Embattled telecoms equipment makers Huawei and ZTE (HKEx: 763; Shenzhen: 000063) have scored a victory in the US with a new trade ruling in their favor, providing an important show that they can get fair treatment in the market. But that win is largely symbolic, since Washington has already informally banned the import of the technology at the heart of the trade dispute. Instead of US trade barriers, it seems the true enemy of both Huawei and ZTE could be slowing growth, with media quoting a Huawei executive saying the company only expects to post average growth of 10 percent over the next 5 years. Read Full Post…
An interesting transformation is taking place in China’s e-commerce world, as traditional retailer Suning (Shenzhen: 002024) becomes the latest major player to launch an open platform where independent merchants can sell their wares. Most of China’s top e-commerce firms started out mimicking a traditional retailing model, which saw them purchase goods from wholesalers and sell them directly to consumers via their online stores. The notable exception was industry leader Alibaba, which didn’t sell merchandise directly but instead operated online “malls” where third-party merchants could set up shops. But now a growing number of companies are moving to a hybrid model, offering goods both directly to consumers but also operating platforms where independent merchants can set up shops. Read Full Post…
The buzz is quickly dying over the newest iPhone, with Chinese media and gadget fanatics decidedly underwhelmed by China’s first-ever inclusion in a global launch for a major new Apple (Nasdaq: AAPL) product. In many ways this kind of disillusionment was almost inevitable, since there was so much hype when media first began reporting last week that China would be included in the global launch for the iPhone 5S. But at a deeper level, it looks to me like the Chinese are disappointed that they weren’t given more special treatment to acknowledge their status as the world’s largest smartphone market, and are also annoyed at having to pay a big premium for the 2 newest iPhones. Read Full Post…
Internet TV is fast becoming the flavor of the day for China’s leading Internet and gadget companies, with word that e-commerce giant Alibaba has now entered the field through a new tie-up with TV maker Skyworth (HKEx: 751). The news comes just a week after online search leader Baidu (Nasdaq: BIDU) announced its own similar tie-up with TCL Multimedia (HKEx: 1070), another leading TV maker, and following other similar recent product roll-outs by names like smartphone maker Xiaomi, video content provider LeTV (Shenzhen: 300104) and PC giant Lenovo (HKEx: 992). Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 12. To view a full article or story, click on the link next to the headline.
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Suning (Shenzhen: 002024) Launches Open Platform On E-Commerce Site (Chinese article)
Foreign Banks Vie For Place In New Shanghai Free Trade Zone (Chinese article)
Huawei Sees Annual Growth Rate Reaching 10 Pct For Next 5 Years (Chinese article)
ReneSola (NYSE: SOL) Announces Pricing of $70 Mln Offering (PRNewswire)
Western Union (NYSE: WU) Significantly Grows Its Reach in China (Businesswire)
There’s an interesting report out saying that up-and-coming smartphone maker Xiaomi is developing its own mobile operating system (OS), becoming the latest Chinese player to try to muscle in on a market now dominated by 3 US companies — Apple (Nasdaq: AAPL), Google (Nasdaq: GOOG) and Microsoft (Nasdaq: MSFT). I’ll admit there have been so many similar initiatives by both Chinese hardware and Internet companies these days that it’s hard to know which of the campaigns are genuinely new systems and which are just variants of Google’s popular and free Android OS. Read Full Post…
It’s been nearly a year since makers of the traditional Chinese liquor called baijiu were hit by a double-whammy created by a food safety scandal and a Beijing crackdown on lavish government spending, sending the sector into a prolonged winter. Media are focusing on this one-year anniversary to chart the recent woes of top names like Moutai (Shanghai: 600519) and Wuliangye (Shenzhen: 000858) and talk about what they can do to turn things around. My view is that these companies are in dire need of an image makeover, which should include development of newer, lower alcohol products and major marketing campaigns targeting a generation of younger professionals in major cities. Read Full Post…
Local media are buzzing with word that China’s telecoms regulator has just approved 4 smartphones for use on the nation’s upcoming 4G networks, implying the long-awaited issue of 4G licenses could be imminent. But equally interesting is a separate report that says the number of newly approved phones is actually 5, and that the fifth phone was a version of Apple’s (Nasdaq: AAPL) new iPhone 5S that can operate on networks using a homegrown Chinese technology called TD. That report says Apple requested its iPhone approval be kept secret; but if true, it means we could soon see announcement of a long-awaited tie-up between the US tech giant and leading Chinese mobile carrier China Mobile (HKEx: 941; NYSE: CHL). Read Full Post…
DreamWorks Animation (NYSE: DWA) is dropping the “animation” part of its name in its year-old China joint venture, with word of a major new expansion that underscores the Chinese film market’s growing clout. Word of the expansion comes as Wang Jianlin, China’s newly named richest man, also makes a big bet on Hollywood, with his multiple investments in movie theaters and related technology via has Wanda Group empire. DreamWorks and Wang are both chasing a Chinese film market that is growing at breakneck pack, and is now the world’s second largest after only the US. DreamWorks is also setting its sights on China’s rapidly transforming TV market, where the Internet and other new delivery channels look set to shake up the traditionally slow-moving sector. Read Full Post…
Zhejiang man penalized for faking marriage to buy home
This week’s Street View shines a spotlight on Shanghai’s hyperactive real estate market, centered on the tale of an unlucky out-of-towner who got caught faking a marriage just so he could buy an apartment in the city. The story is at once humorous but also a little sad, as it exposes how ridiculous Shanghai’s real estate market has become. It also highlights some of the tactics the city has taken to try to cool the market, sometimes resorting to measures that seem both strange and unfair. Read Full Post…
I have to commend the Obama administration for approving the sale of leading US pork processor Smithfield (NYSE: SFD) to China’s Shuanghui, rather than succumbing to pressure from US politicians who opposed the deal. Washington regulators who were reviewing the deal for national security issues quietly approved the sale just before the weekend, providing a nice gift for Shuanghui for the upcoming Mid-Autumn and Chinese National Day holidays. (English article) But more importantly, approval of the deal sends an important message that the US wants to promote fair and free trade with China, and won’t play the kinds of political tit-for-tat games that often happen during trade disputes. Read Full Post…
