Monthly Archives: March, 2017

Tencent Takes $1.8B Tesla Stake

March 29th, 2017 Posted by Capital Markets, China Business Development No Comment yet

Chinese Internet giant Tencent disclosed that it has taken a 5% passive stake in Tesla. Best known for its WeChat mobile app and investments in mobile games, Tecent’s stock purchase comes as a surprise. Will our friends in Beijing and Shanghai be able to order a custom configured Model S via WeChat in the near future?

Read the Reuters article here.

Ballard Power Systems and China: Better Late than Never

March 27th, 2017 Posted by Capital Markets, China Business Development No Comment yet

Rapid market adoption of non-polluting hydrogen powered buses in China is giving fuel cell supplier Ballard Power Systems a boost to its stock price. BLD is up 63% over the past 12 months, with 40% of sales coming from China. Ballard’s biggest shareholder is Zhongshan Broad-Ocean Motor Co., and the partnership is expected to drive costs down and accelerate deployment.

Read the Bloomberg article here.

Chinese Bike Share Startups in North America

March 26th, 2017 Posted by China Business Development No Comment yet

Can Chinese innovators crack the unprofitable bike share market in North America? Chinese unicorns Ofo Inc and Beijing Mobike Technology Co both have over a million bicycles in their fleets and plan to introduce their  “dockless” solution to select cities in the United States.

Read the WSJ article here.

Billionaire Duan Yongping Takes On Apple and Wins in China

March 21st, 2017 Posted by China Business Development No Comment yet

Duan Yongping founded Vivo and Oppo, two mobile phone startups that shipped 147m handsets in 2016 compared to Apple’s 45m units in China. Referring to Apple, Duan commented, “They’re maybe too stubborn sometimes. They made a lot of great things, like their operating system, but we surpass them in other areas.”

Read the Bloomberg article here.

 

JD Capital $200m Fund for Overseas M&A

March 16th, 2017 Posted by Capital Markets, China Business Development, M&A No Comment yet

China’s JD Capital intends to raise at least US$200m to acquire North American companies to merge with its portfolio companies in China. With 28b RMB in assets under management, JD Capital is known for investing in hundreds of companies in traditional industries like manufacturing chemicals, and industrials and taking them public on the new ChiNext and NEEQ exchanges.

Read the Information article here.

 

 

How Chinese Companies Finance Overseas M&A

March 5th, 2017 Posted by Capital Markets, China Business Development, M&A No Comment yet

Wall Street Journal reporter Anjani Trevedi takes a closer look at how China’s HNA Group, a recent buyer of stakes in Hilton Worldwide Holdings, Skybridge Capital, and a host of other assets, has used credit-enhanced debt offerings to deploy capital overseas. In a typical transaction, a Chinese bank will provide standby letters of credit to back loans issued by Chinese buyers. The credit line, which is in turn backed by RMB cash deposits in China, is then used as collateral by the buyer to borrow USD offshore.

Read the WSJ article here.