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…
On this day before Christmas, e-commerce giant Jingdong is making new noises that indicate it may make another attempt at an IPO in the new year, with word that it finally became profitable in the first three quarters of 2013. Meantime, the small but longtime Nasdaq-listed Linktone (Nasdaq: LTON) has announced it plans to voluntarily de-list from the Nasdaq to save cash, continuing the steady stream of departures by many underappreciated US-listed Chinese firms. Unlike other firms to de-list in the current wave, Linktone’s move isn’t a true privatization and looks more like a pure effort to save cash, indicating the company may be struggling financially. Read Full Post…
A recent rush into financial services by Chinese Internet firms took a new twist last week when China Unicom (HKEx: 762; NYSE: CHU), the nation’s second biggest wireless carrier, announced it will move into the space with the establishment of a new joint venture. Unicom joins China’s major Internet companies and a wide range of other firms in launching such joint ventures, with Alibaba, Tencent (HKEx: 700) and Baidu (Nasdaq: BIDU) all announcing similar tie-ups this year. Read Full Post…
The recent rush by Chinese web firms into the financial services has gained a new member, with word that real estate services SouFun (NYSE: SFUN) will enter the sector. I’ve generally been skeptical of this sudden swarm into financial services, which was touched off earlier this year by e-commerce leader Alibaba, since this new stream of online investment products looks rife with potential for controversy. But that said, this latest move by Soufun actually looks quite logical and shrewd, since the company’s core real estate business already has very close ties with the traditional financial services industry. Read Full Post…
Smartphone makers may soon be getting an ally from China’s cash-rich Internet companies, with word that e-commerce leader Alibaba is preparing a massive giveaway in a bid to boost its mobile business. This move looks strikingly similar to something Alibaba did nearly a decade ago, when it made the strategic decision to offer its e-commerce services for free on its newly launched Taobao platform. That decision was derided by eBay (Nasdaq: EBAY), its chief rival in China at the time, which said that giving away services for free was not a real business model. As Chinese Internet historians know, eBay ultimately lost that battle and Alibaba has gone on to become one of the world’s biggest e-commerce companies. Read Full Post…
First it was smartphones, then it was Internet TV, and now wireless routers have become the latest flavor of the day for Chinese web firms as everyone looks to drive traffic to their sites and services in the fast-evolving market. I previously wrote when security software specialist Qihoo 360 (NYSE: QIHU) entered the router space in June, and now a new report says smartphone maker Xiaomi, search leader Baidu (Nasdaq: BIDU) and game specialist Shanda are preparing to enter the sector as well. Meantime in a separate but related telecoms move, leading telco China Mobile (HKEx: 941; NYSE: CHL) is making a feeble move into the international market with a relaunch of its Jego service that it suspended shortly after an original roll-out earlier this year. Read Full Post…
Note: After originally publishing this article, a Qunar spokesman pointed out that the company’s report that it had $80 million in cash was as of September 30, which would not have included the $194 million that it raised in its IPO, which occurred at the beginning of November.
Newly listed Internet companies Qunar (Nasdaq: QUNR) and LightInTheBox (NYSE: LITB) are trying hard to kill a recent window of positive sentiment towards Chinese IPOs in New York, with each announcing quarterly results that can only be described as disappointing. Not surprisingly shares of both companies tumbled after the results came out, with LightInTheBox falling well below its IPO price. More broadly speaking, this outcome reflects the pressure that Chinese Internet companies feel to put on their prettiest faces before their IPOs, which creates disappointment when a clearer picture inevitably emerges in the following months. Read Full Post…
As the sun rapidly sets on former solar pioneer Suntech (OTC: STPFQ), I thought I’d take a look at the latest reports that show just how closely the company relied on state support. At the same time, another major development has seen Suntech’s shares finally de-list from New York, where they have traded since its 2005 IPO. The de-listing is something that should have happened long ago, even though investors continued to bet that Beijing would rescue Suntech ever since the company was forced into bankruptcy back in March. Read Full Post…
Today marks the official highpoint of earnings season for US-listed Chinese companies, with at least 4 of the ones I cover reporting their results. With all that information flooding into the market, I thought I’d look at video site Youku Tudou (NYSE: YOKU) and e-commerce company Dangdang (NYSE: DANG), 2 money losers that are trying desperately to claw their way to profits. The news looks positive for both, with Dangdang reporting its losses continue to shrink as Youku has finally come out and dared to utter the word “profit” in its latest report. Read Full Post…
Two highly successful IPOs late last week by Chinese tech firms may officially mark the arrival of spring for such offerings after a long winter. But now that spring has finally come on so strong, the new question becomes: Is an overheated summer on the way? My answer to that question is “quite possibly”, following the very strong debut last Friday for Qunar (Nasdaq: QUNR) the fast-rising online travel site that hopes to someday take on industry leader Ctrip (Nasdaq: CTRP). Qunar’s meteoric debut follows the strong opening a day earlier for online classified advertising site 58.com (NYSE: WUBA), which rose 41 percent on its first trading day. Read Full Post…
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.
