We’re in that brief window of time each year between the western and Chinese new years, so perhaps it’s appropriate that we’re getting reports of new looks at fast-rising food maker Shuanghui International and online search leader Baidu (Nasdaq: BIDU). Shuanghui has just released an announcement saying it will officially change its name to WH Group as part of a new globalization campaign. Meantime, separate media reports are saying that Baidu is experimenting with adjustments to its signature home page, in a revamp that would be its first in 7 years. Read Full Post…
Normally the sudden resignation of a quarter of a company’s board would ring alarm bells for many investors, but just the opposite seems to be the case for controversial software security specialist and rising online search star Qihoo 360 (NYSE: QIHU). The company’s shares jumped nearly 6 percent during the latest trading session in New York, and then managed to maintain most of those gains even after it announced the resignation of 2 of its 9 directors after the market closed. But that kind of performance seems normal for Qihoo these days, as investors buy heavily into the bullish growth story for its search business and ignore a number of potential warning signs, including these latest resignations. Read Full Post…
Online professional networking leader LinkedIn (NYSE: LNKD) took a big step towards entering the lucrative but tricky China market last week when it created a new China chief position and filled it with an industry veteran as it explores a formal service launch. The move was just the latest in the company’s slow and careful approach to China, and could boost its chances of success in a market that has proven difficult for other global giants like Google (Nasdaq: GOOG), Yahoo (Nasdaq: YHOO) and eBay (Nasdaq: EBAY). Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 22. To view a full article or story, click on the link next to the headline.
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Tiger Global Snaps Up Alibaba Shares At Lofty Valuation (English article)
Qihoo 360 (NYSE: QIHU) Announces Resignation Of 2 Board Members (PRNewswire)
Shuanghui International Changes Name To WH Group (Businesswire)
New Oriental (NYSE: EDU) Announces Unaudited Fiscal Q2 Results (PRNewswire)
Citic Securities (HKEx: 6030) Gives Preliminary Financial Data For 2013 (HKEx announcement)
After more than a half year of silence, Lenovo’s (HKEx: 992) dream to buy the low-end server business of IBM (NYSE: IBM) is suddenly back in the headlines, in a development that I predicted quite a while ago based on the fact that both sides really want to do this deal. The first time around saw the talks founder and ultimately stall due to disagreement on price. But such a deal makes so much sense for both sides that it’s almost inevitable that it will happen, which leads me to believe that we could see announcement of a preliminary agreement sometime in the first or second quarter. Meantime, Lenovo is also seeing a positive development on the Japan front, where its 3-year-old PC joint venture with local partner NEC (Tokyo: 6701) is doing better than expected. Read Full Post…
Embattled smartphone and telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) is all over the headlines today, led by word that the company has strongly bounced back into the black after a major restructuring to cut costs and realign its businesses. ZTE also announced aggressive sales targets this year for its fast-growing smartphone business, which it hopes will offset much slower growth for its older networking equipment unit. But the upbeat news was partly offset by word that the US is launching a new probe into ZTE and several other smartphone makers, after a US company filed a patent infringement complaint. Read Full Post…
Shanghai’s signature Oriental Pearl Tower takes center stage in this week’s Street View, following a much-needed cleaning for the original high-rise in city’s fast-evolving Lujiazui financial district. This concrete and purple glass tower has been the source of controversy since its construction in the early 1990s, winning praise from some for its futuristic look and scorn from others who called it an urban eyesore. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 21. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: 992) Still Aims To Buy IBM (NYSE: IBM) Low-End Server Unit (Chinese article)
ZTE (HKEx: 763) Announces Preliminary Results For Year 2013 (HKEx announcement)
Peugeot Moves Closer To Dongfeng (HKEx: 489) Deal As Sales Sag (English article)
CNOOC (HKEx: 883) Announces 2014 Business Strategy, Development Plan (PRNewswire)
Game Operator Linekong Lands $80 Mln In Series C Funding (English article)
Shenzhen Airlines officials sentenced for fund misuse
China’s recent wave of anti-corruption probes at big state-owned firms is moving in another new direction, with word that 6 officials at regional carrier Shenzhen Airlines have been found guilty and sentenced for misappropriating funds. This particular case represents a new wrinkle in the recent wave of probes because it involves corruption through the use of business shenanigans, rather than direct bribes and embezzlement that have been the focus of most investigations so far. At the same time, Chinese graft investigators are getting some moral support from abroad, with word that Britain’s anti-corruption watchdog has received more funds for its own investigation of Rolls-Royce (London: RR) related to the luxury car maker’s activities in China and Indonesia. Read Full Post…
It’s not too often that I agree with articles published in the People’s Daily, but for once I have to say that a new attack by the newspaper on personal health products maker Nu Skin (NYSE: NUS) looks at least partly deserved. That said, I did find the language used to attack Nu Skin somewhat comical and exaggerated, even if it the basic ideas are probably true. I was also somewhat surprised at how big a market China has become for Nu Skin, reflecting how easily such companies can win over Chinese consumers and businesspeople who often assume that any product with a western name must be good and trustworthy. Read Full Post…
The growing field of big Chinese global investors has gained a new member, with word that a unit of Citic Group, one of the nation’s oldest conglomerates, is taking a stake in a major new fund being set up in New York. Word of that deal comes as Citic Capital wraps up another major deal, as it finally closes its long and difficult plan to buy out New York-listed telecoms software maker AsiaInfo-Linkage (Nasdaq: ASIA). Both deals underscore not only Citic’s own aspirations as a global investor, but also the broader rise of Chinese private equity firms on the world stage as they aim to compete with big western names like KKR and Carlyle. Read Full Post…
