Emerging Markets

Asian energy deal defies green resistance

26 Oct 2017

The $5 bln sale of Equis solar and wind projects in Australia, Japan and beyond to a global fund group sets a new benchmark. As clean projects expand, they'll attract oil titans, too. Donald Trump and Malcolm Turnbull may discount renewables, but investors are inflating them.

TPG follows Turkish raki feat with Myanmar whisky

13 Oct 2017

The buyout firm has sold out of Myanmar’s largest spirits company in a $1 bln deal. As it did in Turkey, TPG again bought small, scaled up and sold to a big corporate buyer. Making deals in places like Yangon is an acquired taste – but can yield potent returns.

Charmed life for Indian IPOs may be short

28 Sep 2017

Huge inflows of domestic cash and a lack of healthy financial stocks have helped two insurers float at punchy valuations. At this rate, India is on track for a record year for new issues. But foreigners are selling and the economy looks shaky. Would-be issuers need to move fast.

MSCI gives investors a shot of China’s old economy

21 Jun 2017

The U.S. index provider took the historic step of adding some mainland-listed shares to its global benchmarks. The new entrants include a raft of banks, manufacturers, and raw-materials firms. This will expose foreign investors to sectors challenged by high debt and low growth.

China index inclusion more form than substance

20 Jun 2017

After deciding against it for three years, MSCI will finally add 222 mainland-listed shares to its global benchmarks. This will be a relief for Beijing, which got egg on its face at prior reviews. But the move is largely symbolic and will generate only modest inflows to China.

MSCI’s China plan is clever window dressing

28 Apr 2017

The index provider has slashed the number of mainland stocks to include in benchmarks tracked by $1.6 trln in assets. This should win support after prior failed attempts. But resulting flows into China will amount to a rounding error. It's a very tiny step in the right direction.

Stars align for Vietnam’s privatisation push

20 Mar 2017

Hanoi's desire to tame the budget deficit and boost efficiency bodes well for the sale of state assets, including big brewers. A buoyant stock market helps. But in the rush to secure fat listing valuations, Vietnam risks driving away the foreign buyers it needs.

Vietnam’s banking malady threatens star status

27 Feb 2017

Local lenders need to keep pumping credit into the economy to sustain the country's 6 pct growth. But banks are short of capital. A plan to allow more foreign investment will only help if Vietnam is willing to let outsiders take control of healthier banks as well as weak ones.

HK exchange seeks to shed old-economy dependency

20 Jan 2017

The Hong Kong bourse wants to shed its overdependence on real estate and finance. A proposed new board with lower entry barriers and weighted voting rights may lure hot startup tickers. But getting off the ground fast will be tricky given unresolved issues on the main board.

Emerging market fans get South Africa wake-up call

25 Aug 2016

The rand has slumped since Finance Minister Pravin Gordhan was ordered to report to a special police unit. Falling stocks and bonds are a timely reality check for money managers who have been lured back to emerging markets. An indiscriminate hunt for yield generally ends badly.

China’s factories gain from march of the sew-bots

11 Jul 2016

Millions of jobs across Southeast Asia are at risk from wider use of automation, a new report has warned. The surprising beneficiary might be China. Robots could add to its shrinking workforce, while its network of suppliers and ports are a strength the rest of Asia can’t match.

BRICS inch towards alternative to dollar bloc

27 Mar 2013

Brazil and China will use their own currencies for trade and the five nations are still working on creating a rival to the World Bank. With nearly half the world’s population and 15 pct of its trade - and despite flawed policies - the group is a useful counterweight.

AB InBev setback may hasten last round of beer M&A

1 Feb 2013

U.S. government opposition to AB InBev’s $20 bln buyout of Grupo Modelo may speed up a last bout of sector consolidation. The world’s biggest brewer may yet find a workable compromise with trustbusters. But an obvious plan B is pouncing on emerging-markets focused SABMiller.

Whole of sub-Saharan Africa is the real quasi-BRIC

14 Dec 2012

South Africa alone can’t match the others in the emerging club. But add non-Arab continental neighbors, and the combined GDP is over $1 trln and growing fast. Single countries are too small for most investors. But if the region can combine markets and trade, it could take off.

Vietnam is a bad example to newly emerging markets

1 Oct 2012

The Southeast Asian nation has gone from budding Asian tiger to near-basket case. The global economic slowdown and local corruption are both to blame. Vietnam needs to reboot its banks and foreign investment plans if it’s to offer any positive lessons for the likes of Myanmar.

Review: Not another BRIC in the wall

10 Aug 2012

Ruchir Sharma wants to identify the next great emerging economies by throwing out well-worn labels. “Breakout Nations” reexamines markets one by one, case by case. Sharma draws original conclusions, though a whirlwind tour of the developing world leaves some lingering questions.

StanChart finds buffer against Asia slowdown risk

1 Aug 2012

The emerging market lender delivered its customary strong growth in the first half, with income up 9 percent. The worry is that continued expansion comes at the expense of ever-higher bad debts. But StanChart is also benefiting as European rivals retreat from Asia.

National breakups don’t work like corporate ones

12 Jun 2012

Take the recent attempt by Malian rebels to divide their country. It’s not wrong in principle. With good will, some national splits - like company demergers - produce smaller, more prosperous nations. But military force makes such results exceptions and disasters the rule.

Emerging markets hit by double troubles

16 May 2012

A loss of investor confidence amid European woes has hit emerging market stocks. The asset class was already exposed to concerns about China slowing and resource nationalism. Emerging markets may be historically cheap. But investors’ overweight stance is apt to be reassessed.

Investors risk missing emerging market sweet spot

3 May 2012

As developing nations mature, investors will want to harness consumers’ economic power. But the widely followed developing-market equity indexes are dominated by big beasts of finance and resources. The juiciest consumer-led returns may come via sector bets and smaller companies.