Posts in Capital Markets

Bye Bye New York, Hello Shanghai

December 15th, 2015 Posted by Capital Markets, China Business Development No Comment yet

Chinese executives are going home to raise capital. According to a Bloomberg report, the total amount of capital raised by Chinese-domiciled  companies via IPOs on the US exchanges fell 84% in 2015. Here are the numbers:

  • 14 US IPOs with a total value of $666M
  • 531 China IPOs with a total value of $17B

Read the Bloomberg article here.

China’s Big 3 with $80B to Go Shopping

December 10th, 2015 Posted by Capital Markets, China Business Development, M&A No Comment yet

Alibaba, Tencent, and Baidu together have $80B in capital available for acquisitions. With venture financing becoming more difficult in China, BAT are becoming go-to buyers for startups.

Read the Bloomberg article here.

Chinese Cross-Border M&A Up 185%

November 13th, 2015 Posted by Capital Markets, China Business Development, M&A No Comment yet

According to data compiled by Bloomberg, China’s companies have proposed $128.3 billion in acquisitions outside China in 2015. The overseas acquisition spree is driven by a slowing domestic economy, the desire to acquire technology and brands, and supportive capital markets.

Read the Bloomberg article here.

IPO’s in China Are Back

November 11th, 2015 Posted by Capital Markets, China Business Development, M&A No Comment yet

A Chinese investment bank, China International Capital Corp., predicts 300% returns next year when the IPOs resume on the senior Chinese stock exchanges.

Read the Bloomberg article here.

Jury is Out on Baidu O2O Investments

September 14th, 2015 Posted by Capital Markets, China Business Development, Digital Marketing, E-Commerce, M&A No Comment yet

Baidu CEO Robin Li talks about opportunities in connecting consumers to services via Online to Offline initiatives. The company is investing heavily in new growth opportunities in China. “We are actually transforming the company from connecting people with information to connecting people with services,” Li said to reporters.

Western investors remain skeptical and Baidu’s New York-listed ADRs are down 38% year to date.

Read the Bloomberg article here.

Jack Ma Investment Propels HK Pubco 174%

June 4th, 2015 Posted by Capital Markets, China Business Development No Comment yet

An example of Chinese market reaction when Jack Ma and David Yu invest in your company.

Read the full South China Morning Post article here.

 

Chinese Tech Companies Go Shopping Overseas

May 29th, 2015 Posted by Capital Markets, China Business Development, M&A No Comment yet

Flush with capital from success in their home market and a booming stock market, Chinese tech companies are investing overseas to acquire technology, talent, and know-how. Chinese outbound direct investment grew from $2.7 billion in 2002 to $102.9 billion in 2014, according to Chinese Ministry of Commerce data. That’s an incredible 40x increase over a mere 12 years. Data points to consider:

  • Alibaba’s $220 million investment for 20% of mobile video app Tango
  • Baidu’s strategic investment in Uber
  • Tencent’s investments in SnapChat, KakaoTalk, Epic Games, and Riot Games
  • Lenovo’s purchase of IBM’s low-end server business for $2.3 billion
  • Huaxin’s 85% stake in French telecom Alcatel-Lucent

The Chinese technology companies and investment groups we work with are seeking:

  1. Access to new markets overseas.
  2. Useful technologies, capabilities, and talent to help them compete in the domestic China market.
  3. Diversification of their investment portfolios.

Newport’s value proposition is to connect our Chinese tech clients with North American investment targets, assist with transaction execution, and manage portfolio companies once capital is deployed.

Read the full article from Cheung Kong Graduate School of Business Knowledge website.

Tencent Earnings Beat for March 31 Quarter

May 13th, 2015 Posted by Capital Markets, Digital Marketing, Mobile Marketing, Social Marketing No Comment yet

Tencent Holdings, Asia’s biggest technology company, announced a 7% year-on-year rise in quarterly net income. Net income was 6.88bn yuan ($1.1bn) for the period, compared with forecasts of about 6.5bn yuan. Sales grew 22% to 22.4 billion yuan from a year earlier.

Hong Kong listed Tencent competes with e-commerce company Alibaba for mobile users. The company has some of China’s most popular messaging services, including WeChat.

Read the full article on BBC News.

850 million Chinese Online by end-2015

May 12th, 2015 Posted by Capital Markets, China Business Development No Comment yet

This remarkable article provides back story on how a boutique Chinese investment bank convinced Kuadi Dache (backed by Alibaba) and Didi Dache (backed by Tencent) to agree to China’s biggest Internet merger.  The merger created a credible competitor to market-leader Uber.

Among the interesting facts from the story:

  • The Chinese government expects 850m Chinese to be online by the end of this year.
  • Three of China’s richest people are Internet entrepreneurs: Alibaba’s Jack Ma at #2, Tencent’s Ma Huateng at #3, and Baidu’s Robin Li at #4.
  • Beijing, a city with a population of 21.5 million people, is home to 20 tech companies valued at more than $1billion each.

Read the full Bloomberg Markets article here.

Verizon Buys AOL for Advertising Tech

May 12th, 2015 Posted by Capital Markets, Digital Marketing No Comment yet

In a deal valued at $4.4 billion, Verizon purchases mobile and streaming advertising revenue and channels, as well as some key tech enablers.