News Digest: September 30, 2011

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The following press releases and media reports about Chinese companies were carried on September 30. To view a full article or story, click on the link next to the headline.

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◙ China Internet Stocks Fall in New York on U.S. Investigation (English article)

◙ 55tuan Denies Rumors of 70% Workforce Cut (English article)

◙ Ctrip (Nasdaq: CTRP) Announces Up to $100 Million Share Repurchase Program (PRNewswire)

◙ Renren (NYSE: RENN) Announces US$150 Million Share Repurchase Program (PRNewswire)

◙ Court Upholds Verdict Against Qihoo 360 (NYSE: QIHU) in Tencent (HKEx: 700) Suit (Chinese article)

55tuan Layoff Rumors Mark Latest Group Buying Distress Call 传窝窝团大裁员 团购业前景黯淡

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I’m usually reluctant to report on rumors, but a posting on Sina’s (Nasdaq: SINA) Weibo late yesterday that group buying giant 55tuan was launching massive layoffs seemed too big to ignore, reflecting troubles at both the company and in the money-losing group buying space. Sina itself followed up on the Weibo post by contacting the  poster, who reiterated that 55tuan had cut 22 of the 31 people in the local markets division where he works, or about 70 percent of the division. (Chinese article) I suspect we’ll see domestic media follow up on this rumor today, and clearly you can’t extrapolate big cuts in a small regional division to an entire company. But at the very least, assuming this worker is really from 55tuan, this kind of a big cut in a single division probably points to major adjustments being made at 55tuan, which in July had to abandon plans for a US IPO after several investment banks refused to handle the deal over concerns about accounting records at some of its recently acquired assets. (previous post) Rival Lashou, China’s biggest group buying site, was racing to find an investment bank for its own IPO earlier this month, after Goldman Sachs and Morgan Stanley reportedly resigned from the case over similar concerns. (previous post) Both 55tuan and Lashou raised $100 million or more earlier this year amid a boom in China’s group buying sector that resulted in fierce competition, drawing the field of money-losing players deeper into the red. The layoffs at 55tuan, if true, would be the most significant in the sector so far, following major cuts at Gaopeng, the group buying joint venture between US giant Groupon and China Internet leader Tencent (HKEx: 700) earlier this year. Investors look unlikely to pour more funds into these money-losing companies anytime soon, which means that unless they can raise money some other way most are likely to go into a “cash preservation” mode by implementing severe spending cuts including layoffs and reduced marketing activities. When that happens, look for a ripple effect to hit other web firms like Baidu (Nasdaq: BIDU) and Sina, that rely heavily on ad revenues for their income.

Bottom line: Rumors of layoffs at group buying site 55tuan, if true, would mark the most significant sign to date of distress in the overheated sector, which is poised for a major shake-up.

我通常不愿探讨传言，但昨晚新浪(SINA.O)微博上称窝窝团将大规模裁员，这则消息实在不容忽视，它反映了该公司以及整个团购行业面临的困境。新浪後来与微博作者取得联系，对方称其曾在窝窝团工作的部门大幅裁员。我估计今天国内媒体会就此追踪报导，当然我们不能基于一个部门的裁员来推测整个公司。但我们至少可以这麽想，若一个部门大幅裁员，可能意味着公司正进行重大调整。窝窝团此前曾打算赴美上市，後来因多家投行对其收购的一些资产的会计记录存在顾虑，拒绝接手其上市事宜，导致窝窝团7月放弃赴美上市。另一团购网站–拉手网本月早些时候也苦苦寻找投行安排上市事宜，此前摩根士丹利(MS.N)和高盛(GS.N)出于类似顾虑，退出拉手网上市案。今年早些时候，中国团购业如火如荼之际，窝窝团和拉手网均曾筹资至少1亿美元，但後来行业竞争加剧，团购网站亏损严重。如果窝窝团大幅裁员消息属实，则将是高朋网今年大规模裁员後，团购业最轰动事件。短期内投资者不太可能再向这些亏损公司投入更多资金，这意味着它们除非能有别的筹资渠道，否则就不得不保存现金，通过裁员和减少营销活动等途径削减支出。一旦出现这样的局面，势必波及百度(BIDU.O)和新浪等严重依赖广告收入的网络公司。

