Wei's Feed
Dec 28, 2012
via Breakingviews

Review: China’s red capitalism needs retooling

Photo

By Wei Gu
The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

China’s authoritarian capitalism may be a victim of its own success. It is getting harder to satisfy a population that is devoid of ideology and which demands non-stop lifestyle improvements. Powerful state-owned companies are consuming the fruits of reform. Moreover, the system’s lack of checks and balances has led to widespread corruption. For China to thrive, it needs change its one-of-a-kind development model. That is the persuasive argument made by journalist-turned businessman James McGregor in his new book, “No Ancient Wisdom, No Followers”.

Nov 23, 2012
via Breakingviews

New risk factor for China stocks: divorce

Photo

By Wei Gu

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

Broken marriages are an unwelcome new risk factor for China investors. Shares in Longfor Properties dropped 4 percent on Nov. 20 on news that its founding couple had divorced and split their controlling stake, sparking fears of a covenant breach. Family feuds are growing more common, and investors are taking a share of the strife.

Nov 22, 2012
via Breakingviews

PICC seeks strength in numbers ahead of IPO

Photo

By Wei Gu

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

The People’s Insurance Company of China is all about the power of big numbers. The insurer’s 17 investment banks have helped it sign up 17 “cornerstone” backers in advance of its $3.6 billion Hong Kong offering. Though they’re hardly big-name value investors, they improve the likelihood of getting the deal done.

Nov 22, 2012

BREAKINGVIEWS:PICC seeks strength in numbers ahead of IPO

(The author is a Reuters Breakingviews columnist. The
opinions expressed are her own)

By Wei Gu

HONG KONG, Nov 22 (Reuters Breakingviews) – The People’s
Insurance Company of China is all about the power of big
numbers. The insurer’s 17 investment banks have helped it sign
up 17 “cornerstone” backers in advance of its $3.6 billion Hong
Kong offering. Though they’re hardly big-name value investors,
they improve the likelihood of getting the deal done.

Nov 20, 2012
via Breakingviews

Weibo has reason to “open sesame” to Alibaba

Photo

By Wei Gu

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

Weibo has reason to “open sesame” to Alibaba. A possible purchase of a 15-20 percent stake in China’s Twitter by the country’s largest e-commerce group, Alibaba, as reported by China Business News, makes strategic sense. It could pave the way for owner Sina to spin Weibo off, and create revenue synergies for both.

Nov 20, 2012

Amazon of China defies down-round blues after all

(The author is a Reuters Breakingviews columnist. The
opinions expressed are her own)

By Wei Gu

HONG KONG, Nov 20 (Reuters Breakingviews) – The Amazon of
China defied the down-round blues. With a new investment round
unveiled last week, e-commerce upstart 360buy.com, aka Jingdong
Mall, saw its valuation swell by 15 percent in a year. Despite
widening losses, venture capital continues to pour money into
China’s crowded e-commerce space. But as players feverishly
compete for market share by discounting, profits look ever more
elusive.

Nov 15, 2012
via Breakingviews

Old hands to become China’s new finance guards

Photo

By Wei Gu

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

China’s leadership reshuffle extends to its financial sector. The country’s central bank chief may step down after being left out of the Party’s central committee. The heads of the China’s sovereign wealth fund and Bank of China’s chairman are among the candidates for promotion. Although the state maintains a tight grip on financial matters, personal styles still matter.

Oct 25, 2012
via Breakingviews

Mixed messages for Chinese IPO hopefuls

Photo

By Wei Gu

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

Chinese IPO hopefuls are getting mixed messages. Foshun Pharmaceutical, whose name means “revival” in Chinese, has raised $500 million in the first Hong Kong offering for three months. At the same time, however, a real estate trust backed by Li Ka-Shing has cancelled its Singapore listing. Despite a market recovery, the summer lull isn’t over yet.

Oct 18, 2012
via Breakingviews

China’s mild slowdown dims hope for big stimulus

Photo

By Wei Gu

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

At 7.4 percent, China’s third-quarter GDP growth rate was the lowest for three years. But it looks like the worst of the recent de-acceleration is over.

Oct 16, 2012
via Breakingviews

Failed China Gas bid leaves business unfinished

Photo

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

By Wei Gu

Sinopec’s failed bid for China Gas leaves business unfinished. The Chinese oil producer had to drop its $2.2 billion offer after failing to secure regulatory approval to buy the gas company. As a state-owned bidder, the political sensitivities were too great, and the price probably too low. Yet China’s fragmented gas industry still needs to consolidate.