Barclays published an analysis of the 200 million USD for Ctrip's strategic investment in the same process

After the injection of 200 million dollars, Ctrip will become the second largest shareholder in the same process after the latter management. Barclays analyst Alicia Yap, Anand Ramachandran, Joyce Zhou and Gregory Zhao argue that the investment complicates the equity structure of the same process, not least because Tencent is one of the big shareholders.

April 9, 2014, one of the main competitors Ctrip (long) officially announced that with the same process to reach a strategic partnership, the Chinese market consumers through the same process booking at the front desk to pay the hotel or buy the hotel, the related products and services will be provided by the Art Dragon Exclusive, and art Dragon scenic spot ticket booking service will also be in the first half of this year official appearance, related products are provided by the same process exclusive.

Earlier this year, the same way to get Tencent led by an investment group of 500 million Yuan investment, the current round of financing the same process management still owns the company's controlling power. According to Art Dragon 2013 annual report, Tencent holds about 15.7% of the overseas circulation shares of the art dragon.

Barclays believes, however, that the good side of Ctrip's investment in the process is that competition among the two companies could cool.

Starting in 2014, Ctrip and the same journey began a ticket price war in thousands of scenic spots in China. Ctrip plans to invest 200 million yuan in cash return and marketing campaigns to try to capture the same market share. With the city made an investment of 400 million yuan response, not only for Ctrip's plan, but also ready to Ctrip's operations: domestic and overseas travel market for business expansion.

Barclays pointed out that the direct investment of Ctrip helped to improve the relationship between the two companies, which could eventually lead to the end of the price war, which may be helpful to the growth of Ctrip's backpacking business and the rise in profitability.

by Tuesday Noon 12:54 (Beijing time Wednesday 0:54 A.M.), Ctrip's Nasdaq-listed shares rose 1.97 U.S. dollars to 46.99 U.S. dollars, or 4.36%.