I have to admit that my first reaction was one of skepticism when I read earlier this week that Chinese home appliance giant Haier (HKEx: 1169) was weighing a bid for New Zealand’s Fisher & Paykel (NZ: FPA), as the bid appeared to follow a familiar and largely unsuccessful pattern for Chinese companies making overseas M&A. But a closer inspection of the financials reveals that after previously falling on hard time, F&P may actually be a company on an upward trajectory, giving this potential acquisition a much better chance of success.
Search Results for: ant
Jingdong Mall Tries Gaming 京东商城有意进军网游业
When future historians look at the early days of the China Internet, Jingdong Mall will probably be remembered as a sort of hyperactive organism that had too much money and tried to do too many things, wreaking havoc on the entire web community in the process. That’s my latest assessment of this hyperactive e-commerce giant, which also calls itself 360Buy, following the latest reports that Jingdong now plans to get into the online games business. (English article; Chinese article)
55tuan: More Distress in Group Buying 窝窝团：中国团购行业再现危机
We’re seeing the latest signs of distress from the beleaguered group buying space, with word that 55tuan, one of the industry’s biggest players, is failing to pay some of its merchants. This kind of news isn’t really new anymore, as similar talk that many of the country’s money-losing group buying sites are rapidly running out of cash has been circulating for months now. This latest distress sign just shows that the end is fast approaching for many of these companies, though I’ll admit I’m a bit surprised that we haven’t seen any bigger failures yet.
China Welcomes More 2nd-Tier Financiers 中国欢迎更多二级金融机构
What I like to call the “second wave” of overseas financial institutions coming to China is picking up momentum, with announcements of new expansions in the market by relatively unknown players CIT Group (NYSE: CIT) and MoneyGram (NYSE: MGI). I’ll discuss what each of these companies does shortly, as neither enjoys the widespread recognition of much bigger names like Citigroup (NYSE: C) and HSBC (HKEx: 5; London: HSBA) that have been active in China for more than a decade now despite making only limited inroads during that time.
China Mobile: 4G Near, iPhone Far 中国移动：4G接近，iPhone走远
Qihoo Adds “Like” to Search Offensive 360推“拇指计划” 继续向搜索业务发力
Security software specialist Qihoo 360 (NYSE: QIHU) is continuing its Internet search offensive by adding a new ratings feature to its product, leading me once again to applaud its innovative approach for this new initiative despite my broader doubts about this company. Media are reporting that Qihoo has added the equivalent of a “like” function to its search results similar to the one now on Facebook, which lets web surfers rate whether or not they find particular sites useful. (English article; Chinese article)
Suntech: Rats Fleeing A Sinking Ship? 尚德：船沉鼠先窜？
After managing to stay out of the news for a couple of weeks, scandal plagued solar panel maker Suntech (NYSE: STP) has bounced back into the headlines with the announcement of the departure of its chief commercial officer, who is leaving for “personal reasons.” (company announcement) I don’t want to sound too crass on this otherwise lovely Monday morning in Shanghai, but this departure looks a bit like the proverbial “rats jumping from a sinking ship” that we often see just before a company implodes.
China Gas: New Bid Coming from Sinopec? 中石化会提高收购中国燃气的价格吗？
I’ve been watching with fascination for much of the last year as oil refining major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP) makes a bizarre bid for China Gas (HKEx: 384), a natural gas pipeline operator that has made it clear it has no desire to be acquired. Despite seeing its $2.2 billion offer rejected last December and no formal talks or new offers since then, Sinopec has repeatedly extended the deadline for its bid, including the latest extension it has just disclosed through a filing with the Hong Kong Stock Exchange. (HKEx announcement) All this leads me to believe that Sinopec and bidding partner ENN Energy (HKEx: 2688) are preparing to raise their bid for China Gas, with a new offer possible as soon as the deal gets regulatory approval.
More Solar Outrage Over EU Probe 欧盟光伏倾销调查触发众怒
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.
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.
