Tag Archives: Suning

Latest “Suning” Business news & Financial news from a Chinese Market Expert

ENTERTAINMENT: Wanda, CMC Kick Up New Soccer Deals

Bottom line: Wanda’s new FIFA sponsorship is an opportunistic and savvy move both politically and financially, while CMC’s new smaller soccer investment also looks like a good play to win goodwill from Beijing.

Wanda, CMC in new soccer plays

China’s recent fascination with global sports deals continues, with word of major new tie-ups involving 2 big fans of President Xi Jinping’s recent call to improve the nation’s poor performance in soccer. The larger deal has an opportunistic Wanda Group signing on as China’s first top-tier sponsor of FIFA, the world soccer body whose reputation has suffered lately due to a major corruption scandal. The second deal has the acquisitive China Media Capital (CMC) investing in in SoccerWorld, a British operator of sports stadiums.

Both deals have a strongly political element, since Chinese President Xi Jinping is personally a big soccer fan and has appealed to China’s private sector to help improve the nation’s performance at the world’s most popular sport. Some of China’s other top corporate leaders have also answered that call, including Alibaba (NYSE: BABA) founder Jack Ma, leading web portal Sina (Nasdaq: SINA) and electronics retailing giant Suning (Shenzhen: 002024). Read Full Post…

China News Digest: March 1, 2016

The following press releases and news reports about Chinese companies were carried on March 1. To view a full article or story, click on the link next to the headline.

  • US Lawmakers Urge Caution on Potential Chinese Deal to Buy US Crane Maker (English article)
  • Citi (NYSE: C) to Sell Stake in China Guangfa Bank (Businesswire)
  • SAPPRFT to Strengthen Supervision of Online Video Series (English article)
  • Gree (Shenzhen: 000651) Products to Return to Suning (Shenzhen: 002024) Stores (Chinese article)
  • Alibaba (NYSE: BABA) Joined by Ma, Tsai for $500 Mln Stock Purchase (English article)
  • Latest calendar for Q4 earnings reports (Earnings calendar)

RETAIL: Macy’s, Suning Salivate at Overseas Chinese Shoppers

Bottom line: A growing strategy by retailers like Macy’s and Suning to target Chinese tourists traveling abroad looks smart, drawing on Chinese consumers’ growing taste for imported goods and distrust of domestically made products.

Macy’s targets Chinese shoppers in US

Traditional retailing giant Macy’s (NYSE: M) is rapidly discovering a new fondness for China, with its announcement of a series of special promotions at its main US department stores targeting Chinese traveling abroad for the Lunar New Year. Macy’s new move comes just a half year after the company announced a major new China joint venture aimed at tapping the nation’s booming markets for traditional retailing and e-commerce.

At the same time, domestic Chinese retailing powerhouse Suning (Shenzhen: 002024) is targeting similar consumers traveling over the holiday to Japan, offering its own promotions using a local Japanese electronics chain it purchased last year. Read Full Post…

LEISURE: Fosun’s Guo Courts Beijing with Sports Investment

Bottom line: Billionaire Guo Guangchang’s new sporting venture reflects his desire to move into entertainment, and also to win goodwill by supporting Beijing’s initiative to build up Chinese athletics.

Fosun’s Guo in sports tie-up with Europe’s GestiFute

After his brief and somewhat ominous disappearance last month, the man once called China’s Warren Buffett is back in the headlines, with word that Guo Guangchang has joined the growing ranks of Chinese billionaires making major investments in sports. In this case Guo is teaming up with Portuguese “super broker” GestiFute, whose main business is engineering the deals that allow European players to move from one soccer club to another. Among its deals, GestiFute was involved in previous transfers involving superstar Cristiano Ronaldo, showing the company is itself a major player in the business.

This particular deal is just the latest by some of China’s richest men and biggest private companies, which have suddenly discovered a huge appetite for all things sports. Previous investors in the growing trend include Alibaba (NYSE: BABA) founder Jack Ma and Wanda Group chief Wang Jianlin, who are 2 of the country’s wealthiest individuals. They also have been joined by a growing number of entertainment-related companies like online video firm LeTV (Shenzhen: 300104) and electronics retailer Suning (Shenzhen: 002024), which also owns a major online video site. Read Full Post…

News Digest: January 21, 2016

The following press releases and media reports about Chinese companies were carried on January 21. To view a full article or story, click on the link next to the headline.

  • Weibo (Nasdaq: WB) Drops 140-Character Message Limit to Boost Usage (Chinese article)
  • Apple (Nasdaq: AAPL) Accelerates China Expansion with 5 New Stores in January (Chinese article)
  • Ground-Breaking Held for First Six Flags (NYSE: SIX) Branded Theme Park in China (Businesswire)
  • Alibaba (NYSE: BABA) Teams With Nvidia in $1 Bln Bet on Cloud Computing (English article)
  • ZTE (HKEx: 763), Suning Alliance Targets 10 Mln Nubia Smartphone Sales in 3 Years (Chinese article)

ENTERTAINMENT: Sina Scores in Soccer, LeTV in Baseball

Bottom line: Sina’s new deal to broadcast the video channel of the Manchester United soccer team looks like a good bet, while LeTV’s new deal to broadcast US baseball games is more likely to strike out.

