China Economy Forum

[shuttler]

Sina Weibo files for $500m US IPO
Updated: 2014-03-15 15:19
( Agencies)

A Sina Weibo booth displays at a conference on September 24, 2013 in Beijing. [Photo / Image China]

Twitter-like messaging service Weibo Corp filed on March 14 to raise $500 million via a US initial public offering, as Chinese companies flock to the American market in record numbers to take advantage of soaring valuations.

Weibo, owned by Sina Corp, becomes the latest Chinese Internet giant to tap US markets, following on the heels of search service Baidu and its own corporate parent. Alibaba, which owns a stake in Weibo, is expected to raise about $15 billion in New York this year, in the highest-profile Internet IPO since Facebook's in 2012.

Weibo increased ad revenue by 163 percent to $56 million in the final three months of 2013. Overall revenues leapt almost three-fold to $188.3 million in 2013, from $65.9 million in 2012. And its net loss shrank to $38.1 million in 2013 from $102.5 million the previous year.

But its user growth is at risk of tailing off after three years of explosive expansion, as newer messaging apps such as Tencent Holdings Ltd's WeChat draw users away.

However, Weibo said the number of its daily users had risen 36 percent to 61.4 million as of the end of December, from the same time a year before.

Weibo hired Goldman Sachs and Credit Suisse to manage its US debut, which it said would boost brand recognition and help retain talent.

Its proposed $500 million target is an estimate worked out solely for the purposes of calculating registration fees.

Alibaba picks U.S. for IPO; in talks with six banks for lead roles
BY ELZIO BARRETO AND DENNY THOMAS

HONG KONG Sun Mar 16, 2014 6:42am EDT

(Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd has decided to hold its long-awaited IPO in the United States and is in discussions with six banks to underwrite the deal, in what is set to the most high-profile public offering since Facebook Inc's listing nearly two years ago.

Alibaba said in a statement on Sunday it had decided to begin the U.S. IPO process, ending months of speculation about where it would go public.

Separately, sources told Reuters that Alibaba is in discussions with Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs Group, J.P. Morgan, and Morgan Stanley for lead underwriting roles.

Most of the six banks are to set to win the coveted role of joint global coordinator, added the sources, who were not authorized to discuss the matter publicly.

Analysts estimate the Hangzhou, China-based company has a value of at least $140 billion, and the IPO proceeds could exceed $15 billion, Reuters previously reported. The deal would be a huge coup for the six banks, as it would yield an estimated $260 million in underwriting fees, assuming 1.75 percent commission, and catapult them in league table rankings.

Alibaba declined to comment on the banks working on the deal. The banks mentioned in the report either declined comment or did not respond to Reuters' requests for a comment.

"This will be a huge deal, bigger than what people were anticipating," one person familiar with the process said, adding that the IPO was expected to be kicked off "very soon".

Reuters reported on Saturday that Alibaba is planning a U.S. IPO in the third quarter, with a filing of documents expected as early as April.

BILLIONAIRE MA

Alibaba, whose platforms handle more goods than EBay Inc and Amazon.com Inc combined, was founded in 1999 by former English teacher Jack Ma and 17 other people. It has grown from a startup in Ma's apartment to a behemoth with offices around the world and more than 20,000 employees.

The listing will be closely watched by Alibaba's two largest shareholders - Yahoo Inc, which owns 24 percent, and Japan's Softbank Corp, which controls 37 percent. Alibaba's founders and some senior managers jointly own about 13 percent of the company.

Yahoo has said it plans to trim its stake in Alibaba through the IPO. It initially invested in Alibaba in 2005.

Alibaba's decision to go to the United States is a blow to the Hong Kong stock exchange, which was initially the company's preferred venue for the IPO.

Alibaba also said in a statement on its corporate news Web site it might consider extending its public status to Chinese capital markets in future in order for investors there to be able to share in its growth.

Alibaba, which controls about 80 percent of the country's e-commerce, had been in discussions with the Hong Kong stock exchange and the Securities and Futures Commission since last year about a listing, but the island city's regulators blocked its proposal as it violated the "one-share-one-vote principle".

Alibaba's executive vice chairman Joe Tsai upped the rhetoric against Hong Kong when he told Reuters last week that the firm would not change its partnership structure in order to list on the Hong Kong stock exchange.

After an initial rebuff, Alibaba and the Hong Kong regulators were back at the negotiating table late last year, to find a solution to the problem. While the Hong Kong Exchanges and Clearing Ltd has initiated a review of its listing rules to accommodate more flexible structures, any change to the existing rules would take months.

