Bottom line: Strong response to Tesla’s latest EV in China and a major new solar plant plan from SolarReserve reflect Beijing’s strong promotion of new energy, which is also creating big waste by attracting unqualified companies to the sector.
SolarReserve in major new China initiative
A series of new reports is showing how Beijing’s strong support for new energy technologies is benefiting both domestic and foreign companies, as China tries to become a global leader in this emerging area. But the reports also spotlight the dangers that come with such aggressive support, which often leads to abuse of subsidies and other preferential policies that can lead to big waste and market distortions.
One of the reports centers on US new energy car superstar Tesla (Nasdaq: TSLA), and quotes an executive saying that China has become the second largest market for its newest and first relatively affordable electric vehicle (EV). The second report comes from the solar energy sector, and has US solar plant developer SolarReserve LLC in a major new partnership to build more than $2 billion worth of solar farms in China. Read Full Post…
The following press releases and news reports about China companies were carried on May 5. To view a full article or story, click on the link next to the headline.
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Apple (Nasdaq: AAPL) Loses China Trademark Case for ‘iPhone’ on Leather Goods (English article)
Lackluster Chinese Box Office Posts Weak 5 Pct Gain Over May Day Holiday (Chinese article)
SolarReserve Partners With Shenhua (HKEx: 1088) on $2 Bln China Solar Projects（English article）
Telsa (Nasdaq: TSLA) Says China 2nd Largest Market for Model 3, Eyes Suzhou Plant (Chinese article)
China’s YOU On Demand (Nasdaq: YOD) in JV with LA-Based Frequency Networks (PRNewswire)
The following press releases and news reports about China 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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AIG (NYSE: AIG) Selling Down $1.2 Bln Stake in Chinese Insurer PICC (HKEx: 2328) (English article)
MIIT Vice Minister to Meet with Tesla (Nasdaq: TSLA) Asia Chief, Plant Coming? (Chinese article)
Yingli (NYSE: YGE) Discloses Preliminary Financial Results for Full Year 2015 (PRNewswire)
Yahoo in Talks to Sell Major Silicon Valley Office to LeEco (Shenzhen: 300104) – Report (Chinese article)
21Vianet (Nasdaq:VNET) Issues 1.75 Bln Yuan in Convertible Bonds (GlobeNewswire)
The following press releases and news reports about China companies were carried on April 2-5. To view a full article or story, click on the link next to the headline.
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China’s XIO Group Vies for US Auto Consultant JD Power – Sources (English article)
Huawei Posts Strongest Revenue Growth in 7 Years for 2015 (English article)
Tesla (Nasdaq: TSLA) Unveils Model 3, May Target Future China Production (Chinese article)
Finland’s Okmetic (Helsinki: OKM1V) Gets Takeover Bid from China’s National Silicon (English article)
Lenovo (HKEx: 992) Changes Motorola Brand Name to Moto on Smartphones (English article)
Bottom line: A new integrated car-ordering platform being rolled out by Lyft and Didi looks like a smart and low-cost move to expand their geographic reach, while LeEco’s electric car venture with Aston Martin is likely to sputter.
Lyft co-founder John Zimmer in Beijing for Didi announcement
Two of China’s top Internet companies are in car-related headlines today, led by a rapidly cozying relationship between Didi Kuaidi and US counterpart Lyft that has the pair preparing to roll out a joint platform for their signature hired car services. The other news has online video giant LeEco (Shenzhen: 300104), formerly known as LeTV, rolling out a joint venture to make electric cars with super luxury brand Aston Martin.
Both of these deals are incremental, since the original Didi-Lyft partnership was formed last year when the former invested in the latter. Likewise, LeEco was rumored to be near a tie-up with Aston Martin as early as last April. From a broader perspective, both moves show a growing confluence between the Internet and cars, which has opened up a wide range of new services that often incorporate GPS technology. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 27. To view a full article or story, click on the link next to the headline.
