The following press releases and media reports about Chinese companies were carried on February 10. To view a full article or story, click on the link next to the headline.
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Qualcomm (Nasdaq: QCOM) Pays $975 Mln, Resolves China Antitrust Dispute (English article)
Alibaba (NYSE: BABA) Places China Smartphone Bet With $590 Mln Meizu Deal (English article)
Hisense (Shanghai: 600060), Tencent (HK: 700) In TV Game Platform Tie-Up (Chinese article)
Starwood to Sell NYC’s Baccarat Hotel To Chinese Insurer Sunshine (English article)
Sohu (Nasdaq: SOHU) Reports Q4 And Fiscal Year 2014 Unaudited Results (PRNewswire)
Bottom line: China’s new rules for technology manufacturers over cybersecurity concerns will erupt into a war of words between Beijing and the west this year, and could result in one or more formal complaints to the WTO.
Western firms respond to tough cybersecurity restrictions
After clashing for much of 2014 over a series of antitrust probes that seemed to target big multinationals, China and the west look set for a new showdown in 2015 over broadening rules by Beijing aimed at protecting national security. The growing clash saw the foreign companies, many from the US, take the unusual step of formally complaining last week over new Beijing rules that they complain are increasingly intrusive and opaque. Beijing fired back by saying the rights of foreign technology firms would be protected in accordance with Chinese law. Read Full Post…
Bottom line: The SEC’s settlement with the Big 4 over their audits for US-listed Chinese firms is a positive step for everyone, and should be followed by a broader document sharing agreement between the US and China.
SEC, Big 4 settle China dispute
After more than 3 years of bickering, the US securities regulator has finally resolved a dispute with the Big 4 accounting firms over the way they handle their audits of New York-listed Chinese firms. The sudden settlement is a welcome development not only for both sides in the dispute, but also for the dozens of US-listed Chinese companies that employ the Big 4 as their official accountants. But all that said, the US Securities and Exchange Commission (SEC) must still take one more step and sign a more comprehensive agreement with its Chinese counterpart to ensure it has access to the documents it needs when investigating New York-listed Chinese companies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 7-9. To view a full article or story, click on the link next to the headline.
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China Says Will Protect US Firms’ Interests, Amid New Cybersecurity Rules (English article)
SEC, Big Four Accounting Firms in China Settle Dispute (English article)
Renren (NYSE: RENN) Leads $110 Mln Investment in Used Car Sales Platform Cheyipai (English article)
Tencent (HKEx: 700) Taps Overseas Debt Amid China New Economy Appeal (English article)
Strong Demand For Mate 7 Phablet Surprises Huawei (Chinese article)
Bottom line: Focus Media’s plan for a backdoor listing in China stands a better than 50 percent chance of success, potentially opening a new re-listing path for Chinese firms whose shares are undervalued in New York.
Focus Media eyes China backdoor listing
Former advertising services high-flyer Focus Media is eying a plan to become listed again, with an ambitious target of tripling its value from just 2 years ago when it privatized. If the plan really works, it could create an attractive template for a return to publicly-traded status for the group of about a dozen Chinese companies that were formerly listed in New York but privatized after their shares became undervalued. The key to the plan appears to be a decision to list back at home in China, where Focus’ name is more familiar and local investors are far less sophisticated and prone to hype and overinflating values of well-known companies. Read Full Post…
Bottom line: China could end 2015 with up to 450 million 4G subscribers, with telcos, 4G smartphone makers and mobile-focused Internet firms most likely to benefit from the massive migration.
China Telecom targets 100 mln 4G users
China Telecom (HKEx: 728; NYSE: CHA) has just become the final of China’s big 3 telcos to announce an extremely aggressive subscriber target for its new 4G service, confirming my earlier prediction that the nation could end 2015 with as many as 450 million 4G users if everyone meets their goals. If they do reach those targets, it would represent a remarkable transformation that would see around one-third of the nation’s mobile users switching to 4G service by year end. That could provide a bonanza for not only the telcos, but also the smartphone makers and Internet service providers that would also benefit from such a mass migration. Read Full Post…
I often write about the Shanghai subway in the context of its many quirks and special features, but this week a different kind of underground story from the world of extreme sports caught my attention. The tale involved a man who created a sport out of literally outrunning a Shanghai subway train.
The man got off at one station, then ran out and onto the street, before re-entering at the next station in time to get on the same train he just exited. This kind of extreme sport is quite common in the west, where people often like to test their athletic ability by posing unusual challenges that pit them against nature, technology and other forces. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 6. To view a full article or story, click on the link next to the headline.
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Focus Media To Make A-Share Listing Via Shell Company, Valued At 50 Bln Yuan (Chinese article)
Anbang Prepares To Buy South Korea’s Eighth Largest Life Insurer (Chinese article)
Bottom line: Qihoo’s apparent attempt to unify its various products around the 360.com brand looks smart strategically, but it needs to improve its search and cellphone businesses to win back investor interest.
Qihoo pays record for 360.com domain
I’m not usually someone to write about publicity stunts, but one such new ploy by struggling security software maker Qihoo 360 (NYSE: QIHU) has piqued my interest as it hints at some major new strategic moves. The actual news is quite straightforward, saying Qihoo has paid a record $17 million for the 360.com web domain. This news was almost certainly leaked by Qihoo, since companies pay large sums for domains all the time and the news never makes big headlines since it is kept private. That hints that Qihoo may have big plans for 360.com, most likely as a platform to unify its current stable of domains and brands. Read Full Post…
Bottom line: New global e-commerce moves by JD and LightInTheBox look well conceived and could yield some strong results, while Baidu’s new e-commerce investment reflects its lack of focus and broader strategy in the space.
LightInTheBox opens US warehouse
A flurry of e-commerce moves are in the headlines today, including new globalization steps by number-two player JD.com (Nasdaq: JD) and the struggling LightInTheBox (NYSE: LITB). Meantime, search leader Baidu (Nasdaq: BIDU) is also in the headlines as it searches for its own e-commerce business model, with reports it has made a major investment in a site being developed by PC giant Lenovo (HKEx: 992). The flurry of moves reflects the hyperactive state of competition in China’s e-commerce market, which requires constant innovation in order to survive. Read Full Post…
Bottom line: Chinese brokerages will embark on a buying binge for targets in Hong Kong and debt-strapped European countries, with as many as 3 or 4 more deals likely this year after Everbright’s purchase of SHK Financial.
Everbright buys HK brokerage
Everbright Securities (Shanghai: 601788) is joining the list of Chinese brokerages that have suddenly become quite acquisitive, with word that it will buy the brokerage arm of Hong Kong real estate giant Sun Hung Kai (HKEx: 16). Everbright’s move comes amid a flurry of other activity that has seen Chinese brokerages forge new tie-ups and raise big funds for M&A as they seek to expand abroad. Hong Kong looks set to emerge as one of the most popular targets for new tie-ups, thanks to its status as a crossroads between the Chinese and international investment communities. Read Full Post…
