Fintech

China’s ZTE answers the call on Huawei’s crisis

3 May 2022

Fresh off five years of U.S. probation, the $16 bln telecom-equipment maker is growing sales and improving margins as American sanctions hurt its larger rival. An expanding 5G rollout leaves additional market share up for grabs. Its discounted valuation is poised to be dialed up.

Bitcoin’s African outpost raises several red flags

2 May 2022

War-torn Central African Republic is following El Salvador in adopting the crypto unit as legal tender. The surprise of the region’s central bank and Bangui’s use of sanctioned Russian mercenaries are warning signs. Bitcoin’s quest for mainstream acceptance just got harder.

South Korea Inc heaps added pressure on Samsung

28 Apr 2022

The Galaxy maker’s 51% rise in quarterly operating profit, to $11 bln, only underscores its dependence on memory chips. Despite its ambitions in autos, biotech and other areas, peers Hyundai, SK and LG are moving faster to capitalise on new markets. Idle cash is a growing risk.

Didi’s peers will pay price of New York debacle

19 Apr 2022

The Chinese ride-hailing group is planning a U.S. exit less than a year after arriving. But shareholders, who have seen the stock fall 85% since the disastrous IPO, have no guarantee of an exit afterwards. The corporate wreck will taint other mainland firms eyeing the Big Board.

Capital Calls: GoTo debuts in smart fashion

11 Apr 2022

Concise views on global finance: The Indonesian e-commerce, ride-hailing and financial technology firm, valued at $28 bln, jumped more than 20% in opening trade on its first day in Jakarta.

Shanghai Covid crisis puts China tech on eggshells

11 Apr 2022

City officials have called on food delivery apps from $123 bln Meituan and rivals to help feed 26 mln residents under strict lockdowns. It’s a chance for the companies to win political brownie points and new users. But the logistical challenges risk putting both out of reach.

Capital Calls: Buffett’s HP bet, Gambling M&A

7 Apr 2022

Concise views on global finance: Berkshire Hathaway takes a hefty stake in the computer and printer maker; Betting group 888 negotiates a better price for buying UK bookie William Hill.

Coinbase’s first anniversary will be sober affair

5 Apr 2022

A year after the cryptocurrency exchange went public, its shares have fallen 40%. Relying on fees from retail investors has made for volatile cash flows. A planned NFT marketplace and launching derivatives trading could help, but in those areas Coinbase is already behind the pack.

Buy gas now, pay later is a hard tiger to ride

1 Apr 2022

Fintech firms Klarna and Zip are offering U.S. punters interest-free instalments as a way to manage higher fuel bills. The fact that consumers use loans to afford mere essentials raises the risk of defaulted payments. And unlike discretionary sales, Klarna isn’t getting a fee.

China’s NFTs face long digital purgatory

1 Apr 2022

Blockchain-based assets are catching on with companies like Xtep, which just released metaverse sneakers. Beijing bans cryptocurrencies, however, meaning apps only accept yuan and curb reselling. Absent sanctioned secondary markets, collecting will be merely a token gesture.

Apple Pay push is scarier for fintechs than banks

31 Mar 2022

The $2.9 trln iPhone maker is beefing up its in-house financial tools and muscling into consumer credit, Bloomberg reported. That’s bad news for technology partners and pay-later rivals. Lenders have less to fear: underwriting big loans isn’t lucrative enough to appeal to Apple.

Kuaishou’s comeback gets unwanted Beijing cameo

30 Mar 2022

The $43 bln video-streaming outfit reckons its China business can break even this year. That would please investors, who have seen the stock crater 70%. But reports of regulators readying new rules spell more shareholder pain. Kuaishou’s turnaround may need some rewrites.

Singapore’s rebalancing is delicate act

30 Mar 2022

The pandemic burnished its safe-haven role for rich Asians, but it is flourishing as a centre for Chinese wealth creation too. Even as changing flows of people, business, and money sharpen social challenges, the pivot is restoring the Lion City’s animal spirits.

Capital Calls: Gas stimulus

25 Mar 2022

Concise views on global finance: Direct payments to drivers are better than fuel tax cuts, but neither is ideal.

Capital Calls: Renault out of Russia

24 Mar 2022

Concise views on global finance: Dire prospects for the sanctioned economy make the French carmaker’s decision to leave rational, but costly.

China’s finance technocrats grab back the mic

16 Mar 2022

Vice Premier Liu He wants government agencies to coordinate any new policies that might impact markets with financial watchdogs first. That’s music to the ears of investors tired of endless, roving crackdowns. Tech companies in particular will pray Liu wins this turf war.

GoTo IPO will road-test range of tech rout

15 Mar 2022

The SoftBank-backed superapp is eyeing a $29 bln valuation in a Jakarta listing. Given rival Grab’s disastrous New York debut and Sea’s share price plunge, the timing may bruise its new backers. But waiting much longer risks eroding GoTo’s strong market position.

Tencent’s Beijing woes make case for breakup

15 Mar 2022

The Chinese titan may be in hot water over money laundering breaches on its payments-to-messaging WeChat app. Censors are also targeting its video-games cash cow, adding to a $400 bln selloff. Spinning off the latter would be a simple way to isolate mounting regulatory risks.

India’s food super-app hits new gluttonous heights

14 Mar 2022

Food delivery group Swiggy’s ramp up of its rapid grocery service is locking in higher-spending users, giving the Prosus-backed firm an edge over Zomato. But the tech rout and ugly economics of speedy deliveries suggest a $10 bln valuation is better served up in private markets.

Capital Calls: Buffett, Sanctions, Defence, Canada

28 Feb 2022

Concise views on global finance: The Oracle of Omaha has seen value in his company’s own stock; Switzerland breaks with traditional neutrality over Ukraine; military-equipment stocks are surging; and Ottawa may let the Rogers-Shaw telecom merger follow a discouraging U.S. path.