Bottom line: Postal Savings Bank’s IPO is likely to price weakly and make a flat trading debut due to waning enthusiasm, while Anbang could make a similarly large IPO next year that will get an equally tepid reception.
Anbang eyes HK IPO
The world’s biggest IPO in 2 years is quickly running out of steam, with word that a Hong Kong listing by Postal Savings Bank of China, the nation’s last national bank to list, is set to price near the bottom of its range. Meantime, what could easily become one of next year’s biggest offering has just popped into the headlines, as insurance giant Anbang is saying in one of its first-ever foreign media interviews that it wants to make its own listing, also in Hong Kong. Read Full Post…
The following press releases and news reports about China companies were carried on September 21. To view a full article or story, click on the link next to the headline.
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Postal Savings Bank of China Set to Price Hong Kong IPO Near Low End (English article)
New Disclosure Shows Tencent (HKEx: 700) Owns 45 Pct of Search Engine Sogou (Chinese article)
Bottom line: Yum and McDonald’s are likely to complete spin-offs of their China units by year end, offering a new business template for multinationals that should be encouraged with incentives from Beijing.
Yum names board for China unit
Separate plans by fast food giants KFC and McDonald’s (NYSE: MCD) to spin off their China businesses into separate companies were in the headlines last week, in a new trend that could see other big multinationals take similar steps to address the market’s huge size and unique qualities. Each company is using a slightly different strategy, with KFC parent Yum Brands (NYSE: YUM) choosing a key strategic partner and separate listing for its China unit. By comparison, McDonald’s is simply selling its China stores to a strategic partner in a franchise-style arrangement, while maintaining control of its bigger China operations. Read Full Post…
Bottom line: NetEase is likely to complete a spin-off of its news division, possibly through a sale to Sina, while Postal Savings Bank’s massive IPO will meet with tepid reception due to limited growth prospects.
NetEase plans portal spin-off
Two significant but very different IPOs are in the headlines as we get set for the Mid-Autumn holiday break, one from China’s vibrant private sector and the other from a big state-run behemoth. In the former category is NetEase (Nasdaq: NTES), one of China’s oldest Internet companies, which is reportedly mulling an IPO for its news portal, one of its original businesses with a history dating back to the 1990s. In the other news, China Postal Savings Bank has reportedly placed most of the shares for its massive $8 billion listing with a group of 6 cornerstone investors. Read Full Post…
The following press releases and news reports about China companies were carried on September 14. To view a full article or story, click on the link next to the headline.
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China Postal Savings Bank $8.1 Bln IPO Mostly Covered by Cornerstone Investors (English article)
LeEco (Shenzhen: 300104) Launches Smartphones in Russia (Chinese article)
Microsoft (Nasdaq: MSFT), Huawei Join in Cybersecurity Message (English article)
NetEase (Nasdaq: NTES) Plans to Spin Off News Unit for IPO or Sell for $300 Mln (Chinese article)
Second-Hand Car Site Guazi Raises $250 Mln, to Spend 1 Bln Yuan on Ads (Chinese article)
Bottom line: Beijing should mete out stiff punishment, including big fines and jail sentences, for companies that fraudulently obtained subsidies under the government’s program to promote new energy vehicle development.
Chery accused of fraud in new energy car scandal
What started as a wave of criticism against new energy car makers for producing mediocre products that nobody wanted is rapidly becoming a major scandal, with reports that many of those companies submitted fake information in order to get lucrative government subsidies. The scandal netted major car makers King Long and Chery last week, and reports have emerged that even industry leader BYD (HKEx: 1211; Shenzhen: 002594 )may be suspected of illegally obtaining government grants.
Such trickery is an extension of another trend that sees Chinese companies rush into unfamiliar sectors that Beijing has targeted for development, often resulting in a flood of mediocre or inferior products into the market. Such rushes not only create big market disruptions, but also result in huge sums of wasted investment and slow down development of emerging industries. Read Full Post…
Bottom line: Xiaomi’s progress in India shows its global expansion is moving ahead despite a recent setback in Brazil, but it will need to replicate that success in other markets to revive its sputtering fortunes.
Xiaomi wristband wins North Korean fans
Former smartphone sensation Xiaomi is in a couple of headlines as the week winds down, both showing how the company is looking to foreign markets to offset its sputtering business in China. The bigger of the items shows how quickly Xiaomi is advancing in India, where it has consolidated its position as the third largest brand just 2 years after entering the market. The second item is a bit quirkier, saying that Xiaomi’s wearable fitness band has become a hot-seller in North Korea, a market that isn’t exactly known for its consumer culture. Read Full Post…
The following press releases and news reports about China companies were carried on September 9. To view a full article or story, click on the link next to the headline.
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Foxconn (Taipei: 2317) Invests $120 Mln in Chinese Ride-Hailing App Didi Chuxing (English article)
China’s XIO Group Completes Acquisition of JD Power and Associates (PRNewswire)
Western Digital (Nasdaq: WDC), Unisplendour Celebrate New Joint Venture (Businesswire)
In North Korea, China’s Xiaomi Gets the People’s Pulses Racing (English article)
Former Homeinns CEO Takes Gen Mgr Spot at Merger Partner BTG Hotels (Shanghai: 600258)
The following press releases and news reports about China companies were carried on September 8. To view a full article or story, click on the link next to the headline.
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Oppo Becomes Major Southeast Asia Smartphone Player, Xiaomi Enters India Top 3 (Chinese article)
SocGen (Paris: SOGN ) in Talks to Sell 49 Pct of China Asset Manager to Warburg (English article)
China Mobile (HKEx: 941) Installs Phone Scam Warning System in Inner Mongolia (Chinese article)
Ctrip (Nasdaq: CTRP) Announces Pricing of Offering of ADSs (PRNewswire)
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)
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)
