Fintech

Tencent is stuck in a losing battle with Beijing

28 August 2019

A year after a video-games crackdown hit the web giant, its $21 bln music-streaming arm may be under antitrust scrutiny. That makes Pony Ma's hopes of building an entertainment empire look fragile. It’s a reminder too that China's tolerance of its new economy champions is waning.

JD deserves to be in trade-war tech discount bin

9 August 2019

Chinese new-age stocks have turned volatile. Loss-making JD, the $40 bln Alibaba-rival, has lost up to one fifth its value since July. The retailer’s focus on sales of big-ticket items make it especially vulnerable to slowing growth and trade tensions. Rivals look more nimble.

Masa could do with more Buffett at SoftBank

7 August 2019

Quarterly net profit rose 259% on a big stake sale, but operating income fell. More stable cashflows at Masayoshi Son’s group barely cover loan interest. SoftBank is likened to Berkshire Hathaway, which has steadier income from duller companies. That may be worth emulating.

The Exchange: China’s unicorn squeeze

5 August 2019

Mainland startups are under pressure, as once-plentiful funds dry up. Jixun Foo, managing partner at GGV Capital and a backer of tech giants like Didi Chuxing, discusses with Alec Macfarlane why the drop-off in financing could ultimately benefit investors.

Banking tests Jack Ma’s lemons-to-lemonade skills

1 August 2019

China makes life deliberately hard for online lenders like MYbank, backed by Alibaba's founder. The bank is now raising capital, but what it really needs are elusive deposits. Still, MYbank is growing and profitable, and Ma has experience at being the financial underdog.

JPMorgan shows fintech lender who’s boss

29 July 2019

Shares in online upstart On Deck plummeted more than 25% after Jamie Dimon’s $377 bln bank decided it no longer needed help sourcing small-business loans. That may be an overreaction. But it’s a reality check: Supposed financial disruptors need banks more than banks need them.

Gamer favourite Razer’s next level demands focus

23 July 2019

The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.

Lufax sounds Beijing death knell for peer lenders

18 July 2019

China’s top peer-to-peer lender plans to exit the sector, the most telling sign yet that a regulatory crackdown could kill the industry. The Ping An unit and one-time IPO candidate can fall back on money management and other forms of lending. Rivals may be less lucky.

Stalling Didi scrabbles to rev its China engine

18 July 2019

The ride-hailing app may try to raise a fresh $2 bln from investors. Even with a dominant share of its home market, loss-making Didi is struggling with regulatory demands and a plethora of small rivals. Lacklustre debuts from rivals Uber and Lyft may put off new backers too.

SoftBank’s robotics IPO faces a reality check

17 July 2019

China’s CloudMinds, 35% owned by Masayoshi Son’s Vision Fund, is seeking $500 mln in a U.S. float. The loss-making robot startup reckons AI-powered androids are tomorrow’s cleaners. It’s a tough sell in the real world, where most Chinese tech floats this year are now underwater.

Tencent holds key to China’s e-sports bonanza

15 July 2019

DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.

Amazon could be a smart shopper in Southeast Asia

8 July 2019

The U.S. e-commerce giant pushed into Singapore in 2017, but hasn’t tackled the region's larger, faster-growing markets. Indonesia’s $7 bln Tokopedia and Alibaba-owned Lazada are among those scrapping for dominance. Amazon would be a formidable rival if it bought Sea's Shopee.

UK’s fallen fintech star highlights sector perils

2 July 2019

Funding Circle shares dropped 20% after it cut growth forecasts in half. The $600 mln peer-to-peer lender’s post-IPO decline underscores the trade-off between managing risk and meeting investors’ growth expectations. Regulators should be on the lookout for less prudent rivals.

Tech’s finance push is disrupting regulators too

25 June 2019

Innovations like Facebook’s proposed digital currency challenge established banking rules. New arrivals are hard to pin down, weaken existing players, and invert the risks and rewards of competition. A joined-up global response is necessary - but will be hard to agree.

Facebook throws down crypto-gauntlet to critics

18 June 2019

The social network’s poor track record on privacy makes it an unlikely creator of digital money. Yet it boasts 2.4 bln users and has enlisted some of the biggest names in tech and finance as partners. The new currency, Libra, is a bet that Facebook’s trust problems are overblown.

Sweden provides a cautionary digital tale for HSBC

18 June 2019

Hong Kong’s new online banking licences open the UK-based titan to new challenges in a market that accounts for 30% of pre-tax profit. Scandinavian giants such as Swedbank quickly fell prey to startups. And HSBC will be up against the likes of tech-savvy Alibaba and Tencent.

U.S.-PRC tensions upend tech funding supply chain

4 June 2019

American venture capitalists pumped a record $19 bln into Chinese startups in 2018 while flows the other way reached a high of $3.6 bln. Tougher foreign-investment rules and rising nationalism are set to add friction to capital movement, creating new winners and losers.

Payments bonanza has spoils even for latecomers

28 May 2019

Global Payments’ $22 bln merger with Total System Services is the sector’s third big deal this year. What it lacks in first-mover advantage it makes up for with sensible terms – the premium is less than FIS is giving Worldpay. Missing consolidation would have been a worse fate.

Dimming Huawei could help recharge Xiaomi phones

20 May 2019

The Chinese telecom group led by Ren Zhengfei may have lost access to Google's apps and services. This setback hits as $34 bln Xiaomi offset fewer total handset shipments last quarter by selling pricier models. It would further benefit from a weaker Huawei in Europe and beyond.

Tencent need not envy Jack Ma’s finance fame

20 May 2019

The $432 bln tech giant has offered investors a peek into its mobile money arm. It is accelerating into payments and wealth management, catching up with the Alibaba founder’s Ant Financial. Ma’s aggressive expansion rankled bank regulators. Tencent would be wise to stay low-key.