Canadian Solar (Nasdaq: CSIQ) was one of the best performers of China’s rebounding solar sector last year, and now it’s testing investor appetite for its comeback story with a plan to raise about $200 million by issuing stock and bonds. Investors gave the plan a lukewarm response, sparking a sell off that saw Canadian Solar’s shares drop 7.5 percent after the announcement. Of course it’s also worth noting that Canadian Solar stock rose more than 10-fold last year, as it became the first major player to return to profitability after a prolonged sector downturn. Read Full Post…
One of China’s biggest online entertainment companies is rapidly disappearing from the publicly listed realm, with word that Shanda Games (Nasdaq: GAME) has become the latest US-listed Chinese firm to receive a management-led buyout offer. The news came as a surprise to me, since many believed that Shanda’s parent, Shanda Interactive, wanted to follow a strategy of listing its various units individually after it made its own privatization 2 years ago. But from another angle, this de-listing plan isn’t all that unexpected since Shanda Games’ shares have languished since they were first listed in 2009. Read Full Post…
I was a bit surprised to read that the US securities regulator is taking drastic action against the 4 main auditors for New York-listed Chinese firms, in its bid to get them to hand over records for companies suspected of financial fraud. Investors were also probably surprised by the move, which sparked a sell-off in shares of many of the US-listed Chinese firms that could suddenly lose their auditors if the US Securities and Exchange Commission (SEC) executes its decision. That decision had the SEC say it will impose a 6-month suspension on the China arms of the “Big 4” US accounting firms from doing audits on any US-listed companies. Read Full Post…
When does an 87 percent rise in your share price in just 3 months make you a laggard? The answer: When your name is online travel agent Qunar (Nasdaq: QUNR), and the 87 percent rise makes you the worst performer among a quartet of Chinese Internet companies to make New York IPOs at the end of last year. The sudden surge in investor interest towards these companies will almost certainly lead many Chinese Internet firms to speed up their New York listing plans in the first quarter of this year, starting off with word that Tuniu, another online travel services firm, is accelerating its plans for a listing in the next few months. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 21-23. To view a full article or story, click on the link next to the headline.
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China Mobile To Launch iPhone On 4G & 3G Networks on January 17 (PRNewswire)
Everbright Bank (HKEx: 6818) Slides In HK debut Amid China Cash Crunch Fears (English article)
Alibaba Slashes Cloud Computing Prices Up to 50 Pct (English article)
Cofco Becomes Second Largest Stakeholder In Spirits Maker Guizhou Xijiu (Chinese article)
Linktone (Nasdaq: LTON) To Reduce Costs Through Voluntary Delisting (PRNewswire)
Ctrip (Nasdaq: CTRP) Leads Over $100 Mln Investment In eHi Auto Services (PRNewswire)
I thought I would end the week with 2 interesting auto stories, one spotlighting legal speed bumps in the market and the other highlighting big potential in the car rental industry. The first case has US electric car maker Tesla (Nasdaq: TSLA) officially driving into China despite its failure to resolve a trademark dispute, meaning it has no official Chinese name as it enters the market. The second case has leading online travel agent Ctrip (Nasdaq: CTRP) tying up with a car rental start-up, representing its latest move into a related area with strong growth potential. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 20. To view a full article or story, click on the link next to the headline.
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Hershey (NYSE: HSY) To Buy Majority Of Shanghai Golden Monkey Food Co (Businesswire)
AsiaInfo-Linkage (Nasdaq: ASIA) Stockholders Approve of Merger Agreement (PRNewswire)
Alibaba, Wanda Group Team Up On Movie Ticket Payments On Alipay (Chinese article)
Ctrip (Nasdaq: CTRP) Invests in Online Car Rental Firm Yongche (English article)
Tesla (Nasdaq: TSLA) Starts Offering Cars In China With No Chinese Name (English article)
After gobbling up billions of dollars worth of debt from Chinese Internet companies over the last year, investors may finally be starting to get full on the bond feast with word that online real estate services firm E-House (NYSE: EJ) has sharply trimmed its plan for a new major offering. One can interpret this unexpected twist in a number of ways, which I’ll explain shortly. But from my perspective the development looks like one of the first signs that a resurgence of interest in US-listed Chinese tech firms over the last few months could quickly dim in the first half of 2014 as investors turn their attention to other companies. 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…
When is a 92 percent profit increase reason for pessimism? The answer to that question would normally be “never”, but we’re seeing a rare case where a near-doubling in profit for leading online travel agent Ctrip (Nasdaq: CTRP) has sparked a sell-off in the company’s shares. Ctrip isn’t alone in the bearish trend, with rival Qunar (Nasdaq: QUNR) also moving steadily downward in the last 2 days after a spectacular IPO last week. If I were an investor, I wouldn’t worry too much about this sell-off, which looks largely technical. But both stocks could be set for a few months of slow or no growth, following their recent spectacular run-ups. Read Full Post…
The following press releases and media reports about Chinese companies were carried on November 6. To view a full article or story, click on the link next to the headline.
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Beijing Slashes Car Sales Quota In Anti-Pollution Drive (English article)
Chinese Auto Website Autohome Files For $120 Mln IPO (English article)
Socialgist Confirms New Partnership With Renren (NYSE: RENN) (PRNewswire)
Trina Solar (NYSE: TSL) Announces Updates To Q3 Guidance (PRNewswire)
