Western fast food chains have seen decidedly mixed results in China, reflecting a wide range of factors in this image-conscious society where perceptions and promotions are often just as important as product quality. It’s not often that I break news in this sector, but now I’m excited to report that US pizza specialist Domino’s is preparing a major push into the China market, aiming to tap the growing trend for products that can be delivered to the home. Read Full Post…
KFC, McDonalds Get Headache In Dirty Water
It’s a new day, and that means time for the latest new scandal surrounding a foreign company doing business in China. This time McDonalds (NYSE: MCD) and Yum’s (NYSE: YUM) KFC are in the spotlight for serving water that contains excess levels of bacteria. This scandal is just the latest in a nonstop stream for foreign companies this month, providing plenty of food for domestic media during the summertime that is usually considered a slow period for news. Read Full Post…
China Telecom, NetEase Take Aim At WeChat
I’m pleased to see that after a major socialist-style clash in China’s mobile Internet space earlier this year, all of the relevant parties are turning to the business of more market-oriented competition with the roll-out of new rival products. Internet followers will know I’m talking about the high-profile clash in early 2013 between China Mobile (HKEx: 941; NYSE: CHL) and Internet leader Tencent (HKEx: 700) involving Tencent’s highly popular WeChat mobile instant messaging service. In the latest wrinkle to the story, media are reporting that online game operator NetEase (Nasdaq: NTES) is teaming up with China Telecom (HKEx: 728; NYSE: CHA), the smallest of China’s 3 mobile operators, to roll out their own WeChat rival product. Read Full Post…
News Digest: July 26, 2013
The following press releases and media reports about Chinese companies were carried on July 26. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- People’s Daily questions Apple’s (Nasdaq: AAPL) Earthquake Donations (English article)
- Huayi (Shenzhen: 300027) Shares Rise After Mobile Game Buy (English article)
- Glaxo (London: GSK) Replaces China Chief Amid Corruption Scandal (English article)
- China’s Hanergy Buys US Solar Panel Maker In Technology Push (English article)
- World Property Channel Expands Into China (Businesswire)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Tencent In EA Tie-Up As Ma Tops Rich List
Online gaming giant Tencent (HKEx: 700) is making headlines today on a couple of fronts, with founder Pony Ma officially becoming China’s richest man as the company has also signed a major new licensing deal with US game developer Electronic Arts (EA) (Nasdaq: EA). The former development reflects the meteoric rise of Tencent over the last decade, as it leveraged its popular original QQ instant messaging platform to become China’s dominant online game and social networking company. Meantime, the new EA tie-up provides the latest evidence that Tencent is trying to diversify beyond its previous alliance with US game development giant Activision Blizzard (Nasdaq: ATVI), as part of Tencent’s bigger globalization drive. Read Full Post…
Results: Business Stable At Huawei, Baidu
Stability has become the buzzword of the moment for Chinese tech firms, which appears to be the driving factor behind the positive receptions for what otherwise look like so-so results from online search leader Baidu (Nasdaq: BIDU) and telecoms equipment giant Huawei. In Baidu’s case, the company has been hit by slowing revenue growth and evaporating profits in the last few quarters caused by growing competition and a sharp slowdown in ad spending. Huawei, meantime, is fighting a sluggish global economy and also growing resistance in the US and Europe to its core networking equipment. Read Full Post…
Xiaomi In New Mega-Funding
A year after its last major capital raising, smartphone maker Xiaomi is reportedly closing in on a new mega-funding round that would be one of the largest ever for a Chinese tech start-up, worth $2 billion or more. The massive new funding would come as the company rapidly ramps up its sales and product offerings in the second year after the launch of its inaugural smartphone. Equally interesting, some reports are saying a major investor in this new funding round could be Internet giant Tencent (HKEx: 700), which has been relatively quiet during a recent flurry of M&A happening in China’s online space. Read Full Post…
News Digest: July 25, 2013
The following press releases and media reports about Chinese companies were carried on July 25. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════════════
- Baidu (Nasdaq: BIDU) Announces Q2 Results (PRNewswire)
- China Telecom (HKEx: 728), NetEase (Nasdaq: NTES) Challenge Weixin With Dingding (Chinese article)
- Huawei On Track For 10 Pct Revenue Growth In 2013 (English article)
- Tencent’s (HKEx: 700) Pony Ma Becomes China’s Richest Man (Chinese article)
- Apple (Nasdaq: AAPL) Wobbles In China As Rivals Offer More, For Less (English article)
- Latest calendar for Q2 earnings reports (Earnings calendar)
Apple, Samsung Face Smartphone Price Pressure
I’ve been reporting on China’s cellphone market long enough to know that change can come suddenly and without much warning, and that a superstar one day might be struggling for survival just a year or two later. Such transformations often come in waves, and it appears the newest shake-up could be coming as consumers start to shun prestigious high-end smartphones in favor of booming lower-end models that perform many of the same functions for a fraction of the price. China’s slowing economy could cause the trend to accelerate, since many consumers are now looking for ways to cut back their spending due to uncertainty about the future. Read Full Post…
NetDragon Buy-Back: New Baidu Talks Coming?
A new announcement by online gaming and mobile app store operator NetDragon (HKEx: 777) is raising the possibility of further talks with leading search firm Baidu (Nasdaq: BIDU), just a week after the pair agreed to a major asset sale. This new announcement is headlined with a recent share buyback by NetDragon, whose stock plummeted 20 percent last week after it announced it would sell its controlling 57 percent stake in app store 91Wireless to Baidu for $1.1 billion. (previous post) But a closer reading of the announcement seems to contain some other implications, including closer tie-ups with Baidu and even a potential renegotiation of the 99Wireless deal. Read Full Post…
TAL Results: New Interest In Education
After a painful retrenchment over the last 2 years, China’s private education sector is showing early signs of a brighter future in the latest upbeat results of TAL Education (NYSE: XRS). The company not only posted growth that was solidly higher than its previous guidance, but also forecast an acceleration of that growth in the current quarter as it begins to reap the rewards of an overhaul that has produced a leaner, more focused company. The positive results prompted 2 major research houses to raise their price targets for the company, hinting that a new period of growth could be coming for long-neglected China education stocks. Read Full Post…
