• JD Seeks $4.1 Billion in Year’s Biggest Hong Kong Listing
    Bloomberg

    JD Seeks $4.1 Billion in Year’s Biggest Hong Kong Listing

    (Bloomberg) -- China’s No. 2 online retailer JD.com Inc. is seeking to raise as much as HK$31.4 billion ($4.05 billion) for a second listing in Hong Kong, as the Nasdaq-listed firm seeks a foothold closer to home amid rising U.S.-China tensions.JD.com is offering 133 million new shares at as much as HK$236 each, according to terms of the deal obtained by Bloomberg News. The maximum price represents a 7.8% premium to JD.com’s Thursday closing price in New York.JD.com’s share sale is set to be the largest in Hong Kong this year, coming hot on the heels of NetEase Inc.’s $2.7 billion offering in the city.Escalating tensions between Washington and Beijing are increasing risks for Chinese companies like JD and NetEase that are seeking to broaden their investor base. There have also been fears over the impact of national security legislation set to be imposed on Hong Kong, including the resumption of protests in the city.The debuts would follow Alibaba Group Holding Ltd.’s $13 billion stock sale last year, hailed as a homecoming for Chinese companies and a win for Hong Kong stock exchange. The city lost many of the largest tech corporations to U.S. bourses because it didn’t allow dual-class share voting at the time -- a requirement that’s since been relaxed.JD.com’s Hong Kong share sale represents about 4.3% of its total shares outstanding before an over-allotment option. The company is taking orders from institutional investors from Friday and will kick off retail investor subscription on June 8, according to the terms.It aims to price the offering on June 11 and to begin trading on June 18. JD.com plans to use the proceeds for key supply chain-based technology initiatives.Bank of America Corp., UBS Group AG and CLSA Ltd. are joint sponsors of JD’s Hong Kong share sale.(Updates with more details from sixth paragraph.)For 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.

  • Jaguar Land Rover raises $705 million loan from Chinese banks
    Reuters

    Jaguar Land Rover raises $705 million loan from Chinese banks

    Jaguar Land Rover (JLR), owned by India's Tata Motors, has entered into agreements with lenders in China for a secured term loan facility of 5 billion yuan ($704.50 million), marking its first debt financing in China, it said. Arthur Yu, JLR's vice president and China chief financial officer, said the Chinese banks that would provide it with the three-year revolving loan include Bank of China, ICBC, China Construction Bank, Bank of Communications and Shanghai Pudong Development Bank.

  • Coronavirus: Online sales hit decade high even as confidence plummets
    Yahoo Finance UK

    Coronavirus: Online sales hit decade high even as confidence plummets

    Surveys from BDO and GfK show online sales are jumping even as overall spending and consumer confidence dives.

  • Bloomberg

    NetEase Is Said to Raise $2.7 Billion in Hong Kong Listing

    (Bloomberg) -- NetEase Inc. raised about HK$21 billion ($2.7 billion) in its Hong Kong stock offering, people with knowledge of the matter said, as Chinese companies grapple with rising tensions between Beijing and Washington.China’s second-largest gaming company priced 171 million new shares at HK$123 each, equivalent to a 2% discount to its Thursday closing price on Nasdaq, said the people, who asked not to be identified as the information is private. That comes after investors subscribed for many times more than the total stock offered. The company earlier set a maximum price of HK$126. The shares are expected to start trading in Hong Kong on June 11.The U.S.-listed internet giant makes its debut in Hong Kong as tensions between Washington and Beijing threaten to curtail Chinese companies’ access to U.S. capital markets, particularly after once high-flying Luckin Coffee Inc. crashed amid an accounting scandal. It’s also a victory for Hong Kong, coming on the heels of Alibaba Group Holding Ltd.’s $13 billion share sale and the passing of a national security law that critics fear could jeopardize its status as a financial hub. No. 2 Chinese online retailer JD.com Inc. plans to start taking orders on Friday for its listing in the city .NetEase is a distant second to Tencent Holdings Ltd. in the world’s largest video game market. The creator of popular franchises like Fantasy Westward Journey and Onmyoji reported a 14% rise in online games revenue for the coronavirus-stricken March quarter, less than half of the pace Tencent’s gaming division managed during the same period.Much like Tencent, NetEase is looking globally for the next chapter of growth, teaming up with Japan’s Studio Ghibli and investing in Canadian game creator Behaviour Interactive. After selling its cross-border e-commerce platform Kaola to Alibaba, the 22-year-old company has shifted its focus to music streaming and online learning, despite worsening competition in these areas. NetEase company representatives didn’t immediately respond to a request for comment.China International Capital Corp., Credit Suisse Group AG and JPMorgan Chase and Co. are joint sponsors.(Updates throughout as the deal is priced. An earlier version corrected the currency denomination in first paragraph.)For 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.

