Journalist China
Qihoo Adds “Like” to Search Offensive 360推“拇指计划” 继续向搜索业务发力
Security software specialist Qihoo 360 (NYSE: QIHU) is continuing its Internet search offensive by adding a new ratings feature to its product, leading me once again to applaud its innovative approach for this new initiative despite my broader doubts about this company. Media are reporting that Qihoo has added the equivalent of a “like” function to its search results similar to the one now on Facebook, which lets web surfers rate whether or not they find particular sites useful. (English article; Chinese article)
Alibaba in Anti-Piracy PR Blitz 阿里巴巴进行反盗版公关
E-commerce leader Alibaba has been on a quiet PR offensive for much of the last year, seeking to convince the US that its Taobao marketplaces aren’t havens for pirates whose sales of knock-off products cost legitimate brands billions of dollars in lost sales each year. That drive has reached a crescendo with the company’s highly trumpeted announcement of a new deal with Hollywood to fight the sale of pirated movies online. The deal will see Taobao and the Motion Picture Association of America (MPAA) work together to identify merchants that sell pirated movies over Taobao’s various e-commerce platforms and remove the pirated merchandise. (English article)
Suntech: Rats Fleeing A Sinking Ship? 尚德：船沉鼠先窜？
After managing to stay out of the news for a couple of weeks, scandal plagued solar panel maker Suntech (NYSE: STP) has bounced back into the headlines with the announcement of the departure of its chief commercial officer, who is leaving for “personal reasons.” (company announcement) I don’t want to sound too crass on this otherwise lovely Monday morning in Shanghai, but this departure looks a bit like the proverbial “rats jumping from a sinking ship” that we often see just before a company implodes.
Companies Join Short Seller Counter-Attack 中国企业对做空机构发起反攻
The credibility crisis plaguing US-listed Chinese firms took a twist last week when first a group of Internet leaders and then another group of company executives launched attacks on the short sellers who sparked the crisis last year. While many of the earliest short seller attacks were based on real issues related to dubious accounting practices, the Chinese groups last week argued the recent attacks that have prolonged the crisis are unfounded and little more than ploys to earn fast money.
China Gas: New Bid Coming from Sinopec? 中石化会提高收购中国燃气的价格吗？
I’ve been watching with fascination for much of the last year as oil refining major Sinopec (HKEx: 386; Shanghai: 600028; NYSE: SNP) makes a bizarre bid for China Gas (HKEx: 384), a natural gas pipeline operator that has made it clear it has no desire to be acquired. Despite seeing its $2.2 billion offer rejected last December and no formal talks or new offers since then, Sinopec has repeatedly extended the deadline for its bid, including the latest extension it has just disclosed through a filing with the Hong Kong Stock Exchange. (HKEx announcement) All this leads me to believe that Sinopec and bidding partner ENN Energy (HKEx: 2688) are preparing to raise their bid for China Gas, with a new offer possible as soon as the deal gets regulatory approval.
More Solar Outrage Over EU Probe 欧盟光伏倾销调查触发众怒
The headlines are filled this morning with chatter on the latest news that the European Union is launching an anti-dumping probe into Chinese solar panel makers, following a similar investigation by the US that is likely to result in punitive tariffs by the end of this year. In addition to news of the probe itself, most of the major Chinese panel makers have issued their own statements protesting the move, and Beijing has also expressed regret over the decision. Rather than always turning to these predictable displays of outrage and disappointment each time they receive a setback in this year-long dispute, the Chinese players might consider trying a more conciliatory approach if they really want to avoid a trade war over an industry that everyone agrees will be critical to the development of long-term sustainable energy sources.
Japan Automakers Hit New Roadblock 日本汽车制造商遇新障碍
Just as they were recovering from the massive earthquake in Japan more than a year ago, Japanese automakers have hit a new obstacle in China that could once again put the brakes on their growth, though this time the problem is diplomatic rather than a natural disaster. China watchers will know the problem I’m referencing is the recent escalation of tensions between China and Japan over a small group of uninhabited islands, the Diaoyu to the Chinese and Senkaku to Japanese, that both countries claim as their own. This latest flare-up highlights a unique risk for Japanese companies doing business in China, where a deep-seated mistrust lingers among many Chinese due to Japanese aggression during World War II.
iPhone 5 Launch: Another China Snub? iPhone 5：中国还是不能成为第一批上市国家？
With the buzz rapidly rising about the upcoming launch of the newest iPhone, being dubbed the iPhone 5, an equally low-key buzz is starting to build over whether Apple (Nasdaq: AAPL) will include China on its global launch map for the product or snub the country once again. On a conceptual level, the question should be a no-brainer for Apple, due to the huge importance of the China market to its business. But for other reasons which I’ll explain shortly, Chinese media are already predicting that Apple will once again snub China with the latest high-profile launch, which is expected in the next 2 weeks. (Chinese article)
Regulator Probes Into Price Wars 发改委调查电商价格战
The electronics price wars of 2 weeks ago are already starting to seem like a distant memory to consumers, but 3 companies at the heart of the wars are still feeling a hangover effect as China’s powerful state planner investigates them for fraud in the matter. A steady stream of headlines this week on the National Development and Reform Commission’s (NDRC) investigation into Jingdong Mall, Suning (Shenzhen: 002024) and Gome (HKEx: 493) is reminiscent of the nonstop headlines that flowed from the original price wars themselves 2 weeks ago. This time, however, the tone is decidedly negative and will undoubtedly hurt all 3 companies in the short term as consumers punish the trio for their deceptive practices.
Venture Funding Picks Up at Internet’s Edge 风险投资回归对互联网边缘领域
The past year will go down in history books as one of the worst ever for overseas listed China stocks, which have suffered from the triple blow of an economic slowdown at home, compounded by an Internet bubble and a confidence crisis caused by a series of accounting scandals. At the same time, many of the entrepreneurial start-up companies that often go on to list overseas have also quietly suffered, as the venture capitalists who supply much of their new funding have also become more cautious for similar reasons. I pointed to some signs last week that indicated the crisis for overseas-listed stocks is finally starting to subside (previous post), and now we’re also seeing some positive signs for the start-ups with a recent series of new funding announcements.
