Mon, Jul. 27, 9:29 AM
- After bouncing in recent weeks with the help of massive government support, Chinese markets nosedived once again overnight amid a backdrop of weak manufacturing data. Shanghai fell 8.5%, Shenzhen fell 7%, and the ChiNext Index fell 7.4%.
- Not surprisingly, many U.S.-traded Chinese tech names are off sharply in premarket trading. YY -4.2%. Qihoo (NYSE:QIHU) -5.5%. JD.com (NASDAQ:JD) -5.4%. SOHU -6%. iDreamSky (NASDAQ:DSKY) -9.6%. SouFun (NYSE:SFUN) -8%. SINA -5.5%. Weibo (NASDAQ:WB) -7.8%. Vipshop (NYSE:VIPS) -4.8%. Youku (NYSE:YOKU) -6.2%. Qunar (NASDAQ:QUNR) -6.2%. Dangdang (NYSE:DANG) -5.4%. 58.com (NYSE:WUBA) -4.7%. 500.com (NYSE:WBAI) -7.2%. Jumei (NYSE:JMEI) -5.7%. NQ Mobile (NYSE:NQ) -6%. Bitauto (NYSE:BITA) -6.3%. Autohome (NYSE:ATHM) -4.8%. Cheetah Mobile (NYSE:CMCM) -10.1%.
- Sohu and Changyou reported this morning. Baidu reports after the close.
- ETFs: CQQQ, QQQC, KWEB, EMQQ
Mon, Jul. 27, 9:14 AM
Wed, Jul. 15, 9:46 AM
- "An investment of $456m by the CEO (increasing his holding from 2.5% to 16%) is a major statement of intent and commitment but does not imply further upside," SINA)+to+Hold+on+Valuation/10724236.html" target="_blank">writes Deutsche's Vivian Hao. "After a relative gain of 45% against Nasdaq (+1%) since 2Q15, we downgrade the shares to Hold due to little visibility on the legacy portal business transition."
- Hao, who has nonetheless hiked her target by $3 to $50, also cautions against expecting SINA to see a full going-private similar to the kind witnessed by many U.S.-traded Chinese firms, given "legal and domestic market hurdles."
- Shares +18% YTD.
Thu, Jul. 9, 11:25 AM
- With local regulators continuing to scramble to halt plunging equity prices - among other things, investors with 5%+ stakes have been barred from selling shares for 6 months - Chinese markets reversed course last night. Shanghai rose 5.8%, Shenzhen rose 3.8%, and Hong Kong rose 4.5%. The Nasdaq is currently up 1.2%.
- Not surprisingly, U.S.-traded Chinese tech firms are flying higher. Big gainers include Sina (SINA +13.6%), Sohu (SOHU +11.1%), JD.com (JD +8.1%), Vipshop (VIPS +8.3%), Qunar (QUNR +9%), ChinaCache (CCIH +14.1%), Renren (RENN +9.5%), Wowo (WOWO +11.9%), Leju (LEJU +9.1%), China Mobile Games (CMGE +8.3%), Xunlei (XNET +9.7%), Sky-mobi (MOBI +9%), and eLong (LONG +18.1%).
- Also up strongly (previously covered): Qihoo, 21Vianet, E-House, Youku, Baozun, NQ Mobile, Weibo, Cheetah Mobile, Jumei, and Momo. In addition, YY and Dangdang are rallying after becoming the latest Chinese companies to receive going-private offers.
- The Guggenheim China Tech ETF (NYSEARCA:CQQQ) is now up 19% from a Wednesday low of $30.09; it's still down 22% from a May peak of $45.74.
- ETFs: KWEB, QQQC, EMQQ
- Two days ago: Chinese tech stocks crater; many names down over 10%
Wed, Jul. 8, 5:41 PM
Wed, Jul. 8, 9:12 AM
Mon, Jul. 6, 11:01 AM
- The Shanghai exchange rose 2.4% overnight following a Greek rejection of austerity measures and the unveiling by Chinese brokerages of a government-endorsed plan to buy at least RMB120B ($19.3B) worth of shares to prop up nosediving equity prices. However, Shenzhen fell 2.7% and Hong Kong fell 3.7%, with small-cap names especially hard-hit.
