TCOM - Trip.com Group Limited

NasdaqGS - NasdaqGS Real-time price. Currency in USD
30.34
+0.19 (+0.65%)
As of 3:58PM EST. Market open.
Stock chart is not supported by your current browser
Previous close30.15
Open30.56
Bid30.36 x 800
Ask30.37 x 800
Day's range30.25 - 31.25
52-week range28.55 - 46.50
Volume4,315,312
Avg. volume5,589,519
Market cap17.856B
Beta (5Y monthly)1.75
PE ratio (TTM)N/A
EPS (TTM)N/A
Earnings date17 Mar 2020
Forward dividend & yieldN/A (N/A)
Ex-dividend date09 Jun 2008
1y target est268.29
  • Business Wire

    The Economic Cost of Quarantine

    As efforts to contain the COVID-19 epidemic continue, it is important to give consideration to the implications of the response for the economy and life expectancy.

  • Tripadvisor Forecasts Experiences and Dining Will Eclipse Hotel Revenue in 2020
    Skift

    Tripadvisor Forecasts Experiences and Dining Will Eclipse Hotel Revenue in 2020

    If everything goes as Tripadvisor hopes in 2020, it will be a landmark year because for the first time its experiences and dining revenue would surpass that of the company's until-now core hotel metasearch business. That's the target and it's part of Tripadvisor's goal, as articulated in its fourth quarter earnings call Thursday. The ambition […]

  • Trip.com Seeks $1.2 Billion Loan in Funding Test Amid Outbreak
    Bloomberg

    Trip.com Seeks $1.2 Billion Loan in Funding Test Amid Outbreak

    (Bloomberg) -- Sign up for Next China, a weekly email on where the nation stands now and where it's going next.Trip.com Group Ltd., China’s biggest online travel service provider, is seeking to raise a $1.2 billion loan in a test of investor risk appetite as the leisure industry reels from the coronavirus outbreak.The company is in talks with international and Chinese lenders for the facility, according to people familiar with the matter. The loan is for refinancing and working capital, said the people who are not authorized to speak publicly and asked not to be identified. Trip.com declined to comment in an emailed statement.The loan comes amid challenges to its business following the new coronavirus that has claimed over 1,300 lives. More than 50 countries or territories have imposed travel restrictions and tightened visa requirements to contain the spread of the disease, according to the International Air Transport Association.Trip.com’s last loan was in July 2019 when it signed a $2 billion three-year facility, according to Bloomberg-compiled data.\--With assistance from Lulu Yilun Chen.To contact the reporter on this story: Apple Lam in Hong Kong at alam271@bloomberg.netTo contact the editors responsible for this story: Chan Tien Hin at thchan@bloomberg.net, Finbarr FlynnFor 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.

  • Airbnb Extends Beijing Suspension to May to Fight Virus Outbreak
    Bloomberg

    Airbnb Extends Beijing Suspension to May to Fight Virus Outbreak

    (Bloomberg) -- Airbnb Inc. has extended a freeze on all Beijing business by two months, heeding tightened local regulations aimed at curbing the coronavirus epidemic.It’s now suspending check-ins at all of its listings in the Chinese capital until April 30, instead of the end of February, the San Francisco-based company said in a messaged statement. The U.S. startup has offered refunds to those affected or that cancel their bookings.Airbnb counts on China’s growing middle class to deliver a large portion of its future growth. Health authorities there are trying to gauge whether the world’s largest known quarantine effort has been effective in containing the pneumonia-causing virus in central Hubei province, a landlocked region of 60 million people. But infections are rising elsewhere in the country, and Beijing is one of its most popular tourist destinations.It’s not yet clear whether others in the home-sharing industry, including Trip.com Group Ltd.-backed Tujia, will follow suit. Xiaozhu said this week it will shut down all rentals in Beijing for February and issue full refunds for existing bookings while also waiving landlord commission fees. In its mobile app, Trip.com said “some” apartment bookings in Beijing for the month have been suspended and recommended users turn to hotels instead.“In accordance with the guidance from local authorities for the short term rental industry during this public health emergency, bookings of all listings in Beijing with check-in from 7 February 2020 to 30 April 2020 have been suspended,” Airbnb said in its statement Wednesday. “This measure is based on official guidance that applies to all companies in the short term rental industry operating in Beijing.”Read more: Airbnb Freezes Beijing Check-Ins Till March to Curb VirusTo contact Bloomberg News staff for this story: Zheping Huang in Hong Kong at zhuang245@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Vlad SavovFor 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.

