Tag Archives: Haitong Securities

INTERNET: The End Finally Nears For Shanda Games

Bottom line: Shanda Games is likely to close its privatization by next month, as group founder Chen Tianqiao finishes dismantling his entertainment empire to try a possible new career in private equity.

De-listing looms for Shanda Games

The long and tortured privatization Shanda Games (Nasdaq: GAME) could finally be near, with word that a group bidding for the faded online gaming giant has finalized its funding for a $1.9 billion buyout. If and when this buyout finally closes, it will mark the end of a privatization bid that began more than a year ago. That would easily make it the most drawn out such buyout among about a dozen major Chinese companies that have left New York over the last 2 years due to lack of interest from investors. Read Full Post…

INTERNET: Shanda Sells Literature To Tencent, Games To Brokers

Bottom line: New developments in the break-up of Shanda Group are likely to result in the successful sales of its games and literature units in the next 6 months.

Cloudary pools resources with Tencent literarture

The slow-motion break-up of former online entertainment superstar Shanda Group continues in 2 different headlines, with word that its core online literature and gaming businesses are set to be taken over by Internet giant Tencent (HKEx: 700) and a couple of major brokerages, respectively, in separate deals. Both of these deals look quite exciting, as they involve the entry of serious-looking buyers who could ultimately use their acquired Shanda assets to create some interesting and potentially competitive new companies in their respective spaces. Read Full Post…

IPOs: Brokerages Still Hot As Orient IPO Charms Investors

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…

FINANCE – HK-Shanghai Link Could Spark Brokerage Tie-Ups

Bottom line: The latest M&A in China’s brokerage sector involving Essence Securities could presage a new wave of tie-ups between Chinese and foreign brokerages, boosted by the Hong Kong-Shanghai stock exchange link.

Essence joins brokerage consolidation trend

A new reverse takeover involving a major Chinese brokerage is shining a spotlight on the potential for new deals in the sector following this week’s launch of a ground-breaking program linking the Hong Kong and Shanghai stock exchanges. This particular deal involves Essence Securities, which is becoming a publicly traded company following its purchase by Shanghai-listed textile firm Sinotex Investment (Shanghai: 600061). But more intriguing is the very real possibility that major foreign brokerages may start to look for tie-up opportunities with Chinese peers in anticipation of synergistic partnerships to take advantage of the new Hong Kong-Shanghai Connect program. Read Full Post…

Baidu Takes Qihoo Battle to Customers 百度要求代理商切断与奇虎360关系

The blossoming war between Internet search leader Baidu (Nasdaq: BIDU) and challenger Qihoo 360 (NYSE: QIHU) is becoming more colorful each day, with Baidu resorting to some interesting new tactics to defend its market dominance. In the latest wrinkle of this fast-developing story, Baidu appears to be asking many of its corporate clients to cut their ties to Qihoo, in what is looking like an increasingly dirty war where either side will do anything to attack the other.

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2011 Limps Out With Haitong IPO Withdrawal 海通证券推迟IPO 2011以市场疲弱状态落幕

2011 could well go down as one of the most schizophrenic years for IPOs in recent memory, with the latest pulling of a mega-offering by Haitong Securities (Shanghai: 600837) symbolizing the dismal sentiment that has set in over the last 6 months after a strong start to the year. According to foreign media reports, Haitong, which is already listed in Shanghai, has decided to scrap its Hong Kong offering that would have seen it raise up to $1.7 billion due to dismal market sentiment. The decision comes after a steady string of other deals that were either scrapped or went forward with weak results. One of the biggest, a Hong Kong offering by Haitong rival CITIC Securities (HKEx: 6030; Shanghai: 600030) had to be scaled back but still went ahead despite the weak sentiment. Since then, the company’s shares have sunk about 3 percent from their IPO price in September, despite its premier status as China’s biggest brokerage. Other smaller offerings by online video site Xunlei and Shanda‘s (Nasdaq: SNDA) online literature unit Cloudary had to be were pulled as well, again due to weak investor sentiment. These smaller US companies have been hit not only by that weak broader sentiment, but also by more specific concerns about Chinese firms’ accounting practices following a series of accounting scandals earlier in the year. Companies that have gone forward with offerings this year have hardly offered any reassurance. Shares of Renren (NYSE: RENN), a leading Chinese social networking site, now trade at about a quarter of their IPO price since their May offering; while shares of video sharing site Tudou (Nasdaq: TUDO), which made its IPO in August when sentiment was already weak, have sunk by more than half from their IPO price even after the company reported a surprise third-quarter profit. The combination of confidence crisis and broader weak market sentiment is no doubt behind the huge losses for US-listed China stocks. That said, investor sentiment is notoriously cyclical, and I would expect people to rediscover the big potential of China stocks sometime next year, probably around the second quarter, at which time we should see names like Haitong and perhaps even Cloudary or Xunlei make a second try at an IPO. In the meantime, braver investors with money to spare could position themselves for some nice returns by buying shares now ahead of the next uptick.

Bottom line: Haitong Securities’ pulling of its IPO reflects a dismal IPO environment that should be near bottom, with sentiment likely to pick up for China plays around the second quarter of 2012.

Related postings 相关文章:

Internet Investors Seek Refuge in Big Names 互联网投资者选择性支持中国市场领头羊

Shanda Moves Ahead With Privatization 投资者对盛大私有化仍持保留态度

Year End Brings Problematic New IPO Wave 中国新一波IPO潮或无法达预期效果

News Digest: December 13, 2011

The following press releases and media reports about Chinese companies were carried on December 13. To view a full article or story, click on the link next to the headline.

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Haitong Securities Pulls $1.7 Billion HK Offer: Sources (English article)

Lenovo (HKEx: 992) Wants To Move Part of PC Making Business to Japan (Chinese article)

Sinopec (HKEx: 386) Ups Stake, Purchases in Australia Pacific LNG (English article)

LDK Solar (NYSE: LDK) Closes Issuance of the First Tranche of RMB3 Bln Notes (PRNewswire)

RIM (Toronto: RIMM) to Make Adjustments to Top China Management – Source (Chinese article)