I want to officially add my voice to the hundreds of sarcastic and disappointed Shanghai residents who were underwhelmed to learn that only 2 of the city’s obscure tourist sites were included on a national list of attractions that will offer discounted ticket prices during the upcoming October 1 National Day holiday. And even at the 2 Shanghai sites that made it on to the list, the discounts were so small that they were almost laughable.
Japan Clash Hits China Auto Partners 钓鱼岛争端冲击日本车企中方合作夥伴
Much is being written about the beating that Japanese automakers are taking as a result of the territorial spat between China and Japan over a small island chain, but Chinese joint venture partners of Toyota (Tokyo: 7203), Honda (Tokyo: 7267) and Nissan (Tokyo: 7201) are also suffering lower-profile fallout due to the conflict. The current clash over the island chain claimed by both China and Japan casts a spotlight on the smoldering uneasiness between these 2 regional superpowers that is likely to haunt not only automakers but also all Japanese companies operating in China for at least the next few decades. And it also underscores that these companies need to take steps to lessen the impact, such as introducing brands for the China market that aren’t so easily identifiable as Japanese and thus are less likely to be targeted by angry Chinese consumers each time a conflict occurs.
News Digest: September 27, 2012 报摘： 2012年9月27日
The following press releases and media reports about Chinese companies were carried on September 27. To view a full article or story, click on the link next to the headline.
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- Yum (NYSE: YUM) China Celebrates 25th Anniversary and 4,000th KFC Restaurant (Businesswire)
- Lawmakers Press For Broader Restraints on China Solar Imports (English article)
- Alibaba’s AliCloud to Cooperate with Knock-off Handset Makers – Source (English article)
- 7 Days Group (NYSE: SVN) Announces Privatization Proposal at $12.70 Per ADS (PRNewswire)
- Japan Automakers Slow Output in China Amid Darkened Outlook (English article)
China Telecom: French Tie-Up Coming? 中国电信与法国电信结盟初露曙光
Beijing has been sending a steady stream of signals this year indicating it will soon open up its telecoms services market to foreign operators, and it’s looking more and more look like the first big tie-up that will come from this new openness could well be between China Telecom (HKEx: 728; NYSE: CHA) and France Telecom (Paris: FTE). I should be clear here that I don’t have any insider news about such a tie-up, but a growing number of low-key signals indicate a close relationship is fast developing between France’s leading telco and the smallest of China’s 3 major wireless carriers that could soon result in a major announcement.
M&A: Lenovo Slows, Suning Surges 并购：联想集团减速 苏宁加速
Some interesting signs are coming from 2 major Chinese tech firms on the M&A front, with PC leader Lenovo (HKEx: 992) signaling it may finally slow down its acquisition frenzy, even as e-commerce aspirant Suning (Shenzhen: 002024) sends the opposite message with its announcement of a new major purchase. The news from Lenovo would represent a welcome break from the company’s steady stream of acquisitions, which look destined to give the company some major indigestion as it tries to digest such a wide array of assets in a number of very different markets. Meantime, Suning’s purchase of an e-commerce site targeting infants and toddlers isn’t too worrisome by itself, but from a broader perspective also reveals a company trying to grow too big too quickly.
No Buyers for China Mobile Games IPO 中国手游上市无买家
A major catalyst is clearly needed to thaw the current frigid market for US-listed Chinese stakes, but unfortunately the newly listed China Mobile Games (Nasdaq: CMGE) was not what investors were seeking. Meantime in other Internet news, video sharing leader Youku Tudou’s (Nasdaq: YOKU) first major strategy announcement since closing its historic merger a month ago has also failed to inspire investors, who are already running out of patience with the company.
News Digest: September 26, 2012 报摘： 2012年9月26日
The following press releases and media reports about Chinese companies were carried on September 26. To view a full article or story, click on the link next to the headline.
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- Lenovo (HKEx: 992) to Cease Acquiring Hardware Companies (English article)
- China Mobile Games (Nasdaq: CMGE) Lists, No Trade on 1st Day Due to Price Gap (Chinese article)
- Tudou (NYSE: YOKU) Revamps Homepage, Introduces New Content, Product Innovations (PRNewswire)
- China’s Suning (Shenzhen: 002024) Widens Product Line With Infant Goods Website (English article)
- Ctrip (Nasdaq: CTRP) Completes Offering of $180 Million of Convertible Senior Notes (PRNewswire)
Huawei’s Slowing Growth, Google-Hisense Tie-Up 华为高增长一去不返 海信与谷歌联合研发智能电视
A couple of items from the consumer electronics space are worth looking at today, including one that shows Huawei’s consumer unit forecasting surprisingly slow growth while electronics giant Hisense (Shanghai: 600060) is cementing an interesting TV tie-up with Google (Nasdaq: GOOG). Both of these news bits highlight China’s growing prowess as a consumer electronics maker, as the country rapidly rises to challenge traditional powerhouses like Japan, South Korea and Taiwan with products that can compete globally not only in price but also in quality.
China Gallops Off With US Digital Effects Star 小马奔腾收购数字领域
The growing China-Hollywood love affair has taken an interesting and new twist with the purchase of a major bankrupt US digital effects studio by a partnership between a Chinese production house and one of India’s leading communications groups. Adding further intrigue to the picture are the bankrupt US venture’s links to blockbuster director James Cameron, who seems to have taken his own a sudden interest in the China market. If all of this sounds like something from a Hollywood movie, then perhaps it’s because so many US entertainment executives are getting overly excited about the huge potential of the Chinese movie and TV markets, which appear to finally be opening after years of being largely closed to foreign investment. My main advice to all the excited parties, both in China and the US, would be to temper their big expectations with some realism, as it’s quite possible that either Beijing or Washington could quickly become worried about this rapidly evolving love affair and take steps to cool things off.
Kellogg Takes on Congee With New JV 凯洛格成立合资企业对峙热粥
As inventor of the western-style breakfast cereal that is typically eaten cold with milk, Kellogg (NYSE: K) is a household name in the US and many European markets. But it has yet to find the right formula for Asia, where rice porridge and soy milk served hot still dominate the breakfast market. Now the US breakfast giant is preparing to try to change Chinese tastes through a joint venture with a Singaporean company that will sell Kellogg brand products, presumably including its trademark breakfast cereals, to millions of Chinese.
News Digest: September 25, 2012 报摘： 2012年9月25日
The following press releases and media reports about Chinese companies were carried on September 25. To view a full article or story, click on the link next to the headline.
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- Kellogg (NYSE: K) Inks China JV to Gain Share in Breakfast, Snack Market (English article)
- Hisense (Shanghai: 600060) to Develop Google (Nasdaq: GOOG) TV – Source (English article)
- Galloping Horse in Winning Bid For Assets of Bankrupt Digital Domain (Businesswire)
- Huawei Forecasts Consumer Device Sales to Grow 30 Pct Next Year (Chinese article)
- Perfect World (Nasdaq: PWRD) Announces Departure of Shanghai Manager Davis Jian Li (PRNewswire)
