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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
It’s quiet outside as markets reopen on this first work day after the New Year, so I thought I’d start off 2014 with some predictions for the year ahead in the sectors that I cover. Generally speaking, I do think the first half of the year will see a continuation of strong momentum that began in late 2013 for many sectors. But that momentum will slow as we near the mid-year mark, and 2014 could end with a whimper as the Chinese economy continues to slow and Beijing pushes for higher quality growth. Read Full Post…
The microblog realm has been buzzing loudly this final week of 2013 with stories that are likely to be major themes in the new year, led by a probable IPO by Jingdong, China’s second largest e-commerce firm. Meantime, e-commerce leader Alibaba was showing no signs of slowing down the endless promotion of its recently launched mobile instant messaging (IM) service Laiwang, as it tries to catch up with Tencent’s (HKEx: 700) hugely popular WeChat rival service. Lastly, tweets coming from top e-commerce firms Dangdang (NYSE: DANG) and Suning (Shenzhen: 002024) hint that 2014 could see the start of consolidation in the booming but also fiercely competitive parcel delivery sector, perhaps including a few major acquisitions and closures and a long-awaited domestic IPO for China Postal Express, the parcel delivery unit of China’s Post Office. (previous post) Read Full Post…
We’ll start off this first day of the new year with what could well become a major theme for 2014, with word that make-up giant Revlon (NYSE: REV) is officially pulling the plug on its China operations. This timing of this move, which was officially announced just before year end, was most likely related to accounting issues, as Revlon probably wants to take some or all of its resulting $22 million write-down in the fourth quarter. But that said, Revlon’s withdrawal shines a spotlight on the tough market for consumer goods in China, as a slowing economy leads many to cut back their spending on non-essential daily items like make-up. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 2. To view a full article or story, click on the link next to the headline.
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Revlon (NYSE: REV) To Exit Operations In China, Cut 1,100 Jobs (English article)
China Approves $353 Mln Of Share Sales As IPOs Resume (English article)
Xiaomi Sets Target Of 40 Mln Smartphone Sales For 2014 (Chinese article)
New VNO Licensees To Be Restricted To Specific Areas (Chinese article)
Qihoo 360 (NYSE: QIHU) In Deal To Restore Apps To Apple Store (Chinese article)
Just days after announcing a new acquisition designed partly to rid its various sites of piracy, leading search engine Baidu (Nasdaq: BIDU) has removed all pirated material from one of its popular video sharing sites. The timing of this move looks quite interesting for a number of reasons, including the fact that Chinese media are saying Baidu has just been fined by Beijing for piracy violations. The move also comes just 6 weeks after Baidu was sued for piracy by China’s leading video sites, which took the action in an unusual alliance with Hollywood’s most powerful trade association. But perhaps most interesting is the fact that the US could soon release its latest list of the world’s most “notorious” piracy sites, and Baidu has no desire to see its name appear on the list. Read Full Post…
A couple of year-end announcements from solar majors Trina (NYSE: TSL) and ReneSola (NYSE: SOL) are pointing to a coming flood of new orders for the entire solar panel sector next year, fueled by huge new demand from their home China market. I fully expect we’ll see a steady stream of similar announcements throughout next year and even into 2015, providing a flow of good news for rebounding solar stocks after a 3-year sector downturn. But amid the bright news, potential downside lurks in the risk that payments for some of these mega-orders could be slow to come, as many solar plant operators are big state-owned entities that may lack the funds and skills to pay for and operate all of their ambitious new projects. Read Full Post…
It seems quite appropriate that we’re ending 2013 with word of yet another acquisition and New York IPO plan in China’s Internet space by leading search site Baidu (Nasdaq: BIDU), capping a year that will go down as the most active for Chinese online M&A in the sector’s short but colorful history. It’s certainly appropriate that Baidu’s name is connected to both of these final news bits for the year, since the company and e-commerce leader Alibaba were the 2 most active drivers of this year’s M&A wave. Read Full Post…
The accelerating anti-graft campaign in China could be entering a new phase, with word that Britain’s anti-corruption watchdog has formally launched an investigation into jet engine maker Rolls-Royce. The move marks the latest investigation of a major foreign firm related to its China operations, as Beijing itself engages in an increasingly aggressive campaign to root out corruption at state-owned enterprises. While this latest investigation is certainly a welcome development in the drive to clean up China’s business environment, the acceleration of the broader campaign could also create major disruptions in the country’s business world over the short-term. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 28-30. To view a full article or story, click on the link next to the headline.
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China’s 4G Users To Reach 30 Mln in 2014 – Regulator (Chinese article)
Perfect World (Nasdaq: PWRD) Sells Chinese Online Reading Unit To Baidu (Nasdaq: BIDU) (PRNewswire)
Oceanwide Real Estate (Shenzhen: 000046) To Spend $200 Mln On First US Project (Chinese article)
GM (NYSE: GM) Recalls 1.5 Mln Cars In China Over Fuel Pump Bracket (English article)
After moving extremely slowly throughout the year, the telecoms regulator is suddenly surprising everyone with a flurry of major new announcements in the final weeks of 2013. First the Ministry of Industry and Information Technology (MIIT) issued long-awaited 4G wireless licenses earlier this month, and now we’re learning that it has just issued its first batch of virtual network operator (VNO) licenses. This sudden issue of VNO licenses comes as a bit of a surprise, since there were no advance indications for the timing and many believed the MIIT wouldn’t make the move until next spring. Read Full Post…
When someone writes a future book about the history of telecoms in China, the period between 2008 and 2013 could easily be titled “The Lost Period For China Unicom (HKEx: 762; NYSE: CHU),” a reference to the numerous squandered opportunities for China’s second largest wireless carrier during that time. Now we’re getting word that this “lost period” could extend into 2014 and perhaps beyond, with reports that Unicom has undergone yet another major management overhaul that has become a regular occurrence at the company over the last 5 years. Read Full Post…
