Finance

Chenghe Group’s Second SPAC Is Pursuing Merger Targets Beyond China

Chenghe Acquisition, a subsidiary of investment holding company Chenghe Group Ltd., says it is not looking to invest in businesses based in mainland China, Hong Kong or Macau Key Takeaways: The fintech-oriented SPAC features several ex-Goldman Sachs bankers in its management team, bringing Asia investment industry know-how It is the second SPAC to be taken public by the Chenghe Group, whose other shell company targets the Greater China healthcare sector By Fai Pui  A Chinese “blank check” company has just listed on the Nasdaq, raising $115 million, with its shares…

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Stodgy Tax Services IPO Looks Like What U.S. Investors Want from China Now

Lichen China’s plan to raise $25 million avoids most of the controversies that have recently plagued U.S.-listed Chinese companies Key Takeaways: Lichen China has filed for an IPO to raise about $25 million, positioning itself as a potential consolidator in China’s vast, but highly fragmented, tax services market Company points out it should be able to avoid many of the recent controversies now dogging U.S.-listed Chinese stocks  By Doug Young If controversy on a number of fronts is keeping Chinese firms away from new listings in New York, the latest…

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Drone Giant DJI’s Russia Halt Pressures Other China Big-Techs

The top maker of pilotless flying devices has suspended its activities in Russia and Ukraine, becoming the first Chinese company to make such a move Key Takeaways: DJI has halted its Russia and Ukraine business and will reassess requirements in different legal jurisdictions, following wide-ranging western sanctions on Russia Other Chinese companies facing similar dilemmas include Alibaba, Lenovo, Huawei and Xiaomi By Tina Yip Russia has quickly become a wasteland for western tech brands, with names like Apple (AAPL.US), HP (HPQ.US) and Dell (DELL.US) all suspending local operations after the…

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Spring REIT Rejigs Financing to Revive Stalled Mall Acquisition

The company has agreed to buy a majority of an upscale shopping mall using debt, after its original plan to finance the deal using equity failed due to a major investor’s objections Key takeaways: •      Spring REIT has agreed to acquire 68% of Huamao Place, an upscale shopping mall in the Guangdong city of Huizhou, for about 1.6 billion yuan •      Spring originally agreed to buy the property in 2018 but the deal collapsed over a dispute with one of its own major investors over the financing By Warren Yang…

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DiDi’s Delisting Plan Just the Start of a Tough Road Ahead

The company often called China’s Uber will convene a shareholder meeting on May 23 to vote on a plan to delist from New York less than a year after its IPO Key Takeaways: DiDi shareholders are likely to approve a plan to delist the company from New York since major investors who hold more than 45% of its shares are likely to vote in favor After an exit, the company must still find ways to comply with China’s Cybersecurity Law and find a way to become profitable to survive over…

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Sunshine Insurance Looks for Sunny Skies in Hong Kong with IPO Bid

Company would become China’s first new insurer to list in five years and 10th listed insurer overall, but is making its bid into a difficult environment Key Takeaways: Sunshine Insurance has applied to list in Hong Kong, and could become China’s 10th listed insurer if the bid is successful Company is launching its bid into a weak market, with most insurers now trading at price-to-book ratios well below 1 By Christina Meng China’s insurance sector is in the throes of change, with companies seeking to improve their products even as…

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Yuan Pricing for Mainland China Buyers Could Lift Hong Kong Stocks

A program that lets mainlanders buy Hong Kong stocks may soon allow trading using China’s currency, the yuan, which could boost Hong Kong trading volume Key Takeaways: Hong Kong and mainland stock regulators will create a mechanism allowing mainland Chinese to buy Hong Kong stocks using China’s yuan through an existing connect program The new arrangement could boost overall trading in Hong Kong by allowing mainlanders to more easily buy Hong Kong stocks, which are now priced in Hong Kong dollars By Lau Ming An 8-year-old program allowing mainland Chinese…

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Chinese Firms in New GDR Rush to Realize Global Dreams

Six Chinese companies have announced plans to issue global depositary receipts in Europe, following Beijing’s recent show of support for overseas listings Key takeaways: Six domestically listed Chinese companies have announced plans to issue GDRs in Europe over the last month Four Chinese companies with existing GDRs in London have received scant interest from investors, with extremely low trading volumes. By Tina Yip The threat of forced U.S. delistings has hung over the heads of U.S.-traded Chinese companies like a Sword of Damocles for the past two years. To date,…

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Qudian Sees Food for Growth in Prepared Meals, Weighs Exit of Core Lending Business

The former fintech pioneer’s stock fell more than 10% after it announced a potential wind down of its original credit business as well as a new foray into ready-made meal kits Key Takeaways •      Qudian said it has started trial operations for QD Food, which sells ready-to-cook meal kits through a WeChat mini app •      The move comes as company says it may wind down its original credit business due to challenging regulatory environment By Warren Yang Some China fintech companies seem to know no bounds when it comes to…

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Crackdown on U.S.-listed Chinese Stocks Ruins Party for China Renaissance, CICC

Shares of China Renaissance dropped about 9% after its latest earnings report showed revenue dropped in the second half of 2021 as U.S. IPOs by Chinese companies dried up Key takeaways: •      China Renaissance’s revenue fell by a third in the second half of last year from the first half as the number of U.S. IPOs it handled dropped to one from nine •      China International Capital Corp. saw a similar drop in its U.S. IPO business but fared better due to a more diversified business portfolio By Warren Yang…

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