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With that out of the way, Zhang is cleared to focus on Alibaba's massive corporate overhaul unveiled last month. Current shareholders will be left with a holding company led by Zhang, plus Alibaba's cash-cow Chinese commerce business. After all, Alibaba's U.S. shares are down over 60% in the past two years, while the S&P 500 has stayed largely flat. The sales will eventually reduce SoftBank's stake in Alibaba to 3.8%. In 2022, SoftBank booked a gain of $34 billion by cutting its stake in Alibaba to 14.6% from 23.7%.

Thomson ReutersRobyn Mak joined Reuters Breakingviews in 2013. Previously, she was a Research Associate for the Global Policy Programs at the Asia Society in New York where she focused on US-Iran relations, US-Myanmar relations and sustainability issues in Asia. She has also worked as a researcher at the Carnegie Endowment for International Peace in Washington DC and interned at several consulting firms, including the Albright Stonebridge Group. She holds a masters degree in international economics and international relations from the Johns Hopkins School of Advanced International Studies and is a magna cum laude graduate of New York University.

☆ Gold miner’s mega $20 bln deal is not quite over
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +2 min

The boss of $40 billion U.S.-based gold miner Newmont (NEM.N) has sweetened his bid for Australian rival Newcrest (NCM.AX) after the latter rejected its two prior approaches. The latest $19.5 billion offer looks shinier but still faces some challenges. Under the revised proposal, Newcrest shareholders will receive 0.4 of a Newmont share for each one they hold, plus up to $1.10 via a franked special dividend. Newcrest shares closed nearly 10% below the offer price on Tuesday. Newcrest shareholders, who will own 31% of the merged company, also need to approve the deal.

HONG KONG, April 6 (Reuters Breakingviews) - Alibaba's (9988.HK) worth may be hiding in plain sight. The $260 billion Chinese group wants to split off faster-growing, money-losing bets like its cloud and logistics units. It accounted for 9% of Alibaba's top line in the nine months to December, nearly double five years ago. Zhang would do well to focus investor attention back onto Alibaba's commerce operations in China. That’s some 30% more than the company’s entire market value as of Wednesday.

☆ Google giggles at China tech’s shrinking act
▼ + stars: | 2023-03-31 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +3 min

HONG KONG, March 31 (Reuters Breakingviews) - As an $18 trillion economy home to 1.4 billion people, China is a natural font of statistical superlatives. The country’s internet giants, however, are dwarfed by American colossi like the $1.3 trillion Google owner Alphabet (GOOGL.O). Access to cheap capital helped founders like Alibaba’s Jack Ma quickly diversify and build sprawling empires with global ambitions. Meanwhile, the top eight U.S. tech names, led by Apple (AAPL.O), Microsoft (MSFT.O) and Alphabet, are worth $8 trillion today. The American tech giants already generate three times more revenue and nearly five times more free cash flow than their aspirant Chinese challengers, Refinitiv Eikon data shows.

That should unlock value for weary shareholders, and please regulators and politicians keen to control strategic businesses. The restructuring will give each of Alibaba’s six businesses, which include its core commerce division, as well as cloud computing, games and logistics units, their own chief executive and board of directors. Investors promptly added nearly $23 billion, or 10%, to the New York-listed company’s market value, now at $250 billion, following Tuesday’s announcement. The $460 billion video-game giant also operates in sensitive areas like online media, cloud computing and mobile payments. Daniel Zhang will continue to serve as chairman and chief executive of Alibaba, which will follow a holding company management model, and concurrently serve as CEO of Cloud Intelligence.

HONG KONG, March 28 (Reuters Breakingviews) - In the biblical parable of the prodigal son, a repentant wastrel returns home to a forgiving and beneficent father. In China, Alibaba (9988.HK) founder Jack Ma's homecoming and rehabilitation appears to be part of an official campaign to revive flagging private sector investment. However, if officials believe the mere sight of Ma in public will revive business confidence, that hope has a whiff of desperation. Ma the prodigal entrepreneur has returned, but perhaps not for long. Shares of Alibaba rallied as much as 4% in Hong Kong following the SCMP report before closing flat at HK$85.25 on March 27.

