In today’s briefing:
- Tencent Holdings – Getting Its House In Order
- China Evergrande Group – Fox in Henhouse
Tencent Holdings – Getting Its House In Order
- Substantial disagreements over the video streamer DouYu International’s strategic direction, prompts ownership re-think at Tencent;
- Tencent is allegedly privatizing Douyu near the bottom of the market; and
- Unlike the JD.com move, this transaction maximizes shareholder value while getting into regulatory compliance.
China Evergrande Group – Fox in Henhouse
- Evergrande’s seven-member risk management committee includes China Cinda, a major Evergrande creditor;
- Adding insult to injury, a China Cinda senior executive was appointed as an Evergrande director; and
- This is massive conflict of interest coupled with the local municipality bonepickers give us little confidence that any creditor will be treated fairly.
Before it’s here, it’s on Smartkarma