"We wish to thank those in Hong Kong who have supported Alibaba Group," Alibaba said in its statement.

"We respect the viewpoints and policies of Hong Kong and will continue to pay close attention to and support the process of innovation and development of Hong Kong."

(Reporting by Elzio Barreto and Denny Thomas; Editing by Robert Birsel)

Alibaba picks U.S. for IPO; in talks with six banks for lead roles| Reuters

 

[bolo]

Nothing to cheer about really!

"Growth was partly driven by strong performance of foreign brands such as Toyota and Ford. Last month, Toyota Motor Corp reported a 43.1 percent rise in sales, while Ford Motor Co's sales in China jumped 67 percent.

In contrast, local Chinese brands registered their sixth consecutive monthly decline in market share, according to CAAM."

Why are Chinese cars so far behind foreign cars?
Is it marketing or lack of? Technology?

Sina Weibo files for $500m US IPO
Updated: 2014-03-15 15:19
( Agencies)

A Sina Weibo booth displays at a conference on September 24, 2013 in Beijing. [Photo / Image China]

Twitter-like messaging service Weibo Corp filed on March 14 to raise $500 million via a US initial public offering, as Chinese companies flock to the American market in record numbers to take advantage of soaring valuations.

Weibo, owned by Sina Corp, becomes the latest Chinese Internet giant to tap US markets, following on the heels of search service Baidu and its own corporate parent. Alibaba, which owns a stake in Weibo, is expected to raise about $15 billion in New York this year, in the highest-profile Internet IPO since Facebook's in 2012.

Weibo increased ad revenue by 163 percent to $56 million in the final three months of 2013. Overall revenues leapt almost three-fold to $188.3 million in 2013, from $65.9 million in 2012. And its net loss shrank to $38.1 million in 2013 from $102.5 million the previous year.

But its user growth is at risk of tailing off after three years of explosive expansion, as newer messaging apps such as Tencent Holdings Ltd's WeChat draw users away.

However, Weibo said the number of its daily users had risen 36 percent to 61.4 million as of the end of December, from the same time a year before.

Weibo hired Goldman Sachs and Credit Suisse to manage its US debut, which it said would boost brand recognition and help retain talent.

Its proposed $500 million target is an estimate worked out solely for the purposes of calculating registration fees.

Alibaba picks U.S. for IPO; in talks with six banks for lead roles
BY ELZIO BARRETO AND DENNY THOMAS

HONG KONG Sun Mar 16, 2014 6:42am EDT

(Reuters) - Chinese e-commerce giant Alibaba Group Holding Ltd has decided to hold its long-awaited IPO in the United States and is in discussions with six banks to underwrite the deal, in what is set to the most high-profile public offering since Facebook Inc's listing nearly two years ago.

Alibaba said in a statement on Sunday it had decided to begin the U.S. IPO process, ending months of speculation about where it would go public.

Separately, sources told Reuters that Alibaba is in discussions with Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs Group, J.P. Morgan, and Morgan Stanley for lead underwriting roles.

Most of the six banks are to set to win the coveted role of joint global coordinator, added the sources, who were not authorized to discuss the matter publicly.

Analysts estimate the Hangzhou, China-based company has a value of at least $140 billion, and the IPO proceeds could exceed $15 billion, Reuters previously reported. The deal would be a huge coup for the six banks, as it would yield an estimated $260 million in underwriting fees, assuming 1.75 percent commission, and catapult them in league table rankings.

Alibaba declined to comment on the banks working on the deal. The banks mentioned in the report either declined comment or did not respond to Reuters' requests for a comment.

"This will be a huge deal, bigger than what people were anticipating," one person familiar with the process said, adding that the IPO was expected to be kicked off "very soon".

Reuters reported on Saturday that Alibaba is planning a U.S. IPO in the third quarter, with a filing of documents expected as early as April.

BILLIONAIRE MA

Alibaba, whose platforms handle more goods than EBay Inc and Amazon.com Inc combined, was founded in 1999 by former English teacher Jack Ma and 17 other people. It has grown from a startup in Ma's apartment to a behemoth with offices around the world and more than 20,000 employees.

The listing will be closely watched by Alibaba's two largest shareholders - Yahoo Inc, which owns 24 percent, and Japan's Softbank Corp, which controls 37 percent. Alibaba's founders and some senior managers jointly own about 13 percent of the company.

