Golden Globes flop could tarnish Chinese bidders 21 Feb 2017 Officials torpedoed Dalian Wanda's $1 bln bid for Golden Globes producer Dick Clark, a Hollywood website says. Reining in Wang Jianlin may be diplomatically astute and economically prudent, but if China's richest man can't get deals done, it's a bad sign for other Chinese buyers.
Small-town Laishui is Chinese bubble in a bubble 20 Feb 2017 New apartments in a poor county near Beijing can now cost the average local 15 years' income. There are real reasons places like Laishui might attract development. But amid attempts to cool prices in top cities, smaller towns may be turning into targets for speculators.
UK housing policy may be answering wrong question 7 Feb 2017 The British government has some ideas to build 250,000 homes every year. But as real rents in England are below 2005 levels and the stock of surplus housing is higher, shortage of supply may not be the biggest issue. Managing rents, not house prices, should be the focus.
Blackstone prices its housing fixer-upper to move 23 Jan 2017 The biggest portfolio of U.S. single-family rental homes should tempt investors. The buyout giant is pitching the $1.5 bln IPO of Invitation Homes in line with rivals despite superior fundamentals. The cautious approach is sensible given the headwinds facing the housing business.
Li Ka-shing Duet bid tests Aussie foreign dislike 16 Jan 2017 The Aussie energy firm's board is backing the tycoon's $5.5 bln takeover bid. Duet's stock is trading close to the offer. That suggests investors think the deal will pass and that Canberra's recent chest-thumping against foreign buyers like CKI on security grounds is nuanced.
LeEco’s $2 bln rescue rewards bad habits 16 Jan 2017 Property developer Sunac is ploughing funds worth more than half its market value into the overstretched TVs-to-electric cars group led by billionaire Jia Yueting. The partnership makes Jia's earlier pledge to slow down sound unconvincing, and could lead Sunac astray too.
China Resources seals neat exit from builder brawl 13 Jan 2017 The $5.4 bln sale of its entire stake in China Vanke to Shenzhen Metro allows the conglomerate to extract itself from a boardroom fight at an attractive price. It looks like the beginning of the end for a spat that has irked regulators. Other shareholders may follow its lead.
Evergrande’s M&A misadventure is costly 22 Dec 2016 The Chinese property developer has spent $5.2 bln building a 14 pct stake in larger rival Vanke. With the regulator cracking down on capital market "savages" and Evergrande itself ruling out a takeover, the bet is already 13 pct underwater. It can hardly afford the misstep.
Market sceptics are alive and well in Hong Kong 19 Dec 2016 GMT Research claims Evergrande needs $22 bln of writedowns. That is bold, given the hard time local authorities and companies give sceptical analysts - including the developer's previous critics. This and recent short attacks are signs of resilience from the contrarian camp.
Fintech’s transformation into banking draws closer 9 Dec 2016 UK regulators are mulling tougher rules for crowdfunding firms that would require greater risk disclosure and wind-down plans. Stricter regulation is good for investors. Yet it also means more loan-based platforms might follow peer-to-peer group Zopa in seeking a banking licence.
U.S. housing revival remains under construction 1 Dec 2016 Home prices just surpassed their 2006 peak, boosted by more buyers amid tight supply. Further gains could be tough – or slow. Rising interest rates and privatizing the government agencies that back mortgages, as Trump's Treasury nominee wants to do, could impede affordability.
Overdue market renovations bite UK estate agents 24 Nov 2016 Letting agents’ share prices plunged as the government said it might stop tenants from being billed directly for admin fees. Agents don’t have much chance of passing those costs on to landlords. Even if the government is micromanaging, the effect will be a more efficient market.
Chinese insurer’s board battle could backfire 23 Nov 2016 The mass resignation of CSG's management team after a hostile takeover by activist conglomerate Baoneng Group puts the profitable firm's fate in limbo. If Baoneng wants to prove itself as a strategic investor, it should look before leaping into boardroom battles.
U.S. election resurrects Fannie, Freddie fiasco 22 Nov 2016 Shares of the two bailed-out mortgage agencies have rocketed on hopes the Trump administration might end government oversight. Big political roadblocks remain, though. Letting them keep any profit to prepare for the next crisis would be a simple and smart first step.
Hong Kong tax only a breather for property bubble 7 Nov 2016 The territory nearly doubled stamp duty to 15 pct to cool surging prices. It's the toughest measure yet, but continued capital inflows from China will blunt the impact. Barring a big increase in supply, the world's least affordable housing market is likely to remain that way.
UK property didn’t get the “hard Brexit” memo 17 Oct 2016 Real estate funds that froze after the UK vote are opening, and prices have stabilised. Yet rents could collapse if Britain makes a clean break with the EU, and foreign investors may not ride to the rescue. Property stocks pricing in 20-percent price falls aren't cheap.
Evergrande finally hits on some sensible M&A 4 Oct 2016 The debt-laden developer plans to swap assets for control of a mainland rival. By acquiring the $1.6 bln Shenzhen Real Estate, Evergrande may win higher valuations onshore. Assuming the overhaul gets past regulators and investors, this makes more sense than other recent deals.
China’s frothy new home prices look vulnerable 19 Sep 2016 House prices are shooting upwards. August data shows even the inland backwater of Hefei city saw prices jump 40 pct yoy. There are signs of discontent, however. If authorities choose to tame this hallmark of the old economy, they have plenty of tools to battle the bubble.
Deutsche’s frailty is strength in DOJ dispute 16 Sep 2016 The U.S. Justice Department has proposed the German lender pay $14 bln to settle mortgage securities charges. Peers have negotiated the DOJ down, and Deutsche can't afford much more than half that. The bank's significant size and weak capital position may secure a big discount.
VCs serve up largely pointless home-equity funds 14 Sep 2016 Startup Point hopes to supplant mortgage debt with potentially pricey mezzanine financing. It's easy to see why the company and backers like Andreessen Horowitz are interested in a kind of "heads I win, tails you lose" idea. It's harder to see why sensible homeowners should be.