Bottom line: Baidu’s new reorganization is further evidence that the company plans to spin off its newer, money-losing units into separate companies, which could list on China’s OTC-style New Third Board later this year.
Baidu reorganizes
Online search leader Baidu (Nasdaq: BIDU) is in a couple of big headlines as it reportedly prepares to spin off some of its non-core businesses, led by word of a major reorganization that could help facilitate such spin-offs. A separate headline says that Baidu is also in talks for a $1 billion syndicated loan, in a move that is mostly market driven but also aims at getting fresh money to continue funding many of its loss-making newer businesses.
Baidu came under fire last year for its sluggish profit growth, as founder Robin Li insisted he would continue to invest heavily in his company’s loss-making businesses like its Nuomi group buying site and Qunar(Nasdaq: QUNR) online travel agency. Investors punished Baidu’s stock as a result, leading to reports earlier this year that Baidu was planning to spin off many of those businesses into separately listed companies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 3. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) Plans $1 Bln Investment in New Meituan-Dianping (English article)
HSBC (HKEx: 5) Targets Chinese Bond Market with Securities JV (English article)
Gaming Firm Giant Interactive to Backdoor List Through New Century Cruise (English article)
Ming Yang (NYSE: MY) Announces Receipt of “Going Private” Proposal (PRNewswire)
Baixing.com Submits Filings, Aims for Year-End IPO on China’s OTC Board (Chinese article)
Bottom line: China should expand its plans for a new enterprise board in Shanghai to include a place for the Chinese units of big multinationals like Yum and Uber, allowing domestic investors to buy into these big foreign names.
Calls grow for KFC parent to spin off China unit
Global fast food giant Yum Brands (NYSE: YUM) became the latest major multinational to contemplate a spin-off for its China business last week, following in the tracks of Uber and IMAX (NYSE: IMAX), two leaders in their respective areas of hired car services and big-screen theater technology. The trend acknowledges that China will soon become the world’s largest consumer market, and its unique qualities and complexities often justify creation of separate companies for these big global names to effectively develop the market.
China should seize on this trend and modify its current plans for a new Nasdaq-style enterprise board based in Shanghai to also include a place for these larger, newly created companies with foreign roots. Reports earlier this year indicated the regulator was aiming to roll out the new strategic industries board as soon as next year, though its plans could be delayed due to the recent turmoil on China’s stock markets. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 11. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) to Invest $4.6 Bln in Retailer Suning (Shenzhen: 002024) (English article)
Bank of Communications (HKEx: 3328) Said to Let HSBC Name Vice Chmn (English article)
Bottom line: China’s securities regulator should reopen its plan for an international board amid the current stock market rally, which would make big international brands like Imax available to average local investors.
Imax China files for HK IPO
A premier global movie brand slipped away from China’s stock exchanges last week, when the Chinese unit of big-screen superstar Imax (NYSE: IMAX) disclosed it plans to make an initial public offering (IPO) in Hong Kong. The case brought back memories of a nearly forgotten plan by China for an international board for such listings in Shanghai, aimed at making big foreign names accessible to Chinese investors.
That plan was conceived more than 5 years ago, but later got put on hold as China focused on launching the Nasdaq-style ChiNext board in Shenzhen. It then got indefinitely shelved when China’s stock markets languished in the 4 years after that. Read Full Post…
Bottom line: A new e-commerce joint venture by Japan’s Itochu and Thailand’s CP Group marks the latest major advance for China’s fledgling free trade zone program, whose policies should eventually expanded to the entire country.
Itochu forms new venture in Shanghai FTZ
China’s fledgling Free Trade Zone (FTZ) program got a new boost last week when a group of corporate giants from Japan, Thailand and China announced a major new retailing joint venture in the original zone in Shanghai. That news came just a week after a major expansion of the Shanghai zone, and the announcement of a plan for 3 additional FTZs in other parts of China.
This sudden expansion of the FTZ program is a welcome development for the many private companies whose growth plans have been stymied for years by China’s huge bureaucracy. That group includes not only big multinationals like Amazon (Nasdaq: AMZN) and HSBC (HKEx: 5; London: HSBA), but also a growing number of homegrown private giants like JD.com (Nasdaq: JD) and Alibaba (NYSE: BABA), which also harbor global aspirations. Read Full Post…
Hong Kong may be disappointed about losing the world’s biggest Internet IPO with the imminent trading debut of Alibaba in New York, but it’s getting a nice consolation prize with word of a major new listing plan by top commercial property developer Wanda Group. The Wanda reports are getting much less coverage than they might normally due to Alibaba fever, which will see the Chinese e-commerce leader raise more than $20 billion when its shares start trading on Friday in New York. But at up to $6 billion, the IPO for Dalian Wanda Commercial Properties will still qualify as one of the world’s biggest offerings for 2014. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 11. To view a full article or story, click on the link next to the headline.
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Santander (Madrid: SAN) Ups Bet On China With Bank of Shanghai Stake (English article)
China Mobile (HKEx: 941) Website To Take iPhone 5S Orders From Thursday (Chinese article)
E-House (NYSE: EJ) Announces Plan To Offer $180 Mln Convertible Notes (PRNewswire)
Lianhua Supermarket (HKEx: 980) Former Top Executive Under Probe (Chinese article)
LDK Solar (NYSE: LDK) Extends Forbearance Arrangement With Noteholders (PRNewswire)
ICBC (HKEx: 1398) has entered the realm of leading global banks, with word that China’s top lender has been officially declared “too big to fail” by a major world body, reflecting China’s increasingly important role in the world’s economy. ICBC’s growing importance to the global economy was also evident in its successful issue of the first yuan-denominated bond in London, part of China’s efforts to internationalize its currency with major state-owned banks like ICBC and Bank of China (HKEx: 3988; Shanghai: 601988) leading the campaign. Read Full Post…
International board finds new life in Shanghai Free Trade Zone
I’ve avoided writing about the new Shanghai Free Trade Zone (FTZ) up until now, despite exhaustive coverage in both domestic and international media. But now I’m lifting my informal ban, following new reports saying the FTZ could soon host a proposed but long-stalled international board where foreign companies could list their shares in China. Such a development would be quite exciting, as it could finally allow big names like China Mobile (HKEx: 941; NYSE: CHL) and Lenovo (HKEx: 992), which are technically based overseas, to finally make their shares accessible to investors in China. Read Full Post…
The uneasy partnership formed more than half a year ago between US insurance giant AIG (NYSE: AIG) and China’s PICC Group (HKEx: 2328) has taken another tentative step forward with the finalization of a joint venture between the 2 companies. The move marks a symbolic one for AIG, reversing its global pullback of the last 5 years after it nearly collapsed at the height of the global financial crisis in 2008. Read Full Post…