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Fox (Nasdaq: FOX) to Launch First Simpsons Stores Soon in China (English article)
Ctrip (Nasdaq: CTRP) Transaction Volume to Reach 1 Trillion Yuan by 2020 – CEO (Chinese article)
Tesla’s (Nasdaq: TSLA) Elon Musk Working to Find Chinese Production Partner (English article)
Family and Friends Lending App Jiedaibao Wins 2.5 Bln yuan Series B Funding (English article)
Merchants Bank (HKEx: 3968) Invests $200 Mln in Didi Kuaidi, Ties in Finance (Chinese article)
Bottom line: BYD’s EV sales are likely to see strong growth based on government-supported buying in China this year, but could slow sharply in 2017 if China’s economic slowdown accelerates.
Li Lu boosts BYD stake
Chinese electric vehicle (EV) maker BYD (HKEx: 1211; Shenzhen: 002594) shot into the headlines in 2008 when investment guru Warren Buffett bought 10 percent of the company. But it has struggled to find a mass audience for its cars since then, at times raising doubts about its future. That seems to be changing recently, as a nascent surge in its home China market has quietly begun to charge up the business, bringing some excitement back to the company.
Now one of BYD’s biggest backers, the man who first introduced the company to Buffett, is quietly building up his own stake in BYD, and disclosed that his LL Group recently bought more shares to boost its stake to 8.24 percent. (HKEx announcement) That’s up from 6.3 percent of BYD’s H-shares that LL Group, formerly known as Himalaya Capital, held at the middle of last year, and is a sign of growing confidence by LL Group founder Li Lu. Read Full Post…
Bottom line: Tesla’s newly announced modest China sales and announcement of a plan for potential local production reflect the uphill road it faces in the Chinese market, which is unlikely to get much easier in the next 2 years.
Tesla still searching for China sales charge
China is fast becoming the land of promising upstart companies that failed to reach their potential, with word that former new energy superstar Tesla (Nasdaq: TSLA) has posted very ho-hum car sales in a market where it once held out big hopes. The rare China sales figures come as Tesla discussed possible plans to localize some of its manufacturing in the world’s largest auto market, a move that charismatic founder Elon Musk says could cut the cost of cars by up to a third.
The latest Tesla news came from a local media event in China that didn’t go off too smoothly, and apparently wasn’t meant to be reported by foreign media. The event’s lower-key nature and other glitches were unusual for Tesla, which was traditionally a master at slickly orchestrated events and appearances by Musk that gave the company hugely positive publicity when it first drove into China last year. Read Full Post…
The following press releases and media reports about Chinese companies were carried on October 24-26. To view a full article or story, click on the link next to the headline.
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Tesla (Nasdaq: TSLA) CEO Says Negotiating with China on Local Production (English article)
Bottom line: Beijing should take a more holistic approach to developing green cars in China, which should include education of owners and creation of owner communities in addition to financial incentives and infrastructure building.
Beijing in new steps to charge up EV sales
China made the latest new move to boost its sputtering electric vehicle (EV) program over the holiday, disclosing an ambitious plan to sharply accelerate installation of charging stations across the country. The plan was aimed at countering one of the biggest obstacles to EV development, namely concerns from potential owners about difficulties they might face recharging their vehicles.
The new move comes after Beijing announced new financial incentives for EV buyers in May, and could provide some more momentum to a national program that has fallen far short of expectations. These kinds of piecemeal measures look good in theory, but often seem to fall flat due to lack of national coordination and supporting education and other publicity. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 1. To view a full article or story, click on the link next to the headline.
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Micron (Nasdaq: MU) Deal in Suspense as Unigroup Exec Returns Home (Chinese article)
Focus Media Aims to Relist Via Hedy (Shenzhen: 002027) Acquisition (English article)
Internet Entrepreneurs Back Chinese Tesla (Nasdaq: TSLA) Rival NextEV (English article)
Front-Line Research Shows Many Buyers Returning Xiaomi’s Redmi Note (Chinese article)
Ageas to Sell Hong Kong Unit to China’s JD Capital for $1.4 Bln (English article)
