Asia-Pacific

Daniel Zhang leaves Alibaba under a cloud

11 Sep 2023

The $230 bln e-commerce group’s outgoing boss has also stepped down as chief of its key computer services unit. The sudden decision upends what seemed a smooth transition of power. It may also delay AliCloud’s spinoff, and with it hopes of boosting the parent company’s valuation.

Time to target fossil fuel demand, not supply

11 Sep 2023

Climate activists want countries and companies to stop producing oil, gas and coal. It would be more effective to focus on cutting demand for fossil fuels – by campaigning for carbon taxes, green subsidies and faster licences for renewable energy, says Hugo Dixon.

Richard Li can afford to be fifth time lucky

11 Sep 2023

The tycoon’s Asian insurer FWD looks set to let its Hong Kong listing application lapse. Ending its fourth IPO push is sensible: it doesn’t urgently need funds. Yet Li’s multi-year run at a debut for his sober business is turning into a test for the languishing capital market.

India’s fintech partygoers nurse a needed hangover

11 Sep 2023

The $16 bln industry’s annual shindig was a sombre affair. Founders touted sustainable growth amid dipping valuations, regulators preached risk mitigation and big investors stayed away. Waning euphoria for the country’s digital ecosystem may, though, be an early sign of maturity.

American economic power is potent but unstable

8 Sep 2023

Washington weaponized the country’s dominance in tech and finance, evidenced by restrictions on Chinese chip imports and Russia sanctions. Such policy power has invited backlash, most recently against Apple’s iPhones. The dynamic makes valuable interdependence harder to sustain.

Capital Calls: UK wind

8 Sep 2023

Concise views on global finance: The country’s latest offshore wind auction predictably receives no bids, complicating its decarbonisation targets.

Brookfield’s climate promise faces a dirty test

8 Sep 2023

The investor’s pending $12 bln co-purchase of Origin includes Australia’s largest coal plant. Fear of blackouts may keep it running past an expected 2025. Even with deep pockets and oodles of renewables expertise, it may be hard to avert such an epic energy transition fail.

China’s cautious property giants may be rewarded

8 Sep 2023

Vanke Chair Yu Liang presciently called the top of the market. Now he says it has oversold and will return to a healthier level. Some optimism is warranted. Policies aimed at shoring up home sales are stirring a rebound in stocks. Yu can afford to be more positive than most, too.

Apple’s high valuation exposes it to China’s whims

7 Sep 2023

The $2.8 trln tech giant's shares lost 7% in two days after reports said Beijing will impose a ban on officials using iPhones. Current retaliatory measures shouldn’t matter much to valuation. But more draconian assumptions show a problem, especially at Apple’s elevated multiple.

Arm’s IPO valuation rests on big dose of hope

7 Sep 2023

The SoftBank-owned chip designer is getting ready to list. In this Viewsroom podcast, Breakingviews columnists argue that even the company’s reduced price tag of $50 bln is still far too high, and debate what investors would have to believe to buy the shares.

Capital Calls: Warner Bros’ Max, GameStop

7 Sep 2023

Concise views on global finance: The HBO-parent intends to offer live sports and news to its streaming package. Customers will end up footing the bill; the $6 bln video-game retailer turned itself from a meme stock to a viable company by recovering through cost cuts.

Investors’ China aversion is bad for everyone

7 Sep 2023

Fund managers are slashing exposure to the world’s second-largest economy, just five years after mainland stocks joined global benchmark indices. Geopolitical tensions mean some of the retreat is permanent. The pullback will hurt China as much as it will pain global investors.

Capital Calls: Saudi oil gambit

6 Sep 2023

Concise views on global finance: The world's top crude exporter is extending its 1 million barrels a day production cuts until the end of 2023 to boost prices.

Singapore’s wealth boom hits most sensitive phase

6 Sep 2023

A ballooning $1.3 bln money laundering scandal and China’s angst about capital flight may be unrelated but together they point to a slowing of inflows into the Asian hub. Banks will scrutinise clients more closely and toe a careful diplomatic line. That may not be a bad thing.

SoftBank’s reduced Arm price tag is still too high

5 Sep 2023

The Japanese group may float its UK chip designer for $50-54 bln. That’s lower than initially hoped, but still implies an implausible future where revenue and profitability soar. If Arm merely grows at recent rates and nudges up margins, its market worth is more like $35 bln.

Capital Calls: Burning Man, Intel/Tower

5 Sep 2023

Concise views on global finance: The festival’s mud-soaked disaster reveals tensions between libertarian ideals and providing infrastructure in a warming world; the $155 bln chip giant’s partnership with its former acquisition target salvages some of the benefits of a tie-up.

Qantas CEO’s exit will barely reduce turbulence

5 Sep 2023

Alan Joyce hopes retiring early from the airline will “accelerate its renewal” after months of scrutiny culminating in a watchdog accusing it of bad conduct. But real change won’t come cheap for his successor. And more sacrifices from the board's long haulers are likely.

Nvidia gives Arm IPO a double leg-up

4 Sep 2023

The $1.2 trln semiconductor designer’s AI-inflated stock price provides a following wind for the UK group’s float. Now Nvidia and two peers may endorse its valuation by buying into Arm’s offering. Owner SoftBank will be hoping other investors buy into the somewhat circular logic.

Asia’s richest banker makes a meal of succession

4 Sep 2023

Uday Kotak has quit early as CEO of his $43 bln lender. He seems to be pitching it as a way for Kotak Mahindra Bank to appoint a replacement free from his interference. But he’s on the board and the firm’s biggest shareholder. And his legacy is tied to whoever takes his spot.

Capital Calls: Lithium M&A

4 Sep 2023

Concise views on global finance: Albemarle’s $4.3 bln sweetened all-cash offer for lithium miner Liontown has financial merit, as well as offering it a handy hedge against Chile’s plan to nationalise resource assets.