|Day's Range||27.29 - 27.29|
Moody's Investors Service says in a new report that Chinese internet and logistics companies are helping combat the coronavirus outbreak by identifying affected areas, transporting and distributing medical supplies, and addressing customer demand for online medical services and daily essentials, a credit positive for these companies in the long run. "Companies like Baidu and Alibaba are leveraging their strong technology platforms, robust supply chain capabilities and large user bases to help the government combat the outbreak, which we expect will further strengthen their leading market positions, primarily through higher user stickiness," says Lina Choi, a Moody's Senior Vice President. Meanwhile, members of the public have relied on Tencent Holdings Limited's (A1 stable) various media and social networking platforms, including Tencent News and Weixin, to stay up-to-date on the latest professional medical advice and government measures.
Short selling of U.S.-listed companies from China and Hong Kong has climbed since the coronavirus outbreak was confirmed on Jan. 20, according to the latest report from S3, a provider of short interest and securities finance data. S3 said that $751 million new shares were shorted in the 494 U.S.-traded Chinese and Hong Kong stocks the company tracks, bringing total short interest in those stocks to $27.27 billion. S3 said it expects to see continued short-selling in Chinese/Hong Kong stocks and that this would happen primarily in the U.S. market as Chinese regulators limit short-selling on China's exchanges.
Baidu, Inc. (Nasdaq: BIDU) today released a report that outlines the most frequently-used emoji from Facemoji Keyboard on popular dating apps Bumble, Hinge, Match, OkCupid, Plenty of Fish and Tinder in the United States.
(Bloomberg Opinion) -- The decision to exclude shares of China's biggest e-commerce company from a cross-border trading link is a blow to Hong Kong. Is it a punishment, or simple self-interest at work? The answer matters, both for the city’s exchange and for Alibaba Group Holding Ltd.Alibaba can’t be included in the stock connect program linking Hong Kong with the Shanghai and Shenzhen exchanges at present, Bloomberg News reported Tuesday, citing people familiar with the matter. China’s securities regulator has yet to agree to rule changes proposed by Hong Kong Stock Exchanges & Clearing Ltd. that would allow the internet company to participate, one of the people was cited as saying.Granted, the Jack Ma-founded internet giant doesn’t qualify under the stock connect program’s existing arrangements, which exclude companies that have secondary listings with weighted voting rights. These were already in place before New York-listed Alibaba raised $13 billion selling shares in Hong Kong late last year.But exceptions have already been made. In October, China allowed companies with dual-class shares to join the connect, giving investors in the mainland access to Hong Kong-listed technology companies Xiaomi Corp. and Meituan Dianping. Rules can be changed when there is the desire to do so.Clearly, that was the expectation among investors here. The notice on dual-class shares was posted by the Shanghai and Shenzhen exchanges in mid-October and took effect Oct. 28. Three days later, Alibaba was reported to be planning its secondary listing in Hong Kong the following month. The shares started trading Nov. 26.Investors in Alibaba’s Hong Kong stock will have a right to feel short-changed if the shares lose steam as a result. They dropped as much as 2.5% after the Bloomberg News story published, before recovering to close little changed. Alibaba has rallied more than 20% since its debut in Hong Kong, at least partly on anticipation that the stock will draw a wall of money from mainland Chinese investors who wouldn’t otherwise be able to buy.The lack of support for Alibaba to join the stock connect is a severe blow to Hong Kong’s aspirations of marketing itself as the offshore listing venue of choice for Chinese technology companies, in an environment where the U.S. has become increasingly inhospitable and businesses are considering their options. Trip.com Group Ltd. and Netease Inc. are among U.S.-listed Chinese enterprises that are said to be looking at listing in Hong Kong. Bankers have talked of pitching other names including JD.com Inc. and Baidu Inc.The prospect of acquiring an enthusiastic mainland investor base that would help to buoy valuations is a key selling point for those who might be tempted to decamp from a U.S. exchange. If Alibaba — a marquee name with a $578 billion market capitalization — can’t get the nod, what’s the hope for any of the others?More worrying for Hong Kong is what the reluctance may say about China’s support for the city, as it contemplates the hit to its own economy from the coronavirus epidemic. HKEX, after all, is a competitor as well as a partner with the Shanghai and Shenzhen exchanges. If Hong Kong becomes too attractive a venue for China’s leading companies, that may hold