The following press releases and media reports about Chinese companies were carried on October 23. To view a full article or story, click on the link next to the headline.
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My earnings seasons officially kicks off today with reports from leading telco China Mobile (HKEx: 941; NYSE: CHL) and former e-commerce superstar Dangdang (NYSE: DANG), whose third-quarter results are sending a subdued message of stiff competition and slowing growth. Each company is struggling with its own individual issues, but the common theme is that both have missed market expectation by a significant margin. A number of factors are at work that I’ll describe shortly, but fierce competition and China’s slowing economy seem to be 2 of the biggest issues facing both companies. If this shaky start turns into a trend, we could see other companies reporting similarly disappointing results in the weeks ahead. Read Full Post…
I don’t usually write about expat-specific topics in this column, as I prefer to focus on broader issues of interest to everyone here in Shanghai. But a recent news story on the difficulties faced by an expat who obtained a rare Chinese green card seemed like a good opportunity to look at the bureaucracy that affects all of us here as we go about our daily lives. Read Full Post…
Rupert Murdoch’s News Corp (Nasdaq: NWSA) ended its stormy love affair with Chinese television late last week, when it sold its last remaining major asset to a private equity firm. The company’s gradual withdrawal over the last 3 years underscores the difficulty that many western media firms still face in China’s TV market despite rapid changes over the last year. Domestic and foreign companies alike need space to act more commercially in a streamlined regulatory environment for China to develop a truly world-class industry that can someday challenge the dominance of Hollywood. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 22. To view a full article or story, click on the link next to the headline.
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Starbucks (Nasdaq: SBUX) Under Media Fire In China For High Prices (English article)
We’re rapidly running out of days in October for 2 major telecoms developments that many were expecting this month, namely the awarding of new licenses for 4G wireless service and for new telecoms service providers known as virtual network operators (VNOs). There are still 10 days left in the month, so it’s possible that one or both could still happen. But the usual delays could mean we may not see any major announcements for a little while longer. Meantime, media are reporting some new information on a timetable for the VNO roll-out; and in another major development that could shake up the status quo, media are also saying that leading wireless telco China Mobile (HKEx: 941; NYSE: CHL) could soon get a license to offer fixed-line telecoms services. Read Full Post…
Update: After publishing this originally, a Qunar spokeswoman pointed out that Goldman Sachs was among the investment banks underwriting its IPO. So that changes the tenor of the last part of the post, which says that no premium investment banks were involved in the offering.
A long awaited year-end fund-flurry of fund raising by Chinese tech firms is gaining momentum, with online travel sites Qunar and Ctrip (Nasdaq: CTRP) leading the charge as investor interest finally returns to the market. Qunar has just made the first public filing for its long-delayed IPO, while Ctrip continues to dazzle the markets by raising the size of its recent mega bond offer for the second time, underscoring strong demand from investors. Read Full Post…
I wanted to take a break from the usual companies I write about to look at the quietly rising NQ Mobile (NYSE: NQ), which has just joined a elite club of top Chinese web firms with a new major bond issue. The fact that NQ, formerly known as NetQin, could issue these bonds at all reflects its growing attractiveness to investors as a strong bet on China’s security software market. I can’t comment too much on its products, as I haven’t used them; but the company certainly looks well positioned to gain share in a market now dominated by Qihoo 360 (NYSE: QIHU), whose free security software is becoming the subject of growing controversy. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 19-21. To view a full article or story, click on the link next to the headline.
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I had to smile when I read a new report that levels harsh criticism at Chinese firms for their lack of transparency, since anyone who lives and works in China knows that this kind of opaqueness is rampant in China’s secretive corporate culture. It’s interesting to note that the report takes aim at China’s state-run corporate sector, where transparency is almost a dirty word and publicly traded giants like China Mobile (HKEx: 941; NYSE: CHL) and PetroChina (HKEx: 857; Shanghai: 601857; NYSE: PTR) justify their stance by hiding behind their powerful and well-connected state-owned parents. But China’s publicly listed companies that come from the private sector are also often guilty of similar sins, with company founders often using their firms as personal fiefdoms. Read Full Post…
I love a good case of irony, which is why I was amused to read that software security specialist Qihoo 360 (NYSE: QIHU) is suing leading search firm Baidu (Nasdaq: BIDU) for unfair competition. The irony lies in the fact that Qihoo is notorious for using underhanded tactics against its rivals and is now accusing Baidu of similar behavior. Perhaps Qihoo should instead be congratulating Baidu for winning over its rival to the Dark Side. Meantime in separate legal news, up-and-coming smartphone maker Xiaomi is being sued for the second time in a week in relation to its smart TV products, hinting that this new product area could face an uphill battle from a flood of litigation. Read Full Post…
