Internet

U.S.-China tech spat is less costly than tariffs

14 Aug 2020

The two nations will review their trade deal as the White House refocuses on a purge of Chinese apps. The economic damage is more limited than tariffs, which upended companies and hurt consumers on both sides. Containing the trade fight is more important than saving TikTok.

Ant’s dual listing could double cross Wall St

13 Aug 2020

A chunk of the $150 bln fintech giant will be sold on Shanghai’s new tech board, where IPO fees are as generous as in New York. Foreign banks in Hong Kong could be left with a smaller share of the pie. If more issuers follow Ant’s march, Wall Street’s dues are in for a reckoning.

Realtor IPO overcharges for Chinese housing

13 Aug 2020

Tencent-backed KE’s U.S. debut could value it at $23 bln. Home sales in China are recovering on easier credit, and the company is growing fast. It’s an online play on a sector that has consistently proven sceptics wrong. The price, however, may cause buyers’ remorse.

India is the neglected elephant in TikTok’s room

10 Aug 2020

Microsoft and Twitter want pieces of the Chinese video app, but seem uninterested in its largest market by users. There may be practical reasons, given Western tech giants remain welcome in India. But they might also fear New Delhi will give local copycats a helping hand.

Pompeo’s Chinese web wall is a tall order

6 Aug 2020

The U.S. Secretary of State's "Clean Network" initiative wants to purge America’s internet of Chinese telecoms, apps, and cloud services. Washington aims to ring-fence the People’s Republic, and Mike Pompeo is seeking allies. The costs for companies on both sides could be high.

China tech will double-down in Southeast Asia

5 Aug 2020

As Washington and New Delhi block Chinese apps, fast-growing markets like Indonesia and Vietnam have gained importance for mainland technology firms. Early movers like Alibaba found limited traction in the region, but the next wave is nimbler, and may enjoy more success.

TikTok learns old lesson about U.S. art of deal

2 Aug 2020

President Trump had significant influence on conversations between Microsoft and TikTok after owner ByteDance’s proposed minority stake in earlier talks posed concerns. On M&A that raises national security worries, Chinese firms will find Uncle Sam is the new poison pill.

ByteDance will bust a softer groove without TikTok

21 Jul 2020

Political pressure from Washington could prompt a sale of the video app, curtailing the global ambitions of $140 bln Chinese parent ByteDance and erasing a fifth or more of its value. TikTok’s local equivalent, plus news, music and other apps, will help it retain viral appeal.

Twitter hack is a nightmare not just for Twitter

15 Jul 2020

A wave of fake tweets from figures like Elon Musk and Joe Biden soliciting bitcoin mean Twitter’s security costs will have to rise. But the social network has the power to move markets, or worse. The risk is that high-profile users change their habits – or regulators step in.

India prize for U.S. tech grows with Chinese wall

14 Jul 2020

Google will invest $10 bln in India over five years or so. A chunk might follow Facebook into Mukesh Ambani’s Jio. The showy confidence in an iffy economy can help to ease regulatory headwinds. When new rules have crippled Chinese-capital dependent rivals, it is extra helpful.

Yum China can fill a pricier bucket in Hong Kong

13 Jul 2020

The $19 bln KFC operator is mulling a secondary float in the city. Its New York shares have been whipsawed by Sino-American tensions. An outsize base of U.S.-centric investors, a legacy of its spinoff, could be to blame. Heading East will fetch a more finger lickin’ valuation.

China’s firewall casts shadow over Hong Kong

7 Jul 2020

Twitter, Google and Facebook suspended cooperation with local courts as new rules allow police to seize assets and force sites to delete seditious content. Others such as Netflix stand to be affected, and blockages seem likely. That can only accelerate the exodus of talent.

Sina’s terrible governance comes home to roost

7 Jul 2020

Less than three years after the Chinese web outfit inexplicably handed control to boss Charles Chao, he wants to take it private. The $2.7 bln offer is at a 20% discount to Sina’s stake in microblog Weibo. Supervoting stock and a weak board put minority holders in a tight spot.

Sea’s $55 bln valuation can rise with the tide

3 Jul 2020

The Tencent-backed tech outfit’s market cap has risen eight-fold in the three years since its New York debut. A virus-related boom in games and e-commerce in Southeast Asia has helped justify a rapid rise, and expansion plans are on. Its payments unit may provide an extra buoy.

Pinduoduo is stuck in startup governance mode

2 Jul 2020

China's e-commerce darling has swapped its founder CEO for the other co-founder. The pair wields supervoting stock and controls the board. The $100 bln company doesn’t even have a CFO or other top executives. They need to upgrade management, but this is an odd way to start.

India’s war on China apps will have network effect

30 Jun 2020

TikTok and others from Tencent to Alibaba are among those banned on security concerns. It narrows a growth market for Chinese tech and may embolden other governments to close doors. But Beijing has plenty of ways to retaliate, including in pharmaceutical supply chains and more.

Tencent embraces its inner Goldman Sachs

29 Jun 2020

The Chinese tech titan’s investment portfolio has swollen to more than $65 bln with stakes in Warner Music, Afterpay and more. The deals, led by a Wall Street banker, are now vital to Tencent’s growth. Financial and strategic returns from buying make up for a lack of building.

Chinese gay dating IPO makes rainbow connection

23 Jun 2020

BlueCity, valued at $300 mln in 2014, wants to go public in New York. Its Grindr-meets-Facebook app caters to low-key but thriving LGBTQ communities. Fast growth has enabled founder Ma Baoli to expand in Asia. Sustained success depends on shifting political and social attitudes.

FOMO draws a crowd to Reliance’s Jio club

19 Jun 2020

Mukesh Ambani has delivered on a promise to make his group net-debt free after raising $22 bln. Most of that came from selling pricey stakes in tech unit Jio to KKR and others. A fear of missing out on India’s next big thing will have helped. Still, the frenzy is rational.

Virtual vouchers offer digital-payments stimulus

19 Jun 2020

Taiwan is issuing $1.7 bln of coupons to goose its economy. These types of handouts have worked to varied effect elsewhere, but often just replace one kind of spending with another. Making them electronic instead of paper should at least help accelerate efforts to go cashless.