In a sign of just how overheated M&A in China’s tech sector has become, 2 major purchases by e-commerce giant Alibaba (NYSE: BABA) and online travel leader Ctrip (Nasdaq: CTRP) are receiving scant attention from investors, even though they are worth nearly $1 billion combined. Instead, the big news grabber is another headline involving Alibaba, with word that the world’s second largest Internet firm has just become one of a handful of private Chinese companies to win new private sector banking licenses being awarded by Beijing. That development will see Alibaba and several partners open an Internet-based bank that will cater to smaller savers and borrowers, an area often neglected by the current field of big state-run lenders. Read Full Post…
A new management shakeup in the top ranks of eLong (Nasdaq: LONG) didn’t excite investors too much, but hints that something is happening behind the scenes at this online travel laggard controlled by US giant Expedia (Nasdaq: EXPE). The shakeup has seen eLong’s CFO and COO both resign, though the company’s CEO is staying in his current position, at least for now. Rumors circulated earlier this year that a buyout could be coming for eLong from sector leader Ctrip (Nasdaq: CTRP), though such a deal never came. Read Full Post…
What nearly became a blockbuster marriage between China’s 2 leading online travel sites has instead ended in divorce, with word that industry leader Ctrip (Nasdaq: CTRP) has formally yanked its hotel listings from the site of the second largest player Qunar (Nasdaq: QUNR). My use of the divorce metaphor here isn’t completely appropriate, since the 2 companies came close but never formally consummated a marriage. Still, the final split in this tie-up is probably the best ending for everyone, since it would have been a rocky road even if the 2 companies had agreed to merge their operations. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 11. To view a full article or story, click on the link next to the headline.
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3 Domestic Cement Firms Probed By NDRC For Antitrust Violations (Chinese article)
Ctrip (Nasdaq: CTRP) Removes Hotel Products From Qunar (Nasdaq: QUNR) (English article)
Xiaomi Invests In P2P Lending Platform Jimu Box (Chinese article)
Apple’s (Nasdaq: AAPL) iPhone 6 To Go On Sale In China On September 26 (Chinese article)
Phoenix New Media (NYSE: FENG) Makes Strategic Investment In News Feed App Yidian (PRNewswire)
China’s broader domestic travel market may be quickly getting saturated, but that hasn’t stopped leading online travel agent Ctrip (Nasdaq: CTRP) and global hotel giant Starwood (NYSE: HOT) from seeking out new investment opportunities in more niche-focused areas. News involving the former will see Ctrip purchase a cruise liner from global giant Royal Caribbean (NYSE: RCL) to capitalize on the rising popularity for ocean cruises among Chinese vacationers. The latter news bit will see Starwood, owner of the Westin and Sheraton hotel brands, open an ambitious 4 new resorts on the tourist-friendly Hainan island over the next 5 years. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 3. To view a full article or story, click on the link next to the headline.
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US Business Lobby Says Concerned China Antitrust Probes Unfair (English article)
Ctrip (Nasdaq: CTRP) To Buy Celebrity Century Shop From Royal Caribbean (NYSE: RCL) (PRNewswire)
Trina Solar (NYSE: TSL) Acquires Majority Of Yunnan Metallurgical New Energy (PRNewswire)
KKR Sells Final Stake In China Modern Dairy (HKEx: 1117) For $80 Mln: Source (English article)
Tencent (HKEx: 700) Invests $70 Mln In Online Medical Portal DXY (English article)
A look at the latest earnings from online travel agent Qunar (Nasdaq: QUNR) and online classified ad site 58.com (NYSE: WUBA) made me feel like I was living in a parallel universe where everything was the opposite of what it should be. Qunar, China’s second largest online travel agent backed by leading search engine Baidu (Nasdaq: BIDU), saw its loss soar 10-fold as its costs grew far faster than revenue. And yet investors welcomed the results, bidding up the company’s stock by 6 percent. Conversely, the profitable 58.com saw its earnings more than double, and yet it’s stock tanked nearly 8 percent on the report. Read Full Post…
I’m normally quite upbeat on leading online travel site Ctrip (Nasdaq: CTRP), but I really don’t understand the logic behind its new decision to sell 10 percent of itself to US peer Priceline (Nasdaq: PCLN). On the surface, the deal looks reasonable enough, pairing Ctrip’s strength in China with Priceline’s in the US and other western markets. But anyone familiar with Ctrip knows the company is fiercely independent and doesn’t work very well with other strategic partners. What’s more, this deal will put even more money into Ctrip’s already bulging cash pot, giving it more funds than it needs.
The following press releases and media reports about Chinese companies were carried on August 8. To view a full article or story, click on the link next to the headline.
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China Imposes New Restrictions On Instant Messaging Tools: Xinhua (English article)
Priceline (Nasdaq: PCLN) To Invest $500 Mln In China’s Ctrip (Nasdaq: CTRP) (English article)
Huawei To Exit Ultra-Low End Smartphones, Cut 80 Pct Of Models By Year End (Chinese article)
Anti-Trust Probes Expand To Include 12 Japanese Automotive Firms (Chinese article)
The following press releases and media reports about Chinese companies were carried on July 16. To view a full article or story, click on the link next to the headline.
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Alibaba Said Likely To Sell More IPO Stock As Yahoo (Nasdaq: YHOO) Retreats (English article)
China Construction Bank (HKEx: 939) Registers New Zealand Subsidiary (English article)
China Awards 5th Batch Of E-Payment Licenses, Including First For Foreign Firm (Chinese article)
BYD (HKEx: 1211) Announces First Factory In Brazil (Businesswire)
Ctrip (Nasdaq: CTRP) Criticized For High-Fee Refund Policy (Chinese article)
Separate reports about a new IPO by one company and potential exit from the Nasdaq by another are reflecting the mixed feelings that Chinese firms have for New York, where public listings can bring both prestige and also headaches. In the new listing category, media are reporting that yet another mobile game developer called iDreamSky has just made its first public filing for a New York IPO to raise up to $110 million. Meantime, other media are reporting that veteran online travel service eLong (Nasdaq: LONG) could be gearing up for a buy-out by much larger rival Ctrip (Nasdaq: CTRP). Read Full Post…
