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.
Tag Archives: China company stock news
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)
Cars: Volvo Sputters, GM Sails 中国汽车市场：沃尔沃遇阻 通用启航
The latest auto news bits show that domestic nameplate Geely (HKEx: 175) continues to struggle with its plans to resuscitate its Volvo brand, while General Motors (NYSE: GM) is banking on rapid growth for low-end cars to consolidate its position as China’s market leader. Meantime, I’d be remiss not to mention the latest news coming from sputtering domestic automaker Chery, which has disclosed its controversial plan for a joint venture with luxury car maker Jaguar Land Rover has just been approved by the key state regulator.
Sohu Video, Qunar in IPO Marches 搜狐视频、去哪儿网加紧上市步伐
The latest news bits indicate the video sharing unit of web portal Sohu (Nasdaq: SOHU) and online travel services firm Qunar are both marching rapidly towards overseas IPOs, with both companies positioning themselves to move quickly if and when the current market freeze ever eases. Sohu has been saying for much of the last year that it wants to spin off its video unit into a stand-alone company for an eventual overseas listing, and now the company has formally separated the unit’s sales force into a separate entity. (Chinese article) Meantime, domestic media are also quoting a top executive of Qunar, which is backed by online search leader Baidu (Nasdaq: BIDU), as saying his company has passed industry leader Ctrip (Nasdaq: CTRP) in air ticket sales, in what sounds like a drive to raise the company’s profile in the run-up to its own IPO. (English article; Chinese article)
Microsoft Targets SOE Pirates 微软打击国有企业盗版
Despite Beijing’s repeated efforts to stamp out piracy, the problem remains a major one in China, with companies large and small, public and private still engaging in a practice that costs software makers billions of dollars in lost sales each year. The magnitude of the problem was on prominent display last week when reports emerged that Microsoft was seeking Beijing’s help to get four major companies, including the parent of PetroChina (HKEx: 857; Shanghai: 601857; NYSE: PTR), to stop using pirated copies of its popular Office software suite.
News Digest: September 22-24, 2012 报摘： 2012年9月22-24日
The following press releases and media reports about Chinese companies were carried on September 22-24. To view a full article or story, click on the link next to the headline.
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- Microsoft Asks PetroChina (HKEx: 857), Others to Stop Using Pirated Office – Sources (Chinese article)
- Qunar Monthly Air Ticketing Revenue Surpasses Ctrip (Nasdaq: CTRP) (English article)
- Volvo Cars Likely to Miss 2015 China Sales Goal: CEO (English article)
- Suntech (NYSE: STP) Receives Continued Listing Standards Notice from NYSE (PRNewswire)
- Panasonic (Tokyo: 6752) Details Damage to China Manufacturing Sites (Businesswire)
CNOOC’s Nexen Bid Clears One Hurdle, Faces Another 尼克森股东批准中海油收购 公众反对声音或加大
Oil exploration giant CNOOC’s (HKEx: 883) record-breaking bid for Canadian rival Nexen (Toronto: NXY) has cleared one hurdle with the Thursday approval of the deal by Nexen shareholders, even as a much bigger obstacle looms in the realm of public opinion where opposition appears to be building. Public opinion could be a major factor that ultimately decides the fate of this deal, which still needs approval from a Canadian administration that has said it will consider national sentiment before making its final decision.
Solar Companies “Right-Size” 太阳能企业“精简规模”
Traditional consolidation in industries suffering from overcapacity typically sees stronger companies merge and weaker ones close, resulting in a healthier, more sustainable sector where everyone is profitable. But such conventional “right sizing” is less common in China, where struggling companies in strategic industries are often kept alive through financial and other support from local governments that are highly reluctant to let those ventures simply fail or be purchased by outsiders. Such artificial support may save jobs, but it does nothing to solve the overcapacity problem that created the need for consolidation in the first place. That’s exactly the dilemma facing China’s struggling solar sector, which is now posting huge losses even though we’ve yet to see players close or merge despite a flurry of such activity in the West. In the absence of proper consolidation, Chinese companies appear to be taking the next-best logical step by shuttering idle capacity and implementing massive layoffs in a bid to stem their losses, according to one report. (English article)
China Internet: Money in Russia, Sex Toys 京东商城拟开拓俄罗斯市场 成人用品网站获大笔融资
I’ll close out this week with a couple of interesting Internet items, including one that has overheated e-commerce giant Jingdong Mall looking at expansion into Russia and the other that has a sex toy site getting a nice chunk of new funding. It seems China’s Internet and the big growth opportunities it offers aren’t just for kids! Let’s start with the Jingdong news, as that’s probably the more significant of the 2 developments since it involves the company’s first foray outside its home China market.