HONG KONG, March 23 (Reuters Breakingviews) - Tencent (0700.HK) is sounding more like its normal self again. The combination of regulatory respite, a post-lockdown consumption bounce plus cost cuts have put the company in a sweet spot for 2023. Revenue in the three months to December inched up 0.5% from a year earlier, to $21 billion, reversing year-on-year declines from the previous two quarters. With 2022 firmly behind it, Tencent can put a spring back in its step. Shares of Tencent rose 4.7% to HK$364.00 during early morning trading on March 23.

Concerns that Chinese investors are buying overseas to make a quick profit at home are valid. Since last year, 11 Chinese companies have raised a combined $3.6 billion by selling GDRs on the Six Swiss Exchange, data from Dealogic show. Savvy punters with access to foreign funds can therefore make a quick and relatively risk-free profit by shorting the Chinese stock and buying the discounted GDRs. This helps explain why Swiss shares of Chinese companies barely trade. Since the launch of a China-Swiss stock scheme in 2022, 11 Chinese companies have raised a combined $3.6 billion, according to data from Dealogic.

☆ China central bank punts its succession problem
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

That may be because Zhu Hexin, his mooted successor, is known mostly for his stint heading state-owned financial conglomerate CITIC – not a household name outside China - has no detectable international experience. In contrast, Yi is a respected known quantity for domestic and international investors alike, comfortable parleying with global institutions like the World Bank and IMF. Beijing might be keeping Yi for the painful parts of the reorganisation – including massive pay cuts – before retiring him. The so-called sea turtles – Chinese people with overseas market experience and foreign language skills – have been migrating out of government for years. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

HONG KONG, March 9 (Reuters Breakingviews) - European financial centres are rolling out the red carpet for Chinese companies. Its free-float market capitalisation of $1.9 trillion is just a tenth of the New York Stock Exchange, January data from the World Federation of Exchanges show. Yet as tensions between Washington and Beijing rise and Chinese companies in New York face the threat of delisting, traditionally neutral Zurich has become an attractive alternative. That removes the risk that overseas regulators will demand access to mainland companies’ books - the source of a lengthy spat between the U.S. Public Company Accounting Oversight Board and Beijing. Deutsche Börse (DB1Gn.DE), which operates Frankfurt’s stock exchange, is technically ready to launch the China-Germany Stock Connect, board representative Niels Tomm said in November.

The usually sleepy Ministry of Science and Technology will be tasked to help lead the country's efforts to reduce dependence on Western suppliers. Meanwhile, creating a National Data Bureau should streamline the myriad of regulations spanning cybersecurity, personal privacy and information transfer. The benefits of upgrading the science, technology and patent ministries are less clear. And despite China being the world's most prolific patent filer, 90% are low-value "trash", estimated one Chinese official in 2019. Other proposals from the State Council include creating a National Data Bureau to coordinate sharing and developing the country's data resources.

☆ Kakao can end K-pop saga with near-$1 bln mic drop
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +2 min

Kakao and its entertainment arm are eyeing a 35% stake in SM via a tender offer worth $962 million. If Kakao succeeds, the company, which has the backing of SM's management, would become the label's top shareholder. Kakao Entertainment in January raised $930 million from investors including GIC in Singapore and Saudi Arabia's Public Investment Fund. The envisioned partnership between Kakao, Kakao Entertainment and SM would cover global distribution, production and more for music and other content. Following Kakao's offer, SM Shares rallied 14% to 148,400 won ($114); they have nearly doubled since the start of the year.