一句话：窝窝团裁员传言若属实，则是团购业陷入困境的最明确信号，意味着该行业将出现重大调整。

Related postings 相关文章:

◙ Lashou Begs for an IPO Banking Partner 拉手网拼命寻找上市承销商

◙ Group Buying Sites: The First to Fall? 团购网或将在互联网泡沫破灭时应声而倒？

◙ Gaopeng Lay-Offs Auger Ad Spending Downturn 1高朋裁员预示网络广告支出或大幅下降

 

Beijing IPO Campaign to Boost Markets Falls Flat 大宗IPO提振中国股市或成泡影

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Beijing is quickly discovering that it can throw a party by making mega-IPOs for some of its best companies in a bid to revive its moribund stock markets, but there’s no guarantee that anyone will come to join the fun. That appears to be the lesson as CITIC Securities (Shanghai: 600030) has been forced to pare back its plans for a Hong Kong IPO by more than 10 percent due to lackluster demand. (English article) The company, which offers one of the best windows for foreign investors into China’s promising financial sector, is now aiming to raise just $1.7 billion, compared with a previous target of $2 billion, after pricing the deal at the low end of its range. The reduced offering and final pricing, which give the company a modest price-to-earnings ratio of just 9 times 2011 earnings, are a bit surprising after reports said earlier this week that the deal was 4 times covered. Clearly either the company’s bankers were exaggerating to generate more enthusiasm, or investors got cold feet due to growing uncertainty about China’s financial sector, or most like a combination of the 2 was behind this disappointing result. CITIC Securities was to be the first of a steady stream of Chinese blue-chip firms to make new mega-listings in Hong Kong and Shanghai, in what I suspect was a carefully orchestrated effort by Beijing to revive those two markets — especially a Shanghai market now trading at its lowest levels in over a year. Other major firms that announced mega listing plans included Sany Heavy Industries (Shanghai: 600031), which was aiming to raise $3.3 billion in a Hong Kong listing; and Sinohydra Group, operator of the 3 Gorges Dam, and China Communications Construction, which were aiming to raise $2.6 billion and $3.1 billion, respectively, through listings in Shanghai. (previous post) Some of the companies were already talking about reducing or canceling their offerings due to weak market demand, and this disappointing showing for CITIC Securities will only cause more hesitation. If I had some extra money to spend, I would invest in some of these upcoming IPOs, as they will undoubtedly offer nice bargains for some of China’s top corporate names. That will be bad news for Beijing, which was hoping to get better returns for some if its top-notch players.

Bottom line: Investor angst will undermine Beijing’s plans to revive markets with IPOs for some of China’s top companies, providing bargain buying opportunities for bolder investors.

中国当局很快就发现：虽然能通过一些优质企业大规模招股为股市注入活力，但却不能保证有多少人愿意凑这场热闹。中信证券(600030.SS)在香港IPO，由于需求不旺而降低了筹资额。中信证券是外国投资者押注中国金融业的一个良机，原计划透过在港IPO筹资20亿美元，但最终以招股价指导区间低端定价，筹资额减为17亿美元。这有点令人意外，因本周稍早报导称，中信证券H股获得了四倍认购。这麽看来，要麽是承销商为吸引投资热情而夸大其词，要麽就是投资者面对中国金融业的不确定性望而却步，更大的可能是二者兼而有之。我猜测中信证券香港IPO可能是中国政府精心策划的，希望能藉此提振沪港股市，尤其是跌至逾一年低位的沪市。其他宣布了大宗上市计划的还有三一重工(600031.SS)、中国水电和中国交通建设等。三一重工计划在香港上市融资33亿美元；中国水电是三峡大坝建设方，计划在沪市融资26亿美元；中国交通建设则计划在沪市融资31亿美元。由于市场需求低迷，有些公司已经在考虑削减或取消上市计划，而此次中信证券的表现，肯定会令它们更加迟疑。不过，如果我手头有闲钱，我就会买这些即将上市的新股，因为肯定能够以较低的价格，买到这些中国顶级企业的股份。不过这样的局面，恐怕会令中国当局感到失望。

