Bottom line: China’s anti-trust regulator’s assertion that the Didi-Uber China mega-merger will require its approval could mark the beginning of a new, tougher stance towards the nation’s rapidly consolidating Internet sector.
Anti-trust regulator steps into Didi-Uber marriage
After years of sitting by and doing almost nothing to stop the formation of near monopolies in a number of emerging high-tech sectors, China’s anti-trust regulator may finally be taking notice of rapid consolidation happening in the country’s cyber realm. I’ve frequently complained that China’s commerce ministry has taken a relatively tough position on cross-border M&A for anti-competitive reviews, but pays little or no attention to similar domestic deals that could have similar effects for local consumers. But perhaps that may finally be changing, with word that the Ministry of Commerce is saying its blessing will be necessary for the newly announced mega-marriage between private car services giants Didi Chuxing and the China unit of global leader Uber. Read Full Post…
The following press releases and news reports about China companies were carried on August 6-8. To view a full article or story, click on the link next to the headline.
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Chinese Buyer Purchases UK Premier League Soccer Club West Bromwich Albion (Chinese article)
Apple (Nasdaq: AAPL) Removes Toutiao News App From China Store (Chinese article)
E-House (NYSE: EJ) Announces Shareholder Approval of Merger Agreement (PRNewswire)
Ele.me Threatens Merchants with Removal for Failure to Pay Technology Fee (Chinese article)
Tesla (Nasdaq: TSLA) EV Owner Reports First China Accident Using Self-Drive Mode (Chinese article)
Bottom line: Baidu and Tencent’s new co-investment in Bitauto’s Yixin could be followed by other similar tie-ups between the pair for assets in their non-core areas if they work well together.
Tencent, Baidu co-invest in Bitauto’s Yixin
The past week has been a turbulent time for China’s “Big 3” Internet companies, which have been thrown into uneasy partnership with the surprise mega merger between hired car services leaders Didi Chuxing and Uber’s China operations. Now a new wrinkle has emerged in an unusual story that made headlines in June, when 2 of the Big 3, Baidu (Nasdaq: BIDU) and Tencent (HKEx: 700), jointly invested in Bitauto (NYSE: BITA), a provider of car-related online services. The latest development is seeing Baidu and Tencent co-invest again in a car financing venture backed by Bitauto. Read Full Post…
Bottom line: Qihoo’s reorganization is part of its hurried bid to re-list in China to pay off backers of its privatization, while shareholders of Trina and Dangdang are likely to approve final management-led buyout offers for the 2 companies.
Qihoo rejigs in hopes of re-listing
The homeward migration of US-listed Chinese companies is in a trio of new headlines, showing that financiers are still willing to back de-listings for stronger companies. The largest of the headlines has security software specialist Qihoo 360 undergoing a major overhaul as it seeks to re-list in China, following its record-breaking privatization from New York last month. Meantime, solar panel maker Trina (NYSE: TSL) and e-commerce site Dangdang (NYSE: DANG) have also announced major advances in their own plans to privatize. Read Full Post…
Bottom line: Didi Chuxing’s new marriage with Uber China could quickly come under stress due to rivalries between the pair outside China, and might force them to forge a broader global alliance.
Didi, Uber set to clash outside China
A couple of new reports are spotlighting how the new mega-merger between Didi Chuxing and Uber’s China unit is creating uncertainty for existing global alliances involving the 2 former bitter rivals. The larger of the headlines has Uber’s US rival Lyft suddenly questioning its alliance with Didi less than a year after the pair formed the tie-up. The other has Didi helping to raise money for Grab, also known as GrabTaxi, a bitter rival of Uber that operates service in 30 cities within 6 Southeast Asian countries. Read Full Post…
Bottom line: Reports that Tencent and Baidu have withdrawn from Wanda’s O2O e-commerce venture are probably true, and the service may be quietly retired over the next 12 month due to lack of progress.
Baidu, Tencent dump Wanda’s ffan.com
Real estate giant Wanda Group may be zipping ahead with its diversification drive into entertainment, but its lower profile move into Internet services doesn’t seem to be gaining nearly as much traction. That’s my latest assessment, following new reports saying Internet giants Baidu (Nasdaq: BIDU) and Tencent (HKEx: 700) have quietly pulled out of Wanda’s high-profile foray into e-commerce announced more than a year ago. The reports are based on market talk citing some business filings that indirectly hint at such a withdrawal, which wouldn’t be too surprising. Read Full Post…
Bottom line: Qualcomm’s new licensing deal with Oppo extends a recent upbeat trend for the company in China after a yearlong retrenchment, and will be followed by more similar deals through the rest of this year.
Qualcomm in licensing deal with Oppo
Following a difficult year in China that saw it fined a record amount for anti-competitive behavior, global telecoms chip leader Qualcomm (Nasdaq: QCOM) appears to be slowing regaining its footing in the world’s largest smartphone market. That’s my interpretation of the latest headline, which has the company announcing a new chip licensing deal with Oppo, one of the market’s fastest growing smartphone makers. Word of this latest deal almost certainly came from Qualcomm itself, which is eager to show its days of trouble in China are in the past. Read Full Post…
As the latest heat wave shows no signs of easing its grip on Shanghai, our local officials are trying to provide some relief by releasing a report that shows how the city’s traffic has improved under a clean-up campaign that began in March. I was a bit skeptical on reading about the report, since it cited perceptions of improvement among city residents rather than focusing on actual numbers.
But then I thought about it some more, and realized that perceptions in this case may be equally or even more important than actual facts and figures. That’s because people’s perceptions of change are far more likely to affect their actual behavior than simply reading figures about growth in the number of tickets handed out for offences like jaywalking and running red lights. Read Full Post…
Bottom line: Didi’s merger with Uber China was driven by investor pressure to end their fierce price wars, and the newly combined company is likely to quickly reduce its subsidies and become profitable by year-end.
Didi Chuxing merges with Uber China
Just a week after reports emerged of a truce in the nonstop price wars between private car specialists Didi Chuxing and Uber China, the pair have suddenly announced a merger that will become the latest marriage of former bitter rivals in China. This latest shotgun union, which will put Didi Chuxing in the driver’s seat of the newly combined company, testifies to growing investor impatience at fierce price wars and resulting heavy losses that have become the norm in many emerging Chinese high-tech industries. Read Full Post…
Bottom line: Apple could be on the cusp of a prolonged China downturn unless it can roll out smartphones with new breakthrough technology, as it gets overwhelmed by similar Chinese models that sell for far lower prices.
Apple China sales tumble 33 pct in Q2
The latest financial report from Apple (Nasdaq: AAPL) shows the company continues to struggle as sales of its core iPhones pass their prime, and nowhere is that story more apparent than in China. The company’s Greater China sales, which also includes Hong Kong and Taiwan, fell 33 percent in its latest reporting quarter, accelerating from an already sharp drop of 26 percent in the first 3 months of this year.
The rapid decline dropped China to Apple’s third largest market globally from its former spot as the company’s second largest, with Europe taking over the number two position. Apple’s story is hardly unique, as the world’s other global leader Samsung (Seoul: 005930) has also seen a sharp reversal over the last year after its own recent rise to take the global smartphone crown. Read Full Post…
The following press releases and news reports about China companies were carried on August 2. To view a full article or story, click on the link next to the headline.
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Didi Chuxing Acquires Uber China Operation, Uber Founder to Enter Didi Board (Chinese article)
Fantasia (HKEx: 177) to Buy Wanda Commercial Property Management Arm for 2 Bln Yuan (Chinese article)
