Bottom line: Chinese companies need to become more proactive in ending practices that harm consumers, or risk facing pressure from regulators and hurting their prospects for expansion abroad.
Telcos get tough with real name registration
A campaign requiring all mobile phone users to register with their real names was in the headlines for much of last week, in the latest step to curtail rampant phone fraud in China that has grabbed recent attention due to several high-profile cases. Notably, the real-name registration drive was led by 6 government ministries, rather than the nation’s 3 major wireless carriers whose networks are the primary platform for committing most of the fraud.
Both the government and carriers have known about this kind of fraud for years, but did little to aggressively tackle the problem until the recent wave of negative publicity. Read Full Post…
Following signs earlier this year that they were resisting a call to end to domestic roaming fees, China’s big 3 wireless carriers are finally reversing course and bowing to pressure from the telecoms regulator to follow a practice already common in much of the world. But leading telco China Mobile (HKEx: 941; NYSE: CHL) is taking its time making the transition, saying it will gradually phase out such fees over the next 2 years. Smaller rival China Telecom (HKEx: 728; NYSE: CHA) appears to be moving more quickly, while the perpetually befuddled China Unicom (HKEx: 762; NYSE: CHU) has yet to state its policy on the issue. Read Full Post…
Bottom line: The MIIT should be commended for resisting pressure by China’s 3 telcos to ban free private voice services for enterprise customers, but should move quickly to show it will license such service providers like DingTalk and WeChat.
DingTalk halts free enterprise voice service
The ongoing battle between China’s big 3 state-run telecoms carriers and an emerging field of private sector challengers was in the headlines last week, when rumors emerged that the regulator was set to stop private firms from offering free voice services for business customers. The move looked set to potentially shut down popular services provided by Internet giants Tencent(HKEx: 700), Alibaba (NYSE: BABA) and others, before the regulator clarified that licenses were needed for companies to provide such voice services. (Chinese article) Read Full Post…
The following press releases and news reports about China companies were carried on June 25. To view a full article or story, click on the link next to the headline.
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PBOC to Study Alibaba’s (NYSE: BABA) Shadow Banking Activities, Zhou Says (English article)
MediaTek (Taipei: 2454) Calls on Taiwan to Ease Limits on Investment from China (Chinese article)
MIIT Says Licensed Non-Telcos Allowed to Provide Free Voice Service (Chinese article)
Qualcomm (Nasdaq: QCOM) Sues Meizu for Patent Infringement (Chinese article)
SMIC (HKEx: 981) to Buy 70 Pct of Italy’s LFoundry for 49 Mln Euros (HKEx announcement)
The following press releases and news reports about China companies were carried on June 24. To view a full article or story, click on the link next to the headline.
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MIIT to Forbid Non-telcos from Providing Free Enterprise Voice Calling – Reports (English article)
Sanpower Group Enters Bidding for McDonald’s (NYSE: MCD) China Stores (Chinese article)
Qunar (Nasdaq: QUNR) Announces Receipt of “Going Private” Proposal (GlobeNewswire)
Mango TV Raises 1.5 Bln Yuan in Second Funding Round, Valuation Doubles (Chinese article)
Huawei Lowers 2016 Smartphone Target by 20 Mln Units – Report (Chinese article)
Bottom line: Baidu’s stock won’t suffer more short-term damage from a recent series of transparency scandals, but its reputation could suffer over the longer term.
Baidu software under fire
Leading search engine Baidu (Nasdaq: BIDU) is fast becoming synonymous with the word “opaque” due to long-standing practices that have helped it become one of China’s most valuable Internet companies, often by exploiting unsuspecting consumers. Following a recent series of scandals involving various opaque practices, the company is back in the headlines after a number of apps from its mobile assistant store landed on a malware black list from China’s telecoms regulator.Read Full Post…
Bottom line: Apple’s $1 billion investment in a Chinese car services firm and establishment of an India R&D lab reflect China’s strength as an incubator of strong private companies and India’s as a software development hub.
