The following press releases and news reports about China companies were carried on May 20. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════
Temasek, CIC-KKR Advance to 2nd Round of Yum (NYSE: YUM) China Stake Sale (English article)
BT (London: BT) Applies for Telecoms Value Added Service License In Shanghai FTZ (Chinese aticle)
Bottom line: Shanda Games’ privatization could de-rail again due to fraud allegations against the head of its buyout group, while scandal-plagued Hanergy could receive a management-led offer soon to de-list its shares from Hong Kong.
Shanda buyout team leader detained in fraud probe
The “Year of the Buyout” for US-listed Chinese companies is ending on a couple of interesting notes, led by the reported detention of the head of a group trying to privatize Shanda Games (Nasdaq: GAME), one of China’s oldest online game companies. Somewhat ironically, Shanda Games announced its plans to privatize nearly 2 years ago, well before the more recent flood of similar offers announced by around 3 dozen US-listed Chinese companies this year.
Meantime, controversial solar energy equipment maker Hanergy (HKEx: 566) is making its own new noises that hint of a potential privatization bid in the not-too-distant future. In this case the company has announced its founder plans to sell a sizable chunk of his shares for far below their last traded price. The shares have been suspended since May over suspicions of price manipulation, and it’s quite possible this new sale price could indicate a broader plan to take the company private at this new, significantly lower valuation. Read Full Post…
Bottom line: Hanergy shares will remain forcibly suspended until the Hong Kong securities regulator completes its investigation into price manipulation, and could ultimately return to China where oversight is far less strict.
Hanergy shares stay suspended
I had to smile when I read the latest reports that said the Hong Kong securities regulator has taken the unusual step of ordering a continued suspension of shares of solar power equipment maker Hanergy (HKEx: 566), as it continues a probe into stock price manipulation. My smile wasn’t due to the continued suspension, but rather to the reason that media reports gave for the investigation, namely the spectacular rise in the company’s price over a one-year period, followed by its even faster plunge. (previous post)
That story was actually quite well documented back in May, when Hanergy’s shares lost nearly half of their value in a single hour after rising 6-fold over the previous year, wiping out $19 billion in market value. China stock watchers will know that the reason for my smile is that this kind of meteoric rise and fall is quite ordinary just across the border in China, and seldom attracts similar scrutiny from the China Securities Regulatory Commission. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 16. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
McCain raises concerns about possible China bid for Micron Tech (Nasdaq: MU) (English article)
Huawei Gets Permission to Manufacture Cellphones in India (Chinese article)
China’s Tsinghua Gives $100 Mln to Android Challenger (English article)
Meituan to Acquire Chinese Travel Search Engine Kuxun – Source (English article)
HK Securities Regulator Orders Halt to Trading in Hanergy (HKEx: 566) (Chinese article)
The following press releases and media reports about Chinese companies were carried on May 29. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
China’s Top Online Travel Agent Ctrip (Nasdaq: CTRP) Taken Offline By Hackers (English article)
BOC Hong Kong (HKEx: 2388) Said to Narrow Bids for $6.8 Bln Nanyang Bank (English article)
Alibaba’s (NYSE: BABA) Online Bank Secures Launch Approval (English article)
HK Securities Regulator Confirms Investigation of Hanergy (HKEx: 566) (Chinese article)
Bottom line: Yingli’s shares could rebound a bit as concerns ease about an imminent bankruptcy, while Hanergy’s shares are likely to continue sliding when trading resumes to correct from a massively speculative recent run-up.
Hanergy shares tumble
This week has been a volatile time for solar company stocks, which have taken a beating after Yingli (NYSE: YGE) warned about its ability to stay in business due to its heavy debt load. Now Yingli has put out a new statement saying its earlier warning was misinterpreted, helping to reverse a huge sell-off of its shares as it laid out the next big deadline in the struggle to repay its debt.
At the same time, Hong Kong-listed solar equipment maker Hanergy (HKEx: 566) has also been in global headlines, after its shares lost nearly half their value in just a matter of minutes in Wednesday trade. Media are focusing on the huge price swing, which no one seems able to explain. But this really looks like a story of stock manipulation by speculators rather than one of any significant change in the company’s prospects, which once again underscores the dangers of dealing in this kind of thinly-traded stock. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 21. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
Microsoft (Nasdaq: MSFT) Xbox One Gets $100 Price Drop in China to Boost Sales (English article)
Disney (NYSE: DIS) Opens Its First And Largest Store In The World In Shanghai (Businesswire)
Yingli (NYSE: YGE) Responds To Media Coverage Of Its Ability As a Going Concern (PRNewswire)
The following press releases and media reports about Chinese companies were carried on July 26. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
New reports that major car maker Dongfeng Motor (HKEx: 489) is bidding to buy a struggling US hybrid car maker are casting a spotlight on China’s emerging role as scavenger for global new energy companies struggling to stay in business. A number of factors are driving this budding trend, led by the fact that many of these Chinese suitors are relatively cash rich and in a good position to provide much-needed funds for cash-starved western new energy firms.
Despite China’s best efforts to avoid it, a much needed day of reckoning seems to be drawing nearer for the bloated global solar panel industry, which should include a major shake-up for Chinese firms that supply over half the world’s output. The latest signs of a looming judgment day are coming in news that US firm MiaSole has just agreed to be purchased by a Chinese buyer, and from Chinese giant LDK Solar (NYSE: LDK), which disclosed it has received a brief reprieve from its lenders for repayment of its rapidly souring debt.
New reports that major car maker Dongfeng Motor (HKEx: 489) is bidding to buy a struggling US hybrid car maker are casting a spotlight on China’s emerging role as scavenger for global new energy companies struggling to stay in business. A number of factors are driving this budding trend, led by the fact that many of these Chinese suitors are relatively cash rich and in a good position to provide much-needed funds for cash-starved western new energy firms.
Despite China’s best efforts to avoid it, a much needed day of reckoning seems to be drawing nearer for the bloated global solar panel industry, which should include a major shake-up for Chinese firms that supply over half the world’s output. The latest signs of a looming judgment day are coming in news that US firm MiaSole has just agreed to be purchased by a Chinese buyer, and from Chinese giant LDK Solar (NYSE: LDK), which disclosed it has received a brief reprieve from its lenders for repayment of its rapidly souring debt.