Yahoo has said it plans to trim its stake in Alibaba through the IPO. It initially invested in Alibaba in 2005.

Alibaba's decision to go to the United States is a blow to the Hong Kong stock exchange, which was initially the company's preferred venue for the IPO.

Alibaba also said in a statement on its corporate news Web site it might consider extending its public status to Chinese capital markets in future in order for investors there to be able to share in its growth.

Alibaba, which controls about 80 percent of the country's e-commerce, had been in discussions with the Hong Kong stock exchange and the Securities and Futures Commission since last year about a listing, but the island city's regulators blocked its proposal as it violated the "one-share-one-vote principle".

Alibaba's executive vice chairman Joe Tsai upped the rhetoric against Hong Kong when he told Reuters last week that the firm would not change its partnership structure in order to list on the Hong Kong stock exchange.

After an initial rebuff, Alibaba and the Hong Kong regulators were back at the negotiating table late last year, to find a solution to the problem. While the Hong Kong Exchanges and Clearing Ltd has initiated a review of its listing rules to accommodate more flexible structures, any change to the existing rules would take months.

"We wish to thank those in Hong Kong who have supported Alibaba Group," Alibaba said in its statement.

"We respect the viewpoints and policies of Hong Kong and will continue to pay close attention to and support the process of innovation and development of Hong Kong."

(Reporting by Elzio Barreto and Denny Thomas; Editing by Robert Birsel)

NO. Going public is bad. Let it remain strictly a Chinese company!

 

[shuttler]

Why are Chinese cars so far behind foreign cars?
Is it marketing or lack of? Technology?

I hate to say this buddy a yes that our cars are not up to par yet
As our personal wealth grows, buyers are more picky and regrettably our cars in terms of design, safety and other aspects is not catching up now

Hopefully we can catch up quickly and do better!

NO. Going public is bad. Let it remain strictly a Chinese company!

well pros and cons
We are getting international money to strengthen our war chests
But of course we are giving away some control as well as exposures to wilful acquisitions though unlikely because of our sizes and cash. The yankies also can find a way to harrass us through their legal compliance etc

As far as I know, Alibaba will be" one of" if not "the" splash of the year
It is going to have a market value of a whopping USD 120 billion

 

[tranquilium]

China has close to 3.5 Trillion reserves, even if we consider the credit bubble is in 1 or 2 Trillion China can cope with this.

But once the Economy recovers and steadies, China will no longer have the advantage of cheap labor and they cannot do what they did in the last decade.

Erm, China didn't not have the advantage of cheap labor since the 90s. India, Vietnam and plenty of Southeast Asia, as well as African country had cheaper labor cost than China for close to two decades now. What China had advantage on is cheap labor with high level of education and this is unlikely to change for the next decade.

 

[cnleio]

China own a complete industrial chain (technology + labors), compared with others primary produce China do R&D for decades but foreigners ignore it. China has technology advantage & cheap cost & high efficiency, but they don't.

 

[cirr]

Hangzhou Bay to get 2nd bridge (note it will be also a rail bridge)

Last Updated: 2014-03-13

Shanghai Daily

A plan to build a second bridge across Hangzhou Bay, which will reduce the drive time between Shanghai and Ningbo to less than two hours, was granted approval yesterday. The 66-kilometer span, of which 54km will be over water, will link Shanghai's Jinshan District with Cixi City in Ningbo, Zhejiang Province, the Ningbo government said. The road-rail bridge will reduce the distance between Shanghai and Ningbo to 160km from 200km, officials said.

The government did not provide cost for the project, but said its traffic infrastructure budget for the year, which includes the new bridge, is 18.1 billion yuan (US$2.95 billion). The new bridge is part of a wider scheme to improve traffic links between Yangtze Delta cities. The first Hangzhou Bay Bridge opened in 2008 at a cost of 11.8 billion yuan.

Last month, work got under way on the world's longest cable-stayed bridge, which will reduce the drive time between Shanghai and Nantong in Jiangsu Province to about an hour, from three hours at present.

 

[Beidou2020]

China don't need low wages as we move up the value chain. High tech manufacturing relies less on cheap labour and more on automation.

China will go the German route with high tech manufacturing with very high wages and a strong service sector.

 

[bolo]

Dude, look at USA. You're in greater debt than Vietnam. Your GDP means nothing when you have much more debt to pay. Vietnam doesn't run into that problem. USA is growing at 2.8% while Vietnam is growing at 5.2%. More debt means you're closer to serious economic meltdown. Keep wasting all your resources and your equipment become garbage for the next 20 years. Unless USA holds all trade to China then they could do much better. China is a blood sucker and its killing you slowly.

