Nov. 13, 2015, 2:02 AM
- MSCI has outlined which overseas-listed Chinese shares will be added to its Emerging Markets Index (ETF: EEM) from Dec. 1, a move that is likely to draw investments of $70B.
- ADRs to be included: 58.com (NYSE:WUBA), Alibaba (NYSE:BABA), Baidu (NASDAQ:BIDU), Ctrip.com (NASDAQ:CTRP), JD.com (NASDAQ:JD), NetEase (NASDAQ:NTES), New Oriental Education (NYSE:EDU), Qihoo 360 (NYSE:QIHU), Qunar (NASDAQ:QUNR), SouFun (NYSE:SFUN), TAL Education (NYSE:XRS), VipShop (NYSE:VIPS), Youku Tudou (NYSE:YOKU) and YY.
- Stocks listed in mainland China, known as A-shares, are still under review for inclusion in the index.
- Previously: MSCI paves road for A-share inclusion through ADRs (Nov. 02 2015)
Oct. 29, 2015, 7:26 PM
- Though it beat Q3 EPS estimates and posted in-line revenue, Baidu (NASDAQ:BIDU) is guiding for Q4 revenue of RMB18.2B-RMB18.75B (+29.5%-33.4% Y/Y and equal to $2.864B-$2.95B), below an RMB18.93B consensus. However, expectations were low amid Chinese macro concerns.
- Metrics: Online ad customers rose 5.6% Q/Q and 20.7% Y/Y to 623K. Revenue per online ad customer rose 3.3% Q/Q and 9.3% Y/Y to $4,453. GMV for transaction services (cover Qunar's travel services, Nuomi's deals, and Baidu Takeout Delivery) rose 119% Y/Y to $9.5B. Baidu Wallet accounts rose 520% to 45M.
- Mobile: Mobile was 54% of revenue, up from 50% in Q3 and Q2. Mobile search traffic was nearly 2/3 of total search traffic. Mobile search MAUs rose 26% Y/Y to 643M; mobile maps MAUs rose 34% to 326M.
- Financials: Lifting EPS: $1B was spent to buy back 6M shares. Traffic acquisition costs rose to 13.1% of revenue from 12.9% in Q2 and 12.7% a year ago. Content costs were 5% of revenue vs. 3.7% in Q2 and 5.1% a year ago. SG&A spend rose 111.2% Y/Y to $897.1M thanks to high "promotional spending" for transaction services. R&D spend rose 46.9% to $423.2M.
- BIDU +7.4% after hours to $181.50, reaching its highest levels since July.
- Q3 results, PR
- Update: Baidu's Q4 revenue guidance doesn't include Qunar's results beyond Oct. 26, thanks to the recent Ctrip deal. The Q4 consensus might not fully account for the change. (hat tip: SA commenter David RG)
Oct. 29, 2015, 6:42 PM
- Baidu (NASDAQ:BIDU): Q3 EPS of RMB9.07 beats by RMB1.90.
- Revenue of RMB18.38B (+35.9% Y/Y) in-line.
- Shares +5% AH.
Oct. 28, 2015, 5:35 PM
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Oct. 26, 2015, 9:15 AM
Oct. 26, 2015, 7:41 AM
- Ctrip (NASDAQ:CTRP) announces it completed a share exchange transaction with Baidu (NASDAQ:BIDU) involving travel site player Qunar Cayman Islands.
- Baidu will receive 11,488,381 shares of Ctrip in exchange for 178.7M class A ordinary shares and 11.45M class B shares of Qunar Cayman Islands (NASDAQ:QUNR).
- After the transaction closes, Baidu will own shares representing 25% of Ctrip's voting interests.
- Baidu and Ctrip also say they agreed to work together on more products and services.
- CTRP +20.4% premarket to $89.50. Baidu +8.47% to $170.95. QUNR +33.1% to $52.60.
Oct. 9, 2015, 12:50 PM
- Lions Gate Entertainment (LGF -0.3%) has signed a deal to distribute key hit films on streaming platform iQiyi, China's largest.
- The deal covers both subscription and transactional video on demand for a number of higher-profile films from Lions Gate and third parties, including The Hunger Games: Mockingjay Part 2; Allegiant, the next film in the Divergent franchise; Now You See Me 2; and action film Deepwater Horizon.
- IQiyi, controlled by Baidu (BIDU +1.6%), runs video platforms that have more than 500M unique users.
- Meanwhile, Lions Gate also expanded its distribution deal with Metropolitan Film Export in France. That pact now covers films that commence principal photography after Jan. 1, 2016.
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
Baidu, Inc. engages in the provision of internet search solutions and online marketing solutions. The company also operates an e-commerce platform with an online payment tool, develops and markets web application software, and provides human resource related services. Its products include search... More
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