  • Bloomberg

    Alibaba’s China Disconnect Cuts Hong Kong Dead

    (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 ngopalan3@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis 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.

  • What Will Be the Blowback From China to Countries That Banned Its Travelers During Virus Outbreak?
    Skift

    What Will Be the Blowback From China to Countries That Banned Its Travelers During Virus Outbreak?

    "Chinese tourists will once again be one of the most welcome groups of guests while academic and commercial partnerships between China and the world will become even closer. The choices made by governments in the face of the coronavirus emergency may very well determine their prospects for cooperation with China in the future." So wrote […]

  • Airbnb Freezes Beijing Check-Ins Until March to Curb Coronavirus
    Bloomberg

    Airbnb Freezes Beijing Check-Ins Until March to Curb Coronavirus

    (Bloomberg) -- Airbnb Inc. is suspending check-ins at all of its Beijing listings until March to comply with local regulations intended to curb the coronavirus outbreak that’s spreading across China.The San Francisco-based company said in a statement that it will offer refunds to all those affected or that cancel their bookings. This is in adherence to municipal policy, Airbnb said, though the Beijing government’s press office didn’t answer calls from Bloomberg News seeking comment.Local rival Xiaozhu will match Airbnb’s actions, shutting down all rentals in Beijing for February and issuing full refunds for existing bookings while also waiving landlord commission fees, it said in a statement. It’s not yet clear whether others in the home-sharing industry, including Trip.com Group Ltd.-backed Tujia, are following suit. In its mobile app, Trip.com said “some” apartment bookings in Beijing have been suspended and recommended users turn to hotels instead.“In light of the novel coronavirus outbreak and guidance from local authorities for the short-term rental industry during this public health emergency, bookings of all listings in Beijing with check-in from 7 February 2020 to 29 February 2020 have been suspended,” Airbnb said in its statement. The company “appreciates that disease control efforts are causing overall travel disruptions that also affect our community of guests and hosts.”Read more: Airbnb Hosts in Coronavirus Epicenter Stay Open for Business (1)Health authorities in China and around the world are trying to gauge whether the world’s largest known quarantine effort has been effective in containing the pneumonia-causing virus in central Hubei province, a landlocked region of 60 million people. Infections are rising elsewhere in the country and Beijing is one of its most popular tourist destinations. As of Sunday, Beijing’s health authorities have confirmed 337 cases, including two deaths.Read more: Coronavirus May Infect up to 500,000 in Wuhan Before It Peaks(Updates with Xiaozhu suspension plan in third paragraph)To contact Bloomberg News staff for this story: Gao Yuan in Beijing at ygao199@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, Vlad SavovFor 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.

  • A Look At The Intrinsic Value Of Trip.com Group Limited (NASDAQ:TCOM)
    Simply Wall St.

    A Look At The Intrinsic Value Of Trip.com Group Limited (NASDAQ:TCOM)

    In this article we are going to estimate the intrinsic value of Trip.com Group Limited (NASDAQ:TCOM) by taking the...

  • Royal Caribbean's (RCL) Shares Jump 5% on Q4 Earnings Beat
    Zacks

    Royal Caribbean's (RCL) Shares Jump 5% on Q4 Earnings Beat

    Royal Caribbean Cruises' (RCL) fourth-quarter 2019 earnings are hurt by the cancellation of sailings to Cuba and disruption generated by Hurricane Dorian, offset by higher contribution from joint ventures.

