Ethan's Feed
Apr 14, 2014
via Breakingviews

China’s car joint ventures aren’t built to last

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Chinese drivers are booming in number, and foreign auto companies have cruised away with most of the sales. But access to what is now the world’s largest auto market has come with a big financial concession: joint ventures with local partners. Those alliances haven’t fulfilled Beijing’s goal of developing competitive Chinese brands. That divided interest could lead to future break-ups.

Apr 14, 2014
via Breakingviews

China’s car joint ventures aren’t built to last

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Chinese drivers are booming in number, and foreign auto companies have cruised away with most of the sales. But access to what is now the world’s largest auto market has come with a big financial concession: joint ventures with local partners. Those alliances haven’t fulfilled Beijing’s goal of developing competitive Chinese brands. That divided interest could lead to future break-ups.

Feb 28, 2014
via Breakingviews

Macau casino stocks are priced for perfection

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist.  The opinions expressed are his own.

Macau’s casino stocks are priced for perfection. A building boom will expand capacity in China’s gambling enclave. But to justify their valuations, gaming operators not only need to attract more punters but encourage them to spend more at the tables. Any slowdown or increased competition could test excited multiples.

Feb 28, 2014
via Breakingviews

Macau casino stocks are priced for perfection

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist.  The opinions expressed are his own.

Macau’s casino stocks are priced for perfection. A building boom will expand capacity in China’s gambling enclave. But to justify their valuations, gaming operators not only need to attract more punters but encourage them to spend more at the tables. Any slowdown or increased competition could test excited multiples.

Feb 7, 2014
via Breakingviews

China’s “biggests” come early, late or not at all

By Ethan Bilby and John Foley
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

China collects superlatives. In 2013, it added biggest goods trader, top red wine consumer and number one oil importer. Some “biggests” are a sign of investment potential, but others suggest inequality and inefficiency. Meanwhile, some of the most meaningful, like having the world’s dominant currency, still look a long way off.

Jan 30, 2014
via Breakingviews

Lenovo’s M&A spree challenges investors’ faith

Photo

By Ethan Bilby and Peter Thal Larsen
The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Lenovo prides itself on being a modern multinational, but its approach to divulging information remains frustratingly old-school. The Chinese group is buying Google’s Motorola phone business just a week after picking up IBM’s low-end server unit. Adding the two loss-making divisions to its portfolio will cost up to $5.2 billion in cash and stock. Though there’s some strategic logic, shareholders have little way of working out whether the deals stack up.

Jan 29, 2014
via Breakingviews

Apple numbers show scale of China challenge

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist.  The opinions expressed are his own.

Apple may be a dominant player in flogging smartphones in most of the world, but it’s still an also-ran in China. Disappointing global sales increase the pressure on the iPhone maker to gain ground in the People’s Republic. Though its deal with China Mobile should provide a boost, lower-cost rivals will limit its market share gains.

Jan 20, 2014
via Breakingviews

Quitting China is all about knowing how to go

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

An increasing number of foreign businesses are folding their tents in China. Multinationals used to be desperate to get into the People’s Republic. Now, as easy growth vanishes, leaving China is becoming less unusual. While some have kept a foot in the door, others have made a show of slamming it.

Jan 10, 2014
via Breakingviews

China still means the world to car makers

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

China loves to do things big, and that includes buying cars. The country accounted for 85 percent of the expansion in the global automobile market last year. China’s growth may down-shift to 10 percent this year, according to consultancy IHS, as top cities introduce caps on new car-buying. Even then, it remains the world’s most important car market.

Dec 30, 2013
via Breakingviews

Beijing will block a big overseas deal in 2014

Photo

By Ethan Bilby

The author is a Reuters Breakingviews columnist.  The opinions expressed are his own.

China will seek its own GE-Honeywell moment in 2014. European regulators asserted their growing power over global competition when they blocked the merger of the two U.S. industrial companies in 2001. Beijing’s antitrust watchdog is already giving increasing scrutiny to tie-ups even when both companies are foreign. The desire to show its economic might could see it block a deal outright.

    • About Ethan

      "Ethan is Reuters Breakingviews corporate China columnist based in Hong Kong. He joins the team having covered trade disputes, foreign affairs, and EU politics in Brussels. Ethan began working for Reuters as a graduate trainee in London and speaks Mandarin Chinese, Danish, Swedish and Spanish. Follow Ethan on Twitter at @EthanBilby"
    • Contact Ethan

      Phone:
      +852 2843 6398
    • Follow Ethan