The headlines are filled this morning with chatter on the latest news that the European Union is launching an anti-dumping probe into Chinese solar panel makers, following a similar investigation by the US that is likely to result in punitive tariffs by the end of this year. In addition to news of the probe itself, most of the major Chinese panel makers have issued their own statements protesting the move, and Beijing has also expressed regret over the decision. Rather than always turning to these predictable displays of outrage and disappointment each time they receive a setback in this year-long dispute, the Chinese players might consider trying a more conciliatory approach if they really want to avoid a trade war over an industry that everyone agrees will be critical to the development of long-term sustainable energy sources.
Japan Automakers Hit New Roadblock 日本汽车制造商遇新障碍
Just as they were recovering from the massive earthquake in Japan more than a year ago, Japanese automakers have hit a new obstacle in China that could once again put the brakes on their growth, though this time the problem is diplomatic rather than a natural disaster. China watchers will know the problem I’m referencing is the recent escalation of tensions between China and Japan over a small group of uninhabited islands, the Diaoyu to the Chinese and Senkaku to Japanese, that both countries claim as their own. This latest flare-up highlights a unique risk for Japanese companies doing business in China, where a deep-seated mistrust lingers among many Chinese due to Japanese aggression during World War II.
News Digest: September 7, 2012 报摘： 2012年9月7日
The following press releases and media reports about Chinese companies were carried on September 7. To view a full article or story, click on the link next to the headline.
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- China Solar Panel Imports Investigated by European Union (English article)
- China’s Huawei Negotiating Conditions to Join US Hearing (English article)
- NetEase (Nasdaq: NTES) Launches E-Commerce Search Engine (English article)
- Focus Media (Nasdaq: FMCN) Privatization Hits Obstacle With Request for Higher Price (Chinese article)
- China Jo-Jo Drugstores (Nasdaq: CJJD) Receives Delisting Notice from Nasdaq (Businesswire)
Shanghai Street View: Cleaning Up the Bund 沪经动向：清理外滩
Most Shanghai residents like myself have a love-hate relationship with the hoards of illegal hawkers that clog the city’s streets and sidewalks. On the one hand such street vendors can be a godsend on a hot summer day when they offer cold drinks, or on a brisk fall evening when they serve up bags of roasted chestnuts fresh from the wok. But much more often they’re simply pests, creating clutter, noise and bottlenecks on many of the city’s busiest sidewalks that are already far too narrow.
iPhone 5 Launch: Another China Snub? iPhone 5：中国还是不能成为第一批上市国家？
With the buzz rapidly rising about the upcoming launch of the newest iPhone, being dubbed the iPhone 5, an equally low-key buzz is starting to build over whether Apple (Nasdaq: AAPL) will include China on its global launch map for the product or snub the country once again. On a conceptual level, the question should be a no-brainer for Apple, due to the huge importance of the China market to its business. But for other reasons which I’ll explain shortly, Chinese media are already predicting that Apple will once again snub China with the latest high-profile launch, which is expected in the next 2 weeks. (Chinese article)
Regulator Probes Into Price Wars 发改委调查电商价格战
The electronics price wars of 2 weeks ago are already starting to seem like a distant memory to consumers, but 3 companies at the heart of the wars are still feeling a hangover effect as China’s powerful state planner investigates them for fraud in the matter. A steady stream of headlines this week on the National Development and Reform Commission’s (NDRC) investigation into Jingdong Mall, Suning (Shenzhen: 002024) and Gome (HKEx: 493) is reminiscent of the nonstop headlines that flowed from the original price wars themselves 2 weeks ago. This time, however, the tone is decidedly negative and will undoubtedly hurt all 3 companies in the short term as consumers punish the trio for their deceptive practices.
News Digest: September 6, 2012 报摘： 2012年9月6日
The following press releases and media reports about Chinese companies were carried on September 6. To view a full article or story, click on the link next to the headline.
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- Lenovo (HKEx: 992) to Buy Brazilian Electronics Company CCE (HKEx announcement)
- State Planner: Consumer Fraud Involved in Online Price Wars (Chinese article)
- Qihoo (NYSE: QIHU) Hires Ex-Fetion Engineers – Reports (English article)
- CNOOC (HKEx: 883) Asks For US Security Review of Nexen (Toronto: NXY) Acquisition (English article)
- Unicom (HKEx: 762) Preparing for iPhone 5, Unlikely to Debut With Global Launch (Chinese article)
Venture Funding Picks Up at Internet’s Edge 风险投资回归对互联网边缘领域
The past year will go down in history books as one of the worst ever for overseas listed China stocks, which have suffered from the triple blow of an economic slowdown at home, compounded by an Internet bubble and a confidence crisis caused by a series of accounting scandals. At the same time, many of the entrepreneurial start-up companies that often go on to list overseas have also quietly suffered, as the venture capitalists who supply much of their new funding have also become more cautious for similar reasons. I pointed to some signs last week that indicated the crisis for overseas-listed stocks is finally starting to subside (previous post), and now we’re also seeing some positive signs for the start-ups with a recent series of new funding announcements.
Lenovo, SMIC in China-Style Divorces 联想和中芯国际同遭“中国式离婚”
Their relatively low costs and access to the fast-growing China market often make major Chinese tech firms look like attractive business partners to their foreign peers. But big hopes for new partnerships often end in disappointment, resulting in the kinds of divorce we are now witnessing in the new slow-motion break-ups between PC giant Lenovo (HKEx: 992) and Japan’s NEC (Tokyo: 6701); and between global contract chip-making leader TSMC (Taipei: 2330; NYSE: TSM) and Chinese counterpart SMIC (HKEx: 981; NYSE: SMI). In both cases, the foreign companies have just started selling down previous strategic stakes in their Chinese partners, in what’s likely to end in an outright divorce for each pairing.
China Start-Up Patron Attacks Short Sellers 李开复炮轰做空机构Citron
An entertaining war of words has broken out this week between one of the most outspoken short sellers of US-listed Chinese stocks over the last year and an China-based Internet veteran whose company is helping to fund many similar companies to the ones under attack. Followers of China’s Internet will know that the short seller I’m referring to is a California-based company called Citron, whose most recent attacks have targeted Internet security software maker Qihoo 360 (NYSE: QIHU) by questioning the company’s user data. The Internet veteran, meantime, is Lee Kai-Fu, a former top executive at Microsoft (Nasdaq: MSFT) and Google (Nasdaq: GOOG) who left Google in 2009 to start his own company called Innovation Works to fund Chinese high-tech start-ups. (English article; Chinese article)
News Digest: September 5, 2012 报摘： 2012年9月5日
The following press releases and media reports about Chinese companies were carried on September 5. To view a full article or story, click on the link next to the headline.
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- Japan’s NEC (Tokyo: 6701) to Sell Lenovo (HKEx: 992) Stake in $235 Mln Deal (English article)
- Sharp New Exchanges in China Short Seller Showdown (English article)
- SEC Charges China Sky One (Nasdaq OTC: CSKI) With Securities Fraud (English article)
- Wanda Group Completes Acquisition of AMC Entertainment Holdings (Businesswire)
- News Report Exposes Xiaomi Re-Selling Used Phones as New (Chinese article)