  • Sony (SNE) Q3 Earnings & Revenues Rise Y/Y, FY19 View Up
    Zacks

    Sony (SNE) Q3 Earnings & Revenues Rise Y/Y, FY19 View Up

    Sony's (SNE) third-quarter fiscal 2019 results reflect significant increase in Financial Services and Imaging & Sensing Solutions segment sales, and decrease in Game & Network Services segment sales.

  • Business Wire

    What US Influenza Data Tells Us About the 2019 Novel Coronavirus - a Brief Version of James Liang and Huang Wenzheng's Op-Ed

    In response to the outbreak of 2019 novel coronavirus (2019-nCoV), James Liang and Huang Wenzheng released a research paper comparing the data presented in the current novel coronavirus with the influenza in the United States over the past nine years. Author: James Liang, Co-founder and Executive Chairman of the Board Trip.com Group Ltd. (Nasdaq: TCOM), and Huang Wenzheng, Researcher of CCG (Center for China and Globalization) * The opinions expressed here are entirely their own. The Trip.com Group Ltd. was not involved in its creation.

  • It’s Hard to Pull Off 3 Billion Trips During a Pandemic
    Bloomberg

    It’s Hard to Pull Off 3 Billion Trips During a Pandemic

    (Bloomberg Opinion) -- There’s never a good time for the outbreak of a deadly virus, but this one is particularly bad. China’s Lunar New Year is often dubbed the world’s largest migration, a stretch of weeks when hundreds of millions of people visit their families. Before the pandemic started spreading, officials were expecting 3 billion airplane and train trips during the holiday rush between Jan. 10 and Feb. 18. Millions more have gone abroad.Little wonder, then, that the travel industry is suffering. With the death toll up to 25 and more than 800 infected, tourists are staying home. Some have no choice: The government has put seven cities on lockdown and airports are stepping up screening measures. On Friday, China ordered all travel agencies to suspend sales of domestic and international tours.Shares of China Southern Airlines Co. – the carrier most exposed to the site of the outbreak – have slid 14% since the second death from the virus was confirmed, while Cathay Pacific Airways Ltd., which said it would waive fees for tickets to and from the mainland, has slumped 7.6%. The country’s largest online travel agency, Trip.com Group Ltd. has tumbled 12%.If the SARS outbreak of 2003 is any guide, things could get even worse. In May of that year, Chinese air passenger traffic fell 71%, according to Goldman Sachs Group Inc. Bernstein Research cited concerns of a repeat outcome when it cut Trip.com’s rating one notch to “market perform” earlier this week. The Nasdaq-listed company, which changed its name from Ctrip.com last year, issued a statement Thursday saying it would refund travelers who’ve been diagnosed, or those in close touch with them.The hope is that, like SARS, the turbulence will eventually pass. For Trip.com, however, the business challenges are bigger than the coronavirus. In recent years, the company has struggled to keep up with competition from digital rivals like Meituan Dianping and Alibaba Group Holding Ltd.Few travel companies have benefited more from China’s transition to the world’s biggest source of tourists in 2012. Despite the trade war and Hong Kong’s protests,(3) China’s outbound tourism numbers have continued to rise. According to Euromonitor International, 108.39 million overseas trips were taken last year, a 9.5% gain, after surging 11.7% in 2018. Trip.com now makes up a quarter of its total sales from outbound Chinese visitors, from under 15% five years ago, reckons Bloomberg Intelligence analyst Vey-Sern Ling.But the hotel-booking sector is getting crowded. Meituan Dianping has recently overtaken Trip.com as China’s top site, just five years after the food-delivery giant started dabbling in the business. Meituan now has 47% of China's market, ahead of Trip.com, with 34%, according to TrustData. Now, Meituan is moving further into Trip.com’s territory with luxury hotels, while chains like Marriott International Inc. are pushing for direct booking on their China websites. Alibaba said part of the $13 billion it raised from its Hong Kong listing in November would go toward fliggy.com, its online travel group site.If there’s any lesson to be gleaned from all this, it’s the benefit of diversification. While China’s superapp business model has arched some eyebrows (how can one company possibly provide digital payments, taxis, food delivery, massages and pet grooming?) there’s a decent case to be made for having some crisis-proof subsidiaries. Consider AirAsia Group Bhd, Southeast Asia's most successful budget airline, which is setting up a regional fast food franchise.Plans could already be underway for Trip.com to diversify its investor base, with the company discussing plans to go public in Hong Kong, Bloomberg News reported earlier this month. Here, Alibaba is a successful model. With its second listing, the company is now closer to its Chinese end-users, and Alibaba’s New York-listed stock has soared 14%.The four-month span of the SARS outbreak shows how quickly things can turn around: While China’s growth dipped in the second quarter of 2003, it swiftly resumed in the following months. Given how much more important the Chinese shopper is to the economy now, the damage could be more painful. A 10% fall in discretionary transportation and entertainment could shave 1.2 percentage points from China’s growth domestic product, according to “back of the envelope” estimates by S&P Global Inc. Hong Kong retailers and restaurants, just coming off the pain of last year's protests, were already suffering. For those companies that enjoyed the fast-rising Chinese consumer, it may be time to devise a plan B. (Updates to include China’s measures to suspend travel-agency sales.)(1) Hong Kong, followed by Macau, are the top two destinations of mainland Chinese travelers.To contact the author of this story: Nisha Gopalan at ngopalan3@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis 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.

