Bottom line: China’s “Big 3” Internet tycoons are likely to see their fortunes continue to grow at rates far faster than the broader economy over the next year, and they could even overtake some wealthier real estate magnates.
Jack Ma named China’s richest Internet tycoon
Hong Kong’s Li Ka-shing may still lead the list of wealthiest men in China and Hong Kong, but his traditional formula for success is rapidly losing ground to China’s fast-rising Internet magnates. The heads of China’s “Big 3” Internet firms were all among the top 10 people on this year’s just-published Forbes list of the wealthiest men in China and Hong Kong, spotlighting the huge role that the Internet is playing in China’s economy. Whereas Li’s fortune took decades to build, the founders of Alibaba (NYSE: BABA), Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU) made their fortunes much more quickly, mostly over the last decade. 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…
The following press releases and media reports about Chinese companies were carried on January 31 to February 2. To view a full article or story, click on the link next to the headline.
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SAIC, Alibaba (NYSE: BABA) Agree To Work Together To Fight Piracy (Chinese article)
Tencent (HKEx: 700) Inks Exclusive Online Partnership For NBA Games In China (English article)
55Tuan Makes New IPO Filing, Raising Fund Raising Target To $65 Mln (Chinese article)
Retail Investment Product Site Juzi Licai Wins $100 Mln Series B Funding (English article)
Wang Jianlin Recaptures Title Of China’s Richest Person (English article)
Bottom line: Wanda’s new e-commerce initiative looks overvalued following a recent investment, but could have the resources and expertise it needs to pose a serious challenge to Alibaba and JD.com.
Wanda raises money for e-commerce JV
Fresh from the successful listing of its core real estate arm, Wanda Group is pushing full-steam ahead into another major new initiative in e-commerce, aiming to challenge industry leaders Alibaba (NYSE: BABA) and JD.com (Nasdaq: JD). Wanda’s colorful and very wealthy founder Wang Jianlin was busy talking up his e-commerce initiative this week, announcing a major new funding and important new partner for the project. Wang has forged ahead in several new areas over the past year, including hotels, theme parks and movie theaters, as he attempts to build up an entertainment empire to rival global names like Disney (NYSE: DIS). Read Full Post…
Bottom line: Haitong’s new share offer is capitalizing on strong sentiment toward brokerages and could be used to fund an overseas purchase, while Wanda’s theme park foray looks too aggressive and is likely to run into problems.
Haitong raises $3.9 bln in share sale
Big fund-raising is in the headlines today as we head into the end of 2014, with real estate giant Dalian Wanda continuing to talk up its upcoming blockbuster IPO as Haitong Securities (HKEx: 6837; Shanghai: 600837) takes advantage of positive market sentiment to make a major new share float. Both plays come as Hong Kong and the US get set to officially wrap up a banner year for fund raising by Chinese companies, fueled by strong investor sentiment. Everyone is racing to finish their fund raising before December 31, since the first quarter of the year is typically a quiet period for such activity and there’s no guarantee this wave of positive sentiment will last into 2015. Read Full Post…
Bottom line: Wanda chief Wang Jianlin could purchase a controlling stake in MGM as he looks to take over a Hollywood studio, while his Wanda Dalian property IPO will get a tepid reception but perform well over the longer term.
Wanda’s Wang Jianlin eyes Lions Gate, MGM
Property magnate Wang Jianlin is used to getting what he wants, but 2 new headlines indicate his Wanda Group may have to settle for compromise in a pair of its latest forays, one involving a Hong Kong IPO and the other involving his desire to purchase a major Hollywood studio. The former headline has Wang reportedly scaling back plans for a mega IPO in Hong Kong for Dalian Wanda, his group’s flagship property arm. The second and more intriguing news item has him seeking to buy a controlling stake in a major Hollywood studio, with Lions Gate (NYSE: LGF) and MGM mentioned as 2 possible candidates. Read Full Post…
There’s a bit of buzz in the travel space today, with word of major new initiatives in the hotel and airline sectors for global hotelier Hilton Worldwide (NYSE: HLT) and domestic real estate titan Wanda Group. The former will see Hilton roll out the welcome mat for one of its main low-cost brands in China, taking aim at names like Home Inns (Nasdaq: HMIN) and China Lodging Group (Nasdaq: HTHT). The latter move has Wanda’s talkative founder Wang Jianlin discussing a potential new airline launch, as his company also makes a big push into the travel and leisure sector. Read Full Post…
Wanda Group is already one of China’s leading commercial property owners, and now it’s taking aim at the fast-growing travel sector with word that it’s purchased a major travel agency in affluent Zhejiang province. There’s no financial detail on the deal, but the purchase should help to bolster Wanda’s position that has already made it China’s leading travel company just 2 years after its formation. The group could ultimately become one of China’s leading integrated travel and leisure companies if it eventually lists, providing an attractive alternative to the crowded field of publicly listed firms like online travel agent Ctrip (Nasdaq: CTRP) and leading hotel operator Home Inns (Nasdaq: HMIN). Read Full Post…
Two major new global investments are highlighting a recent trend that has Chinese buyers moving beyond their traditional comfort zones of resources and manufacturing and into other less familiar areas like real estate and sports clubs. The first case will see domestic insurance company Anbang Insurance buy New York’s landmark Waldorf Astoria hotel for a supercharged price of nearly $2 billion. The second deal has media reporting that Wang Jianlin, founder of real estate giant Wanda Group, is preparing to buy a stake in Spanish soccer club Atletico de Madrid. Read Full Post…
Hong Kong may be disappointed about losing the world’s biggest Internet IPO with the imminent trading debut of Alibaba in New York, but it’s getting a nice consolation prize with word of a major new listing plan by top commercial property developer Wanda Group. The Wanda reports are getting much less coverage than they might normally due to Alibaba fever, which will see the Chinese e-commerce leader raise more than $20 billion when its shares start trading on Friday in New York. But at up to $6 billion, the IPO for Dalian Wanda Commercial Properties will still qualify as one of the world’s biggest offerings for 2014. Read Full Post…
I don’t usually pay too much attention to the domestic Chinese IPO market, largely because most companies that list on the main boards in Shanghai and Shenzhen are stodgy state-run firms that aren’t open to foreign investment anyhow. But new reports that fast-rising real estate and entertainment star Wanda Group is planning 2 new offerings this year actually got me just slightly excited, especially as word buzzes that one of those will be for the company’s rapidly expanding China-based theater chain. While such an offering would almost inevitably come on one of the mainland-based stock exchanges, it would also probably attract huge attention from global investors if Wanda’s billionaire founder Wang Jianlin were to consider a dual listing in Hong Kong. Read Full Post…
