I’m always looking for signs that the overseas IPO market for Chinese tech firms may finally be warming after a long winter now in its third year, but the latest signs from privatizing IT outsourcing firm Pactera (Nasdaq: PACT) and restaurant ratings site Dianping are hardly encouraging. Pactera has just announced it has formally signed a buyout offer that will take the company private, making it the latest in a long string of Chinese companies to de-list from New York. Meantime, media are reporting that Dianping, a dynamic site often likened to US site Yelp (NYSE: YELP), doesn’t plan to list for the next 5 years. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 18. To view a full article or story, click on the link next to the headline.
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Corruption Watchdog Slams Chinese Firms’ Lack Of Transparency (English article)
Blackstone Raises Bid For Pactera (Nasdaq: PACT) To $7.30 Per ADS From $7 (PRNewswire)
Ex-Google (Nasdaq: GOOG) China Chief Lee Kai-fu Under Propagandist Attack (English article)
Geely (HKEx: 175) Announces Relocation Of 2 Car Plants Due To Urban Redevelopment (HKEx announcement)
Alibaba may have lost its affection for Hong Kong’s securities regulator after an impasse over its IPO plans, but it appears to be moving in a happier direction these days with US Internet giant Yahoo (Nasdaq: YHOO). That’s my assessment, following word that Yahoo will hold onto a larger share of China’s e-commerce leader than the 2 sides had previously agreed to last year when they reached a landmark deal to end their 7-year-old stormy marriage. That leads me to my longer-term forecast that perhaps we could see this pair remain united for the next few years in a strategic alliance, which could even see Alibaba acquire its own strategic stake in Yahoo at some point in the not-too-distant future. Read Full Post…
Youku Tudou sues Xiaomi for copyright infringement
Earlier this week I wrote how smart TV could be poised for a sudden explosion in China due to a combination of factors that made the market especially well suited for development of this product. (previous post) Now we’re seeing one of the major obstacles that smart TVs could face, namely copyright lawsuits by various players against one another as each seeks to gain the upper hand in an increasingly competitive market. We could soon be seeing an avalanche of such litigation, with word that leading online video website Youku Tudou (NYSE: YOKU) has just sued Xioami for copyright infringement, following the latter’s recent rollout of a new smart TV product. Read Full Post…
These last few months have seen an interesting friendship chronicled online between 3 major Internet figures, with the top executives from leading web portal Sina (Nasdaq: SINA), e-commerce leader Alibaba and online game operator Giant Interactive (NYSE: GA) spending increasing time together. The camaraderie between Alibaba founder and Chairman Jack Ma, Sina CEO and Chairman Charles Chao and Giant Chairman Shi Yuzhu has been chronicled on Sina’s Weibo microblogging service, where the 3 have been seen engaging in an array of activities that often look more like hobbies than the businesses each has become famous for leading. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 17. To view a full article or story, click on the link next to the headline.
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PetroChina’s (HKEx: 857) Former Indonesia Chief Under Investigation – Sources (English article)
Yahoo (Nasdaq: YHOO) Reduces Planned Stake Sales To Alibaba On Strong Outlook (English article)
Baidu (Nasdaq: BIDU) In Talks To Acquire Ku6 (Nasdaq: KUTV), 56.com – Source (English article)
NQ Mobile (NYSE: NQ) Completes $172.5 Mln Convertible Senior Notes Offer (PRNewswire)
ZTE (HKEx: 763) Wins Highest EPC Share of China Telecom LTE Tender (Businesswire)
China’s unruly markets for emerging sectors are famous for Trojan Horses, which often come as hidden traps in many products and services that ultimately harm consumers. The nation’s tourism authority just launched a new law to eliminate such traps in the travel sector, and now we’re getting word that the telecoms regulator is preparing a similar move against hidden and sometimes malicious apps that often come pre-installed on many new smartphones. This new crackdown will help to rid the market of such unwanted apps, such as ones that provide users’ personal data to third-parties without the users’ knowledge or consent. But the move could also ultimately drive up smartphone prices and perhaps even drive some companies out of business. Read Full Post…
Oriental Morning Post owner set to merge with Jiefang Group
As a Shanghai resident with a personal interest in the media, I’ve become quite familiar with my local media scene that is largely dominated by 3 state-owned companies. That’s why I was intrigued and even a little excited to read that 2 of those companies might be preparing to merge, hinting at a broader coming consolidation that could produce a handful of new national media giants capable of challenging stodgy old names like CCTV and Xinhua. Of course there’s no guarantee that any of these newer names would be any more creative than the existing giants, since all come from backgrounds as state-run enterprises that are often far less innovative than their private sector peers. Read Full Post…
International board finds new life in Shanghai Free Trade Zone
I’ve avoided writing about the new Shanghai Free Trade Zone (FTZ) up until now, despite exhaustive coverage in both domestic and international media. But now I’m lifting my informal ban, following new reports saying the FTZ could soon host a proposed but long-stalled international board where foreign companies could list their shares in China. Such a development would be quite exciting, as it could finally allow big names like China Mobile (HKEx: 941; NYSE: CHL) and Lenovo (HKEx: 992), which are technically based overseas, to finally make their shares accessible to investors in China. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 16. To view a full article or story, click on the link next to the headline.
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Alibaba Posts $700 Mln Profit, $1.7 Bln Revenue In Q3 (Chinese article)
Shanghai’s Second, Third Largest Media Groups To Merge (English article)
MIIT To Implement App Pre-Installation Regulations (English article)
US Retailer Gap (NYSE: GPS) Uses “Market Mapping” Strategy In China (Chinese article)
Gaopeng Won’t Support Losers, Reportedly Making Big Layoffs In Chengdu (Chinese article)
Online apparel retailer Vancl continues to struggle, with media reporting the former e-commerce rising star has fallen into arrears in payments to many of its suppliers, including more than 10 million yuan ($1.6 million) owed to sporting apparel maker Li Ning (HKEx: 2331). The latest reports are citing company chief Chen Nian saying that Vancl experienced its darkest period late last year, and is now on the mend. But if reports of the arrears are true, Vancl’s failure to pay its suppliers could mark the beginning of the end for the company, which has made a number of major adjustments over the past 2 years in a bid to find sustainable long-term profits. Read Full Post…
