China

China stocks are still a trade, not an investment

2 Apr 2025

Global traders are returning to Chinese equities but long-term investment allocations have lagged. The $14 trln onshore market remains an IPO wasteland where fast foreign money prevails over buy-and-hold. Beijing’s private sector support will struggle to offset US aggression.

China’s banks head towards new lending woes

1 Apr 2025

The state hopes injecting $72 billion of capital into four big lenders will spark consumer-driven economic growth. But it adds little firepower, and the country’s high savings rate suggests the banks have their work cut out. Doing Beijing’s bidding is already causing stress.

US threat oils wheels of Pirelli’s China derisking

31 Mar 2025

The $6 bln Italian tyremaker is pressing its Beijing-backed shareholder to cut its 37% stake. Pirelli’s US growth plans may admittedly suffer if it doesn’t. But a shift might also enable tycoon Marco Tronchetti Provera to once again use geopolitics to improve his influence.

The Li’s brinkmanship with Beijing will be messy

31 Mar 2025

Offloading global assets from ports to telecoms will help the Hong Kong clan behind CK Hutchison exit a value trap, except China senses betrayal. The Li’s exposure to the country remains sizeable: retail, utility and property assets provide Beijing with ample pressure points.

China insurers find capital home in Hong Kong

31 Mar 2025

The $127 bln Ping An and peers are upping purchases of the city's stocks as they hunt for yield. Low interest rates and a lack of investment options on the mainland will sustain the trend. That should help narrow the premium onshore shares trade at to their Hong Kong equivalents.

Ubisoft debt fix leaves valuation quest on pause

28 Mar 2025

The $2 bln French gaming firm’s $1 bln injection from Tencent brings much-needed cash to cut leverage. In return for its massive investment, the Chinese group merely gets a small stake in a new subsidiary. That reflects a generous value for key titles like ‘Assassin’s Creed’.

‘Pro-growth’ M&A policing is a misnomer

27 Mar 2025

The transatlantic trustbusting consensus forged by Lina Khan and Margrethe Vestager is already fraying. In this week’s Viewsroom, Breakingviews columnists discuss if it will lead to mergers involving national champions such as GSK and BP, and in turn remedy some economic ills.

China has shaky upper hand in battle of the robots

26 Mar 2025

Elon Musk and Nvidia's Jensen Huang have talked up the potential of humanoid machines. Unitree and peers in the People's Republic have an early lead thanks to the country's sophisticated manufacturing supply chains. But US tech sanctions risk derailing China's robot rise.

Geely is legacy carmakers’ electric poster child

25 Mar 2025

The $23 bln Chinese manufacturer’s core earnings rose 56% last year, mostly by defying shrinking demand for gas guzzlers in its home market. Yet it’s also nurturing fast-growing but often unprofitable EV brands like Zeekr. Rivals from Ford to Stellantis will look on with envy.

China Cosco may be shipping war’s first casualty

24 Mar 2025

The world's top shipping group doubled 2024 earnings but Washington's proposed docking fees on China-linked vessels and tariff salvo will dent demand for Cosco services. Rival CK Hutch's $23 bln ports sale also suggests trade will reroute to Western peers. It’s a perfect storm.

Ports deal puts China’s investment case to test

21 Mar 2025

Beijing’s displeasure with CK Hutchison’s $23 bln sale of its docks business to BlackRock comes just as overseas money managers' confidence in the People's Republic was returning. Defending geopolitical interests while wooing foreign capital will require a delicate balancing act.

US markets’ exceptionalism goes into reverse

20 Mar 2025

After years of setting the global pace, the S&P 500 Index has dropped 9% from its peak while Hong Kong and Europe benchmarks rise. In this week’s Viewsroom podcast, Breakingviews columnists discuss whether trade wars and threats to the rule of law portend a durable shift.

China tech giants dig pricey trench for AI war

20 Mar 2025

Tencent tripled capex to $11 bln in 2024 and vowed to increase spending this year to develop models and chatbots. Rival Alibaba pledged $50 bln to AI over the next three years. Yet business models are hazy and competition is fierce. Returns will be a long time coming.

Xpeng’s smart cars confront commoditisation

19 Mar 2025

The $22 bln Chinese firm's assisted-driving systems helped propel its sales 33% in 2024. Now rivals including Tesla, BYD and Geely offer such tech at low prices. Throw in CEO He Xiaopeng's plan to mass produce flying cars in 2026 and the lossmaking group's strategy looks shakey.

China has spicy menu of US trade war reprisals

19 Mar 2025

Donald Trump has yet to impose the levies he threatened on the $19 trln economy. Yet the People’s Republic has a banquet of options, from non-tariff barriers and squeezing firms like Tesla to devaluing the yuan and banning rare earth exports. Escalation means indigestion for all.

CK Hutchison is stuck as a geopolitical pawn

17 Mar 2025

The Li clan hoped to escape Washington’s ire over Panama and unlock value by agreeing a $23 bln ports sale to BlackRock. China is pushing back. Whether Beijing can block the deal or not, the Hong Kong conglomerate’s future is for now largely out of executives’ hands.

BYD’s shareholders are too cautious by half

14 Mar 2025

They snapped up the $146 bln Chinese electric-car maker’s new stock offering after it unveiled an affordable smart-driving system. Yet they value the group lower than peers, even though the autos business sports better growth and margins. BYD deserves to trade at a big premium.

China and US hunker down for long shipping battle

13 Mar 2025

Washington may charge docking fees for China-linked ships and wants allies to follow. The immediate impact is manageable for Chinese firms. But it will take years and hefty investments for the US to break China's shipbuilding dominance. Beijing has options to protect its firms.

China’s new financial captain faces tough mission

11 Mar 2025

Beijing has given sovereign fund Central Huijin control of key players in previous market bailouts. The state giant now oversees firms with more than $27 trln in assets. That better equips it for complex tasks such as defusing local government debt and reflating stock prices.

China’s AI catch-up begins to look inevitable

6 Mar 2025

Beijing’s leap in developing silicon smarts, embodied in DeepSeek’s shockingly cheap model, will challenge US attempts to restrict cutting-edge technology. In this week’s Viewsroom podcast, Breakingviews columnists debate whether it will destabilize the AI market.