Fast-fashion Brand ZARA in China (Bloomberg)
According to The Wall Street Journal, a growing number of Western brands in China are creating online stores to reach more consumers, adopting a formula that Chinese e-commerce company Alibaba Group Holding Ltd. has exploited with much success.
The promise of e-commerce in China has attracted foreign companies for years. Yet Western companies, such as eBay Inc., EBAY +0.22% Google Inc. GOOG +0.20% andGroupon Inc., GRPN -4.49% have struggled in China, partly because of competition from domestic giants. Western retailers also have had concerns about the difficulties of distribution in the country and its Web shoppers’ insistence on low prices.
But China’s e-commerce—which, by some measures, overtook the U.S. this year as the world’s largest online retail marketplace—has become too big to ignore. Online retail sales in China are expected to reach about $540 billion by 2015, compared with roughly $345 billion in the U.S., according to consulting firm Bain & Co. China’s online retail sales have increased more than 70% annually since 2009, compared with 13% in the U.S.
“If you’re going to be in China, e-commerce is going to be the first thing you consider, and if you’re already there, you’re scrambling to adapt,” says Duncan Clark, chairman of BDA China, an investment advisory firm in Beijing.
Inditex SA ITX.MC +0.51% ’s Zara fast-fashion brand, high-end handbag makerCoach Inc. COH -0.27% and luxury-department-store chain Neiman Marcus Group Inc. began selling online in China late last year.
Posted by camelliacamellia on October 28, 2013
Asian Stock Market (Asian News)
According to The Wall Street Journal, Asian stocks moved lower Friday, though Australia managed to rise, in a session heavy in corporate earnings.
South Korea’s Kospi slid 1.1%, with the index’s largest single constituent, Samsung Electronics 005930.SE 0.00% down 1% after it reported third-quarter net profit had risen 25.6% to another record. Before the results, the stock enjoyed a strong run-up, and remains 5% higher so far in October.
Also in Seoul, LG Electronics 066570.SE -3.42% dropped 3.7% after it reported a 34% decline in net profit over the same period.
In Hong Kong, shares of Chinese auto maker Great Wall Motor GWLLY -4.22% shed 5.8% after reporting weaker profit margins in the third quarter.
In Japan, Canon 7751.TO -1.60% fell 1.1% after it lowered its full-year net profit forecast to ¥240 billion ($2.46 billion) from a previous estimate of ¥260 billion set in July. Mitsubishi Motors 7211.TO +1.17% Corporation added 1.8% after the car company increased its profit outlook.
More broadly, the absence of fresh catalysts left regional markets to drift lower.
In Japan, the Nikkei remained under pressure from a yen that has firmed up in recent sessions. The Japanese currency maintained its strength, last at ¥97.21 to the dollar, helping to pull the Nikkei down 1.7%.
Posted by camelliacamellia on October 25, 2013
According to Bloomberg, Indonesia’s most aggressive monetary tightening since 2005 is set to slow economic growth without denting soaring property demand in the world’s fourth-most populous nation.
A young population, elevated inflation and property-price gains that outpace interest rates are spurring real-estate sales from Jakarta to Manado. Home prices in the third quarter probably rose 14.6 percent from a year earlier, according to a Bank Indonesia survey, while the Indonesian Real Estate Association predicts housing sales will climb more than 50 percent this year.
“Indonesia has a huge population, that’s a potential market for us,” said Setyo Maharso, chairman of the Indonesian real estate association, which predicts 2013 property sales will rise to 400,000 units from 260,000 last year. “For our buyers, as long as they have the ability to pay monthly installments, sales will keep increasing till the year end.”
With foreigners restricted from owning property in SoutheastAsia’s biggest economy, Indonesia is confronting a surge in local demand rather than the capital inflows that spurred record home prices in neighboring Singapore and Hong Kong. After the central bank imposed stricter loan-to-value ratios for mortgages, persistent price gains may prompt the government to raise some real-estate taxes, PT Bank Danamon Indonesia said.
“By giving a luxury tax, especially for high-end properties, it would help to curb home-price increases,” said Anton Gunawan, chief economist at Bank Danamon who was a candidate for the No. 2 job at the central bank this year. “Returns from property remain high as there’s an expectation that home prices are still rising.”
Posted by camelliacamellia on October 23, 2013
According to The Wall Street Journal, risky bonds are making a comeback in Asia after falling out of favor over the summer, as recent developments in the U.S. have prompted investors to embrace increased risk in exchange for higher yields.
Buoyed by the U.S. Federal Reserve’s $85 billion-a-month bond-buying program, investors in Asia took advantage of high-yield, or “junk,” bond issues early this year to increase returns against an otherwise low-interest backdrop. In the first five months alone, new junk bonds issued in Asia outside of Japan totaled $22.4 billion, exceeding the $15.3 billion total for all of last year. But indications from the Fed in late May that it could dial back its stimulus spending earlier than expected damped enthusiasm for the risky securities.
The Fed didn’t announce a pullback in spending after policy meeting last month, however, leading investors to expect at least a brief reprieve.
