The fight for survival among the world’s embattled solar panel makers is starting to look more like a battle of the dead, with word that bankrupt US player Solyndra is suing 3 of its biggest Chinese rivals over allegations of running an illegal cartel. (English article) Some of you might be saying: “Wait a minute, doesn’t Solyndra have better things to do than to be filing lawsuits against rivals who are also flirting with bankruptcy?” If that’s the question, then the answer appears to be “no”. Perhaps the failed Solyndra is still seeking some final respect, and also perhaps some money through a quick settlement of this lawsuit to repay a long list of creditors that includes the US government.
Canada Delays CNOOC-Nexen Decision 加拿大推延中海油收购尼克森决议
An increasingly xenophobic West will face an important test in the next 30 days as Canada weighs whether to approve the $15 billion purchase of local oil exploration giant Nexen (Toronto: NXY) by Chinese rival CNOOC (HKEx: 883; NYSE: CEO). The deal could well become an important indicator of the West’s willingness to accept China as an equal partner in the global economy, and its approval would send a positive signal after a more controversial decision last week that saw two of China’s leading technology firms locked out of the US telecoms equipment market due to security concerns.
News Digest: October 13-15 报摘： 2012年10月13-15日
The following press releases and media reports about Chinese companies were carried on October 13-15. To view a full article or story, click on the link next to the headline.
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- Canada’s Harper Says Must Weigh National Security in China Ties (English article)
- ZTE (HKEx: 763) Announces Preliminary Results for 9 Months Ending Sept 30 (HKEx announcement)
- China’s Top Two Shippers Join Forces in Domestic Container Trade (English article)
- China Lodging Group (Nasdaq: HTHT) Announces Preliminary Q3 Operating Results (Globe Newswire)
- Bankrupt Solyndra Sues Suntech (NYSE: STP) Over Antitrust Claims (English article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
China’s Slow Bank Privatization Continues 中国继续缓慢推进四大行私有化
I’ve often suggested the controversial idea that Beijing should consider re-privatizing its big-four state-owned banks, as all of them still act largely like socialist-era policy lenders rather than the commercial-focused banks they were supposed to become after making IPOs starting in the mid-2000s. So it doesn’t come as much of a surprise to me to learn that the central government, which is already the dominant shareholder for each of the banks, has been quietly buying back their shares on the open market to support their stocks as they come under pressure due to a looming bad-loan crisis.
Lenovo’s PC Crown: Tough to Defend 联想个人电脑皇冠：强力捍卫
The headlines today are filled with reports trumpeting Lenovo’s official ascension to the top of the global PC rankings, as the company officially passed longtime champion Hewlett-Packard (NYSE: HPQ) to become the world leading computer seller. So now the next question is: What’s does it mean? Unfortunately, the answer could be “Not much,” as PCs get set to embark on a long-term decline that will ultimate see them go the same way as record players and VCRs as they get replaced by more nimble mobile devices. Over the shorter term, Lenovo will also have to show it has the power to stay at the top before it can claim true bragging rights as the world’s biggest PC seller — a challenge that could be tough for reasons I’ll explain shortly.
Hasbro Tests Out China Toy Box 孩之宝牵手奥飞动漫
Just a year after leading global toy maker Mattel (NYSE: MAT) decided it didn’t want to play in China, the second largest US toy company Hasbro (Nasdaq: HAS) is taking a shot at the market with a new joint venture that could stand a better chance of success. Unlike Mattel, which shuttered its flashy House of Barbie in March last year, Hasbro is taking a more behind-the-scenes approach to the market by developing toys for the China market rather than making any major retail initiatives. While there’s certainly no guarantee of success in this tough market, this kind of back-end approach seems a bit more suitable for a less-developed market like China where consumer tastes and spending patterns are a bit different from those in more mature markets like the US and Europe.
News Digest: October 12 报摘： 2012年10月12日
The following press releases and media reports about Chinese companies were carried on October 12. To view a full article or story, click on the link next to the headline.
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- Lenovo (HKEx: 992) Knocks HP (NYSE: HPQ) From Top of Global PC Market: Gartner (English article)
- Hasbro (Nasdaq: HAS) and Alpha Animation Announce Strategic Partnership for China (Businesswire)
- US Prepares to Launch 2nd Round of Investigations Into Huawei, ZTE (HKEx: 763) (Chinese article)
- Suntech (NYSE: STP) Responds to Final US Dept of Commerce Determination (PRNewswire)
- Ex-Central Banker Says Canada Should Approve CNOOC (HKEX: 883) Bid for Nexen (English article)
Shanghai Street View: Memorializing the Party 沪经动向：纪念中共
Beijing and Xi’an may have the edge over other cities as treasure troves of Chinese history, but Shanghai is the clear leader when it comes to the history of the Communist Party. The CCP was founded here in Shanghai in 1921, which was chronicled in the star-studded but disjointed film “Beginning of the Great Revival”, released last year on the Party’s 90th anniversary. The city’s status as an intellectual hotbed in the early 20th century made it a natural home for the Party in its younger days, even if the going was often difficult as CCP leaders and members played a game of cat-and-mouse to avoid being wiped out by a ruling Nationalist government later intent on their extinction.
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VIP Shop Soars Past Dangdang 唯品会市值超当当网
After an IPO earlier this year that was a major flop, discount e-commerce company Vipshop‘s (NYSE: VIPS) have quietly jumped in the last few months despite many obstacle it has faced this year. This otherwise low-key company, which has been out of the headlines since its disastrous IPO in March, caught my attention after I read a report saying its market cap has passed that of Dangdang (NYSE: DANG), previously China’s largest publicly listed e-commerce firm. (Chinese article)
China Turns Up Short Seller Counter Attack 中国回击做空投资者
Chinese Internet executives are providing steady entertainment in their recent counter-offensive against short sellers who have attacked their stocks repeatedly for more than a year, with industry elder statesman Lee Kai-Fu now preparing to sue one short-seller over defamation. When the history books are written, Lee, a former high-level executive at both Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG), could well emerge as the white knight that ultimately rescued battered Chinese tech companies.
News Digest: October 11 报摘： 2012年10月11日
The following press releases and media reports about Chinese companies were carried on October 11. To view a full article or story, click on the link next to the headline.
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- Lee Kai-Fu Says To Sue Citron And Its Founder Over Personal Attack (Chinese article)
- Yum (NYSE: YUM) Says Equipped To Navigate China’s “Ups And Downs” (English article)
- US Sets Final Duties on Chinese Solar Panels (English article)
- Beijing Unicom (HKEx: 762) Requires 3G Bundling with All 2M+ Broadband Plans (English article)
- Baidu (Nasdaq: BIDU) Names Charm Click (Nasdaq: CHRM) as European SEM Agency (PRNewswire)