  • Hong Kong Risks Squandering Its Alibaba Dividend
    Bloomberg

    Hong Kong Risks Squandering Its Alibaba Dividend

    (Bloomberg Opinion) -- Hong Kong is missing an opportunity to displace the U.S. as an offshore listing venue for Chinese companies by keeping trading fees too high. Alibaba Group Holding Ltd.’s $11 billion offering in November showed the potential for the city’s stock exchange to attract U.S.-listed mainland enterprises amid an unsettled trade relationship between the two largest economies. Relatively expensive costs threaten to undermine that appeal.Investors get more for their dollar when they trade on the New York Stock Exchange. In Hong Kong, bid-ask spreads are wider and minimum investment requirements are higher. That increases the chance of so-called slippage, when there is a difference between the expected price of a trade and the level at which it is actually executed. With zero stamp duty and lower minimum trade requirements, the NYSE has a more favorable environment for active investors.Alibaba’s Hong Kong trading volume has slumped since the internet giant made its debut on the local exchange. On Nov. 26, shares valued at the equivalent of about $1.79 billion changed hands. Since mid-December, that figure has dropped to a daily average of about $322 million. The Hong Kong listing has made no dent in Alibaba’s stock trading in New York, where volume has averaged $3.2 billion since late November.To be sure, trading costs are by no means the only factor — or even the main one — in deciding where to buy and sell. To begin with, the U.S. is a more deep and liquid market. It has other advantages, including a more active and developed options market that gives traders more ways to hedge or speculate on stocks. That said, Hong Kong could do a better job of rolling out the welcome mat.Since losing out to New York for Alibaba’s record $25 billion initial public offering in 2014, Hong Kong Exchanges & Clearing Ltd. has made a number of rule changes to enhance its viability as a platform for technology startups from China and elsewhere. In April 2018, the exchange amended its provisions to admit companies with dual-class shares. Smartphone maker Xiaomi Corp.  and internet services company Meituan Dianping listed soon after, demonstrating that when HKEX makes smart decisions, the exchange benefits.More U.S.-traded Chinese companies are looking at Hong Kong for potential secondary listings. They include travel services provider Trip.com Group Ltd., formerly known as Ctrip; game and website operator Netease Inc.; web search provider Baidu Inc.; and e-commerce giant JD.com Inc. The way is open for Hong Kong to create a new offshore ecosystem for U.S.-listed Chinese companies seeking better positioning for the mainland while hedging their bets against a renewed deterioration in the U.S.-China relationship after the phase one agreement was signed this month.It makes little sense to squander this opportunity by maintaining trading costs that are a major barrier to entry. The Hong Kong government and the exchange must work together to make dual listing opportunities both beneficial and attractive to companies while encouraging investors to trade here. However, HKEX regulators seem to have their heads in the sand when it comes to reducing fees and the minimum buy-in to entice more companies. That may be a reflection of its monopoly status: Unlike the NYSE, which must compete with Nasdaq, HKEX has no local rival.Reducing fees would lower the barrier to entry for active investors and increase trading volume. As I wrote in September, cutting stamp duty would help improve liquidity and make Hong Kong stocks more attractive to retail and institutional investors. The ripple effect from this would further strengthen Hong Kong’s position as a global financial center. It’s time for the government and exchange to look beyond the immediate impact of reduced revenue and consider the long term.  To contact the author of this story: Ronald W. Chan at chartwellhk@bloomberg.netTo contact the editor responsible for this story: Matthew Brooker at mbrooker1@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Ronald W. Chan is the founder and CIO of Chartwell Capital in Hong Kong. He is the author of “The Value Investors” and “Behind the Berkshire Hathaway Curtain.”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.

