Corporate Governance

Chinese grocery apps risk spoiling early

28 Jun 2021

Missfresh shares fell 26% on their New York debut, a worrying sign for rival Dingdong Maicai’s upcoming listing. Price wars and logistics costs have crushed margins and e-commerce giants are muscling into the sector. Joining forces may give both a better chance of survival.

Geely’s reversal clears way for STAR takeoff

28 Jun 2021

The Chinese carmaker dropped plans to list on the technology growth board citing “strategic adjustments”. Chances are strategy was adjusted by the government, which wants to prevent STAR from being overrun by mature giants. That’s mixed news for Syngenta, also in the queue.

Toshiba chair ouster risks strategic hold-up

25 Jun 2021

Shareholders have voted out the $20 bln conglomerate’s respected board chair in one of Japan’s biggest-ever corporate upsets. Yet toppling Osamu Nagayama, whose tenure post-dated the latest scandal, causes confusion and could delay the reforms sought by aggrieved investors.

China’s prolonged credit-scoring saga amasses risk

24 Jun 2021

Ant may be trying to wriggle out of a co-op with rivals by forming a venture with state-owned companies. That would be better for the fintech giant, but not necessarily for the public. As consumer debt grows, Beijing’s inability to devise a decent system wastes precious time.

Capital Calls: Schwarzman’s double tax speak

23 Jun 2021

Concise views on global finance: The founder of Blackstone has a love-hate relationship with capital gains changes.

Chinese buyout provides instructive exit interview

22 Jun 2021

After months of talks, Japan’s Recruit is backing a $5.7 bln privatisation of employment portal 51job. Growth is patchy while rival Kanzhun’s shares have soared following its IPO. It’s a timely reminder of the occupational hazards for investors in U.S.-listed Chinese companies.

China’s education crackdown flunks economics

21 Jun 2021

Tougher rules on tutoring services are hammering shares of TAL, Gaotu and others. The country’s manic competition for school admission distorts the labour supply and suppresses the birth rate. It’s a byproduct of a widening wealth gap, however. This approach could make it worse.

Toshiba’s scandal-hit board is on borrowed time

17 Jun 2021

The $20 bln Japanese conglomerate sacrificed just two directors after an inquiry judged insiders colluded with government officials to block activists. Yet all the top brass are tainted by association. Transparently phasing in their replacements would help rebuild investor trust.

Capital Calls: Platinum Equity, FTC chair, Tui

16 Jun 2021

Concise views on global finance: The buyout firm acquires textbook company McGraw Hill and the maker of Singer sewing machines; Joe Biden’s pick for the Federal Trade Commission brings swagger; and another capital hike will still leave the German holiday group heavily indebted.

Capital Calls: Corporate America blowback

15 Jun 2021

Concise views on global finance: An investor lawsuit against Trump-era rules on shareholders' proposals is the latest sign of the tables turning.

Beijing finally gives China shorts a helping hand

15 Jun 2021

Central government crackdowns and the collapse of U.S.-based fund Archegos have delivered selective relief to investors betting against Chinese companies listed in New York. Caution is warranted as outbound investment quotas ease. Patriotic reinforcements are on the way.

Toshiba mess will be useful national embarrassment

10 Jun 2021

An independent probe found the $20 bln Japanese conglomerate sought to subvert shareholders in conjunction with the government. The findings intensify pressure for a sale, bolster the broad case for activist investors and should kick Japan’s governance changes into higher gear.

Friends-turned-foes set China’s UPS on new route

9 Jun 2021

The $51 bln SF has long thrived alongside e-commerce giants. But boss Wang Wei is now under siege as the likes of JD expand their own logistics. Plans to raise new equity and spin off a subsidiary, among other things, should help it bulk up against deep-pocketed web rivals.

China’s Evergrande headache turns into a migraine

9 Jun 2021

Beijing wants lenders to stress-test their exposure to the developer, Bloomberg reports, which owes over $100 bln. In focus is troubled Shengjing Bank, but its tentacles stretch into larger institutions. With traders already anxious, a misstep by either side could upend markets.

Russian gold IPO hunters can afford to wait

8 Jun 2021

London listing candidate Nord Gold boasts scale, healthy margins and a decent dividend. But it’s owned by a tycoon and his sons. Given miners’ track record in snubbing minorities, investors may find it preferable to wait for the stalled IPO of peer GV Gold to return.

Capital Calls: Medline’s money machine

7 Jun 2021

Concise views on global finance: Blackstone and partners’ purchase of a majority stake in the $34 bln medical equipment maker could generate a big windfall for its founding family, without the clan members handing over the keys to their empire.

Capital Calls: Turkish gas, Generali, Garuda

4 Jun 2021

Concise views on global finance: President Erdogan’s “good news” on hydrocarbons smells off; the Italian insurer’s 1.5 bln euro bid for NN Group’s asset management unit may trigger a shootout; the Indonesian flag carrier’s long struggle to avoid bankruptcy is coming to a head.

Yuan bulls prod U.S.-China trade talks

3 Jun 2021

Beijing is trying to slow a blistering rally reinforced by foreign capital. The currency’s strength has yet to dent China’s goods surplus, but it could further saddle U.S. consumers with higher prices. That puts pressure on the White House to cut tariffs without losing face.

China’s Zillow can clean up its dual-class house

3 Jun 2021

The late founder of $59 bln Ke left behind a 39% economic stake in his online real estate broker with 81% of the voting rights. There’s no good reason for a trust to wield such feudal control over a company. Converting the shares to common ones would be the right thing to do.

BlackRock’s green activism fires on some cylinders

2 Jun 2021

The $9 trln asset manager voted with a hedge fund against Exxon Mobil and for tougher emissions targets at Chevron. That’s progress. Still, its voting record with other oil majors like Royal Dutch Shell suggests it sometimes gives polluters a pat rather than the required shove.