I wrote about taxi apps a few times last year when they first became a hot topic, but haven’t written much since then despite frequent appearances in the headlines about their aggressive business practices. At the end of the day the news didn’t seem too interesting, and companies like Didi and Kuaidi seemed destined to remain relatively small in a sector with limited growth potential. But a new war pitting US giant Uber against the Chinese start-ups seems worth writing about, as it has bigger potential to shake up the market and also to draw attention from Chinese regulators. Read Full Post…
An important step in China’s ongoing battle against piracy is showing signs of being undermined, with word that a Shenzhen company that received a record fine for copyright violations was attempting to avoid the penalty through use of an old trick.
The Shenzhen government should take extra efforts to enforce the penalty, and also make sure that the company, QVOD, permanently ends its piracy practices. Such a tack would send a strong message to Chinese companies that intellectual property theft of any kind won’t be tolerated, and the government will tirelessly pursue culprits until they are brought to justice. Read Full Post…
Two of the world’s biggest social networking service (SNS) operators are in the headlines as the new week begins, starting with word that Facebook (Nasdaq: FB) is moving ahead with its plans to open in China. Meantime, separate reports are saying Japanese-based mobile instant messaging service Line has been disrupted in China, perhaps for carrying sensitive content.
These news bits may look different on the surface, but they’re really quite similar in broader terms. China is extremely wary of offshore-based SNS like Facebook, Line and Twitter (NYSE: TWTR), because they are not subject to the country’s strict self-censorship laws. Thus companies that want to develop a China business must open offices and host their Chinese services on local servers to placate Beijing, which is what Facebook and Line are doing now. Read Full Post…
It’s now been 3 years since a series of accounting scandals toppled a handful of overseas-listed Chinese high-flyers, starting with a financial services company called Longtop. The scandals were sparked by opportunistic short sellers, who launched a steady stream of similar assaults highlighting the aggressive accounting practices at many Chinese companies. But after Longtop and 1 or 2 other big names fell, all major companies managed to repel the attacks and get on with business. Now some investors might be wondering if another major player may be set to fall, following new ominous signs coming from embattled security software maker NQ Mobile (NYSE: NQ). Read Full Post…
Lenovo’s IBM, Motorola buys come under the microscope
A month after word first emerged that Lenovo’s (HKEx: 992) mega-deal to buy IBM’s (NYSE: IBM) low-end server business was running into political headwinds, Lenovo is coming out and directly saying it expects to close the deal by the end of the year. Some of my sources near IBM are giving a similar message, even after a top Lenovo executive said last month that the ongoing cybersecurity spat between Beijing and Washington could derail the deal. Lenovo is also saying it expects to close its separate purchase of Motorola Mobility in the same time frame, marking the first time I’ve ever seen anyone imply that the purchase of that company from Google (Nasdaq: GOOG) might face any political headwinds. Read Full Post…
Separate reports about a new IPO by one company and potential exit from the Nasdaq by another are reflecting the mixed feelings that Chinese firms have for New York, where public listings can bring both prestige and also headaches. In the new listing category, media are reporting that yet another mobile game developer called iDreamSky has just made its first public filing for a New York IPO to raise up to $110 million. Meantime, other media are reporting that veteran online travel service eLong (Nasdaq: LONG) could be gearing up for a buy-out by much larger rival Ctrip (Nasdaq: CTRP). Read Full Post…
Former online clothing high-flyer Vancl is making yet more cuts to its business, as it pursues its dream of finding sustainable profits and making an eventual public listing. Both goals could come sooner rather than later, especially since IPOs by Chinese web firms have suddenly become an investor favorite again on Wall Street, as reflected by new data on the second-quarter IPO market. Such an offering could be compelling if Vancl really has become profitable, since it’s a clear leader in the highly competitive but still somewhat niche area of clothing e-commerce. Read Full Post…
The following press releases and media reports about Chinese companies were carried on July 4. To view a full article or story, click on the link next to the headline.
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China To Try GSK-linked (London: GSK) Investigator In Secret: Family Friends (English article)
A couple of headlines are spotlighting the ongoing woes of 2 groups in China’s auto sector, with domestic brands and new energy vehicle makers both showing signs of difficulty. In the former category, reports that former domestic high-flyer Chery is closing one of its biggest Beijing dealerships spotlight the broader woes of domestic car brands that are losing share to better-run foreign rivals. In the latter category, another media report is showing that new energy vehicle sales were largely insignificant in the first 4 months of the year, even though they did notch major gains over 2013. Read Full Post…
A series of microblog posts this past week is highlighting the breakneck pace of wheeling and dealing happening behind the scenes on China’s Internet as it undergoes an unprecedented wave of consolidation. What started as a trickle of buying early last year has become so routine that barely anyone notices now when new deals worth hundreds of millions of dollars are signed. Equally interesting are the untold stories of companies quietly being dismantled in the wake of larger deals, and hints of deals to come in the microblog posts of executives at firms leading the consolidation. Read Full Post…
Newly released data are showing an inevitable slowdown at Yu’ebao, Alibaba’s inaugural financial product that has shaken up China’s stodgy banking industry since its launch a year ago. The data released by Alibaba’s Tianhong Asset Management, which officially runs Yu’ebao, also shows the product’s return rate has dropped considerably from earlier levels, which will further undermine its attractiveness. Separately, media are reporting that Alibaba has tentatively chosen the date of August 8 for its highly anticipated New York listing, which had been previously rumored due to its significance as a lucky day on the Chinese calendar. Read Full Post…