☆ TPG starts a dicey dance with death Down Under
▼ + stars: | 2023-03-07 | by ( Antony Currie | ) www.reuters.com time to read: +3 min

Little wonder, then, that TPG is taking advantage of Australia’s InvoCare (IVC.AX) recently losing market share, and earnings, by offering shareholders A$1.8 billion ($1.5 billion) on Tuesday. But the private equity firm run by Jon Winkelried has started a dicey dance with death. At 5%, for example, annual interest payments on the new debt would be almost $50 million – a third of InvoCare’s expected EBITDA next year. Follow @AntonyMCurrie on TwitterCONTEXT NEWSTPG Global, a fund run by U.S. private equity firm TPG, on March 7 made a non-binding, indicative offer for InvoCare which values the Australian funeral-services company’s enterprise at almost A$2.2 billion ($1.5 billion). The private equity firm had the previous day bought an almost 18% stake in the company from a variety of investors at A$12.65 a share.

☆ Open-source software braces for trade war
▼ + stars: | 2023-02-27 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +6 min

HONG KONG, Feb 27 (Reuters Breakingviews) - The open-source software movement has been an unprecedented driver of global innovation and productivity growth. As with most Chinese handset makers, founder Ren Zhengfei relied on Android’s open-source code to run his company’s smartphones. Beijing has reciprocated, per a Nikkei report, by instructing its own tech companies not to incorporate ChatGPT into their platforms - a rare example of a mutual firewall. Dividing the world into competing open-source camps would mark another reverse for free trade. Follow @petesweeneypro on TwitterCONTEXT NEWSRegulators have told major Chinese tech companies not to offer ChatGPT services, the Nikkei news service reported on Feb. 22 citing sources with direct knowledge, causing shares in Chinese companies building chatbots to fall.

With Alibaba shares down 30% in one month, enthusiasm for China's return to normalcy is peaking early. The Alibaba chief executive also cautioned that January was a "challenging time" and that the company is keeping an eye on how the reopening develops. Alibaba has hit the limits of the reopening boon. Reuters GraphicsFollow @mak_robyn on TwitterCONTEXT NEWSAlibaba on Feb. 23 reported revenue of 248 billion yuan ($35.9 billion) in the three months to December, an increase of 2% year-on-year. Adjusted earnings rose 12% to 40 billion yuan.

☆ Beijing mutes ChatGPT meme rally
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 23 (Reuters Breakingviews) - The rally in Chinese stocks associated with conversational bots, a side-effect of the popularity of OpenAI’s ChatGPT, has been knocked sideways. Beijing has ordered big Chinese technology companies including Tencent (0700.HK) and Ant not to offer ChatGPT services on their platforms, the Nikkei reported citing people with direct knowledge. The latter’s Hong Kong shares surged 45% between the start of the year and early February, before falling by a fifth since. OpenAI, which is backed by Microsoft (MSFT.O), won’t let Chinese residents create ChatGPT accounts. Still, despite warm noises from Beijing about supporting technology companies, its politics still stifles innovation.

Worldwide boy-band sensation BTS may be on hiatus, but refreshing new financial acts threaten to upend the world of K-pop, and perhaps South Korea. The battle over 28-year-old SM Entertainment, the $2.3 billion force behind Girls' Generation and EXO, is at heart a family feud. It helps, too, that K-pop has turned into one of South Korea’s strongest exports, thanks largely to “Butter” and “Dynamite” singers BTS. "We oppose all aggressive outside mergers and acquisitions, including Hybe," SM said in a statement, according to Reuters. Separately, internet conglomerate Kakao said on Feb. 7 it would acquire a 9.05% stake in SM via 112 billion won of new shares and 105 billion won of convertible bonds.

