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Oct. 7, 2015, 10:08 AM
- Baidu (BIDU -1.2%) is off moderately in early trading after top Chinese local deals site Meituan.com (backed by Alibaba) announced a merger with #2 deals site and leading restaurant review platform Dianping.com (backed by Tencent), with the goal of creating a giant in the online-to-offline (O2O) services space.
- Meituan/Dianping sport a combined $15B valuation. U.S. local deals leader Groupon (GRPN +2.7%), which sports only a $2.4B market cap, is trading higher. The Nasdaq is up 0.7%.
- Meituan and Dianping both compete against Baidu's Nuomi deals platform (the market's #3 player), which it bought from Renren last year. Baidu has committed RMB20B ($3.2B) to growing its O2O offerings, with Nuomi expected to receive a large chunk of the investment.
- CEO Robin Li has suggested Baidu is investing heavily in O2O to head off the threat of mobile users bypassing its search platform and directly launching 3rd-party mobile apps, and that its spending includes building a large salesforce to win over small businesses. Meanwhile, in a recent WSJ column comparing Baidu/Nuomi and Meituan, Baidu exec Zeng Liang stated Baidu's spending on subsidies for O2O transactions "is not small," and that the company could expand its O2O offerings to cover financial and logistics services.
- Notable Calls reports hearing a tier-1 desk call the Meituan/Dianping deal a "clear negative" for Baidu. It also hears a boutique shop stating a meeting with Baidu suggests the company's Q3 op. margin will be closer to 10% rather than an expected 15%.
Oct. 2, 2015, 12:13 PM
- Hammered over the last several months as macro concerns and plunging local markets took a toll, U.S.-traded Chinese tech stocks are up strongly (CQQQ +3.2%) today even as the Nasdaq and S&P post modest declines.
- Web/mobile stocks posting big gains include giants Alibaba (BABA +5.3%) and Baidu (BIDU +4.5%), with the former naturally taking Yahoo (YHOO +4%) higher with it. Yahoo rose earlier this week after stating it's still pushing ahead with a spinoff of its 384M-share Alibaba stake.
- Other gainers include Vipshop (VIPS +6.6%), SouFun (SFUN +6.2%), Qihoo (QIHU +6.7%), Youku (YOKU +5.8%), Jumei (JMEI +8%), Bitauto (BITA +5.3%), Weibo (WB +5.9%), Jumei (JMEI +8%), and Cheetah Mobile (CMCM +6.6%). Online travel leaders Ctrip and Qunar are also up big, possibly aided by new efforts from Beijing to boost Macau tourism.
- Solar winners include Yingli (YGE +4.1%), ReneSola (SOL +5.6%), and Daqo (DQ +9.4%).
- ETFs: KWEB, QQQC, EMQQ
Sep. 24, 2015, 3:54 AM
- More partnerships between Chinese and U.S. technology firms are being announced during Chinese President Xi Jinping's visit to the United States this week.
- Cisco (NASDAQ:CSCO) is forming a joint-venture with server maker Inspur to sell networking and cloud computing products in China, where the company faces political pressure and declining sales.
- Meanwhile, Microsoft (NASDAQ:MSFT) is partnering with Baidu (NASDAQ:BIDU) and Tsinghua Unigroup to sell cloud services to Chinese state-owned enterprises. Microsoft also struck a deal with China Electronics Technology Group to explore ways to deploy a "localized" version of Windows 10.
Sep. 16, 2015, 2:06 PM
- The beaten-down Shanghai and Shenzhen exchanges respectively rose 4.9% and 6.5% overnight thanks to late-session surges - many suspect fresh government intervention was responsible. U.S. traded Chinese Web/mobile names have risen sharply (CQQQ +4.4%) on a day the Nasdaq is up just 0.3%.
- Big gainers include search giant Baidu (BIDU +5.4%), rival Qihoo (QIHU +6.5%), auto sites Bitauto (BITA +6.4%) and Autohome (ATHM +5.3%), travel sites Ctrip (CTRP +7.4%) and Qunar (QUNR +6.5%), online real estate plays SouFun (SFUN +6.1%) and Leju (LEJU +4.5%), and online retailers JD.com (JD +4.8%) and Vipshop (VIPS +6.3%). Priceline announced yesterday afternoon it had hiked its Ctrip stake to 11.6%.
