Bottom line: New buyout bids for Dangdang and YY look opportunistic due to a recent sell-off in their shares, while Baixing.com could lead a new wave of domestic IPOs for Chinese Internet firms next year.
Dangdang gets buyout offer
A few lingering buyout offers for US-listed Chinese firms are trickling in after Thursday’s market rally in China, with e-commerce stalwart Dangdang (NYSE: DANG) and the newer social networking site YY (Nasdaq: YY) both announcing new privatization plans. These 2 announcements look quite opportunistic, as they come after a sell-off that has seen Dangdang and YY’s shares plunge over the last 2 weeks, but right after a major one-day China rally that spilled over into the US.
At the same time, online classifieds site Baixing.com is charting a path for the future, with word that it’s scrapping its variable interest entity (VIE) structure that is typically used for Chinese firms looking to list in New York. The company is reportedly making the move as it eyes a domestic Chinese listing instead, and also as it receives new funding from online search leader Baidu (Nasdaq: BIDU). Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 6. To view a full article or story, click on the link next to the headline.
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Cheetah Mobile Makes Additional IPO Filing, Discloses Q1 Results (Chinese article)
Baosteel, Aurizon (Sydney: AZJ) Bid For Aquila In $1.3 Bln Iron Deal (English article)
Tencent Buys 11.28 Pct Of NavInfo (Shenzhen: 002405) For 1.1.7 Bln Yuan (Chinese article)
Dianping Invests in Food Ordering Site Ele.me (English article)
I wanted to take this opportunity to commend Internet companies YY (Nasdaq: YY) and Vipshop (NYSE: VIPS) for taking the risky move of launching New York IPOs at the heart of a deep freeze in investor sentiment towards Chinese companies in 2012. The pair, which have both just announced their latest stellar results, were 2 of the only major offerings by Chinese firms in New York that year. Shares for both received an initial tepid reception due to the chilly investment climate at the time. But all of that has changed more recently with a sudden surge in investor interest, and anyone who was brave enough to buy the companies’ shares shortly after their IPOs has been handsomely rewarded. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 5. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on November 7. To view a full article or story, click on the link next to the headline.
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Smithfield Owner Shuanghui Hires Banks For Up To $6 Bln HK IPO (English article)
Suntech (NYSE: STP) Files Application For Provisional Liquidation (PRNewswire)
Alibaba Won’t Seek Banking License For Now – Microlending CEO (Chinese article)
Canada Govt Blocks Lenovo (HKEx: 992) From BlackBerry Bid Over Security – Report (Chinese article)
How quickly things can change! China tech stocks are suddenly back in vogue on Wall Street after more than 2 years of frigid sentiment, as evidenced by an unexpected surge in demand for 2 new offerings from classified ads site 58.com (NYSE: WUBA) and online travel agent Qunar. My initial reaction to the strong demand is relief, since it previously looked like shares of Chinese tech firms might remain in an endless winter after a series of accounting scandals in 2011 that rocked investor confidence. But now I’m just a bit concerned that this sudden explosion in interest may lead to unrealistic expectations for these companies, causing turbulence for their shares.
E-commerce firm LightInTheBox (NYSE: LITB), the only major Chinese company to list in New York this year, is learning that Wall Street can be a volatile place, following the release of its maiden earnings report that showed slowing growth. Meantime, another much smaller Chinese micro-lender called China Commercial Credit (Nasdaq: CCCR) is making a similar discovery following a strong reception for its own microscopic New York IPO last week. Read Full Post…
When is a modestly successful IPO cause for big celebration? The answer is: When your name is LightInTheBox, and you’ve just completed the first IPO in New York by a Chinese company in a half a year. Not only is LightInTheBox the first major New York IPO by a Chinese firm this year, but it’s also only the third such offering since the beginning of 2012, reflecting the chilly investor climate that has stifled such listings on Wall Street for more than 2 years. Read Full Post…
The inevitable has happened as soaring discount online retailer Vipshop (NYSE: VIPS) finally became too irresistible a target for short sellers, who sensed the company’s stock had become a little too overinflated. This kind of attack doesn’t surprise me at all since Vipshop shares have risen more than 7-fold over the last 8 months. I’m not a big fan of short sellers in general, but I might even have to commend the attacker in this case for spotting an easy target and most likely making some big money with relatively minimal effort. Read Full Post…
After a dismal first quarter, we’re seeing the latest signs of new life in the moribund market for offshore Chinese IPOs with the planned launch of 2 major new offerings later this week in Hong Kong. The pair of IPOs, one for brokerage Galaxy Securities and the other for a unit of oil major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP), could raise up to $3.5 billion combined, following a dismal first quarter for new listings. The IPOs would also come as online retailer LightInTheBox seeks to launch the year’s first public offering for a Chinese company in New York later this month. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 4-6. To view a full article or story, click on the link next to the headline.
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EU To Propose Punitive Duties On Chinese Solar Panels (English article)