- U.S.-traded Chinese Web/mobile names are seeing heavy losses (CQQQ -7.8%), with small/mid-cap firms unsurprisingly bearing the brunt of the damage. Major decliners include Sina (SINA -8.8%), Weibo (WB -11.6%), YY (YY -7.3%), Sohu (SOHU -9.1%), Changyou (CYOU -11.8%), Youku (YOKU -12.3%), Jumei (JMEI -8.2%), Xunlei (XNET -8.7%), SouFun (SFUN -9.3%), Leju (LEJU -7.6%), E-House (EJ -6.9%), Sky-mobi (MOBI -9.4%), NQ Mobile (NQ -6.3%), 500.com (WBAI -11.6%), Momo (MOMO -6%), and Dangdang (DANG -6.7%).
- The NYT observes $2.7T in value has evaporated from Chinese equities since local markets peaked on June 12. The paper also notes individual investors own over 80% of Chinese stocks, and that Chinese investors respectively own 112M and 142M accounts on the Shanghai and Shenzhen exchanges, with each exchange seeing ~20M account openings this spring.
- ETFs: KWEB, QQQC, EMQQ
Wed, Jul. 1, 5:36 PM
Fri, Jun. 26, 11:45 AM
- As was the case a week ago, Chinese Web and mobile names are getting clocked in response to a sharp overseas selloff: Shanghai and Shenzhen respectively fell 7.4% and 7.9% overnight, putting their recent declines around the standard bear market threshold of 20%. The Nasdaq is down 0.4%.
- Explanations for China's selloff range from tighter margin requirements to cautious analyst notes to speculators simply choosing to take profits following a massive run-up. Shanghai and Shenzhen's 12-month gains now stand at 106% and 132%.
- Major U.S.-traded decliners include YY (YY -6.5%), Sohu (SOHU -5.4%), Sina (SINA -4.7%), Weibo (WB -5.2%), Xunlei (XNET -9.5%), Dangdang (DANG -8.7%), Jumei (JMEI -9.1%), Youku (YOKU -8.7%), Cheetah Mobile (CMCM -7.2%), Bitauto (BITA -6.7%), SouFun (SFUN -5.9%), ChinaCache (CCIH -5.4%), Zhaopin (ZPIN -5.6%), Wowo (WOWO -3%), and 500.com (WBAI -5.3%).
- ETFs: CQQQ, KWEB, QQQC, EMQQ
Fri, Jun. 19, 9:21 AM
- 10 days after E-House (NYSE:EJ) announced co-chairman/CEO Xin Zhou and director Neil Shen (26% stake between them) have offered to take it private for $7.38/share (part of a huge wave of going-private offers for U.S.-traded Chinese companies), SINA announces it has joined Zhou and Shen's consortium.
- Sina adds the consortium owns 48% of E-House's shares; that implies Sina's stake is at 22%. If/when the deal closes, Sina plans to exchange its E-House stake for a portion of the shares in E-House's LEJU online real estate subsidiary currently owned by E-House.
- E-House's board is "continuing its evaluation" of the offer. Shares currently trade 6% below the offer price.
Wed, Jun. 17, 10:23 AM
- Qihoo says it has received a ~$10B going-private offer from a group led by CEO Hongyi Zhou, the largest offer yet in the wave of bids received by U.S.-traded Chinese firms in recent weeks.
- Meanwhile, ahead of Qihoo's announcement, the high-flying Shanghai and Shenzhen exchanges respectively rose 1.7% and 2%. The indices are respectively up 140% and 181% over the last 12 months.
- In addition to YY and SouFun (previously covered), major Chinese tech gainers include Sina (SINA +4.8%), Weibo (WB +6.1%), Bitauto (BITA +4.9%), Youku (YOKU +6.8%), Momo (MOMO +8.3%), Xunlei (XNET +8.6%), Dangdang (DANG +5.6%), Sohu (SOHU +4.4%), Zhaopin (ZPIN +5.9%), and Jumei (JMEI +6.1%).
