A week after I commended home appliance maker Haier (HKEx: 1169) for a job well done with its recent purchase of a New Zealand company, I’m sorry to say I can’t give the same positive assessment for more problematic overseas investments by the parent of Hong Kong-listed Geely (HKEx: 175). The latest news has seen one of Geely’s biggest overseas investments, UK taxi maker Manganese Bronze, file for bankruptcy, even as Geely’s bigger Volvo car unit appears to be heading down a similar road.
iPad Mini: Another China Snub; iPad Mini首发再次不含中国大陆
I’m probably beginning to sound a bit redundant by writing about Apple’s (Nasdaq: APPL) latest China snub, but it does seem worth noting that yet another major new product from the world’s biggest tech company won’t be coming to Chinese consumers anytime soon. Meantime, Chinese media are noting that Microsoft (Nasdaq: MSFT) is seeking to exploit this latest Apple snub by selecting China as one of the launch markets for its new tablet PC. Unfortunately for Microsoft, I don’t think Chinese consumers will really care very much.
CNOOC-Nexen: Waiting for Signs From Beijing 中海油收购尼克森：等待中国政府的信号
Oil major CNOOC (HKEx: 883; NYSE: CEO) has just released its latest quarter results that look generally upbeat, but media have predictably focused instead on the company’s pending $15 billion bid for Nexen (Toronto: NXY) which is still awaiting approval by the Canadian government. Since everyone else is guessing on whether Ottawa will ultimately approve this deal, I’ll go ahead and add my name to the list and predict the deal will get approved when Canada announces its decision next month. But there’s one caveat to my prediction, namely that Beijing will need to give some kind of signal — the more openly, the better — that it is willing to give Canadian companies similar access to the Chinese market where state-run firms currently dominate the resources sector.
News Digest: October 25 报摘： 2012年10月25日
The following press releases and media reports about Chinese companies were carried on October 25. To view a full article or story, click on the link next to the headline.
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- Huawei Says US ‘Distorted’ Concern, Offers Australia Codes (English article)
- Apple (Nasdaq: AAPL) Launches iPad Mini, China Launch Unknown (English article)
- CNOOC (HKEx: 883) Announces Q3 Results (HKEx announcement)
- Investors Seek to Sell 24Quan to Gaopeng – Source (Chinese article)
- Lenovo (HKEx: 992) to Sell Smartphones in Developing Markets (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Shanghai Street View: Tuning Up Traffic 沪经动向：调整改善交通
This edition of Shanghai Street View takes a real turn onto the streets of Shanghai, where the local government is on a drive to clean up the unruly traffic in China’s biggest city. Talk to any foreigner living in Shanghai, and he will gush excitedly about the rich history, cultural life and abundance of entertainment options that the city has to offer. But when the subject turns to the city’s darker sides, traffic inevitably comes up as one of the biggest complaints for most Shanghai expatriates. Nearly everyone has tales to tell of how they were nearly run over by a bus charging through a red light, or of being stuck for an hour in a traffic jam on one of the city’s elevated expressways.
HNA Spreads Wings to France 海航收购法国蓝鹰航空48%股权
Shi, Beijing Battle for Heart of Suntech 尚德电力为获政府救援或失去施正荣
Solar panel maker LDK (NYSE: LDK) started its long march to a takeover by the state with a major stake sale this week, but the equally cash-starved Suntech (NYSE: STP) looks like it may put up a bigger fight to maintain its independence. What’s happening at Suntech comes down to a single word: Pride. The latest twist at Suntech also has broader implications, as the kind of pride we’re seeing from founder Shi Zhengrong could foreshadow similar resistance we’re likely to see at many of the nation’s other solar panel makers.
News Digest: October 24 报摘： 2012年10月24日
The following press releases and media reports about Chinese companies were carried on October 24. To view a full article or story, click on the link next to the headline.
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- Nexen (Toronto: NXY) Sale Said to Turn on China Backing Canada Deals (English article)
- Suntech (NYSE: STP) Refuses Conditions for Government Assistance (Chinese article)
- NetEase (Nasdaq: NTES) Portal Editor-in-Chief Joins Baidu (Nasdaq: BIDU) – Source (English article)
- TAL Education (NYSE: XRS) Announces Fiscal Q2 Results, Declares Dividend (PRNewswire)
- Ironwood, AstraZeneca (London: AZN) Announce Linaclotide Collaboration for China (Businesswire)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Suning Links With Vancl, 24Quan Shutters 苏宁易购联手凡客诚品 24券暂时停业
New signs of consolidation are appearing in the overheated in e-commerce and group buying spaces, with Suning.com (Shenzhen: 002024) again emerging as a potential major consolidator in e-commerce as a mid-sized group buying site named 24Quan closes up shop. The e-commerce news is easily the more interesting of these 2 bits, as China’s group buying sector has largely run out of cash by now and most players are tottering on the brink of insolvency. By comparison, the e-commerce field is backed by a big number of cash-rich companies like Suning, Alibaba and Amazon (Nasdaq: AMZN), which have indicated they are prepared to lose big money for a long time to defend and build their positions in a country likely to become the world’s biggest e-commerce market in the next 5-10 years.
Cable Consolidation Gets Money, Licenses 中国有线电视行业整合扑朔迷离
A recent flurry of new reports is hinting that a state-led consolidation of China’s fragmented cable TV industry is moving ahead, but also that the campaign may be meeting with some resistance from provincial governments reluctant to cede assets to a Beijing-based national operator. Despite that resistance, I suspect that this consolidation will probably succeed in the end since Beijing really wants it to happen. But the new operator may have to cede a lot of autonomy to its various provincial level units, meaning it could have difficulty competing with China’s 3 major telcos which have stronger central coordination.
LDK Joins State-Led Solar Bail-Out 江西赛维加入政府主导的救助行列
The nascent state-led bailout of China’s struggling solar industry has taken another step forward with word that LDK (NYSE: LDK) has just sold a big chunk of itself to a partly state-owned consortium for enough cash to perhaps fund its operations for another month or 2. This new rescue package values LDK at just $140 million, which is probably still too high a figure for one of China’s weakest solar panel makers in an industry where everyone losing big money due to a huge supply glut.
