The following press releases and media reports about Chinese companies were carried on July 4. To view a full article or story, click on the link next to the headline.
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◙ Everbright Bank Said to Plan $1.8 Billion Share Sale (English article)
◙ Qihoo 360 (NYSE: QIHU) Rejects Allegations From Known Short Supporter (PRNewswire)
◙ Activision Blizzard (Nasdaq: ATVI), Tencent (HKEx: 700) In Long-Term Partnership (Press release)
◙ Sohu’s (Nasdaq: SOHU) Sogou Seeks New Investment After Alibaba Sale (Chinese article)
◙ China Mobile’s (HKEx: 941) Anhui Unit Allows Users to Move Cities, Keep Number (English article)
After months of haggling, Apple (Nasdaq: AAPL) has finally settled a high-profile trademark dispute with a bankrupt Chinese company over use of the iPad name, paving the way for the US tech giant to continue an aggressive ramp-up in a market that has become its second largest worldwide. News of this settlement looks good for not only Apple but also China, allowing the former to reclaim rights to the iPad name while showing companies that Beijing is committed to creating a business friendly environment for those who play by the rules.
New signs are emerging of trouble brewing in the pending marriage of China’s top 2 online video sites, with leading site Youku (NYSE: YOKU) announcing some new top executive changes that completely ignore top managers from its future partner Tudou (Nasdaq: TUDO). I previously predicted this kind of discord could quickly snowball after Youku and Tudou announced their unlikely marriage last year, due to very different leadership styles of their 2 heads, along with indications that neither leader was prepared to leave the merged company.
China’s overheated e-commerce wars are quickly becoming a game of musical chairs that has seen many top names form partnerships with other big players, including an interesting new tie-up between top-tier operator Dangdang (NYSE: DANG) and leading Internet company Tencent (HKEx: 700). This new tie-up looks quite interesting and significant, though I should also point out that it’s just the latest in a steady string of recent initiatives for Dangdang, which has also just announced the launch of a more dubious move targeting the wedding market.
After years of protectionism that effectively locked out private investment from the sensitive telecoms sector, Beijing finally looks ready to open up the space with its release of a draft plan detailing new areas for private investors. This latest development follows signs earlier this year that the telecoms regulator was preparing to open up the sector, which many greeted with skepticism due to Beijing’s previous empty pledges to open the industry when it entered the World Trade Organization back in 2001.
Chinese companies are feeling the summertime heat of a slowing home economy, with new reports emerging from an array of sectors reflecting turbulence at troubled car maker BYD (HKEx: 1211; Shenzhen: 002594), and also at a year-old struggling luxury goods channel operated by leading web portal Sina (Nasdaq: SINA). Neither of these reports is too surprising for reasons I’ll soon explain; but perhaps a bit most worrisome are other reports saying up-and-coming online travel services site operator Qunar has also laid off some employees, in a sign that China’s economic slowdown is starting to affect even healthier companies.
New developments from Trina Solar (NYSE: TSL) and LDK Solar (NYSE: LDK) reflect the financial turmoil gripping the struggling solar sector, boding poorly not only for these 2 major players but also for the China arm of Deloitte, the controversial auditor that has just been dumped by Trina. The developments are all part of a bigger picture that has seen the solar sector gripped by its worst-ever downturn for more than a year now, sending all manufacturers into the red and possibly pressuring some to resort to creative accounting to mask the gravity of their situations.
There’s an interesting report out there today about another Sino-US deal that’s bound to attract controversy for political reasons, this one involving an American real estate developer looking for Chinese money to build homes in the San Francisco area. I’m probably sounding a bit too pessimistic by repeatedly predicting these kinds of deals are destined to fail due to pressure from US politicians, which is what has happened several times over the last 2 years for deals in the sensitive telecoms infrastructure space.