  • Carnival's (CCL) Brands Plan to Launch Four Ships in 2020
    Zacks

    Carnival's (CCL) Brands Plan to Launch Four Ships in 2020

    Launching new ships is part of Carnival's (CCL) long-term strategy to build state-of-the-art vessels that aid in providing guests with a remarkable vacation experience at an exceptional value.

  • Intrepid Partners With Ctrip to Popularize Green Trips in China
    Skift

    Intrepid Partners With Ctrip to Popularize Green Trips in China

    Intrepid Group is making its biggest push ever for a slice of China’s outbound market by partnering Trip.com Group to offer sustainable travel to Chinese travelers. Just a few years ago trips that are purposeful, responsible, experiential — and other such sustainablespeak that defines Intrepid journeys — might be largely met with puzzlement in China. […]

  • Trip.com Group Limited’s (NASDAQ:TCOM) Investment Returns Are Lagging Its Industry
    Simply Wall St.

    Trip.com Group Limited’s (NASDAQ:TCOM) Investment Returns Are Lagging Its Industry

    Today we'll evaluate Trip.com Group Limited (NASDAQ:TCOM) to determine whether it could have potential as an...

  • Planet Fitness on Expansion Spree, Opens 2000th Store in CO
    Zacks

    Planet Fitness on Expansion Spree, Opens 2000th Store in CO

    Planet Fitness (PLNT) continues to focus on expansions. The company launches its 2000th store in Colorado Springs.

