chinese companies list overseas to register and be monitored. Theoretically it’s easy enough to fill in the forms. In practice it means more due diligence and retroactive risk.
Chinese offshore IPO clarification looks ominous 28 Dec 2021 China’s state economic planner joins the ranks of watchdogs who can block overseas flotations, demanding firms in sensitive sectors hold foreign ownership below 30%. More red tape will further gum up the pipeline, and the rules are worrying for currently listed companies too.
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.
Turkey’s lira prop-up plan is dangerous 21 Dec 2021 President Tayyip Erdogan is guaranteeing deposits against local currency drops. It’s tacit admission Turkey’s banks aren’t immune to fallout from his odd views on inflation and interest rates. Details are fuzzy but putting taxpayers on the hook for the lira is asking for trouble.
Shanghai’s tech board gets welcome IPO flop 16 Dec 2021 The biggest listing on the overheated STAR market this year bombed as shares of biotech giant BeiGene fell 16% on their debut. That finally adds risk to a once-safe bet on triple-digit first-day pops. Regulators fretting about the speculative stock mania can relax a bit.
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.
Capital Calls: Wise, Swedish oil 30 Nov 2021 Concise views on global finance: The 8 bln pound money-changer raised its revenue targets; $10 bln Swedish oil company Lundin Energy may be considering M&A options.