A new report about a sudden exodus of middle- and top-level executives from China’s big 3 telcos is forcing me to rethink my earlier assertion about the relationship between those carriers and a group of new competitors called virtual network operators (VNOs). Earlier reports about the defection of a top executive from one of the big telcos to a new VNO had prompted me to declare the big 3 state-run carriers were trying to sabotage the new VNO scheme to quash any new competition. But now this new report reveals that similar defections at all levels of management are becoming widespread, indicating perhaps that market economics really are at work here. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 21. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) In Talks For 6 Pct Of JD.com, No Agreement Yet (Chinese article)
InterDigital (Nasdaq: IDCC) Says Won’t Charge High Royalty Fees To Chinese Firms (Chinese article)
Genetically Modified Ingredients Found In KFC (NYSE: YUM) Soy Milk (Chinese article)
Two of China’s fastest rising tech stars are getting ready to take on the world, with word that security software specialist Qihoo 360 and trendy smartphone maker Xiaomi are both launching signature products outside their home market. Xiaomi’s formal move into Singapore marks the beginning of a broader global growth push, as the company looks to replicate its cool and trendy image and business model in both Asia and the west. Meantime, Qihoo is preparing to showcase its security software at one of the world’s top telecoms shows later this month, saying it wants to take the products global. Read Full Post…
Reports of major new funding for online travel site Tongcheng are casting a spotlight on a sudden rise in competition for the sector, which for years was dominated by industry leaders Ctrip (Nasdaq: CTRP) and eLong (Nasdaq: LONG). The trend looks a bit worrisome to me, hinting at a new looming round of price wars and potentially some consolidation. Ctrip could well become a leader of such consolidation if it occurs, since the company now has a huge cash pile of nearly $2 billion following its raising of $800 million through a highly popular convertible bond offer last fall. Read Full Post…
UPDATE: Since originally writing this post, Tencent has announced it will purchase 20 percent of Dianping for an undisclosed amount. (company announcement)
Talk involving major new investments in online clothier Vancl and restaurant ratings site Dianping was buzzing through the blogosphere this past week, reflecting the many new partnerships that are quickly forming amid intense competition plaguing the overheated Internet space.
Vancl has been racing to find profits before it runs out of cash, and recently received a lifeline in the form of $100 million in new funding from a group led by Lei Jun, the marketing-savvy co-founder of trendy smartphone maker Xiaomi. Lei Jun and Vancl CEO Chen Nian engaged in a round of online banter this week on their microblogs that could hint at some of the new directions and tactics that Vancl will take as it searches for the elusive business model that can move it into the black. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 20. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) To Buy 20 Percent Of Restaurant Ratings Site Dianping (HKEx announcement)
Dongfeng (HKEx: 489) To Pay 800 Mln Euros For 18 Pct Of Peugeot (Paris: PEUP) (English article)
MIIT: China’s 4G User Base To Reach 30-50 Mln In 2014 (English article)
Xiaomi Enters Singapore To Kick Off Global Expansion (Chinese article)
Qihoo 360 (NYSE: QIHU) To Introducing Free Security Services To The World (PRNewswire)
Tie-up talk swirls around Tencent-JD.com, Dangdang-Yihaodian
It’s a new day on the Chinese Internet, which is as good an excuse as any to talk about rumors of the latest tie-ups in the overheated e-commerce space. One of the latest pieces of gossip has a partnership taking shape between JD.com and Tencent (HKEx: 700), China’s second and third largest e-commerce operators. The other has an alliance forming between Dangdang (NYSE: DANG) and Yihaodian, 2 smaller players at the bottom of the list of the country’s top 10 e-commerce firms. I’ll offer my own guess that there’s a 50-50 chance the first rumor is true, while chances of Dangdang-Yihaodian tie-up look much smaller, perhaps around 20 percent. Read Full Post…
The latest reports of unrest among some unhappy investors who bought a product that failed to deliver on promised returns through top lender ICBC (HKEx: 1398; HKEx: 601398) bodes poorly for a recent boom in similar products, hinting at a looming crackdown that could send a chill over the entire industry. I previously predicted we could see such consumer backlash, as many of the products flooding into the market promised unrealistically high returns to lure in investors. Such products may also include disclaimers saying that returns could also be lower, or that investors may even lose money. But unsophisticated Chinese investors often ignore such small-print, which will inevitably lead to howls of complaint when they don’t receive the headline returns. Read Full Post…
New data is showing that the inevitable slowdown in China’s smartphone sales may have begun at the end of last year, following a boom that saw the country overtake the US to become the world’s largest market. Another noteworthy data point includes the slippage of ZTE (HKEx: 763; Shenzhen: 000063) from the top 5 smartphone sellers, as it loses momentum to more aggressive rivals like Huawei, Lenovo (HKEx: 992) and Coolpad. Meantime, fast-rising Xiaomi still has yet to make it into the top 5 sellers, but achieved a major milestone by breaking into the top 5 list for the nearby Taiwan market. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 19. To view a full article or story, click on the link next to the headline.
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Alibaba to Increase Sina (Nasdaq: SINA) Microblog Stake To 30-50 Pct – Source (English article)
Samsung (Seoul: 005930) Leads Smartphone Sellers In China In Q4 – IDC (Chinese article)
I’ll start this post with a major disclaimer, since one of my main reasons is simple sentimentality for writing about the newly announced buyout of New York-listed hospital operator Chindex (Nasdaq: CHDX) by a unit of the aggressive Fosun Group. When I first arrived in Beijing in 1987 as recent college graduate, I worked briefly in Chindex’s Beijing offices, which at the time were in the old Xiyuan hotel near the Beijing zoo. Since then, the company has transformed from its early days as an importer of medical and industrial equipment to its current focus on building and operating hospitals and clinics. Along the way it also made an IPO, and has quietly grown into a company with a market value of nearly $300 million. Read Full Post…
