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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Lenovo (HKEx: 992) Still Aims To Buy IBM (NYSE: IBM) Low-End Server Unit (Chinese article)
ZTE (HKEx: 763) Announces Preliminary Results For Year 2013 (HKEx announcement)
Peugeot Moves Closer To Dongfeng (HKEx: 489) Deal As Sales Sag (English article)
CNOOC (HKEx: 883) Announces 2014 Business Strategy, Development Plan (PRNewswire)
Game Operator Linekong Lands $80 Mln In Series C Funding (English article)
Just days after making headlines for being selected to buy Portugal’s top insurer, Chinese investment firm Fosun International (HKEx: 656) is back in the news as a finalist in the bidding for Forbes Media, publisher of Forbes magazine. The deal is just the latest in a recent series of major purchases for Fosun, and more broadly kicks off a year that could see record overseas M&A by a rising group of Chinese investment firms. Fosun’s evolving strategy seems to target companies that are profitable but also laggards in their areas, which is relatively common among such investors. But in this case, I have serious doubts about its pursuit of Forbes due to the global rapid decline of the traditional media industry. Read Full Post…
Anyone who thinks the trendy Xiaomi is just trying to copy the playbook of global tech giant Apple (Nasdaq: AAPL) may have to reassess that comparison, following the latest reports that the fast-rising Chinese smartphone maker is preparing to enter the ultra low-end segment of the market. Word that Xiaomi will launch a smartphone costing just 300 yuan, or $50, looks a bit suspicious to me, as I don’t think I’ve ever seen a smartphone costing so little. Such a move would also contrast sharply with Apple, which has made a very conscious decision to stay in the premium end of the market. Read Full Post…
It’s the time of year when we get to see where gadget makers are placing their future bets, as they strut their newest wares at the Consumer Electronics Show (CES), the world’s biggest show of its kind. This year all of China’s “big 3” smartphone aspirants are at the show in Las Vegas, with Huawei, ZTE (HKEx: 763; Shenzhen: 000063) and Lenovo (HKEx: 992) each focusing on different areas for future development. Interestingly, I couldn’t find any official mention of attendance at the event by fast-rising smartphone maker Xiaomi, even as it gets ready to embark on a global expansion in 2014. Read Full Post…
Executives from China’s top consumer electronics makers are laying out their road maps for 2014 at the world’s top trade show happening this week in Las Vegas, with leading PC maker Lenovo (HKEx: 992) detailing a conservative but smart looking plan to build up its smartphone business in the Americas. The plan was detailed by Lenovo’s Americas head, and will see the company target developing markets in Latin America first before gradually moving to the highly competitive US. Read Full Post…
The following press releases and media reports about Chinese companies were carried on January 8. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) In Talks To Invest In Jingdong – Source (English article)
Yingli (NYSE: YGE), China National Nuclear Corp In Solar Projects JV (PRNewswire)
Lenovo (HKEx: 992) To Gradually Enter US Smartphone Market – Americas Chief (Chinese article)
Alibaba, Suning Chances Good For 1st Round Of Private Bank Licenses (Chinese article)
China Suspends Ban On Video Game Consoles After More Than A Decade (English article)
It’s quiet outside as markets reopen on this first work day after the New Year, so I thought I’d start off 2014 with some predictions for the year ahead in the sectors that I cover. Generally speaking, I do think the first half of the year will see a continuation of strong momentum that began in late 2013 for many sectors. But that momentum will slow as we near the mid-year mark, and 2014 could end with a whimper as the Chinese economy continues to slow and Beijing pushes for higher quality growth. Read Full Post…
I was somewhat amused today to read an announcement from stodgy domestic smartphone maker ZTE (HKEx: 763; Shenzhen: 000063) trumpeting the success of a “cool” new online campaign for its high-end brand of nubia smartphones. But after giving the matter some thought, I do have to compliment ZTE for its new approach to create some buzz around its smartphones, which currently enjoy a reputation as dependable but also quite stodgy and low-end products. Most Chinese refer to phones from domestic names like ZTE, Huawei and Lenovo (HKEx: 992) as guochan, literally meaning “made in China,” which carriers distinctively negative overtones for inferior quality and lack of imagination. ZTE is clearly trying to cast off that image for its nubia line with this new China-based campaign. Read Full Post…
Smartphone makers may soon be getting an ally from China’s cash-rich Internet companies, with word that e-commerce leader Alibaba is preparing a massive giveaway in a bid to boost its mobile business. This move looks strikingly similar to something Alibaba did nearly a decade ago, when it made the strategic decision to offer its e-commerce services for free on its newly launched Taobao platform. That decision was derided by eBay (Nasdaq: EBAY), its chief rival in China at the time, which said that giving away services for free was not a real business model. As Chinese Internet historians know, eBay ultimately lost that battle and Alibaba has gone on to become one of the world’s biggest e-commerce companies. Read Full Post…
Chinese firms’ addiction to distressed global assets was back in the spotlight last week with word that car maker Dongfeng Motor (HKEx: 489) is nearing a deal to purchase struggling French automaker Peugeot (Paris: PEUP). This pursuit of a global brand is consistent with Beijing’s call for Chinese firms to go global, and would certainly allow Dongfeng to quickly expand onto the world stage. Read Full Post…
During my trip to Australia over the recent National Day holiday, I had an experience at Pudong International Airport that I would never care to repeat, even though it has a happy ending. While I probably gained a few gray hairs in the process, the entire ordeal was also quite remarkable because it shows just how far telecommunications in China have advanced in just the last 2 decades. Read Full Post…
