The following press releases and media reports about Chinese companies were carried on December 18. To view a full article or story, click on the link next to the headline.
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Baidu (Nasdaq: BIDU) To Buy Uber Stake In Challenge To Alibaba In China (English article)
Dalian Wanda Sets IPO Price At HK$48, Near Upper End Of Range (Chinese article)
Avon (NYSE: AVN) Ends Bribery Probe Tied to China With Guilty Plea, Fine (English article)
US Confirms Duties On Solar Goods From China, Taiwan (English article)
Unicom (HKEx: 762), China Telecom (HKEx: 728) To Expand LTE Trial Networks (Chinese article)
Bottom line: The target of Qihoo’s rumored smartphone purchase could be Coolpad, while Xiaomi’s new tie-up with Midea could be followed by similar pairings in a broader drive to develop smart appliances.
Qihoo eying Coolpad?
A couple of big deals are bubbling around in the smartphone space today, led by yet another new tie-up involving smartphone sensation Xiaomi, this time with home appliance maker Midea (Shenzhen: 000333). But the hyperactive Xiaomi is having to share the spotlight with the edgier security software specialist Qihoo 360 (NYSE: QIHU), which is reportedly eying a deal for its own major smartphone acquisition worth up to $1 billion.
Each of these deals has slightly different motivating factors, but the central theme is that companies like Qihoo and Xiaomi increasingly see smartphones as a central element of larger suites of product and services rather than just a stand-alone product. In Xiaomi’s case, the company already counts smartphones as its core central product and is trying to build up an ecosystem of related products and services like smart TVs and air conditioners. Qihoo is eying smartphones as a vehicle for propagating its core software and Internet services. Read Full Post…
Bottom line: Momo’s stock should continue to perform well over the next few months as investors ignore a scandal around its CEO, while Spring Airlines stock should also debut strongly later this month in its newly approved IPO.
Spring Airlines approved for Shanghai IPO
It seems investors aren’t too concerned when CEOs of their companies are accused of corporate crimes, at least based on the strong trading debut for mobile social networking app maker Momo (Nasdaq: MOMO). Frankly speaking, I’m not surprised about the strong performance for Momo, whose CEO was accused of stealing property from his former employer NetEase (Nasdaq: NTES) and using that property to start up his new company. The fact of the matter is that such dishonesty and unethical behavior is quiet common in China’s corporate sector, and thus is unlikely to result in any punishment, be it a jail sentence or even negative investor sentiment. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 12. To view a full article or story, click on the link next to the headline.
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Momo (Nasdaq: MOMO) Shares Shrug Off Allegations Against CEO In Debut (English article)
NQ Mobile (NYSE: NQ) Announces Resignation Of Chairman, Co-CEO Lin (PRNewswire)
Xiaomi Accused Of Copying Air Purifier Design From Japanese Firm (Chinese article)
Sony’s (Tokyo: 6753) PlayStation To Make China Debut Next Month (English article)
Baidu (Nasdaq: BIDU) Invests In Uber – Source (English article)
Bottom line: Xiaomi’s new smart air purifier looks like a good move to build up its ecosystem of interconnected smart devices, while LeTV’s new EV initiative is more likely a publicity ploy.
China’s entrepreneurial tech firms never miss a good business opportunity, and environmental plays are suddenly the flavor of the day with word of major new pollution-related plays by smartphone sensation Xiaomi and online video firm LeTV (Shenzhen: 300104). Xiaomi has announced it will enter the smart devices space with a new line of air purifiers aimed at consumers tired of breathing polluted Chinese air. Meantime, LeTV has announced its intent to get into the electric vehicle (EV) business, as China opens up that sector to encourage development of more clean technology. Read Full Post…
Bottom line: Feiyu’s weak IPO isn’t surprising and its shares will keep trading down, while Momo’s New York listing could get a slightly better reception but will open flat to up slightly in its trading debut this week.
