Vipshop Joins M&A Club, New Fund-Raising Coming?

Vipshop makes first major acquisition

The group of big Chinese web firms driving a recent wave of M&A has a new member, with word that fast-rising e-commerce site Vipshop (NYSE: VIPS) has made its first major acquisition. The move marks the latest step in consolidation in China’s overheated e-commerce sector, which is crowded with around a half dozen major players and many smaller ones that are mostly losing money. Vipshop is one of the few players that is quite profitable, even though it doesn’t have a huge cash pile as it spends heavily to quickly build up its business. That leads to my next prediction that we could see the company raise some money soon through a share or bond sale, as it seeks to build up a war chest to help fund future acquisitions. Read Full Post…

Weibo: China Tech Execs Work, Play In US Over New Year

China tech execs spend holidays in US

China was closed for much of last week, but that didn’t some of its top tech executives from emitting a steady stream of tweets on their microblogs regaling followers with tales of their travels over the Lunar New Year holiday. The US emerged as the travel destination of choice for many who favored a destination that has been quite generous towards their sector over the last few months.

Regular tech readers will know I’m talking about the huge success of 5 major Chinese Internet IPOs in New York, many of which have nearly doubled in value since their trading debuts in the last 2 months of 2013. Executives at JD.com, China’s second largest e-commerce company, are hoping to ride that wave of positive sentiment with another New York IPO this year. That pending deal saw one JD.com executive complain of having to take part in a late-night teleconference during the Lunar New Year holiday that I suspect was connected to that upcoming listing. Read Full Post…

News Digest: February 2-7, 2014

The following press releases and media reports about Chinese companies were carried on February 2-7. To view a full article or story, click on the link next to the headline.
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  • Alibaba Rival JD.com Files For US Listing (English article)
  • Sony (Tokyo: 6753), Lenovo (HKEx: 992) Mull Vaio JV: Report (English article)
  • Non-U.S. Companies Raise $10.5 Bln Through Depositary Receipts in 2013 (Businesswire)
  • KFC Parent Yum (NYSE: YUM) Says No Bird Flu Hit To China Sales (English article)
  • Suntech (OTC: STPFQ) Reaches Agreement Related To Chapter 7 Bankruptcy (PRNewswire)
  • Gree (Shenzhen: 000651) Expands Dehumidifier Recall To More Models Sold In US, Canada (Businesswire)

ZTE Aims At Xiaomi With “Nubia Cool”

ZTE’s nubia chases “cool” image

I was somewhat amused today to read an announcement from stodgy domestic smartphone maker ZTE (HKEx: 763; Shenzhen: 000063) trumpeting the success of a “cool” new online campaign for its high-end brand of nubia smartphones. But after giving the matter some thought, I do have to compliment ZTE for its new approach to create some buzz around its smartphones, which currently enjoy a reputation as dependable but also quite stodgy and low-end products. Most Chinese refer to phones from domestic names like ZTE, Huawei and Lenovo (HKEx: 992) as guochan, literally meaning “made in China,” which carriers distinctively negative overtones for inferior quality and lack of imagination. ZTE is clearly trying to cast off that image for its nubia line with this new China-based campaign. Read Full Post…

Solar Christmas: LDK Gets Coal, Trina Gets JV

New hearing ordered in LDK-Canadian Solar dispute

I thought I’d get into the Christmas spirit in this first work day after Thanksgiving in the US, so let’s take a look at what solar panel makers LDK (NYSE: LDK) and Trina (NYSE: TSL) are getting in their holiday stockings with the latest company news reports. It seems the struggling LDK won’t be getting much, with word that a Chinese court has added further delays to a case where it is owed $40 million in a business dispute with rival Canadian Solar (Nasdaq: CSIQ). The news looks a bit better for Trina, whose Christmas stocking is filled with another smaller solar company that it is acquiring as the industry consolidates. Read Full Post…

Microsoft Looks To State For New China Skype Partner

Skype ties up with Guangming Founder

I really would like to compliment Microsoft (Nasdaq: MSFT) from time to time for its China strategy, since I personally have no objections with the world’s largest software maker in general. But it’s often difficult to find anything positive to say about Microsoft’s strange decisions in China, and that’s certainly the case with the latest news about its choice of new local business partner for its Skype instant messaging service. Microsoft made headlines earlier this month when it dissolved a longstanding China tie-up for Skype without naming a new partner for the service; now it has formally chosen new partners in 2 stodgy state-run enterprises, Guangming Daily and Founder Group. Read Full Post…

Chinese Firms Under Fire For Opaqueness, Secrecy

Chinese firms blasted for lack of transparency

I had to smile when I read a new report that levels harsh criticism at Chinese firms for their lack of transparency, since anyone who lives and works in China knows that this kind of opaqueness is rampant in China’s secretive corporate culture. It’s interesting to note that the report takes aim at China’s state-run corporate sector, where transparency is almost a dirty word and publicly traded giants like China Mobile (HKEx: 941; NYSE: CHL) and PetroChina (HKEx: 857; Shanghai: 601857; NYSE: PTR) justify their stance by hiding behind their powerful and well-connected state-owned parents. But China’s publicly listed companies that come from the private sector are also often guilty of similar sins, with company founders often using their firms as personal fiefdoms. Read Full Post…

Alibaba Joins Internet TV Crowd

Alibaba, Skyworth join Internet TV lineup

Internet TV is fast becoming the flavor of the day for China’s leading Internet and gadget companies, with word that e-commerce giant Alibaba has now entered the field through a new tie-up with TV maker Skyworth (HKEx: 751). The news comes just a week after online search leader Baidu (Nasdaq: BIDU) announced its own similar tie-up with TCL Multimedia (HKEx: 1070), another leading TV maker, and following other similar recent product roll-outs by names like smartphone maker Xiaomi, video content provider LeTV (Shenzhen: 300104) and PC giant Lenovo (HKEx: 992). Read Full Post…

Baidu Tackles Internet TV, Youku Next?

Baidu, TCL in reported Internet TV tie-up

In the latest signal of the growing popularity of Internet TV, leading search engine Baidu (Nasdaq: BIDU) is reportedly preparing a tie-up in the space to promote its iQiyi online video service with top domestic TV maker TCL Multimedia (HKEx: 1070). The rapid growth in this area over the last year has been quite interesting to watch, as a number of major private companies have been piling into the space with new Internet-based offerings in a bid to challenge China’s notoriously slow and uncreative traditional TV sector. Read Full Post…

Xiaomi Joins $10 Bln Club

Xiaomi valuation hits $10 bln

Froth in company valuations seems to be building once again in China’s high-tech realm, with word that up-and-coming smartphone maker Xiaomi’s latest fund raising values the company at more than $10 billion. The last time I wrote about such a rapidly rising valuation was about 2 years ago when an investor in high flying e-commerce site Jingdong proclaimed that company was also worth more than $10 billion. Jingdong’s value later came down considerably, and I wouldn’t be surprised if Xiaomi’s latest valuation is also just a bit too high on too much investor enthusiasm about this company that is growing fast but also playing in a very competitive market. Read Full Post…

News Digest: July 18, 2013

The following press releases and media reports about Chinese companies were carried on July 18. To view a full article or story, click on the link next to the headline.
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