I have to admit that I’m becoming just a little bit confused by all the user data coming from China’s top 3 microblog operators, which seems to paint a slightly different picture from the one that Sina (Nasdaq: SINA) would like everyone to believe about the dominance of its popular Sina Weibo service. My attention was first drawn to the subject by a new media report in which NetEase (Nasdaq: NTES) says its microblogging service now has more than 260 million registered users, up sharply from 180 million just 2 months earlier. (English article) That number seemed to be a big narrowing of the gap with Sina Weibo, which had 360 million registered users at the end of June.
Tag Archives: Sina
Short Seller War of Words Heats Up 做空机构舌战升温
It may be a holiday in China, but there’s been no break in an increasingly entertaining war of words between 2 prominent short sellers and the US-listed Chinese firms they have been targeting in credibility-related attacks for more than a year now. The latest chapter in this saga has seen educational services firm New Oriental (NYSE: EDU), the most recent company to come under attack, just release a report saying an investigation by independent auditors found no evidence of wrongdoing related to allegations raised by short seller Muddy Waters. (company announcement) But as it released its report, Muddy Waters itself fired back by attacking one of New Oriental’s independent auditors, who just happens to be China’s richest man and the founder of leading search engine Baidu (Nasdaq: BIDU), Robin Li.
7 Days to Privatize, Who’s Next? 7天连锁酒店股东团提出私有化要约
In a theme that is rapidly gaining momentum, yet another US-listed Chinese firm has announced a new privatization bid to capitalize on valuations that have been pushed to rock-bottom levels amid a broader investor confidence crisis. The newest management-led buyout offer from 7 Days Group (NYSE: SVN), the smallest of China’s 3 publicly listed budget hotel operators, follows a string of similar moves that have seen other US-listed Chinese companies, including Shanda Interactive and Focus Media (Nasdaq: FMCN), make similar moves. So perhaps the more interesting question is: who are the most likely companies to launch similar privatization bids, as investors can clearly make some quick money if they can answer this question correctly.
Ctrip Bonds: Outspending Private Rivals 携程债券：超出私募的竞争对手
As competition intensifies in nearly every major space on the Chinese Internet, companies are finding themselves increasingly in need of new money as their profits tumble and cash reserves dwindle. The options for new funding are particularly limited for younger private companies, whose main source of money is usually private equity and venture capital that is relatively limited. Older listed companies have more choices, since they can tap financial markets by issuing bonds or new shares to raise money. That distinction is seeing a small but growing number of older Chinese Internet firms raise money by issuing new debt to compete with their smaller but very aggressive rivals in the fight for market share. In the latest development on that front, leading online travel services provider Ctrip (Nasdaq: CTRP) has just announced plans to issue up to $140 million in convertible bonds . (company announcement)
Tencent Wechat Wows Mobile IM 腾讯微信主导移动即时通讯
The fight for dominance in of China’s mobile Internet is producing some interesting global shifts, with big names like Baidu (Nasdaq: BIDU) and Alibaba facing aggressive, younger competitors as they try to translate their dominance of the older desktop Internet to the mobile space that will become a key growth driver in the next decade. But one company that seems on track to maintain its dominance is Tecent (HKEx: 700), China’s largest Internet company by market value, which rose to prominence a decade ago with its highly popular QQ instant messaging product. Now it seems that Tencent’s mobile instant messaging product Wechat, better known by its Chinese name of weixin, is facing little or no opposition in its rapid rise to become China’s dominant mobile IM product. (previous post)
Tencent Bonds: Activision in View? 腾讯债券：目标是动视？
Update: A short time after I issued this article, Tencent released its formal plan to issue $600 million worth of bonds. The notes will mature in 2018 and carry an interest rate of 3.375 percent (company announcement)
Internet leader Tencent (HKEx: 700) is taking a dip into the corporate bond market, an interesting move that should not only test investor aippetite for a new kind of financial product from China’s Internet space, but may also hint at the company’s future M&A plans as it explores a potential bid for Activision Blizzard (Nasdaq: ATVI). Longtime China Internet watchers may recall that it’s been quite a long time since any companies from this space have issued corporate debt. Veteran players Sina (Nasdaq: SINA), Sohu (Nasdaq: SOHU) and NetEase (Nasdaq: NTES) all issued bonds shortly after becoming profitable about a decade ago, but none really needed the money and largely retired the fund-raising method after that.
News Digest: August 16, 2012 报摘： 2012年8月16日
The following press releases and media reports about Chinese companies were carried on August 16. To view a full article or story, click on the link next to the headline.
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- Haier Terminates Partnership with 360Buy/Jingdong Mall (English article)
- Tencent (HKEx: 700) Announces Q2, H1 Results (HKEx announcement)
- Sina (Nasdaq: SINA) Reports Q2 Financial Results (PRNewswire)
- Suntech (NYSE: STP) CEO Steps Down, CFO to Take Top Job (English article)
- NetEase (Nasdaq: NTES) Reports Q2 Unaudited Financial Results (PRNewswire)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Focus Media Privatizes, Sale in Sight? 分众私有化，出售在即？
The headlines have been buzzing this week with news of a management-led privatization offer for leading outdoor advertising firm Focus Media (Nasdaq: FMCN), marking the latest in a recent string of developments that I suspect will end with a sale of this colorful but faded company. The buyout is the latest in a series of similar plans by US-listed Chinese firms in recent months, following a series of accounting scandals that have caused shares of the entire sector to tumble.
SNS Real Names: Crackdown Ahead? 社交媒体未“实名” 或面临更严厉监管
I read with amusement this morning a report stating that Baihe, one of China’s smaller social networking sites, is still letting people register under any name they choose, even though Beijing rolled out a controversial “real name registration” system months ago designed to curtail rumor mongering. The report, which looks credible, reflects the very real fact that such real name registration has been difficult if not impossible for not only Baihe but also much bigger names like Sina (Nasdaq: SINA) and Tencent (HKEx: 700) posing a very real risk for these Internet titans if and when Beijing decides to enforce the real name rule, or even worse, to punish companies that have failed to comply.
Mobile Internet Passes the Desktop 手机成中国网民最大上网终端
A government agency has just released data showing that mobile Internet users in China have passed traditional desktop users for the first time, posing an interesting challenge for all players that have typically designed their products for people who surf the web from fixed-line PCs at home and in Internet cafes. This move reminds me of a similar shift to mobile from desktop computing now taking place worldwide that is dealing a blow to former PC giants Intel (Nasdaq: INTC) and Microsoft (Nasdaq: MSFT), which have long dominated the desktop computing arena but are having trouble in the mobile space.
Portals Shun Olympics, Baidu’s New JV 门户网站避开奥运，百度新设合资企业
Second-quarter earnings season and the London Olympics won’t begin until next week, but we’re already seeing signs that an ad slowdown is hitting profits at many Chinese Internet companies as they get set to report their latest results. Specifically, media are reporting China’s top 4 portals have decided to skip expensive rights for live coverage of Olympic events, and instead are opting to provide less pricey video-on-demand (VOD) rights that allow Internet users to watch recordings of their favorite sports after the events. (English article)
