Tag Archives: Microsoft

Get the latest financial and business news of Microsoft in China, overview of Business expert Doug Young based in China (Shanghai).

INTERNET: Tencent Moves Up Value Chain, Opens Seattle Lab

Bottom line: Tencent’s soaring market value reflects its leading position as a developer of social networking products, and its concurrent ability to monetize those products.

Tencent opens A1 lab in Seattle

It seems that Internet titan Tencent (HKEx: 700) can do no wrong these days, at least based on a recent run-up in its share price. Just a couple of weeks after China’s Internet wunderkind passed US banking giant Wells Fargo (NYSE: WFC) to become the world’s 10th most valuable company, Tencent has just passed another milestone to become officially become worth more than $300 billion. (English article)

Of course all of this is just movement based on investor belief that the company’s prospects look rosy. In this case I would have to agree, though I might also argue the 10 percent rise in its share price over the last month may look a little too aggressive. At the same time, Tencent has also just announced its opening of an artificial intelligence (AI) lab in Seattle, joining Internet rival Baidu (Nasdaq: BIDU) in the race to see who can delve the fastest into an area that’s become a daily buzz word for Chinese media. Read Full Post…

INTERNET: Baidu’s AI Obsession Spawns New Silicon Valley Center

Bottom line: Baidu’s opening of a new artificial intelligence lab in Silicon Valley is the latest move in its AI obsession, which is likely to end in failure and a quiet pullback in around two years due to mediocre execution.

Baidu in new Silicon Valley R&D lab

I’m officially dubbing Baidu (Nasdaq: BIDU) chief executive Robin Li the “two-year attention span man”, with word that the company is setting up a new Silicon Valley office in the rush to build up its artificial intelligence (AI) capabilities. If any one of China’s “big three” Internet chiefs deserves the title of “short attention span” man, it’s most definitely Robin Li. As far as I can remember, Li has been a “flavor of the moment” guy who fixates on the latest daily hot trend, most often to jettison the idea around 2 years later when it falls out of fashion. Read Full Post…

INTERNET: Huawei, Microsoft in Symbolic Cybersecurity Alliance

Bottom line: A new PR campaign by Huawei and Microsoft to ease Washington and Beijing cybersecurity concerns that are hurting their cross-border business will have limited impact, and what’s really needed is better technology to prevent against hacking.

Huawei, Microsoft in odd new alliance

The growing paranoia in Beijing and Washington over cybersecurity threats is creating odd bedfellows of two of the world’s leading tech companies on opposite sides of the Great Firewall of China. That pairing is bringing together software giant Microsoft (Nasdaq: MSFT), one of the biggest China boosters among US tech firms, with Huawei, a globally ambitious Chinese company that would desperately like to enter the lucrative US market for telecoms networking equipment. Read Full Post…

China News Digest: September 14, 2016

The following press releases and news reports about China companies were carried on September 14. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • China Postal Savings Bank $8.1 Bln IPO Mostly Covered by Cornerstone Investors (English article)
  • LeEco (Shenzhen: 300104) Launches Smartphones in Russia (Chinese article)
  • Microsoft (Nasdaq: MSFT), Huawei Join in Cybersecurity Message (English article)
  • NetEase (Nasdaq: NTES) Plans to Spin Off News Unit for IPO or Sell for $300 Mln (Chinese article)
  • Second-Hand Car Site Guazi Raises $250 Mln, to Spend 1 Bln Yuan on Ads (Chinese article)

INTERNET: Microsoft in New China Tack with MSN Spin-Off

Bottom line: Microsoft’s spin off of its MSN China portal to a management-led group looks similar to the sale of its cellphone patent portfolio to Xiaomi, and is aimed at handing off underperforming assets to strategic partners.

Microsoft spins off MSN China

Microsoft (Nasdaq: MSFT) chief executive Satya Nadella is making one of his biggest strategic moves in China two years after taking over as head of the company, with word that the software giant is spinning off its local MSN web portal to a management-led group. This particular development actually first surfaced back in May, when reports emerged that Microsoft planned to closed down the Chinese version of its MSN portal that is a central part of its global Internet strategy. Apparently those reports were premature, and the company instead will continue to operate this meager part of its China Internet presence through a third-party partner. Read Full Post…

China News Digest: August 30, 2016

The following press releases and news reports about China companies were carried on August 30. To view a full article or story, click on the link next to the headline.
══════════════════════════════════════════════

  • Microsoft’s (Nasdaq: MSFT) MSN China Portal in Management-Led Buyout (Chinese article)
  • Russo Bros in Talks With Huayi Bros (Shenzhen: 300027) for Partnership (English article)
  • Baoneng (Shenzhen: 000690) Pays 882 Mln Yuan for 26.4 Pct of Dating Site Baihe (Chinese article)
  • Minsheng Bank (HKEx: 1988) Announces Interim Results (HKEx announcement)
  • Private-Equity Firm General Atlantic, Ctrip (Nasdaq: CTRP) in New $400 Mln Fund (English article)
  • Latest calendar for Q2 earnings reports (Earnings calendar)

SMARTPHONES: Xiaomi Eyes US, Following Microsoft Alliance

Bottom line: Xiaomi could launch in the US within the next 12 months and benefit from its recent tie-up with Microsoft, but it will face a big uphill battle due to stiff competition, lack of name recognition and unexciting models.

