Earlier this week I made a disclaimer about personal ties when I wrote about the latest privatization of a US-listed Chinese firm, and now I’ll make a similar disclaimer for this post about the latest talk of a strategic investment by Yale University in home appliance maker Gree (Shenzhen: 000651). My personal interest in the story comes from the fact that I graduated from Yale many years ago, so anytime I see news of its activities in China I’m naturally interested. But if it’s true, this case could also hint that conservative big western institutional buyers may be eying more direct investments in China. Word of this deal follows news of a similar investment last year by a major western pension fund in JD.com, China’s second largest e-commerce company. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 21. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Tencent (HKEx: 700) In Talks For 6 Pct Of JD.com, No Agreement Yet (Chinese article)
InterDigital (Nasdaq: IDCC) Says Won’t Charge High Royalty Fees To Chinese Firms (Chinese article)
Genetically Modified Ingredients Found In KFC (NYSE: YUM) Soy Milk (Chinese article)
The following press releases and media reports about Chinese companies were carried on February 2-7. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Traditional Chinese appliance makers are showing a sudden interest in moving outside their usual comfort zone, with word that sector giant Midea (Shenzhen: 000333) is applying for a banking license. Midea joins a fast-growing queue that has seen rivals Haier (HKEx: 1169) and Gree (Shenzhen: 000651) make similar moves outside their traditional areas, in what looks to me like a typical herd mentality that one often sees in Chinese industries.
In this case the urgency to diversify doesn’t seem that critical, since I don’t expect consumer demand for big appliances like air conditioners and refrigerators to fade anytime soon. That contrasts sharply with a parallel diversification drive in the traditional retailing sector, where companies like electronics seller Gome (HKEx: 493) and supermarket operator Wumart (HKEx: 1025) are facing an unprecedented challenge from a new generation of e-commerce firms like Jingdong and Yihaodian. Read Full Post…
I’ll end the week with a lighter look at an emerging trend in the China corporate world, which has seen some of the nation’s biggest tech personalities make high-profile bets with their equally successful peers from more traditional sectors. The latest in these high-tech wagers has seen Lei Jun, the charismatic founder of fast-growing smartphone maker Xiaomi, make a bet with Dong Mingzhu, often considered China’s most successful business woman as the chairman of appliance giant Gree (Shenzhen: 000651). These bets are mostly for entertainment and publicity on the one hand; but they do also represent the very real challenge that traditional industries are feeling from e-commerce and other emerging high-tech business models. Read Full Post…
Most people are focusing on Alibaba in the new announcement of its major new logistics tie-up with leading home appliance maker Haier (HKEx: 1169), so I thought I would take a different approach and focus instead on the underappreciated Haier. Actually, I should clarify and say that Haier was formerly underappreciated, as investors quickly discovered its shares after announcement of the $360 million tie-up, bidding the stock up to a 14-year high on optimism about the new partnership. I’ve always been quite positive on Haier, one of China’s top brands in home appliances, and think this new venture continues its tradition of carefully considered partnerships with good chances for success into new areas. Read Full Post…
I seem to be using the phrase “flavor of the day” quite a bit these days, as quite a few emerging products and sectors like smart TVs and social networking services (SNS) are suddenly drawing interest from a wide range of companies in established industries. The latest sector to get my “flavor of the day” moniker is banking and financial services, with word that Gree (Shenzhen: 000651), one of China’s top appliance makers, is looking to enter the space. I have no particularly strong feelings about Gree, though I have to say that this new move looks ill-conceived and is a telltale sign that the broader rush into banking services is quickly becoming overheated. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 27. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China’s Top Appliance Maker Gree (Shenzhen: 000651) Eyes Banking Business (English article)
LDK Solar (NYSE: LDK) Enters Forbearance Arrangement with Noteholders (PRNewswire)
Alibaba’s TMall Issues Requirements For International Merchants (English article)
