It seems that short sellers aren’t the only ones trying to make some quick money from the confidence crisis plaguing US-listed Chinese stocks, with word that state-owned lender China Development Bank (CDB) is also trying to capitalize on the situation by providing loans to help some companies privatize. If true, the reports would just mark the latest twist in a saga that started more than a year ago when short sellers began to expose a series of accounting scandals at US-listed Chinese firms, sparking a sell-off in their shares. CDB’s move may also auger the start of a bigger wave of privatizations that could see some big US- and Hong Kong-listed companies go private as well.
More Top Execs Leave NetEase, Jingdong 京东和网易高管离职
July is becoming the season for high-level resignations at Chinese Internet firms, with media reporting the new departures of top officials at Jingdong Mall, one of China’s top e-commerce sites, as well as the web portal unit of online game firm NetEase (Nasdaq: NTES). Those departures, if correct, would follow the similar resignation earlier this week of the chief operating officer at Tudou (Nasdaq: TUDO), China’s second largest video sharing site, which is currently merging with industry leader Youku (NYSE: YOKU). (previous post)
Ming Yang in Flurry of Headlines 明阳风电的一系列头条新闻
Wind power equipment maker Ming Yang (NYSE: MY) has become a tiny company over the past year as chilly sentiment towards new energy firms has caused its shares to plummet; but that hasn’t stopped it from making a steady stream of headlines these past 2 weeks for what look like relatively large deals. This series of deals seems a bit strange for a player of that size, and the only explanation I can see is that observers believe that Ming Yang, with access to funds via its Chinese government links, could become a potential consolidator and driver of new growth for the struggling global wind power industry.
News Digest: July 12, 2012 报摘： 2012年7月12日
The following press releases and media reports about Chinese companies were carried on July 12. To view a full article or story, click on the link next to the headline.
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- China Development Bank Providing $1 Bln to Help US-Listed Firms Privatize (Chinese article)
- 360Buy COO Resigns – Source (English article)
- Ming Yang (NYSE: MY), Huaneng Renewables (HKEx: 958) to Form Wind Power JV (PRNewswire
- New Oriental (NYSE: EDU) Further Strengthens Corporate Structure (PRNewswire)
- Dangdang (NYSE: DANG) Losses Grow, Analysts See No Profits Before 2014 (Chinese article)
Price Wars Shake Up Travel Sites 价格战或促在线旅游业洗牌
E-commerce leaders like Jingdong Mall, Suning (Shenzhen: 002024) and Alibaba are taking their bloody price wars to the travel arena, where a new round of cutthroat competition threatens to infect this more established industry dominated by the likes of Ctrip (Nasdaq: CTRP) and eLong (Nasdaq: LONG). This new round of price wars could also potentially undermine up-and-comer Qunar, which just last year received a $300 million investment from search leader Baidu (Nasdaq: BIDU) but could need even more cash if the sector gets plunged into the same prolonged cutthroat competition now gripping the e-commerce sector.
Huawei: Manufacturer or Telco? 华为要做电信运营商？
Chinese telecoms equipment giant Huawei is trying all kinds of tricks to jump-start its flagging growth in the face of a global slowdown and political obstacles in the West, but its latest move in the Middle East that will see it become a network operator looks a bit desperate to me, and also quite risky. The latest deal comes against a backdrop of slowing growth that has seen Huawei’s revenue increase less than 20 percent last year, ending years of much stronger gains.
Youku-Tudou: More Trouble As COO Resigns 优酷—土豆：COO辞职，麻烦更多
News Digest: July 11, 2012 报摘： 2012年7月11日
The following press releases and media reports about Chinese companies were carried on July 11. To view a full article or story, click on the link next to the headline.
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- Apple’s (Nasdaq: AAPL) New iPad Arrives in China on Friday, July 20 (Businesswire)
- Tudou (Nasdaq: TUDO) Says COO Resigns, Youku (NYSE: YOKU) Merger Going Smoothly (English article)
- Huawei Eyes Management Deals with Etisalat, Saudi Telecom (English article)
- Trina Solar (NYSE: TSL) Expands into Canada (PRNewswire)
- Ctrip (Nasdaq: CTRP) Chairman: Price Wars Will Speed Up Industry Reshuffle (Chinese article)
Denny’s Takes a Bite of China 丹尼餐厅进军中国市场
I was pleasantly surprised today to read that Denny’s (Nasdaq: DENN), one of my favorite US diner chains, is testing the Asia market with plans to open restaurants in China, part of a broader move that is seeing mid-sized restaurant chains pile into the market in a bid to copy the success of top names like KFC (NYSE: YUM) and McDonalds (NYSE: MCD). I also like the fact that Denny’s, known for its 24-hour breakfast menu, is taking a go-slow approach to China, with plans to open a modest 50 stores in the country over the next 15 years through a joint venture with local partner Great China International Group. (company announcement)
China Powers Up Aviation Drive With Hawker Bid 中国航空业迈向国际化
The recent expansion by Chinese aviation firms into international airspace is powering ahead with word of 2 more global deals, including a new aircraft parts joint venture involving Air China (HKEx: 753; Shanghai: 601111) and an even more intriguing bid for bankrupt business jet maker Hawker Beechcraft by a Chinese buyer. Both of these deals are just the latest in a series of outward moves by China’s aviation industry, a largely inwardly looking group which I suspect has come under recent pressure from Beijing to become more global.
Tencent-Activision: Finally a Good Match 腾讯竞购动视暴雪
Just a week after leading Internet company Tencent (HKEx: 700) announced a strategic tie-up with top US game developer Activision Blizzard (Nasdaq: ATVI), we’re hearing that this pairing could become a true marriage as Activision’s debt-heavy parent looks to sell the company. After several previous M&A attempts by Tencent that didn’t look too smart to me, I can honestly say that this latest pursuit would be one that I like, and I’ll explain my reasons in a moment.
