A rapidly evolving pilot program that should see at least 6 virtual network operators (VNOs) enter China’s telecoms space this year has everyone chattering about who the first operators might be, with Internet leader Tencent (HKEx: 700) mentioned as one of the most likely candidates. Tencent hasn’t really commented on its intent, though it’s certainly an intriguing possibility, especially against the backdrop of the company’s recent high-profile spat with leading mobile carrier China Mobile (HKEx: 941; NYSE: CHL). I’ll take a look more closely at this element shortly, but first let’s take a step back and check out the latest big-picture news involving the biggest opening in years for China’s sensitive telecoms sector.
Tag Archives: China company stock news
Group Buy Site 24Quan Quits 团购网站24券关门
After taking a temporary “excursion” offline due to a dispute with its investors in October, mid-sized group buying site 24Quan has decided to make the trip permanent by closing down, in the latest wrinkle of a painful restructuring in the overcrowded space. This latest development shouldn’t come as a surprise to anyone, following the site’s suspension of service 3 months ago despite its promises to reopen once it resolved its problems. (previous post) Now it seems the company’s managers couldn’t resolve those differences with investors, prompting 24Quan’s CEO to confirm that his company has officially closed its doors permanently.
Alibaba Reorganizes, Jingdong Delays IPO 阿里巴巴重组，京东推迟上市
E-commerce leader Alibaba is quickly discovering that being big has its benefits, but it also comes with many challenges — a fact that’s reflected in a recent series of major reorganizations aimed at making the company more efficient. Meantime, Alibaba’s top rival Jingdong Mall is also grappling with its own issues, most notably its inability to earn a profit, which may be the reason behind its latest proclamation that it won’t make an initial public offering until 2015 at the earliest. Alibaba’s latest major restructure and Jingdong’s delay of its IPO plans are largely unrelated; but both developments do reflect the fact that each company has become quite large and diverse and needs some organizational makeover to maximize its appeal to investors before planned IPOs.
News Digest: January 11 报摘：2013年1月11日
The following press releases and media reports about Chinese companies were carried on January 11. To view a full article or story, click on the link next to the headline.
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- Alibaba Group Reorganizes into 25 Business Units (English article)
- Founder of Group Buying Site 24Quan Confirms Company Has Closed (Chinese article)
- Apple’s (Nasdaq: AAPL) Tim Cook Meets With China Mobile (HKEx: 941) Chmn (English article)
- Tencent (HKEx: 700) to Fully Open Cloud Service (English article)
- Morgan Stanley (NYSE: MS) Buys 7.1 Pct of Youku Tudou (NYSE: YOKU) (Chinese article)
HSBC’s Ping An Stake Sale Unravels 汇丰出售平安股份受挫
The slow-motion collapse this week of HSBC’s (HKEx: 5; London: HSBA) plans to sell its stake in Ping An Insurance (HKEx: 2318; Shanghai: 601318) is shining a harsh spotlight on the big role that politics can play in deals involving major Chinese companies. The case is particularly interesting because it also shows how this kind of Chinese politics can quickly cost investors billions of dollars, since Ping An’s shares have dropped sharply as it looks increasingly likely the deal will collapse. Ping An’s Hong Kong-listed shares lost more than 6 percent of their value early this week after news of the deal’s potential collapse first emerged, though they’ve regained some of the ground since then.
Smartphones: Xiaomi Sales, ZTE Tie-Up 小米迅速成长 中兴另辟蹊径
A couple of news bits from the smartphone space are shining a spotlight on 2 very different stories in the sector, with up-and-comer Xiaomi’s young but rapid growth moving ahead, while a struggling much larger ZTE (HKEx: 763) is trying a new approach to win more overseas business. The only common theme to these 2 different stories is the lightning pace of change that has developed in the dynamic smartphone space, where a manufacturer can now go from startup to superstar to laggard status in very short time.
News Digest: January 10 报摘：2013年1月10日
The following press releases and media reports about Chinese companies were carried on January 10. To view a full article or story, click on the link next to the headline.
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- Liu Qiangdong: Jingdong Mall Won’t Make IPO Before 2015 (Chinese article)
- China’s Insurance Regulator To Reject $9.4 Bln HSBC (HKEx: 5) Deal: Reports (English article)
- Xiaomi Sells 7 Mln Smartphones in 2012 (English article)
- ZTE (HKEx: 763), Telstra Launch Easy UI Customization for Global Operators (Businesswire)
- Apple (Nasdaq: AAPL) CEO Cook Visits China Unicom (HKEx: 762) This Morning (Chinese article)
Dangdang, Vancl in Overhauls 当当网转型 凡客诚品瘦身
Media are reporting that online retailers Dangdang (NYSE: DANG) is launching a major overhaul and Vancl is facing issues from its own big retrenchment, as each searches for elusive profits that have become increasingly hard to find in the current cutthroat e-commerce space. In Dangdang’s case, the company is attempting to focus on several key product groups, giving up its previous aim of becoming a general merchandise giant like Amazon (Nasdaq: AMZN). Meantime, online clothing retailer Vancl’s own ongoing slimming exercise has left it so lean that it is reportedly running into logistical problems that are resulting in delayed shipments to some of its customers. All of this reflects just how difficult China’s e-commerce environment has become, with most companies resorting to desperate measures in their bids to conserve cash and become profitable in the ultra-competitive space.
China Scandal Takes Bite Out of Yum 中国食品丑闻让百胜很受伤
Two news items from the retail space are showing how China remains a challenging and competitive market despite its huge potential, with KFC operator Yum Brands (NYSE: YUM) and German retailer Metro (Frankfurt: MEO) both suffering setbacks for different reasons. In Yum’s case, the company is quickly discovering the meaning of the word “saturation”, as its rapid expansion in China has forced it to open restaurants in less profitable locations that are ultimately hurting its performance. Adding to its woes, KFC recently found itself at the center of China’s latest food safety scandal, which I’ll discuss shortly. In Metro’s case, the company simply discovered that the Chinese retail market is quite competitive, especially in the electronics space where Metro was trying to find a niche in a partnership with the consumer products unit of Taiwanese manufacturing giant Hon Hai (Taipei: 2317).
Apple’s Cook Meets China Regulators 苹果CEO库克会见中国工信部部长
It may be cold and wintry in Beijing as the Year of the Snake approaches, but that isn’t stopping some of the world’s top high-tech CEOs from passing through the Chinese capital in pursuit of their own varied agendas. First Google (Nasdaq: GOOG) Chairman Eric Schmidt made a high-profile stop in Beijing en route to a visit to North Korea, and now we’re learning that Apple (Nasdaq: AAPL) CEO Tim Cook has also come calling on the nation’s capital this week. But whereas Schmidt’s visit seemed a bit whimsical to me, Cook’s trip looks much more practical, including an all-important stop at the nation’s telecoms regulator, the Ministry of Industry and Information Technology (MIIT). (Chinese article)
Apple’s Cook Meets China Regulators
It may be cold and wintry in Beijing as the Year of the Snake approaches, but that isn’t stopping some of the world’s top high-tech CEOs from passing through the Chinese capital in pursuit of their own varied agendas. First Google (Nasdaq: GOOG) Chairman Eric Schmidt made a high-profile stop in Beijing en route to a visit to North Korea, and now we’re learning that Apple (Nasdaq: AAPL) CEO Tim Cook has also come calling on the nation’s capital this week. But whereas Schmidt’s visit seemed a bit whimsical to me, Cook’s trip looks much more practical, including an all-important stop at the nation’s telecoms regulator, the Ministry of Industry and Information Technology (MIIT). (Chinese article)
