I seem to be using the phrase “flavor of the day” quite a bit these days, as quite a few emerging products and sectors like smart TVs and social networking services (SNS) are suddenly drawing interest from a wide range of companies in established industries. The latest sector to get my “flavor of the day” moniker is banking and financial services, with word that Gree (Shenzhen: 000651), one of China’s top appliance makers, is looking to enter the space. I have no particularly strong feelings about Gree, though I have to say that this new move looks ill-conceived and is a telltale sign that the broader rush into banking services is quickly becoming overheated. Read Full Post…
Smart TVs, which let consumers watch programs via Internet-based channels, has suddenly become the latest flavor of the day for China tech firms, with just about every major Internet player piling into the market in the last few months. Top e-commerce firm Alibaba and search leader Baidu (Nasdaq: BIDU) have both announced major new initiatives in the last 2 months, and now social networking leader Tencent (HKEx: 700) is joining the frenzy with its own new tie-up. At the same time, retailing giant Suning (Shenzhen: 002024) may also be making moves in the space, with word that it’s near a deal to purchase online video company PPTV. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 25. To view a full article or story, click on the link next to the headline.
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Suning (Shenzhen: 002024) In Advanced Talks To Buy PPTV For $400 Mln – Source (Chinese article)
Microsoft, BesTV (Shanghai: 600637) to Invest up to $237 Mln in China Venture (English article)
US Solar Group Offers Proposal To End US-China Panel Dispute (Group announcement)
KKR, Modern Dairy (HKEx: 1117) To Build Large Scale Farms in Shandong (Businesswire)
Alibaba Launches Taobao C2C Service In Singapore (English article)
October is quickly shaping up as a Golden Telecoms Month for China, with a growing number of major events looking set to take place in the month that starts off with the October 1 Golden Week holiday. Major developments that look likely to occur next month include the long-awaited awarding of 4G mobile licenses, and the announcement of another highly-anticipated deal that would see dominant telco China Mobile (HKEx: 941; NYSE: CHL) finally offer an Apple (Nasdaq: AAPL) iPhone on its network. But perhaps the biggest development for the month could see China’s telecoms regulator announce its first round of highly anticipated licenses for up to 6 new “virtual telcos”, known in the industry as virtual network operators (VNOs). Read Full Post…
Banking services have suddenly become the flavor of the day for China’s Internet firms, with e-commerce leader Alibaba forming a new tie-up with a major bank, as Suning (Shenzhen: 002024) moves closer to its aim of getting a formal banking license. This relatively sudden move by Internet firms into financial services comes as a slight surprise, since I haven’t really seen anything similar in the west. But that said, the financial services sector in most western markets is already well served by mature, market-oriented firms — a sharp contrast to China where the sector is dominated by less efficient state-run companies. Read Full Post…
The following press releases and media reports about Chinese companies were carried on September 17. To view a full article or story, click on the link next to the headline.
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The following press releases and media reports about Chinese companies were carried on September 12. To view a full article or story, click on the link next to the headline.
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Suning (Shenzhen: 002024) Launches Open Platform On E-Commerce Site (Chinese article)
Foreign Banks Vie For Place In New Shanghai Free Trade Zone (Chinese article)
Huawei Sees Annual Growth Rate Reaching 10 Pct For Next 5 Years (Chinese article)
ReneSola (NYSE: SOL) Announces Pricing of $70 Mln Offering (PRNewswire)
Western Union (NYSE: WU) Significantly Grows Its Reach in China (Businesswire)
A new report on the explosion of e-commerce in China seems like a good opportunity to take a broader look at the sector and its longer term potential, including which players are likely to emerge as the big winners over the longer term. The latest figures indicate the potential of e-commerce in China is huge, meaning we could ultimately see 2 or 3 major players succeed in the market. But that also means we’re likely to see at least 3 or 4 casualties in the current battle for supremacy, since the field of major, well-funded contenders current numbers around 6 or 7. Read Full Post…
Chinese Internet companies have never been afraid to venture outside their core business areas, and that trend continues with word that e-commerce heavyweights Alibaba and Suning (Shenzhen: 002024) are making new forays into education and finance, respectively. Frankly speaking, this recent venturing of some companies so far outside their core competencies doesn’t look all that smart to me, and is the result of a “follow the herd” mentality that’s being driven by a few companies with lots of cash that they want to invest. But that said, these 2 latest cases do look relatively logical and probably have good chances for success. Read Full Post…
The following press releases and media reports about Chinese companies were carried on August 22. To view a full article or story, click on the link next to the headline.
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New China Trust Pulls Out Of $4.8 Bln AIG Unit Bid: Source (English article)
YiChat Mobile IM Users Reach 1 Mln In First Day Of Launch (English article)
ZTE (HKEx: 763) Forecasts Profit in First 9 Months of 2013 In Earnings Rebound (Businesswire)
Vancl In Talks For $200 Mln New Funding Round (Chinese article)
Suning (Shenzhen: 002024) Applies for Banking License (English article)
Traditional retailers are taking a hit recently, with fast-food operator KFC and sporting goods seller Li Ning (HKEx: 2331) the latest to report disappointing results due to a complex series of factors. KFC is suffering from a number of company specific issues, combined with residual effects from China’s slowing economy and fallout from a bird flu outbreak earlier in the year. The picture looks more grim for Li Ning and other traditional non-restaurant retailers, which are fighting a losing battle against fast-rising e-commerce firms. Read Full Post…