back development of the mainland’s markets.In 2018, Hong Kong relaxed its listing rules to admit unprofitable technology companies, competing with the U.S. and making the exchange even more alluring to Chinese hopefuls than the Shanghai and Shenzhen markets. In turn, Shanghai introduced the tech-focused Star Board in July, a Chinese answer to the Nasdaq that accepts money-losing companies with weighted voting rights. After a lively start, the board’s performance has been underwhelming. It has drawn few big names and has thin turnover.All may not be lost. Smartphone maker Xiaomi had been public in Hong Kong for 15 months before it joined the connect, while food-delivery app Meituan had to wait 13 months. HKEX and Alibaba will have to hope this is the slow arm of bureaucracy rather than the cold shoulder. To contact the author of this story: Nisha Gopalan at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Investors betting on Alibaba Group Holding Ltd.’s inclusion in a program allowing mainland Chinese investors to buy its shares in Hong Kong could be in for a disappointment.China’s largest e-commerce company, valued at HK$4.56 trillion ($587 billion) in Hong Kong, can’t be included in the stock connect program linking the Asian financial hub with Chinese investors at present, according to people with knowledge of the matter, who asked not to be identified as the discussions are private.The exclusion of companies with secondary listings and weighted voting rights from the program was part of an arrangement agreed to by the mainland and Hong Kong exchanges before Alibaba’s Hong Kong debut last year, the people said. The Shanghai, Shenzhen and Hong Kong exchanges haven’t agreed to make an exception or revise the agreement for Alibaba, though that could change in the future, they said.With the bourses competing to draw the listings of local firms already floated in the U.S., allowing companies in Alibaba’s position into the program would run contrary to Beijing’s ambitions of developing its mainland exchanges, particularly as unrest grips Hong Kong. Other Chinese firms -- among the country’s largest corporations, from JD.com Inc. to Baidu Inc. -- may then be encouraged to also pick Hong Kong, bypassing the Shanghai or Shenzhen bourses.The Hong Kong Stock Exchanges & Clearing Ltd. has proposed changes to the China Securities Regulatory Commission, which hasn’t yet made a decision to revise the previous arrangement, one of the people said.Companies with weighted voting rights and a secondary listing are not currently included in the stock connect and there’s been no precedent for such a move, a Hong Kong Exchange spokesman said in response to questions on the agreement. “We look forward to discussing the potential for this with relevant parties in the future,” he said. “More generally, HKEX is not in the habit of banning things that it considers positive for the market.”Alibaba is not among the current batch of companies to be included in the stock connect, said a separate person, adding that the list will be updated on Feb. 17.Representatives for Alibaba and the Shanghai Stock Exchange declined to comment. Shenzhen Stock Exchange and China’s stock market watchdog, the China Securities Regulatory Commission, didn’t immediately reply to emails seeking comment.Alibaba’s landmark $13 billion secondary listing in Hong Kong last year was in part spurred by expectations that it would attract a vast pool of capital from its home country if included in the stock connect.In the Hong Kong offering, Alibaba preserved its governance structure: Granting a partnership of top executives the right to nominate a majority of board members. That system falls broadly into the definition of having weighted voting rights in Hong Kong.Alibaba’s shares are up about 20% since the November listing, prompting other U.S.-listed technology companies including Trip.com to look at a secondary listing in Hong Kong, people familiar have said. Alibaba fell as much as 2.5% in Hong Kong Tuesday, the biggest drop in two weeks, before paring losses. In the past, China has green-lit companies with weighted voting rights that conducted primary share sales in Hong Kong to join the stock connect program. For example, food delivery giant Meituan Dianping and smartphone maker Xiaomi Corp. joined in late October. Chinese firms with dual class shares started listing in July on Shanghai’s new tech-focused Star board.(Updates with shares)\--With assistance from Kiuyan Wong and Lucille Liu.To contact Bloomberg News staff for this story: Evelyn Yu in Shanghai at email@example.com;Lulu Yilun Chen in Hong Kong at firstname.lastname@example.org;Steven Yang in Beijing at email@example.comTo contact the editors responsible for this story: Candice Zachariahs at firstname.lastname@example.org, Jonas Bergman, David ScanlanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
We remain concerned with the growth strategy and competitive landscape despite our respect for the longtime success of the business and its founder Continue reading...
