Hong Kong

Asia’s property taxes are covert capital controls

25 Feb 2013

Hong Kong has hiked real-estate stamp duty in the latest effort by Asian city-states to cool demand. But local first-time buyers are exempt. As long as low rates push investors to seek hard assets in safe havens, pressure to discriminate against foreign speculators will increase.

Asia’s city-states grapple with slowing growth

11 Feb 2013

Singapore and Hong Kong have been regional economic hotspots for decades. Continued expansion requires importing more workers. But popular discontent about crowding and property prices means doors will be less open. Both cities will have to adapt to more pedestrian futures.

Shifting trade winds catch Li & Fung off-guard

14 Jan 2013

It used to be that China produced and the U.S. bought. That’s changing, but at an uncertain pace. A profit warning that wiped 16 percent off the value of Hong Kong supply chain company Li & Fung shows that keeping pace is costly, and there’s plenty of room for error.

Ping An flop could leave HSBC red-faced but richer

9 Jan 2013

The bank’s $9.4 billion plan to offload its stake in the Chinese insurer is in doubt. If regulators block the sale to a Thai billionaire, HSBC’s reputation will take a knock. Finding other buyers won’t be easy. But the recent market rally means the bank could end up better off.

Shanghai stocks set to catch Hong Kong peers

19 Dec 2012

A sharp jump in Shanghai’s index has narrowed the discount between mainland and Hong Kong-listed stocks. Increased quotas for foreign institutions have helped sentiment. If Chinese investors rediscover their enthusiasm for shares, Shanghai may regain its premium.

HSBC proves canny trader with $9.4bln Ping An sale

5 Dec 2012

The emerging market lender flogged 16 pct of the Chinese insurer at a premium to the market price. That’s impressive compared with Bank of America and Goldman Sachs, who accepted discounts for their bank stakes. It should also buy HSBC time to explain its broader China strategy.

HK exchange plays it safe with equity finance

30 Nov 2012

The Hong Kong bourse’s $1 bln share placing allows it to repay more than half the debt used to buy the London Metal Exchange. Ultra-low yields make bonds look tempting. But a recent share rebound - and HKEx’s hefty dividend payout - justifies its cautious approach to leverage.

Chinese consumers move on from old favourites

30 Nov 2012

While China is still spending, some brands have lost lustre, judging by warnings from Yum Brands and jeweller Chow Tai Fook. Slower growth is natural as companies hit a certain size, but fast-shifting tastes are a factor too. Investors need new proxies for Chinese consumption.

Hong Kong offers refuge for China’s orphan stocks

27 Nov 2012

Transport firm CIMC plans to swap its foreign currency “B shares” from Shenzhen to Hong Kong. Capital controls mean it’s not simple. But this offers investors a way out of an illiquid and low-valued investment, and helps tie up a loose end in China’s capital markets. 

PICC seeks strength in numbers ahead of IPO

22 Nov 2012

The Chinese insurer’s 17 investment banks have signed up 17 “cornerstone” backers in advance of its $3.6 bln offering. Though they’re hardly big-name value investors, they are buying more than half the available shares. In a tough market, PICC needs all the help it can get.

HSBC needs to put numbers on China ambition

19 Nov 2012

The emerging market lender is in talks to offload its $9.2 bln stake in insurer Ping An. A sale fits HSBC’s focus on capital efficiency. But now CEO Stuart Gulliver should explain why the bank’s even larger shareholding in Bank of Communications still makes financial sense.

Obama’s victory is a clear win for Asian assets

8 Nov 2012

Markets see-sawed after the presidential election as investors disagreed about whether four more years are good or bad for the economy. But whether the U.S. falls off its fiscal cliff or quantitative easing sparks a robust economic recovery, more dollars seem destined for Asia.

HK’s move to promote women in boardroom is overdue

1 Nov 2012

The pro-business city is catching up with financial centres and Asian neighbours in proposing listed companies state their diversity policy. As in many other countries, women are under-represented on boards. Improving awareness of diversity is the least regulators can do.

Hong Kong’s anti-foreigner property tax may spread

29 Oct 2012

Non-resident buyers have been whacked with an extra 15 percent stamp duty as the territory battles the effects of cheap money and capital flight. The political appeal is likely to outweigh the bad side effects. Other urban hot spots, like London, may be tempted to follow suit.

Hong Kong suffers from being small and open

24 Oct 2012

The territory has intervened again to stop its currency rising. But Hong Kong’s peg is only partly to blame for its liquidity glut. Singapore’s more-flexible exchange rate isn’t faring much better. Small, open Asian economies are basically helpless against Western money-printing.

HK art market shines, Beijing enters blue period

11 Oct 2012

Mainland China’s arts auction revenue plunged 67 percent in the first half, having grown to be the world’s largest in 2011. That has driven domestic auction houses across the border to Hong Kong. There, taking on Sotheby’s and Christie’s will be the big challenge.

China changes leaders, but what comes after Hu?

21 Sep 2012

The country’s new top brass will be revealed within weeks. But what does it mean for investors? What do slowing GDP and anti-Japan protests say about China’s future? And what’s the deal with Bo Xilai? Our new book, “Beijing Opera”, explains the geopolitical event of the decade.

Asia’s crowded IPOs keep banks busy but poor

7 Sep 2012

A dearth of listings has forced underwriters to crowd onto new offerings. Banks get league table credit, while companies can claim safety in numbers. But there’s little sense in scrapping over a dwindling fee pool. Banks must justify their existence in other ways - or shrink.

Urban real estate may not be such a safe haven

4 Sep 2012

Investors seeking refuge from economic turmoil are snapping up prime real estate in cities like London and Hong Kong. The flight to safety crowds out local inhabitants. In the absence of a correction, cities may be forced to become less welcoming to foreign buyers.

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.