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Tag Archives: China Mobile
China Mobile latest Business & Financial news from Doug Young, the Expert on Chinese Companies, (former Journalist and Chief editor at Reuters in Asia)
Bottom line: China could end 2015 with up to 450 million 4G subscribers, with telcos, 4G smartphone makers and mobile-focused Internet firms most likely to benefit from the massive migration.
China Telecom targets 100 mln 4G users
China Telecom (HKEx: 728; NYSE: CHA) has just become the final of China’s big 3 telcos to announce an extremely aggressive subscriber target for its new 4G service, confirming my earlier prediction that the nation could end 2015 with as many as 450 million 4G users if everyone meets their goals. If they do reach those targets, it would represent a remarkable transformation that would see around one-third of the nation’s mobile users switching to 4G service by year end. That could provide a bonanza for not only the telcos, but also the smartphone makers and Internet service providers that would also benefit from such a mass migration. Read Full Post…
Bottom line: New data from the telecoms regulator shows that China Telecom outperformed its rivals last year, and could be set for strong growth as it consolidates around its high-speed wireless data business.
China Telecom outpaces rivals in 2014
Just a month after I expressed disappointment at China Telecom (HKEx: 728; NYSE: CHA) for its lack of focus in the era of data services, newly released year-end financial data are making me re-think my view. That data appears to portray China Telecom as a company that has made the difficult transformation from a traditional fixed-line operator to a more wireless-focused carrier, meaning it could finally be poised for some strong growth this year as it rolls out a new state-of-the-art 4G network. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 21. To view a full article or story, click on the link next to the headline.
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Itochu, Charoen (Tokyo: 8001) Pay $10.4 Bln for Stake in Citic (HKEx: 267) (English article)
China Telecom Incremental Increases Outpace China Mobile, Unicom in 2014 (Chinese article)
Spring Airlines (Shanghai: 601021) To Make Trading Debut In Shanghai (Chinese article)
New Oriental (NYSE: EDU) Announces Second Fiscal Quarter Results (PRNewswire)
Bottom line: Ctrip’s latest M&A reflects the growing scarcity of good acquisition targets for cash-rich Chinese Internet firms, which could pressure them to issue dividends or launch share buy-backs.
Ctrip makes UK acquisition
A new overseas purchase by leading online travel agent Ctrip (Nasdaq: CTRP) is drawing yawns from investors, reflecting the very real fact that Chinese Internet firms have far too much cash in their coffers and no place to spend it. This particular dilemma is one that most western companies would love to have, since excess cash can be used for not only M&A and organic expansion, but also to pay dividends or buy back shares. But in the case of Chinese companies, a big chunk of the cash has been raised in a series of massive bond and share offerings over the last 2 years, meaning it would be strange to turn around and return the money to investors through a dividend or share repurchase. Read Full Post…
Tech executives welcomed in the New Year with some intriguing hints on their microblogs, with posts suggesting major new moves in China from global media titan News Corp (Nasdsaq: NWSA) and online video operator LeTV (Shenzhen: 300104). In the former case, a local tech executive posted a photo of himself meeting with Rupert Murdoch in China, indicating the News Corp chief was back doing business in the country after a long absence. In the latter case, LeTV chief Jia Yueting was hinting that his company could soon become the latest Chinese Internet firm to enter the overheated smartphone market. Read Full Post…
Bottom line: 2015 will see an acceleration in 4G services, with China Telecom and Unicom winning commercial FDD licenses in the first quarter and 2-4 VNO licensees potentially emerging as real rivals to the big 3 telcos.
4G set to take off in 2015
A number of telecoms stories are in the headlines today, highlighting the huge hopes everyone has for new 4G services that will open up the market to a wide array of new products. Leading the headlines are word that China Telecom (HKEx: 728; NYSE: CHA) and Unicom (HKEx: 763; NYSE: CHU) have gotten the green light to expand their trial 4G networks, as the nation’s 2 smaller mobile carriers play catch-up to industry titan China Mobile (HKEx: 941; NYSE: CHL).
At the same time, another new report is showing the pathetic state of under-utilization for China Mobile’s 3G network, which uses a homegrown technology that has been plagued with problems. Finally there’s a third report saying the telecoms regulator has just issued its fifth and possibly final batch of virtual network operator (VNO) licenses, creating several dozen new carriers that will compete in in 4G by leasing capacity on the networks of the big 3 telcos. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 20-22. To view a full article or story, click on the link next to the headline.
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China’s Fosun (HKEx: 656) Raises Offer For Club Med (Paris: CU) (English article)
Waldorf Buyer Anbang Invests In Property, Banking Stakes (English article)
China Mobile (HKEx: 941) Targets 250 Mln 4G Users By End Of 2015 (Chinese article)
BYD (HKEx: 1211) Stock Rebounds, Confirms Buffett Hasn’t Sold Down Stake (Chinese article)
Ctrip (Nasdaq: CTRP) Launches Open Platform For Travel Agents (Chinese article)
Bottom line: A new management shake-up at China Telecom could hint at a coming period of instability for the company, which could hamper its performance just as it gets set to launch commercial 4G service next year.
Management shake-up at China Telecom
I’ve been quite negative on China Unicom (HKEx: 763; NYSE: CHU) for quite a while now, as China’s second largest wireless carrier seems to be constantly undergoing new management reshuffles that have hobbled its performance since its creation 5 years ago through the merger of China’s 2 smallest telcos. But now the nation’s smallest wireless carrier China Telecom (HKEx: 728; NYSE: CHA) is showing signs of similar issues, with word that the company is also undergoing its own management shake-up affecting a growing number of top provincial-level executives. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 4. To view a full article or story, click on the link next to the headline.
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China’s CGN Power Prices Hong Kong IPO At Top Of Range, Raises $3.2 Bln (English article)
JD.com (Nasdaq: JD) Announces Pricing Of Secondary Offering Of Its ADSs (PRNewswire)
Meat Supplier OSI Says Six China Workers Arrested (English article)
ICBC (HKEx: 1398) Markets Record Offshore Yuan Bond Sale Amid Currency Push (English article)
China Mobile (HKEx: 941) Selling 617 4G Devices 1 Year After Launch Of TD-LTE (Chinese article)
Tech executives have been uncharacteristically quiet on their microblogs this past week, possibly due to the US Thanksgiving holiday that saw light activity in New York where most of their stocks are traded. But all the holidays in the world could never quiet the talkative Lei Jun, CEO of Xiaomi, who was busy talking up one of his company’s latest investments. That particular investment came in the unlikely property management space, involving a developer of YMCA-style buildings that rent out apartments to young people. Read Full Post…
Bottom line: After a slow start, China’s VNO program is picking up momentum, with new operators poised to sign up a collective 50 million in total subscribers as soon as the middle of next year.
VNOs gain momentum
After a decidedly slow start in their first half year of life, China’s young crop of virtual network operators (VNOs) are starting to show some new signs of momentum, including a boost with the new awards of licenses to leading online video site Youku Tudou (NYSE: YOKU) and fast-rising smartphone maker Xiaomi. The VNO program is part of Beijing’s efforts to breathe new life into the telecoms services sector by opening it up to new private operators that can compete with the big 3 state-run telcos. But the program has been plagued with glitches since the first new services launched in the spring, with the result that progress has been slower than expected. Read Full Post…
