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Journalist China
Business news from China By Doug Young.
Doug Young, journalist, has lived and worked in China for 20 years, much of that as a journalist, writing about publicly listed Chinese companies.
He is based in Shanghai where, in addition to his role as editor of Young’s China Business Blog, he teaches financial journalism at Fudan University, one of China’s top journalism programs.
He contributes regularly to a wide range of publications in both China and the west, including Forbes, CNN, Seeking Alpha and Reuters, as well as Asia-based publications including the South China Morning Post, Global Times, Shanghai Daily and Shanghai Observer
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 worrisome “vampire” moniker heaped on Alibaba’sYu’ebao has died a quiet and appropriate death, with word that China’s top banker has no plans to kill the wildly popular investment product. The pronouncement from central bank Governor Zhou Xiaochuan caps a brief period of turbulence for Yu’ebao, beginning when an influential financial commentator branded the product a “vampire” nearly 2 weeks ago. That comment triggered a heated debate about new competition that private companies are suddenly posing for stodgier state-run banks, which until recently were the only low-risk option for most consumers to deposit their savings. But Zhou didn’t completely let Yu’ebao off the hook, adding that the fast-rising private banking sector needs to be more tightly regulated. Read Full Post…
Anti-monopoly regulator may need to brandish veto stamp
After years of fragmentation, China’s Internet has undergone a sudden and radical overhaul over the past year, with 3 major firms emerging as major consolidators. The frenzy of new tie-ups and acquisitions has been a welcome development, helping to cool overheated competition in a wide array of sectors where most companies were losing money.
But with the emergence of Alibaba, Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU) as the 3 major consolidators, China’s anti-monopoly regulator should start to give closer scrutiny to future deals to avoid too much reduction in the competition necessary to ensure future innovation and consumer choice. Such scrutiny could and should ultimately lead to the veto of some future deals, especially larger ones, by regulators who need to become more assertive in the space. Read Full Post…
Chinese car makers are fueling a new global buying binge of clean-energy assets, with the latest word that privately owned Geely Automobile (HKEx: 175) is buying a British electric car startup. Geely’s deal comes just weeks after China’s Wanxiang Group completed its second major acquisition of a clean energy firm in the US, hinting at a growing wave of global M&A by tech-hungry Chinese car makers. This flurry of deals also comes as China’s leading electric vehicle (EV) maker, BYD (HKEx: 1211; Shenzhen: 002594), spotlights new government data that showcases its own technology development prowess. Read Full Post…
iKang Healthcare could find the going tough in New York with its newly announced plan for a Nasdaq IPO, at least based on the lackluster record for others from China’s medical sector. iKang has become the latest in a growing list of Chinese firms lining up for New York listings this year, following its first public filing for a plan to raise up to $150 million. But while most Chinese IPO candidates so far have come from the Internet space, iKang comes from a Chinese healthcare sector that has failed to generate much interest from US investors despite its huge growth potential. Read Full Post…
After a bit of deliberation, I decided to focus this week’s column on the recent debate over firecrackers in Shanghai rather than the feistier and fast-moving brouhaha over taxi apps that has also been making headlines. The taxi topic is perhaps a bit sexier and quite colorful, centered on capitalistic cabbies who refuse to pick up regular passengers as they pursue more lucrative customers who book through taxi apps.
But the firecracker issue seems more substantive, speaking to the concept of cultural traditions, their value in society, and how and whether they should adapt with changing social conditions. As the New Year’s season officially ends, I’m also running out of time to raise this interesting topic, which has already largely disappeared from the headlines as people look forward to spring and the warmer weather ahead. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 4. To view a full article or story, click on the link next to the headline.
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Sinopec (HKEx: 386) Sale Points To Next Round Of State Privatization (English article)
China’s 2014 January Handset Shipments Down 19 Pct YoY (English article)
Vipshop (NYSE: VIPS) Reports Unaudited Q4 And Full Year Results (PRNewswire)
Healthcare Provider iKang Healthcare Group Files For $150 Mln Nasdaq IPO (English article)
Just a half year after pooling their online search assets, leading web firm Tencent (HKEx: 700) and the much smaller Sohu (Nasdaq: SOHU) are reportedly in talks to also merge their video businesses amid a broader wave of consolidation sweeping China’s Internet. I have some doubts about whether this new deal will happen for reasons I’ll explain shortly, though I’m far less skeptical now than I would have been at this time a year ago. If such a deal does happen, it could mark the latest step in what could become Tencent’s eventual acquisition of Sohu, one of China’s oldest Internet companies. Read Full Post…
Opportunities for me to write about former solar pioneer Suntech (OTC: STPFQ) are growing fewer with each passing day, as its life as an independent company nears an end with the imminent finalization of its bankruptcy liquidation. That said, a company announcement saying that a new Suntech has emerged after the yearlong bankruptcy storm seems like a good opportunity to write about this company one last time before it and its stock permanently disappear. The announcement features a photo of Suntech’s youthful looking new CEO, Eric Luo, and says the company is preparing a new push into Europe, starting with Britain. (company announcement) Read Full Post…
The recent window of positive sentiment towards Chinese tech firms continues to fuel a wave of offshore IPO plans, with video sharing site Xunlei and Lenovo (HKEx: 992) parent Legend Holdings the latest subjects of new listing rumors. All these reports come as a top New York Stock Exchange executive predicts 15-20 Chinese firms will list in New York this year. (English article) That forecast by David Ethridge, a senior vice president at NYSE Euronext, certainly looks quite bullish, especially compared with only 6 companies that listed in New York last year and just 2 in 2012. But it’s also worth noting the figure is a bit more conservative than another forecast earlier this month from an unnamed investment banking source for as many as 30 New York listings this year. (previous post) Read Full Post…
Leading telco China Mobile (HKEx: 941; NYSE: CHL) is talking tough in Barcelona at the world’s top trade show, detailing aggressive plans to quickly boost its new 4G service in a bid to take on the massive challenge from Tencent’s (HKEx: 700) wildly popular WeChat mobile messaging service. I’ve previously criticized China Mobile for failing to innovate and relying too much on its highly protected status in China’s telecoms services markets. But this new series of announcements seems to highlight a newer posture at the state-run behemoth, hinting that it may finally start to become more dynamic in response to a growing number of private sector threats. Read Full Post…