I still take USD over vietcong dongs anyday

 

[sincity]

LOL, who says I'm worry? I'm actually trying to help them increase more debt and make you pay for it. Truth hurts doesn't it? I feel ya. Don't worry, you're used to someone stomping your head that's why you don't feel it.

How will you stomp someone head over the internet? How do you increase the US debt?

 

[vtnsx]

How will you stomp someone head over the internet? How do you increase the US debt?

Let's not talk about it. You're getting offended for no reason and you don't understand the logic. I don't need to explain to you.

 

[Beidou2020]

These companies will regret listing in the US if one day the US puts sanctions on China for some geopolitical spat.

IMO a Chinese company doing an IPO in a foreign country is corporate treason.

At the same time the Chinese leaders should hang their heads in shame because our capital markets are still extremely backward.

China will lose independence by listing in the US.

 

[Genesis]

Why are Chinese cars so far behind foreign cars?
Is it marketing or lack of? Technology?




NO. Going public is bad. Let it remain strictly a Chinese company!

First technology is not bad, we are not making the best cars for the world. Chinese car's quality is pretty good. Not worse than a few popular brands.

But the thing is prestige, who hears China and thinks oh, I want that.

Marketing is hard when the country doesn't offer prestige. American cars are not that great, it;s not the best, but America is and that helps a lot more than people think.



Second going public is good, more money, and regulation. China's closed off policy is old and useless, would you rate Toyota or Sony any less because their American counter parts are pretty significant?

 

[sixth]

These companies will regret listing in the US if one day the US puts sanctions on China for some geopolitical spat.

IMO a Chinese company doing an IPO in a foreign country is corporate treason.

At the same time the Chinese leaders should hang their heads in shame because our capital markets are still extremely backward.

China will lose independence by listing in the US.

你能影響中國政府嗎? 中國政府高層所謂顾问团大多是崇拜絕對經濟自由主義者, 李克強本身也是其中一員, 李克強的師父是厲以寧.

 

[cirr]

Contracts worth a total of 2.9 billion USD for the two Chinese groups CSR and CNR

March 18 2014 at 07:45am

By Londiwe Buthelezi

Independent Newspapers Bombardier Transportation president Lutz Bertling (left) shakes hands with Transnet chief executive Brian Molefe after signing a deal to build locomotives for Transnet Freight Rail. Bombardier and three other companies will deliver 1 064 locomotives over the next three and a half years. Photo: Simphiwe Mbokazi

Johannesburg - Chinese engine manufacturer China South Rail (CSR) will take the biggest share of the R50.4 billion contract to produce new-generation locomotives for Transnet, which announced the names of the four successful bidders yesterday.

Transnet said this was South Africa’s largest locomotive supply contract.

The logistics parastatal will procure 1 064 locomotives – 599 electric and 465 diesel – from the four bidders announced yesterday. The R50.4bn total includes hedging and escalation.

CSR Zhuzhou Electric Locomotive, the company whose R2.6bn contract with Transnet to build 95 electric locomotives in 2012 saw the Workers International Vanguard League request that the deal be investigated, will produce 359 more electric locomotives for the state-owned company. The value of CSR’s contract is R14.6bn.

Bombardier, the Canadian company that was involved in building the Gautrain with the Bombela Consortium, will produce the remaining 240 electric locomotives for R10.4bn.

General Electric South Africa Technologies will produce 233 diesel locomotives for R7.1bn and CNR Rolling Stock South Africa will produce 232 diesel locomotives for R7.8bn.

The request to probe CSR’s 2012 locomotive contract with Transnet stemmed from a deal that one of CSR’s subsidiaries won in Namibia in 2007, in which it delivered faulty diesel locomotives that had to be withdrawn from service within weeks of being delivered.

Early last year, various technical problems were experienced by the Tanzania-Zambia Rail Authority on locomotives that were supplied by CSR Qishuyan Locomotive in late 2012. Later last year, two diesel locomotives from CSR Ziyang were grounded and quarantined in Australia because they contained asbestos.

But CSR president Liu Hualong said that while he believed “different people have different opinions” regarding the company’s advantage that qualified it to win the biggest share of the tender, CSR would deliver the “best quality” electric locomotives as it was a leader in that sphere and China was known as “the home of electric locomotives”.