- ETFs: CQQQ, KWEB, QQQC
Fri, Jun. 5, 12:24 PM
- In what's now a familiar story, U.S.-traded Chinese Internet stocks are posting big gains following an overnight rally in the Middle Kingdom: The Shanghai Composite rose 1.5%, topping 5,000 for the first time since 2008. The Nasdaq is nearly flat.
- Big gainers include Qihoo (QIHU +7.5%), Bitauto (BITA +5.8%), JD.com (JD +4%), YY (YY +4.9%), 58.com (WUBA +3.9%), Sina (SINA +7.8%), Weibo (WB +4.8%), 500.com (WBAI +9.9%), Jumei (JMEI +4.3%), Sky-mobi (MOBI +4.3%), iDreamSky (DSKY +5.3%), E-House (EJ +3.6%), and Leju (LEJU +4%). Qunar is also up strongly after downsizing and pricing a stock offering.
- Sina and Weibo are now respectively up 39% and 22% since Sina CEO Charles Chao announced on Monday he's investing $456M in Sina.
- ETFs: KWEB, CQQQ, QQQC
Wed, Jun. 3, 3:59 PM
- Sina (SINA +3.9%) and subsidiary Weibo (WB +8.7%) have emphatically added to the big Monday gains seen after Sina chairman/CEO Charles Chao announced a $456M investment in his company. Sina is up 29% on the week; Weibo is up 21%.
- Earlier today, SA author Doug Young argued Chao's investment, along with other recent news/rumors, suggests "Sina is probably quite undervalued, in no small part due to Chao’s lack of inspiration despite his capable leadership." He also thinks Chao's purchase signals "he probably wants to have one more try at revitalizing his company." There has been speculation Chao may want to eventually spin off Sina properties not named Weibo.
- Orange Peel Investments provided a cautious reaction on Monday. "[W]hy dilute here? Why not just allow the CEO to purchase on the open market if he wants to show that he's bullish? The company already has a substantial cash position when compared to its $800M in debt."
Mon, Jun. 1, 11:46 AM
- SINA chairman/CEO Charles Chao plans to buy 11M newly-issued shares at $41.49 apiece (total cost of $456M). His purchase price is equal to Sina's 30-day average closing price as of May 29, and above a Friday close of $40.73.
- Chao's shares are subject to a 6-month lockup restriction. Sina had $2.1B in cash/short-term investments at the end of Q1, and $800M in convertible debt.
- Sina has soared to its highest levels since last summer, and has taken subsidiary Weibo higher with it.
Fri, May 29, 5:36 PM
Thu, May 14, 5:40 PM
- SINA is up 1.5% AH to $43.34 after posting a healthy Q1 beat aided slower spending growth; the company didn't provide guidance in its earnings release. Majority-owned Weibo (NASDAQ:WB) is down 3.6% to $16.45 after providing soft Q2 guidance - revenue of $102M-$105M, below a $111.4M consensus - to go with a Q1 revenue beat an in-line EPS.
- Weibo states the Q2 outlook assumes revenue related to "certain planned initiatives with Alibaba" set to begin in Q2 won't be recognized until 2H15.
- Sina's Q1 ad sales rose 8% Y/Y to $150.4M, with a $27.3M increase in Weibo ad sales offsetting a $12.7M drop in portal ad sales (share loss). Non-ad revenue was nearly flat at $31.6M.
- After rising 34% Y/Y in Q4, Sina's operating expenses only rose 15% in Q1 to $119.6M. Gross margin fell 200 bps Y/Y to 58%.
- Weibo's ad/marketing revenue rose 53% to $79.2M; value-added service revenue rose 9% to $17.1M. Costs/expenses rose 30% to $94.7M.
- Weibo monthly active users rose a healthy 13% Q/Q and 38% Y/Y to 198M, with mobile MAUs equaling 86% of total MAUs. Daily active users rose 10% Q/Q and 34% Y/Y to 89M.
- Sina: Q1 results, PR. Weibo: Q1 results, PR.
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