- Other winners include ChinaCache (CCIH +8.1%), Cheetah Mobile (CMCM +6.2%), Sina (SINA +6.7%), Weibo (WB +4.3%), Youku (YOKU +5.7%), and YY (YY +4.1%).
- ETFs: KWEB, QQQC, EMQQ
Sep. 10, 2015, 2:41 PM
- As part of an expanded deal between the companies, Qunar (QUNR -1.2%) users "will be able to access Baidu's (BIDU -1.9%) extensive online to offline (O2O) supply chain in restaurant booking and food delivery, while Baidu will gain broader access to Qunar's travel products, expanding beyond hotels to park and attraction tickets, with more categories in the pipeline.
- Three Baidu execs - Liang Zeng, Yuming He, and Fang Wei - are joining Qunar's board. Meanwhile, Baidu VP Hesong Tang is leaving the board. The contracts of Qunar CEO C.C. Zhuang and CFO Yilu Zhao have been extended by 4 years.
- Baidu bought a majority stake in Qunar, China's #2 online travel firm, in 2011. Today's news comes 3 months after Qunar terminated its Zhixin cooperation agreement with Baidu, through which the former ran an online travel marketplace for which Baidu drove traffic (in exchange for a large revenue cut), and struck a deal with Baidu to integrate hotel information into Baidu Maps.
Sep. 8, 2015, 5:08 AM
- Uber has raised $1.2B so far for its China unit, including from strategic partner Baidu (NASDAQ:BIDU), as it looks to enter 100 more cities in the country over the next year.
- The controversial taxi-hailing service operates in 20 cities, with its market share rising to 30-35% from 1% at the start of 2015. Uber handles 1M rides a day and has created 100,000 jobs.
- Chinese rival Didi Kuaidi is reportedly close to raising $1B after attracting $2B in July.
- The plan for both companies seems to be to burn large quantities of cash in a bid to gain market share.
Sep. 4, 2015, 1:19 PM
- The Information reports Google (GOOG -1.3%, GOOGL -1.4%) "hopes to get Chinese government approval to distribute a special China version" of Google Play as soon as this fall. The Chinese version of the App Store will comply with Beijing's censorship requirements, and store data locally.
- The site previously reported of plans for a Chinese Play launch last November. Google shut down its Chinese search engine (Google.cn) in 2010 rather than comply with censorship requirements. However, the company still does plenty of business with Chinese advertisers looking to reach overseas buyers, and hosts many apps developed by Chinese firms within international Play stores.
- While Android accounts for well over half of Chinese smartphone sales - Kantar Worldpanel estimates a 79.1% unit share in "Urban China" for the 3 months ending July - Chinese Android users generally rely on app stores from local tech giants Baidu (NASDAQ:BIDU), Qihoo (NYSE:QIHU), and Tencent (OTCPK:TCEHY). Meanwhile, the iPhone maintains a large share among higher-income Chinese users more likely to pay for apps and/or in-app purchases.
- In other Google news, Google is expanding its self-driving car tests from the company's home base of Mountain View to Austin, TX. The company has previously suggested it wants to bring a self-driving car to market by 2020, and that it wants to act as a hardware/software supplier for 3rd-party automakers.
- Google claims its cars have been involved in just 16 minor accidents in over 2M miles of driving, and that none of the accidents were its fault. However, researchers think some of the accidents are a product of Google's cars being too safe, perfectly following the letter of the law in a world where many drivers don't.
Sep. 1, 2015, 5:39 PM
Aug. 31, 2015, 2:11 PM
- U.S.-traded Chinese tech stocks are seeing fresh selling pressure (CQQQ -2.9%) after Beijing announced it's halting major stock purchases to prop up local markets. Authorities also arrested nearly 200 people for actions deemed to have a destabilizing effect on markets.
- Decliners include giants Alibaba (BABA -3.9%) and Baidu (BIDU -3.1%), as well as Ctrip (CTRP -4.4%), Qunar (QUNR -4.8%), Vipshop (VIPS -4.7%), JD.com (JD -3.2%), Jumei (JMEI -4.2%), NetEase (NTES -5.8%), Momo (MOMO -4.4%), and 500.com (WBAI -4%). The Nasdaq is down 0.8%.
