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: 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…

INTERNET: Baidu’s Woes Grow, A China Opening for Bing or Yahoo?

Bottom line: Baidu will suffer more damage to its revenue and profits after new actions by China’s Cyberspace Administration, creating a potential opportunity for Bing or even Yahoo in China’s lucrative search market.

Baidu’s search woes offer opportunity for Bing, Yahoo

The woes for Internet search giant Baidu (Nasdaq: BIDU) continue, with word that China’s Internet censor is ordering the already hobbled company to cleanse itself of inappropriate sites in its search results. But whereas previous crackdowns have focused on politically sensitive content, this latest crackdown focuses on sites of companies that may be engaged in fraud or making inflated or bogus claims. The entire situation looks set to make a major dent in Baidu’s growth story, and could even see the company’s revenue shrink as it finds a new equilibrium. Read Full Post…

SMARTPHONES: Microsoft Puts Smartphone Bets on Xiaomi

Bottom line: Microsoft probably took a 10-20 percent stake in Xiaomi as part of the pair’s new alliance, and could use the Chinese company as its primary vehicle for participating in the mobile devices market.

Xiaomi lines up with Microsoft

The high-tech world is buzzing today with news of a major new tie-up between Microsoft (Nasdaq: MSFT) and struggling smartphone maker Xiaomi, in a pairing that has interesting implications on many levels. At the biggest level, this alliance looks strikingly similar to an earlier one that ultimately saw Microsoft purchase the core smartphone business of former global leader Nokia. At another level, the alliance could give Xiaomi a powerful ally to help revive its fading fortunes, including a partner that could help it to move into the lucrative but difficult US market. Read Full Post…