  • Hong Kong Bourse Discusses New Listings With Ctrip, Netease
    Bloomberg

    Hong Kong Bourse Discusses New Listings With Ctrip, Netease

    (Bloomberg) -- Hong Kong Exchanges & Clearing Ltd. is discussing secondary listings with Chinese technology companies including Trip.com Group Ltd. and Netease Inc. after Alibaba raised $13 billion in its 2019 share offering in the city, according to people familiar with the matter.Bourse officials have held follow-up talks with the two U.S.-listed firms about the possibility of a secondary share sale, the people said, requesting not to be named because the matter is private. The discussions are preliminary and subject to change, they added.Hong Kong Exchanges & Clearing Ltd. has said it’s seeing a spike in inquiries about secondary listings from Chinese firms. The interest comes at a time when U.S. scrutiny of Chinese companies has intensified. A decision to proceed would see China’s biggest online travel service provider and second-biggest gaming company -- with a combined market value of about $60 billion -- follow in the footsteps of Alibaba Group Holding Ltd., which last year pulled off the financial hub’s largest equity offering since 2010.Hong Kong Exchanges’ shares rose 2.9% Thursday, their biggest gain in nearly four months. Trip.com, known also as Ctrip, climbed 10.2% to mark its biggest rise since March. And Netease stock surged 7.2%, the most since August, helped by a rally in Chinese technology stocks listed in New York.Read more: China Tech Inc. Straps in for Turbulence After a Wild 2019Ctrip and the Hong Kong exchange declined to comment in emailed statements. A Netease representative had no comment when contacted.Alibaba’s share sale marked a triumph for Asia’s largest stock exchange operator, which has lost many of China’s brightest technology stars to U.S. rivals. The city’s bourse introduced new rules to allow dual-class shares after initially resisting such a change, a move that had prompted Alibaba’s decision to debut in New York in 2014.More secondary listings from technology companies would bolster the Hong Kong exchange, which posted its worst profit drop in almost three years in the September quarter. The financial hub has also been shaken by months of anti-government protests, casting uncertainty over its 2020 prospects.Total fundraising from Hong Kong initial public offerings will drop by as much as 27% in 2020 to HK$230 billion ($29.5 billion), PwC estimated on Thursday. About 180 companies may debut, with more “new economy enterprises” to seek listings thanks to rule reforms.“More U.S.-listed Chinese concept stocks will come back to Hong Kong in 2020,” Benson Wong, a partner at PwC, said at a press briefing in Hong Kong. That trend will persist beyond next year, though it will be harder to see offerings on Alibaba’s scale, he added.Why Now, and Why Hong Kong, for Alibaba’s Share Sale?: QuickTakeA secondary offering in Hong Kong would help Chinese tech companies hedge their risks as U.S. tensions simmer. The Donald Trump administration is stepping up scrutiny against Chinese technology players beyond Huawei Technologies Co. Lawmakers have called for curbs on U.S. pension fund investments in the country’s companies.It could also help raise capital to tide them over an economic slowdown and increasing competitive pressure in 2020. Ctrip in particular has about $700 million worth of convertible bonds due in July. Its shares are trading at about $33.50, 38% below the agreed convertible price of $54, according to data compiled by Bloomberg.New tech debutantes like Alibaba will get a boost if they’re added to the benchmark Hang Seng Index and a stock connect program that allows mainland investors to buy shares in Hong Kong. Hang Seng Indexes Co. plans a consultation in the first quarter to discuss a raft of issues, including whether firms with weighted voting rights, like Alibaba, should be eligible for the HSI. Members of the stock connect program require reviews by the China Securities Regulatory Commission, the stock market watchdog.Read more: Alibaba’s Hong Kong Rally Is At Risk From Three Misconceptions(Updates with Ctrip and Netease gains in the fourth paragraph)\--With assistance from Kiuyan Wong and Zheping Huang.To contact the reporter on this story: Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.netTo contact the editors responsible for this story: Candice Zachariahs at czachariahs2@bloomberg.net, Edwin ChanFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • China’s Tech Industry Straps in for More Turbulence After a Wild 2019
    Bloomberg