一句话：投资者不安情绪，不利于中国当局藉由大宗IPO提振股市的计划，不过对胆大的投资者来说，倒是不错的买入时机。

Related postings 相关文章:

◙ China Offers Up Premier IPOs to Revive Markets 大企业沪港上市 政府借机重燃沪港生机

◙ CITIC Securities $2 Bln IPO Looks Good, With Potential to Jumpstart HK 中信证券香港IPO值得期待

◙ 360Buy IPO: Let the Delays Begin 京东商城放缓IPO进程

Bank Woes Breed Trouble in Camelot

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We’re seeing an interesting sign of the turmoil at Chinese banks with a new profit and revenue warning from IT outsourcing firm Camelot Information Systems (NYSE: CIS), which is blaming a sudden drop-off in bank spending for the adjustments. Camelot has lowered its third-quarter revenue outlook about 10 percent to $57 million, resulting in a two-thirds reduction in its earnings outlook. (company announcement) It made similar-scale adjustments for the fourth quarter, though clearly the numbers could be further lowered if the situation deteriorates. Camelot shares tumbled 21 percent on the news, and are now nearly 90 percent down from their 52-week high. Two other major outsourcing rivals, HiSoft (Nasdaq: HSFT) and VanceInfo (NYSE: VIT) also fell on the news, down 4.4 percent and 8.7 percent, respectively. Banks are some of the biggest customers for these IT outsourcing firms, and Camelot blamed reduced spending by the sector for its downward revisions. Beijing has been forcing its banks to effectively rein in their spending, mostly in the form of reduced lending, through a steady series of interest rate hikes and boosts to their reserve requirement ratios, as it seeks to cool an overheated economy. The fact that the tightening has trickled all the way down to IT spending is a bit alarming, as this form of spending is critical as the banks update their systems and is insignificant in terms of money compared with the hundreds of billions of yuan that banks lend each year. So if the banks are cutting back on this important and also relatively inexpensive form of spending, their situation could easily be more dire than most people realize. I wouldn’t read too much into this small downward revision by Camelot just yet, but clearly the big sell-off in its shares shows investors are worried this revision may just be the beginning in a big cycle of reduced IT spending by Chinese banks.

Bottom line: Camelot Information Systems’ lowered guidance reflects turmoil at China’s banks, and could mark the start of reduced bank spending on IT for the next 2-3 years.

Related postings 相关文章:

◙ Record Profits Bolster Banks as Storm Looms 创纪录利润有助银行抵御楼市低迷隐忧

◙ China Merchants Bank Kicks Off “Capital Raising II” 招商银行掀起第二轮融资热潮

◙ Watch Out Lancelot: Slowdown Looms in Camelot

News Digest: September 29 2011

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The following press releases and media reports about Chinese companies were carried on September 29. To view a full article or story, click on the link next to the headline.

