China :: Business :: Deals

Rumor: Sina Testing QQ-Type Account Numbers DoNews, 9/29/11 Chinese internet company Sina (Nasdaq: SINA) has reportedly begun internal testing of its secret "Weihao" user ID system, which provides users with an account number similar to rival Tencent's (0700.HK) QQ numbers. The number can be used instead of an e-mail address to log into Sina products, such as the Weibo microblogging platform, to search for a specific user, or to remotely lock an account to prevent identity theft. Allegedly leaked screenshots show Sina CEO Charles Chao has been issued the number "001." A dedicated channel for the service (hao.weibo.com) is reportedly accessible only to Sina employees.

The China Business Network has posted a podcast interview with me regarding Chinas luxury, fashion and premium brand markets. This is, of course, in anticipation of my address at The Fashion Institute of Technology on Monday, October 3. To wit: Michael Zakkour, Principal at Technomic Asia and an expert on strategic market planning and trends in China, has spent the last year analyzing Chinas new consumers. And what he has discovered is that many view fashion and luxury products in a very different way than they did even a couple of years ago. His presentation, Fashion, Beauty and Status One Year on the Front Lines of Chinas Luxury and Apparel Markets, will detail a year-long study of what consumers want, who is selling it to them, and how they do it. Also speaking will be Professor Mark Greiz, Fashion Institute of Technology, and Chief Consultant, MG Consulting; Professor Lawrence Delson, Fashion Institute of Technology and New York University and President, Delson International Inc...

China's Mobile Browser Users Up 4% YoY in H1 2011 Sina Tech, 9/28/11 In a new report on mobile web browsers released today, the China Internet Network Information Center (CNNIC) found that the number of mobile browser users in China increased by 7.7 mln during the first half of 2011, up 3.7% YoY. As of the end of June, there were 215 mln mobile web browser users in China, with 67.6% of mobile internet users using mobile browsers. 38.6% of mobile browser users use only one browser. Owing to the low cost of switching browsers, most users will try other browsers after sticking with a given mobile browser for half a year. Tencent's (0700.HK) QQ mobile browser enjoys 68.1% market penetration, built-in phone browsers have 52.8% penetration and the UCWeb browser has 46.3% market penetration; all three lead the market, in terms of penetration, by a comfortable margin. 56.7% of QQ mobile browser users are in fact using the browser built into the Mobile QQ suite of Tencent mobile applica...

Excuses, excuses, excuses. Sorry about the low post volume. We had our company retreat in the mountains and lakes of Zhejiang Province. Mountain climbing, boating, whitewater rafting, lots of amazing food, laughter and games. We had a great time. Thanks to our CEO, Steve Ganster, for making it all possible. Then it was on to Vietnam for 4 days of work before heading to NY. Now, to catch up

Source : Seeking Alpha By Andew Sizemore GLG Life Tech Corporation (Nasdaq: GLGL) engages in the research and development, growing, refining, production, and distribution of stevia extract to the food and beverage industry worldwide. Stevia extract is a natural sweetener extracted from the stevia plant. The company has a strategic alliance with Cargill, Incorporated, to supply stevia extract to Cargill for manufacturing a natural and zero-calorie sweetener brand called TRUVIA, a major brand which was originally co-developed by Coca Cola (KO) and Cargill. GLG Life Tech Corporation was founded as a public company in 2005 and is headquartered in Vancouver, Canada. In addition to its thriving stevia operations, GLG has aggressively entered the Chinese market and is moving rapidly to dominate within an industry which is currently valued at $21 Billion, and growing. In December 2010, GLG entered into a joint venture agreement with China Agriculture and Healthy Foods Company Limited (CAHFC) -...

China Unicom Lags Demand for RMB 1,000 3G Smartphones Sina Tech, 9/23/11 Yu Yingtao, general manager of China Unicom's (NYSE: CHU; 0762.HK; 600050.SH) marketing division, recently remarked on his personal microblog that the market for RMB 1,000 3G smartphones was "unusually hot," and expects demand to outstrip supply. From October to December, Unicom will supply its sales channels with 2 mln ZTE (0763.HK; 000063.SZ) Blade handsets, 2 mln Lenovo (0992.HK) A60 handsets, 2 mln Huawei Sonic handsets, and 2 mln Coolpad 706 handsets from Yulong Computer Telecommunication, a subsidiary of China Wireless Technologies (2369.HK).

Chongqing Telecom Offers Encrypted Mobile Calling Cdwb.com.cn, 9/21/11 Chongqing Telecom recently released a new encryption secure mobile calling service. The new service encrypts users' voice and text communications, ensuring that the content will not be susceptible to eavesdropping. Chongqing Telecom predicts that the majority of users who will subscribe to the service will belong to the local business community. In a live demonstration, Chongqing Telecom staff showed that once a call has been connected, both callers will see an "encrypt" button. If both parties press "encrypt," the call will continue encrypted. SMS encryption operates the same way. Chongqing Telecom said that even with specialized hacker software, eavesdropping would be quite difficult. Users, however, must have handsets that support encryption. According to Chongqing Telecom, as the service has only just been introduced, it is currently supported by just several handsets, including models fr...

