Asia-Pacific

Blackstone polishes its diamond bet to perfection

25 Sep 2024

The buyout shop may target a $4 bln valuation for rock certifier IGI, seven times what it paid last year. Restructuring the Belgium-founded business into an India-led entity and floating it in Mumbai where valuations sparkle helps. At least the company's dressing-up makes sense.

Beijing partially shuts door to big bang stimulus

24 Sep 2024

The central bank surprised markets with sweeping rate cuts and hinted at more easing. It's a sign that planners are leaving the heavy-lifting to monetary policy. Piecemeal fiscal measures may come later this year, but the window for Beijing to hit its GDP target is closing.

EU deforestation ban creates a hazy trade future

23 Sep 2024

The European Union wants to ban agricultural imports from deforested land. The rules have laudable aims but will impact $400 bln worth of goods. Developing nations are already exporting elsewhere. To avoid losing vital supplies, Brussels can compensate farmers or lower standards.

Murdoch’s UK property bid may yet get even sweeter

23 Sep 2024

Rightmove is mulling an improved $8.1 bln offer from Australia’s REA Group, owned by the media tycoon. A chunky premium and other UK refuseniks’ share price slumps are reasons for the listing portal’s board to say yes. But the buyer’s latest bid implies an ability to pay more.

China-EU trade spat’s next swipe may hit LVMH

23 Sep 2024

Beijing is weighing up retaliating against EU tariffs on electric cars. Targeting the French luxury giant and its rivals would cause minimal strategic pain and hit Paris rather than Berlin. Higher consumption taxes, rather than import duties, could also fit with domestic reforms.

Beijing IPO meddling leaves bad taste in Hong Kong

23 Sep 2024

Regulators have put three bubble tea firms’ offerings on hold. Why? Because listed peers have performed poorly amid tough competition, Reuters reports. That may be true, but it’s a decision for companies and investors. China’s heavy handedness bodes ill for the city’s bourse.

Seven & i defence calls for radical strategy

23 Sep 2024

A 20% jump in the company's stock price after it rejected Couche-Tard's $39 bln takeover puts the 7-Eleven operator under pressure to lay out a plan to improve shareholder returns. So far CEO Ryuichi Isaka has only tinkered at the edges. A drastic overhaul may be necessary.

Mercedes’ China motor hits one of two roadblocks

20 Sep 2024

The $64 bln German carmaker warned of collapsing profitability this year, as a real estate bust in its key Chinese market hurt demand. Lower margins weaken scope for big shareholder payouts. Yet political tensions also raise the risk of unpleasant future tariff surprises.

KKR outmanoeuvres Bain in $4 bln Japan showdown

20 Sep 2024

The two buyout giants are tussling over IT specialist Fuji Soft after Bain dangled a potentially higher offer. But KKR has found a clever way to put itself ahead without raising its price. Future buyers should take note: in a hot market like Japan, creative tactics will be needed.

India’s open for business push has local quirks

20 Sep 2024

Prime Minister Narendra Modi’s government lowered barriers to foreign investment. Yet BlackRock, BMW and others are choosing to expand in partnership with powerful families. It tightens tycoons’ grip on the world’s fifth-largest economy, and sets them up as future global rivals.

The Fed gives China several helping hands

19 Sep 2024

The 50-basis-point cut to US rates is taking pressure off the yuan, giving the People's Bank of China room to reduce borrowing costs, too. That could deflate the bond bubble, help Beijing hit its annual GDP target, and even spur more liquidity to mop up excess housing inventory.

Autos take driver’s seat in China’s new economy

19 Sep 2024

Beijing wants carmakers to reserve overseas factories for final assembly of vehicles. It will slow tech transfers like those that helped the People's Republic get ahead in the industry. Slowing GDP growth is making China protective of companies as they expand overseas.

Beijing’s pension plan grasps at a utopian reality

17 Sep 2024

China is raising the retirement age for the first time since the 1950s, and increasing the number of years workers must contribute to receive payouts. Both thresholds remain low but policymakers are right to tread cautiously. Boosting the workforce in a slowing economy is risky.

For global firms, India IPOs are a honey trap

17 Sep 2024

Hyundai and LG Electronics are each keen to float their local subsidiary on Mumbai bourses. Rich valuations are on offer. Companies have been burnt, though, by chasing additional listings around the world. The risk of getting hurt looks particularly bad in India.

ASML faces bigger problems than China

16 Sep 2024

Fears of US tech export curbs have pummelled the $320 bln Dutch firm’s shares. A longer-term worry is that the growth of AI leads to new technologies, and less need for ASML’s machines that make chips smaller and efficient. That, more than trade wars, may hurt its rich valuation.

India’s mortgage IPO builds on many riches

16 Sep 2024

Shares of Bajaj Housing surged 125% on their debut. That reflects faith in its $56 bln investor darling parent and robust demand for expensive homes. It also hints at deep scepticism among sellers about the sustainability of rich valuations in the country's equities market.

The European Union risks a sad, bad future

16 Sep 2024

The EU economy is stagnating, while Russia, China and even the United States may bully the bloc. There are potential fixes, as former European Central Bank boss Mario Draghi set out last week. But the EU and its members are currently in no position to implement them.

China mortgage cut is start of confidence rebuild

13 Sep 2024

Beijing may significantly lower rates on existing home loans, per Bloomberg. That might convince property owners that there are better alternatives than stepping up mortgage repayments. It is a step toward fixing a $1 trln headache for officials, and improving consumer sentiment.

China wins only token victory in EU car wars

13 Sep 2024

Spanish PM Pedro Sanchez wants Europe to drop duties on Chinese EVs, suggesting the Middle Kingdom’s plan to turn member states is working. But blocking the levy will be legally tricky, and Brussels’ credibility is at stake. Beijing faces a long road to upend the union’s plans.

Midea listing promises Hong Kong a shot in the arm

12 Sep 2024

The electronics maker’s $3.5 bln offering stands to raise more in one deal than the city has seen all year. With solid earnings, diversified revenue sources and strong investor interest, the share sale could provide a boost to sentiment in the deal-starved market.