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◙ 55tuan Begins Massive Layoffs, Up to 70 Percent (Chinese article)

◙ Citic Securities (Shanghai: 600030) Sale Said to Raise $1.7 Bln, Less Than Sought (English article)

◙ Camelot Information Systems (NYSE: CIS) Revises Outlook for Q3 and Full-Year (PRNewswire)

◙ Suntech (NYSE: STP) Sees China Gaining From Falling Solar Prices (English article)

◙ Nobuyuki Idei Joins Lenovo (HKEx: 992) Board of Directors (Businesswire)

Lenovo Takes Backward Step With Compal JV 联想和仁宝合资建厂为倒退举动

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Investors must see something I’m missing in Lenovo’s (HKEx: 992) newly announced $300 million joint venture with Taiwanese contract PC manufacturer Compal (Taipei: 2324). That’s the only reason I can find for an 11 percent jump in Lenovo’s stock on Tuesday after it announced the deal, which will see it pair with one of Taiwan’s top contract PC makers in a new manufacturing tie-up. To me, this deal looks more like a step backward than a positive new development, and goes in the opposite  direction of global industry trends. First let’s review the facts: under their new deal, the companies will invest the $300 million to build a PC manufacturing plant in the Chinese city of Hefei. Presumably the plant will exclusively supply PCs to Lenovo, which recently passed Taiwan’s Acer (Taipei: 2353) to become the world’s third largest PC seller (previous post) and said it aims to take the number-two spot from Dell (Nasdaq: DELL) by the end of the year. The only problem with this latest joint venture plan is that it completely goes against a much bigger industry trend that has seen most of the world’s major electronics makers, including names like Apple (Nasdaq: AAPL), Dell and Hewlett-Packard (NYSE: HPQ) sell off most of their PC-building assets in the last 10 years and outsource the work to specialist contract manufactures, mostly in Taiwan, like Compal and Hon Hai (Taipei: 2317). The trend occurred to let the big brands focus on marketing and sales, while giving them the flexibility to use one or more of the contract manufacturers depending on their needs in an increasingly competitive global marketplace. For Lenovo to get back into the manufacturing business completely contradicts all these latest industry trends, and I see little or no advantage in this move. My only guess as to why the market got so excited over the news is that perhaps investors believe that with this new project now on its plate, Lenovo will be less likely to make a foolish bid for HP’s PC assets, which would be much more disastrous for Lenovo than this relatively small new investment with Compal.

Bottom line: Lenovo’s new PC manufacturing joint venture with Compal makes little or no sense, and is an unneeded distraction as it aims to take the world’s No. 2 PC spot from Dell.

联想(0992.HK)周二宣布，将与台湾PC代工厂商仁宝(2324.TW)共建规模达3亿美元的合资公司，这项交易中，定有投资者发现了而我却错过的东西。联想股价在周二交易宣布後大涨11%，这是我唯一能想到的原因。合资建厂交易，将令联想和台湾PC代工大厂结成新的生产联盟。但依我看，这项交易更像是倒退了一步，而非向前的新发展，与全球PC行业发展趋势也是背道而驰。首先，我们来回顾一些事实。按照此交易，联想和仁宝将斥资3亿美元在合肥建PC制造厂。联想近期超越台湾宏基(2353.TW)，成为世界第三大PC厂商，并称其目标是到年底取代戴尔(DELL.O)成为世界第二大PC厂商。新合资工厂将只向联想供应PC产品，这项合资计划里面唯一的问题是，这种做法与行业大趋势完全背道而驰。过去10年中，苹果(AAPL.O: 行情)、戴尔和惠普(HPQ.N)等一些世界电子行业巨头纷纷出售各自PC制造资产，并将PC生产工作外包给仁宝和鸿海(2317.TW: 行情)等专业代工商。这种趋势让大公司更多地专注于市场营销，同时在日益激烈的全球竞争中给他们带来灵活性，可以根据需求选择一家或多家代工厂商。联想重返制造业务，完全违背了这些最新行业趋势，我认为此举鲜有或根本没有优势可言。市场为何对此消息如此兴奋，我唯一的猜测的是，投资者可能认为联想有了这一新项目，愚蠢的竞购惠普PC资产的可能性会更小。与这项和仁宝的相对较小规模的投资相比，竞购惠普PC资产会带来更大灾难。

