We’re seeing the latest signs of distress from the beleaguered group buying space, with word that 55tuan, one of the industry’s biggest players, is failing to pay some of its merchants. This kind of news isn’t really new anymore, as similar talk that many of the country’s money-losing group buying sites are rapidly running out of cash has been circulating for months now. This latest distress sign just shows that the end is fast approaching for many of these companies, though I’ll admit I’m a bit surprised that we haven’t seen any bigger failures yet.
News Digest: September 12, 2012 报摘： 2012年9月12日
The following press releases and media reports about Chinese companies were carried on September 12. To view a full article or story, click on the link next to the headline.
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- 55tuan Slides Into Delusion As Funding Noose Tightens on Group Buying (Chinese article)
- Telecoms Regulator Criticizes Online Price Wars Without Naming Names (Chinese article)
- 360Buy to Launch Browser Game Co-Operation Platform – Source (English article)
- No Delivery Business, Luxury Goods in Dangdang (NYSE: DANG) Future -CEO (Chinese article)
- China Mobile (HKEx: 941) Confirms Order for First Batch of 4G Phones – Source (Chinese article)
China Welcomes More 2nd-Tier Financiers 中国欢迎更多二级金融机构
What I like to call the “second wave” of overseas financial institutions coming to China is picking up momentum, with announcements of new expansions in the market by relatively unknown players CIT Group (NYSE: CIT) and MoneyGram (NYSE: MGI). I’ll discuss what each of these companies does shortly, as neither enjoys the widespread recognition of much bigger names like Citigroup (NYSE: C) and HSBC (HKEx: 5; London: HSBA) that have been active in China for more than a decade now despite making only limited inroads during that time.
China Mobile: 4G Near, iPhone Far 中国移动：4G接近，iPhone走远
Qihoo Adds “Like” to Search Offensive 360推“拇指计划” 继续向搜索业务发力
Security software specialist Qihoo 360 (NYSE: QIHU) is continuing its Internet search offensive by adding a new ratings feature to its product, leading me once again to applaud its innovative approach for this new initiative despite my broader doubts about this company. Media are reporting that Qihoo has added the equivalent of a “like” function to its search results similar to the one now on Facebook, which lets web surfers rate whether or not they find particular sites useful. (English article; Chinese article)
News Digest: September 11, 2012 报摘： 2012年9月11日
The following press releases and media reports about Chinese companies were carried on September 11. To view a full article or story, click on the link next to the headline.
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- China’s Haier (HKEx: 1169) Sounds Out Takeover of NZ’s F&P (NZ: FPA) Appliances (English Article)
- CIT (NYSE: CIT) Closes New 2.2 Billion Yuan Lending Facility in China (Businesswire)
- China to Issue 4G Licenses In About a Year – Regulator (Chinese article)
- Qihoo 360 (NYSE: QIHU) Integrates User Ratings with Search Rankings (English article)
- China Aug Vehicle Sales Up 8.3 Pct, Pickup Seen in Autumn (English article)
Alibaba in Anti-Piracy PR Blitz 阿里巴巴进行反盗版公关
E-commerce leader Alibaba has been on a quiet PR offensive for much of the last year, seeking to convince the US that its Taobao marketplaces aren’t havens for pirates whose sales of knock-off products cost legitimate brands billions of dollars in lost sales each year. That drive has reached a crescendo with the company’s highly trumpeted announcement of a new deal with Hollywood to fight the sale of pirated movies online. The deal will see Taobao and the Motion Picture Association of America (MPAA) work together to identify merchants that sell pirated movies over Taobao’s various e-commerce platforms and remove the pirated merchandise. (English article)
Suntech: Rats Fleeing A Sinking Ship? 尚德：船沉鼠先窜？
After managing to stay out of the news for a couple of weeks, scandal plagued solar panel maker Suntech (NYSE: STP) has bounced back into the headlines with the announcement of the departure of its chief commercial officer, who is leaving for “personal reasons.” (company announcement) I don’t want to sound too crass on this otherwise lovely Monday morning in Shanghai, but this departure looks a bit like the proverbial “rats jumping from a sinking ship” that we often see just before a company implodes.
Companies Join Short Seller Counter-Attack 中国企业对做空机构发起反攻
The credibility crisis plaguing US-listed Chinese firms took a twist last week when first a group of Internet leaders and then another group of company executives launched attacks on the short sellers who sparked the crisis last year. While many of the earliest short seller attacks were based on real issues related to dubious accounting practices, the Chinese groups last week argued the recent attacks that have prolonged the crisis are unfounded and little more than ploys to earn fast money.
News Digest: September 8-10, 2012 报摘： 2012年9月8-10日
The following press releases and media reports about Chinese companies were carried on September 8-10. To view a full article or story, click on the link next to the headline.
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- Insigma (Shanghai: 600797), Cisco (Nasdaq: CSCO) Establish Cloud JV, Plan Overseas IPO (English article)
- Suntech (NYSE: STP) Announces Departure of Chief Commercial Officer (CCO) (PRNewswire)
- Alibaba’s Taobao E-commerce Site Signs Deal With US Film Rep to Curb Piracy (English article)
- FedEx (NYSE: FDX), UPS (NYSE: UPS) Win Domestic Parcel Delivery Licenses (Chinese article)
- Xiaomi Sells Out Second Batch of 200,000 Mid-Range 1S Smartphones (English article)
China Gas: New Bid Coming from Sinopec? 中石化会提高收购中国燃气的价格吗？
I’ve been watching with fascination for much of the last year as oil refining major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP) makes a bizarre bid for China Gas (HKEx: 384), a natural gas pipeline operator that has made it clear it has no desire to be acquired. Despite seeing its $2.2 billion offer rejected last December and no formal talks or new offers since then, Sinopec has repeatedly extended the deadline for its bid, including the latest extension it has just disclosed through a filing with the Hong Kong Stock Exchange. (HKEx announcement) All this leads me to believe that Sinopec and bidding partner ENN Energy (HKEx: 2688) are preparing to raise their bid for China Gas, with a new offer possible as soon as the deal gets regulatory approval.
