Fintech

Chinese phenom Pinduoduo has some explaining to do

15 Nov 2018

The $19 bln favoured e-commerce site for frugal “aunties from Wuhan” is inflating its top line and understating its costs, alleges short-seller Blue Orca. If true, the charges are damning and threaten PDD’s superlative as the fastest-growing internet seller on the planet.

Payment stars are victims of their own growth hype

14 Nov 2018

Amsterdam’s Adyen and Munich-based Wirecard lost 3 bln euros of market value despite the German group upping its targets. A trigger may have been Adyen’s non-inclusion in a big index. Still, companies priced for years of rapid growth are most vulnerable late in an economic cycle.

EU tech’s unholy alliance takes shape in Lisbon

12 Nov 2018

Europe is tackling the deficiencies that made it a digital also-ran, like lack of talent and funding. Yet vast data hoards and market share still give U.S. giants like Google a massive advantage. Policymakers at last week’s Web Summit in Portugal seemed eager to close the gap.

SoftBank mobile IPO confronts Alibaba history

5 Nov 2018

Masayoshi Son’s $85 bln group quintupled profit in its latest half-year results, and the telecom unit did well ahead of a planned market debut. Listing it could help narrow a huge 60 pct discount to where analysts value SoftBank. The Alibaba flotation hasn’t helped much, though.

Signal is patchy for SoftBank’s jumbo IPO

23 Oct 2018

A mooted $27 bln listing of the mobile unit is key to Masayoshi Son’s vision for the Japanese group but problems are piling up for what could be the world’s biggest IPO. A new rival, high phone fees, and links to Riyadh could all prevent Son dialling up a premium reception.

Monzo traces faint path to digital-banking profit

16 Oct 2018

The UK startup won a million customers with next-to-no marketing, but keeps most funds at the central bank. CEO Tom Blomfield hopes to make money by selling other companies’ products, like insurance or mortgages, in return for a small fee. The numbers at least work on paper.

Natixis tries on ill-fitting fintech clothes

11 Oct 2018

The French investment bank may merge its small payments arm with $4.5 bln compatriot Ingenico. That could help its lowly valuation since the sector is rated more highly by investors. Yet struggling Ingenico, whose shares have plummeted on growth concerns, looks an odd partner.

Opportunism rewards China’s secretive deal giant

20 Sep 2018

Hillhouse has raised over $10 bln for its latest private equity fund, Asia’s largest. It will invest in mature companies and startups, an unusual strategy but suitable for a region where buyouts are scant. Zhang Lei’s returns validate a model rivals are adopting.

Banks give China’s web lenders a second life

19 Sep 2018

Investors are fleeing the country's $200 bln peer-to-peer lending sector, as Beijing steps up its crackdown. The squeeze has pushed many outfits like LexinFintech to seek more funding from banks. Margins will suffer, but it's a small price to pay for growth.

Meituan Dianping IPO demands a nemesis discount

3 Sep 2018

As China’s takeaway-to-taxis unicorn seeks up to a $55 bln valuation, former investor Alibaba is intensifying the rivalry. It began a loyalty plan to get customers spending more and brought in SoftBank to back its Ele.me delivery service. Bad blood should be priced into the deal.

Baidu’s core strength exercise is underappreciated

1 Aug 2018

The $85 bln Chinese search giant delivered 45 pct earnings growth last quarter, having shed a few distractions. The market is still cautious on Robin Li’s big AI plan as economic headwinds loom. But applying machine learning to content delivery - and censorship – should pay off.

The Exchange: Asia’s bubbly entrepreneurs

20 Jul 2018

Pete Sweeney hits the RISE tech conference in Hong Kong and hears pitches on vegan cryptocurrency, fog computing and big data for shrimp farmers. Trade tensions haven’t dented enthusiasm, but venture capitalists expect a correction to flush the dumb money from the market.

Alibaba’s $2 bln food sale hints at indigestion

17 Jul 2018

The e-commerce firm is raising new funds from outside investors for its meal delivery arm Ele.me, media reports. This comes just three months after Alibaba took full control of the unit. Rival Meituan's mooted $4 bln Hong Kong flotation might be giving Jack Ma stomach jitters.

SoftBank gets some help tinkering with valuation

12 Jul 2018

Masayoshi Son’s sprawling operation attracted an investment of over $1 bln from hedge fund Tiger Global. That should help SoftBank narrow its conglomerate discount, as might spinning off the Japanese mobile unit. The massive Vision Fund, though, is a murky hodgepodge unto itself.

Xiaomi IPO will punish bankers twice

9 Jul 2018

The Chinese smartphone-maker’s shares opened below the issue price in their $54 bln debut. It’s not the start tech companies covet. Advisers failed to sufficiently lower an unrealistic valuation goal. Their penalty may be that other big listings in Hong Kong are delayed.

Viewsroom: Is Silicon Valley getting nervous yet?

4 Jul 2018

The tech hub is getting squeezed by new policy restrictions amid a looming trade war between the U.S. and China. How is the Valley holding up? Plus: India's state lenders are losing CEOs. Is running these banks into the ground part of the plan?

Fintech lending throws banks another curveball

28 Jun 2018

Kabbage extends one-fifth of its small business loans at night or over the weekend. It’s no surprise such borrowers aren’t nine-to-fivers. But traditional lenders are. The ability of new entrants to transact 24/7 is just one more way technology is upending the industry.

Baidu’s $1 bln buyback is too little or too much

28 Jun 2018

The $85 bln Chinese web giant has failed to impress with its repurchase plan. The amount wasn't big enough to excite investors and in any event, the search engine operator is supposed to be focused on turning into an AI champion. It has better things to do with the cash.

China dims chances to shine in Asia’s cloud

27 Jun 2018

Demand is rising for remote data services across the region, including from proliferating startups. Chinese vendors such as Alibaba are best placed to challenge the likes of Amazon. Beijing's push for "internet sovereignty," though, may impede expansion, even by local champions.

Chinese P2P giant Lufax dodges valuation bullet

15 Jun 2018

A mooted private fundraising of more than $1 bln makes sense. With regulatory change coming to peer-to-peer lenders, floating now could upset Beijing, and might only be doable at a bargain price. Abundant venture capital offers a way to keep growing without a distracting IPO.