The latest reports of unrest among some unhappy investors who bought a product that failed to deliver on promised returns through top lender ICBC (HKEx: 1398; HKEx: 601398) bodes poorly for a recent boom in similar products, hinting at a looming crackdown that could send a chill over the entire industry. I previously predicted we could see such consumer backlash, as many of the products flooding into the market promised unrealistically high returns to lure in investors. Such products may also include disclaimers saying that returns could also be lower, or that investors may even lose money. But unsophisticated Chinese investors often ignore such small-print, which will inevitably lead to howls of complaint when they don’t receive the headline returns. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 19. To view a full article or story, click on the link next to the headline.
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Alibaba to Increase Sina (Nasdaq: SINA) Microblog Stake To 30-50 Pct – Source (English article)
Samsung (Seoul: 005930) Leads Smartphone Sellers In China In Q4 – IDC (Chinese article)
The following press releases and media reports about Chinese companies were carried on February 18. To view a full article or story, click on the link next to the headline.
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New Oriental (NYSE: EDU) Spins Off Online Education Business – Memo (English article)
WeChat in new commercial moves with Unicom, Wangfujing Dept Store
Much has been written about the meteoric rise of Tencent’s (HKEx: 700) WeChat mobile instant messaging service, with many drawing parallels to the equally rapid ascent of Sina’s (Nasdaq: SINA) Weibo microblogging service starting in 2010. But while Sina has struggled to wring money out of Weibo, Tencent is having much more success with WeChat, as evidenced by news of its latest commercial tie-ups with retailer Wangfujing Department Store and mobile carrier China Unicom (HKEx: 762; NYSE: CHU). I have a lot of respect for Sina, which has emerged as a leading information provider in China since it first went public in 2000. But the company has shown itself less adept at earning money, unlike Tencent, which has proven much more skillful at milking cash from its innovative core social networking service (SNS) products. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 15-17. To view a full article or story, click on the link next to the headline.
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US To Pursue Trade Dispute Over Chinese, Taiwanese Solar Imports (English article)
China’s Wanxiang Wins US Bankruptcy Auction For Fisker Automotive (English article)
Vipshop (NYSE: VIPS) Acquires Controlling Interest In Lefeng For $133 Mln (PRNewswire)
Tencent’s (HKEx: 700) Guangdiantong Unveils WeChat Public Account Ad Product (English article)
Suning (Shenzhen: 002024) Sets Up Transport Services Headquarters (Chinese article)
The final death knell for one of China’s oldest software developers is casting a spotlight on just how difficult it is for companies to break into the global market for computer operating systems (OS). The end for Red Flag Software also bodes poorly for a number of more recent Chinese initiatives to create a mobile OS to rival Google’s (Nasdaq: GOOG) wildly popular Android and Apple’s (Nasdaq: APPL) own iOS. No specific reasons were given in the reports for Red Flag Software’s final demise, though I suspect defections by the company’s core state-run customers and a broader decline in the traditional desktop PC market were both factors. Read Full Post…
The following press releases and media reports about Chinese companies were carried on February 13. To view a full article or story, click on the link next to the headline.
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McDonalds (NYSE: MCD) Eases Permissioning Process For Shanghai, Other Big Cities (Chinese article)
Wangfujing Department Store, Tencent (HKEx: 700) Partner on WeChat Payment (English article)
Canadian Solar (Nasdaq: CSIQ) Prices Offerings of 2.78 Mln Shares, $130 Mln Convertible Notes (PRNewswire)
Ctrip (Nasdaq: CTRP) Reports Unaudited Q4, Full Year 2013 Results (PRNewswire)
Danone (Paris: DANO) To Raise Stake In Mengniu (HKEx: 2319) For $665 Mln (English article)
Two of China’s biggest Internet names are making interesting new moves into the tough US market, with word that Alibaba has launched an American e-commerce website and Baidu (Nasdaq: BIDU) founder Robin Li is helming a major new Hollywood animation studio. Both moves look cautious but relatively well conceived, even though each carries a degree of risk due to intense competition in the US e-commerce and animation sectors. Still, I have to admire both companies for at least trying, even if their chances of success could be around 50-50. Read Full Post…
Things have certainly changed over the last 3 years in Lunar New Year messaging, as reflected by the flood of tech executives using their microblogs to weigh in on Tencent’s (HKEx: 700) launch of a red envelope gift function for its popular WeChat platform over the holiday period. Most of the comments were admiring and even in a slight state of awe at the big success of WeChat’s hongbao product, which lets users send gift money to their friends and relatives over the popular instant messaging platform. But at least one post from Alibaba smelled of sour grapes, and a Sina (Nasdaq: SINA) executive also took a backhanded swipe at the rival to his company’s own Weibo microblogging service. Read Full Post…
I have a lot of respect for TV giant TCL (HKEx: 1070; Shenzhen: 000100), which has managed to remain relevant in China’s high-tech gadget space by moving aggressively into products like smartphones and high-end flat-screen TVs. But I’m a bit skeptical of the company’s latest move into the ultra competitive gaming space, following word that TCL plans to make gaming consoles and also specialized gaming TVs. News of this latest move by one of China’s oldest tech names comes just months after TCL announced a tie-up with leading search engine Baidu (Nasdaq: BIDU) to make smart TVs. I was more positive on that venture, though I really do think this new one looks more problematic since it will take TCL into a new area that is very competitive and where it has little or no experience.
I wasn’t too impressed on reading about one of the first promotions in the United States by Tencent (HKEx: 700), following reports last year that it planned to take its popular WeChat mobile instant messaging service to the lucrative but highly competitive market. I realize it will be difficult for WeChat to find an audience in the US, where its name is unknown and it will face stiff competition from local players like Whatsapp and even Google (Nasdaq: GOOG). But the company will have to do a bit more to raise its profile if it really hopes to win over demanding US consumers. Read Full Post…
