US-Chinese Business Partnerships Are Thriving (Kraneshares)

Posted June 13, 2017 1:35 pm by Comments

Kraneshares recently noted how U.S. brands are increasing sales in China through partnerships with domestic Chinese companies with some high profile US-China partnerships being the following:

  • Wal-Mart Stores (NYSE: WMT) & JD.Com (NASDAQ: JD). On June 20, 2016, Wal-Mart announced it was acquiring approximately 5% of JD.com, Alibaba’s chief rival. The strategic alliance was formed to help Wal-Mart access additional consumers across China through a powerful combination of E-Commerce and retail.
  • Priceline Group (NASDAQ: PCLN) & Ctrip.Com International Ltd (NASDAQ: CTRP). In August 2014, Priceline invested $500 million in Ctrip through convertible bonds. Zacks Equity Research estimates that Priceline owns as much as 15% of Ctrip. According to Zacks, Priceline’s agreement with Ctrip enables it to share inventory and thereby capture outbound traffic from China.
  • Tesla (NASDAQ: TSLA) & Tencent Holdings Ltd (OTCMKTS: TCEHY; OTCMKTS: TCTZF). While Tesla sold $1 billion worth of cars in China last year, recently Tencent took a 5% position to further assist in automotive sales. According to a report from CNBC, Tencent could help Tesla sell – or even build – cars in China, the world’s largest auto market, while Tesla would get a leg up in the self driving car market in China, currently dominated by rival Baidu.

In addition and three years ago, Kraneshares noted how a Chinese company called Shuanghui International Holdings Ltd, now known as WH Group, bought Smithfield Foods – the largest U.S. pork processor.

To read the whole article, From the Midwest to the Middle Kingdom, Putting Business First With China, go to the website of Kraneshares. In addition, check out our China ETF list and our China closed-end fund list.

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