Big stock moves for veteran online travel agent eLong (Nasdaq: LONG) and newly listed mobile game firm Ourgame (HKEx: 6899) are shining a spotlight on the need for consolidation in many of China’s online sectors, where these smaller players lack the resources to thrive over the longer term. Shares of eLong suddenly soared more than 20 percent in the latest session on trading volumes not seen for years, which will inevitably lead to speculation of a looming buyout offer. Meantime, Ourgame shares tanked 17 percent on their first trading day in Hong Kong, as investors yawned at the chance to buy into yet another mid-sized Chinese gaming firm. Read Full Post…
Tag Archives: Tuniu
Investors Favor Online Travel With Tujia Funding
Online travel is quickly taking on a new cult-like status among investors, with word of a major new funding for vacation rental site Tujia. This latest fund-raising frenzy in online travel looks very similar to what happened in group buying about 4 years ago, when investors pumped billions of dollars into a wide range of money-losing start-ups. Internet watchers will know that many of those companies later went bust, raising the prospect that a similar fate could be waiting for the online travel sector. Read Full Post…
Jumei Debut Shows Lingering Life For IPOs
Market watchers are hailing the modest success of the new listing by online cosmetics seller Jumei International (NYSE: JMEI), which managed a respectable pricing and trading debut in New York despite waning sentiment towards Chinese Internet IPOs. I would agree with that view somewhat, since the company’s shares could have easily fallen in their trading debut but instead ended up rising a solid 10 percent on their first trading day. But I’d also advise market watchers to check the bottom line, which saw Jumei slash the size of its original offering by nearly two-thirds due to weak demand. Read Full Post…
Hungry Ctrip Eyes Group Buying Sites
Leading online travel agent Ctrip (Nasdaq: CTRP) is generally regarded as one of China’s best run and most focused Internet companies, which is why new reports that it’s chasing a tie-up with 2 of the nation’s top group buying sites look a bit worrisome. The company is sitting on top of a huge cash pile, worth nearly $2 billion at the last check in March, and is looking increasingly desperate for places to spend the money. It has already been spurned by some of the travel sector’s most likely acquisition targets, which is probably why it’s now looking elsewhere for places to invest its treasure chest. Read Full Post…
IPOs: JD Sets Range, Tuniu Lumbers Up
Just when it looked like the New York market for Chinese IPOs was running out of steam, we’re seeing new positive signs with the modestly successful trading debut of online travel site Tuniu (Nasdaq: TOUR) and the setting of a relatively upbeat price range for JD.com, China’s second largest e-commerce firm. Both signals continue a current trend of softening sentiment in the market, as investors tire of giving billions of dollars in new money to Chinese Internet firms. But they also show there may still be some life left in the market, leading me to return to a prediction I made early this year that the current IPO window could last through the end of June. Read Full Post…
News Digest: May 10-12, 2014
The following press releases and media reports about Chinese companies were carried on May 10-12. To view a full article or story, click on the link next to the headline.
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- Alibaba Rival JD.com To Be Valued At Up To $24.6 Bln In IPO (English article)
- Toto Reaches Agreement With Striking Chinese Workers (English article)
- China Telecom (HKEx: 728) Launches Fund Sales (English article)
- BYD (HKEx: 1211) Receives Record Bus & Taxi Order (Businesswire)
- Tuniu (Nasdaq: TOUR) Rises 12 Pct In Trading Debut On Nasdaq (Chinese article)
- Latest calendar for Q1 earnings reports (Earnings calendar)
Ctrip Ties With Tongcheng, Eyes Tuniu
An ongoing consolidation in the crowded online travel space has taken a new twist, with word that industry leader Ctrip (Nasdaq: CTRP) has made a major investment in up-and-comer Tongcheng and is eying a similar tie-up with IPO candidate Tuniu. The latest news comes from one official announcement on Tongcheng, and another media report on Tuniu, showing just how active the online travel space has recently become due to the entry of several new players over the last few years. All of this comes just weeks after Ctrip was reportedly in talks to merge with Qunar (Nasdaq: QUNR), the sector’s second largest player, in a deal that would have created a sector leader with a market value of around $10 billion. Read Full Post…
Ctrip-Qunar: New Traveling Mates?
The news has been flying thick and fast these past 2 few for Ctrip (Nasdaq: CTRP), including the latest word that China’s oldest and largest online travel agent could be headed for a merger with fast-rising rival Qunar (Nasdaq: QUNR). I actually predicted this potential merger last fall in the run-up to Qunar’s IPO, even though nothing happened at that time. Now the latest reports are saying such a deal is in late-stage talks as Ctrip prepares to sell a controlling stake of itself to leading search engine Baidu (Nasdaq: BIDU), which also happens to be Qunar’s controlling stakeholder. Read Full Post…
IPOs: Legend Eyes HK, Xunlei New York
The recent window of positive sentiment towards Chinese tech firms continues to fuel a wave of offshore IPO plans, with video sharing site Xunlei and Lenovo (HKEx: 992) parent Legend Holdings the latest subjects of new listing rumors. All these reports come as a top New York Stock Exchange executive predicts 15-20 Chinese firms will list in New York this year. (English article) That forecast by David Ethridge, a senior vice president at NYSE Euronext, certainly looks quite bullish, especially compared with only 6 companies that listed in New York last year and just 2 in 2012. But it’s also worth noting the figure is a bit more conservative than another forecast earlier this month from an unnamed investment banking source for as many as 30 New York listings this year. (previous post) Read Full Post…
Tuniu Races To Internet Bull Market
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…
News Digest: January 23, 2014
The following press releases and media reports about Chinese companies were carried on January 23. To view a full article or story, click on the link next to the headline.
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- China Mobile (HKEx: 941) Lowers Prices For Home Broadband Users (Chinese article)
- Online Travel Agent Tuniu To Raise $100 Mln In New York IPO – Source (Chinese article)
- Fosun Group, Prudential Financial (NYSE: PRU) Expand Partnership In China (Businesswire)
- Nu Skin (NYSE: NUS) Issues Apology, Takes Corrective Steps In China (Chinese article)
- Wanda Hotels And Resorts Holds Its First Brand Ceremony (PRNewswire)
