Asia-Pacific

Gu Kailai verdict may play better than Pussy Riot

20 Aug 2012

In some ways, China’s hasty murder conviction of a politician’s wife resembles Russia’s farcical prison sentence for a punk protest. But the Russian case inflames fear of excessive state control, which is bad for markets. In China, investors may be happy that order has prevailed.

Thais have done well in APB bluff against Heineken

20 Aug 2012

The Dutch brewer blinked after a Bangkok beer family threatened to block it from full ownership of the Singapore brewery. Heineken raised its bid to $4.46 bln. The Thais could try for still more, but risk a devastating loss if Heineken balks. They’d be savvy to cash in now.

Noodle king Tingyi bulks up in lean China market

20 Aug 2012

Chinese consumers are becoming more frugal, even over staples like bottled drinks and instant noodles. Yet market leader Tingyi grew sales in a weak market by taking share from rivals. Lower palm oil and sugar prices also helped produce a 24 percent rise in first-half profits.

Beijing’s universal bank plan falters overseas

17 Aug 2012

China’s big four banks hired wildly and invested madly abroad in 2009, when Western banks stumbled. After CCB’s investment banking unit lost $250 million in 2011, they are all cutting back. A much needed strategic rethink of their global ambitions is under way.

Review: How the West both lost and won Asian minds

17 Aug 2012

From Egypt to Japan, intellectuals have spent much of the last 150 years trying to respond to the temptations and horrors of European culture. Pankaj Mishra traces out the uneasy mix of emulation and rejection. Modernisation was hard then and isn’t much easier now.

Delhi’s mission to Mars more than confectionery

16 Aug 2012

It may seem wasteful to launch satellites when half India’s children are malnourished. But the $80 mln at stake is relatively small, and symbolic feats can pay economic dividends. Besides, it will take more than abandoning a space programme to close India’s massive wealth gap.

New optimism may torpedo Asia’s safe-haven bonds

16 Aug 2012

Investors driven by weak global growth, low interest rates and strong Asian finances have sought shelter in the region’s bonds. But Asia’s growth hasn’t fallen as fast as feared. If the U.S. or China move to revive growth, those bonds could prove vulnerable to a brightening mood.

India’s central bank faces a "No, minister" moment

16 Aug 2012

By promising to take “calibrated” risks to stimulate investment, India’s new finance minister has raised expectations of monetary easing. But hasty rate cuts while inflation is sticky and a trade gap yawns is a bad idea. The central bank has good reasons to resist all pressure.

Share price mystery clouds Focus Media buyout

15 Aug 2012

The Chinese media group’s U.S. shares ran up 8 percent the day before it announced a $3.5 billion management buyout. Regulators are already twitchy after alleged insider trading around CNOOC’s $15 billion bid for Nexen. This may fuel fears that China has a problem with insiders.

An alternative Independence Day message for India

15 Aug 2012

The prime minister’s actual speech was a sugar-coated set of contradictions. His prediction of 6.5 pct growth is optimistic, especially as he failed to deal head-on with the tough political choices needed to achieve that pace. Breakingviews has the speech he should have given.

Philippines just starting fight to shed bad past

15 Aug 2012

In the 1950s, the country had Asia’s highest per capita income outside Japan. Those days are gone, but growth is strong, the peso is rising, and an investment-grade rating is within reach. President Aquino needs to break the hold of oligarchs. “Sin taxes” will provide a test.

Focus Media insider buyout gives investors relief

14 Aug 2012

Some of the people who brought the Chinese advertising firm public now want to take it private. Focus has suffered from a short seller’s allegation, but the suggested value of $3.5 billion doesn’t look like a steal. Worriers about Chinese accounting should take some comfort.

Occupy movement withers in unequal Hong Kong

14 Aug 2012

After a 10-month sit-in, a rag-bag of Occupy sympathisers face eviction from HSBC’s HQ. Their protest never gained traction - despite the region’s yawning wealth gap and HSBC providing free wifi. It’s not just that Occupy was disorganised: inequality alone doesn’t ensure unrest.

Freer fuel price could start Indian chain reaction

14 Aug 2012

The country’s clever new finance chief, Palaniappan Chidambaram, needs a sharp idea to cut the fiscal deficit. Deregulating fuel prices would help in many ways, including a lower subsidies bill, more valuable state-run firms, more efficient resource allocation and eventually more investment.

Asia’s slowdown may heighten tension over isles

14 Aug 2012

A Korean soccer player may have lost an Olympic bronze amid his country’s spat with Japan over mid-sea islands. Asian politicians’ interest in aquatic outposts reflects a desire to look patriotic, and an economic slowdown increases the acrimony over disputed rocks and reefs.

China mistakes foreign law firms for Party poopers

13 Aug 2012

They’re dealmakers, not threats to communist rule. Yet China’s wary leaders won’t license them. That’s no way to lure overseas investment. Change must wait until a tense murder case and political transition passes. But economic preeminence won’t come without global lawyers’ help.

Public investors lose in Mongol mining battle

10 Aug 2012

The nomad state seems set on sinking Chinese state firm Chalco’s bid for coal miner SouthGobi. Wild as Mongolia is, a compromise is conceivable. All sides could come away with something, except for investors who bought SouthGobi shares when they were double their current value.

Li & Fung finds dreams don’t always come true

10 Aug 2012

The ambitious Hong Kong listed trading and logistics company sells at an elevated multiple, based on promises of rapid growth from a confident chief executive. The shares dropped 20 percent after a disappointing first half. They still look expensive for this cyclical business.

India begins the post-Mukherjee clear-up

9 Aug 2012

The former Indian finance minister’s reign was stained by economic meddling and political favouritism. Now he is gone, and some of his excesses are being reversed. An enemy has been pardoned and a friend has not received a plum job. This could be the beginning of a better era.

Heineken should call Thai bluff for Tiger beer

8 Aug 2012

A Thai mogul has pipped the Dutch brewer’s S$50 a share bid for Asia Pacific Breweries with a higher offer, but only for a minority stake. Heineken shouldn’t bite. It loses little even if its bid fails. It may just end up with a debt-laden partner it can buy out cheaply later.