Note: After originally publishing this article, a Qunar spokesman pointed out that the company’s report that it had $80 million in cash was as of September 30, which would not have included the $194 million that it raised in its IPO, which occurred at the beginning of November.
Newly listed Internet companies Qunar (Nasdaq: QUNR) and LightInTheBox (NYSE: LITB) are trying hard to kill a recent window of positive sentiment towards Chinese IPOs in New York, with each announcing quarterly results that can only be described as disappointing. Not surprisingly shares of both companies tumbled after the results came out, with LightInTheBox falling well below its IPO price. More broadly speaking, this outcome reflects the pressure that Chinese Internet companies feel to put on their prettiest faces before their IPOs, which creates disappointment when a clearer picture inevitably emerges in the following months. Read Full Post…
It may sound like a small and unimportant detail, but taxi cabs form one of the first and strongest impressions that people get when they travel to other cities. Cabs are equally significant for local residents, constituting part of the fabric of everyday life for many urban dwellers in their hometowns.
That’s why I was excited to read that after years of using the boxy and flimsy looking Volkswagen Santana for its taxi fleet, Shanghai was preparing to choose a replacement for the thousands of cabs that ply the city’s streets. According to the latest reports, Volkswagen’s small but much sportier Lavida is the prime candidate to replace Santanas, which have recently ceased production. Read Full Post…
Chinese firms’ addiction to distressed global assets was back in the spotlight last week with word that car maker Dongfeng Motor (HKEx: 489) is nearing a deal to purchase struggling French automaker Peugeot (Paris: PEUP). This pursuit of a global brand is consistent with Beijing’s call for Chinese firms to go global, and would certainly allow Dongfeng to quickly expand onto the world stage. Read Full Post…
Two of China’s oldest listed Internet firms are in the headlines these last few days, led by word that leading portal Sina (Nasdaq: SINA) has become the late web giant to make a mega bond offering as it eyes potential acquisitions. In the other more amusing news, NetEase (Nasdaq: NTES) is reportedly struggling to build up its pig-raising business that it hyped a couple of years ago, spotlighting its inability to expand beyond its core online game business. Read Full Post…
Former social networking (SNS) superstar Renren (NYSE: RENN) is reportedly downsizing its online game division, formerly its most promising unit, leading me to wonder if earlier rumors that the company’s days as an independent entity may be numbered. The story behind Renren’s rapid rise and now apparent fall is simple: The company was once considered China’s equivalent of Facebook (Nasdaq: FB), and used that comparison to launch a successful IPO back in 2011. But since then it has been overtaken by other social networking services, most notably Sina’s (Nasdaq: SINA) Weibo microblogging service and Tencent’s (HKEx: 700) WeChat, putting the company’s future in jeopardy as it looks for a competitive advantage. Read Full Post…
ICBC (HKEx: 1398) has entered the realm of leading global banks, with word that China’s top lender has been officially declared “too big to fail” by a major world body, reflecting China’s increasingly important role in the world’s economy. ICBC’s growing importance to the global economy was also evident in its successful issue of the first yuan-denominated bond in London, part of China’s efforts to internationalize its currency with major state-owned banks like ICBC and Bank of China (HKEx: 3988; Shanghai: 601988) leading the campaign. Read Full Post…
Beijing is showing that Washington isn’t the only one that can play games over national security concerns, with word that networking equipment giant Cisco Systems (Nasdaq: CSCO) is loosing big business in China due to revelations about US spying. Frankly speaking, this latest development in the networking equipment Cold War between Beijing and Washington doesn’t surprise me too much, and some might even say that China’s national security concerns are justified. But no matter what you think, it seems likely that Cisco’s new China freeze is at least partly and quite possibly completely in response to similar moves by Washington against Chinese networking equipment giants Huawei and ZTE (HKEx: 763; Shenzhen: 000063). Read Full Post…
As the sun rapidly sets on former solar pioneer Suntech (OTC: STPFQ), I thought I’d take a look at the latest reports that show just how closely the company relied on state support. At the same time, another major development has seen Suntech’s shares finally de-list from New York, where they have traded since its 2005 IPO. The de-listing is something that should have happened long ago, even though investors continued to bet that Beijing would rescue Suntech ever since the company was forced into bankruptcy back in March. Read Full Post…
Today marks the official highpoint of earnings season for US-listed Chinese companies, with at least 4 of the ones I cover reporting their results. With all that information flooding into the market, I thought I’d look at video site Youku Tudou (NYSE: YOKU) and e-commerce company Dangdang (NYSE: DANG), 2 money losers that are trying desperately to claw their way to profits. The news looks positive for both, with Dangdang reporting its losses continue to shrink as Youku has finally come out and dared to utter the word “profit” in its latest report. Read Full Post…
In what looks like a highly coordinated ambush, a group of China’s top online video sites have teamed up with Hollywood to sue Internet search leader Baidu (Nasdaq: BIDU) for video piracy. This is the first time I can recall seeing big western names team up with Chinese companies to launch such a major lawsuit, creating not only legal headaches but also a huge wave of negative publicity for Baidu. The action also comes as Baidu makes a series of major moves in the online video space in a bid to challenge industry leader Youku Tudou (NYSE: YOKU), which is also one of the co-plaintiffs in this new lawsuit. Read Full Post…
Two new stories in the consumer space are offering an interesting look at the difficulty of taking over Hong Kong-listed companies, providing headaches for potential acquirers but also interesting opportunities for minority investors. The 2 cases involve dairy giant Mengniu (HKEx: 2319) and Swedish paper products company SCA (Stockholm: SCAA), which have each bought a controlling stake of their Hong Kong-listed targets rather than the taking outright ownership that both probably would have preferred. In the former case, Mengniu was aiming to buy raw milk supplier Yashili (HKEx: 1230), while SCA was aiming to buy tissue products maker Vinda (HKEx: 3331) Read Full Post…
