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Journalist China
Business news from China By Doug Young.
Doug Young, journalist, has lived and worked in China for 20 years, much of that as a journalist, writing about publicly listed Chinese companies.
He is based in Shanghai where, in addition to his role as editor of Young’s China Business Blog, he teaches financial journalism at Fudan University, one of China’s top journalism programs.
He contributes regularly to a wide range of publications in both China and the west, including Forbes, CNN, Seeking Alpha and Reuters, as well as Asia-based publications including the South China Morning Post, Global Times, Shanghai Daily and Shanghai Observer
I was disappointed but certainly not surprised to read that homegrown telecoms equipment giants Huawei and ZTE (HKEx: 763; Shenzhen: 000063) won the big majority of a major new batch of contracts from dominant wireless carrier China Mobile (HKEx: 941; NYSE: CHL) to build its 4G network. Regular readers will know that I’m a strong advocate of free trade, and believe that Chinese and western equipment sellers should receive 4G contracts in any country roughly in line with their global market share. But in China such major purchasing often has a political element, especially when the buyer is a state-run company, which is clearly the case here. Read Full Post…
New York is firmly establishing a reputation as the preferred listing venue for China Internet IPOs, while Hong Kong is developing a taste for auto-related listings. That’s my quick assessment following reports that online video sharing site Xunlei has just joined a long queue of Chinese Internet firms filing to list in New York. At nearly the same time, car rental company China Auto Rental has filed to list in Hong Kong, reversing course from a previous plan to offer shares in New York. Read Full Post…
Investors were clearly focused on the bottom line in the newly released earnings for solar panel maker Trina (NYSE: TSL) and leading microblogging site Weibo (Nasdaq: WB), which are both trying hard to show they can post consistent profits on a long-term basis. For Trina the news was strong, as the company posted its third consecutive quarterly profit after several years of losses during a prolonged sector downturn. The prognosis was less stellar for Weibo, which posted a loss for the period even though the figure showed positive trends. Read Full Post…
Two news threads that started with relatively isolated moves are showing signs of becoming trends, with word that Beijing is taking new actions against overseas tech and drug firms. In the former case, media are reporting that China is preparing to roll out new security checks for all foreign IT products, in a move that looks aimed at the computing and telecoms sectors. The latter case has media reporting that investigators have visited the offices of Swiss drug giant Roche (Switzerland: ROG), which could auger more formal moves against the company for corrupt business practices. Read Full Post…
More than 8 months after word of a potential tie-up first emerged, China’s Bright Food and leading Israeli dairy Tnuva have finally reached a deal that would see the former buy control of the latter. It’s not too surprising a deal of this magnitude took so long to conclude, and strategically such a move should be a positive development for Bright as it seeks to improve its internal management and global reach. But that said, I honestly can’t see this deal getting approved by security-obsessed Israel in its current form, which would put control of one of the country’s biggest food companies into Chinese hands. Read Full Post…
E-commerce giant JD.com (Nasdaq: JD) has formally ended its IPO process with a solid trading debut, capping a surprisingly strong performance despite signs that investors were rapidly losing interest in Chinese Internet stocks. But in a much lower profile move, smaller IPO candidate Chunkong Technology has quietly delayed its own New York offering plan, becoming the first formal casualty of fading sentiment. Chukong’s decision looks particularly significant because the company operates in the mobile gaming space, which is supposed to be one of the fastest-growth areas in China’s tech world. Read Full Post…
It seems that e-commerce giant JD.com’s decision to move slowly with its massive IPO was a good one, with word that the company’s shares have priced quite strongly in their long march to market . JD made its first public filing for a New York IPO back in early February, meaning the process of listing will have taken more than 3 months when its shares start trading on Thursday. That’s a long time in any market, and especially long for the current one where investor sentiment towards Chinese Internet IPOs was rapidly fading. Read Full Post…
When it comes to running restaurants in China, most foreign operators with any experience will say the most important step is finding the right partner to navigate both regulations and highly different tastes among Chinese diners. With that thought in mind, US restaurant stalwart The Cheesecake Factory (Nasdaq: CAKE) has picked one of the best partners possible in its newly announced decision to expand to Asia, with China as its most likely first destination. Cheesecake said it will enter the market with Maxim’s Caterers, one of Hong Kong’s most famous cake makers. Read Full Post…
Qihoo 360’s (NYSE: QIHU) controversial founder Zhou Hongyi was buzzing through the microblogging realm this week, attacking online search archrival Baidu (Nasdaq: BIDU) in one instance as he was accused by a former employee in another case of attacking Cheetah Mobile (NYSE: CMCM), a rival in the security software business. Meantime, telecoms giant Huawei was generating some rare upbeat buzz for its latest smartphone, the P7, getting several high-profile tech executives to hype the model in what looks like a page from the playbook of marketing-savvy smartphone rival Xiaomi. Read Full Post…
When the history books are written, the month of May 2014 could go down as a watershed in the Chinese battle against piracy. An obscure Shenzhen company could also be part of the story, following reports that the firm Kuaibo Technology has been fined a whopping 260 million yuan ($42 million) by the city government for repeated piracy. Then again, it’s also quite possible and likely that Kuaibo will simply shut its doors to avoid paying the fine, and then re-open nearby using another name and company registration. Read Full Post…
When it comes to the risks and rewards of doing business in China, software giant Microsoft (Nasdaq: MSFT) can write a lengthy book on the subject after years of ups and downs in the market. Just months after the company marked a modest advance with Beijing’s lifting of a decade-old ban on gaming consoles, the central government has now formally banned the installation of Microsoft’s flagship Windows 8 operating system (OS) on all government computers. It’s clear from the media reports that this ban was unexpected, though Microsoft has certainly learned to expect this kind of sudden and unexplained move after 2 decades in the market. Read Full Post…