- Separately, the WSJ has taken a look at Alibaba and JD's efforts to grow sales to rural Chinese shoppers, as urban user growth slows. The number of rural Chinese shopping online rose 41% last year to 77M (compares with a rural Chinese population of 600M), outpacing the 17% growth seen in urban shoppers. Chinese rural per capita income was still less than 1/3 of urban levels as of 2013.
- ETFs: QQQC, KWEB, EMQQ
Aug. 24, 2015, 9:22 AM
- The Shanghai and Shenzhen exchanges nosedived again overnight as fears of an economic slowdown triggered panic selling, and U.S. futures are off sharply premarket. As one would expect, many U.S.-traded Chinese names are seeing big losses.
- Baidu (NASDAQ:BIDU) -9.8% premarket. SINA -9.7%. Weibo (NASDAQ:WB) -10.5%. Ctrip (NASDAQ:CTRP) -9.4%. Qunar (NASDAQ:QUNR) -15%. SouFun (NYSE:SFUN) -15.4%. NQ Mobile -10.1%. Qihoo (NYSE:QIHU) -14.7%. YY -9.3%. Bitauto (NYSE:BITA) -8.8%. JD.com (NASDAQ:JD) -9.6%. Vipshop (NYSE:VIPS) -15.9%.
- Alibaba (previous) is down 9.8% to $61.48, making new post-IPO lows along the way. Tencent (OTCPK:TCEHY) fell a relatively modest 5% overnight in Hong Kong.
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Aug. 11, 2015, 12:27 PM
- In its latest move to boost slowing economic growth, the PBOC has devalued the yuan, while insisting it's a one-time move. The yuan/dollar ratio is currently at 6.33, down from 6.21 yesterday.
- A number of Chinese Internet stocks that record the lion's share of their revenue in yuan are seeing their U.S. shares (denominated in dollars, of course) underperform (CQQQ -3.4%) amid a 1.3% drop for the Nasdaq. Major decliners include Baidu (BIDU -3.8%), Qunar (QUNR -10.2%), Ctrip (CTRP -5.9%), JD.com (JD -5.8%), Sina (SINA -5%), NetEase (NTES -3.9%), Jumei (JMEI -10.7%), Youku (YOKU -6.2%), Bitauto (BITA -6.4%), Leju (LEJU -6%), Changyou (CYOU -7.7%), and Autohome (ATHM -5.3%).
- Among Chinese solar names, Daqo (DQ -14.4%) and JinkoSolar (JKS -3.3%) are seeing big losses.
- JD.com is adding to the Monday losses seen following a Morgan Stanley downgrade and news Alibaba has formed an alliance with major electronics retailer Suning. Both JD and Jumei could be affected by fellow online retailer Vipshop (down 11.1%), which yesterday afternoon provided light Q3 sales guidance to go with a Q2 EPS beat.
- ETFs: KWEB, QQQC, EMQQ
- Yesterday: Chinese Internet stocks rally after Shanghai/Shenzhen post big gains
Aug. 5, 2015, 3:54 AM
- China is setting up cybersecurity police units at major Internet companies, a move aimed at strengthening the government's grip on the world's largest population of Web users.
- The officers will be added to help boost defenses against crimes such as fraud and "spreading of rumors."
- Beijing is also discussing a separate plan to build a national cyber safety net, enabling national and local governments to cut Internet access when needed.
- Related tickers: BABA, BIDU, OTCPK:TCEHY
Jul. 30, 2015, 3:13 AM
- Baidu (NASDAQ:BIDU) has announced a new $1B share repurchase program, after its stock price got hammered by investors following weak earnings results on Monday.
- The buyback will take place over the next 12 months and will be funded from the company's existing cash balance.
- On the decline: BIDU shares have now lost almost a third of their value since their all-time high last November, and are down 19.1% over the past week.
Jul. 28, 2015, 12:40 PM
Jul. 28, 2015, 9:17 AM
Jul. 27, 2015, 5:37 PM
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