Bottom line: China’s securities regulator should work with overseas-listed Chinese firms to chart a well-defined path for them to return home to list, to encourage such movement and avoid burdensome bureaucracy.
Chinese “turtles” return home to list
A growing trend that is seeing Chinese firms abandon US listings to return home gained big momentum last week, when 2 more companies announced plans to de-list from New York and a third that privatized 2 years ago moved close to a China re-listing.
In the first category, medical devices maker Mindray Medical (NYSE: MR) announced a management led buy-out offer late in the week, which was followed a day later by a similar offer for solar panel maker JA Solar (Nasdaq: JASO). Meantime, formerly New York-listed outdoor advertising specialist Focus Media took a major step toward becoming the first Chinese company to re-list at home by injecting itself to an existing Shenzhen-traded company. Read Full Post…
Bottom line: The sale of new shares at a discount by Alibaba Pictures and Kingsoft reflects growing competition for funds in Hong Kong, while Mindray is likely to seek a China re-listing following its privatization from New York.
Kingsoft in fund-raising plan
A flurry of fund-raising activity on China’s periphery is in the headlines as we end the week, led by 2 separate plans by Alibaba’s (NYSE: BABA) film unit and software maker Kingsoft (HKEx: 3888) to raise a combined $2 billion. At the same time, medical device maker Mindray (NYSE: MR) has become the latest in a recent string of companies to receive buy-out offers, following years of lackluster performance for its New York-listed shares.
The underlying theme to these 3 stories is a huge stock market rally in China itself, which has seen the benchmark Shanghai index more than double over the last year. That rally is making companies like Mindray envious, prompting many to de-list from New York and target re-listings at home. At the same time, the China effect is also spilling over into adjacent Hong Kong, making it much easier for Chinese companies listed there to also raise new cash. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 5. To view a full article or story, click on the link next to the headline.
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Alibaba Pictures (HKEx: 1060) To Raise $1.6 Bln in Share Sale For Media Acquisitions (English article)
Mindray (NYSE: MR) Receives “Going Private” Proposal at $30.00 Per ADS (PRNewswire)
WH Group (HKEx: 288) Announces Sale of Campofrio Stake For $354 Mln (GlobeNewswire)
Supermarket and Consumer Electronics Chain Bubugao to Raise 3.4 Bln Yuan (English article)
WandaGroup E-Commerce CEO Resigns, Cites Personal Reasons (Chinese article)
A few news bits and data points are spotlighting the big potential in China’s healthcare market over the next few years for companies that can tap into an overhaul of the national medical system. While that news looks good for healthcare companies overall, the limited universe of publicly traded firms available to western investors looks a bit spottier due to individual company issues. Regulatory issues could also be a risk, as highlighted by a new price fixing ruling against US drug giant Johnson & Johnson (NYSE: JJ). Still, there could be some interesting buying opportunities for the right companies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 14. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941) Announces 4G Packages (Chinese article)
Gome (HKEx: 493) To Close 50 Stores, In Talks With Wumart (HKEx: 1025) (Chinese article)
App Store Operator Wandoujia Secures $120 Mln Funding From Softbank (English article)
US-listed Chinese stocks neared the end of 2013 with a wild ride last week, as 3 major developments provided a glimpse of the bumpy road that lies ahead in the New Year. That performance points to a strong start for new IPOs at the start of 2014, even though momentum could quickly flag due to the highly volatile and unpredictable nature of these stocks. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 14-16. To view a full article or story, click on the link next to the headline.
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Tesla (Nasdaq: TSLA) Launches China Website, Sets Deposits At 250,000 Yuan (Chinese article)
EU To Probe Chinese Nuclear Power Investments In Britain – Report (Chinese article)
China Unicom (HKEx: 762) To Focus On FDD-LTE Network (English article)
The following press releases and media reports about Chinese companies were carried on November 5. To view a full article or story, click on the link next to the headline.
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Alipay Restructures, Nearly 20,000 Employees Become Stakeholders (Chinese article)
Canadian Solar (Nasdaq: CSIQ) Announces Selective Preliminary Q3 Results (PRNewswire)
People’s Daily’s Jike Search Engine In Process Of Disappearing (Chinese article)
Mindray (NYSE: MR) Announces Up To $200 Mln Share Repurchase Program (PRNewswire)
AFM: China’s Top Industry Players to Descend on Hollywood (English article)
The following press releases and media reports about Chinese companies were carried on August 6. To view a full article or story, click on the link next to the headline.
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Fonterra CEO Apologizes, Sees China Dairy Curbs Lifted Within Days (English article)
Tencent’s (HKEx: 700) WeChat v5.0 Adds Game Center, In-App Payment (English article)
Concord Green Energy to Buy 5 Solar Plants from Canadian Solar (Nasdaq: CSIQ) (PRNewswire)
Huawei To Open London Office To Manage Global Finances (English article)
A few interesting news bits on the medical front are spotlighting both the opportunities and risks that drug and medical equipment makers face in developing the China market. On the opportunity side, Bristol-Myers Squibb (NYSE: BMY) has announced an expansion of its relationship with Simcere Pharmaceutical (NYSE: SCR) to introduce its drugs into China. Meantime, homegrown medical equipment maker Mindray Medical (NYSE: MR) is also banking on the market’s potential with its newly announced acquisition of a US ultrasound equipment maker. But US drug giant Johnson & Johnson (NYSE: JNJ) is also finding the market contains some risks, as it comes under fire for double standards related to its product recall policies in China. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 14. To view a full article or story, click on the link next to the headline.
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EU Files WTO Complaint Over Chinese Stainless Steel Duty (English article)
Mindray (NYSE: MR) To Acquire Zonare Medical Systems (PRNewswire)
China Mobile (HKEx: 941) Recruits TD-LTE Trial Customers (English article)
Renault (Paris: RENA) May Make Electric Cars in China (English article)
Dangdang (NYSE: DANG) Chairman: No Prediction On Return To Profit (Chinese article)