BEIJING/SHANGHAI, Feb 4 (Reuters) - Online games and short video apps have been among the few beneficiaries of China's virus outbreak, raking in millions of views and downloads as people stuck in self-quarantine at home seek entertainment and ways to beguile their time. "I only use my mobile phone for three hours a day at work, but at least eight hours every day during the Spring Festival, because it's so boring," Lu Zhang, a junior high school teacher in eastern Shandong province, said of the enforced holiday. Investors have seized on the trend, with shares of Chinese game publishers, such as Tencent, rising 2% in Hong Kong on Tuesday, outstripping a rise of 1% in the benchmark , while in New York, NetEase rose nearly 3%.
U.S.-listed Chinese internet stocks rallied in Monday trading after the People's Bank of China said it would intervene to help stimulate the Chinese economy as the coronavirus continues to spread, stalling business operations in the company. The rally for U.S.-listed internet stocks comes as the Shanghai Composite index dropped about 8% after it reopened Monday at the culmination of the Lunar New Year holiday, though the decline was not as steep as some had feared. Among the U.S.-listed shares trading higher in Monday's session are Alibaba Group Holding Ltd. , JD.com Inc. , and Qutoutiao Inc. Shares of Baidu Inc. and iQiyi Inc. are also up sharply after Baidu raised its outlook late Friday but said it would be delaying its earnings report due to the outbreak. The KraneShares CSI China Internet ETF is up 2.9% in Monday trading, though it has fallen 3.3% over the past month.
The Beijing-based search-engine giant increased its fourth-quarter revenue guidance to RMB28.3 billion to RMB28.9 billion ($4.06 billion to $4.15 billion), up 4% to 6% from a year ago. The forecast assumes that Baidu's core revenue will grow between 4% to 6% year over year, the company said, compared with the previous guidance between 0% to 6% year over year. Baidu also said it expects net income to range from RMB8.9 billion to RMB9.4 billion, which assumes that non-GAAP net income attributable to Baidu core will grow between 50% to 55% year over year.
U.S stocks opened modestly higher Monday after a market meltdown Friday, and even as Chinese markets re-opened after being shuttered for several days to sharp declines. The Dow Jones Industrial Average gained about 88 points, 0.3%, to open near 28,344, while the S&P 500 opened 12 points, 0.4%, higher, near 3,237. The Nasdaq rose about 40 points, 0.4%, to open near 9,191. US-traded shares of Baidu Inc. rose about 4% after the company upped its fourth-quarter guidance. Markets in China lost about 8% Monday, but that was less than many analysts had feared. China's central bank said it would take steps to stabilize markets and the economy.
U.S.-traded shares of Baidu Inc. surged in the extended session Friday after the Chinese Internet search company raised its outlook for the quarter. Baidu ADRs rallied 5% after hours, following a 1.7% decline to close the regular session at $123.56. The company said it expects adjusted fourth-quarter net income of $1.28 billion to $1.36 billion on revenue of $4.06 billion to $4.15 billion. Analysts surveyed by FactSet had forecast adjusted net income of $623.4 million on revenue of $4.02 billion. Baidu also said it was pushing its reporting date to Feb. 27 and extending its employees' Chinese New Year holiday and asking them to work from home because of "the evolving situation brought upon by the outbreak of the novel coronavirus."
The company, which postponed the announcement date by more than two weeks to Feb. 27, said the revised date would give it more time to observe the business condition for the first quarter of 2020. Baidu, whose search engine dominates the market in China, said it now expects fourth-quarter revenue in a range of 28.3 billion yuan ($4.10 billion) to 28.9 billion yuan, compared with its previous forecast of 27.1 billion yuan to 28.7 billion yuan. Shares of Baidu were up about 5% in extended trading.
Baidu, Inc. (NASDAQ: BIDU) ("Baidu" or the "Company"), the leading Chinese language Internet search provider, today announced that the reporting date for its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2019 has been revised to February 27, 2020, and it has updated its guidance for the fourth quarter of 2019 below.