Apple’s Tim Cook calls on China, India
It’s been an Asia-themed week for Apple (Nasdaq: AAPL) CEO Tim Cook, whose tour to China and then India casts a spotlight on 2 massive markets with huge potential for the company. This particular trip has been quite revealing for the gifts that Cook has awarded during the week, reflecting each country’s strengths and also its weaknesses.
China’s biggest gift was a $1 billion investment in local private car services firm Didi Chuxing, and also a smaller gift in the form of a new app to promote local musicians. India, meanwhile, secured a coveted R&D lab, which is one of Apple’s few outside the US and hugely prestigious. Read Full Post…
Some 4 years after disappearing from the headlines, a fourth telecoms carrier formed from China’s numerous regional cable TV companies is finally making a formal debut with its receipt of an official license to offer telecoms services. That means the new company, China Broadcasting Network Co (CBN), could theoretically shake up China’s laggard telecoms services industry that has been monopolized for years by the trio of state-run giants, China Mobile (HKEx: 941; NYSE: CHL), China Unicom (HKEx: 762; NYSE: CHU) and China Telecom (HKEx: 728; NYSE: CHA).
But anyone hoping for big change shouldn’t get too excited, since CBN is cut from the same cloth as the existing 3 state-run telcos. What’s more, the new company is likely to be plagued with internal power struggles, at least initially, since it was created from a patchwork of provincial cable TV companies whose former stakeholders may still try to exert some influence. Read Full Post…
The following press releases and news reports about China companies were carried on April 30. To view a full article or story, click on the link next to the headline.
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AIG (NYSE: AIG) Selling Down $1.2 Bln Stake in Chinese Insurer PICC (HKEx: 2328) (English article)
MIIT Vice Minister to Meet with Tesla (Nasdaq: TSLA) Asia Chief, Plant Coming? (Chinese article)
Yingli (NYSE: YGE) Discloses Preliminary Financial Results for Full Year 2015 (PRNewswire)
Yahoo in Talks to Sell Major Silicon Valley Office to LeEco (Shenzhen: 300104) – Report (Chinese article)
21Vianet (Nasdaq:VNET) Issues 1.75 Bln Yuan in Convertible Bonds (GlobeNewswire)
Bottom line: The naming of a technocrat as chairman of China Telecom ends speculation of an industry shake-up, and indicates China’s big 3 telcos will continue as big state-owned companies that lag their global peers.
Beijing continues old ways with new China Telecom chief
It’s been quite a few months since I last wrote about China’s 3 big telcos, so the naming of a new chairman of China Telecom (HKEx: 728; NYSE: CHA) seems like a good chance to revisit this lifeless trio that were a hot topic last year due to rumors of an industry shakeup. The naming of a new technocrat as head of the carrier implies that it’s business-as-usual at China Telecom and for the broader trio of state-run caarriers, and that a shake-up that many of us were hoping for isn’t coming.
The new chairman, Yang Jie, will assume the helm of China Telecom 4 months after his predecessor, Chang Xiaobing, abruptly stepped down last year due to a corruption probe against him. Chang himself was previously chairman of China Telecom rival China Unicom (HKEx: 763; NYSE: CHU), but switched places with China Telecom’s chief Wang Xiaochu in the middle of last year in a characteristic bureaucratic reshuffling by Beijing. Read Full Post…
The following press releases and news reports about Chinese companies were carried on February 26. To view a full article or story, click on the link next to the headline.
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Visa (NYSE: V) Signs MOU with China UnionPay (English article)
Baidu (Nasdaq: BIDU) Announces Q4 and Fiscal Year Results (PRNewswire)
China to Launch Commercial 5G Service in 2020 – MIIT (Chinese article)
NetEase Reports Q4 and Fiscal Year 2015 Financial Results (PRNewswire)
Wal-Mart (NYSE: WMT) to Open 30 China Stores, Upgrade 60, Build up Cross-Border E-Commerce (Chinese article)