一句话：联想和仁宝合资建厂几乎无意义可言，对超越戴尔成为世界第二大PC厂商的目标来说，也是节外生枝。

Related postings 相关文章:

◙ Acer Trips, Lenovo Next? 联想应避免重蹈宏基覆辙

◙ HP’s Mobile OS Looks Hot for Lenovo, HTC 联想和HTC似将发动惠普资产竞购战

◙ Lenovo Sets Sights on Russia, Style 联想进军俄罗斯市场，研发时尚型PC

Govt to Nat’l Cable Firm: Be Profitable 政府对国家广电公司的安排：商业化

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There’s an interesting report in the domestic media on the ongoing consolidation of China’s fragmented cable TV sector, which seems to indicate that not only is this campaign moving forward on schedule but also that the government is determined to make the new national giant a commercially viable company. The report says that the NDRC, China’s state planner, has rejected a plan from the state agency overseeing the consolidation and asked it to submit a new one. (English article) The major issue is cost: the original plan by the agency overseeing the consolidation called for the government to allocate 1 trillion yuan, or about $150 billion, to complete the project. The NDRC said that price tag was too high, and that rather than becoming a government-controlled entity as the original plan proposed, the new company, to be called China Radio & Television Network, should be a commercially-oriented state-owned enterprise. This sounds to me like the latest signal that central planners intend for this new company to be a serious commercial provider of wire-based broadband services in China, competing directly with the nation’s other major telcos, namely China Mobile (HKEx: 941; NYSE: CHL), China Telecom (HKEx: 728; NYSE: CHA) and China Unicom (HKEx: 762; NYSE: CHU) in providing such services. Considering that this new company will already have wired networks into the homes and offices of hundreds of millions of Chinese consumers and businesses, this new company, which will already supply basic cable TV services to most homes, will have all the  infrastructure and customer contacts it needs in place to quickly become an important new player in the market alongside the 3 major telcos. Of course, the consolidation could still run into trouble and a new, effective management structure will have to be created for this project to be a success. But if that happens, I would look for this new major broadband company to take shape and earn profits as early as late next year, with a possible an IPO as soon as 2013 to help it raise the capital it needs to become an important new player.

Bottom line: China’s plan to create a new national broadband company from its regional cable TV firms appears to be moving forward, with the state intent on making a commercially strong player.

中国媒体近日发表了一篇有意思的报道，透露了广电网络整合的最新进展。报道表明整合正按照日程持续进行，并预示政府决定将这个广电网络这个巨头商业化运作。该报道称，发改委拒绝了之前提交的整合计划，并要求广电方面制定新的计划。拒绝前一计划的主要原因还是费用问题。广电方面要求政府拨款1万亿元来完成整合，但发改委认为费用过于高昂，并且不认同广电提出的国家级有线电视网络公司“中国广播电视网络公司”的事业编国企方案，而是属意纯公司化运作的国有大型文化企业方案。在我看来，这就像是一个最新的信号，表明发改委希望中国广电网络“中国广播电视网络公司”能成为一个商业化的有线网络运营商，直接和提供类似服务的中移动 (0941.HK; CHL.N)、中联通(0762.HK; CHU.N)和中电信(0728.HK; CHA.N)三大运营商竞争。考虑到广电的有线网络已经在成千上万的家庭和办公室入户，为海量的个人用户和企业客户提供基本的有线电视服务，广电在地方上将拥有基础设施和用户之便，成为市场上和三大运营商比肩的新巨头。当然，广电整合仍然可能遇到未知的问题，能否建立一个高效的管理体系将成为成败的关键。一旦整合成功，我预测这个新的宽带公司将最早在明年底就盈利，可能在2013年公开募股，以集资和三大运营商抗衡。

一句话：中国计划将区域有线电视提供商整合为一家大企业，同时希望这家公司成为市场上新的强力参与者。 (翻译：网易）

Related postings 相关文章:

◙ Anti-Monopoly Regulator Makes Poor Choice in Chasing China Telecom 中国反垄断初试牛刀 选错对象