  • As coronavirus sinks global demand, China’s exporters go online to tap domestic market
    Reuters

    As coronavirus sinks global demand, China’s exporters go online to tap domestic market

    YIWU, China/SHANGHAI (Reuters) - At this time of the year, Deng Jinling would normally be welcoming foreign buyers to her vacuum flask showroom or cramming her goods into containers to be shipped to customers in the United States. Now desperate exporters are turning to the domestic market, and they are seeking out e-commerce and even social media mobile apps to lift their fortunes. Stuck with unsold stock and cancelled export orders, Deng has laid off both her sales staff and 80 factory workers, and has since March begun seeking local customers on Chinese e-commerce platforms, paying livestreaming stars to market her products.

  • Reuters

    NetEase raises at least $2.7 billion in Hong Kong, more listings likely

    Chinese online gaming firm NetEase raised at least $2.7 billion in a Hong Kong secondary offering, two sources said on Friday, amid doubts that mainland firms can list in New York as Sino-U.S. tensions deepen. NetEase's deal, the second after Alibaba in 2019, is expected to be one of several large secondary deals in Hong Kong this year. The Hong Kong price is equivalent to $396.70 for NetEase's U.S.-listed shares which is a 2% discount to the stock's last closing price of $405.01 on Thursday.

  • Google Search a Target of U.S. Antitrust Probes, Rival Says
    Bloomberg

    Google Search a Target of U.S. Antitrust Probes, Rival Says

    (Bloomberg) -- U.S. federal and state authorities are asking detailed questions about how to limit Google’s power in the online search market as part of their antitrust investigations into the tech giant, according to rival DuckDuckGo Inc.Gabriel Weinberg, chief executive officer of the privacy-focused search engine, said the company has spoken with state regulators, and talked with the U.S. Justice Department as recently as a few weeks ago.Justice Department officials and state attorneys general asked the company about requiring Google to give consumers alternatives to its search engine on Android devices and in Google’s Chrome web browser, Weinberg said in an interview.“We’ve been talking to all of them about search and all of them have asked us detailed search questions,” he added.Weinberg’s comments shine a light into how the inquiry is examining Google’s core business -- online search. Bloomberg has reported that the Justice Department and Texas are already examining Google’s dominance of the digital advertising market. The Justice Department and a coalition of states led by Texas Attorney General Ken Paxton have been investigating the company for a year, and the DOJ has begun drafting a lawsuit, which could be filed in the coming months. It would kick off one of the most significant antitrust cases in the U.S. since the government sued Microsoft Corp. in 1998.The investigations have been wide-ranging and are looking into various parts of Google’s business. States including Utah and Iowa are focusing on search, according to people familiar with the matter. Texas is looking at the digital ad market and related technology.Google handles the majority of online searches in the U.S., with Microsoft’s Bing, DuckDuckGo and other providers trailing far behind. Google Search is free for users, but the company’s lead helps it charge thousands of businesses high prices for ads that run above the free web listings in results. Last year, that business generated almost $100 billion in revenue.Read more: Google Search Dominance Has Businesses Paying for Their Name“We continue to engage with the ongoing investigations led by the Department of Justice and Attorney General Paxton, and we don’t have any updates or comments on speculation,” a Google spokeswoman said. In the past, the company has said that online competition is just a click away.The Federal Trade Commission previously investigated whether Google stifled competition in the market for online search advertising, but it closed the probe in 2013 after the company agreed to relatively minor changes. However, portions of communications between FTC commissioners and staff later showed that staffers recommended bringing an antitrust lawsuit against Google.Read more: Google Should Be Afraid of Latest U.S. ScrutinyWeinberg said the questions he has fielded recently about requiring Google to present users of its tech alternatives to its own search engine suggest that’s something the government could include in a possible future settlement.“That’s one direction we think has a decent probability,” he added. The Justice Department declined to comment. Attorneys general in Utah and Iowa didn’t respond to requests for comment.In Europe, Google was fined a record $5 billion for antitrust violations in 2018. As part of that ruling, the company is required to give consumers using phones that run its Android operating system a choice of different search engines and web browsers. Competing services must bid in an auction to be included in a “choice screen.”“Could this be a precursor to similar changes in the U.S.?” Mark Shmulik, Toni Sacconaghi and other analysts at Sanford C. Bernstein, wrote in a note to investors earlier this week.Europe’s remedy has gone through various iterations and some rivals have argued that having to pay to be included in the choice screen is unfair.Read more: Google App Prompts Watched ‘Very Very Closely’ by EU’s VestagerEcosia, a not-for-profit search engine based in Germany, boycotted the auction. DuckDuckGo participated in the most recent auction, but said it may not be able to compete if prices rise.“This auction remedy, proposed by Google, was constructed to make Google money, not to provide meaningful consumer choice,” DuckDuckGo said in a blog post last week.It suggested scrapping the auction and said that an unpaid “search preference menu” has increased competition already in Russia. In 2010, Microsoft created a successful browser preference menu without an auction where the top five web browsers by market share appeared randomly, DuckDuckGo said.“While our view is that users are unlikely to switch search engines, Yandex grew their search engine share by 2,000 basis points to 58% in three years following a similar ruling in Russia,” Bernstein’s Shmulik wrote in the recent Bernstein note to investors.If the U.S. incorporates these suggestions, it could bypass Europe as the most successful regulator of Alphabet Inc.’s Google, Weinberg said.“The U.S. gets criticized for being behind Europe but in reality what’s happened in Europe hasn’t worked,” the CEO added. “The U.S. not only can do it right from the start but has the opportunity to leapfrog the EU.”(Updates with analyst comment in 13th paragraph.)For 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.

