Internet

Ant’s $312 bln valuation puts faith in fast growth

27 October 2020

Both the Hong Kong and Shanghai shares priced with a lucky number eight. To achieve the symbolised prosperity, the Chinese fintech giant’s profit would have to double by 2022 based on the conservative 24 times multiple. Much rides on winning over customers and regulators alike.

OneWeb is flying into a financial asteroid field

19 October 2020

The UK government and India’s Bharti bought the space startup out of bankruptcy for $1 bln. Launching broadband-beaming satellites requires more cash with potentially slim rewards. A future GPS-style location service, meanwhile, may suit Britain more than its commercial owners.

ZTO digs deep trench in China’s logistics war

18 September 2020

Competition has crushed the courier’s margins and with reduced forecast earnings it trades on a valuation multiple higher than its investor and customer, Alibaba. Proceeds from a $1.6 bln Hong Kong secondary listing will help ZTO triumph in a price war and any consolidation.

Big Tech eases Ant’s march into public markets

15 September 2020

A long who’s who list, including Thailand’s richest man and China’s national pension fund, stand to clean up from Jack Ma’s fintech titan. Not long ago, a $200 bln IPO might have made public investors look like suckers. This number is less scary thanks to Apple and others.

TikTok-Oracle deal leaves room for surprises

13 September 2020

ByteDance has chosen Larry Ellison’s firm as the “tech partner” for its video-app unit but any deal that stops short of a full sale will raise national security worries. With raging anti-China rhetoric and elections, Oracle’s ties to U.S. President Donald Trump are no cure-all.

China sabotages its own internet idealism

8 September 2020

Beijing’s new internet governance contract, a counter to Washington’s Sinophobic “Clean Network” programme, includes a pledge for nations not to use technology firms to spy on each other. The language is high-minded, but its effect will only further split the worldwide web.

Yum China adds spice to its tech credentials

7 September 2020

The operator of KFC and Pizza Hut has raised $2.2 bln in Hong Kong at a valuation above Alibaba. The secondary listing was permitted as digital orders dominate sales. But the hot badge has downside too: volatility in internet stocks risks a not-so-finger-lickin’ good debut.

Fintech payment pioneers face war on two fronts

3 September 2020

Afterpay’s shares fell 10% after PayPal said it would offer a “buy now pay later” product. Unlike the Australian group, the U.S. money transfer giant is giving its version for free. Competition will aggravate the regulatory risk Afterpay and Swedish rival Klarna already face.

Rocket’s $3 bln delisting leaves investors adrift

1 September 2020

Even as tech stocks surge, Oliver Samwer’s German investment vehicle has concluded it doesn’t belong on the public market. His plan to take Rocket Internet private gives small shareholders two unappealing options: cash out with no premium or hang on with little hope of liquidity.

Ant’s big reveal is cost of financial disruption

27 August 2020

The Chinese fintech giant's IPO filings show its core consumer lending unit was hit by new rules in 2018, forcing it to upend its business model. Swapping margins for fees has paid well so far. It’s less risky too. Ant survived and thrived, but Beijing is keeping watch.

India Insight: Ambani, a maverick Rockefeller

25 August 2020

Data is the new oil for the tycoon who wants his $185 bln Reliance to serve all the needs of Indian consumers. He’s backed by America’s tech monopolists. Just as the Standard Oil energy cartel birthed U.S. antitrust law, Mukesh Ambani will amass power until told to stop.

Pinduoduo gets stung by its own shopping hype

24 August 2020

Investors erased $16 bln in market value from the Chinese company as orders on its e-commerce app disappointed. “Gross merchandise value” is a confusing metric and much more so when consumer sentiment is volatile. Boss Chen Lei has had a costly lesson in why hard numbers rule.

Hong Kong speculators should read China Literature

19 August 2020

The fan-fiction startup leaped 86% on its first trading day in 2017, but is now underwater, alongside peers that enjoyed similarly oversubscribed floats. Low interest rates have the city’s retail investors back at playing IPOs, so another round of unsustainable pops is underway.

JD is having its self-sufficient star moment

17 August 2020

Adjusted earnings at the $97 bln e-commerce giant rose 66%. The mooted listings of its health and fintech units have helped shares rise 76% year-to-date, outpacing Alibaba. Boss Richard Liu’s costlier inventory-led model and domestic focus are finally starting to pay off.

Ballad of China’s Robinhood has familiar refrain

14 August 2020

Like the hot U.S. e-brokerage startup, $4.2 bln Futu is capitalising on stock market frenzy. Quarterly net profit more than quadrupled thanks to a boom in offshore trading by mom-and-pop investors. A premium valuation over rivals, though, overlooks new competitive threats.

U.S.-China tech spat is less costly than tariffs

14 August 2020

The two nations will review their trade deal as the White House refocuses on a purge of Chinese apps. The economic damage is more limited than tariffs, which upended companies and hurt consumers on both sides. Containing the trade fight is more important than saving TikTok.

Ant’s dual listing could double cross Wall St

13 August 2020

A chunk of the $150 bln fintech giant will be sold on Shanghai’s new tech board, where IPO fees are as generous as in New York. Foreign banks in Hong Kong could be left with a smaller share of the pie. If more issuers follow Ant’s march, Wall Street’s dues are in for a reckoning.

Realtor IPO overcharges for Chinese housing

13 August 2020

Tencent-backed KE’s U.S. debut could value it at $23 bln. Home sales in China are recovering on easier credit, and the company is growing fast. It’s an online play on a sector that has consistently proven sceptics wrong. The price, however, may cause buyers’ remorse.

India is the neglected elephant in TikTok’s room

10 August 2020

Microsoft and Twitter want pieces of the Chinese video app, but seem uninterested in its largest market by users. There may be practical reasons, given Western tech giants remain welcome in India. But they might also fear New Delhi will give local copycats a helping hand.

Pompeo’s Chinese web wall is a tall order

6 August 2020

The U.S. Secretary of State's "Clean Network" initiative wants to purge America’s internet of Chinese telecoms, apps, and cloud services. Washington aims to ring-fence the People’s Republic, and Mike Pompeo is seeking allies. The costs for companies on both sides could be high.