It's been close to two years since IQIYI (NASDAQ:IQ) came public. But the company, which is often compared to the Netflix (NASDAQ:NFLX) of China and is a spin-off of Baidu (NASDAQ:BIDU), has had a choppy performance since its offering. The Initial Public Offering for IQ stock was at $18 a share. As of now, the shares are fetching $22.60 -- a gain of 26%. But hey, during this period, NFLX has also had a choppy track record.Source: NYC Russ / Shutterstock.com So what now for IQ stock? Is it time to consider a purchase?Well first of all, IQ stock certainly has some notable positives. After all, the company has nearly 106 million subscribers to its streaming service, making it one of the world's largest video platforms. And of course, there is much more room to grow, as China has more than 480 million households.InvestorPlace - Stock Market News, Stock Advice & Trading TipsLike NFLX, IQIYI has been investing heavily in its premium content. Some of programs launched in the quarter include dramas like Arsenal Military Academy, Love and Destiny as well animation serials and reality shows. * 7 Under-the-Radar European Stocks to Buy for 2020 But despite all this, there is a nagging issue: revenues have stagnated. During the latest quarter, growth was a mere 7%.So what's going on? There are myriad reasons. For one, the market for higher income subscribers appears to be at saturation levels. While IQ is attempting to penetrate lower-tier markets, this is likely to be challenging. That helps explain why the company has been looking outside of China for growth.A recent example of this is the company's deal with Astro, a top Malaysian satellite TV operator. China's EconomyPerhaps the biggest problem for IQ stock is China's languishing economy. It really does look like the trade war had a major impact, as growth in 2019 hit the lowest point in three decades.Granted, the Phase One agreement with the US will help -- but that will likely still be a modest improvement. The fact is there is a long way to go to relive some of the US pressure on China.To get a sense of the impact of all this on IQ stock, just look at the advertising business. The company reported a grueling 14% drop in the latest quarter, on a year-over-year basis. Consider that ad spending is highly sensitive to changes in the economy. Simply put, it's the kind of item that is fairly easy to cut.In the meantime, the outbreak of the coronavirus will only exacerbate the situation. The city of Wuhan has been put under lockdown (the population is 11 million) and there are transportation controls on at least eight other cities. This comes at the time of the Lunar New Year, which involves heavy consumer spending.It's extremely difficult to gauge the impact of this. But when the SARS virus hit China in 2002, the GDP growth dropped from 11.1% to 9.1% when it was at the peak. It's also important to keep in mind that consumer spending represents a much larger portion of the economy. Bottom Line On IQ StockWith the tough economic headwinds, IQ will likely struggle to get growth back on track. Let's face, the subscription to a steaming service is a highly discretionary item. It also does not help that content costs continue to escalate, which will continue to adversely impact the bottom line.So given all the uncertainty, it's probably best to hold off for now on IQ stock.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Under-the-Radar European Stocks to Buy for 2020 * 7 Industries Using AI to Benefit Shareholders Around the World * 5 Chinese Stocks to Buy When Coronavirus Fears Fade The post When It Comes To IQIYI Stock, Investors Should Tune Out appeared first on InvestorPlace.
Stocks have taken a big hit in the past week on Wuhan coronavirus fears, but Chinese stocks have gotten hit especially hard. Not surprisingly, short sellers have been particularly active in certain Chinese ...
This figure from S3 Partners includes shorting of ETF shares worth $62 million and equities worth $275 million. The top China-centric ETFs being targeted by short sellers include the ISHS MSCI China ETF (MCHI), ISHS China Large Cap ETF (FXI), Kraneshs CSI China Internet Fund ETF (KWEB) and SPDR S&P China ETF (GXC). Travel restrictions are in place throughout China's major cities and health screenings are increasing at major airports in Asia and Europe.
(Bloomberg) -- Alibaba co-founder Jack Ma has become the latest technology industry figure offering to help fight the coronavirus outbreak.China’s richest man will donate 100 million yuan ($14.5 million) through his charitable foundation, joining Bill and Melinda Gates in pledging assistance. That’s on top of an offer by his Alibaba Group Holding Ltd. to establish a 1 billion yuan fund and share its artificial intelligence expertise with researchers.“We know that the battle between humanity and disease is a long journey,” the foundation said in a post on its Twitter-like Weibo account. “This money will help various medical research efforts and help disease prevention.”China’s tech industry has responded rapidly to an outbreak that’s infected thousands and killed more than 150 around the globe. Pony Ma’s Tencent Holdings Ltd. donated 300 million yuan of goods and will provide mapping and data services; ride-hailing giant Didi Chuxing is ferrying medical workers in designated vehicles across certain cities; Robin Li’s Baidu Inc. and TikTok owner ByteDance Inc. are contributing financial aid.While Ma and his industry have been accused of foisting extreme overtime on its employees, many companies like Tencent have extended the Lunar New Year holidays by a week or more in the wake of the outbreak.Read more: WHO Considers Emergency Decree; Toll Hits 170: Virus UpdateTo contact the reporter on this story: Lulu Yilun Chen in Hong Kong at email@example.comTo contact the editors responsible for this story: Peter Elstrom at firstname.lastname@example.org, Edwin ChanFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.