A new mega-merger between China’s two largest software outsourcing firms could lay the foundation for a new global powerhouse in the lucrative IT services sector, marking the second major corporate marriage in China this year between two industry leaders. More of these kinds of marriages are sorely needed to clean up fragmented high-tech sectors marred by rampant competition, but to make that happen many of China’s most vibrant entrepreneurial companies need to lose their mom-and-pop shop mentality and learn to act more like the major corporations they aspire to become.
Tag Archives: China company stock news
News Digest: August 11-13, 2012 报摘： 2012年8月11-13日
The following press releases and media reports about Chinese companies were carried on August 11-13. To view a full article or story, click on the link next to the headline.
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- VanceInfo (NYSE: VIT), HiSoft (Nasdaq: HSFT) to Combine in Merger of Equals (PRNewswire)
- Xiaomi Mialiao Acquires MSNLite Team to Take on Tencent’s (HKEx: 700) Weixin (Chinese article)
- Dianping Lands USD 60 Mln in Fourth-Round Funding (English article)
- US Lobbyist Severs Ties With Chinese Telecom ZTE (HKEx: 763) (English article)
- Number of Delisting US-Traded China Stocks Reaches 23 Over Past Year (Chinese article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Suntech: A Company in Free-Fall 尚德电力陷入死亡漩涡
Solar pioneer Suntech (NYSE: STP) was all smiles earlier this week when it announced an important sales milestone in North America, even as its outlook continued to dim amid a major fraud case that has spawned a new class action lawsuit against the company. (lawsuit announcement) Before I get to the latest details in this case, I want to step back quickly and look at the bigger picture, which is this: Suntech looks like a company on the cusp of falling off a cliff, potentially setting the stage for an acquisition by one of its rivals or even a potential bankruptcy.
Hotels: Stability and Indigestion at the Inn 中国经济放缓未损及经济型酒店稳定运营
I don’t know if it’s coincidence, but China’s top 3 US-listed hotel operators have all released their latest quarterly results on the same day, revealing a range of issues with a broader theme that points to stability in the industry despite China’s rapidly softening economy. The results from Home Inns (Nasdaq: HMIN), China Lodging Group (Nasdaq: HTHT) and 7 Days Group (NYSE: SVN) all tell slightly different stories, as each chain faces its own different issues. Based on my quick read, China Lodging seems to look the best right now, while Home Inns struggles with its recent mega-acquisition of Motel 168 and 7 Days faces operational issues.
News Digest: August 10, 2012 报摘： 2012年8月10日
The following press releases and media reports about Chinese companies were carried on August 9. To view a full article or story, click on the link next to the headline.
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- Online Price Wars to Wrap Up Soon: Dangdang (NYSE: DANG) CEO (Chinese article)
- 7 Days Group (NYSE: SVN) Announces Unaudited Q2 Financial Results (PRNewswire)
- China Lodging Group (Nasdaq: HTHT) Reports Q2 Financial Results (Globe Newswire)
- Bernstein Liebhard Announces Securities Class Action Against Suntech (NYSE: STP) (PRNewswire)
- China to Subsidies Appliances to Lift Consumption (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
“Titanic” Director Splashes Into China 知名导演卡梅隆进军中国
Hollywood’s growing love affair with China continues to steam ahead with word that James Cameron, director the blockbusters “Titanic” and “Avatar”, is setting up a joint venture in the city of Tianjin. Unlike the growing number of Hollywood companies that have flocked to China this year, Cameron’s venture won’t offer any mass-market products to consumers and instead will focus on supplying technology to Chinese filmmakers to help them make more 3D moves.
Caterpillar Joins China Export Crawl 卡特彼勒加入中国装备出口潮
US construction equipment giant Caterpillar (NYSE: CAT) is taking an interesting new direction in China, following in the path of a growing number of firms that once relied on domestic sales but are now turning their attention to exports to offset a slowing home market. China’s big domestic car makers like Chery and Geely (HKEx: 175) have also increasingly looked to exports to offset their rapidly slowing sales at home, where they face not only weakening demand but also stiff competition from more experienced foreign competitors like GM (NYSE: GM) and Volkswagen (Frankfurt: VOWG).
SMIC: Respectable Earnings, But No Respect 中芯国际：收益可观，但不被追捧
Investors once held out big hopes for China’s biggest chip maker SMIC (HKEx: 981; NYSE: SMI) when it went public back in 2004, but reaction to its latest earnings continue their more recent indifference to this giant that seems unable to earn respect from anyone. That’s my main conclusion after SMIC released second-quarter results that showed an encouraging return to profitability, as well as third-quarter guidance that looked stable despite the weaker Chinese and global economies. SMIC’s US-traded shares were largely unchanged after the report came out, dipping 1.6 percent and reflecting to me what looks like investor indifference over this disappointing giant that once held so much potential.
News Digest: August 9, 2012 报摘： 2012年8月9日
The following press releases and media reports about Chinese companies were carried on August 9. To view a full article or story, click on the link next to the headline.
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- Caterpillar (NYSE: CAT) Exporting China-Made Goods (English article)
- Xiaomi to Launch Smart TV – Industry Source (English article)
- Director James Cameron Takes 3D Film Venture to China (English article)
- SMIC (HKEx: 981) Announces Q2 Results (HKEx announcement)
- Battery Maker Boston-Power to Supply Battery Systems to BAIC (Businesswire)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Banks: Citi Grows, ICBC Tries Dim Sum 花旗推积极扩张计划 工行首发点心债
Beijing’s new openness to global banks is leading a growing number of foreign lenders to test the China market, with US giant Citigroup (NYSE: C) becoming the latest to announce an aggressive expansion plan to tap the new open atmosphere. At the same time, China’s own banks are continuing their own global expansion by offering a wider array of yuan-denominated services to foreign investors, with leading bank ICBC (HKEx: 1398; Shanghai: 601398) making its first major offering of so-called dim sum bonds in Hong Kong. The 2 trends are both part of China’s efforts to build a world-class financial services industry as it tries to wean its banks from their history of policy-based lending to big state-owned enterprises and make them more commercially driven.
China Mobile Tie-Ups: Apple Near, Cable Far 中国移动可能很快与苹果合作 推出固网宽带业务尚需时日
Just a day after I wrote about the latest mixed signals coming from China Mobile (HKEx: 941; NYSE: CHL), we’re getting still more mixed messages from China’s largest wireless telco, including an exciting one that indicates a highly anticipated new tie-up with Apple (Nasdaq: AAPL) could come soon. While the Apple tie-up would be highly welcome, another unrelated development appears to indicate that a deal that would have seen China Mobile link up with China’s new national cable TV operator may fail to materialize.
