Evergrande finally hits on some sensible M&A

October 4, 2016

The debt-laden developer plans to swap assets for control of a mainland rival. By acquiring the $1.6 bln Shenzhen Real Estate, Evergrande may win higher valuations onshore. Assuming the overhaul gets past regulators and investors, this makes more sense than other recent deals.

China ties can help Hong Kong catch up in fintech

September 30, 2016

The city is playing catch-up with Singapore in financial technology. But as a gateway to mainland China, Hong Kong has two big advantages: easy access to a huge market, and proximity to tech giants Alibaba and Tencent. Those benefits should help it close the gap.

China’s HK office obsession locks in low returns

September 29, 2016

Mainland companies such as Evergrande are snapping up prestigious Hong Kong office buildings. With rental yields below 3 pct, these seem like poor investments. That suggests buyers might also be looking for ways to guard against a further selloff in the yuan.

China postal bank aptly fails to push envelope

September 21, 2016

Postal Savings Bank is raising $7.4 bln after pricing shares in its IPO near the bottom of the range. The implied worth of the lender's equity is 0.93 times its forward book value, in line with peers. Higher costs and loan concentration means it is lucky to secure that.

Postal bank’s $8 bln IPO scrapes through the door

September 13, 2016

Postal Savings Bank of China is roughly worth its trailing book value at the middle of the price range. SOE listings can't pass at a discount. But that's where rivals with higher returns trade. The bank's safer lending profile, and anchor investors, should stop logic taking hold.

Chinese fintech could help revive Hong Kong market

September 2, 2016

Web groups like Alibaba snubbed the territory to float Stateside. A new breed of financial upstarts with few global peers may find Hong Kong more welcoming. A few multi-billion-dollar listings would cut the bourse's reliance on stodgy financial and property giants.

Hong Kong’s cornerstone problem goes postal

August 25, 2016

Postal Savings Bank of China may sell as much as 80 pct of its $8 bln share offering to cornerstone investors. One unlikely ally, a big state shipbuilder, is already down for $2 bln. This is fresh evidence, on an epic scale, of how Hong Kong's IPO crown is thoroughly undeserved.

Review: The limits of predicting China’s demise

August 19, 2016

The country's prospects are bleak, David Shambaugh argues in "China's Future". His critique of the Communist Party's political flaws goes far deeper than most forecasts of economic collapse. Yet foretelling doom at some indeterminate point in the future still has limited value.

Shenzhen-HK stock link tees up “Bubble Connect”

August 17, 2016

Investors in the two cities will soon get access to each other's bourses. The addition to the Shanghai Stock Connect further opens mainland markets. The prospect of China's get-rich-quick punters exporting their investing tactics into Hong Kong small-caps is less heartening.

Hong Kong’s special status is in need of renewal

August 4, 2016

The former colony has mostly thrived in the 19 years since China took charge with a promise to leave it alone until 2047. But society is divided and the rule of law under strain. Without reassurances about its long-term future, Hong Kong faces an exodus of citizens and companies.