Asia-Pacific

Moderna finally gains tenuous toehold in China

6 Jul 2023

The $47 bln US biotech company will develop and sell mRNA treatments in the People's Republic. It’s a bet that the country’s ageing population will spur growth and comes after years of trying. But geopolitics and rising local competition loom over its expansion plans.

Adani case threatens watchdog’s rising credibility

6 Jul 2023

Indian regulator Sebi has disciplined two media tycoons for alleged wrongdoing and strengthened disclosures for foreign investors. The moves fit Chair Madhabi Puri Buch’s tough reputation. But an inconclusive probe into the billionaire’s dealings could undermine recent progress.

Capital Calls: Diverse workforces

5 Jul 2023

Concise views on global finance: The court’s ruling against affirmative action could make future workforces more homogeneous. That’s a bitter pill for the US Federal Reserve, which has pushed for a more inclusive labor market.

India can aim lower in its chip dreams

5 Jul 2023

Despite offering $10 bln in subsidies, the country has only managed to attract Micron to build a less-advanced factory. Even so, the chance to grab share from China in the commoditised but vital low-tech chips market could pay off amid booming demand and geopolitical tensions.

Why central banks cannot relax in inflation fight

4 Jul 2023

Western policymakers have frantically hiked interest rates to dampen consumer prices. In this Exchange podcast, Claudio Borio, a top official at the Bank for International Settlements, argues that rate-setters need to keep going to ensure costs of living won’t stay elevated.

China’s rare metals swipe has more bark than bite

4 Jul 2023

Beijing is imposing export controls over gallium and germanium, used in chips, fibre optics and military equipment. This confirms Western fears that the country might leverage its strategic metals dominance to push back on sanctions. Yet market realities blunt China’s edge.  

El Nino will brew up potent new economic storm

4 Jul 2023

The Pacific Ocean phenomenon is back. Resultant floods, heatwaves, water scarcity and fires will damage crops and infrastructure, may cost trillions, and augur inflation and rate hikes. Worse, climate change makes such events stronger and more frequent, embedding supply shocks.

Capital Calls: China’s central bank, Generali

3 Jul 2023

Concise views on global finance: The People’s Bank of China plays it safe by earmarking Pan Gongsheng as its new governor; the Del Vecchio family gets the green light to own more than 10% of the 30 bln euro Italian insurer.

Weaker China offers opportunities to US and allies

3 Jul 2023

The mutiny against Russia’s Vladimir Putin is a blow for Beijing, while the Chinese economy is weak. The People’s Republic is still a threat, notably to Taiwan. But the US and its partners should grab any chance to work with China on issues like climate change, says Hugo Dixon.

The next revolution in monetary policy is underway

30 Jun 2023

Central banks are grappling with rising prices and fragile financial markets, raising doubts about their focus on price stability. Recent interventions by the International Monetary Fund and Bank for International Settlements are signs of a broader rethink, says Felix Martin.

Capital Calls: KKR’s reluctant bidding war

30 Jun 2023

Concise views on global finance: Despite pushing arguments about antitrust and financing risks, the buyout shop ended up parrying a rival suitor for industrials company Circor by matching it on price.

India’s push to democratise credit tests limits

30 Jun 2023

It’s shaping its digital payments system, which supports 9 bln consumer transactions a month, into a loan engine. Homegrown card operator RuPay and fintech Paytm are winners. But growth in unsecured credit is blistering and the regulator is delivering mixed messages on the risks.

Capital Calls: US IPOs

29 Jun 2023

Concise views on global finance: Thrift store chain Savers Value Village is the latest consumer goods company to enjoy a successful stock market debut in New York.

Central banks’ calls for pay restraint ring hollow

29 Jun 2023

Western central bankers want workers to ask for lower raises unless firms cut their margins to compensate staff. With salaries growing less than inflation, that’s a harsh demand. Past rate rises will in time cool labour markets. Officials need to talk less and wait longer.

Swire’s Coca-Cola sale gives investors sugar rush

29 Jun 2023

Handing its US drinks subsidiary to its parent for $3.9 bln allows the Hong Kong conglomerate to pay a tasty dividend, cut net debt and still run the division for a fee. It’s a sweet deal for investors, as long as property, airline Cathay Pacific and other holdings recover soon.

Macau wannabes risk being short of gamblers

29 Jun 2023

Japan and the UAE will soon have legal casinos; Thailand may follow. In theory Wynn, MGM and peers will have around $12 bln of new annual revenue to play for, more than Macau has raked in this year. But newcomers can’t rely on Chinese punters and their home markets are untested.

Capital Calls: Digital euro, Thames Water

28 Jun 2023

Concise views on global finance: Brussels is in a new push to convince EU member states and the European Parliament to endorse a digital euro; Britain’s Thames Water could be placed into special administration.

Hong Kong’s market promotions get shrill

28 Jun 2023

The city’s bourse is trying to lure foreign listings from Europe and the Middle East while regulators push local lenders to bank crypto exchanges. The first initiative is worthwhile but unlikely to yield much new business; the latter creates fresh headaches for HSBC and peers.

Pricey property is a pointy dilemma for Singapore

28 Jun 2023

Rich foreign arrivals including family offices are an easy scapegoat for house prices bucking a global slump. But Asia’s safe haven needs to keep the public onside more than other hubs like Hong Kong as it vies for global capital. The stakes of keeping everyone happy are high.

AI’s deflationary winds will blow away profits

27 Jun 2023

Artificial intelligence could add $8 trln a year to world GDP, McKinsey estimates, defying the gloom about robots replacing humans. Though companies should benefit from lower costs, consumers could use the technology to find better deals. It all adds up to lower prices.