The following press releases and media reports about Chinese companies were carried on June 9. To view a full article or story, click on the link next to the headline.
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Bottom line: The strong reception for Huaitai Securities’ Hong Kong IPO reflects growing international investor appetite for Chinese stocks, which could help to lift shares of New York-traded Chinese companies like newly listed Baozun and eHi.
Baozun turns in choppy IPO
A flurry of IPO news is reflecting the growing attraction of listing closer to home for Chinese firms, whose New York-traded shares have languished these days due to lack of familiarity by local investors. Two new US-based listings have performed reasonably well but not spectacularly, led by modest gains for newly listed shares of web design services firm Baozun (Nasdaq: BZUN) in their trading debut. At the same time, recently listed rental car company eHi (NYSE: EHIC) raised a modest amount of money in a secondary offering, again reflecting tepid investor interest in its story.
While those 2 listings got so-so receptions, the response was far stronger for Huatai Securities, China’s fourth largest brokerage, whose shares priced at the top of their range as Hong Kong investors scrambled to buy into the mainland’s ongoing stock market boom. Read Full Post…
Bottom line: Orient Securities IPO should price and debut strongly on strong sentiment towards brokerages, which should perform well over the short- to medium-term if China’s broader economy continues to slow.
Orient Securities IPO draws strong interest
Despite new uncertainties about their future, Chinese brokerages continue to remain a hot ticket as investors bet they’ll benefit from a booming domestic stock market and new business from a pilot program allowing more foreigners to buy Chinese stocks. That’s my assessment following word that the biggest domestic IPO since 2011, from Orient Securities, has been massively oversubscribed by a factor of more than 90. Put another way, some $150 billion worth of investor money is chasing the $1.6 billion offering, meaning barely 1 in 10 investors will be able to get any shares. Read Full Post…
Bottom line: Chinese brokerages will embark on a buying binge for targets in Hong Kong and debt-strapped European countries, with as many as 3 or 4 more deals likely this year after Everbright’s purchase of SHK Financial.
Everbright buys HK brokerage
Everbright Securities (Shanghai: 601788) is joining the list of Chinese brokerages that have suddenly become quite acquisitive, with word that it will buy the brokerage arm of Hong Kong real estate giant Sun Hung Kai (HKEx: 16). Everbright’s move comes amid a flurry of other activity that has seen Chinese brokerages forge new tie-ups and raise big funds for M&A as they seek to expand abroad. Hong Kong looks set to emerge as one of the most popular targets for new tie-ups, thanks to its status as a crossroads between the Chinese and international investment communities. Read Full Post…
Bottom line: Chinese brokerages are in a fund-raising frenzy to take advantage of strong market sentiment, but their shares could pull back sharply in the second half of next year if China’s stock market rally runs out of steam.
Guosen shares soar in trading debut
It’s hard to read the financial headlines these days without seeing a story about the massive recent rally in Chinese brokerage stocks, which is being fueled by several factors. The brokerages themselves haven’t been blind to the fact, and are racing to take advantage of the positive sentiment to raise big chunks of new cash. Now leading brokerage Citic Securities (HKEx: 6030; Shanghai: 600030) and mid-sized player Guosen (Shenzhen: 002736) have joined the binge, with new share issues that could end up collectively raising up to $6.5 billion. Read Full Post…
Bottom line: Haitong’s purchase of a Portuguese investment bank marks the start of a new wave of cross-border tie-ups in the financial services sector, which could fuel a rally in stocks of Chinese brokerages.
Haitong eyes Portuguese investment bank
A new wave of Sino-foreign tie-ups in the financial services arena could be taking shape, with word that China’s Haitong Securities (HKEx: 6837; Shanghai: 600837) is in talks to buy a Portuguese investment bank. I predicted just a couple of weeks ago that such a wave of tie-ups could be coming, following the launch of a historic Hong Kong-Shanghai financial link that will give average western and Chinese investors access to each other’s stock markets for the first time. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 25. To view a full article or story, click on the link next to the headline.
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Carrefour (Paris: CA) Launches Convenience Store Brand In China (Chinese article)
JD.com (Nasdaq: JD) To Invest 2 Bln Yuan In Dongguan Operations Center (English article)
China Buying REC Solar (Norway: RECSOL) For $640 Mln Avoids Trade Spat (English article)
What previously looked like an exciting Hong Kong IPO by CICC, China’s earliest homegrown investment bank, is rapidly losing its luster, with word that the company’s Chairman Jin Liqun is leaving the company. His departure, which was first rumored earlier this month, comes just a week after Levin Zhu, CEO of the company formally known as China International Capital Corp, also resigned to reportedly pursue a start-up in the hot area of Internet finance. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 18-20. To view a full article or story, click on the link next to the headline.
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Taiping, Sinopec (HKEx: 386) in $800 Mln Shanghai FTZ Financial Leasing JV (English article)
Apple (Nasdaq: AAPL) Looks for Big Screen Boost as iPhone 6 Hits China (English article)
China’s Wanda Cinema Line Makes Fresh IPO Bid With Govt Regulator (English article)
Warner Bros, Brett Ratner Cut Deal To Create Chinese Investment Fund (English article)
The following press releases and media reports about Chinese companies were carried on July 22. To view a full article or story, click on the link next to the headline.
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Yum (NYSE: YUM), McDonald’s Apologize As New China Food Scandal Hits (English article)
Mobile Internet Users Pass Desktop Users For First Time – CNNIC (Chinese article)
Huawei’s H1 revenue Up 19 Percent Year-On-Year At $22 Bln (English article)
The following press releases and media reports about Chinese companies were carried on April 15. To view a full article or story, click on the link next to the headline.
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