The following press releases and media reports about Chinese companies were carried on August 29. To view a full article or story, click on the link next to the headline.
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Microsoft (Nasdaq: MSFT) CEO Nadella To Visit China Amid Antitrust Probe – Source (English article)
I’ve largely ignored a steady stream of announcements by China’s big 4 state-run banks these past few weeks, but the latest plans released on the same day from 2 of those seemed like a good opportunity to finally focus on this exercise that could soak as much as 400 billion yuan ($63 billion) from the market. My main reason for ignoring the announcements was mostly because they were too numerous to write about individually, and also because much of the fund raising was expected. But the sheer size of this exercise, plus the broader implications for investors, seems like a good reason for writing now. Read Full Post…
A couple of headlines are underscoring the high risk that China’s financial sector could soon pose for both domestic and international investors, as the nation’s financiers look for the most creative but not necessarily the safest ways to raise money. In the first instance, China Merchants Bank (HKEx: 3968; Shanghai: 600036) has officially joined the nation’s big national banks in a move to Europe, choosing the free-wheeling Luxembourg market as its first destination. Meantime, media are reporting that yet another domestic Chinese financial product is about to default, joining a growing list of such distressed high-yield offerings. Read Full Post…
The list of Chinese companies defaulting on their bonds continues to grow, with word that timber firm China Forestry Holdings (HKEx: 930) has missed an interest payment as it tries to repurchase the notes. I’ll admit that one reason I’m focusing on this news is because of a recent conversation I had with a Chinese banker, who explained to me what happens behind-the-scenes when companies have difficulty making bond payments. That explanation shows why we haven’t seen too many bond defaults yet, despite constant media reports that China’s banks are struggling under mountains of unreported non-performing loans. Read Full Post…
Observers who were overwhelmed by Chinese banks’ fund-raising frenzy after the global financial crisis should get ready for something much bigger, with word that Agricultural Bank of China (HKEx: 1288; Shanghai: 601288) is planning to raise a massive $12.8 billion as a new round of money-raising kicks off. China’s banks are notorious for lending in line with directives from Beijing, with the result that they often make poor decisions based on political rather than commercial factors. That reality means that most major Chinese lenders are now sitting on mountains of questionable loans, and the situation could get much worse as the nation’s real estate bubble shows early signs of finally getting ready to burst. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 30. To view a full article or story, click on the link next to the headline.
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Chinese Pork Giant WH Group Pulls IPO Due To Weak Demand: Sources (English article)
ICBC (HKEx: 1398) Says To Buy 75 Pct Of Turkey’s Tekstilbank For $316 Mln (HKEx announcement)
Shanghai Disney (NYSE: DIS) Resort Accelerates Resort Expansion (Businesswire)
China’s Big 4 Banks’ Q1 Profits Surprise As Reforms Gather Pace (English article)
Baidu (Nasdaq: BIDU) Conducts Major Clean-up Of P2P Lending Platform (Chinese article)
The following press releases and media reports about Chinese companies were carried on April 3. To view a full article or story, click on the link next to the headline.
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ICBC (HKEx: 1398) Considers Bid For Unicredit’s Pioneer Fund Arm: Source (English article)
Security Software Maker Cheetah Mobile Files For $300 Mln US IPO (English article)
Two of this year’s biggest IPOs are both in the headlines, kicking off what’s likely to become a steady flow of news surrounding upcoming listings for e-commerce leader Alibaba and Citic Group, one of China’s oldest and most successful conglomerates. Citic is the more interesting in this latest pair of news bits, since this is the first time we’ve heard about the group’s plans to go public via a backdoor offering through its Hong Kong-listed Citic Pacific (HKEx: 267) unit. Meantime, media are reporting that investment banks are so eager to underwrite Alibaba’s IPO that they’re offering to accept record low fees for their services. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 28. To view a full article or story, click on the link next to the headline.
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Alstom (Paris: ALO) Shares Sink On Risk Of Fine In US Bribery Probe (English article)
KFC (NYSE: YUM) China Launches New Menu, Marketing Strategy Nationwide (Businesswire)
ICBC (HKEx: 1398) Announces Annual Results For 2013 (HKEx announcement)
Hyatt (NYSE: H) To Introduce 2 New Brands To China (Businesswire)
Lenovo (HKEx: 992) Recalls 110,000 Notebook PC Batteries In China (Chinese article)
The growing feud between banks and China’s biggest Internet firms has taken a major new turn, with word that leading lender ICBC (HKEx: 1398) may be preparing to formally sever ties with Alibaba’s Alipay electronic payments platform. The move would be clearly aimed at Alibaba’s wildly popular Yu’ebao service, which lets users put excess funds from their Alipay accounts into a product that functions much like a traditional bank savings account but offers much higher interest rates. Of course the next big question is whether other big banks will follow ICBC’s lead, and I suspect the answer is that many will indeed do so. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 24. To view a full article or story, click on the link next to the headline.
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ICBC (HKEx: 1398) Cuts Off Alipay, To Phase Out 3rd Party Payment Platforms (Chinese article)
P2P Lending Platform China Risk Finance Weighs US Listing – Source (Chinese article)
Agricultural Bank Of China (HKEx: 1288) Announces Annual 2013 Results (HKEx announcement)
Wanda To Add 780 RealD (NYSE: RLD) 3D Cinema Systems Across China (Businesswire)
Camelot (NYSE: CIS) Announces Shareholder Approval of Merger Agreement (PRNewswire)
