Tech

A TuSimple China reversal would be hard to follow

18 Mar 2022

The $3 bln autonomous-truck upstart may sell its unit in the People's Republic. Splitting the Chinese-run firm would allay data concerns. Partners like UPS and better prospects make its U.S. business more appealing. Other Chinese entrepreneurs would struggle to take such an exit.

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.

VCs are victims of their own success

8 Mar 2022

That’s an argument author Sebastian Mallaby makes in his new book on the financiers behind the world’s technology giants. He also discusses the role of luck, founders’ increasing power, late-stage investment pile-on risks and Chinese tech in this episode of The Exchange podcast.

Toshiba gets its own taste of investor impatience

8 Mar 2022

The Japanese conglomerate has urged chipmaker Kioxia and majority owner Bain to revive an IPO as quickly as possible. It’s eager to cash in a 41% stake as Toshiba’s own aggrieved shareholders push back on a breakup plan. At least the buyout shop will prioritise maximising value.

China’s parliament can justify new rubber stamp

4 Mar 2022

The week-long annual joint sessions are usually scripted, back-slapping affairs. This year’s agenda might be hurriedly rewritten as Ukraine and Hong Kong’s Covid outbreak disrupt plans. It’s a chance to reset Beijing’s approach to the pandemic, the West and economic challenges.

Capital Calls: Argentina, Oligarch yachts

4 Mar 2022

Concise views on global finance: Argentina’s $45 bln debt deal is hope trumping experience; Floating assets sometimes worth more than $500 million each are worthy sanctions targets.

Alibaba’s $400 bln selloff makes case for buybacks

24 Feb 2022

The Chinese giant delivered a dismal set of results with sales at its core business falling for the first time. After a 60% drop in the stock over the past year, a big repurchase would send a signal of confidence. With $60 bln of net cash, Alibaba can afford to splurge on itself.

China tutors brave class on corporate reinvention

23 Feb 2022

An education crackdown decimated businesses like New Oriental, which laid off 60,000 staff and reversed into a $876 mln half-year net loss. Its new ventures include e-commerce. Yet tales of extreme diversification by startups can end well in nimble corporate China.

India Insight: Digital diplomacy builds bridges

21 Feb 2022

Open architecture underpinning the country’s booming fintech market is being adopted by Nepal and partly by Bhutan. Google also recommended it to the U.S. Fed. It’s a cheaper way to court allies than China’s Belt and Road projects. The soft power returns are valuable too.

Chinese e-commerce IPO hawks an Alibaba antithesis

17 Feb 2022

Huitongda mainly sells electronics and fertiliser to wholesalers in rural areas. It's a low-margin and simple business compared to the expansive shopping empire run by its large backer. Amid the tech rout, the $3 bln company's Hong Kong stock sale ticks some of the right boxes.

India ramps up the cost of Chinese cash

16 Feb 2022

New Delhi is determined to curb Beijing’s influence in its tech sector. For local startups like Paytm and Zomato, unwinding Chinese investment is a pain. Foreigners like Singapore’s Sea may face a starker choice: cash from the People’s Republic or access to India’s growth market.

The Exchange: Margrethe Vestager

8 Feb 2022

Europe’s antitrust tsar is responsible for keeping U.S. digital behemoths in check and making sure that the bloc doesn’t slip too far behind on technology. She joined Liam Proud to talk about a string of recent court losses and the future of competition policy.

Failed deals illuminate red lines for chip buys

8 Feb 2022

The regulatory foiling of UK-based Arm and Germany's Siltronic, foreign takeovers worth $45 bln on announcement, says more about scarce tech than the prospects for industry consolidation. Humdrum mergers remain a useful way for companies to ride out the global chip crisis.

Toshiba rejig goes long pragmatism, short vision

7 Feb 2022

The $18 bln Japanese titan now intends to split into two, not three. Ditching its earlier plan as too costly makes some sense, while buybacks and more asset sales may somewhat placate its most vocal critics. What’s lacking, though, is a longer-term strategy – and leadership.

Korean retail investors prefer their value trap

27 Jan 2022

LG Chem and SK are spinning off prize units, hoping to shrink their conglomerate discounts. They have met heavy resistance from individual shareholders panicked about dilution. Buybacks and dividends would be more persuasive than jargon about unlocking value.

ByteDance’s lukewarm 2021 presages a bleak 2022

21 Jan 2022

TikTok’s owner grew annual sales 70% to $58 bln. That’s slower than the previous year and is mostly from its home market. An advertising slowdown will further bite, while China’s crackdowns in education and video games have foiled nascent bets. Finding new growth will be hard.

Alibaba’s U.S. cloud probe has big silver lining

19 Jan 2022

Washington is examining whether the $350 bln Chinese e-commerce giant’s data-storage business poses a risk to national security. That could hobble the unit’s global ambitions. But shareholders, at least, have little to worry about yet: They already ascribe almost no value to it.