The following press releases and news reports about China companies were carried on July 8. To view a full article or story, click on the link next to the headline.
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McDonald’s (NYSE: MCD) Said to Narrow Bids for $2 Bln China Rights (English article)
Huawei files with Second China Court in Samsung (Seoul: 005930) Patent Suit (English article)
Qihoo 360 (NYSE: QIHU) Gets $3 Bln Loan to Support Privatization (Chinese article)
HNA, Li Ka-shing Firm Short-Listed for CIT Plane Leasing Unit Sale: Sources (English article)
Bottom line: Lenovo’s investment in the smart car business looks like a necessary step for an important new growth area, but its choice of LeEco as partner looks more dubious.
Lenovo invests in LeEco’s car business
I’ve been quite bearish on stumbling PC giant Lenovo (HKEx: 992) these days, but at least I have to commend the company for trying something new to jump-start its fading fortunes. That’s my initial assessment, on reading reports that Lenovo has invested in the smart car business of online video superstar LeEco (Shenzhen: 300104), formerly known as LeTV. But that said, even if the reports are true, Lenovo seems to be coming to the smart car story slightly late, and I also have serious doubts about the suitability of LeEco as its choice of partner. Read Full Post…
The following press releases and news reports about China companies were carried on June 22. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) Buys ‘Clash of Clans’ Maker Supercell for $8.6 Bln (English article)
Lenovo (HKEx: 992) Invests in LeEco (Shenzhen: 300104) Super Car Business – Report (Chinese article)
Tesla (Nasdaq: TSLA) Eyes Shanghai as Front-Runner for China Production (English article)
China Will Allow Foreign Firms to Issue Shares on Mainland: Central Bank (English article)
CDB Leasing Attracts Three Gorges, China Re to $978 Mln IPO (English article)
Bottom line: Reluctance to transfer its technology killed CRI’s breakthrough deal to build the first US high-speed rail line, showing that emerging Chinese tech leaders must be more open to such transfers if they hope to succeed globally.
CRI’s high-speed train to US derails
The story that has seen China’s rapid modernization using western technology took an unusual twist last week, when a US firm aiming to build America’s first high-speed rail line abruptly canceled its tie-up with a Chinese partner over technology transfer issues. The US builder of the line connecting Los Angeles and Las Vegas was quite direct, blaming its decision on Washington’s condition requiring that rail cars for the project be locally manufactured. Read Full Post…
Bottom line: Micromax’s plan to sell smartphones in China is likely to sputter due to intense competition, while Huawei stands a 50-60 percent chance of becoming one of the world’s top 2 smartphone brands by 2020.
India’s Micromax eyes China smartphone market
It seems the smartphone road connecting China and India isn’t just one-way, with word that leading Indian brand Micromax is planning to enter the intensely cut-throat Chinese market. Meantime, Chinese leader Huawei is looking beyond its home market and to the rest of the globe, with its brash smartphone chief declaring his target of passing Apple(Nasdaq: AAPL) and Samsung (Seoul: 005930) to take the world’s smartphone crown within 5 years. Read Full Post…
Bottom line: Midea’s plan to buy 30 percent of German robotics maker Kuka is likely to collapse due to EU resistance, reflecting growing wariness towards China’s global buying spree of western technology.
EU official sounds alarm at Midea’s Kuka buy
Alarmism at China’s growing string of global M&A is spreading from the US to Europe, with growing signs of resistance to the recently announced purchase by Chinese company of a major stake in a leading German robotics firm. Two separate new headlines point to the nascent resistance against the landmark deal announced 2 weeks ago, which would see Chinese home appliance maker Midea (Shenzhen: 000333) acquire 30 percent of Germany’s Kuka (Frankfurt: KU2G) for more than $1 billion. (previous post) According to the latest reports, a top European Union (EU) industry official and one of Kuka’s largest shareholders are separately expressing reservations about the deal, in what almost looks like a coordinated effort to show the uneasiness some Europeans are feeling. Read Full Post…
Bottom line: New sales of Alibaba and Lenovo shares by big stakeholders partly reflect disappointment in each stock’s performance by the seller, as both companies face issues that could stunt their medium-term growth.
Big stakeholders sell Alibaba, Lenovo shares
The folks at e-commerce giant Alibaba (NYSE: BABA) and PC leader Lenovo (HKEx: 992) are licking their wounds today, after each was dumped by a major major shareholder. In the first case longtime backer SoftBank has just sold off a big chunk of its Alibaba holdings, raising a hefty $7.9 billion in the process. The second deal has Internet giant Google (Nasdaq: GOOG) looking to sell about $200 million worth of Lenovo stock. Alibaba and SoftBank are trying to put a positive spin on their development, but the bottom line is that both Alibaba and Lenovo stock have become disappointments recently for all investors. Read Full Post…
The following press releases and news reports about China companies were carried on June 2. To view a full article or story, click on the link next to the headline.
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Japan’s SoftBank Plans to Sell $7.9 Bln in Alibaba (NYSE: BABA) Stock to Cut Debt (English article)
Microsoft (Nasdaq: MSFT) Sells Patents to Xiaomi, Builds ‘Long-Term Partnership’ (English article)
Google (Nasdaq: GOOG) Seeking Up To $221 Mln by Selling Lenovo (HKEx: 992) Stock (English article)
Jaunt, SMG and CMC Launch Virtual Reality Venture Jaunt China (Businesswire)
Michael Kors Acquires Greater China Licensee for $500 Mln (Businesswire)
Bottom line: Lenovo’s smartphone business could ultimately get spun off and separately listed in China, as its continued weak performance could force out CEO Yang Yuanqing later this year.
Lenovo posts first annual loss in 6 years
There’s really not much positive to say about the latest earnings report from struggling PC and smartphone maker Lenovo (HKEx: 992), which has just posted its first annual loss in 6 years. Perhaps we could find an upbeat note in word that the company is on track to achieve $1.35 billion in annual cost savings, though even that’s related to widespread layoffs and other cuts related to its faltering businesses. One might also find rays of hope in Lenovo’s admission that its earlier purchase of Motorola has largely failed, or that it might consider a re-listing in China. Read Full Post…
The following press releases and news reports about China companies were carried on May 27. To view a full article or story, click on the link next to the headline.
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The following press releases and news reports about China companies were carried on May 26. To view a full article or story, click on the link next to the headline.
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