The following press releases and media reports about Chinese companies were carried on September 4. To view a full article or story, click on the link next to the headline.
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China To Limit Foreign Content To No More Than 30 Pct For Online Video Sites (Chinese article)
Boeing (NYSE: BA) Raises China Plane Forecast 8 Pct As Overseas Travel Grows (English article)
Google (Nasdaq: GOOG) In Content Deal With 9 Domestic Art Organizations (English article)
Gome (HKEx: 493) Opens E-Commerce Platform, No Commissions For 1st Year (Chinese article)
People like myself who were holding out big hopes for a new crop of private firms challenging the 3 big state telcos will be disappointed to learn that the group of virtual network operators (VNOs) are off to a glacially slow start, boding poorly for the program. It’s obviously way too early to call the program a failure, since it’s only 3 months since the first private VNOs were launched. To consumers these VNOs look the same and offer similar services to the 3 existing state-run telcos. But the VNOs don’t actually own any telecoms networks, and instead must lease network capacity from the traditional carriers. Read Full Post…
The following press releases and media reports about Chinese companies were carried on March 22-24. To view a full article or story, click on the link next to the headline.
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EU, China End Wine Dispute Ahead Of Xi’s European Tour (English article)
The following press releases and media reports about Chinese companies were carried on January 30. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: (992) To Buy Google’s Motorola In China’s Largest Tech Deal (English article)
ICBC (HKEx: 1398) To Buy Control Of Standard Bank Unit For $765 Mln (English article)
500.com (NYSE: WBAI), China Mobile (HKEx: 941) In Strategic Partnership (PRNewswire)
MIIT Gives 2nd Round Of VNO Licenses, Winners Include Suning, Gome (Chinese article)
Buffett-Backed Chinese Automaker BYD (HKEx: 1211) Settles US Wage Dispute (English article)
Traditional Chinese appliance makers are showing a sudden interest in moving outside their usual comfort zone, with word that sector giant Midea (Shenzhen: 000333) is applying for a banking license. Midea joins a fast-growing queue that has seen rivals Haier (HKEx: 1169) and Gree (Shenzhen: 000651) make similar moves outside their traditional areas, in what looks to me like a typical herd mentality that one often sees in Chinese industries.
In this case the urgency to diversify doesn’t seem that critical, since I don’t expect consumer demand for big appliances like air conditioners and refrigerators to fade anytime soon. That contrasts sharply with a parallel diversification drive in the traditional retailing sector, where companies like electronics seller Gome (HKEx: 493) and supermarket operator Wumart (HKEx: 1025) are facing an unprecedented challenge from a new generation of e-commerce firms like Jingdong and Yihaodian. Read Full Post…
The latest signals coming from former electronics retailing high-flyer Gome (HKEx: 493) are a bit confusing, reflecting the fast change of pace in China’s retail environment. I also get a slight sense of desperation in the latest news that Gome will close 50 stores in top-tier cities this year, as it explores an odd-looking partnership with Wumart (HKEx: 1025), a mid-sized supermarket chain. It has now been nearly 5 years since Bain Capital purchased a 10 percent stake of Gome, and I suspect the US equity giant is getting restless with the investment and looking for reasons to sell it. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 14. To view a full article or story, click on the link next to the headline.
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China Mobile (HKEx: 941) Announces 4G Packages (Chinese article)
Gome (HKEx: 493) To Close 50 Stores, In Talks With Wumart (HKEx: 1025) (Chinese article)
App Store Operator Wandoujia Secures $120 Mln Funding From Softbank (English article)
It’s quiet outside as markets reopen on this first work day after the New Year, so I thought I’d start off 2014 with some predictions for the year ahead in the sectors that I cover. Generally speaking, I do think the first half of the year will see a continuation of strong momentum that began in late 2013 for many sectors. But that momentum will slow as we near the mid-year mark, and 2014 could end with a whimper as the Chinese economy continues to slow and Beijing pushes for higher quality growth. Read Full Post…
After moving extremely slowly throughout the year, the telecoms regulator is suddenly surprising everyone with a flurry of major new announcements in the final weeks of 2013. First the Ministry of Industry and Information Technology (MIIT) issued long-awaited 4G wireless licenses earlier this month, and now we’re learning that it has just issued its first batch of virtual network operator (VNO) licenses. This sudden issue of VNO licenses comes as a bit of a surprise, since there were no advance indications for the timing and many believed the MIIT wouldn’t make the move until next spring. Read Full Post…
Sometimes it seems like I’m living in slow motion when I write about China telecoms, since major developments in the sector often drag on for months past their expected launch dates. That’s been the case for 3 major new initiatives that could inject important new life into the space, even though rumored launch dates for all 3 have passed numerous times. The latest news bits on all 3 indicate things are still moving ahead, meaning perhaps we will someday soon see the announcement of licenses for 4G mobile service and new virtual network operators (VNOs), as well as the launch of a new national broadband network operator.Read Full Post…
October is quickly shaping up as a Golden Telecoms Month for China, with a growing number of major events looking set to take place in the month that starts off with the October 1 Golden Week holiday. Major developments that look likely to occur next month include the long-awaited awarding of 4G mobile licenses, and the announcement of another highly-anticipated deal that would see dominant telco China Mobile (HKEx: 941; NYSE: CHL) finally offer an Apple (Nasdaq: AAPL) iPhone on its network. But perhaps the biggest development for the month could see China’s telecoms regulator announce its first round of highly anticipated licenses for up to 6 new “virtual telcos”, known in the industry as virtual network operators (VNOs). Read Full Post…