◙ Cable Consolidation Moves Closer With New Umbrella Company 中国广播电视网络公司有望近期挂牌 有线网络整合步伐加快

◙ Cable Consolidation Crosses Provincial Lines 中国广电行业跨省并购案

Renren Finds Video Bargain in China Web Bubble 人人网低价收购56网 凸显中国互联网困境

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Renren (NYSE: RENN), often called the Facebook of China, appears to have purchased up-and-coming video sharing site 56.com for a bargain price in its first major M&A, casting a spotlight on the growing pressure that young Chinese web firms are facing in the current Internet bubble. The Renren news, which saw it buy money-losing 56.com for a modest $80 million, is just the latest sign of a Chinese Internet under duress, with media reporting new mass layoffs at two additional firms, B2B marketplace operator DHGate and group buying site Groupon.cn, which is no relation to US industry leader Groupon. Let’s take a look at 56.com first. (company announcement) According to industry data, 56.com has about 66 million unique visitors and nearly 1 billion page views a month. Video sharing leader Youku (NYSE: YOKU) has about twice as many unique visitors, and 4 times as many page views. And yet even after the latest market sell-off, Yoku still has a market cap of $2.3 billion, or nearly 30 times what Renren paid for 56.com. Obviously traffic alone isn’t the only way to determine a company’s value, but in the Internet world it’s one of the best measures of its potential. Combine that with the fact that 56.com lost a relatively modest $500,000 in the second quarter, and this looks like a very good deal for Renren. Now let’s look at the latest layoffs, which again point to the incredible pressure that money-losing web firms are facing to quickly turn a profit or risk being forced to close or sell themselves at bargain prices to companies like Renren. Domestic media are citing a company employee in saying that DHGate, has laid off more than half of its technology and marketing staff, reportedly under pressure from major investor Kleiner Perkins Caufield & Byers which has cut off additional funding until the company can show some better financials. (English article) That news comes as domestic media are also reporting that Gaopeng.cn has laid off more than half of its staff (Chinese article), not long after Gaopeng, the group buying joint venture between US-based Groupon and China Internet leader Tencent (HKEx: 700) made similar layoffs. Look for more of these mass layoffs, plus some sales of promising but money-losing web firms like 56.com at bargain prices in the months ahead as China’s Internet bubble works its way through a painful correction.

Bottom line: Renren’s purchase of a solid video sharing site at a bargain price, coupled with mass layoffs at two other web firms, are the latest signs of distress in China’s Internet bubble.

人人网(RENN.N)似已低价收购视频分享网站56网，这是人人网第一笔大规模并购案，凸显中国年轻的网络公司在目前互联网泡沫时代所面临的压力。人人网斥资8,000万美元，收购目前亏损的56网，是中国互联网业承压的最新迹象。另有媒体报导，B2B小额外贸批发平台敦煌网（DHGate）和团购网团宝网（Groupon.cn）将进行新一轮大规模裁员，後者与美国Groupon并无关联。我们先来看看56网。行业数据显示，56网约有6,600万名独立访客，每月页面浏览量近10亿次。视频分享领军企业优酷网(YOKU.O)这两个数据约为 56网的两倍和四倍。即使经历了近期的市场抛售，优酷网市值仍有23亿美元，是人人网收购56网价格的近30倍。流量显然不是决定公司价值的唯一依据，但 在互联网领域，这是衡量一个公司潜力的最佳标准之一。再加上56网第二季度亏损50万美元，收购56网对人人网来说是一笔不错的交易。再看看近期的裁员事件。这再次表明，亏损的网络公司面临诸多压力，要麽迅速实现盈利或被迫倒闭，要麽以低价出售给人人网等公司。国内媒体援引一名企业雇员 的说法称，敦煌网技术和营销部裁员逾半，原因是主要投资方Kleiner Perkins Caufield & Byers（KPCB）削减额外资金，除非敦煌网财务状况有所改善。国内媒体还报导称，继高朋网裁员不久後，团宝网也裁员逾50%。随着中国互联网业经历 痛苦修正，预计未来数月还将有更多大规模裁员，以及前景看好但目前亏损的企业被出售。