    China’s Tech Industry Straps in for More Turbulence After a Wild 2019

    (Bloomberg) -- China’s tech industry enters a new year after weathering unprecedented turbulence in 2019, when giants emerged in social media and artificial intelligence only to bear the brunt of Washington’s campaign to contain the world’s No. 2 economy. There’s little reason to think 2020 will be much different given U.S. efforts to hobble Chinese champions from Huawei Technologies Co. to SenseTime Group Ltd. deemed a threat to national security.American lawmakers went after some of the country’s biggest names last year. Foremost among them were smartphone and networking titan Huawei and ByteDance Inc., the Chinese wunderkind that in the span of a few years overturned social media entertainment and drew a billion-plus mostly younger U.S. users to its online video app TikTok. The heightened scrutiny came just as pressure back home intensified.Beijing sought to scrub sensitive content from ByteDance apps and Tencent Holdings Ltd.’s WeChat, while the economy grew at its slowest pace in decades, depressing Alibaba Group Holding Ltd.’s e-commerce business. Investors cooled on the sector with venture capital activity halving -- triggering fears the industry’s heyday is over. That in turn demoralized the country’s already-overworked tech professionals, who rebelled for the first time against the 70-plus hour workweeks that Alibaba-founder Jack Ma labeled the norm.Given Washington’s increasing hostility, China is now even more driven to devise alternatives to foreign technology from AI chips to blockchain solutions while propping up local champions: bad news for the likes of Qualcomm Inc. and Apple Inc. that depend on China for much of their revenue. It’s started to upend a decades-old supply chain centered around China, threatening to split the old world order in two. It’s not just in hardware -- from Russia to Southeast Asia, many governments have begun to co-opt characteristics of the Chinese internet arena, from harsh fake-news laws to censorship and data sovereignty.“This year was perhaps the first year we understand China tech at its most global ever. But it also showed us the specter of it becoming more and more insular,” said Michael Norris, research and strategy manager at Shanghai-based consultancy AgencyChina. “This is bigger than just the U.S., in terms of about assuaging the fears of countries like India that (Chinese) platforms aren’t going to disseminate nude photographs or hate speech.”Here’s what happened:A Capital WinterThe industry’s woes may be best quantified by a plunge in capital flow. The amount of venture money invested plummeted by more than 50% to about $50 billion from a record $112 billion in 2018, when it topped the U.S., according to the market research firm Preqin. VC funding dropped in the U.S. too, but only slightly. China birthed only 15 unicorns, or startups worth at least $1 billion, down from 35 the year before, according to CB Insights.The plummet coincided with a loss of confidence in some of the industry’s marquee names, exemplified by the rocky debuts of WeWork and Uber Technologies Inc. While Alibaba raised $13 billion in a milestone Hong Kong offering, smaller names like SenseTime and Full Truck Alliance struggled to raise capital. “The power of the mobile revolution is coming to an end. Globally, we are seeking what comes next,” said Kai-Fu Lee, founder of Sinovation Ventures.The startup and VC industry is likely headed for a shakeout. Many investments from the past bubbly years aren’t panning out, with startups struggling to live up to their valuations. Fundraising by China-focused venture firms fell by about 50% to about $13 billion, according to Preqin.One option for capital-raising may be the Alibaba route, selling shares via a secondary listing in Hong Kong. The city’s exchange is discussing that possibility with Chinese companies including Trip.com Group Ltd. and Netease Inc., according to people familiar with the matter.Huawei: Down But Not OutThe year kicked off with Chief Financial Officer Meng Wanzhou under home arrest in Vancouver, fighting extradition to the U.S. Then the Trump administration tightened its grip on China’s largest tech company in May, banning Huawei from buying some components and software from American tech giants including Intel Corp. and Google. Throughout 2019, Washington pushed allies to pass on purchasing Huawei-made fifth-generation telecom gear, accusing the company of aiding Chinese espionage. Huawei’s disputed such claims but that didn’t stop Japan, Australia and New Zealand from blocking Huawei from 5G projects.The most immediate repercussions lie with its smartphone business. New Huawei models introduced on overseas markets will be devoid of must-have Android apps like Google Maps and Gmail. In response, Huawei stepped up efforts to become more self-reliant, mobilizing its 190,000 employees to develop in-house alternatives and unveiling a potential Android surrogate dubbed Harmony OS.The