It may be a holiday in China, but there’s been no break in an increasingly entertaining war of words between 2 prominent short sellers and the US-listed Chinese firms they have been targeting in credibility-related attacks for more than a year now. The latest chapter in this saga has seen educational services firm New Oriental (NYSE: EDU), the most recent company to come under attack, just release a report saying an investigation by independent auditors found no evidence of wrongdoing related to allegations raised by short seller Muddy Waters. (company announcement) But as it released its report, Muddy Waters itself fired back by attacking one of New Oriental’s independent auditors, who just happens to be China’s richest man and the founder of leading search engine Baidu (Nasdaq: BIDU), Robin Li.
Tag Archives: China company stock news
China Gets Serious on Solar Energy 中国政府开始拯救光伏行业
After talking for much of the past year about plans to develop its solar power industry, Beijing may finally be starting to transform its words into action based on the latest signals coming from mid-sized panel maker JA Solar (Nasdaq: JASO) and an unusual move by leading US manufacturer First Solar (Nasdaq: FSLR). These 2 developments are interesting from a number of angles, as they could provide a welcome lifeline to the struggling global solar panel sector and also help to diffuse trade tensions with the west, which accuses China of unfairly subsidizing its industry. But before those tensions can really ease, Beijing will have to show it won’t favor its own solar panel makers in bidding for new China-based projects at the expense of western rivals. It will also have to take more concrete steps to wean its sector from the kinds of unfair subsidies behind the western complaints, including policies like low interest loans and export rebates.
BYD: A Sinking Ship? 比亚迪陷入下沉漩涡？
Billionaire investor Warren Buffett must certainly be wondering about his 2008 decision to buy 10 percent of sputtering car maker BYD (HKEx: 1211; Shenzhen: 002594), which is starting to look like the proverbial sinking ship after the recent defection of 2 key top executives. After seeing his $232 million investment soar by many multiples in the 2 years after he bought it, Buffet has seen his BYD shares have come crashing back to earth in the last 2 years after the company’s core car making business stumbled badly. Meantime, BYD founder and visionary Wang Chuanfu continued to try to sell investors on a longer term vision of building his company into an electric vehicle powerhouse of the future, even as BYD has had to implement massive layoffs and its profits have fallen to nearly zero.
News Digest: September 28, 2012 报摘： 2012年9月28日
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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- BYD (HKEx: 1211) in New Jam as Founder Jumps (English article)
- CNOOC (HKEx: 883) Confident on Nexen (Toronto: NXY) Deal After Canada Talks (English article)
- China Mobile (HKEx: 941) to Start TD-LTE Terminal Procurement (English article)
- Hollywood Supports Taobao Removal From Black List, Apparel Makers Oppose (Chinese article)
- Nike’s (NYSE: NKE) Earnings And China Orders Fall (English article)
7 Days to Privatize, Who’s Next? 7天连锁酒店股东团提出私有化要约
In a theme that is rapidly gaining momentum, yet another US-listed Chinese firm has announced a new privatization bid to capitalize on valuations that have been pushed to rock-bottom levels amid a broader investor confidence crisis. The newest management-led buyout offer from 7 Days Group (NYSE: SVN), the smallest of China’s 3 publicly listed budget hotel operators, follows a string of similar moves that have seen other US-listed Chinese companies, including Shanda Interactive and Focus Media (Nasdaq: FMCN), make similar moves. So perhaps the more interesting question is: who are the most likely companies to launch similar privatization bids, as investors can clearly make some quick money if they can answer this question correctly.
Japan Clash Hits China Auto Partners 钓鱼岛争端冲击日本车企中方合作夥伴
Much is being written about the beating that Japanese automakers are taking as a result of the territorial spat between China and Japan over a small island chain, but Chinese joint venture partners of Toyota (Tokyo: 7203), Honda (Tokyo: 7267) and Nissan (Tokyo: 7201) are also suffering lower-profile fallout due to the conflict. The current clash over the island chain claimed by both China and Japan casts a spotlight on the smoldering uneasiness between these 2 regional superpowers that is likely to haunt not only automakers but also all Japanese companies operating in China for at least the next few decades. And it also underscores that these companies need to take steps to lessen the impact, such as introducing brands for the China market that aren’t so easily identifiable as Japanese and thus are less likely to be targeted by angry Chinese consumers each time a conflict occurs.
News Digest: September 27, 2012 报摘： 2012年9月27日
The following press releases and media reports about Chinese companies were carried on September 27. To view a full article or story, click on the link next to the headline.
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- Yum (NYSE: YUM) China Celebrates 25th Anniversary and 4,000th KFC Restaurant (Businesswire)
- Lawmakers Press For Broader Restraints on China Solar Imports (English article)
- Alibaba’s AliCloud to Cooperate with Knock-off Handset Makers – Source (English article)
- 7 Days Group (NYSE: SVN) Announces Privatization Proposal at $12.70 Per ADS (PRNewswire)
- Japan Automakers Slow Output in China Amid Darkened Outlook (English article)
China Telecom: French Tie-Up Coming? 中国电信与法国电信结盟初露曙光
Beijing has been sending a steady stream of signals this year indicating it will soon open up its telecoms services market to foreign operators, and it’s looking more and more look like the first big tie-up that will come from this new openness could well be between China Telecom (HKEx: 728; NYSE: CHA) and France Telecom (Paris: FTE). I should be clear here that I don’t have any insider news about such a tie-up, but a growing number of low-key signals indicate a close relationship is fast developing between France’s leading telco and the smallest of China’s 3 major wireless carriers that could soon result in a major announcement.
M&A: Lenovo Slows, Suning Surges 并购：联想集团减速 苏宁加速
Some interesting signs are coming from 2 major Chinese tech firms on the M&A front, with PC leader Lenovo (HKEx: 992) signaling it may finally slow down its acquisition frenzy, even as e-commerce aspirant Suning (Shenzhen: 002024) sends the opposite message with its announcement of a new major purchase. The news from Lenovo would represent a welcome break from the company’s steady stream of acquisitions, which look destined to give the company some major indigestion as it tries to digest such a wide array of assets in a number of very different markets. Meantime, Suning’s purchase of an e-commerce site targeting infants and toddlers isn’t too worrisome by itself, but from a broader perspective also reveals a company trying to grow too big too quickly.
No Buyers for China Mobile Games IPO 中国手游上市无买家
A major catalyst is clearly needed to thaw the current frigid market for US-listed Chinese stakes, but unfortunately the newly listed China Mobile Games (Nasdaq: CMGE) was not what investors were seeking. Meantime in other Internet news, video sharing leader Youku Tudou’s (Nasdaq: YOKU) first major strategy announcement since closing its historic merger a month ago has also failed to inspire investors, who are already running out of patience with the company.
News Digest: September 26, 2012 报摘： 2012年9月26日
The following press releases and media reports about Chinese companies were carried on September 26. To view a full article or story, click on the link next to the headline.
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- Lenovo (HKEx: 992) to Cease Acquiring Hardware Companies (English article)
- China Mobile Games (Nasdaq: CMGE) Lists, No Trade on 1st Day Due to Price Gap (Chinese article)
- Tudou (NYSE: YOKU) Revamps Homepage, Introduces New Content, Product Innovations (PRNewswire)
- China’s Suning (Shenzhen: 002024) Widens Product Line With Infant Goods Website (English article)
- Ctrip (Nasdaq: CTRP) Completes Offering of $180 Million of Convertible Senior Notes (PRNewswire)