一句话：人人网低价购买视频分享网站56网，敦煌网和团宝网大规模裁员，这些都是中国互联网陷入困境的最新迹象。

Related postings 相关文章:

◙ More Internet Froth in Alibaba Valuation, Dangdang Price War 阿里巴巴估值奇高凸显网络泡沫

◙ 360Buy IPO: Let the Delays Begin 京东商城放缓IPO进程

◙ Wal-Mart Finds Bargain in China’s Internet Bubble

News Digest: September 28, 2011

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The following press releases and media reports about Chinese companies were carried on September 28. To view a full article or story, click on the link next to the headline.

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◙ Lenovo (HKEx: 992) In $300 Mln JV With Compal (Taipei: 2324), Shares Jump (English article)

◙ Citic Securities (Shanghai: 600030) $2 billion HK Deal 4 Times Covered (English article)

◙ DHGate Begins Massive Layoffs – Source (English article)

◙ Xueda Education (NYSE: XUE) Announces Share Repurchase And Business Outlook (Businesswire)

◙ Perfect World (Nasdaq: PWRD) Provides Update on Share Repurchase Program (PRNewswire)

US-Listed China Firms Fight Back — Finally 中国赴美上市公司最终还击

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US-listed China firms have taken a largely passive posture during the months-long scandal surrounding their credibility on Wall Street, but now I’m happy to see that at least a few are starting to fight back to defend their honor. Since the confidence crisis began earlier this year with an accounting scandal at financial software maker Longtop Financial, these companies, many of which never did anything wrong, have made a few reactionary moves, launching share buybacks and dividends and in occasionally offering explanations to fend off short sellers to defend their sinking shares. Now, one of the smaller firms, a silver mining company called Silvercorp Metals (NYSE: SVM) is taking a more aggressive stance, suing a web site called Chinastockwatch.com, for posting false information about it in an attempt to drive down its share price. (English article) Silvercorp is seeking $11 million in damages in the case, filed last week in New York, though Chinastockwatch is so far denying the allegations. I don’t know enough to comment too much, but I have to believe that Silvercorp, which undoubtedly knows little or nothing about the US legal system, must think it has a very strong case for it to proceed with this action. At the very least, this kind of more assertive move is likely to discourage any smaller short-sellers from taking advantage of the confidence crisis to try and punish individual Chinese companies by spreading false rumors. In the other development, AutoChina (Nasdaq: AUTC), an auto leaser in central China slated for delisting on the Nasdaq due to late filing of its annual report, has released an announcement showing it is aggressively appealing the decision, unlike many other Chinese firms that up until now have quietly accepted similar delistings. (company announcement) Of course, there’s no guarantee this appeal will be successful, and I suspect that ultimately AutoChina might be delisted despite this last-minute effort. But at least it’s trying to clear its name and, in the process, bring back some credibility to US-listed China stocks.

Bottom line: Two new efforts by Silvercorp and AutoChina to defend themselves against allegations of impropriety are a welcome effort to bring back confidence to US-listed China stocks.

