The non-stop debate over Internet giant Tencent’s (HKEx: 700) popular WeChat mobile instant messaging service has moved south to Hainan island, where executives on both sides of the issue are speaking out at a major annual forum in the city of Boao. On one side of the issue, former China Mobile (HKEx: 941; NYSE: CHL) Chairman Wang Jianzhou is saying that WeChat and other popular mobile apps are a huge burden for the nation’s telcos, which must invest big bucks in infrastructure that these Internet-based programs require to operate. On the other side of the issue, Tencent President Martin Lau is saying that WeChat will remain free, contradicting recent signals from the telecoms regulator that Tencent will soon start to charge for the service. Read Full Post…
Former high-flyer Qunar is quickly discovering the risks of using third-party agents to provide many of its travel services, as many of those agents are suddenly leaving the platform in a mass uprising. The revolt in many ways looks similar to what happened 2 years ago to e-commerce leader Alibaba, which saw a similar uprising of smaller third-party merchants on one of its B2C e-commerce platforms after changing some of its pricing policies. Read Full Post…
Much is being written about the flurry of H7N9 bird flu cases in and around Shanghai, but few of the stories are focusing on the impact the outbreak is having on businesses. Chicken farmers and sellers are taking an obvious hit, but restaurants with a heavy presence of chicken and pork on their menus and Shanghai-based event organizers and supporting industries like hotels and airlines are also likely to suffer in this current bird flu event. Read Full Post…
Security software specialist Qihoo 360 (NYSE: QIHU) is learning that bad news comes in waves, with new reports saying the company’s highly hyped new search engine isn’t doing quite as well as previous reports indicated. The news, if true, would follow another major setback for the company last month when an anti-monopoly lawsuit it filed against Internet giant Tencent (HKEx: 700) was thrown out by a judge in a courtroom in southern Guangdong province. (previous post) Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 10. To view a full article or story, click on the link next to the headline.
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SAIC: Apple (Nasdaq: AAPL) Apology Not Enough (English article)
Suntech (NYSE: ST) Receives Continued Listing Standards Notice From NYSE (PRNewswire)
Intriguing rumors that billionaire investor Warren Buffett might be eying bankrupt former solar superstar Suntech (NYSE: STP) are breathing new life into embattled solar shares, as traders bet that western investors could help to revive the sector. Such a move would indeed be a major vote of confidence in this tarnished industry, since most observers believe that no private investors would want to bet on this group and a state-led rescue will be necessary to save the shaky sector. But all of that said, I’m quite skeptical that the latest rumors are true, since Buffett isn’t know for investing in problem-plagued companies or sectors.
A new attack on software giant Microsoft (Nasdaq: MSFT) by an English-language Chinese broadcaster looks like a relatively minor affair and would probably not even qualify as news in most western markets. But this is China, where all media are owned by the state and often support each other by speaking with a single voice. That means this new criticism by China National Radio could be just the opening shot against the world’s largest software maker, similar to an ambush faced by rival Apple (Nasdaq: AAPL) just weeks ago. Read Full Post…
The following press releases and media reports about Chinese companies were carried on April 23. To view a full article or story, click on the link next to the headline.
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In China, Off-Balance-Sheet Lending Risks Lurk In The Shadows (English article)
Tencent (HKEx: 700) WeChat Cost to Carriers Far Exceeds New Revenue – Wang Jianzhou (Chinese article)
ZTE (HKEx: 763) Strength in Smartphones Delivers Increased Profitability (Businesswire)
Huawei CFO Says Revenue To Grow 10 Pct Annually In Next Few Years (Chinese article)
I must admit that I have a love-hate relationship with TV talent shows, which perhaps explains my mixed reaction to the news that the granddaddy of the genre, “American Idol” is finally coming to China more than a decade after its huge success in the US. On the one hand, I do think these shows that have become a Chinese TV staple seem more like a waste of talent that could be better spent on more productive things like saving the environment or building faster computers. Read Full Post…
Coffee lovers in China will be excited to hear about a major new initiative by Nestle (Zurich: NESN) to grow coffee beans in southwestern Yunnan province, in the latest challenge to the nation’s traditional tea-drinking culture. Nestle’s choice of the area known as Pu’er for its latest move is highly symbolic in the brewing battle between these 2 popular hot beverages, since that particular region is already famous in Chinese for its namesake tea leaves. Read Full Post…
E-commerce is quickly gaining traction as a quick and affordable entree to China’s vast retail market, with US giants Costco (Nasdaq: COST) and Macy’s (NYSE: M) both reportedly planning big new moves into the space. Their strategy reflects an emerging trend that has big western chains circumventing the traditional retailing route into China, seeking to avoid the big costs and risks that have led to big losses and retreats for names like Best Buy (NYSE: BBY) and Home Depot (NYSE: HD). But the online strategy also carriers its own risks, as China’s e-commerce space is also quite crowded and retailers that go online face an uphill road getting recognized by brand-conscious Chinese consumers. Read Full Post…
