Fintech

Air seeps quickly out of SoftBank bubbles

12 Dec 2019

Ping An’s bank-software vendor OneConnect slashed its IPO valuation to half the $7.5 bln imputed when Masayoshi Son’s Vision Fund backed it last year. SoftBank also just took a loss on dog-walking outfit Wag. Dozens of startups from Didi to Oyo may soon be feeling deflated, too.

Ping An’s fintech halo is losing its glow

4 Dec 2019

China's top insurer may list its OneConnect banking software business at a $5 bln valuation. That would be a third lower than its last funding round, which included SoftBank’s Vision Fund. Other cutting-edge ventures have hit bumps, too. Ping An is falling short of the hype.

Online loans party leaves Seoul set for a hangover

3 Dec 2019

Peer-to-peer lending is flourishing in South Korea, despite trouble elsewhere. That’s thanks to government support and dysfunctional banks. But with the economy slowing and households already carrying $1.3 trln of debt, there is credit pain ahead. Web upstarts will feel it first.

The Exchange: Kill your terminal

26 Nov 2019

Traders resent expensive tools like Bloomberg and Eikon, but they need them to chat. Goldman-backed Symphony, at $20 a month, wants to break in. CEO David Gurle talks about the challenges of compliance, his deal with China’s Tencent, and the future of finance software.

Lisbon tech confab is antidote to WeWork gloom

11 Nov 2019

Entrepreneurs and investors who joined the 70,000-strong Web Summit crowd were unfazed by plunging valuations of SoftBank-backed companies, including the office sublessor. Still, the reality check is making sustainable growth and positive cash flow the industry’s new watchwords.

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.

Wirecard is becoming uninvestable

15 Oct 2019

The $15 bln payments group’s share price fell 19% after the FT said it overstated sales. The company disputes the claims. Persistent volatility makes life hard for short-term traders. Long-term investors may be put off as the latest allegations involve a bigger chunk of revenue.

Wirecard’s 2025 crystal ball smacks of complacency

8 Oct 2019

The $19 bln German payments group reckons transaction volumes, revenue and EBITDA will rise more than sixfold compared with 2018. Such forecasts ignore the risk of big tech groups like Facebook muscling in. Accusations of accounting impropriety still weigh on its valuation.

Digi-banks seem short on financial innovation

1 Oct 2019

Revolut and Monzo wooed millions of customers and secured multi-billion dollar valuations with slick apps and low fees. But they’re not earning much revenue. If flogging subscriptions and commission-based products fails, the temptation will be to lean on old-school bank charges.

Tencent is stuck in a losing battle with Beijing

28 Aug 2019

A year after a video-games crackdown hit the web giant, its $21 bln music-streaming arm may be under antitrust scrutiny. That makes Pony Ma's hopes of building an entertainment empire look fragile. It’s a reminder too that China's tolerance of its new economy champions is waning.

JD deserves to be in trade-war tech discount bin

9 Aug 2019

Chinese new-age stocks have turned volatile. Loss-making JD, the $40 bln Alibaba-rival, has lost up to one fifth its value since July. The retailer’s focus on sales of big-ticket items make it especially vulnerable to slowing growth and trade tensions. Rivals look more nimble.

Masa could do with more Buffett at SoftBank

7 Aug 2019

Quarterly net profit rose 259% on a big stake sale, but operating income fell. More stable cashflows at Masayoshi Son’s group barely cover loan interest. SoftBank is likened to Berkshire Hathaway, which has steadier income from duller companies. That may be worth emulating.

The Exchange: China’s unicorn squeeze

5 Aug 2019

Mainland startups are under pressure, as once-plentiful funds dry up. Jixun Foo, managing partner at GGV Capital and a backer of tech giants like Didi Chuxing, discusses with Alec Macfarlane why the drop-off in financing could ultimately benefit investors.

Banking tests Jack Ma’s lemons-to-lemonade skills

1 Aug 2019

China makes life deliberately hard for online lenders like MYbank, backed by Alibaba's founder. The bank is now raising capital, but what it really needs are elusive deposits. Still, MYbank is growing and profitable, and Ma has experience at being the financial underdog.

JPMorgan shows fintech lender who’s boss

29 Jul 2019

Shares in online upstart On Deck plummeted more than 25% after Jamie Dimon’s $377 bln bank decided it no longer needed help sourcing small-business loans. That may be an overreaction. But it’s a reality check: Supposed financial disruptors need banks more than banks need them.

Gamer favourite Razer’s next level demands focus

23 Jul 2019

The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.

Lufax sounds Beijing death knell for peer lenders

18 Jul 2019

China’s top peer-to-peer lender plans to exit the sector, the most telling sign yet that a regulatory crackdown could kill the industry. The Ping An unit and one-time IPO candidate can fall back on money management and other forms of lending. Rivals may be less lucky.

Stalling Didi scrabbles to rev its China engine

18 Jul 2019

The ride-hailing app may try to raise a fresh $2 bln from investors. Even with a dominant share of its home market, loss-making Didi is struggling with regulatory demands and a plethora of small rivals. Lacklustre debuts from rivals Uber and Lyft may put off new backers too.

SoftBank’s robotics IPO faces a reality check

17 Jul 2019

China’s CloudMinds, 35% owned by Masayoshi Son’s Vision Fund, is seeking $500 mln in a U.S. float. The loss-making robot startup reckons AI-powered androids are tomorrow’s cleaners. It’s a tough sell in the real world, where most Chinese tech floats this year are now underwater.

Tencent holds key to China’s e-sports bonanza

15 Jul 2019

DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.