HONG KONG: China's Tencent Holdings , the world's largest gaming company by revenue, warned on Wednesday of a difficult economic environment even as it reported a better-than-expected 35per cent jump in quarterly profit.Growth in the company's gaming business resumed in the second quarter after a long regulatory freeze in China and its fintech operations also generated sharply higher revenues.However, Tencent saw a slowdown in online advertising revenue growth amid a slowing Chinese economy and Sino-U.S. trade tensions, and expects conditions to remain tough."Our assumption is that the macro environment will remain difficult for the rest of the year and that the situation of the heavy supply of advertising inventory will continue for the rest of the year and potentially into next year," Chief Strategy Officer James Mitchell told an earnings call.Tencent made 24.14 billion yuan (US$3.4 billion) in net profit for the April-June quarter, beating an average estimate of 20.74 billion yuan … [Read more...] about China’s Tencent cautious after surge in quarterly profit
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HONG KONG • Finding a boss to run a company, especially a troubled one, is no easy task. Hong Kong's Chief Executive Carrie Lam still has three years until the end of her term, but with many people calling for her to step down, the difficulty that would arise in choosing a replacement would be finding someone who is competent and willing to fight for his or her citizens. Protesters and pro-democracy lawmakers - who have set aside their differences and banded together in recent weeks - have scented blood and want to force Mrs Lam's exit over her backing of the controversial extradition Bill. But they seem to have missed the fact that this could lead to them ending up with someone who is less competent and more pro-Beijing. The unfortunate thing for Mrs Lam is that in her haste to roll out the now-suspended Bill, she gave people a reason to launch a series of protests, some of which ended in violence. Locals believe that, if passed, the Bill would allow Hong Kong to send people to … [Read more...] about Will a replacement for Carrie Lam be better?
BEIJING - Shares in three large Chinese banks fell Tuesday after a media report said a US judge had found the banks in contempt for refusing to comply with subpoenas related to a North Korean sanctions violations case. The ruling could prompt the US to bar one of China's largest banks from the US financial system, the Washington Post report said. The order did not explicitly identify the banks but details in the case matched those of three large state-backed Chinese banks: the Bank of Communications, China Merchants Bank and Shanghai Pudong Development Bank, the Post reported. Shares of the Bank of Communications slipped 3.02 percent to 6.10 yuan, China Merchants Bank fell 4.82 percent to 36.13 yuan and Shanghai Pudong Development Bank sank 3.08 percent to 11.66 yuan. The banks did not comply with US subpoenas for information in an investigation into North Korea sanctions violations, the Post reported. The order could allow the US attorney general or Treasury secretary to cut off … [Read more...] about China bank stocks fall on possible US action linked to N. Korea
HONG KONG (BLOOMBERG) - The record pace of foreign selling in China's equities matters now more than ever. While overseas traders are quickly souring on yuan assets, they've also never wielded this much influence over the onshore stock market. Index inclusions and expanded quotas mean they drive a record 10 per cent of daily turnover, according to data compiled by Bloomberg. That proportion is even greater for favorites like Kweichow Moutai Co, at 34 per cent on a monthly basis. They own 3.1 per cent of the US$6.5 trillion stock market, almost as much as the country's mutual funds. Integrating China's capital markets into the global financial system has been a priority for the country's policy makers since late 2017. In the year since MSCI Inc first added mainland shares to its benchmarks, China has been expediting measures that make it easier for overseas investors to manage risk. Their growing influence means that mainland stocks, which have historically been somewhat immune to … [Read more...] about China stocks at mercy of foreigners like never before
PETALING JAYA: The increasing popularity of mobile payment in Malaysia is not considered a material threat to Malaysian banks, according to RAM Ratings Services Bhd. The ratings agency reasoned that with the wide availability of more established electronic payment methods such as credit and debit cards, hence mobile payment in Malaysia is unlikely to attain the level of ubiquity that it enjoys in China. “Even if increased payment volume via mobile wallets might reduce transactions via banks’ credit cards, the fee income earned from card transactions only accounts for a minor proportion of banks’ overall earnings,” said RAM Ratings in a statement. While a small number of mobile payment players have ventured into lending, the agency said the loan amounts are relatively low, catering to small merchants and entrepreneurs that are typically not banks’ targeted clients. However, RAM Ratings acknowledged that around the world, mobile payment is mushrooming with … [Read more...] about Mobile payment not a threat to Malaysian banks