“The market has returned to a more risk-on mode since early September,” said Job Campbell, Hong Kong-based senior portfolio manager at Income Partners Asset Management, a $1.4 billion fixed-income manager. The fund has recently bought high-yield bonds issued by Chinese property firms including Yuzhou Properties Co. and Greentown China Holdings Ltd. 3900.HK -1.15% , he said.
Investors who were cautiously dipping their toes back into higher-yield bonds after the mid-September decision may have gotten more bullish since the U.S. budget and debt-ceiling standoff this month, the resolution of which has provided more certainty that the Fed will continue its stimulus effort at least until early next year, when the next showdown could occur.
Posted by camelliacamellia on October 22, 2013
According to Bloomberg, JPMorgan Chase & Co. (JPM) has agreed to sell 1 Chase Manhattan Plaza, the tower built byDavid Rockefeller, to Fosun International Ltd., the investment arm of China’s biggest closely held industrial group, for $725 million.
Fosun, which invests in properties, pharmaceuticals and steel, is buying the 60-story, 2.2 million square-foot, lower Manhattan tower, according to a statement it filed to Hong Kong’s stock exchange.
China’s developers and companies are expanding in overseas property markets as the government maintains curbs on housing at home to cool prices. Greenland Holding Group Co., a Shanghai-based, state-owned developer, this month agreed to buy a 70 percent stake in a residential and commercial real estate project in Brooklyn.
“There’s a lot of excess capital in China that needs a way out at the moment,” Simon Lo, Hong Kong-based executive director for Asia research and advisory at property broker Colliers International, said in a phone interview today. “Also, by investing in markets like New York, they believe they can gain from the recovery of the U.S. economy and real estate market.”
Fosun (656), owned by Chinese billionaire Guo Guangchang, fell 0.3 percent to HK$6.79 at the midday trading break in Hong Kong. Shares in the Shanghai-based company have gained 37 percent this year, compared with the 2.6 percent increase in the benchmark Hang Seng Index.
Posted by camelliacamellia on October 22, 2013
China Developers’ Financing Hopes Revive on Share Sale Plans
Chinese developers may resume share sales on the country’s mainland exchanges as announcements of such plans by property companies in the past week add to signs that the government may allow new equity financing to proceed.
Sundy Land Investment Co. (600077), a Shenyang-based developer, plans to raise as much as 1.5 billion yuan ($245 million) in a private placement to finance two housing projects, the company said in a statement to Shanghai Stock Exchange yesterday. China Merchants Property Development Co. (000024), the country’s third-biggest developer by market value, plans to sell shares to buy assets, according to a statement posted to Shenzhen Stock Exchange.
The planned share sales reinforce expectations that regulators will ease limits on fundraising by developers, according toHaitong International Securities Group Ltd. (665) China will seek “stable and healthy” development of the property market, the Communist Party’s Politburo said July 30, the first time this year that authorities didn’t mention further tightening of restrictions, according to Credit Suisse Group AG and Orient Finance Holdings (H.K.) Ltd.
Posted by admin on August 7, 2013
Dublin energy company secures £87m from Japan
A JAPANESE trading company will today unveil a €100 million (£87m) equity investment in an energy company behind plans for a 450 megawatt (MW) wind farm off the Fife coast.
Marubeni Corporation will take a 25 per cent stake in MainstreamRenewable Power, which the Dublin-based firm said would enable further big projects to be financed.
The deal gives Marubeni a seat on Mainstream’s board alongside banking giant Barclays, which invested in the company in 2008.
The Marubeni deal signifies a “long-term strategic alliance” for both companies, which will see them working to accelerate Mainstream’s key projects globally. Marubeni already has interests in the renewables sector, including the offshore wind industry in Europe and the electricity supply business in the UK.
Posted by admin on August 5, 2013
HSBC likely to see substantial fall in profit
HSBC is expected to report a significant decline in pre-tax profit for the second quarter from the same period last year.
Eleven analysts, on average, estimated the bank’s pre-tax profit would fall 26.7 per cent to US$6.16 billion, a Bloomberg survey found. The banking giant will post its interim results today after the market closes.
Market participants said they were looking for indications of asset quality health in emerging markets – which showed signs of deterioration at rival Standard Chartered – and progress in cost cutting and revenue generation.
A marked turnaround in its businesses in Europe and North America helped HSBC to post significantly higher results in the first quarter.
Posted by admin on August 5, 2013
With few big deals, private equity moves to be Asia’s new banker
Aug 5 (Reuters) – In three years, global private equity firm KKR & Co has provided over $1.5 billion in loans to companies in India, a business traditionally handled by state-owned and private sector banks.
Encouraged by that success, KKR – which rose to prominence with its hostile $25 billion takeover of U.S. food and tobacco giant RJR Nabisco in 1989 – plans to expand the niche business in China and across Asia.
The move by private equity into lending comes at a time when buyout deals in Asia are few and far between and as traditional banks retreat. Apollo Global Management, KKR and Olympus Capital are raising credit funds as they seek out alternative sources of income. At least $6.6 billion is being raised by 12 funds for investment in Asia, according to Private Equity International and Thomson Reuters data.
Posted by admin on August 5, 2013