China

Bond bulls put Beijing on the horns of a dilemma

28 Jan 2025

The relentless plunge in yields allows China to issue debt inexpensively to stimulate its $18 trln economy, but it also reinforces expectations of slow GDP growth, a weak yuan and the People’s Republic as a low-interest-rate country. Managing that tension is getting riskier.

China advance creates more AI winners than losers

27 Jan 2025

The DeepSeek model’s quality and low cost has spurred a selloff in chips and energy stocks. Chinese competition may indeed hit ‘picks and shovels’ players like $3.5 trln Nvidia. But it’s not yet certain, and making AI less the domain of Big Tech may enhance its broader benefits.

Davos presents elites with economic Rorschach Test

27 Jan 2025

Delegates in the Swiss ski resort hailed Donald Trump’s deregulatory plans and got starry-eyed about AI. Others worried about inflation, debt, and fossil fuels, while Europeans bemoaned their back yard. Assessing the “mood in Davos” reveals more about the observer than the world.

How China can keep pace in the global AI race

24 Jan 2025

The US is trying to curb Beijing’s progress on artificial intelligence. Yet national champions like Huawei, as well as the military, have racked up some wins. Given the potential $6 trln economic prize up for grabs, the People’s Republic has every reason to find more workarounds.

A TikTok deal may be good for US-China trade

22 Jan 2025

President Trump has warned of 100% tariffs on the People's Republic if Beijing doesn't approve a sale of the video app owned by Chinese firm ByteDance. How such a deal would look is unclear, but it'd be an easy way for both sides to show goodwill ahead of thornier trade talks.

Xiaomi’s rally will hit valuation potholes

21 Jan 2025

The Chinese group's market capitalisation more than doubled in a year to over $100 bln, thanks to its entry into the electric-car market. That has closed a once-yawning discount to the sum of its parts. Yet valuing a Chinese electronics-to-autos business will rely more on hype.

RedNote TikTok influx is more curse than blessing

20 Jan 2025

More than 3 mln Americans joined the Tencent- and Alibaba-backed Chinese social media platform as its bigger rival's ban neared. The refugees are sparking cross-cultural repartee but also pushing up RedNote's costs and causing security concerns, complicating its path to an IPO.

Vanke debacle may hasten wider China property fix

17 Jan 2025

Top investor Shenzhen Metro helped keep the developer from joining its peers in default. But Vanke’s bonds are crashing and authorities have detained its CEO, state media report. It suggests drip-feeding aid isn’t working - a lesson Beijing can apply to the rest of the sector.

TSMC teases an alternative reality for AI

17 Jan 2025

The $870 bln chipmaker logged a record quarterly profit and kept its rosy forecasts. Trouble is, most of the assumptions underpinning them may be obsolete once Donald Trump becomes president in a few days. With more trade and tech wars looming, TSMC investors may be too sanguine.

Richemont shine casts fuzzy light on luxury rally

16 Jan 2025

The $94 bln Swiss group’s shares rose 16% as the Cartier owner smashed quarterly sales forecasts. The numbers pushed up rival stocks like LVMH. That seems premature. US consumers may offset weak Chinese spending but most of its competitors lack Richemont’s jewellery focus.

Ping An’s tech dreams may yet exit intensive care

16 Jan 2025

The $110 bln insurer’s days of spinning off web-based ventures to help boost its value are long over. But a quirky special dividend is giving it back majority control of beaten-down but cash-rich Ping An Healthcare just as the online medical firm’s fortunes look set to improve.

US engineers decisive split in global auto market

15 Jan 2025

Washington will ban the sale and import of connected cars and related tech from China. The benefits for GM, Ford and others are debatable. But concerns over data security look hard to dismiss. That means the policy is likely to last, and could catch on in other markets too.

Hong Kong bankers make lemonade out of delistings

15 Jan 2025

Club Med owner Fosun Tourism plans to take itself private, capping a record year of similar deals in a city thirsty for large IPOs. It helps the company's ailing parent and hard-up shareholders get a decent premium. For financiers too, the trend is bittersweet.

Wild TikTok dance adds clumsy Beijing shuffle-step

14 Jan 2025

As the top US court weighs a ban of the popular app, China may be open to letting owner ByteDance sell it to Elon Musk. It’s probably worth some $100 bln, but even with other suitors such as Oracle in the mix, a discount is likely. It also will take more than two to tango here.

Huawei is a microcosm of China’s last four decades

14 Jan 2025

Since its founding in 1987 the tech giant has learned from Western rivals, expanded overseas, and is now on the front lines of a new Cold War. In this episode of The Big View podcast Eva Dou, author of ‘House of Huawei’, explains how the secretive firm became a national champion.

Country Garden’s debt fix is a bet against Beijing

10 Jan 2025

The property developer, once China’s largest by sales, is offering a 90% haircut as an option to restructure $16 bln of offshore bonds. Acceptance would imply creditors have given up hope that the government is about to put more substantive policies in place to boost home prices.

For China, Hong Kong IPOs start to look urgent

9 Jan 2025

The next wave of offerings in the city will come from mainland-listed companies, including those with global ambitions like CATL. Beijing wants to shore up the hub's status as a financial centre. Narrowing fundraising avenues in the People's Republic may make that an imperative.

CATL’s $5 bln listing future-proofs enviable lead

8 Jan 2025

The world’s largest battery maker plans a Hong Kong share sale to fund factories in Europe and beyond. Topping up a $22 bln net cash position with a hard currency would insulate its war chest from a weaker Chinese yuan and allow founder Robin Zeng to extend CATL's dominance.

Cracks appear in China stocks’ fragile bull case

7 Jan 2025

Tencent and CATL ended 2024 with double-digit gains. The duo's addition to a US Defense Department blacklist, though, adds to Beijing’s headache as it tries to prop up the market. Skittish fund managers may well decide investing in Chinese stocks is more trouble than it's worth.

Risk and resilience are the watchwords for 2025

6 Jan 2025

In the past five years, the world economy has weathered disease and war. As Donald Trump prepares to take office again, the range of possible outcomes is wider than ever. Hefty sovereign debts and pumped-up stocks depend on the planet once again coping with fresh shocks.