Feiyu listing aims to raise up to $100 mln
The usual flurry of offshore Chinese IPOs has materialized as we head into the end of 2014, capping a banner year for such offerings. But the year-end rush has been surprisingly devoid of tech names, though we’ve just seen what could be one of the final such IPOs of the year with the Hong Kong debut late last week of mobile game developer Feiyu Technology. Feiyu’s weak debut comes as mobile social networking (SNS) firm Momo also gets set to make its New York trading debut this week, in what could well be the last 2 tech offerings in a banner year for the group. Read Full Post…
Bottom line: CGN’s shares are likely to rise 10-15 percent on their first trading day next week, while JD.com’s shares could rally over the next few days before resuming a longer downward trend towards their IPO price.
JD raises $620 mln in secondary offering
Just when the year-end rush of new share offerings appeared to be losing momentum with weak demand for property developer Dalian Wanda, the market is getting a lift with a stronger reception for 2 other share sales. The first of those has seen nuclear power plant builder CGN Power price shares for its IPO at the top of their range, making it the largest new Hong Kong listing in 2 years. The second deal saw strong demand for a secondary offering by e-commerce giant JD.com (Nasdaq: JD), helping it to raise another $619 million following its IPO back in May. Read Full Post…
Bottom line: Wanda chief Wang Jianlin could purchase a controlling stake in MGM as he looks to take over a Hollywood studio, while his Wanda Dalian property IPO will get a tepid reception but perform well over the longer term.
Wanda’s Wang Jianlin eyes Lions Gate, MGM
Property magnate Wang Jianlin is used to getting what he wants, but 2 new headlines indicate his Wanda Group may have to settle for compromise in a pair of its latest forays, one involving a Hong Kong IPO and the other involving his desire to purchase a major Hollywood studio. The former headline has Wang reportedly scaling back plans for a mega IPO in Hong Kong for Dalian Wanda, his group’s flagship property arm. The second and more intriguing news item has him seeking to buy a controlling stake in a major Hollywood studio, with Lions Gate (NYSE: LGF) and MGM mentioned as 2 possible candidates. Read Full Post…
Bottom line: Dwindling investor appetite will result in a weak debut for Momo’s upcoming IPO, which may also get negative publicity as it gets caught in a minor scandal in its home China market.
Momo pares back IPO target
Mobile social networking service (SNS) provider and IPO candidate Momo Inc has become a regular feature in the Chinese headlines these last few days, but for all the wrong reasons. The company was in the news late last week when it slashed the size of its planned New York listing, and is now back with a fresh set of headlines on a scandal involving crooked business dealings. This certainly isn’t the kind of publicity a company wants on the eve of its IPO, which was set to price and debut either this week or next. There’s really not much room for Momo to delay the plan without falling into the Christmas holiday lull, meaning its debut could fizzle due to the stream of bad news. Read Full Post…
A seasonal year-end rush of IPOs by Chinese firms moved into high gear late last week, when media reported that top movie chain operator Wanda Cinema Line and social networking up-and-comer Momo Inc had taken major new steps in their listing plans. The pair would join nuclear plant builder CGN Power, Beijing-based automaker BAIC and real estate developer Dalian Wanda, which were also in the headlines last week, in a year-end fund-raising frenzy that could raise more than $10 billion. Read Full Post…
Bottom line: Upcoming Hong Kong IPOs for nuclear energy firm CGN Power and real estate developer are likely to do well, while a third listing for car maker BAIC could get a more lukewarm reception.
Dalian Wanda seeks approval for $6 bln HK IPO
New York has posted a banner year for Chinese IPOs, culminating with the record-breaking $25 billion listing for Alibaba (NYSE: BABA) in September. But Hong Kong is showing it still has plenty to offer too, with a flurry of major new listings coming in the final month of 2015. At least 3 major new offerings are bubbling around the headlines as we head into December, led by one for China’s largest nuclear plant builder, CGN Power Co. Meantime, Beijing-based auto maker BAIC and property giant Dalian Wanda are also revving up for what could well be 2 of the biggest listings for the year. Read Full Post…
China’s entrepreneurial tech firms never miss a good business opportunity, and environmental plays are suddenly the flavor of the day with word of major new pollution-related plays by smartphone sensation Xiaomi and online video firm LeTV (Shenzhen: 300104). Xiaomi has announced it will enter the smart devices space with a new line of air purifiers aimed at consumers tired of breathing polluted Chinese air. Meantime, LeTV has announced its intent to get into the electric vehicle (EV) business, as China opens up that sector to encourage development of more clean technology. 
