When it comes to the risks and rewards of doing business in China, software giant Microsoft (Nasdaq: MSFT) can write a lengthy book on the subject after years of ups and downs in the market. Just months after the company marked a modest advance with Beijing’s lifting of a decade-old ban on gaming consoles, the central government has now formally banned the installation of Microsoft’s flagship Windows 8 operating system (OS) on all government computers. It’s clear from the media reports that this ban was unexpected, though Microsoft has certainly learned to expect this kind of sudden and unexplained move after 2 decades in the market. Read Full Post…
After more than a year of preparation, China’s newly licensed virtual network operators (VNOs) began launching mobile service last week, as part of Beijing’s drive to invigorate the stodgy telecoms services sector long dominated by 3 state-run carriers. The launch of VNOs by e-commerce giant JD.com and leading electronics chain Suning (Shenzhen: 002024) both look well-conceived by targeting specific groups of consumers who are both relatively affluent and big users of mobile services. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 21. To view a full article or story, click on the link next to the headline.
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China Bans Use Of Microsoft’s (Nasdaq: MSFT) Windows 8 On Govt Computers (English article)
Jack Ma’s Yunfeng Capital Invests in Quanfeng Express – Sources (English article)
Two of China’s most dynamic e-commerce firms are in the headlines today with new strategic moves, including JD.com’s purchase of a Russian rival and Vipshop’s (NYSE: VIPS) plans to open a small loan operation. Both of these moves look well conceived, taking their respective companies into new but related areas with big growth potential. The 2 moves come as JD prepares to launch a $1 billion-plus IPO in New York as soon as this week, and as Vipshop looks for acquisitions following a big fund raising exercise earlier this year. Read Full Post…
Following reports last month of the imminent formation of a major new private equity investor, media are now saying the company, China Minsheng Investment, has formally registered and is gearing up to make its first investments. The new company certainly has the resources and connections to quickly become a major player on both the domestic and global private equity scenes, with an initial 50 billion ($8 billion) in registered capital. Now it appears the company will start by helping to consolidate China’s embattled solar panel-making sector, which will become its first focus area. Read Full Post…
Shanghai doesn’t get the chance to host many global events, so it’s understandable that city officials are quite excited about a major upcoming conference that will see attendance by the likes of President Xi Jinping and Russian President Vladimir Putin. But that said, the massive security drive now underway is getting a bit out of control, literally reaching new heights with word that kite flying will be banned as part of the safety effort during the event. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 20. To view a full article or story, click on the link next to the headline.
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Chinese search leader Baidu (Nasdaq: BIDU) is trumpeting its opening of a new R&D center in Silicon Valley, becoming the latest Chinese Internet company to make such a move in the tech capital of the world. The announcement is obviously full of symbolism, since Silicon Valley is home to global search leader Google (Nasdaq: GOOG), which once tried to purchase Baidu but was rebuffed by company founder Robin Li. Company watchers will also be asking if the move could auger a major new step for Baidu, which could see it challenge Google in lucrative but highly competitive western markets. Read Full Post…
Market watchers are hailing the modest success of the new listing by online cosmetics seller Jumei International (NYSE: JMEI), which managed a respectable pricing and trading debut in New York despite waning sentiment towards Chinese Internet IPOs. I would agree with that view somewhat, since the company’s shares could have easily fallen in their trading debut but instead ended up rising a solid 10 percent on their first trading day. But I’d also advise market watchers to check the bottom line, which saw Jumei slash the size of its original offering by nearly two-thirds due to weak demand. Read Full Post…
Investors may be giving a cold shoulder to many new Chinese companies lining up to list overseas, but one name that’s not having any such troubles is Citic Group, one of China’s oldest and most entrepreneurial financial services conglomerates. Ironically, Citic isn’t even making a formal IPO as it seeks to list in Hong Kong, but instead is making a massive back-door offering using its Citic Pacific (HKEx: 267) unit as the vehicle. The latest reports say a group of top-tier global and domestic investors are lining up to buy into the new back-door listing, reflecting Citic’s attraction as an alternative for buyers looking to gain exposure to China’s financial services sector. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 17-19. To view a full article or story, click on the link next to the headline.
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Jumei Int’l (NYSE: JMEI) Rises 10 Percent In NY Trading Debut After IPO (Chinese article)
Baidu Opens (Nasdaq: BIDU) Silicon Valley Lab, Appoints Head of Research (PRNewswire)
BYD (HKEx: 1211), Bank Of Xi’an Form Car Financing Joint Venture (HKEx announcement)
Canadian Solar (Nasdaq: CSIQ) Reports Q1 Results (PRNewswire)
GSK (London: GSK) Case A ‘Warning’ To All Foreign Firms In China: Xinhua – English article)
