Regulation

Short hit pollutes China’s second-hand car lot

17 April 2019

Uxin’s stock lost a third of its value after a research firm accused the newly U.S.-listed auto outfit of fudging numbers. True or not, fumes around an industry backed by Tencent and big buyout names are becoming noxious. It’s reason to steer clear of rivals waiting to go public.

UniCredit outperforms U.S. sanctions-hit benchmark

16 April 2019

Italy’s biggest bank by assets is paying $1.3 bln to settle a U.S. probe, and its German arm will enter a guilty plea. That’s a similar slap to previous European bank settlements. But with the fine less than UniCredit provisioned for, it will actually boost the bank’s capital.

Boeing’s crisis flies beyond its 737 MAX failures

9 April 2019

Shareholders extended to $28 bln the overall hit to the aircraft maker’s value after it slashed production of the jet involved in two fatal crashes. The immediate impact on Boeing’s bottom line doesn’t justify that. But the reputational damage and risk to other projects do.

UK web rules will speed internet’s balkanisation

8 April 2019

The government may fine groups like Facebook – and senior managers – who fail to police harmful content. This adds teeth to lame social-media regulation, but also creates a UK-specific standard. As other states beef up local regulations, web groups’ margins will feel the squeeze.

Crash findings keep Ethiopia reform dreams intact

4 April 2019

An early probe into Ethiopian Airlines’ March 10 disaster found the company’s pilots were not to blame. That’s a double relief for Prime Minister Abiy Ahmed. With the flag carrier central to his privatisation push, internal failings could have stymied wider plans for reform.

Exit of China’s economic truth-teller leaves a gap

4 April 2019

Lou Jiwei leaves the social security fund he led in a tad better shape. Yet the former finance minister’s career was defined by his outspokenness on the need for reform. With his departure, Beijing’s political centre may edge further toward caution, rather than change.

Obsolescent Hong Kong lenders get a virtual kick

2 April 2019

City regulators have awarded three online-only banking licenses, hoping to shake up a lucrative $23 bln local market after years of underinvestment. Tough requirements mean two have gone to ventures backed by big names, not startups. That won't stop them tackling HSBC and others.

U.S. AI export crackdown may hurt people, too

1 April 2019

Foreigners in America could get caught in a government proposal to restrict exports of robotics and other tech to China and elsewhere. A license may be needed for temporary residents to work on such projects. It would undercut Alphabet, Amazon and others that recruit overseas.

Zuckerberg’s plea for regulation is a siren call

1 April 2019

The Facebook founder wants governments to develop more standardized rules for the internet to combat problems from harmful content to data security. The idea has merit. But it also smacks of a way for tech firms to keep profits private while socializing responsibility and costs.

China’s 5G noise scrambles ZTE’s positive signals

28 March 2019

A ban on U.S. suppliers selling parts to the $16 bln telecom company dragged it into the red in 2018. Its Hong Kong shares are up 50 pct this year anyway, on the promise of 5G networks. Signs that Chinese carriers may delay a rollout, however, suggest such hopes are premature.

Wirecard’s relief surge has gone too far

26 March 2019

The 15 billion euro payment group’s shares rose more than a quarter after a review found no evidence of any misconduct that would have a material financial impact. Its valuation is now uncomfortably close to sector stalwarts Visa and Mastercard. A bigger discount is merited.

Hong Kong fumbles its China extradition fix

21 March 2019

The city may exclude white-collar crimes from a mooted deal to exchange suspects with the mainland, to assuage the business community’s concerns. Unfortunately, such an awkward compromise would only confirm the tension between the financial hub’s needs and Beijing’s ambitions.

Google fines make case for tougher antitrust curbs

20 March 2019

Europe has hit the Alphabet unit with its third penalty in less than two years, taking the toll to over $9 bln. That sum pales against the $600 bln the firm has added to its market cap since the investigations began in 2010. Both sides are being pushed to a bigger showdown.

Sainsbury’s antitrust riposte barks up wrong tree

19 March 2019

The supermarket chain promised to deliver 1 bln pounds of price cuts to ease fears about a tie-up with Asda. That might help its image with customers, but probably not change the regulator’s mind. Arguing that the grocery market is rapidly changing would be a smarter move.

Etihad is strapped in too tightly at Jet Airways

19 March 2019

The ailing $400 mln Indian carrier has stopped flights to Abu Dhabi, the hub of its 24 pct shareholder. Even with some planes grounded, Jet may be trying to strong-arm support for a restructuring. It’s a harsh reminder that Etihad has more to lose than just its equity investment.

Dianrong boss daringly says what many are thinking

19 March 2019

Co-founder Guo Yuhang blames the government for slow growth at his peer-to-peer lender. Such regulatory grievances are common from bankers elsewhere, but rare in China. The complaints will strike a chord in the industry even if they don’t alter the course of mercurial rules.

China’s hasty investment law garbles the message

15 March 2019

Lawmakers have passed new rules affecting foreign firms from BASF to BMW, fast-tracking reforms to ease U.S. trade tensions. The result, though, seems awkwardly vague, drawn up with little outside input. That suggests the aim is a diplomatic win: real change will take longer.

Crackdown on banks gives Hong Kong an IPO edge

15 March 2019

UBS has been banned from leading market debuts for a year, and is part of a foursome paying $100 mln in fines for shoddy due diligence stretching back to 2009. As bourses fight to host a new wave of unproven startups, investors can take some extra comfort from the city’s aegis.

Belated 737 action marks U.S. soft power erosion

13 March 2019

The FAA finally followed many other countries’ watchdogs in grounding Boeing’s 737 MAX aircraft. Usually, the U.S. regulator shows the way. Washington’s government by autopilot and perceived capture by companies has made even allies increasingly skeptical of its leadership.

Britain shows United States how to fight Big Tech

13 March 2019

A report for the UK government says the best way to break the self-reinforcing gravitational pull of Facebook, Amazon or Google is to make them share users’ data. That will be hard to implement but more effective than the breakups advocated by one U.S. presidential hopeful.