The slow-motion collapse this week of HSBC’s (HKEx: 5; London: HSBA) plans to sell its stake in Ping An Insurance (HKEx: 2318; Shanghai: 601318) is shining a harsh spotlight on the big role that politics can play in deals involving major Chinese companies. The case is particularly interesting because it also shows how this kind of Chinese politics can quickly cost investors billions of dollars, since Ping An’s shares have dropped sharply as it looks increasingly likely the deal will collapse. Ping An’s Hong Kong-listed shares lost more than 6 percent of their value early this week after news of the deal’s potential collapse first emerged, though they’ve regained some of the ground since then.
Tag Archives: China Development Bank
News Digest: January 9 报摘：2013年1月9日
The following press releases and media reports about Chinese companies were carried on January 9. To view a full article or story, click on the link next to the headline.
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- Yum Brands (NYSE: YUM) Warns China Sales Fell More Than Expected (English article)
- Apple (Nasdaq: AAPL) CEO Tim Cook In China For Another Visit (Chinese article)
- MIIT Issues Draft For MVNO Service Trials (English article)
- China’s CDB Wavers On Funding HSBC’s Ping An (HKEx: 2318) Stake Sale: Sources (English article)
- Dangdang (NYSE: DANG) To Reduce Focus On 3C, Apparel (English article)
CDB, China Gas Power More Energy 中国企业持续进行能源并购交易 M&A
Just a week after Canada approved the $15 billion purchase of oil exploration firm Nexen (Toronto: NXY) to Chinese rival CNOOC (HKEx: 883; NYSE: CEO), we’re seeing a couple of interesting new M&A deals in the energy sector, one involving policy lender China Development Bank and the other from Hong Kong-listed China Gas (HKEx: 384). The common theme is that many Chinese energy investors are relatively flush with cash right now, and are looking for bargains in a global sector where asset prices have become depressed due to lingering effects of the global downturn. But that said, these 2 deals are both quite different, with the first most likely being driven at least partly by Beijing while the latter looks like a more traditional private sector deal.
News Digest: December 18 报摘： 2012年12月18日
The following press releases and media reports about Chinese companies were carried on December 18. To view a full article or story, click on the link next to the headline.
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- Alibaba, Sina (Nasdaq: SINA) Microblog Resume Investment Talks – Source (English article)
- Apple (Nasdaq: AAPL) iPhone 5 First Weekend Sales in China Top 2 Mln (Businesswire)
- Gateway In Merger Negotiations with HK-Listed Affiliate of China Development Bank (Businesswire)
- Tencent’s (HKEx: 700) WeChat User Base to Reach 300 Mln in Early 2013 (English article)
- China Mobile (HKEx: 941) To Launch Dual-Use Business Service For LTE in HK (Chinese article)
ZTE Gears Up For Govt Hand-Outs 中兴积极准备获得政府支持
Having been locked out of the US and worried about the potential for similar problems in Western Europe, struggling telecoms equipment maker ZTE (HKEx: 763; Shenzhen: 000063) is fighting back by doing what it knows best: taking free money from Beijing. I don’t want to sound too negative here, but this latest deal between ZTE and China Development Bank is exactly what ZTE should NOT be doing, at least if it ever wants to convince the world that it’s a serious commercial company. But perhaps the company simply doesn’t care anymore what others think, and there’s also the very real possibility that ZTE is simply fighting for its very survival at this point.
News Digest: December 5 报摘： 2012年12月5日
The following press releases and media reports about Chinese companies were carried on December 5. To view a full article or story, click on the link next to the headline.
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- US Charges ‘Big Four’ Accountants Over China (English article)
- ZTE (HKEx: 763) Forms Strategic Tie-Up With China Development Bank (HKEx announcement)
- Nokia (Helsinki: NOK1V), China Mobile (HKEx: 941) In Lumina 920 Deal -Source (English article)
- Tencent (HKEx: 700) Microblog Adds Intelligent Keyword Search Feature (English article)
- Jingdong Mall, Winekee Partner with French Wine Estates (English article)
China Powers Ming Yang in India 中国明阳风能印度动向
With its new energy sector tottering on the brink of collapse, China no longer seems to care if foreign government accuse it of unfairly supporting its sector with low cost loans and other state subsidies. That at least appears to be the message from a new plan by Ming Yang Wind Power (NYSE: MY), which has just announced a massive new tie-up with policy lender China Development Bank to provide financing for wind power projects in India. (company announcement)
News Digest: November 27 报摘： 2012年11月27日
The following press releases and media reports about Chinese companies were carried on November 27. To view a full article or story, click on the link next to the headline.
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- Renault (Paris: RENA) Plans China Car Venture With Dongfeng (HKEx: 489): Reports (English article)
- Starbucks (Nasdaq: SBUX) Strengthens China Commitment With 100th Beijing Store (Businesswire)
- Shanda Sells Nut Shell to Mobile Internet Company (English article)
- 11 Group Buying Sites Close in October, Pace of Bankruptcies Slows (Chinese article)
- Ming Yang (NYSE: MY) In Financing Framework Deal With Reliance, China Dev Bank (PRNewswire)
News Digest: November 10-12 报摘： 2012年11月10-12日
The following press releases and media reports about Chinese companies were carried on Nov 10-12. To view a full article or story, click on the link next to the headline.
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- China Telecom (HKEx: 728) Tests FDD-LTE Network in Guangzhou – Source (English article)
- BYD (HKEx: 1211), China Dev Bank Offer Financing for Public Transport EVs (Businesswire)
- Signs Point to Imminent Release of Amazon’s (Nasdaq: AMZN) Kindle in China (Chinese article)
- HiSoft (Nasdaq: HSFT), VanceInfo (NYSE: VIT) Announce Completion of Merger (PRNewswire)
- Hollywood Magic Put to Work in China With “Enders Game” Participation Deal (English article)
- Latest calendar for Q3 earnings reports (Earnings calendar)
LDK Joins State-Led Solar Bail-Out 江西赛维加入政府主导的救助行列
The nascent state-led bailout of China’s struggling solar industry has taken another step forward with word that LDK (NYSE: LDK) has just sold a big chunk of itself to a partly state-owned consortium for enough cash to perhaps fund its operations for another month or 2. This new rescue package values LDK at just $140 million, which is probably still too high a figure for one of China’s weakest solar panel makers in an industry where everyone losing big money due to a huge supply glut.
Solyndra Lawsuit: War of the Solar Dead Solyndra发难 光伏业者拼个你死我活
The fight for survival among the world’s embattled solar panel makers is starting to look more like a battle of the dead, with word that bankrupt US player Solyndra is suing 3 of its biggest Chinese rivals over allegations of running an illegal cartel. (English article) Some of you might be saying: “Wait a minute, doesn’t Solyndra have better things to do than to be filing lawsuits against rivals who are also flirting with bankruptcy?” If that’s the question, then the answer appears to be “no”. Perhaps the failed Solyndra is still seeking some final respect, and also perhaps some money through a quick settlement of this lawsuit to repay a long list of creditors that includes the US government.
