Tag Archives: GM

China News Digest: October 13, 2016

The following press releases and news reports about China companies were carried on October 13. To view a full article or story, click on the link next to the headline.
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  • Apple (Nasdaq: AAPL) to Set Up R&D Center in Shenzhen, Bolster China Ties (English article)
  • Baidu (Nasdaq: BIDU) Forms 20 Bln Yuan Internet Project Investment Fund (English article)
  • Supermarket Operator RT-Mart Closes Stores for First Time in 19 Years (Chinese article)
  • GM (NYSE: GM) Ventures into China Car-Sharing with App Developer Investment (English article)
  • Sky-mobi (Nasdaq: MOBI) Announces Shareholder Meeting to Vote on Privatization (PRNewswire)

NEW ENERGY: BYD Seeks Jump Start With Asset Sale

Bottom line: BYD’s latest asset sale, combined with its new auto finance joint venture, are both aimed at boosting its struggling EV business, but it may have to sell off more assets before the market finally starts to gain some momentum.

BYD sells electronic component unit

Struggling electric car maker BYD (HKEx: 1211; Shenzhen: 002594) is starting to look a bit desperate, announcing a major asset sale just days after it received approval for a stalled finance joint venture aimed at boosting its sputtering sales. The approval this week for its auto finance joint venture comes as rival Geely (HKEx: 175) also has just announced its own approval for a similar stalled joint venture with France’s BNP Paribas (Paris: BNP). That indicates Beijing may be starting to worry about a broader slowdown in China’s car market after several years of breakneck growth.  Read Full Post…

CARS: SAIC Eyes Indonesia, BYD Tries Finance

Bottom line: SAIC’s foray with GM into Indonesia could stand a moderate chance of success, while BYD’s new auto financing joint venture is unlikely to provide a major boost for its stalling EV campaign.

BYD gets approved for auto finance JV

Two of China’s more innovative automakers are in the headlines today, making interesting moves as each looks to maintain growth as the domestic car market sputters. One move will see domestic leader SAIC (Shanghai: 600104) make a new attempt to move outside China with plans to open an Indonesian factory with US joint venture partner General Motors (NYSE: GM). The second move has the sputtering BYD (HKEx: 1211; Shenzhen: 002594) getting government approval to launch a vehicle finance joint venture, which could potentially help to jump-start its stalling electric vehicle (EV) program. Read Full Post…

News Digest: February 3, 2015

The following press releases and media reports about Chinese companies were carried on February 3. To view a full article or story, click on the link next to the headline.
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  • Alibaba (NYSE: BABA) Ant Financial Unit Weighs Private Placement, Valued At $50 Bln (English article)
  • WeChat Freezes Out Alipay, Sets Stage For Lunar New Year’s Red Envelope War (Chinese article)
  • Everbright Securities Agrees to Buy Hong Kong’s SHK & Co Brokerage Unit (English article)
  • GM (NYSE: GM) Confirms Indonesia Factory Plan With China’s SAIC Motor (English article)
  • BYD (HKEx: 1211) Gets Government Approval For Auto Finance JV (HKEx announcement)

News Digest: November 6, 2014

The following press releases and media reports about Chinese companies were carried on November 6. To view a full article or story, click on the link next to the headline.
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  • GM (NYSE: GM) China Sales Expand at Slowest Pace In 20 Months (English article)
  • China’s MIIT To Issue FDD-LTE 4G Licenses In December- Source (English article)
  • Gap (NYSE: GPS) Brand Surpasses 100 Stores In Greater China Region (Businesswire)
  • NetEase (Nasdaq: NTES) To Shutter Microblogging Service (Chinese article)
  • Sony (Tokyo: 6753) Mobile China Layoffs To Reach 700-800, Denies Leaving Market (Chinese article)
  • Latest calendar for Q3 earnings reports (Earnings calendar)

Bad Assets Sweet For Huarong, Sour For Saab Buyer

Huarong finds gold in bad assets

Domestic and overseas investors have been feasting on a flood of sour loans being churned out by China’s economic slowdown, mostly by buying shares in big state-run firms that try to recover money from those bad assets. In the latest wrinkle of that story, 8 major institutional buyers have spent a hefty $2.4 billion to purchase 21 percent of China Huarong Asset Management, one of the leading bad asset managers.

