HONG KONG (Reuters Breakingviews) - Xiaomi’s wiring is nearly ready to include microchips. The $82 billion Chinese company shipped 53 million smartphones in the second quarter, overtaking Apple to become the world’s second-largest producer. With greater heft and official support from Beijing, boss Lei Jun should be closer to fulfilling his microchip dreams.
HONG KONG (Reuters Breakingviews) - Didi is cruising headlong into some rocky terrain. The Beijing-based ride-hailing giant on Thursday unveiled plans to go public in New York. Growth has resurged, but exuberant markets, U.S. political pressure and technology crackdowns will put this initial public offering to the ultimate road-test.
HONG KONG (Reuters Breakingviews) - Where are Chinese travellers headed these days? How is the pandemic changing outbound tourism and business travel? Will China’s recent anti-monopoly regulations affect Trip’s approach to partnerships and deals? Sun shares her views in an exclusive discussion with Breakingviews.
HONG KONG (Reuters Breakingviews) - TuSimple is driving too hard with its initial public offering. The autonomous truck company on Wednesday revealed it’s steering towards an $8 billion valuation. That’s 4,260 times last year’s sales, based on the midpoint price indicated of $37-a-share. The company has promise. But it’s operating in a part of the industry that won’t be on the road for years – and is hauling a trailer full of governance issues.
HONG KONG (Reuters Breakingviews) - Pinduoduo is coming of age in a radical way. Colin Huang is stepping down as chairman of the $197 billion Chinese e-commerce company he founded and relinquishing special voting rights that gave him control. It comes less than three years after he took the Groupon-like outfit that matches farmers to consumers public in New York. It’s a bold, rare move by a Chinese technology tycoon.
HONG KONG (Reuters Breakingviews) - JD.com hardly has any crumbs to spare. The Chinese e-commerce company grew fourth-quarter sales by 31% from a year ago to 224 billion yuan ($34.4 billion). It is barely breaking even, however, and going up against Alibaba in supermarkets probably will eat into profitability. Boss Richard Liu could be testing investor patience.
HONG KONG (Reuters Breakingviews) - Asia’s hottest companies are hurtling towards complex deals. Walmart’s Indian e-tailer Flipkart is mulling going public in the United States through a merger with a blank-cheque company, and could seek a valuation of at least $35 billion, Bloomberg reports. Other wannabe issuers across emerging Asia are flirting with the idea of multiple listings. If China is any guide, fiddly transactions and structures will materialise sooner rather than later.
HONG KONG (Reuters Breakingviews) - Tokopedia is in demand. The company last valued at about $7.5 billion is the number two online shopping site in Indonesia behind $100 billion Singapore-based rival Sea. But the smaller rival stands out for its single focus on one of the world’s fastest rebounding and digitalising economies. No wonder it’s emerging as a hot target.
HONG KONG (Reuters Breakingviews) - Online education is about to get an economics lesson. Covid-19 lockdowns rang the bell worldwide for virtual-school financiers, who ploughed money into the burgeoning business from the United States to China. Stragglers should start getting weeded out in 2021.
HONG KONG (Reuters Breakingviews) - Pop Mart’s mystery toy boxes may leave shoppers and investors alike with a surprise. The retailer’s shares doubled on their Hong Kong debut, giving it a market capitalisation of nearly $14 billion as of Friday morning. Sales are soaring in its home market, where young adults make purchases without knowing what they will get. But a premium valuation to peers like Hasbro looks equally faddish.