Xunlei and 55tuan have emerged as 2 of the biggest orphans in the rapidly consolidating online video and group buying spaces, respectively, putting pressure on both to find partners to boost their chances for long-term survival. The pair were in separate headlines this week in their search for new tie-ups, with Xunlei selling a major stake of itself to software maker Kingsoft (HKEx: 3888) and 55tuan reportedly in talks to sell some or all of itself to security software maker Qihoo 360 (NYSE: QIHU). Read Full Post…
When does having nearly $2 billion in cash start to become a burden? If you’re China’s leading online travel agent Ctrip (Nasdaq: CTRP), the answer is “in the current climate”, where the company has just announced a plan to repurchase up to $600 million in its American Depositary Shares (ADSs). (company announcement) As a longtime company watcher, I can say with confidence that Ctrip shares are currently quite strong and have no need for this kind of repurchase program, which normally comes from companies whose stock is struggling. That leads to my conclusion that Ctrip simply has too much cash and doesn’t know what to do with it, prompting this buyback program. Read Full Post…
Educational services provider Tarena (Nasdaq: TEDU) has become the first Chinese company to list in New York this year, posting a disappointing debut hinting that US investor enthusiasm towards China stocks may be starting to cool. But truth be told, Tarena hardly looks like the vast majority of Chinese companies rushing to list in New York, most of which are in the Internet space. By comparison, Tarena is a relatively niche provider of education services for software engineers that is growing quickly enough but is still quite small. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 5. To view a full article or story, click on the link next to the headline.
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Chinese IPO Drought in New York Ends as Tarena (Nasdaq: TEDU) Advances (English article)
Ctrip (Nasdaq: CTRP) Announces Up to $600 Mln Share Repurchase Program (PRNewswire)
Alibaba’s Jack Ma Invests $532 Mln In Financial Software Firm (English article)
Kingsoft (HKEx: 3888) Makes $90 Mln Investment In Video Site Xunlei (Chinese article)
The tide of Chinese firms rushing to list in the US continues, with big new moves coming from security software specialist Cheetah Mobile and Leju, a unit of online real estate agent E-House (NYSE: EJ). Cheetah has filed for a New York listing to raise a hefty $300 million, in what would have been considered a major deal just a half year ago but now looks rather routine in the current wave of new offers by Chinese tech firms. Meantime, E-House is continuing its own IPO drive for Leju, which has just announced a new tie-up that will allow its users to invest in US real estate. Read Full Post…
It should come as no surprise to anyone that top officials at smartphone sensation Xiaomi are once again busy buzzing on their microblogs, since online hype has become a staple of this fast-growing company. But I was somewhat surprised that co-founder Lei Jun took time out from his usual hype to shoot down rumors of tie-ups with 2 of China’s leading Internet companies, hinting at his own big ambitions to soon take a spot alongside the “Big 3” of Alibaba, Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU). Meantime, ZTE’s (HKEx: 763; Shenzhen: 000063) plans to position its nubia brand of smartphones as a higher end product got a nice boost from China’s first lady Peng Liyuan, who made a point of being seen using one of the models during her husband’s trip to Europe.Read Full Post…
As a Shanghai resident, it’s been interesting to watch the sudden flurry of changes blowing through the local media industry that has suddenly entered a state of crisis amid plunging advertising sales. The newest change has seen a major restructuring for Shanghai Media Group (SMG), the city’s dominant broadcaster and China’s second largest traditional media company. Just 2 or 3 years ago I would have called SMG China’s second largest media company, but I suspect it has been passed in value over that period by more nimble and fast-growing new media firms like Tencent (HKEx: 700), Baidu (Nasdaq: BIDU) and possibly even Internet stalwart Sina (Nasdaq: SINA). Read Full Post…
Shanghai is working hard to reclaim its place as Asia’s entertainment capital, and has made big progress in that direction through recent major tie-ups with 2 of Hollywood’s leading stars, Disney (NYSE: DIS) and DreamWorks (NYSE: DWA). But that drive to the stars took on a new dimension over the past week when local media exposed a major local scam that feeds on people’s hopes of becoming celebrities.
Before coming to Asia a decade ago, I worked and lived in Los Angeles for most of the 1990s and got a first-hand look at the inner workings of the world’s entertainment capital. That included a thriving field of fake talent agents and other scam shops that sell the Hollywood dream of fame and wealth to ordinary people who secretly harbor dreams of stardom. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 3. To view a full article or story, click on the link next to the headline.
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ICBC (HKEx: 1398) Considers Bid For Unicredit’s Pioneer Fund Arm: Source (English article)
Security Software Maker Cheetah Mobile Files For $300 Mln US IPO (English article)
Earlier reports that the founder of online entertainment company Shanda was looking to sell his empire have taken an interesting twist, with word that a buyer has emerged for the company’s struggling Ku6 Media (Nasdaq: KUTV) online video unit. News that Shanda will sell 41 percent of Ku6 sent the unit’s shares soaring 43 percent, as investors bet the company would get privatized. The move adds weight to previous reports that Shanda founder Chen Tianqiao wants to sell off the various pieces of his online entertainment empire, with leading e-commerce firm Alibaba named as a potential buyer. Read Full Post…
One of China’s 2 major meltdowns in the solar panel sector has taken a big step forward with word that trading in shares of LDK (NYSE: LDK) has been suspended and the de-listing process formally begun as the company liquidates. Meantime, word of a missed interest payment by a building materials maker is sending the latest signal that China will let more companies in ailing sectors default on their debt rather than pay off their creditors. That’s an important signal for the solar sector, which relies heavily on such debt to finance its operations and where many smaller players are in danger of similar defaults. Read Full Post…
