Corporate Governance

U.S.-China fault line runs right through Hong Kong

28 Nov 2019

President Donald Trump grudgingly signed a law effectively backing the city’s anti-government protesters. He tried to soften the blow for Chinese counterpart Xi Jinping. Bipartisan U.S. support, though, shows antagonism will outlast precarious trade talks – or a change of leader.

Banks Down Under have further depths to plumb

26 Nov 2019

Westpac is parting ways with both its chairman and CEO, days after a money-laundering scandal erupted. The $58 bln Aussie lender becomes the latest of the Big Four to replace its top brass. Persistent rot suggests investors may be underestimating the cost of the cleanup.

AIA buys itself a little extra China cover

25 Nov 2019

The $120 bln insurer hired Lee Yuan Siong from Ping An to be CEO. Weathering strife in Hong Kong, its biggest market, is the most immediate challenge. His tech savvy and mainland political ties, nurtured during his time at the Chinese titan, will be valuable both now and later.

Anime hero toys with Japan’s robotic governance

22 Nov 2019

Bandai Namco, the $14 bln creator of Pac-Man, wants to buy the rest of Sotsu, the company behind the iconic Gundam empire. A Chicago-based investor has flown in to fight a flawed deal unfair to minority shareholders. It may, however, take regulators to save the day.

India’s shadow bank fix shows much-needed audacity

21 Nov 2019

The regulator is taking control of a credit crisis, sending housing lender DHFL and $12 bln of liabilities to bankruptcy court. Unpicking a financial institution’s woes with a process designed for regular corporates is bold. It might also be the only way to break an impasse.

Aviva’s drift to mediocrity may tempt an activist

20 Nov 2019

The UK insurer pledged to simplify its business. Yet new CEO Maurice Tulloch’s strategy review disappointed hopes for asset sales, and mostly reaffirmed older aims. The $21 bln group’s sprawling structure, and discount to peers make it a juicy target for an uppity investor.

Russian tech investors see benefits of state grip

19 Nov 2019

Internet group Yandex’s shares jumped after it tweaked its governance to avoid a clampdown on foreign ownership. The new setup hands power to a fuzzy Russian entity, and could enable government meddling. But shareholders have less to worry about than peers in China, or America.

Chinese state lender sells rural retail risk

18 Nov 2019

Hong Kong-listed Postal Savings Bank, serving some of the country’s poorest folk, is planning a $4.7 bln Shanghai float. That will improve capital buffers, but it might get stuck rescuing rural brethren too. At a premium to book, it’s a doubly pricy bet on the peasantry.

WeWork pulls $26 bln telco deal into its vortex

11 Nov 2019

SoftBank may be considering T-Mobile US boss John Legere to run the office-sharing firm it rescued. But Legere is still clearing regulatory hurdles to a merger with Sprint, also backed by the Japanese firm. His early exit could leave SoftBank’s Masayoshi Son with double trouble.

Cox: Aramco is an ESG investor’s worst nightmare

7 Nov 2019

The Saudi oil giant’s business model is predicated on humans continuing to spew CO2 into the atmosphere. Its governance makes WeWork look benign. Its monarchy is overly tolerant of human rights abuses and beheadings. Fund managers with a conscience should boycott the deal.

Xerox truce leaves future in black and white

5 Nov 2019

The copier-maker’s $2.3 bln exit from its joint venture with Fujifilm beats the convoluted, activist-opposed merger the two had once discussed. The neat ending makes up for years of wrangling. And the $7.7 bln firm’s spiffed up governance and simpler structure may tempt a buyer.

Dormant Samsung rouses Seoul’s other giants

28 Oct 2019

The conglomerate is in disarray: scion Jay Y. Lee is off the board of its $288 bln electronics business, and faces more jail time. Bosses at rival SK Group and autos empire Hyundai, meanwhile, are charging ahead in self-driving tech and other ventures. Korea Inc is due a shakeup.

Hadas: Index funds set companies even more adrift

23 Oct 2019

Institutional shareholders have long treated governance as an expense. The rise of passive investors amplifies the neglect, the OECD suggests. But family or state control have problems too, and stakeholder interests are hard to balance. Boards of directors need clearer goals.

WeWork mess should end the cult of the founder

22 Oct 2019

SoftBank is providing nearly $10 bln to rescue the office-sharing firm, valuing it 83% below its peak. Adam Neumann, the architect of WeWork’s rise and fall, is getting $1.7 bln to step out of the way. If they choose, investors can ensure he’s the last founder able to run amok.

WeWork’s rescue choice couldn’t be easier

18 Oct 2019

The cash-guzzling office-sharing outfit has offers of $5 bln more equity from SoftBank or, if investors can stomach it, super-pricey debt which could put the company under even more quickly. If Masayoshi Son is willing to inject more, WeWork’s co-CEOs should bite his hand off.

Hong Kong shopkeepers live on borrowed time

18 Oct 2019

Small businesses create 45% of jobs in the protest-battered city, yet monetary-easing moves won’t reach companies lenders see as too risky. Many underbanked entrepreneurs need handouts and rent cuts to survive. Their plight reinforces the case for more financial creativity.

Guest view: Governance starts way before an IPO

17 Oct 2019

Investors have been so enamored with unicorns and high valuations that they put up with poor governance. This year’s lame IPO stable serves as a reminder, says Wei Jiang. Directors must do what’s best for the company and all shareholders, not just the party that appointed them.

China’s eco-friendly debt can be a shade greener

16 Oct 2019

Beijing's rules for its pioneering $40 bln green bond market are still too pliable: a refiner last week issued a note to pay for a petrochemical complex. A central bank review now underway offers a chance to boost credibility by pushing guidelines closer to international norms.

Boeing governance fig leaf is too little, too late

14 Oct 2019

The $211 bln airplane maker stripped CEO Dennis Muilenburg of his role as chairman. Ensuring he is focused on the 737 MAX mess is an overdue step, but insufficient. Wells Fargo offers one example of how efforts to fix a culture take time, and eventually an outsider’s perspective.

Japan displays puzzling signs of hubris

11 Oct 2019

Tokyo wants sharper scrutiny of foreign investment. Like this month’s consumption tax hike, the measure could hurt growth. Little wonder the stock exchange chief calls the latest idea "idiotic". Once again official conservatism threatens to derail a tentative economic recovery.