Asia-Pacific

Hyundai’s extra gear is short on staying power

26 Jul 2024

Earnings at Korea’s largest carmaker jumped 23% last quarter, bucking a trend that had rivals from Tesla to GM to Nissan stalling. Yet investors have wiped almost 6% off the share price. Robust hybrid and SUV sales may not offer lasting protection as consumer confidence falters.

Chinese EV IPO drives a precarious line in Asia

26 Jul 2024

Hozon may raise $1 bln in Hong Kong to finance a regional expansion. Countries like Thailand and Indonesia hold even more appeal for the Neta maker and rivals like BYD as the EU and US erect roadblocks. But pushing hard into small markets risks rapid saturation and a backlash.

India wants to be China’s gateway to the West

26 Jul 2024

Rather than integrate into its neighbour’s supply chain, the South Asian country wants to court Chinese investment. Its annual economic survey lays out a way for firms from Shein to BYD to keep selling in Western markets. A lot rides on how the Sino-American trade war plays out.

Anglo American has a job to exit post-BHP hole

25 Jul 2024

The $38 bln miner unveiled better-than-expected half-year earnings. But after fending off his Australian suitor, Anglo boss Duncan Wanblad has to give impatient investors good news on his self-help plans. Coal and diamond headaches make that increasingly hard to do.

Carmakers drive efficiency hopes into a ditch

25 Jul 2024

The shares of carmakers Nissan and Stellantis fell around 7% after weak results. The tough US market is hurting sales, erodes the European group’s high margins and hinders its Japanese peer’s turnaround. Unsold cars and cautious consumers mean any recovery will take time.

China’s leaders pitch their tent in a rainstorm

25 Jul 2024

The five-yearly Communist Party meeting known as the Third Plenum is historically tied with economic policy shifts. Slowing growth and rising trade tensions make the timing apt. In this Viewsroom podcast, Breakingviews columnists discuss what the event means for China’s future.

China’s slump hints at a unique liquidity trap

25 Jul 2024

Record money supply has failed to revive growth. As the impact of monetary loosening fades, Beijing is ready to spend on welfare to encourage savers to consume. Inspiring the private sector to invest in a ‘socialist market economy’ is a trickier part of the problem to solve.

French luxury’s China pain may be more evenly felt

24 Jul 2024

Headwinds from Beijing are affecting the performance of Hermès, LVMH and Kering. The three groups continue to operate in different leagues, but they share a common dependence on the People’s Republic. China’s shaming of luxury implies Hermès may be less insulated than before.

China stocks’ ‘policy put’ is breaking down

24 Jul 2024

Chinese markets' bull run has come undone as hopes for significant stimulus crumble. Without follow-through on vows to shore up the economy, trading cycles could grow shorter and more volatile as speculators race to profit off fleeting rallies spurred by signals from Beijing.

Two old loves come back to haunt Singapore’s GIC

24 Jul 2024

Taking a long view is a hallmark of the $770 bln sovereign fund. Still, a big exposure to emerging-market equities, including China, and to bonds and cash, is spoiling returns. The city-state has a lot riding on whether that improves in the short term.

Tech poster child poses a problem for Korea Inc

23 Jul 2024

Billionaire Brian Kim’s arrest for his role in a K-Pop deal adds to his Kakao empire's mounting legal woes. Its dominance in messaging also is a regulatory headache. Yet a tough crackdown on the company could jeopardise the country’s new breed of promising global businesses.

WH Group’s US spinoff can undo hamfisted bet

23 Jul 2024

The China-based pork producer aims to relist the Smithfield unit it bought for $7.1 bln over a decade ago. Trade wars and swine fever have dashed hopes of integrating US and mainland operations. By the same token, Smithfield's Wall Street return can unlock value for its parent.

Big business curbs India’s populist instinct

22 Jul 2024

Bengaluru's home state of Karnataka backed down from a plan to force firms to hire more locals following a strong industry backlash. It's a relief for employers from Goldman Sachs to AB InBev. But pressure from the jobs crisis is building and will keep rearing its ugly head.

China rate cuts usher in next stimulus stage

22 Jul 2024

Days after Party leaders unveiled sweeping pledges to revive the $17 trln economy, the central bank unexpectedly cut key lending rates. It's a modest move but helps the PBOC establish a new benchmark and signals Beijing's urgency to speed up reforms. More policies will follow.

Cyber meltdown points to downsides of efficiency

19 Jul 2024

A software update by $83 bln CrowdStrike grounded flights and disrupted financial markets. That’s possible because businesses work with a small number of providers, seeking lower costs. It supports rich tech valuations, but also heightens the risks of a catastrophic failure.

Apple’s India ascent is a salve for China woes

19 Jul 2024

The iPhone-maker’s sales in the South Asian country surged to $8 bln thanks to a luxury boom. That pales next to the $73 bln of revenue from the People’s Republic, but stiff competition and sluggish consumption there are a headache. That makes India increasingly vital for Apple.

China’s EU-made EVs are in pole position – for now

19 Jul 2024

BYD and Chery are planning plants in the European Union; peers will follow. While factors like labour and energy add 25% to the cost of cars made in the bloc, tech and design mean the overall product is cheaper than Western rivals’. But Brussels could yet complicate matters.

China’s plenum strikes the right opening chord

18 Jul 2024

Party leaders pledged at a key meeting to ‘unswervingly encourage’ the private sector. The details will be key but there are enough fresh signals to suggest President Xi Jinping sees the problems in the $17 trln economy, and may adjust policy course to shore up confidence.

Sapporo might get half-drunk on efficiency

18 Jul 2024

After the $3 bln beer maker agreed to rejig its property holdings, activist 3D has detailed exactly how the company should go about it. Japan Inc is warming up to the idea of realising gains on real estate. But there's plenty of room for missteps, even in a seller's market.

HSBC makes right call on CEO, three months late

17 Jul 2024

Georges Elhedery, the $160 bln bank’s new boss, always looked the best available option. HSBC’s current CFO will have a job managing slower growth and tricky Chinese relations. Had the lender endorsed him in April alongside Noel Quinn’s exit, he would be on a firmer footing.