A yearlong explosion in new financial services from non-financial companies took a pause last week, when the central bank put the brakes on a plan by Internet giants Alibaba and Tencent (HKEx: 700) to offer virtual credit cards in partnership with Citic Bank (HKEx: 998). The sudden rush into financial services by private firms has provided some much-needed competition for China’s stodgy traditional lenders, most of which are state-run banks noteworthy for their lack of innovation. Read Full Post…
I wasn’t historically a big fan of JD.com, China’s second largest e-commerce firm, largely because it often seemed more interested in hype than actually doing good business. But the company’s recent tie-up with Internet giant Tencent (HKEx: 700), and now the latest word of a new partnership with more than 10,000 convenience stores, have me thinking that perhaps JD has finally matured a bit in the run-up to a planned New York IPO to raise up to $1.5 billion. This latest convenience store tie-up looks quite shrewd for a number of reasons, most notably because it takes aim at one of the biggest weaknesses of its chief rival, leading e-commerce firm Alibaba. Read Full Post…
I’ve refrained from writing before about Shanghai’s ongoing brouhaha over taxi apps, mostly because it seemed too local and didn’t have any broader significance beyond the unruly adoption of a new technology. But Shanghai’s latest move forbidding cabbies from taking new orders while they still have passengers seems worth writing about, as it speaks to a broader issue that looks like simple greed at first but is really a much larger part of the modern Chinese psyche. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 18. To view a full article or story, click on the link next to the headline.
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Pudong Development Bank (Shanghai: 600000) To Acquire Shanghai Trust (Chinese article)
Central Bank Releases Third-party Payment Draft Regulations (English article)
Alibaba to Invest in Sinopec’s (HKEx: 386) Sales Subsidiary – Sources (English article)
As Giant US IPO Nears, Alibaba’s China E-commerce Crown Slips (English article)
Giant Interactive (NYSE: GA) Enters Into Agreement For Privatization (PRNewswire)
All my previous predictions that e-commerce leader Alibaba would ultimately make its mega IPO in Hong Kong were wrong, with word that the company is now firmly fixed on New York for its highly anticipated share sale. In my defense, I should say that a huge surge in positive sentiment over the last 5 months towards China Internet stocks on Wall Street undoubtedly helped to change Alibaba’s mind. The company had previously stated on numerous occasions that Hong Kong was the preferred venue for its blockbuster IPO, which reports are now saying could raise up to $15 billion, making it the world’s biggest Internet offering since Facebook (Nasdaq; FB) raised $16 billion in 2012. Read Full Post…
I have a lot of respect for Tencent (HKEx: 700), China’s largest Internet company and now one of the world’s most valuable web firms based on the meteoric rise in its stock over the last few years. But that said, I’m starting to have some concerns about the company’s future due to its sudden move into many unfamiliar areas, including the latest which reportedly has it looking to buy a cellphone maker. In a somewhat ironic twist, Tencent’s cellular foray would come just a couple of months after Google (Nasdaq: GOOG), the world’s largest Internet company, admitted failure with its own cellphone adventure by selling its Motorola Mobility unit at a major loss.
The following press releases and media reports about Chinese companies were carried on March 15-17. To view a full article or story, click on the link next to the headline.
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Sina (Nasdaq: SINA) Weibo Files For $500 Mln US IPO (English article)
Central Bank Halts Virtual Credit Cards Of Alibaba, Tencent (HKEx: 700) (English article)
Alibaba To Submit IPO Application As Early As April – Sources (Chinese article)
Mobile E-commerce Site Maimaibao Gets $200 Mln Funding – Sources (English article)
Tencent (HKEx: 700) Shuts Group Of WeChat Public Accounts For Violations (Chinese article)
Sales and marketing executives at China’s leading brands are almost certainly losing sleeping these last few nights, as they prepare for the Consumer Rights Day annual assault by state media each year on March 15. To their credit, Chinese media are usually relatively unbiased in choosing the subjects for their attacks, focusing on anyone with a big, recognizable brand name. But that often means the big multinational consumer brands are some of the easiest targets, since many are well known and highly respected by Chinese consumers. China executives from many of those companies will probably be spending this Saturdays in front of their TVs waiting to see if they’ve been targeted under a new attack this year. Read Full Post…
The list of traditional retailers suffering from the e-commerce challenge has gained a new member, with domestic giant Wumart (HKEx: 1025) reporting its profit for 2013 fell for the first time in 5 years. It’s noteworthy to point out the last time Wumart’s profit fell was at the height of the global financial crisis in 2008, when the reasons for the downturn were sudden and severe but also relatively short-term. This time the reasons are much more gradual and signal a longer term decline for traditional retailers like Wumart, which are facing an unprecedented challenge from big e-commerce names like Alibaba, JD.com and Amazon China (Nasdaq: AMZN). Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 14. To view a full article or story, click on the link next to the headline.
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I have to credit telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) for chasing an interesting new idea, following reports that it’s preparing to launch a gaming console later this month. Such a plan plays to ZTE’s telecoms strength, since such consoles are almost inevitably connected to the Internet these days and are rapidly merging with a similar group of Internet TV set-top boxes. But that said, I have some serious doubts about the chances of success for this new foray, due to the company’s late arrival to the space, and also because I question its choice of venture partner, faded online game operator The9 (Nasdaq: NCTY). Read Full Post…
