The following press releases and media reports about Chinese companies were carried on April 2. To view a full article or story, click on the link next to the headline.
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Building Materials Maker Xuzhou Zhongsen Missed Bond Payment: Report (English article)
Qihoo 360 (NYSE: QIHU) In Talks to Acquire Group Buy Site 55Tuan – Source (English article)
Inventory At 46 Car Makers Climbs 14 Pct To 86 Bln Yuan (Chinese article)
LDK Solar (NYSE: LDK), Joint Provisional Liquidators Provide Update (PRNewswire)
Shanda Sells 41 Pct Of Ku6 Media (Nasdaq: KUTV) To Xu Xudong (English article)
Media are buzzing about the newly released annual results from telecoms equipment giant Huawei, though everyone is taking a different angle on the latest figures. Some are focused on the company’s return to strong profit growth, while others are highlighting its aggressive plans for the next 5 years. But my favorites are the headlines that trumpet Huawei’s ascendance to become the world’s biggest telecoms equipment maker, since it officially passed Sweden’s Ericsson (Stockholm: ERICb) in revenue terms last year. Read Full Post…
E-commerce leader Alibaba clearly has far too much cash and doesn’t know what to do with it. That’s my best explanation for its purchase of a stake in department store operator Intime Retail (HKEx: 1833), the latest acquisition in a supercharged buying spree over the last year. I’m personally quite puzzled by this latest deal, as it seems to contradict Alibaba’s mantra that it’s different from all of its rivals because it doesn’t own any actual retail businesses. Instead, the company has risen to prominence by operating online shopping malls that are populated by other retailers, which pay rent and other fees to Alibaba.Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 1. To view a full article or story, click on the link next to the headline.
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Huawei 2013 Profit At 21 Bln Yuan, Sales Outpace Ericsson (Stockholm: ERICb) (Chinese article)
Shanghai Media Group Undergoes New Round Of Restructuring (Chinese article)
Xiaomi Targets 100 Mln Handset Shipments In 2015 (English article)
Alibaba Invests $692 Mln In Chinese Department Store Operator (English article)
Tesla’s (Nasdaq: TSLA) China Chief Resigns, Company Cites Personal Reasons (English article)
New York investors lost another China play last week, when former IT outsourcing high-flyer Camelot Information Systems (NSYE: CIS) formally completed a privatization that will result in the imminent de-listing of its shares on the New York Stock Exchange. (company announcement) Camelot was just the latest in a steady stream of Chinese firms to recently abandon New York, where their shares stagnated for years due to lack of investor interest. New York’s losses could easily become China’s gains, as many Chinese investors might like to buy shares of these locally based companies that are both profitable and have strong growth potential. Read Full Post…
Two of this year’s biggest IPOs are both in the headlines, kicking off what’s likely to become a steady flow of news surrounding upcoming listings for e-commerce leader Alibaba and Citic Group, one of China’s oldest and most successful conglomerates. Citic is the more interesting in this latest pair of news bits, since this is the first time we’ve heard about the group’s plans to go public via a backdoor offering through its Hong Kong-listed Citic Pacific (HKEx: 267) unit. Meantime, media are reporting that investment banks are so eager to underwrite Alibaba’s IPO that they’re offering to accept record low fees for their services. Read Full Post…
We’re getting a glimpse of where future priorities may lie for smartphone makers ZTE (HKEx: 763; Shenzhen: 000063) and TCL Communications (HKEx: 2618; Shenzhen: 000100), with the former hinting at a move into wearable devices and the latter placing big bets on China’s homegrown 4G technology called TD-LTE. ZTE isn’t exactly known for setting new market trends, but I would certainly like its decision to test its luck in wearable devices like wrist watches and glasses sooner rather than later. Meantime, TCL’s TD-LTE gambit looks like a 50-50 bet to me, as this notoriously boom-bust company tries to find a sustainable formula for success. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 29-31. To view a full article or story, click on the link next to the headline.
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Citic Group Plans HK Listing By Reversing Into Citic Pacific (HKEx: 267) (English article)
Baidu (Nasdaq: BIDU) Defeats US Lawsuit Over Censored Search Results (English article)
Alibaba Listing Underwriters To Get 1 Pct Fee, New Low For Internet IPO (English article)
LDK (NYSE: LDK) Confirms Offshore Restructuring and Interim Financing (PRNewswire)
Camelot Information Systems (NYSE: CIS) Announces Completion of Merger (PRNewswire)
In a move that was long overdue, Yum Brands (NYSE: YUM) is taking the bold step of relaunching its KFC brand in China in a bid to reverse sinking sales as bird flu season heats up. Yum might like to blame its recent woes for KFC in China on a bird flu scare last year, or on a minor food safety scandal that briefly tarnished its image. But the reality is that the brand is showing signs of age, and really is in need of this kind of a major overhaul. Read Full Post…
News that high-end hotel operator Hyatt (NYSE: H) is launching 2 more brands in China is drawing attention to the market’s growing saturation, boding poorly for all operators as the nation’s economy slows. Hyatt and most of the other big western brands don’t disclose separate operating figures for China, but leading budget brands Home Inns (Nasdaq: HMIN) and China Lodging (Nasdaq: HTHT) act as good indicators for the market. And their latest quarterly results don’t paint a very rosy picture for the industry in the year ahead. Read Full Post…
The issue of corkage fees has been popping in and out of the headlines these past few months, spotlighting a practice that many Chinese consumers feel is unfair even though it’s quite common in the west. The issue is quite straightforward, with restaurants charging an extra fee to customers who drink their own wine or other beverage with their meal. Such fees are often quite high, and are meant to encourage people to purchase drinks from the menu. Read Full Post…
