We’ve been reading all year about how China is set to overtake the US to become the world’s largest smartphone market in 2013, and now we’re seeing some numbers that tell the story more vividly. The latest figures on China’s smartphone market show Apple’s (Nasdaq: AAPL) position slumping in the second quarter, as sales have surged for a field of domestic players cranking out millions of cheap models, many selling for less than 1,000 yuan ($160 )each. Up-and-coming smartphone maker Xiaomi entered that part of the market just 2 weeks ago with its introduction of the Hongmi, which retails for just 799 yuan. (previous post) Read Full Post…
After several years of trying to figure out what to do with billions of dollars in problematic loans made by Chinese banks during the global financial crisis, Beijing may be close to a long-term solution with plans to create a special market for selling off those loans. Central leaders should be commended for finally addressing a problem that has been hanging over China’s banking sector for the last 2 years, putting the nation’s financial recovery at risk. At the same time, this latest rescue plan once again underscores the close relationship between China’s major banks and the central government, which often prevents them from behaving like true commercial banks. Read Full Post…
A suddenly intensifying rivalry between Internet giants Alibaba and Tencent (HKEx: 700) is building steam, as the pair jockey for position in the fast-growing space for electronic payments and other financial services. It does seem appropriate that these 2 companies are setting the national tone in this race, as they are China’s 2 biggest Internet firms and have risen rapidly on the strength of their ability to innovate. I slightly favor Tencent in this new race due to its ability to roll out new services that complement its existing products at a relatively gradual pace. That contrasts with Alibaba’s most recent approach of launching a much wider range of services at a quicker pace, which runs the risk of overwhelming and confusing consumers.
The following press releases and media reports about Chinese companies were carried on August 10-12. To view a full article or story, click on the link next to the headline.
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After 9 Years, Tesco (London: TSCO) Gives Up On Cracking China Alone (English article)
China To Let Banks Sell Off Loans In Prelude To Possible Bailout (English article)
China’s Largest Investment Bank CICC In Early Step Towards IPO – Report (English article)
Xiaomi Raises 2013 Handset Sales Projection to 20 Mln Units (English article)
Samsung Leads China Smartphone Market, Apple Drops out of Top 5 (English article)
I’m officially calling today “Solar Friday”, as we’re getting bombarded with a sudden flurry of news that shows the sector is rebounding and could also see its first major merger. In the former category, earnings updates from Yingli (NYSE: YGE) and Trina (NYSE: TSL) are showing steady improvement for the embattled panel-making sector, while a quarterly report from Canadian Solar (Nasdaq: CSIQ) is showing the sudden improvements may already be starting to plateau. In the latter category, Chinese media are reporting that both Yingli and Trina are also showing interest in investing in Suntech (NYSE: STP), the former solar panel pioneer that is now in bankruptcy reorganization. Read Full Post…
After offering some rare praise last week for China Unicom (HKEx: 762; NYSE: CHU) related to a smart new tie-up with Internet giant Tencent (HKEx: 700), I’m sorry to have to return to my older pattern of criticizing this bumbling company, this time for a 4G strategy that looks quite schizophrenic. Somewhat appropriately, Unicom discussed its latest 4G plans on a day when it also bumbled the release of its latest financial results. In that instance, a government organization published Unicom’s interim results before their official release via the Hong Kong Stock Exchange, forcing Unicom to request a temporary halt in its stock’s trading until the official stock exchange release. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 9. To view a full article or story, click on the link next to the headline.
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Trina (NYSE: TSL), Yingli (NYSE: YGE) Among Bidders For Suntech – Source (Chinese article)
Canadian Solar (Nasdaq: CSIQ) Reports Q2 Results (PRNewswire)
Tencent’s (HKEx: 700) 51Buy Adds Delivery Tracking Feature to Mobile App (English article)
Milk powder makers fined as price-fixing probe winds down
A surprise flare-up in scandals involving foreign companies that began in July appears to be subsiding, with one of the earliest scandals over price fixing by milk powder makers getting resolved through a series of fines and price adjustments. I won’t comment too much on the validity of the claims, since I’ve discussed that element of the story before with my assertion that this sudden round of probes may be at least partly motivated by politics. More importantly, this resolution of the milk powder case is likely to be followed by similar closure for some or all of the other recent scandals, allowing everyone to get back to the more important business of creating products that are safe and affordable. Read Full Post…
The latest signs coming from bankrupt solar panel maker Suntech (NYSE: STP) indicate a Beijing-led overhaul for the struggling sector may not be coming after all, and that local governments and other stakeholders may instead become the main rescue agents for these companies. Reports last year had hinted that Beijing was working on a broad plan to retrench the sector, which was suffering from massive overcapacity. But since then most of the problems at the weakest major player LDK (NYSE: LDK), have been handled by the local government and other stakeholders in its home province of Jiangxi. Now the same appears to be happening at Suntech, which was forced into bankruptcy in March. Read Full Post…
Embattled telecoms equipment maker Huawei is hoping that Britain will become the key turning point in its quest for acceptance by the west, based on its recent flurry of initiatives there designed to show portray itself as a good corporate citizen. I’ve been reporting on China for a while now, and will openly say that Huawei is certainly doing a good job of trying to look like a western-style company by highlighting its contributions to the markets where it does business. Among the companies I follow, only PC giant Lenovo (HKEx: 992) engages in a similar level of this kind of PR. Read Full Post…
After noting last week that Bank of China (HKEx: 3988; Shanghai: 601988) was rapidly losing ground to rival big 4 lender ICBC (HKEx: 1398; Shanghai: 601398 ) on the global stage, the former is fighting back with its own baby step into Africa through a new tie-up with a local partner. The new alliance with South Africa’s Nedbank looks relatively lightweight on the surface, and probably won’t make a huge difference to Bank of China’s Africa business right away. But I still have to commend Bank of China for finally getting a bit more aggressive on the global stage, and would encourage it to make similar moves into other developing markets. It could also eventually buy a strategic stake in Nedbank, following ICBC’s successful example through its own similar tie-up with South Africa’s Standard Bank. Read Full Post…
