After a brief quiet spell, e-commerce is suddenly splashing back into the headlines on several fronts, with big news coming from the sector’s top 3 players, Alibaba, Jingdong Mall and Suning.com (Shenzhen: 002024), as each chases new business. Alibaba leads off the headlines with word that it’s preparing to launch a major new promotion on its popular TMall platform; while Jingdong is getting ready to launch a major overseas foray; and last but perhaps most interesting is Suning.com, which is chasing a new acquisition.
News Digest: October 18 报摘： 2012年10月18日
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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- White House Review Finds No Evidence of Spying By Huawei – Sources (English article)
- ZTE (HKEx: 763) Executives to Take 50 Pct Pay Cut (English article)
- Suning.com (Shenzhen: 002024) in Final Talks to Buy Masa Maso – Source (English article)
- Baidu (Nasdaq: BIDU) Establishes Location Based Services (LBS) Division (English article)
- Xiaomi Testing TV Set-Top Box – Sources (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Jingdong’s Courrier Wars: More E-Commerce Chaos 申通封杀京东商城
I’ve been trying to ignore a noisy war of words developing between e-commerce giant Jingdong Mall and one of its key couriers, but I’m finally surrendering and writing about it because it’s a relatively slow news day and also I haven’t written for a while about China’s chaotic e-commerce space. This particular issue is part of what looks like a broader growing discord between Jingdong, which also goes by the name 360Buy, and many of the courier companies that deliver the millions of goods that consumers buy online. Such discord is just as much a sign of the chaos that now plagues China’s e-commerce space as it is of the rampant competition that has pushed most major players deeply into the red.
Shanghai Street View: Cleaning Slippery Scalpels 沪经动向：清理医疗腐败
Shanghai is known for its ability to tackle tough financial issues, and so I initially wasn’t surprised to read a recent report on its apparent success at fighting corruption in hospitals. This problem is one that few foreigners ever experience and many may be completely unaware of, even as the newspapers with reports of corrupt government officials who accept cash-filled red envelopes and other lavish gifts for greasing the wheels of China’s huge bureaucracy. It turns out the issue at hospitals in Shanghai and around China is similar, only it’s scalpels that are being greased and people’s lives that are at stake if their doctors don’t have sufficient “incentive” to do a good job.
Baidu Turns Up Anti-Piarcy Tune 百度展开反盗版行动
Internet search leader Baidu (Nasdaq: BIDU) made plenty of noise last year when it announced a series of landmark licensing agreements with major Hollywood music labels, trumpeting the move as part of its drive to wean itself from the trading of pirated material on its platforms. But while it tooted its horn over the deals with Universal, Warner Music (NYSE: WMG) and Sony Music (previous post), it also quietly continued to operate its controversial music swapping platform that was the source of much of the earlier criticism. Now in an interesting move, Baidu is being much more low-keye in what looks like its attempt to quietly de-emphasize and perhaps eventually phase out the controversial music swapping service.
News Digest: October 17 报摘： 2012年10月17日
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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- Baidu (Nasdaq: BIDU) Integrates MP3 Search with Baidu Music (English article)
- JA Solar (Nasdaq: JASO) Receives Nasdaq De-Listing Notice (Globe Newswire)
- Courier Shentong Refuses Some Deliveries From Jingdong Mall (Chinese article)
- Under-Fire ZTE (HKEx: 763) Sells Surveillance Systems Subsidiary (English article)
- China Mobile (HKEx: 941) Says 9 Vendors Win Contracts in TD-LTE Tender (Chinese article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
Sinopec’s China Gas Bid Flames Out 中石化放弃敌意收购中国燃气
One of the more entertaining and strange cases of hostile M&A by a big state-run firm has quietly flamed out, with the announcement by oil major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP) that it’s dropping an unsolicited bid for piped gas distributor China Gas (HKEx: 384). (company announcement; English article) I’ll admit that I’m not surprised the story has ended this way, even if I’m just a tad disappointed that we didn’t see just a few more fireworks in what was otherwise a colorful story that seemed to involve plenty of bumbling and indecision from Sinopec. I will also add that I don’t have much sympathy for the speculators who will probably lose money after buying big stakes in China Gas on the hopes that Sinopec would raise its original bid for the company made back last December.
4G: More Positive Signals 中国正在加快脚步迈向4G网络
More positive signals are emerging on China’s long march to 4G, with both the telecoms regulator and embattled networking equipment provider ZTE (HKEx: 763; Shenzhen: 000063) providing the latest signs that China could award 4G licenses much sooner than many previously thought. These new signals seem to be the latest in an accelerating trend, as China’s slow-moving telecoms regulator finally responds to pressure from industry heavyweight China Mobile (HKEx: 941; NYSE: CHL) to award 4G licenses sooner rather than later. Perhaps more importantly, the regulator could finally be realizing that its constant lateness in awarding new technology licenses is putting China’s 3 telcos at a distinct disadvantage to their global rivals, forcing the trio of China Mobile, China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA) to constantly play catch-up to their more aggressive peers around the world.
IPOs: New Signs of Life in China, NY 上市：纽约、中国上市新迹象
News of 2 interesting new IPOs for Chinese companies, one in Shanghai and the other in New York, is an encouraging sign that spring may finally coming for a market still suffering through a long winter that has dragged on for more than a year. From the New York end, a social media website called YY has filed with the US securities regulator for an offering of up to $100 million, in what would become only the second major US listing for a Chinese company this year. (English article; Chinese article) Meantime, Southern Publishing has also filed with the Chinese securities regulator for an IPO, providing an interesting choice for media investors looking to tap into the company’s ties with one of China’s most ground-breaking media groups. (English article; Chinese article)
News Digest: October 16 报摘： 2012年10月16日
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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- Sinopec (HKEx: 386), ENN drop $2.2 bln offer for China Gas (HKEx: 384) (English article)
- China’s YY Files For New York IPO For Its Voice And Video Platform (English article)
- China to Allocate 2.6GHz, 190MHz Spectrum for TD-LTE (English article)
- Pharmaron, AstraZeneca (London: AZN) Form Strategic Drug Discovery Tie-Up (Businesswire)
- Southern Publishing Enters Pre-examination Period for China IPO (English article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
ZTE Slammed, New Oriental Exonerated 中兴通讯噩耗不断 新东方洗脱嫌疑
There’s bad news and good news coming from 2 Chinese sector leaders, with embattled telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) leading the downbeat headlines while education services specialist New Oriental (NYSE: EDU) brings some much needed relief to beaten-down US-listed Chinese stocks. The bad news for ZTE never seems to end, and now we’re starting to see the impact of all the negative developments on this former high-flyer which has just announced it will post a massive loss in the third quarter. Meantime, New Oriental has quietly issued its own announcement implying an investigation by the US securities regulator into some of its accounting practices has cleared it of any wrongdoing, in what would be welcome news for a sector of US-listed Chinese firms that has been dogged by an accounting credibility crisis for more than a year.
