THE SHADOW OF AGGRESSIVE DEALMAKING RETURNS TO HAUNT CHINA INC.
“Are we really good at doing this?”
“If we decide not to do this, what sort of losses will our potential users suffer?”
“If we decide to do this, how much competence will we have in the market?”
Pony Ma Huateng, co-founding chairman and CEO of Chinese internet titan Tencent, always asks himself these three questions before he makes an important investment decision. Only when he finds a rational reason to spend money does he decide to go forward.
That, at least, is how the story goes regarding the investment approach taken by Ma, who is often compared with another charismatic Chinese entrepreneur — Jack Ma Yun, founder of Alibaba.
Nikkei Asian Review’s cover story for the week places a big question mark over Ma’s legendary investment criteria. According to their analysis, Tencent had recently written down the value of its investments by 17.577 billion yuan.
Major Chinese players ZTE, ICBC, CRRC, CITIC and BYD also recorded massive impairment losses. Thus, the impression is that the Chinese economy could be more severely damaged by the trade war and bad loans than we had realized. READ MORE
- Tencent Chases Alibaba for Cloud Computing Supremacy (Nikkei Asian Review)
- Asia300 Power Performers: Tech’s Wild Ride (Nikkei Asian Review)
- China: From Smokestack to Labtech (William Blair)
- China Internet Flash Report: 2015 & Beyond + an Overview of 2014 Results (KraneShares)
- Why Tencent’s Golden Share Arrangements Could Be Worse for Investors Than Alibaba’s (China Tech Shorts)
- US-Chinese Business Partnerships Are Thriving (Kraneshares)
- China Internet Update (KraneShares)
- The Chinese Property Market: The Most Important Industry Globally Which Few Understand (Platinum Asset Management)
- DouYu Ends First Day at Its Offer Price in $775 Million IPO (Bloomberg)
- EXS Capital’s Solberg: China’s Property and Steel Sectors Look Interesting Now (CMN)
- Hong Kong Stocks Roar Into 2021 on Surge of Investment From China (Nikkei Asia)
- China’s Effective Tax Rate is Still Much Lower Than the US (The Asset)
- Evergrande Explained (KraneShares)
- Lessons From Japan’s Lost Decades for China (Nikkei Asian Review)
- Is Your Emerging Market Strategy Overexposed to These 3 Factors? (KraneShares)