Traditional retailers are taking a hit recently, with fast-food operator KFC and sporting goods seller Li Ning (HKEx: 2331) the latest to report disappointing results due to a complex series of factors. KFC is suffering from a number of company specific issues, combined with residual effects from China’s slowing economy and fallout from a bird flu outbreak earlier in the year. The picture looks more grim for Li Ning and other traditional non-restaurant retailers, which are fighting a losing battle against fast-rising e-commerce firms. Read Full Post…
I wasn’t too surprised to read the latest news that British retailing giant Tesco (London: TSCO) was effectively bowing out of the Chinese supermarket business, as the company never really found a niche in the fiercely competitive market. But more interesting will be the fate of remaining giants Walmart (NYSE: WMT) and Carrefour (Paris: CA), and even domestic leader Sun Art (HKEx: 6808), as these companies struggle to remain relevant amid a major assault from e-commerce firms. Of those big players, only Walmart has made a serious move into e-commerce, which looks set to rapidly overtake traditional markets in China’s retailing space. Read Full Post…
Too much money isn’t always a good thing, as it often pressures companies to put that money to work even when good investment opportunities are limited. Baidu (Nasdaq: BIDU) demonstrated that reality earlier this week with its purchase of an online app store that had little relationship with its core online search business (previous post), and now Alibaba is also showing similar tendencies with its investment in an online travel services website. In Alibaba’s case, the new investment come as the e-commerce leader posted a record second-quarter profit, and as it prepares for a blockbuster IPO that increasingly looks like it will take place in Hong Kong. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 20. To view a full article or story, click on the link next to the headline.
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China’s Wanda To Spend $1.6 Bln On UK Yacht Maker, Hotel (English article)
GM (NYSE: GM) Aims For 10 Pct Of China’s Luxury Car Market By 2020 (English article)
When is a modestly successful IPO cause for big celebration? The answer is: When your name is LightInTheBox, and you’ve just completed the first IPO in New York by a Chinese company in a half a year. Not only is LightInTheBox the first major New York IPO by a Chinese firm this year, but it’s also only the third such offering since the beginning of 2012, reflecting the chilly investor climate that has stifled such listings on Wall Street for more than 2 years. Read Full Post…
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.
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Galaxy, Sinopec Engineering sputter out of the gate
Everyone is hailing the success of 2 massive China IPOs this week that seems to herald a new uptick in the moribund sector, with relatively strong debuts for offerings from Galaxy Securities (HKEx: 6681) and Sinopec Engineering (HKEx: 2386). But I’m going to go ahead and play the contrarian here by noting that these 2 offerings are hardly the success that many people desperately want to see, meaning it could still be months or even next year before we see real signs of life return to the market. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 24. To view a full article or story, click on the link next to the headline.
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LightInTheBox Sets IPO Price Range, To Raise Up to $87 Mln (Chinese article)
Lenovo (HKEx: 992) Announces Results For Fiscal Q4 (HKEx announcement)
Softbank Says Won’t Use Huawei Equipment After Sprint (NYSE: S) Buy (Chinese article)
Sohu (Nasdaq: SOHU) Talks To Buy PPTV Collapse Over Price (Chinese article)
Levono (HKEx: 992), Jingdong Partner on 3C Service and Maintenance (English article)
New moves from Internet giant Tencent (HKEx: 700) and global retailer WalMart (NYSE: WMT) are turning up the competition in China’s e-commerce wars, which are quickly becoming a contest to see who can outspend whom. Both of these latest initiatives look quite pricey, especially Tencent’s move that will see it roll out an ultra-fast product delivery program. WalMart, meantime, is pouring big money into a campaign to build a new in-house clothing brand for its recently acquired Yihaodian online store. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 14. To view a full article or story, click on the link next to the headline.
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AsiaInfo-Linkage (Nasdaq: ASIA) To be Acquired CITIC Capital Consortium (PRNewswire)
Jingdong Expects Profitability in Next 7-12 Months (English article)
Renren (NYSE: RENN) Shuts Down Mobile Projects – Source (English article)
Home Inns (Nasdaq: HMIN) Reports Q1 Financial Results (PRNewswire)
I don’t often write about new products and services in China’s hyperactive e-commerce space, since such initiatives have become commonplace in an overheated sector where everyone is always looking for any competitive advantage. But the latest pilot program by Jingdong, China’s second largest e-commerce firm, looks like a potential game-changer since it could significantly challenge the entire industry by introducing ultra-fast deliveries. At the same time, newly released data is showing China’s e-commerce sales posted a major decline in the first quarter, hinting the sector may be headed for a rapid slowdown after several years of breakneck growth. Read Full Post…
