Bottom line: Chinese companies need to become more proactive in ending practices that harm consumers, or risk facing pressure from regulators and hurting their prospects for expansion abroad.
A campaign requiring all mobile phone users to register with their real names was in the headlines for much of last week, in the latest step to curtail rampant phone fraud in China that has grabbed recent attention due to several high-profile cases. Notably, the real-name registration drive was led by 6 government ministries, rather than the nation’s 3 major wireless carriers whose networks are the primary platform for committing most of the fraud.
Both the government and carriers have known about this kind of fraud for years, but did little to aggressively tackle the problem until the recent wave of negative publicity. Read Full Post…
Bottom line: Tencent’s new crown as Asia’s most valuable company reflects the rapid growth of China’s private sector in the last decade, and could auger an eventual challenge to global social networking leader Facebook.
Media are fawning on Chinese Internet sensation Tencent (HKEx: 700), which has just edged past telecoms giant China Mobile (HKEx: 941; NYSE: CHL) to become the nation’s most valuable publicly traded company. Such a feat would have been unthinkable a decade ago, when the nation’s private sector was still in its infancy and state-run monoliths like China Mobile still dominated China’s corporate landscape. But much has changed over the last 10 years, and Tencent in many ways reflects the huge potential that investors see in a Chinese private sector that has come to dominate many emerging industries like Internet-based products and services. Read Full Post…
Bottom line: China Mobile and its peers could take a big hit to their voice call revenues as they roll-out anti-fraud systems to counter negative publicity, while Alibaba could suffer similar but smaller impact to its pre-paid phone card business.
The same week it officially lost its crown as China’s most valuable listed company, China Mobile (HKEx: 941; NYSE: CHL) is back in the headlines with more bad news related to a swell of publicity involving the nation’s rampant phone fraud. Normally I might dismiss this story, since phone fraud has been common in China for years and is really nothing new. But another similar case this year ended up becoming a huge headache Baidu (Nasdaq: BIDU), and cost the online search giant huge sums in both market value and lost revenue. Read Full Post…
The following press releases and news reports about China companies were carried on September 8. To view a full article or story, click on the link next to the headline.
Oppo Becomes Major Southeast Asia Smartphone Player, Xiaomi Enters India Top 3 (Chinese article)
SocGen (Paris: SOGN ) in Talks to Sell 49 Pct of China Asset Manager to Warburg (English article)
China Mobile (HKEx: 941) Installs Phone Scam Warning System in Inner Mongolia (Chinese article)
Ctrip (Nasdaq: CTRP) Announces Pricing of Offering of ADSs (PRNewswire)
The following press releases and news reports about China companies were carried on September 6. To view a full article or story, click on the link next to the headline.
Alibaba (NYSE: BABA) Starts Selling Down Meituan-Dianping Stake (Chinese article)
Tencent (HKEx: 700) Passes China Mobile to Become Asia’s Most Valuable Firm (Chinese article)
LeEco (Shenzhen: 300104) Says Car Unit to Reach Volume Production in 3 Years (Chinese article)
O2O Grocery Platform Huimin Secures 1.3 Bln Yuan Series B Funding (English article)
Following signs earlier this year that they were resisting a call to end to domestic roaming fees, China’s big 3 wireless carriers are finally reversing course and bowing to pressure from the telecoms regulator to follow a practice already common in much of the world. But leading telco China Mobile (HKEx: 941; NYSE: CHL) is taking its time making the transition, saying it will gradually phase out such fees over the next 2 years. Smaller rival China Telecom (HKEx: 728; NYSE: CHA) appears to be moving more quickly, while the perpetually befuddled China Unicom (HKEx: 762; NYSE: CHU) has yet to state its policy on the issue. Read Full Post…
The following press releases and news reports about China companies were carried on August 13-15. To view a full article or story, click on the link next to the headline.
China Film (Shanghai: 600977) Jumps 91 Pct in 1st Week After Record Entertainment IPO (English article)
McDonald’s (NYSE: MCD) to Stop Using Antibiotic Food in US, No Word on China (Chinese article)
E-House (NYSE: EJ) Announces Completion of Merger (PRNewswire)
China Mobile (HKEx: 941) to Eliminate Domestic Roaming Fees by Year End (Chinese article)
Bottom line: China Mobile’s strong profit growth shows the company has executed well on its 4G strategy, including strong promotion of data services that have rapidly become its single largest revenue source.
After a bumpy period over the last 2 years as it rolled out its new 4G network, leading wireless carrier China Mobile (HKEx: 941; NYSE: CHL) is finally reaping strong results from its efforts with some of the best profit growth I’ve seen in a long time. The company has just reported its interim results, which show that its profit jumped an impressive 9.2 percent in the second quarter, as it took advantage of its early entry to 4G to consolidate its place as the nation’s leading telco. Read Full Post…
The following press releases and news reports about China companies were carried on August 11. To view a full article or story, click on the link next to the headline.
Alibaba (NYSE: BABA) Announces June Quarter 2016 Results (Businesswire)
Yihaodian Launches 1 Bln Yuan Price War Against Tmall Supermarket (Chinese article)
Bottom line: China Telecom’s cancellation of roaming fees and focus on the Internet of Things signal it wants to become a leader and aggressively roll out new services under its new chairman Yang Jie.
Just days after receiving a vote of confidence by a major global investor, China’s smallest mobile carrier China Telecom(HKEx: 728; NYSE: CHL) is showing new signs of life that make it look a potential company to watch among the nation’s stodgy big 3 teclos. Those signs are coming in one of the first major speeches from China Telecom’s new chief, who says the telco will become China’s first to eliminate domestic roaming fees, a move that was long overdue but has been strongly resisted by the sector. At the same time, Yang Jie is saying China Telecom will place strong emphasis on Internet of Things services, which many believe are the wave of the future. Read Full Post…
Bottom line: GIC’s investment in China Telecom represents a vote of confidence in the company over the next 2 years, as it makes strong gains in 4G and data services and could become more aggressive under new leadership.
China’s smallest wireless carrier China Telecom(HKEx: 728; NYSE: CHA) has just received a vote of confidence from one of the world’s better-known global investors, with the new disclosure that Singaporean sovereign wealth fund GIC has purchased 5 percent of the telco’s Hong Kong-listed shares. That decision comes amid mixed signals coming from China Telecom, which has just received new leadership after its former chairman was booted out for corruption. On a more positive note, China Telecom has been posting strong growth in its year-old 4G business, though the foundation for that growth was largely laid by yet another previous leader who left the company about a year ago. Read Full Post…