A week after shares of Internet portal Sohu (Nasdaq: SOHU) went on a roller coaster ride on rumors of a de-listing plan that the company later denied, we’re getting word that drug maker Simcere Pharmaceutical (NYSE: SCR) is launching the latest privatization plan by a US-listed Chinese firm. In related news, media are also reporting that online game operator The9 (Nasdaq: NCTY) is also considering such a plan. But red-hot e-commerce firm Vipshop (NYSE: VIPS) is moving in the opposite direction, announcing a plan to sell more shares to raise up to $180 million. These very different tales show that overseas investors have become quite choosy toward Chinese companies in the current climate, richly rewarding a few fast-growth players while largely ignoring most others.
Solar Sell-Off As Suntech Delays 尚德延期，太阳能股被抛售
Solar investors are feeling decidedly bearish this week, bidding down shares in most major solar panel makers even as a few major names including Suntech (NYSE: STP), Canadian Solar (Nasdaq: CSIQ) and JinkoSolar (NYSE: JKS) tried to prime the market with upbeat news. But truth be told, the news from all 3 of these companies looks marginally positive at best, which clearly wasn’t enough for investors who have grown tired of the non-stop bad news from an industry that has been struggling for 2 years now due to massive oversupply.
4G Buzz: Who Gets What? 中国4G网络迷局
Chinese telecoms officials have been speaking non-stop these last 2 weeks about fourth-generation mobile networks, better known as 4G, making the roll-out of commercial 4G services look almost inevitable as early as the third quarter of this year. But amid all the buzz, the critical question and previously hot topic of which telcos will be assigned to build networks based on what 4G technology standards has quietly disappeared from the discussion.
ICBC Still Hitched to Beijing In Singapore Deal 新加坡协议中工商银行依然依赖中国政府
The global aspirations of top Chinese lender ICBC (HKEx: 1398; Shanghai: 601398) got a big boost last week when China announced a major expansion of its yuan exchange agreement with Singapore, naming ICBC as the local agent to execute the deal. The Central Bank’s award of such major new business to a private lender underscores the close ties that remain between Beijing and China’s top banks, undermining their credibility as they seek to compete globally with big western names like HSBC and Citibank. If Beijing really wants ICBC and China’s other major banks to win global respect, it needs to halt this kind of special treatment. Otherwise it risks keeping these financial institutions dependent on State support for their success, forever stigmatizing them as policy lenders.
News Digest: March 12 报摘：2013年3月12日
The following press releases and media reports about Chinese companies were carried on March 12. To view a full article or story, click on the link next to the headline.
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- Suntech (NYSE: STP) Signs Forbearance Agreement with Convertible Note Holders (PRNewswire)
- Simcere Pharmaceutical (NYSE: SCR) Announces Receipt of “Going Private” Proposal (PRNewswire)
- Xiaomi Set-Top TV Box Wins Regulatory Approval, Announcement Set For April 9 (Chinese article)
- Lenovo (HKEx: 992) CEO Says Open To Buying BlackBerry (Toronto: BB) (English article)
- Alibaba Group Picks Jonathan Lu As Next CEO (English article)
- Latest calendar for Q4 earnings reports (Earnings calendar)
Media Regulator Merger: Less Oversight? 新闻出版总署和广电总局整合 或令媒体监管放松
Despite previous denials, China announced over the weekend that its 2 main media regulators will merge as part of a drive to streamline government — a move that could ultimately benefit both new and traditional media. I have to start off by pointing out how meaningless official denials are in China, as a top official at the General Administration of Press and Publication (GAPP) just last week denied that his ministry would merge with the State Administration of Radio Film and Television (SARFT). (English article)
Shanghai Street View: Muffling Merrymakers 沪经动向：消除噪音
Shanghai has a strong reputation for accomplishing difficult tasks, but I really think the city could find it hard to implement its latest new law targeting bothersome outdoor noise. The law, which came into effect at the end of February, takes aim at one of the city’s most common pastimes: the outdoor dancing squad. The term “dancing squad” is really just my own creation, as these kinds of outdoor performances aren’t really limited to dancing. They run the range from groups of women doing calisthenic-like dances in the morning, to people ballroom dancing and singing karaoke music outside parks.
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News Digest: March 9-11 报摘：2013年3月9-11日
The following press releases and media reports about Chinese companies were carried on March 9-11. To view a full article or story, click on the link next to the headline.
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- China’s Commerce Minister Seeks Clearer US Investment Guide (English article)
- Qihoo (NYSE: QIHU) Share of China Search PVs Up 1.8 Pctage Pts Since January (English article)
- MIIT: Complete Commercialization Of 4G Will Require At Least A Year (Chinese article)
- China PICC Group Sees Shanghai Listing In H2 2013 (English article)
- Focus Media (Nasdaq: FMCN) Says To Hold Mtg This Year To Vote On Privatizing (Chinese article)
- Latest calendar for Q4 earnings reports (Earnings calendar)
Mobile: Easou, UC Talk Merger, Xiaomi Grows 宜搜与UC据传洽谈合并 小米手机目标翻番
The mobile Internet is buzzing today with a couple of interesting news bits, including one that could see an emerging new giant forming with talk of a potential merger between search site operator Easou and UC Mobile, maker of a popular mobile web browser. Meantime, other media reports say up-and-comer Xiaomi aims to double its sales this year, as it looks to move from niche player to a more mainstream maker of lower-cost, high performance smartphones.
Suntech: Shinier Days Ahead? 尚德电力危机初现曙光？
With only a week before a key deadline for a big debt repayment, solar panel maker Suntech (NYSE: STP) appears to have cleared a major hurdle for a rescue plan by settling a big dispute with one of its major partners. I suspect that settlement with GSF, a builder of solar plants in Europe, was a major condition by Suntech’s bondholders for a deal that could see the company avoid both bankruptcy or a takeover by Chinese government entities. In the meantime, Suntech’s colorful founder Shi Zhengrong is speaking freely to the media about his forceful ouster earlier this week from the chairmanship of his company, in an ongoing series of power plays taking place behind the scene.
Dangdang Results: Investors Losing Patience 当当网业绩：投资者失去耐心
A sharp dip in Dangdang (NYSE: DANG) shares after it announced its latest results shows investors may be losing patience with this company that arrived early to China’s e-commerce space, only to be overtaken by more aggressive rivals in the last 2 years. Dangdang’s stock tumbled 4.8 percent after the announcement of its latest results, which showed the company’s losses were stabilizing as it took cost-cutting moves and competition eased a bit in China’s ultra-competitive e-commerce market.
