The following press releases and news reports about China companies were carried on September 7. To view a full article or story, click on the link next to the headline.
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Meituan-Dianping in Rumored Merger Talks with Baidu’s Nuomi, Dining Service (Chinese article)
Ctrip.com Proposes Offering of $750 Mln Convertible Senior Notes (PRNewswire)
China’s Online Chatter Muted Ahead of Apple (Nasdaq: AAPL) iPhone 7 Launch (English article)
Didi Chuxing Raises Shunfeng Car Service Prices 20-50 Pct in Some Cities (Chinese article)
Bottom line: Phoenix Satellite TV’s latest results show a traditional broadcaster that failed to make the transition to new media, and could auger a decline that sees the company close or get acquired in the next 5 years.
Phoenix reports sinking revenue
As second-quarter earnings season winds down, I thought I’d take a look at the newly released interim results from Phoenix Satellite TV (HKEx: 2008), a former Chinese media pioneer that’s in a clear state of decline with no sign of turnaround. I used to be a big fan of Phoenix and saw a big future for the company, after it became one of the first independent TV news providers in China in the early 2000s. But the company’s colorful founder Liu Changle hasn’t been very skillful at parlaying his early success into the new media realm, with the result that the company’s outlook is fading rapidly. Read Full Post…
Bottom line: The antitrust regulator’s decision to review Didi’s proposed union with Uber China marks the start of a new era of much-needed government oversight of major Internet mergers.
Antitrust regulator starts review of Didi-Uber union
After years of turning a blind eye to rapid consolidation in many emerging high-tech industries, China’s anti-trust regulator has finally adopted a more active posture with its recent decision to review the proposed landmark merger of homegrown car services firm Didi Chuxing with the Chinese unit of US rival Uber. The announcement by the Ministry of Commerce that the deal would require its approval caught Didi and Uber by surprise, since such a review would be the first for a major Internet deal since China rolled out its anti-monopoly law 8 years ago. Read Full Post…
The following press releases and news reports about China companies were carried on September 6. To view a full article or story, click on the link next to the headline.
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Alibaba (NYSE: BABA) Starts Selling Down Meituan-Dianping Stake (Chinese article)
Tencent (HKEx: 700) Passes China Mobile to Become Asia’s Most Valuable Firm (Chinese article)
LeEco (Shenzhen: 300104) Says Car Unit to Reach Volume Production in 3 Years (Chinese article)
O2O Grocery Platform Huimin Secures 1.3 Bln Yuan Series B Funding (English article)
Phoenix Satellite TV (HKEx: 2008) Reports Interim Results (HKEx announcement)
Bottom line: Yum’s selection of Primavera and Ant Financial to anchor its China unit spin-off look like reasonable choices, as it tries to put the business back on solid footing before a New York IPO that should enjoy modest success.
Yum China sells stake to Primavera, Ant
After months of talks and speculation, fast food giant Yum Brands (NYSE: YUM) has announced that two firms with distinctly financial backgrounds will anchor its plan to spin off its China business. The larger of the investors, private equity firm Primavera, doesn’t look extremely exciting strategically, as it’s mostly a private equity investor with little experience in the tough retail sector. The second investor, Alibaba’s (NYSE: BABA) Ant Financial affiliate, looks a little more interesting since its core Alipay electronic payments service could help to propel Yum’s aging KFC and Pizza Hut brands into the modern era. Read Full Post…
That was my first reaction on reading a thinly sourced report on news portal Sina that Shanghai’s somewhat cerebral Oriental Morning Post was planning to cease publication on January 1 next year. I made some of enquiries of my own, and it seems the Sina report may have been a bit premature. But it does appear that plans are indeed in the works to shutter this venerable institution of Shanghai’s media scene. Read Full Post…
The following press releases and news reports about China companies were carried on September 3-5. To view a full article or story, click on the link next to the headline.
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China Opens Antitrust Investigation Into Uber’s Deal with Didi (English article)
Yum (NYSE: YUM) to Sell Stake in China Unit to Ant, Primavera Ahead of Spinoff (English article)
Bottom line: New Teavana-branded drinks at Chinese Starbucks will get a relatively strong reception, prompting the opening of experimental stand-alone Teavana stores in Beijing or Shanghai within a year.
Starbucks launches Teavana drinks in China
Not content with its phenomenal success in China already, trendy coffee chain Starbucks (NYSE: SBUX) is hoping to extend its winning streak in the market with the roll-out of new tea beverages from its sister Teavana chain. This particular move was actually announced back in March, but the two new Teavana-branded drinks just hit Starbucks stores this week, in line with the previously announced schedule for a September launch. Read Full Post…
Bottom line: UnionPay’s announcement that its cards are usable at nearly all US ATMs shows it is targeting local US customers, while stiff competition will limit the success of new Xiaomi and Huawei e-payment services.
UnionPay makes big gains in US
It’s been a busy week for Chinese companies in the electronic payments headlines, with 3 major names making big moves in the space. Leading the pack is industry stalwart UnionPay, China’s equivalent of MasterCard (NYSE: MA) and Visa (NYSE: V), which is saying its own credit cards are now accepted by an impressive 80 percent of US merchants. The other headlines are coming from smartphone makers Huawei and Xiaomi, which have announced roll-outs for China-based electronic payment services that will compete with other similar products from Apple (Nasdaq: AAPL) and Samsung (Seoul: 005930). Read Full Post…
The following press releases and news reports about China companies were carried on September 2. To view a full article or story, click on the link next to the headline.
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Starbucks (Nasdaq: SBUX) Launches Teavana Brand in China (English article)
China Approves NXP (Nasdaq: NXP) Sale of Standard Products Unit to Chinese Group (GlobeNewswire)
Over 80 Pct of Merchants in the US Accept UnionPay Credit Cards (Press release)
58.com (Nasdaq: WUBA) Rolls Out Long Work Day, Overtime Plan, Workers Quit (Chinese article)
JPMorgan (NYSE: JPM) Gets Wholly-Owned Asset Management License in China (English article)
Bottom line: Sina’s award of Weibo shares as a dividend reflects recent strong momentum in Weibo’s business, while Phoenix New Media’s firing of 3 top employees for disciplinary reasons will undermine its news division’s credibility.
Sina gives Weibo shares as dividend
Two of China’s leading news portals are in the headlines today, led by word that industry stalwart Sina (Nasdaq: SINA) is giving stock in its Twitter-like Weibo (Nasdaq: WB) unit to shareholders as a dividend. That particular news comes as shares of both Sina and Weibo have soared over the last 2 months, as Weibo finally starts to realize its profit potential.
Meantime, Phoenix New Media (NYSE: FENG) is in more dubious headlines, with word that 3 high-level employees from its news division have been fired for “serious violations of discipline.” There’s no mention of criminal charges in the reports, which cite an internal memo to employees. But it’s a bit noteworthy that the wording is identical to the frequently used phrase for high Communist Party officials being probed for corruption. Read Full Post…