tumult forced reclusive Huawei billionaire founder Ren Zhengfei into the media spotlight to defend his company, lash out at the U.S. and expound on his company’s efforts to lead the coming 5G revolution. Huawei may have survived the first wave but it’s likely that the real pain will come in 2020.Stars Are BornChina’s tech boom over the past decade birthed twin giants Alibaba and Tencent, a duo that effectively controls almost every aspect of the country’s internet through their sprawling business empires and vast investment portfolios. But from 2019, a new generation of tech darlings rose to the fore and now challenge their forebears.Foremost among them is ByteDance, the world’s most valuable startup. After its first breakout hit, news app Toutiao, the Chinese company is rocking youths the world over with TikTok, an app known for everything from teenage twerking to singing gummy bears. It’s been downloaded about 1.45 billion times since launching, but has become a lightning rod for criticism as tensions rise between the U.S and China. From Facebook Inc. chief Mark Zuckerberg to a growing coterie of lawmakers, prominent Americans warn that user data may wind up in Chinese government hands. ByteDance has repeatedly denied that could happen.The year will see ByteDance try to extend its tentacles into a panoply of fields. It’s testing a paid music app in emerging markets to challenge the likes of Apple Music and Spotify. It’s looking to make video games to tackle Tencent on its home turf. Other rising contenders include Tencent-backed super app Meituan and AI leader SenseTime.Meituan, which displaced Baidu Inc. as China’s third most valuable tech firm last year, will continue to battle Alibaba in nascent areas from food delivery to online travel. For SenseTime and fellow domestic AI pioneers such as Megvii Technology Ltd., the challenge will be grappling with U.S. sanctions that threaten to crimp their fledgling businesses.“China tech is going global, going mainstream and shaking things up more than ever,” said Rebecca Fannin, founder of technology consultancy Silicon Dragon. “More U.S. startups will follow China business models.”Dismantling the Old World OrderChina’s position as factory for the world of technology is in jeopardy. The (mainly Taiwanese) assemblers of the world’s electronics are exploring options beyond China to varying degrees. From Inventec Corp. to Foxconn Technology Group and Quanta Computer Inc., the makers of everything from iPhones to Dell laptops have either moved production back to Taiwan or to further-flung regions around Asia, seeking to escape U.S. tariffs. The idea is that, even if Washington and Beijing strike a trade deal, diversification is essential in the longer term given tensions are unlikely to subside and labor costs will rise.Even leading Chinese hardware suppliers recognize the risks. Luxshare Precision Industry Co. has invested in Vietnam and established a unit in India, while Goertek Inc. has begun making Apple’s popular AirPods earbuds in Vietnam. Taken together, the collective exodus spells the start of the end of a system that’s served the world’s leading electronics brands well since the 1980s.Workers’ Woes MountLast year forced Chinese tech workers to come to terms with the new reality. Many had taken jobs with startups in the hope of cashing in when they debut or get bought. But as that deal-making streak cooled, the prospect of working long hours -- 996, or 9 a.m. to 9 p.m., six days a week -- lost much of its appeal. In March, Chinese programmers on GitHub put together a list of companies known for short-changing their employees on overtime. That post spurred a greater awareness of the human cost of China’s tech boom. In December, Huawei drew widespread condemnation when a former employee who had been detained for 251 days after the company reported him to police for alleged extortion was released without charge.One thing’s clear: the Chinese tech arena, long regarded as an alternate reality to a U.S. app-dominated world, will draw further away from its American counterpart. And some of its biggest players will seek to extend their influence overseas, as they’ve done from Africa to Southeast Asia.“What’s changed is the trade war, the talk of decoupling,” said Paul Triolo, head of global technology policy at Eurasia Group. “This has really galvanized the authorities. It doesn’t necessarily mean that they will be more successful. But they’re determined.”(Updates with Hong Kong listings in the ninth paragraph)\--With assistance from Edwin Chan and Lulu Yilun Chen.To contact the reporters on this story: Colum Murphy in Beijing at cmurphy270@bloomberg.net;Gao Yuan in Beijing at ygao199@bloomberg.net;Debby Wu in Taipei at dwu278@bloomberg.net;Zheping Huang in Hong Kong at zhuang245@bloomberg.netTo contact the editors responsible for this story: Peter Elstrom at pelstrom@bloomberg.net, Edwin Chan, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

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