☆ Shein's ambitions are a bit of a stretch
▼ + stars: | 2023-02-20 | by ( ) www.reuters.com time to read: +2 min

Shein’s top-line growth slowed from 57% in 2021 to 45% last year; the company expects that to continue, with its 2025 target implying average annual expansion of 37%. Meanwhile, Shein's projected 13% profit margin dwarfs that of web retailers like China's JD.com (9618.HK). The $118 billion PDD (PDD.O) recently rolled out its Temu shopping service; it is now the most downloaded app in the United States. Using the same 2.4 times forecast 2025 sales multiple the Inditex enterprise trades on, Shein's valuation could top $140 billion. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Buffett TSMC's U-turn spotlights chips' siren call
▼ + stars: | 2023-02-16 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 16 (Reuters Breakingviews) - A lot can change in three months, especially in the world of semiconductor investing. Warren Buffett's Berkshire Hathaway (BRKa.N) inexplicably sold most of its $4.1 billion holding in Taiwan Semiconductor Manufacturing (2330.TW), a position only disclosed in November. For TSMC, Berkshire probably pocketed a 9% return, Reuters reported citing analyst estimates, having held the stake for roughly three months. He may be right about TSMC, which boasts a monopoly in advanced chipmaking and superior profitability - the "moats" Buffett prizes so highly. Moat or no moat, the outlook for chips is getting dicey.

☆ Alibaba exit is first remedy for Paytm’s woes
▼ + stars: | 2023-02-13 | by ( ) www.reuters.com time to read: +1 min

MUMBAI, Feb 13 (Reuters Breakingviews) - Alibaba’s (9988.HK), exit will be a relief for India’s Paytm (PAYT.NS). The move makes sense for Alibaba, though Paytm’s other Chinese backer, Ant, may find it harder to cash out. Paytm’s languishing stock is up over 27% in four days following the better-than-expected quarterly numbers. That allowed Alibaba’s Singapore arm to exit the company at 643 rupees per share, a decent 10% higher than its average purchase price. That implies Paytm’s stock still has a steep climb before the Chinese payments group may be willing to sell.

☆ Chinese firms face embarrassment of listing riches
▼ + stars: | 2023-02-10 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, Feb 10 (Reuters Breakingviews) - Global appetite for Chinese stocks is returning. Sensor-maker Hesai shares popped nearly 11% in what is the biggest initial public offering from the People’s Republic in New York since 2021. The country's sudden reopening has boosted economic activity, and regulators are prioritising growth over cracking down on private firms. Hedge funds have increased their exposure to Chinese equities back to 2020 levels, Goldman Sachs data shows. A steady stream of firms are mulling Hong Kong listings too.

But unlike ICBC and its peers, Ant neither took deposits, nor piled risky loans onto its balance sheet. Free from the red tape that binds regular banks, the loans facilitated by Ant ballooned. Digital offerings accounted for half of overall consumer loans in China, Fitch Ratings calculated in 2021. Ant is set to become a licensed financial holding company, putting it under the close watch of China's main banking regulator. Beijing wants Chinese consumers to consume, so is likely to indulge controlled growth of consumer credit.

☆ America's hazy chip deal fogs market signals
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +2 min

Having unveiled sweeping new curbs targeting the People's Republic in October, American officials have lobbied friendly governments to follow suit. Companies like Dutch giant ASML and Tokyo Electron enjoy near-monopolies in chipmaking equipment, namely lithography machines and silicon-wafer coatings. Preventing them from selling to Chinese companies would deal a serious blow to Beijing’s technological progress. ASML and Tokyo Electron currently generate 15% and 26% of annual sales from China, respectively, and the People's Republic is Japan's top trading partner. Shares of Japanese suppliers including Tokyo Electron, ASML-rival Nikon and Canon all opened flat on Monday morning.

☆ New Zealand PM Jacinda Ardern's resignation shows burnout is still going strong. Here's how to know when you're there and why calling it quits might be the right thing.
▼ + stars: | 2023-01-21 | by ( Bethany Biron | ) www.businessinsider.com time to read: +6 min

The resignation of New Zealand PM Jacinda Ardern is shedding light on burnout among top global leaders. "I no longer have enough in the tank to do the job justice," Ardern said on Thursday. Insider spoke to experts to discuss how to identify burnout and when quitting might be the best option. Here's how to assess burnout and recognize when it might be time to hit the road, according to experts. "The reality is that burnout really happens in the shadows.

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