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Xiaomi eyes a giant Chinese IPO

Xiaomi eyes a giant Chinese IPO

Finance
IN CHINA no company achieved $ 1bn in annual revenue as quickly as Xiaomi did, in the year following the launch of its first smartphone in 2011. Chinese media initially nicknamed Xiaomi the “Apple of the East” (its literal translation is “little rice”). That was a stretch, even in good times. But within another two years the affordable-handset-maker became the world’s most valuable startup, worth $ 46bn.Analysts reckon that it now wants to raise up to $ 10bn in an initial public offering (IPO) on Hong Kong’s stock exchange which was announced on May 3rd. (Its filing documents disclose neither the valuation that it is seeking, nor a fundraising target.) That could afford it a very generous valuation of as much as $ 80bn—not far off the $ 91bn market...
This 'old-fashioned' identity theft is just as dangerous as the cyber kind

This 'old-fashioned' identity theft is just as dangerous as the cyber kind

Finance
Hackers aren't your only risk when it comes to identity theft and fraud. Data breaches and hacks like those at Equifax, the IRS and Yahoo! tend to dominate the conversation — and no wonder. Breaches hit a record high in 2017, with 1,579 reported incidents exposing nearly 179 million records, according to the Identity Theft Resource Center, which helps consumers dealing with identity theft and fraud. But in recent years, a little more than half of thefts of consumers' personally identifying information were classified as "non-digital," meaning they didn't involve — or at least, didn't start with — the thief e...
RBI puts Dena Bank under prompt corrective action

RBI puts Dena Bank under prompt corrective action

Finance
NEW DELHI: Reserve Bank has initiated prompt corrective action against public sector lender Dena Bank in view of high non-performing loans, restricting the bank from giving fresh credit and new hiring. The public sector lender yesterday reported widening of its net loss to Rs 1,225.42 crore in the March quarter on mounting bad loans and higher provisioning to cover them. The net loss stood at Rs 575.26 crore in the January-March quarter of 2016-17. Sequentially, the loss widened from Rs 380.07 crore in December quarter of 2017-18. "Reserve Bank of India, vide their letter dated May 31, 2017, has initiated Prompt Corrective Action for Dena Bank and imposed certain restrictions, in view of high Net NPA and negative RoA ( return on assets)," the bank said in a regulatory filing. In continuati...
How commission-free trading app Robinhood tries to make money

How commission-free trading app Robinhood tries to make money

Finance
After raising more money from top Silicon Valley investors, Robinhood has quadrupled its valuation in about a year to more than $ 5 billion. Less clear is how the operator of a commission-free stock trading app generates enough money to justify such a lofty amount. On Thursday, the start-up announced it raised $ 363 million in capital, valuing the company at $ 5.6 billion. That makes it about one-third the size of the online brokerage E-Trade Financial, which has a market value of nearly $ 17 billion. While E-Trade reported a 28 percent increase in net revenue to $ 708 million in the first quarter, Robinhood would not share specific informatio...
Lessons to a columnist’s previous self

Lessons to a columnist’s previous self

Finance
IN A British television show, “Doctor Who”, the titular character is able to travel anywhere in time and space in his Tardis police box. Given access to that technology, what useful message would this columnist impart to his previous self, nearly 12 years and 550 columns ago?The first lesson would be to avoid confusing the economy with the financial markets. If you looked at share prices alone, you might assume the intervening period had been calm; the S&P 500 index is around double its level when this column began in September 2006. But though the markets have long since recovered their sangfroid after the crisis of 2008-09, the trend growth rate of developed economies has never regained its strength. That is a bitter irony given that the crisis originated within the finan...