A new report about a sudden exodus of middle- and top-level executives from China’s big 3 telcos is forcing me to rethink my earlier assertion about the relationship between those carriers and a group of new competitors called virtual network operators (VNOs). Earlier reports about the defection of a top executive from one of the big telcos to a new VNO had prompted me to declare the big 3 state-run carriers were trying to sabotage the new VNO scheme to quash any new competition. But now this new report reveals that similar defections at all levels of management are becoming widespread, indicating perhaps that market economics really are at work here. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 20. To view a full article or story, click on the link next to the headline.
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Tencent (HKEx: 700) To Buy 20 Percent Of Restaurant Ratings Site Dianping (HKEx announcement)
Dongfeng (HKEx: 489) To Pay 800 Mln Euros For 18 Pct Of Peugeot (Paris: PEUP) (English article)
MIIT: China’s 4G User Base To Reach 30-50 Mln In 2014 (English article)
Xiaomi Enters Singapore To Kick Off Global Expansion (Chinese article)
Qihoo 360 (NYSE: QIHU) To Introducing Free Security Services To The World (PRNewswire)
The following press releases and media reports about Chinese companies were carried on February 8-10. To view a full article or story, click on the link next to the headline.
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Alcatel (Paris: ALUA) In Talks To Sell Phone Unit To Chinese Investment Firm Huaxin (English article)
MIIT Says New VNOs Banned From Building Telecoms Infrastructure (Chinese article)
The following press releases and media reports about Chinese companies were carried on January 30. To view a full article or story, click on the link next to the headline.
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Lenovo (HKEx: (992) To Buy Google’s Motorola In China’s Largest Tech Deal (English article)
ICBC (HKEx: 1398) To Buy Control Of Standard Bank Unit For $765 Mln (English article)
500.com (NYSE: WBAI), China Mobile (HKEx: 941) In Strategic Partnership (PRNewswire)
MIIT Gives 2nd Round Of VNO Licenses, Winners Include Suning, Gome (Chinese article)
Buffett-Backed Chinese Automaker BYD (HKEx: 1211) Settles US Wage Dispute (English article)
The following press releases and media reports about Chinese companies were carried on January 25-27. To view a full article or story, click on the link next to the headline.
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Renren (NYSE: RENN) Sells Remaining Stake In Nuomi to Baidu (Nasdaq: BIDU) (PRNewswire)
I have to admit I was quite disappointed to read that China’s regulator has set an extremely modest target for a new group of virtual network operators (VNOs) that will finally break the telecoms services monopoly held by China’s big 3 state-run telcos. I wasn’t expecting huge things from this new group of operators, who will lease network capacity from the trio of existing telcos and then sell telecoms services under their own brands. But the Ministry of Industry and Information Technology’s goal of just 50 million VNO mobile service subscribers by the end of next year looks ridiculously low to me and hints of worries that this new pilot program could be plagued with problems. (English article) Read Full Post…
New signals from Beijing hint at a problem I’ve talked about for the last 2 months as China embarks on a major solar energy program, namely that many new plants being built could become useless white elephants. Potential for such a problem is very real, and could end up not only costing enthusiastic builders of new power plants billions of dollars in wasted funds, but could also leave solar panel makers themselves with huge amounts of unpaid bills. Meantime, the latest signals from Suntech (NYSE: STPFQ) and LDK (NYSE: LDK) indicate these 2 former giants are nearing the end of their lives, as each looks set to disappear in an ongoing industry consolidation. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 28-30. To view a full article or story, click on the link next to the headline.
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China’s 4G Users To Reach 30 Mln in 2014 – Regulator (Chinese article)
Perfect World (Nasdaq: PWRD) Sells Chinese Online Reading Unit To Baidu (Nasdaq: BIDU) (PRNewswire)
Oceanwide Real Estate (Shenzhen: 000046) To Spend $200 Mln On First US Project (Chinese article)
GM (NYSE: GM) Recalls 1.5 Mln Cars In China Over Fuel Pump Bracket (English article)
After moving extremely slowly throughout the year, the telecoms regulator is suddenly surprising everyone with a flurry of major new announcements in the final weeks of 2013. First the Ministry of Industry and Information Technology (MIIT) issued long-awaited 4G wireless licenses earlier this month, and now we’re learning that it has just issued its first batch of virtual network operator (VNO) licenses. This sudden issue of VNO licenses comes as a bit of a surprise, since there were no advance indications for the timing and many believed the MIIT wouldn’t make the move until next spring. Read Full Post…
The following press releases and media reports about Chinese companies were carried on December 27. To view a full article or story, click on the link next to the headline.
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MIIT Issues First Batch of Virtual Network Operator (VNO) Licenses (Chinese article)
Didi Dache Wins $100 Mln Funding from Tencent (HKEx: 700), Citic – Source (English article)
Japan Car Makers Brace For China Backlash To Shrine Visit (English article)
China’s Zoomlion (HKEx: 1157) Acquires German Dry Mortar Producer
US IPO Window To Reopen foF Chinese Companies in 2014: Report (English article)
With the 4G telecoms era now formally begun, China’s 3 major telcos are suddenly rushing to give out more details about their plans in this new era of high-speed mobile communications. In the latest news from this fast-moving story, media are reporting that China Telecom (HKEx: 728; NYSE: CHA), the smallest of the nation’s 3 wireless carriers, will formally launch its 4G brand as soon as later this week. Meantime, leading telco China Mobile (HKEx: 941; NYSE: CHL) has disclosed pricing plans that look quite aggressive for its 4G service in the city of Chongqing. I should also add I’m not surprised that we haven’t heard anything yet from the nation’s third telco, China Unicom (HKEx: 762; NYSE: CHU), which has a recent history of slowness and disorganization in response to such major new developments. Read Full Post…
