Western luxury brands’ China dilemma will worsen 14 Aug 2019 Givenchy, Swarovski and Versace have made grovelling apologies to Beijing for incorrectly implying Hong Kong is a country. The humility comes easily now. Abasement would become more painful, and costly, if China turns up the heat on the special administrative region’s protests.
Prudential shrugs off Hong Kong struggles 14 Aug 2019 Strong Asian growth propelled the London-listed insurer to a 14% year-on-year increase in first half operating profit. Management is focusing on a demerger of the UK business to boost Pru’s lowly valuation, but unrest in its largest Asian market may cast a shadow on sentiment.
Hong Kong businesses pick an ill-timed ESG fight 13 Aug 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.
Cathay Pacific yields to its Beijing co-pilot 12 Aug 2019 The Hong Kong carrier will allow Chinese authorities to vet staff flying to and over the mainland, as anti-government protests heat up at home. “Overly radical" employees will be kept away. Local roots and links leave Cathay and parent Swire vulnerable, and with limited options.
Hong Kong protesters strike market nerves at last 8 Aug 2019 Blockades and walkouts roiled the city this week. Investors have begun to show signs of anxiety: the benchmark index has given up 2019 gains, though other troubles have hardly helped. Beijing may not mind if protests squeeze business. There will be more disruption to price in.
Hong Kong protests cloud Cathay Pacific’s skies 7 Aug 2019 The $5 bln airline delivered decent earnings and expects a better performance in the second part of the year. It won’t look so rosy, though, if anti-China clashes continue and prompt flyers to pick other hubs. Worse, Cathay’s ties to Air China are unlikely to provide shelter.
Victor Li is a half mark up on Hong Kong’s tycoons 1 Aug 2019 Political unrest is a threat to top conglomerates with a big focus on the Fragrant Harbour. Earnings at Li’s CK Hutchison put a spotlight on the group’s shift away from the territory. Global growth is slowing and currencies are volatile, but a diversified bet still looks better.
Viewsroom: UK’s new PM looks for the exit 25 Jul 2019 Boris Johnson helped persuade Britons to vote to leave the EU. London’s former mayor now leads the country – and may find his pledge to quit the European bloc hard to keep. Meanwhile, U.S. watchdogs are circling Amazon, Alphabet, Apple and Facebook. Plus: Protests rock Hong Kong.
Corporate activism tastes different in China 23 Jul 2019 Soft drink Pocari Sweat is caught in a firestorm after it pulled TV ads in apparent support of Hong Kong protests. Such statements can pay off for brands that have political influence, or stand to win more friends than enemies. With Beijing involved, neither is usually the case.
Hong Kong demonstrators risk muddling the message 19 Jul 2019 As the city's tycoons will attest, scale comes at a cost. Protests first focused on extraditions to the mainland, but as the leaderless movement has grown, so too have flare-ups around issues like border traders. That is hitting business; it may also squander a chance for change.
Richemont’s jewels overcome slower watches 18 Jul 2019 Protests in Hong Kong did enough damage to merit a mention as sales of timepieces, the 40 billion euro luxury group’s No.2 category, fell in the quarter to June. But jewellery and online channels helped produce 9% top-line growth, underlining the Swiss group's robust portfolio.
Hong Kong chief’s humiliating retreat comes late 9 Jul 2019 Carrie Lam says her extradition bill is dead. The admission of failure is welcome but also overdue. She is bowing to get demonstrators off the streets; to regain the confidence of CEOs, investors and citizens, the city's leaders will have to show they are listening more closely.
Hong Kong protesters score Pyrrhic victory 2 Jul 2019 A furious faction broke into the city’s empty legislature and trashed it, deepening a crisis for Chief Executive Carrie Lam. The violence will weaken some of the movement’s support. It also may spook big business and give Beijing a pretext to dig in. There’s little to celebrate.
The Exchange: Hong Kong’s political crisis 2 Jul 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.
A “shareholder” vote would help Hong Kong CEO 28 Jun 2019 Locals want Carrie Lam to quit her rare political chief executive role. But no corporate boss could succeed under such suffocating governance. Some pressure would be eased by letting subjugated shareholders pick a leader from a field nominated by Beijing's entrenched board.
Hadas: Hong Kong teaches lessons on taming China 19 Jun 2019 The Asian financial hub is a special case, but its mass protests make clear that single-minded resolve can push back against an increasingly prosperous and autocratic People’s Republic. Similar focus would help foreign businesses and governments. Donald Trump is mostly failing.
Gloating over Hong Kong distracts Taipei 19 Jun 2019 President Tsai Ing-wen made an unlikely political comeback largely thanks to unrest in the financial centre that rallied anti-Beijing sentiment. But the island’s citizens are unlikely to glean any economic benefit from Hong Kong’s pain. Tsai’s reform to-do list remains too long.
Beijing yields to Hong Kong’s financial clout 15 Jun 2019 Carrie Lam has suspended a bill that would have allowed extradition to the mainland, backing down after protests rocked the city she leads. It’s a defeat for her, and leaves egg on the central government’s face. But for China, Hong Kong’s economic utility trumps political control.
Pulled IPO sets grim tone for Hong Kong markets 13 Jun 2019 Warehouse operator ESR shelved plans for a $1.2 bln float, a day after police and demonstrators clashed violently in the Asian financial centre. A high price was one issue, but unrest plus economic headwinds formed a perfect storm. It’s a bad sign for others in the queue.
Hong Kong’s new protests come at a dangerous time 12 Jun 2019 Violence flared in the financial centre as police fired tear gas and rubber bullets at citizens opposing an extradition bill. Pro-democracy demonstrations in 2014 fizzled out. But this movement has broader support, and the economy is more fragile. The standoff is harder to defuse.