After a wait of more than 2 years, Sina’s (Nasdaq: SINA) hugely popular Weibo microblogging platform is finally realizing some of its potential, raising the possibility we could finally see an IPO for the Twitter-like service in the next year. People started buzzing about a Weibo IPO as early as late 2010, when the service first began its meteoric rise after Beijing blocked the original Twitter in 2009. But then investors quickly cooled to the idea of an IPO, as it became apparent that Sina Weibo might take a long time to become profitable and a separate series of accounting scandals rocked the broader sector of US-listed Chinese stocks.Read Full Post…
A year after winning a license for domestic parcel delivery in China, global giant UPS (NYSE: UPS) is rolling out a major expansion in the market in a bid to capitalize on the local boom in e-commerce. This kind of expansion could be especially profitable for UPS, as it could profit not only from an explosion in demand for delivery services, but also from demand for its highly profitable logistics services. E-commerce companies could welcome such third-party logistics services, as many are already building up their own networks of warehouses in a bid to deliver their goods more efficiently.
The following press releases and media reports about Chinese companies were carried on August 15. To view a full article or story, click on the link next to the headline.
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Barely a month goes by these days without rumor of a new acquisition target for Baidu (Nasdaq: BIDU), which suddenly seems anxious to buy up major assets in its bid to diversify beyond its core search business. The latest rumors say Baidu is close to a deal to purchase Nuomi, the group buying unit of social networking leader Renren (NYSE: RENN). As one of China’s most profitable Internet companies, Baidu is hoping to take advantage of low valuations of Chinese Internet firms, many of which are running low on cash and have had trouble attracting interest from foreign investors. Baidu, by comparison, has plenty of resources to make such purchases, including $2.5 billion in cash from 2 recent major bond sales. Read Full Post…
US-listed drug maker Simcere Pharmaceutical (NYSE: SCR) must be eagerly looking forward to completing its pending privatization, following the release of its latest quarterly results that show the fast-growing Chinese healthcare market is suddenly losing some of its luster. Simcere is just the latest drug maker to encounter headwinds in China, where fierce competition and strict government oversight are suddenly giving both domestic and foreign drug makers a major headache. Many of those companies were hoping to make big bucks as China rolled out a new national healthcare network to replace its old system where everyone got medical care through their state-run work units. But Beijing is pushing back by showing it aims to get maximum value for its money, and also that it won’t tolerate aggressive sales tactics practiced by many companies. Read Full Post…
Traditional retailers are taking a hit recently, with fast-food operator KFC and sporting goods seller Li Ning (HKEx: 2331) the latest to report disappointing results due to a complex series of factors. KFC is suffering from a number of company specific issues, combined with residual effects from China’s slowing economy and fallout from a bird flu outbreak earlier in the year. The picture looks more grim for Li Ning and other traditional non-restaurant retailers, which are fighting a losing battle against fast-rising e-commerce firms. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 14. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) In Talks To Acquire Nuomi, Ding Ding Map (English article)
UPS (NYSE: UPS) Expands Logistics Reach To Meet Emerging Demand in China (Businesswire)
I’m calling today “IPO Tuesday” because there are quite a few interesting news bits involving Chinese listing plans, led by an unexpected report that Internet giant Tencent (HKEx: 700) is eying Singapore for a listing for its popular WeChat mobile messaging service. That same report cites a source saying that Tencent itself eventually aims to complement its existing Hong Kong listing with a dual listing in New York — another unexpected twist for one of China’s most dynamic Internet companies. Meantime, China’s largest investment bank CICC is also making headlines with word of a listing plan, as Internet company 500wan.com moves ahead with its own New York IPO. Read Full Post…
Shanghai’s endless summer heat wave has taken over the city for more than a month now, monopolizing everything from the latest headlines to ordinary conversation. It’s difficult to pick up a copy of the Shanghai Daily or Oriental Morning Post these days without reading about the latest scorching temperatures splashed across the front page. The guard at my building inevitably greets me each day with his latest comments on the heat, and many conversations with friends start the same way. Read Full Post…
I wasn’t too surprised to read the latest news that British retailing giant Tesco (London: TSCO) was effectively bowing out of the Chinese supermarket business, as the company never really found a niche in the fiercely competitive market. But more interesting will be the fate of remaining giants Walmart (NYSE: WMT) and Carrefour (Paris: CA), and even domestic leader Sun Art (HKEx: 6808), as these companies struggle to remain relevant amid a major assault from e-commerce firms. Of those big players, only Walmart has made a serious move into e-commerce, which looks set to rapidly overtake traditional markets in China’s retailing space. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 13. To view a full article or story, click on the link next to the headline.
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Sina (Nasdaq: SINA) Reports Q2 Financial Results (PRNewswire)
ZTE (HKEx: 763) To Sell ZTE Open Firefox OS Phone on eBay US and UK (Businesswire)
Alibaba’s Taobao Bans Externally Linked QR Codes (English article)
500wan.com Chooses Deutsche Bank, Stifel For $150 Mln New York IPO (Chinese article)
Yum’s (NYSE :YUM) July China Restaurant Sales Drop More Than Expected (English article)
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