Former online clothing high-flyer Vancl is making yet more cuts to its business, as it pursues its dream of finding sustainable profits and making an eventual public listing. Both goals could come sooner rather than later, especially since IPOs by Chinese web firms have suddenly become an investor favorite again on Wall Street, as reflected by new data on the second-quarter IPO market. Such an offering could be compelling if Vancl really has become profitable, since it’s a clear leader in the highly competitive but still somewhat niche area of clothing e-commerce. Read Full Post…
News Digest: July 4, 2014
The following press releases and media reports about Chinese companies were carried on July 4. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- China To Try GSK-linked (London: GSK) Investigator In Secret: Family Friends (English article)
- SMIC (HKEx: 981) Lands Qualcomm (Nasdaq: QCOM) Snapdragon Chip Orders (English article)
- Ctrip (Nasdaq: CTRP) to Acquire eLong (Nasdaq: LONG) – Source (English article)
- Tianjin Goubuli IPO Crashes, Showing Difficulty Of Restaurant Listings (Chinese article)
- Mobile Game Developer iDreamSky Files For IPO To Raise Up To $115 Mln (Chinese article)
Xiaomi’s Sales Grow, Margins Contract
Smartphone sensation Xiaomi is wowing the world with impressive sales figures for the first half of the year that show it is well on the way to meeting its ambitious 2014 target, as it seeks to become the China version of Apple (Nasdaq: AAPL). But hidden in the latest figures are the less encouraging news that Xiaomi’s revenue grew far more slowly than unit sales of its flagship smartphones, meaning its prices fell sharply and probably so did its margins. That’s not too surprising considering the stiff competition in China’s smartphone market, where Xiaomi has to compete with well-funded homegrown rivals like Lenovo (HKEx: 992), Huawei, ZTE (HKEx: 763; Shenzhen: 000063) and Coolpad. Read Full Post…
Cars: Chery, EVs Continue To Sputter
A couple of headlines are spotlighting the ongoing woes of 2 groups in China’s auto sector, with domestic brands and new energy vehicle makers both showing signs of difficulty. In the former category, reports that former domestic high-flyer Chery is closing one of its biggest Beijing dealerships spotlight the broader woes of domestic car brands that are losing share to better-run foreign rivals. In the latter category, another media report is showing that new energy vehicle sales were largely insignificant in the first 4 months of the year, even though they did notch major gains over 2013. Read Full Post…
Weibo: Tencent’s Quick Take On 58.com; Xiaomi Tries On Vancl
A series of microblog posts this past week is highlighting the breakneck pace of wheeling and dealing happening behind the scenes on China’s Internet as it undergoes an unprecedented wave of consolidation. What started as a trickle of buying early last year has become so routine that barely anyone notices now when new deals worth hundreds of millions of dollars are signed. Equally interesting are the untold stories of companies quietly being dismantled in the wake of larger deals, and hints of deals to come in the microblog posts of executives at firms leading the consolidation. Read Full Post…
News Digest: July 3, 2014
The following press releases and media reports about Chinese companies were carried on July 3. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- Xiaomi Says Smartphone Shipments Almost Quadruple In First Half (English article)
- Amazon (Nasdaq: AMZN) Appoints New China President (English article)
- Lenovo (HKEx: 992) Expects IBM, Mobility Deals To Be Completed By Year End (English article)
- Alipay Tests Virtual Credit Card Product (English article)
- Hugo Boss Takes Full Control Of Stores In China And Macau (English article)
New Default, Merchants Bank Move Spotlight China Risk
A couple of headlines are underscoring the high risk that China’s financial sector could soon pose for both domestic and international investors, as the nation’s financiers look for the most creative but not necessarily the safest ways to raise money. In the first instance, China Merchants Bank (HKEx: 3968; Shanghai: 600036) has officially joined the nation’s big national banks in a move to Europe, choosing the free-wheeling Luxembourg market as its first destination. Meantime, media are reporting that yet another domestic Chinese financial product is about to default, joining a growing list of such distressed high-yield offerings. Read Full Post…
Yu’ebao Slowdown, Aug 8 Listing For Alibaba
Newly released data are showing an inevitable slowdown at Yu’ebao, Alibaba’s inaugural financial product that has shaken up China’s stodgy banking industry since its launch a year ago. The data released by Alibaba’s Tianhong Asset Management, which officially runs Yu’ebao, also shows the product’s return rate has dropped considerably from earlier levels, which will further undermine its attractiveness. Separately, media are reporting that Alibaba has tentatively chosen the date of August 8 for its highly anticipated New York listing, which had been previously rumored due to its significance as a lucky day on the Chinese calendar. Read Full Post…
Shanghai Street View: Attitude Adjustments
This week’s Street View takes us to Tianshan Road in the Changning district, where a group of mothers stirred up controversy by holding a charity event where they breast fed their young children in public. To an American who has lived in China for more than a decade, this kind of event seems tame by western standards. But it also seems quite bold for this ultra conservative country where public discussion of sex is still largely taboo and often extremely awkward. Read Full Post…
News Digest: July 2, 2014
The following press releases and media reports about Chinese companies were carried on July 2. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- China Passes US As Tech IPO Dynamo In Best Quarter (English article)
- Yu’ebao Return Rate Drops Below 4 Pct, Growth Slows (Chinese article)
- Alibaba Picks August 8 As Preliminary Listing Date (Chinese article)
- Vancl Sells Rufengda Parcel Delivery Unit (Chinese article)
- Movie Ticketing Site Gewara Wins 200 Mln Yuan Funding (English article)
LeTV Sues Xiaomi In Growing Copyright Wars
China was traditionally known for its rampant piracy, but is now suddenly becoming a strong copyright protection advocate with the rise of a new generation of video site operators looking to protect their intellectual property. In the latest twist of this new and somewhat unexpected trend, Internet TV operator LeTV (Shenzhen: 300104) has successfully sued fast-rising smartphone maker Xiaomi for copyright violations related to Xiaomi’s problem-plagued Internet TV set-top boxes. Read Full Post…