Xiaomi eyes US — again

Following several recent false starts, fading Chinese smartphone sensation Xiaomi is saying it’s aiming to enter the tough US market soon. We’ve heard similar talk before, and at one time such a move would have been quite exciting and controversial when some were comparing Xiaomi to a China’s homegrown answer to Apple (Nasadq: AAPL). But Xiaomi’s star has faded considerably over the last year, partly due to intense competition in China but just as much due to a reputation for shoddy quality and unexciting phones. Read Full Post…

IPOs: Meitu Eyes HK, US Ad Firm Media.net Goes to China

Bottom line: Meitu’s Hong Kong IPO plan is likely to get a positive reception due to strong sentiment for Chinese tech companies, while a plan to list US-focused Media.net in China via a backdoor IPO is likely to fail  due to numerous obstacles.

Meitu eyes HK listing by year end

A couple of IPO stories are in the headlines, including what could become the largest listing for a Chinese tech firm this year by Meitu, operator of an app that helps users make self-enhanced selfies. The other deal looks quite unusual, and has a Chinese investor group buying US advertising services startup Media.net, with plans to list the company in China through a backdoor-style process. In all my years covering China this is the first time I’ve seen this kind of deal, which looks both interesting but also quite speculative.

Each of these deals is quite different, and both have one or two notable points. Meitu looks most notable not only for its size, which could be up to $1 billion, but also for its location. IPOs for this kind of high-tech company have traditionally come in New York, and more recently on China’s Nasdaq-style ChiNext board, but are seldom seen in Hong Kong.  Read Full Post…

INTERNET: Alibaba Pushes Cloud, Finance Outside China

Bottom line: New global initiatives by Alibaba’s cloud and electronic payments affiliates look smart by targeting Chinese customers abroad, but may only stand a 50-50 chance of longer-term success due to fierce global competition.

AliCloud global expansion moves ahead

Following lackluster results for initiatives involving its core e-commerce business outside China, Alibaba (NYSE: BABA) is pushing ahead on the global stage with new moves for 2 of its other areas with big growth potential. One of those has the company unveiling a global strategy for its cloud services unit, AliCloud, which includes a tie-up with former Taiwan smartphone superstar HTC (Taipei: 2498). The other involves Alibaba’s Ant Financial affiliate, which is rolling out its core Alipay electronic payments service in Europe. Read Full Post…

INTERNET: Baidu Maps South America as Rio Games Near

Bottom line: Baidu’s rapid expansion of its global mapping services is mostly targeted at Chinese traveling abroad, and is unlikely to attract many local users because better services are already available in most markets.

Baidu maps South America
Baidu maps South America

Still suffering from a spate of negative news at home, leading search engine Baidu (Nasdaq: BIDU) is trying to draw attention to the more upbeat subject of its global expansion that is slowly inching forward. The company has squarely focused its global drive on emerging markets, and is continuing that trend with word that it’s launching new editions of its mapping services for most of South America. Baidu has already launched a version of its core search business in Brazil, and many will probably view this move to launch mapping services in 13 countries as a prelude to future launches for search service in those markets. Read Full Post…

TELECOMS: Inspur Wins Big New Partner with Ericsson Tie-Up

Bottom line: Ericsson’s new tie-up with Inspur looks like a savvy move to gain a foothold in the nation’s fast-growing market to supply infrastructure to power Internet-related products and services.

Ericsson ties up with Inspur

Chinese IT services firm Inspur has just scored a major new partnership, with word that it’s forming a new tie-up to offer cloud and other Internet-based services with global telecoms equipment leader Ericsson. (Stockholm: ERICb). The new tie-up adds to a growing stable of similar alliances between Inspur and big-name foreign partners, following previous tie-ups with IBM (NYSE: IBM) and Cisco (Nasdaq: CSCO).

We should begin by pointing out that this kind of tie-up isn’t that uncommon for big foreign high-tech names, since Beijing often prefers that such companies form joint ventures for doing business in the vast Chinese market. That drive for tie-ups has accelerated over the last year, following Beijing’s roll-out of a new national security law that requires foreign high-tech product makers to work with Chinese partners when selling to the government or big state-owned companies. Read Full Post…