The following press releases and media reports about Chinese companies were carried on July 14. To view a full article or story, click on the link next to the headline.
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Chip Maker Tsinghua Unigroup Makes $23 Bln Bid for Micron (NYSE: MU) (English article)
Billionaire Wang Plans for Wanda to Expand Into Finance Industry (English article)
Xiaomi, Partners Planning to Open Privately Funded Bank? (Chinese article)
Bottom line: A probable correction in China’s stock markets could cause Tongcheng to abandon its decision to list at home, and lead to a weak debut for Legend Holdings’ Hong Kong IPO.
Toncheng eyes China IPO
When the history books are written, the latest batch of IPO news could well mark the end of a brief but unusually buoyant period that has seen many Chinese companies eschew overseas stock markets for listings at home. Leading off the news was a sizzling performance by securities brokerage Guotai Junan (Shanghai: 601211) on its trading debut in Shanghai, as it become China’s biggest domestic IPO since 2010.
Another piece of IPO news also cast a spotlight on the hot Chinese stock markets, as online travel site Tongcheng said it was eying a listing at home in the next year, in a snub to New York where most of its peers are traded. Last but not least, the lukewarm reception for Chinese listings abroad was reinforced by Legend Holdings, parent of PC giant Lenovo (HKEx: 992), which failed to attract any major international investors as it priced its Hong Kong IPO. Read Full Post…
The following press releases and media reports about Chinese companies were carried on June 26. To view a full article or story, click on the link next to the headline.
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China Reinsurance Group Said to Pick Sponsors for $2 Bln HK IPO (English article)
Wanda Plans to Invest in Travel Site Tongcheng (Chinese article)
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)
Shanghai may be famous for its entrepreneurial spirit, but its track record isn’t quite so stellar when it comes to nurturing top entrepreneurs. That could be starting to change, however, with word that Dalian Wanda Group, one of China’s most dynamic companies, plans to move its headquarters to Shanghai from its current location in Beijing.
As a longtime foreigner living in Shanghai, I’ve always been surprised by the relatively small number of major private companies for a city of our size. We should certainly be proud of some of our city’s most outstanding entrepreneurs, with names like Guo Guangchang of Fosun Group and Spring Airlines (Shenzhen: 601021) Chairman Wang Zhenghua as 2 outstanding examples. Read Full Post…
Bottom line: The latest sporting deals by LeTV, Wanda and Alibaba reflect a growing scramble to secure broadcast rights and develop sports channels in China, with more such deals likely in the year ahead.
Alibaba wins NCAA rights for China
A nascent but growing move by China’s top private companies into global sports is in 2 separate headlines, with word of significant new deals involving e-commerce giant Alibaba (NYSE: BABA) and video superstar LeTV (Shenzhen: 300104). The stories also involve the entertainment ambitions of real estate magnate Wang Jianlin, one of China’s richest men, whose Wanda Group has been at the center of 2 major global sports deals over the past year.
The first of the newest deals will see Alibaba bring US college basketball to China through a deal with the National Collegiate Athletic Association (NCAA), the main governing body for US college sports. The other deal has seen LeTV, China’s most valuable provider of Internet video services, raise 800 million yuan ($130 million) for its young sports division. One of the main backers in that new funding round was Wang Jianlin’s son, Wang Shicong. Read Full Post…
Bottom line: ChemChina might be advised to maintain Pirelli as an independent unit and limit the size of an IPO if succeeds in buying the Italian tire maker and decides to re-list the business.
WH Group, AMC IPOs offer lessons for ChemChina
The headlines are buzzing today with word that state-run behemoth ChemChina may try to re-list Pirelli (Milan: PC) after it purchases the Italian tire maker, which got me to thinking about how the China factor might affect such an IPO. In theory at least, investors might get quite excited about a company they once disdained after its purchase by a Chinese buyer, due to hopes for lower costs and greater profits. But a look at 2 recent cases of major US firms that were acquired by Chinese buyers, then re-listed, shows the reality can vary widely and that a Chinese owner isn’t necessarily a panacea for an ailing overseas company. Read Full Post…
Bottom line: Wanda is sending a bad signal by emphasizing its government ties in its latest overseas mega-purchase, reflecting the complex relationship between major Chinese firms and Beijing.
Wanda bounces into sports marketing
If big Chinese companies are trying to show their independence from Beijing, then property giant Dalian Wanda isn’t doing a very good job with its just-announced $1.2 billion purchase of a major European sports marketing firm. The mega purchase of Swiss firm Infront Sports & Media is certainly a major feat, but Wanda has made a questionable decision in focusing on the how the deal will help Beijing’s bid to win more major sporting events, including the 2022 Winter Olympics. Of course I’m being just a tad cynical here, but this kind of talk certainly won’t help Wanda and other major private Chinese companies convince western skeptics of their independence from Beijing. Read Full Post…
Bottom line: New global e-commerce moves by JD and LightInTheBox look well conceived and could yield some strong results, while Baidu’s new e-commerce investment reflects its lack of focus and broader strategy in the space.
LightInTheBox opens US warehouse
A flurry of e-commerce moves are in the headlines today, including new globalization steps by number-two player JD.com (Nasdaq: JD) and the struggling LightInTheBox (NYSE: LITB). Meantime, search leader Baidu (Nasdaq: BIDU) is also in the headlines as it searches for its own e-commerce business model, with reports it has made a major investment in a site being developed by PC giant Lenovo (HKEx: 992). The flurry of moves reflects the hyperactive state of competition in China’s e-commerce market, which requires constant innovation in order to survive. 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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Just 58.7 Pct Of Products Genuine In Random Government E-commerce Audit (Chinese article)
WeChat Unveils First Big Advertisers For Moments Function, Includes BMW, Vivo (Chinese article)
Actress Zhao Wei Invests HK$5.1 Bln In Alibaba (NYSE: BABA) Film Unit (Chinese article)
Wanda Invests $1 Bln In Sydney Land Development Project (Chinese article)
Lenovo (HKEx: 992) Brings Motorola Back to China as Moto X Phone Released (English article)
The following press releases and media reports about Chinese companies were carried on January 10-12. To view a full article or story, click on the link next to the headline.
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