  • The Zacks Analyst Blog Highlights: Alibaba, UnitedHealth, Merck, PetroChina and 3M
    Zacks

    The Zacks Analyst Blog Highlights: Alibaba, UnitedHealth, Merck, PetroChina and 3M

    The Zacks Analyst Blog Highlights: Alibaba, UnitedHealth, Merck, PetroChina and 3M

  • Stocks slide even as ECB fires 'bazooka'
    Yahoo Finance UK

    Stocks slide even as ECB fires 'bazooka'

    The ECB is widely expected to announced up to €700bn in additional stimulus to support the eurozone economy.

  • GBP/USD Price Forecast – British Pound Pulling Back From 200 Day EMA
    FX Empire

    GBP/USD Price Forecast – British Pound Pulling Back From 200 Day EMA

    The British pound has pulled back a bit during the trading session on Thursday, as the 200 day EMA has come into play. The 1.25 level did offer a bit of support.

  • 4 Top-Ranked Picks Using DuPont Analysis for Solid Returns
    Zacks

    4 Top-Ranked Picks Using DuPont Analysis for Solid Returns

    Have more faith in DuPont analysis than simple ROE calculation? Bet on these stocks.

  • TheStreet.com

    JD.com to Raise Up to US$4B in Hong Kong Stock Listing

    JD.com, China's No. 2 online retailer, plans to raise as much as US$4.05 billion in a Hong Kong stock listing, a media report says.

  • GOL Discloses Preliminary Traffic Figures for May 2020
    PR Newswire

    GOL Discloses Preliminary Traffic Figures for May 2020

    GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), Brazil's largest domestic airline, announces today preliminary air traffic figures for the month of May 2020.

  • Is Alibaba Stock A Buy Right Now? Here's What Earnings, Chart Show
    Investor's Business Daily

    Is Alibaba Stock A Buy Right Now? Here's What Earnings, Chart Show

    Alibaba stock is an IBD Long-Term Leader with outstanding fundamentals, but does that make the China bellwether a buy right now?

  • TheStreet.com

    U.S.-Listed Chinese Stocks Open Secondary Escape Hatch in Hong Kong

    NetEase is the second Chinese company to launch a secondary listing in Hong Kong. It is unlikely to be the last.

  • These Chinese stocks will be hurt the most if the U.S. forces them to delist
    MarketWatch

    These Chinese stocks will be hurt the most if the U.S. forces them to delist

    U.S. investors will find it tougher and more expensive to buy shares in some Chinese companies if delisting law is passed.

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