面对会计丑闻在华尔街所引发的信任危机，中国赴美上市公司基本上采取了一种消极态度，但眼下至少有少数公司开始还击捍卫其声誉，这是我乐见的情形。自东南融通财务丑闻今年早些时候掀起在美上市中国概念股诚信危机以来，这些公司只是采取了少量应对措施，当中包括回购股票、派发股息和偶尔的解释，来阻止做空抛盘，保护股价下跌，但他们中的多数公司其实并无任何过错。眼下，有一家规模较小的、名为希尔威金属矿业(SVM.N)的公司正采取更积极的态度。该公司对Chinastockwatch.com网站提起诉讼，指控後者散播虚假信息试图压低其股价。希尔威上周在纽约提起诉讼，要求就所造成的损失赔偿1,100万美元，但Chinastockwatch迄今一直否认这些指控。我对此事了解不多，也不便过多评论，但我认为希尔威一定是认为自己有非常有利的证据，才会发起此项诉讼。此类积极举动至少可以打击规模较小的做空抛盘利用信任危机，通过散布虚假消息来打压个别中国公司股价。另一家公司开元汽车(AutoChina)(AUTC.O)因没有按时提交年报，将被从纳斯达克摘牌。该公司发表声明称，正在对摘牌决定进行积极上诉，这与许多其它默默接受摘牌的中国上市公司截然不同。当然，该公司上诉不一定能获胜，我认为开元汽车虽然进行这一努力，最终仍难免被摘牌。但至少该公司为挽回声誉进行了努力，这或许能为在美上市中国公司挽回一些信誉。

一句话：希尔威和开元汽车正对针对他们的不当行为指控作出还击，这是令人欢迎的举动，可为在美上市的中国股票赢回一些信心。

Related postings 相关文章:

◙ Accounting Scandal Claims AutoChina As Second Big Victim

◙ Securities Regulator Seizes on US Confidence Crisis 中国证监会或介入企业海外上市

◙ Lashou Begs for an IPO Banking Partner 拉手网拼命寻找上市承销商

Investors Pocket Spreadtrum, Giant Dividends and Run

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It’s going to take more than dividends and buy-backs to win investors back to China stocks, or at least that’s the message that markets are sending to online game operator Giant Interactive (NYSE: GA) and cellphone chipmaker Spreadtrum (Nasdaq: SPRD). Let’s look at Giant Interactive first, which raised investor wrath last month when it disclosed it had made investments in the insurance sector completely unrelated to its core online games business, and then forced out its CFO and offered a massive dividend worth more than 30 percent of its share price to try and make amends. (previous post) Its share moved up marginally when it announced the dividend, and then plummeted after it made the award on September 11, falling from $7.80 the day before it distributed the $3 per share award to a close of $4.61 afterwards. Since then, its shares have tumbled even further to its latest close of $3.48 per share, about a third of their 52 week high. Now the company has just announced a share buy-back, again with little affect on its price. (company announcement) Clearly investors are still not convinced that this company is anything more than the personal play toy of its chairman Shi Yuzhu, reflecting the broader credibility crisis facing US-listed China stocks. Spreadtrum’s case looks similar, though not quite as extreme. After successfully fending off a short-seller attack in June (previous post), the chipmaker has now announced it will award a modest quarterly dividend of 5 cents per American Depositary Share, equaling an annual yield of just 1 percent if it really keeps paying the dividend on a quarterly basis. (company announcement). Not surprisingly, shareholders greeted the news with indifference and perhaps even a little disdain, bidding Spreadtrum shares down marginally in Monday trade, even as the Dow and Nasdaq both rallied more than 2 percent. In Spreadtrum’s case the issue is clearly size, as the dividend is nearly meaningless even though the company itself looks strong. In Giant’s case much more fundamental issues are at stake, namely its lackluster position in the China’s tough online gaming space and its credibility in general. In both cases, investors are saying it will take stronger performance, and not just quick dividends, to win back their interest.

Bottom line: The dividend strategy from several US-listed Chinese companies is falling flat, with investors looking for stronger bottom lines before returning to these firms.

Related postings 相关文章:

◙ Giant Fires CFO, Offers Dividend to Placate Investors 巨人网络CFO辞职 高额分红以安抚投资者

◙ Spreadtrum On Cusp of Putting Out Short-Seller Fire 展讯力抗卖空方

◙  Sofun’s New Strategy: Dividend Wave Ahead? 搜房网新策略：中国概念股派息潮即将来临?