The following press releases and news reports about China companies were carried on October 11. To view a full article or story, click on the link next to the headline.
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ZTO Express Files Prospectus for NY IPO to Raise up to $150 Mln (Chinese article)
Shared Bike Service Ofo Raises $130 Mln, to Work With Xiaomi, Didi (Chinese article)
China Unicom (HKEx: 762) Says Studying Mixed Ownership Reform Program (HKEx announcement)
SMG’s BesTV Enters Strategic Partnership with NBA (Chinese article)
Hollysys (Nasdaq: HOLI) to Pay a Regular Annual Dividend for 2016 (PRNewswire)
Bottom line: A rumored Chinese purchase of 80 percent of AC Milan, together with a new Chinese soccer buy in Australia and NBA purchase in the US, show a recent Chinese buying spree of western sports teams continues to gain momentum.
China in 3 new foreign sports team investments
China’s roll into western sports teams continues, led by word that a Chinese group including Baidu’s (Nasdaq: BIDU) chief Robin Li is on the cusp of a deal to buy 80 percent of soccer club AC Milan for 750 million euros. But that group isn’t the only one making soccer headlines, as a Shenzhen businessman has also reportedly bought Australia’s Newcastle United Jets club. And my prediction that someone in China would make a bid for an NBA club in the US is also in the news, with word that a businessman from southern Fujian province has purchased a small stake in the Minnesota Timberwolves. Read Full Post…
Bottom line: A recent spree of European soccer purchases by Chinese buyers could auger a similar bid for an NBA team in the next 1-3 years, with Alibaba and Wanda as 2 of the most likely buyers.
Alibaba in talks for FIFA sponsorship
A recent stream of global sports investments from China has bounced back into the headlines, with word that e-commerce juggernaut Alibaba (NYSE: BABA) is near a major sponsorship deal with soccer giant FIFA, even as a Chinese businessman has just signed a separate deal to buy British club Aston Villa. The 2 latest deals spotlight China’s sudden fascination with global sports, as millions of Chinese embrace these globally famous names over local leagues that are far less professional and tainted by corruption scandals.
Nearly all of the deals to date have been focused in Europe and on soccer, which is hugely popular in China. But basketball is equally popular in the world’s most populous country, which raises the intriguing question of when we might see a Chinese buyer bid for an NBA team, in what would be a first-of-its kind deal sure to make global headlines. Read Full Post…
There are at least three ways Netflix (Nasdaq: NFLX) can win in China. And they are realistic options that have worked for others.
But first, a few points about the situation in Chinese online streaming.
Point 1: The China entertainment market is rocketing upwards, and it will soon be the largest in the world. This huge opportunity is fueling a major fight between China’s cash-rich Internet and media giants. This hyper-competition is also creating a window of opportunity for Netflix because it has valuable things to offer to these competitors as they slug it out.
Point 2: Online media in China is very political and likely no foreign company will have control of a license or broadcast rights. So Netflix needs to be realistic about what is possible.
Point 3: The other big issue is the strong local competition. If Netflix wants to win in online streaming in China, they need to be prepared to fight for a long time.
Bottom line: LeTV’s strong smartphone launch shows that stiff competition in China won’t ease soon, which could push Lenovo’s mobile operations further into the red and prompt ZTE to further lighten its efforts in the market.
LeTV smartphones make strong debut
A series of smartphone items are in the headlines as we close out the week, spotlighting the tough situation in a China market that is at once the world’s largest but also extremely competitive. That competition just got a bit louder, with the first headline that says new arrival LeTV (Shenzhen: 300104) debuted quite strongly with when its first smartphone models went on sale this week. Meantime, industry stalwarts Lenovo (HKEx: 992) and ZTE (HKEx: 763; Shenzhen: 000063) continue to reflect the stresses of selling in China, with the former posting a big loss for its mobile business last year while the latter continues to lighten its reliance on the market by looking for growth in the US. Read Full Post…
The following press releases and media reports about Chinese companies were carried on May 22. To view a full article or story, click on the link next to the headline.
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Tsinghua Unigroup To Buy 51 Pct of HP’s (NYSE: HPQ) H3C For $2.5 Bln or More (Chinese article)
Bank Of China (HKEx: 3988) Weighs Overhaul For BOCHK (HKEx: 2388) Unit (HKEx announcement)
Lenovo (HKEx: 992) Reports Results For Quarter Ended March 31 (HKEx announcement)
Bottom line: Huawei could make significant progress in the US smartphone market this year if it devotes more resources to the campaign, while LeTV’s smartphone foray looks necessary but could face difficulty due to stiff competition.
Huawei to step up US smartphone campaign
Rapid developments in the smartphone space are showing no sign of slowing in the New Year, with the latest reports that stalwart Huawei is preparing for a major new push in the US, as online video specialist LeTV (Shenzhen: 300104) prepares its own campaign to enter the crowded arena. Of these 2 news bits, the Huawei one looks like the most significant, as it will see the company make a major play at a US market that is the world’s largest but has been elusive for the Chinese telecoms giant. LeTV previously hinted at its plans to enter the crowded smartphone space, and its relatively late arrival means its endeavor in the crowded field could ultimately fail. Read Full Post…
