The latest auto news bits show that domestic nameplate Geely (HKEx: 175) continues to struggle with its plans to resuscitate its Volvo brand, while General Motors (NYSE: GM) is banking on rapid growth for low-end cars to consolidate its position as China’s market leader. Meantime, I’d be remiss not to mention the latest news coming from sputtering domestic automaker Chery, which has disclosed its controversial plan for a joint venture with luxury car maker Jaguar Land Rover has just been approved by the key state regulator.
Sohu Video, Qunar in IPO Marches 搜狐视频、去哪儿网加紧上市步伐
The latest news bits indicate the video sharing unit of web portal Sohu (Nasdaq: SOHU) and online travel services firm Qunar are both marching rapidly towards overseas IPOs, with both companies positioning themselves to move quickly if and when the current market freeze ever eases. Sohu has been saying for much of the last year that it wants to spin off its video unit into a stand-alone company for an eventual overseas listing, and now the company has formally separated the unit’s sales force into a separate entity. (Chinese article) Meantime, domestic media are also quoting a top executive of Qunar, which is backed by online search leader Baidu (Nasdaq: BIDU), as saying his company has passed industry leader Ctrip (Nasdaq: CTRP) in air ticket sales, in what sounds like a drive to raise the company’s profile in the run-up to its own IPO. (English article; Chinese article)
Microsoft Targets SOE Pirates 微软打击国有企业盗版
Despite Beijing’s repeated efforts to stamp out piracy, the problem remains a major one in China, with companies large and small, public and private still engaging in a practice that costs software makers billions of dollars in lost sales each year. The magnitude of the problem was on prominent display last week when reports emerged that Microsoft was seeking Beijing’s help to get four major companies, including the parent of PetroChina (HKEx: 857; Shanghai: 601857; NYSE: PTR), to stop using pirated copies of its popular Office software suite.
News Digest: September 22-24, 2012 报摘： 2012年9月22-24日
The following press releases and media reports about Chinese companies were carried on September 22-24. To view a full article or story, click on the link next to the headline.
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- Microsoft Asks PetroChina (HKEx: 857), Others to Stop Using Pirated Office – Sources (Chinese article)
- Qunar Monthly Air Ticketing Revenue Surpasses Ctrip (Nasdaq: CTRP) (English article)
- Volvo Cars Likely to Miss 2015 China Sales Goal: CEO (English article)
- Suntech (NYSE: STP) Receives Continued Listing Standards Notice from NYSE (PRNewswire)
- Panasonic (Tokyo: 6752) Details Damage to China Manufacturing Sites (Businesswire)
CNOOC’s Nexen Bid Clears One Hurdle, Faces Another 尼克森股东批准中海油收购 公众反对声音或加大
Oil exploration giant CNOOC’s (HKEx: 883) record-breaking bid for Canadian rival Nexen (Toronto: NXY) has cleared one hurdle with the Thursday approval of the deal by Nexen shareholders, even as a much bigger obstacle looms in the realm of public opinion where opposition appears to be building. Public opinion could be a major factor that ultimately decides the fate of this deal, which still needs approval from a Canadian administration that has said it will consider national sentiment before making its final decision.
Solar Companies “Right-Size” 太阳能企业“精简规模”
Traditional consolidation in industries suffering from overcapacity typically sees stronger companies merge and weaker ones close, resulting in a healthier, more sustainable sector where everyone is profitable. But such conventional “right sizing” is less common in China, where struggling companies in strategic industries are often kept alive through financial and other support from local governments that are highly reluctant to let those ventures simply fail or be purchased by outsiders. Such artificial support may save jobs, but it does nothing to solve the overcapacity problem that created the need for consolidation in the first place. That’s exactly the dilemma facing China’s struggling solar sector, which is now posting huge losses even though we’ve yet to see players close or merge despite a flurry of such activity in the West. In the absence of proper consolidation, Chinese companies appear to be taking the next-best logical step by shuttering idle capacity and implementing massive layoffs in a bid to stem their losses, according to one report. (English article)
China Internet: Money in Russia, Sex Toys 京东商城拟开拓俄罗斯市场 成人用品网站获大笔融资
I’ll close out this week with a couple of interesting Internet items, including one that has overheated e-commerce giant Jingdong Mall looking at expansion into Russia and the other that has a sex toy site getting a nice chunk of new funding. It seems China’s Internet and the big growth opportunities it offers aren’t just for kids! Let’s start with the Jingdong news, as that’s probably the more significant of the 2 developments since it involves the company’s first foray outside its home China market.
News Digest: September 21, 2012 报摘： 2012年9月21日
The following press releases and media reports about Chinese companies were carried on September 21. To view a full article or story, click on the link next to the headline.
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- Nexen (Toronto: NXY) Holders OK CNOOC (HKEx: 883) Bid as Public Concern Grows (English article)
- 360Buy to Launch Russian Website – Report (English article)
- Apple (Nasdaq: AAPL) Opens iOS 6 for Download, Mandarin Supports Included for Siri (Chinese article)
- China Telecom (HKEx: 762) Adds 2.63 Mln 3G Users in August, Bringing Total to 56.44 Mln (Chinese article)
- Adult E-commerce Firm Ailv Lands 300 Mln Yuan Funding (English article)
Citi Heats Up China Credit Cards 花旗将引爆中国信用卡市场
China’s credit card market could be heading for a major explosion soon, following the official entry of the first foreign card issuer to the market in the form of global banking giant Citibank (NYSE: C). Foreign media have given relatively little coverage to this event, but in my view the development is quite significant for reasons that I’ll explain shortly that could ultimately lead to the kind of consumer credit bust that previously wreaked havoc on the banking sectors in Taiwan and South Korea.
Jaguar Revs Up PR Drive for Chery JV 捷豹路虎为争取合资企业获批加大公关攻势
Six months after announcing their plans for a joint venture, fast-fading domestic car maker Chery and its high-end global peer Jaguar Land Rover are still anxiously awaiting approval for the tie-up from Chinese regulators who are taking their time making a decision. But the pair are hardly sitting idle as they wait for the verdict, and Jaguar in particular has launched a massive PR offensive to try to convince Beijing it is serious about China by showing its commitment to the market. That campaign has officially moved into the fast lane, with Jaguar officially launching a “Let’s Go China!” tour that will take its high-end cars and executives on a national trip to some of the nation’s biggest cities.
News Digest: September 20, 2012 报摘： 2012年9月20日
The following press releases and media reports about Chinese companies were carried on September 20. To view a full article or story, click on the link next to the headline.
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- China Releases Cloud Computing 12th 5-Year Plan (English article)
- MasterCard (NYSE: MA) Debuts First Single-branded Cards in China with Citibank (Businesswire)
- Ctrip (Nasdaq: CTRP) Prices Offering of $160 Mln Convertible Senior Notes (PRNewswire)
- Nexen (Toronto: NXY) Takeover by CNOOC (HKEx: 883) Faces Political Test in Canada (English article)
- ZTE (HKEx: 763) to Release First Phone Based on Firefox OS in Q1 Next Year (Chinese article)