“First of all, we have a very complete system for development and manufacturing for the electric locomotives. This complete system promotes our capability and capacity to develop and produce the locomotives,” Liu said.

CSR’s 23 subsidiaries had four engineering testing centres, nine national design centres and seven national testing centres and Liu said this demonstrated their capability.

“We sorted out the problems in Namibia quickly and those were diesel locomotives. Namibia has now procured more locomotives from CSR.

“We have never had any problems with the electric locomotives,” he said.

Transnet Freight Rail chief executive Siyabonga Gama said linking CSR Zhuzhou Electric Locomotive, the subsidiary chosen by Transnet, to the Namibian locomotive contract would be perpetuating a lie as this was not the subsidiary responsible for the locomotives delivered in that country.

He said while Transnet was aware of media reports about CSR in Namibia, which had to do with diesel locomotives, the distinction must be made that CSR was providing electric locomotives for Transnet and not the diesel type.

“We are very happy with the first 10 locomotives that we have received from CSR. In fact they are of an above-average standard. Our engineers are pleasantly surprised. We don’t foresee that we are going to get any problems from the locomotives,” Gama said.

CSR delivered the first batch of the 95 class E20 locomotives after only eight months, well ahead of schedule, and Transnet will put some of these CSR locomotives into operation next month.

Transnet said the first batch of locomotives would be delivered in about 15 months. Although Transnet’s fleet procurement programme is a five-year project, the utility said the delivery of all the locomotives would be compressed into just three and a half years.

All except the first 70 would be manufactured and assembled in South Africa at Transnet Engineering’s plants in Durban and Koedoespoort, Pretoria. Transnet Engineering will invest R300 million to upgrade the two plants.

The first 10 of CSR’s electric locomotives delivered to Transnet were manufactured at the Koedoespoort plant.

For the new tender, local content thresholds were 55 percent for the diesel locomotives and 60 percent for the electric ones. Transnet group chief executive Brian Molefe said all chosen companies had met this requirement and in certain instances exceeded it. - Business Report

China wins big in R50bn rail fleet contract - Business News | IOL Business | IOL.co.za

 

[cirr]

China, S. Korea begin 10th round of FTA talks next week
(The BRICS Post, March 14)

Aiming for an upgrade of economic ties, South Korea and China will hold a new round of negotiations on the bilateral free trade agreement (FTA) next week, Seoul’s trade ministry said Friday.

The week long 10th round of talks will further discussions on goods liberalization, service, investment and rules.

The two sides will discuss a joint written agreement to include goods, rule of origin, customs, sanitary and phytosanitory (SPS), technical barriers to trade (TBT) and trade remedy.

China and South Korea have in recent months been united in their criticism against the Japanese government after Prime Minster Shinzo Abe’s visit to a controversial shrine honoring war criminals alongwith those who died in World War II.

Both China and South Korea had some parts of their territory under Japanese rule in the past.

Chinese President Xi Jinping had met his South Korean counterpart Park Geun-hye in October last year on the sidelines of the APEC meet in Bali. Both leaders have aggressively pushed for the bilateral FTA that could see further buoying of trade ties between the two Asian giants.

The new round of talks that begin next week will also look at service and investment, intellectual property rights, e-commerce, transparency and the environment.

South Korea and China completed the first stage in early September for the bilateral free trade pact, with a total of seven rounds of negotiations.

full: http://thebricspost.com/china-s-kore.../#.UyLk2fmSySp


World's first LNG-fueled cargo vessel starts testing
(CE.cn, March 15)

The world's first liquefied natural gas (LNG)-fueled carrier has started testing waters in the port city of Zhangjiagang in east China's Jiangsu Province, according to Chinese ship builder Tsuji Heavy Industries (Jiangsu) Shipyard.

The 5,000 dwt ocean-going cargo vessel is expected to be delivered to Nor Lines AS, a Norwegian logistics and shipping company, in June.

It is one of two LNG-fueled vessels ordered by Nor Lines. The shipyard did not say when the second ship will be produced.

Compared to traditional diesel fuel, the use of natural gas-fueled engines can significantly reduce pollution from sulphur dioxide, nitrogen oxide and CO2 in emissions.

The ship's design was developed by Rolls-Royce Maritime using the group's award-winning "Environmental Ship Concept," which won the "Next Generation Award" at the Nor-Shipping Awards in 2011.

link: http://en.ce.cn/Industries/manufactu..._2487705.shtml