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Sep 8, 2011

Breakingviews-Jingdong IPO tests U.S. appetite for China stocks

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

By Wei Gu

HONG KONG, Sept 8 (Reuters Breakingviews) – Jingdong, the
Chinese online retailer, hopes to raise up to $5 billion in New
York. If it does it will set new records for U.S. Internet
initial public offerings.

Sep 5, 2011

Beijing’s role in CCB share sale is troubling

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

By Wei Gu

HONG KONG, Sept 5 (Reuters Breakingviews) – The mystery
buyer Bank of America’s shares in China Construction Bank
(601939.SS: Quote, Profile, Research) may be none other than the Chinese state. The
country’s main foreign reserves fund bought the bulk of $8.3
billion shares sold last week, according to the Financial Times.
That may give better returns than U.S. government bonds, and
probably saved China Construction Bank from an embarrassing
share-price fall. But for Beijing to increase its exposure to
the banks, and use reserves to buoy up their stock, is not
prudent.

Sep 5, 2011

Breakingviews-Beijing’s role in CCB share sale is troubling

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

By Wei Gu

HONG KONG, Sept 5 (Reuters Breakingviews) – The mystery
buyer Bank of America’s shares in China Construction Bank
(601939.SS: Quote, Profile, Research) may be none other than the Chinese state. The
country’s main foreign reserves fund bought the bulk of $8.3
billion shares sold last week, according to the Financial Times.
That may give better returns than U.S. government bonds, and
probably saved China Construction Bank from an embarrassing
share-price fall. But for Beijing to increase its exposure to
the banks, and use reserves to buoy up their stock, is not
prudent.

Sep 2, 2011

China small-stock boom puts big banks in the cold

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

By Wei Gu

HONG KONG, Sept 2 (Reuters Breakingviews) – Small is
beautiful for Chinese initial public offerings –- which leaves
big bank underwriters like China International Capital Corp and
Goldman Sachs (GS.N: Quote, Profile, Research) with slim pickings. So far in 2011 action
has shifted to China’s second-tier stock markets, which favour
nimbler small underwriters. The southern city of Shenzhen has
raised twice as much equity capital as Shanghai this year. Big
guys need to adjust.

Sep 2, 2011

Breakingviews-China small-stock boom puts big banks in the cold

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

By Wei Gu

HONG KONG, Sept 2 (Reuters Breakingviews) – Small is
beautiful for Chinese initial public offerings –- which leaves
big bank underwriters like China International Capital Corp and
Goldman Sachs (GS.N: Quote, Profile, Research) with slim pickings. So far in 2011 action
has shifted to China’s second-tier stock markets, which favour
nimbler small underwriters. The southern city of Shenzhen has
raised twice as much equity capital as Shanghai this year. Big
guys need to adjust.

Aug 8, 2011
via Breakingviews

China’s diatribe on U.S. debt could backfire

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

China’s diatribe against Washington’s economic policy after the weekend’s U.S. credit-rating downgrade could backfire. Pouncing on overseas woes may be an attempt to shift domestic attention from China’s recent train tragedy. But the cost for Beijing could be more U.S. pressure on matters like currency and Sino-American trade.

Aug 3, 2011

American Express to keep ICBC stake – source

HONG KONG, Aug 3 (Reuters) – American Express Co (AXP.N: Quote, Profile, Research) has
assured Industrial and Commercial Bank of China Ltd (ICBC)
(1398.HK: Quote, Profile, Research) it wants to keep its stake in the lender after
entering into a contract to hedge fluctuations in the stock
price, a source with direct knowledge of the matter told Reuters
on Wednesday.

Shares in ICBC, the world’s biggest bank by market value,
have fallen 5.7 percent in the past two days after Goldman Sachs
(GS.N: Quote, Profile, Research) executed a $479 million block deal. Hong Kong’s benchmark
Hang Seng index .HSI is down nearly 3 percent in the same
period.

Aug 3, 2011

Exclusive: American Express to keep ICBC stake: source

HONG KONG, Aug 3 (Reuters) – American Express Co (AXP.N: Quote, Profile, Research) has
assured Industrial and Commercial Bank of China Ltd (ICBC)
(1398.HK: Quote, Profile, Research) it wants to keep its stake in the lender after
entering into a contract to hedge fluctuations in the stock
price, a source with direct knowledge of the matter told Reuters
on Wednesday.

Shares in ICBC, the world’s biggest bank by market value,
have fallen 5.7 percent in the past two days after Goldman Sachs
(GS.N: Quote, Profile, Research) executed a $479 million block deal. Hong Kong’s benchmark
Hang Seng index .HSI is down nearly 3 percent in the same
period.

Jul 5, 2011
via Breakingviews

Microsoft gets message late on China market

By Wei Gu

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

Microsoft has belatedly got the message: going it alone in China is no fun. Google already gave up offering online search in China. Yahoo sold its China portal in 2005. Now Microsoft has agreed to share its search results with local giant Baidu, apparently for free. Meanwhile, its current joint venture partner is looking for an exit, Breakingviews has learned. Microsoft needs an even bigger strategic rethink to succeed in China’s huge market — and buying a stake in a rival would be a good start.

Jun 13, 2011
via Breakingviews

Popular Prada can afford to skimp on IPO fees

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

HONG KONG — Prada didn’t become a top fashion brand by skimping on costs. But the Italian fashion house has got a discount on its Hong Kong flotation: banks handling the $2.6 billion initial public offering will receive less than 2 percent of the proceeds. The low figure partly reflects cheaper fees in Italy, where Prada first planned to float. But it is also a demonstration of the company’s clout.