Big stock moves for veteran online travel agent eLong (Nasdaq: LONG) and newly listed mobile game firm Ourgame (HKEx: 6899) are shining a spotlight on the need for consolidation in many of China’s online sectors, where these smaller players lack the resources to thrive over the longer term. Shares of eLong suddenly soared more than 20 percent in the latest session on trading volumes not seen for years, which will inevitably lead to speculation of a looming buyout offer. Meantime, Ourgame shares tanked 17 percent on their first trading day in Hong Kong, as investors yawned at the chance to buy into yet another mid-sized Chinese gaming firm. Read Full Post…
New Private Solar Group Tackles Trade Wars
Chinese solar panel makers have taken an important step to solving their ongoing trade spat with the west by formally launching a private sector trade association to speak on their behalf. The move gives the panel makers their first truly commercial representative to discuss the matter with peers in the US and Europe, providing a better alternative to the government-backed groups that previously spoke for them. Read Full Post…
News Digest: July 1, 2014
The following press releases and media reports about Chinese companies were carried on July 1. To view a full article or story, click on the link next to the headline.
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- Sex Video New Twist In GSK (London: GSK) China Bribery Scandal (English article)
- LeTV (Shenzhen: 300104) Wins Piracy Lawsuit Against Xiaomi Box (Chinese article)
- WeChat Accounts for 10 Pct Of JD.com (Nasdaq: JD) Book Sales (English article)
- Mobile Game Maker Ourgame (HKEx: 6899) Drops 17 Pct On Trading Debut (Chinese article)
- Apple (Nasdaq: AAPL) Seeks Managers For Stores In 6 New Chinese Cities (English article)
Tencent Ties With 58.com, Xiaomi With Xunlei
Newly listed companies are becoming popular investment targets for some of China’s tech giants, with online classified site 58.com (NYSE: WUBA) and video sharing site Xunlei (Nasdaq: XNET) both picking up major new backers in the form of Tencent (HKEx: 700) and Xiaomi, respectively. Meantime in other IPO news, a long-delayed domestic IPO for the website of the official Xinhua news agency is finally moving ahead, some 2 and a half years after a deal was first rumored. The case of Xinhuanet is particularly interesting because Xinhua and People’s Daily, the official Communist Party newspaper whose People.com (Shanghai: 603000) website is already listed, recently merged their 2 money-losing online search sites. Read Full Post…
4G To Boost Unicom, China Telecom By Year End
After several false alarms, China’s slow-moving telecoms regulator has finally made its highly anticipated award of 4G licenses to the nation’s 2 smaller telcos, providing a much needed boost as they lose share to dominant telco China Mobile (HKEx: 941; NYSE: CHL). Now China Telcom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHA) will have to quickly build networks based on 4G FDD-LTE technology, the standard used in most of the rest of the world that will now finally make its debut in China. Read Full Post…
China Forestry Joins Debt Default Queue
The list of Chinese companies defaulting on their bonds continues to grow, with word that timber firm China Forestry Holdings (HKEx: 930) has missed an interest payment as it tries to repurchase the notes. I’ll admit that one reason I’m focusing on this news is because of a recent conversation I had with a Chinese banker, who explained to me what happens behind-the-scenes when companies have difficulty making bond payments. That explanation shows why we haven’t seen too many bond defaults yet, despite constant media reports that China’s banks are struggling under mountains of unreported non-performing loans. Read Full Post…
News Digest: June 28-30, 2014
The following press releases and media reports about Chinese companies were carried on June 28-30. To view a full article or story, click on the link next to the headline.
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- China Telecom, Unicom Get 4G FDD-LTE Trial Licences In 16 Cities (English article)
- Tencent (HKEx: 700) Invests $736 Mln For 19.9 Pct Of 58.com (NYSE WUBA) (company announcement)
- Trina (NSYE: TSL) CEO Elected First President of New China Photovoltaic Industry Assn (PRNewswire)
- New Energy Car Sales Rise 10-Fold, Turning Point Seen For BYD (HKEx: 1211) (Chinese article)
- LightInTheBox (NYSE: LITB) Raises Q2 Financial Guidance (PRNewswire)
Alibaba Picks NYSE, Plays With Yahoo, Football
It’s been 2 weeks since I’ve written a post exclusively about leading e-commerce company Alibaba, so I thought I’d end the week with a round-up of a few company news bits including its selection of the New York Stock Exchange for its highly-anticipated IPO. In related news, the company’s major shareholder Yahoo (Nasdaq: YHOO) is reportedly in talks to reduce its planned sale of Alibaba shares in the offering. Last but not least, Alibaba has formally added its name to one of its latest acquisitions, a stake in one of China’s leading soccer clubs. Read Full Post…
QVOD, Shenzhen Govt Face Off Over Record Fine
An exciting showdown that could become a landmark case in copyright protection is shaping up in Shenzhen, where a company accused of rampant piracy is refusing to pay a record fine formally levied this week by the city government. I first wrote about the massive 260 million yuan ($42 million) fine against video sharing site QVOD, whose Chinese name is kuaibo, about a month ago when the record-breaking sum was first announced. (previous post) Now Shenzhen has formally levied the fine, and QVOD has refused to pay and is threatening to take its own legal action. Read Full Post…
News Digest: June 27, 2014
The following press releases and media reports about Chinese companies were carried on June 27. To view a full article or story, click on the link next to the headline.
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- Alibaba Picks New York Stock Exchange For IPO (English article)
- Chinese Cars In ‘Transformers 4’ Bound for US Next Year (English article)
- Video Site QVOD Refuses To Pay 260 Mln Yuan Copyright Fine, Says To Sue (Chinese article)
- Canadian Solar (Nasdaq: CSIQ) In Deal For 140 MW DC Solar Farm In Ontario (PRNewswire)
- GM (NYSE: GM) Says Ignition Switch Linked To Recall Made In China (English article)
Best Buy, Amazon, Aisidi In Retailing Shuffle
Several news bits from the electronics retailing space are in the headlines today, reflecting the volatile state of a highly competitive sector where margins are razor thin. US retailing giant Best Buy (NYSE: BBY) leads the headlines, with word that it’s mulling a sale of its China business 3 years after closing most of its own-brand stores in the market. Leading e-commerce firm Amazon (Nasdaq: AMZN) is also reportedly eying a retreat in the China home appliance market, while homegrown player Aisidi (Shenzhen: 002416) is moving in the other direction with its purchase of one of the nation’s top online cellphone retailers. Read Full Post…
