Everyone else is commenting on the latest quarterly results from global PC leader Lenovo (HKEx: 992), so of course I need to give my own opinion on this company that could soon find itself facing a number of challenges following its recent taking of the global PC crown from Hewlett-Packard (NYSE: HPQ). I should start with a look at investor reaction to the latest results, which seems to be a yawn of indifference and perhaps some impatience with the company. Lenovo shares lost 2.7 percent after the result came out on Thursday, even though the company’s profit was ahead of expectation. Shares bounced back in early Friday trade and were up more than 4 percent, but the conflicting movement again reflected the growing fatigue investors are feeling toward this company and all of its big talk.
Monster Roars Out of China 巨兽拟出售中华英才网
I’ve always wondered whatever happened to online job site ChinaHR since its purchase in 2008 by US industry leader Monster Worldwide (NYSE: MWW); now I have my answer with new reports that the tie-up has been more or less a failure and that Monster plans to sell its main China asset. This latest disaster shouldn’t come as a huge surprise to anyone, since Monster follows a long list of much better known US web giants that have also tried and failed in China, including Google (Nasdaq: GOOG), Yahoo (Nasdaq: YHOO) and eBay (Nasdaq: EBAY).
YY Marches To Market YY开赴市场
The latest signs of a thaw in overseas sentiment toward Chinese stocks is coming today with news that online networking site YY has set a price range for its New York IPO, in what would become only the second major US offering by a Chinese firm this year. At the same time, media are reporting that the US securities regulator is moving closer to a deal with its Chinese peers that will give it better access to the auditing records of US-listed Chinese firms, another major development that should further boost investor confidence.
News Digest: November 9 报摘： 2012年11月9日
The following press releases and media reports about Chinese companies were carried on November 8. To view a full article or story, click on the link next to the headline.
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- US Sees Talks With China on Corporate Audits (English article)
- YY Sets IPO Price Range, To Raise Up To $97.5 Mln (Chinese article)
- Lenovo (HKEx: 992) Reports Interim Fiscal Year Results (HKEx announcement)
- Monster Worldwide (NYSE: MWN) Exploring China Business Sale; Shares Rise (English article)
- Qihoo 360 (NYSE: QIHU) Expanding Online Search Team – Source (English article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Sohu: China’s Biggest Little Net Firm 搜狗拟分拆上市
I had to smile this morning when I read the latest reports on Sohu (Nasdaq: SOHU), one of China’s oldest web firms, which I’m officially christening as “China’s biggest little Internet company” following word that it plans to make an IPO for its Sogou search engine. If readers note some sarcasm in my tone, it’s certainly there. But at the same time, I do have a certain level of fascination with this company, which seems determined to spin off as many of its units as possible into separate publicly listed companies.
US Finalizes China Solar Tariffs 中国输美光伏产品遭倾销终裁
President Obama’s election victory has dominated US headlines over the last 2 days, but Washington showed it was still hard at work with news that the US trade watchdog has finalized punitive anti-dumping tariffs against Chinese solar panel makers. In a way, this kind of quiet ending seems appropriate for a drawn-out process that began more than a year ago with a Congressional probe into a bankrupt US solar firm. With this trade issue now resolved, China, which produces more than half of the world’s solar panels, can now focus on simply saving an industry that is bleeding cash due to a huge oversupply glut.
Hotel Growth Story Sputters 酒店业增长停滞
Hotel operators must surely remember 2010 with fondness, as the year that saw Shanghai host the World Expo also saw their business boom with room prices rising by 20 percent or more and occupancy rates near 100 percent. But much has changed over the last 2 years, as reflected by the latest uninspired results from 7 Days Group (NYSE: SVN) and China Lodging Group (Nasdaq: HTHT), 2 of the nation’s biggest budget hotel chain operators.
News Digest: November 8 报摘： 2012年11月8日
The following press releases and media reports about Chinese companies were carried on November 8. To view a full article or story, click on the link next to the headline.
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- US Trade Panel Approves 5-Year Duties on China Solar Products (English article)
- Sohu’s (Nasdaq: SOHU) Sogou to Go Public As Soon as Next Year – Source (Chinese article)
- China Mobile (HKEx: 941) Launches Independent Fixed-Line Broadband Services (English article)
- 7 Days Group (NYSE: SVN) Announces Unaudited 2012 Q3 Financial Results (PRNewswire)
- Microsoft (Nasdaq: MSFT) to Exclude China From MSN Messenger Phase-Out Next Year (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Shanghai Street View: Revolutionizing Breakfast 沪经动向：早餐革新
Shanghai’s historical place as a mixing point between east and west has burnished the city’s reputation as a hub of revolution and experimentation, which is appearing now on the breakfast table as a leading local food group tries to sell Shanghainese on western-style breakfast cereal. Shanghai watchers will know of course that I’m talking about local food superstar Bright Food Group, which has just closed its purchase of a controlling stake of British breakfast cereal giant Weetabix for more than $1 billion.
Shanda Seeks Stability in New President 盛大集团任命新总裁，求稳定
If ever there was an Internet company that seems full of lost potential, it would be online entertainment firm Shanda Group, whose temperamental founder Chen Tianqiao is both one of the company’s greatest assets but also its greatest liabilities. After years of storminess that have left Shanda as a company rich in assets but poor in performance, Chen finally seems to want to give his firm a better chance at success with the naming of a new president in the form of a Taiwanese investment banker named Robert Chiu. (Chinese article)
Walmart Overhauls Yihaodian 沃尔玛整合一号店管理层
There are a few interesting news bits on the e-commerce front, led by word that Walmart (NYSE: WMT) is busy overhauling the management at its newly acquired Yihaodian online store, in what looks like a questionable move that could set the company up for failure. Meantime, media are also reporting that the e-commerce arm of Tencent (HKEx: 700) is launching a direct assault on Jingdong Mall, in the latest chapter of China’s never-ending online price wars.