But bad asset management isn’t always such an easy game to play, as another group of China-backed investors is learning after their ill-advised purchase 2 years ago of insolvent Swedish car maker Saab. That group, called National Electric Vehicle Sweden AB (NEV) has declared bankruptcy, signaling an end may finally be near for the Swedish car maker that probably should have died several years ago. Read Full Post…

Regulator Clarifies Microsoft Probe, Monopoly Stance

SAIC defends anti-trust probes at rare briefing

China’s anti-monopoly regulator wants to set the record straight: Reports that Microsoft (Nasdaq: MSFT) is being probed for monopolistic behavior related to its Windows operating system and Office suite of products are incomplete. In fact, the US software giant is also being probed for monopolistic behavior related to its Internet Explorer web browser, and its media player product.

Perhaps this clarification doesn’t sound that strange to anyone outside China, but it’s actually quite unusual coming from the highly secretive State Administration for Industry and Commerce (SAIC). The regulator is one of 2 government agencies conducting a wide range of recent anti-trust probes into mostly foreign firms, raising concerns among multinationals and western governments that they are being unfairly targeted by Beijing for such probes. Read Full Post…

China Defends Probes Against Foreign Firms

Beijing answers foreign discrimination complaints

After saying little or nothing about its wave of anti-competitive probes against some of the world’s top firms, China is finally breaking the silence with its justification for actions that have targeted everyone from software giant Microsoft (Nasdaq: MSFT) to leading US car maker General Motors (NYSE: GM). The justification is coming via the state-owned English-language newspaper the China Daily, and argues that such investigations are common in the west and aren’t targeted against foreign firms. This long-overdue explanation also hints that Beijing may be worried about a potential action by the US and European Union, who may be preparing to complain to the World Trade Organization (WTO) that Beijing discriminates against western companies. Read Full Post…

GM Falls Into China’s Anti-Trust Web

GM joins list of firms being probed

A widening web of anti-trust investigations has snared one of China’s biggest overseas investors, with word that General Motors (NYSE: GM) has become the latest foreign company to be probed for monopolistic practices. News of this particular investigation shows that no one is exempt from such probes, since GM is one of China’s oldest and largest foreign investors in the automobile sector and is quite chummy with longtime partner SAIC (600104), one of Shanghai’s largest companies. Thus by potentially punishing GM, China’s anti-monopoly regulator would also be punishing a leading Shanghai company, hurting its profits and potentially slowing its growth and future investment from GM. Read Full Post…

Qualcomm, Audi In Anti-Trust Spotlight; Europe Responds

Govt worker exposed in Qualcomm anti-trust case

I’ve been writing regularly about the flood of anti-monopoly probes against western firms recently, so it seems only appropriate that I end the week with a flurry of new headlines involving cases against chipmaker Qualcomm (Nasdaq: QCOM), luxury car maker Audi (Frankfurt: VOWG), and a long-overdue response from a major western business group. In the first news bit, the anti-monopoly investigator has reportedly nabbed a government insider who was helping Qualcomm in the case against it. The second bit has media reporting the regulator is preparing to levy a large but relatively manageable fine against Audi. And the third bit has the EU’s local chamber of commerce calling on China to stop bullying its members. Read Full Post…

News Digest: August 13, 2014

The following press releases and media reports about Chinese companies were carried on August 13. To view a full article or story, click on the link next to the headline.
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  • China Probes Threaten to Squeeze Foreign Profits (English article)
  • Shanghai GM (NYSE: GM) Admits To Coming Under Anti-Monopoly Investigation (Chinese article)
  • Baidu (Nasdaq: BIDU) Sues Sohu’s Sogou For Anti-Competitive Behavior (Chinese article)
  • Phoenix New Media (NYSE: FENG) Reports Q2 Unaudited Financial Results (PRNewswire)
  • ReneSola (NYSE: SOL) Announces Second Quarter 2014 Results (PRNewswire)
  • Latest calendar for Q2 earnings reports (Earnings calendar)