Sina tries soccer with Man United

Leading web portal Sina (Nasdsaq: SINA) and online video giant LeTV (Shenzhen: 300104) have just announced 2 new sporting deals, extending a recent streak of similar investments by media companies in search of exclusive content. The first deal will see Sina become the official broadcaster in China for Britain’s Manchester United soccer club, while the second will see LeTV’s sports division get similar rights for live broadcasts of US Major League Baseball (MLB).

Both moves are really just licensing deals, though each could become an important new revenue source for Sina and LeTV as they search for exclusive content to lure viewers to their services. From a quantity perspective, LeTV is the big winner in this new round of deals since it will gain rights to hundreds of baseball games played in America each year. But Sina is the winner from a quality perspective, since soccer is far more popular in China than baseball, which is relatively unknown among average Chinese. Read Full Post…

SMARTPHONES: ZTE Ties With Suning, Eyes Big Growth

Bottom line: ZTE’s new Suning tie-up presages an aggressive push into the China smartphone market this year, potentially helping it reach an aggressive target for 20 percent annual revenue growth over the next 5 years.

Suning buys into Nubia

Following a painful restructuring that wrapped up more than a year ago, telecoms stalwart ZTE (HKEx: 763; Shenzhen: 0000063) is heading into the New Year with a major new partnership with retailing giant Suning (Shenzhen: 000063), and a medium-term revenue target that looks quite aggressive. The signals reflect a new level of confidence at ZTE, which has returned to the profit column and is aggressively building up its smartphone business as a key plank for its future growth.

The smartphone business lies at the heart of the new tie up with Suning, which is buying a major stake in ZTE’s separately-run upscale Nubia brand. The bigger picture has a top ZTE official forecasting the company’s revenue will hit 200 billion yuan ($31 billion) by 2020, a 150 percent increase over 2014 levels. Read Full Post…

News Digest: Jan 1-4, 2016

The following press releases and media reports about Chinese companies were carried on January 1-4. To view a full article or story, click on the link next to the headline.

  • New Rumors of iQiyi Acquisition Plan by China Media Capital (CMC) (Chinese article)
  • Suning Invests 1.9 Bln Yuan in ZTE’s (HKEx: 763) Nubia Smartphone Unit (Chinese article)
  • China Southern, Hainan Air Suspend Sales Over Qunar (Nasdaq: QUNR) (Chinese article)
  • Movie Ticket Sales Jump 48 Pct in China, But Hollywood Has Reason to Worry (English article)
  • O2O Crowdsourced Delivery App Dada Lands $300 Mln Series D Funding – Source (English article)

ENTERTAINMENT: Wanda Eyes IPO From New Guangzhou Sport HQ

Bottom line: Wanda’s decision to set up its sports division headquarters in Guangzhou is part of a diversification away from Beijing, and could presage an IPO for the unit in Hong Kong as early as next year.

Wanda sets up sports HQ in Guangzhou

A recent series of major sporting moves is back in the financial headlines as 2016 approaches, with word that real estate giant Wanda Group is setting up a new headquarters for its growing sports business in the southern city of Guangzhou. Those same reports hint at another major theme in the new year, which could see a new wave of IPOs for some of these big new sporting investments by names like Wanda.

Sporting investments have become a major theme in the current year, reflecting a sudden desire for content and related services to feed China’s fast-growing entertainment sector. E-commerce giant Alibaba (NYSE: BABA) kicked off the wave last year with its investment in a domestic soccer club, and has been joined this year by a wide range of companies that includes Wanda, electronics retailer Suning (Shenzhen: 002024) and online video operator LeTV (Shenzhen: 300104). Read Full Post…

ENTERTAINMENT: Suning Joins Sports Club with Soccer Buy

Bottom line: Suning’s move into sports is aimed at providing content for its PPTV online video service, but is also the latest in a string of wide-ranging investments that reflect a company with an identity crisis.

Suning invests in soccer

Sports teams are becoming flavor of the day for Chinese firms with entertainment aspirations, with word that retailing giant Suning (Shenzhen: 002024) has joined the bandwagon via a new investment in a local soccer club. The company’s latest deal will see it invest 523 million yuan ($80 million) in the Jiangsu Sainty Football Club, which like many other professional Chinese sports teams is struggling financially.

Suning’s interest in soccer is probably related to its 2013 purchase of PPTV, a relatively large player in China’s crowded online video space. The Suning-PPTV tie-up left many people puzzled at thee time of that announcement, since the 2 companies have little in common. But Suning has been aggressively promoting the service in its trademark consumer electronics stores, and in August it announced a plan to invest 1 billion yuan into a campaign to sell smart TVs equipped with PPTV’s online video service. Read Full Post…

News Digest: December 22, 2015

The following press releases and media reports about Chinese companies were carried on December 22. To view a full article or story, click on the link next to the headline.

  • Alibaba (NYSE: BABA) Hires Ex-Apple Investigator for Global Anti-Piracy Fight (English article)
  • OnePlus Denies Merger Rumors with Oppo, Says Layoffs Part of Improvement Plan (Chinese article)
  • Suning (Shenzhen: 002024) Invests 523 Mln Yuan in Jiangsu Soccer Club (Chinese article)
  • SABMiller (London: SAB) China Partner Said to Pick Banks to Advise on Snow JV (English article)
  • LightInTheBox (NYSE: LITB) Reports Q3 Financial Results (PRNewswire)