RSS Platform Xianguo Secures Second-Round Funding BiaNews, 9/21/11 Liang Gongjun, founder of Xianguo, confirmed today that the Chinese RSS platform had secured second-round funding from Kleiner Perkins Caufield & Byers (KPCB). Liang said that details of the funding would be released in the near future. Liang also confirmed that Chinese online media and game operator Shanda Interactive (Nasdaq: SNDA) was one of the new investors. Editor's Note: For more information on this topic, please see " Rumor: RSS Platform Xianguo Lands New Round of Funding ," MD 8/17/11 issue.

Rumor: AliCloud to Add Video Chat to Mobile IM App Sohu IT, 9/20/11 An industry source revealed recently that AliCloud, the cloud technology subsidiary of Hangzhou-based e-commerce conglomerate Alibaba Group, was preparing to launch a video-enabled version of its "Yun Liao" ("Cloud Chat") service. Cloud Chat is one of the basic features of the AliCloud OS mobile operating system, which the company launched July 28. An AliCloud employee confirmed that the company is currently developing a new version of Cloud Chat that will support free video calls between video-enabled AliCloud phones in Wi-Fi network environments, similar to Apple's FaceTime. The application will also support text chat, images, emoticons, and other standard IM functions. The employee said that the new version of Cloud Chat is being tested and will be released along with a system update for AliCloud OS. AliCloud is also working on other localized services, including enabling mobile phones to be ...

Sina Tech, 9/19/11 Four law firms in mainland China and Hong Kong have told Reuters that the China Securities Regulatory Commission (CSRC) has issued an internal document proposing the State Council prohibit variable-interest entities (VIE). While CSRC declined to comment on the rumors, the law firms said that the CSRC is serious about the matter and that if accepted by the State Council, the ban could have severe consequences for Chinese enterprises' ability to list overseas and obtain foreign investment. According to the law firms, the CSRC is pushing for the Ministry of Commerce to oversee the changes since all new VIEs must be approved by the Ministry. The changes would not call for the dismantling of existing VIEs. The document does not bear the CSRC letterhead nor does it specify its recipient, but all four firms said it was intended for the State Council. According to China internet industry analyst and former Yahoo China president Xie Wen, State Council Vice Premier ...

Huawei Invests in Third-Party Payment Firm YeePay Sina Tech, 9/16/11 Tang Bin, CEO of Chinese third-party payment processor YeePay, revealed recently that YeePay received an undisclosed amount of funding earlier this year from Chinese telecom equipment and terminal manufacturer Huawei. The two companies began talks last year, according to Tang, and reached an agreement on the terms of the strategic investment earlier this year. A Huawei spokesperson said he had no knowledge of the matter, but would make inquiries with the relevant departments.

Source : CRI By Tom McGregor Coca-Cola stands as one of the world's most recognizable corporate brands. Nearly everyone from all reaches of the earth has drunk a coke at some point in their lives. With a population of over 1.3 billion people, China is a pivotal market for the brand. The company has already invested over $5 billion U.S. dollars in the nation since 1979 and will soon embark on more ambitious programs to raise its market share in the country's soft drink sector. In August, Coca-Cola announced that it would pour another four billion U.S. dollars into China from 2012 to 2014, just after an investment of three billion U.S. dollars in the country from 2009 to 2011 ... Coca-Cola has opened 41 plants in China with 48,000 people employed directly. The multinational corporation opened its second global innovation and technology center in Shanghai in 2009 to focus its future on China. Coca-Cola has utilized a ground-breaking marketing campaign that follows the motto: ...

SPD Bank, Oriental Cable Launch DTV Banking Oriental Morning Post, 9/16/11 The Shanghai Pudong Development Bank (SPD Bank) and Shanghai Media Group's (SMG) Oriental Cable Network have jointly launched a cable DTV banking service this month. The new service allows subscribers to check account balances, update account information, and pay water, electricity, gas, and other utility bills, and also offers news channels for funds and securities to allow subscribers to keep up with financial markets in China and abroad. OCN subscribers with standard- and high-definition bi-directional DTV set-top boxes (STBs) may sign up for the service online or at SPD Bank branch counters, or can sign up at home through their televisions.

A Year on The Front Lines of Chinas Luxury and Apparel Markets New York Michael Zakkour , an expert on strategic market planning and trends in China, has spent the last year analyzing Chinas new consumers. What he discovered is that many view fashion and luxury products in a very different way than they did even a couple of years ago. Zakkour will deliver the keynote presentation at New Yorks Fashion Institute of Technology, Monday, October 3, highlighting the latest trends in Chinas apparel, accessories, body care, cosmetics, and fragrance categories. These trends will determine the purchase of billions of dollars in merchandise as Chinas middle and upper class continues their amazing growth. Fashion is the external expression of Chinas economic success. These trends give insights into a dynamic generation of consumers, the size and likes of which we have not seen before, said Zakkour. What - Fashion, Beauty and Status One Year on the Front Lines of Chinas Luxury and Apparel Market...

Rumor: Ku6 Spins Off Interactive Entertainment Division Sina Tech, 9/14/11 Shanda Interactive's (Nasdaq: SNDA) online video subsidiary, Ku6 (Nasdaq: KUTV), has reportedly spun off its interactive entertainment division to be operated by audio-production subsidiary Radio-Arts under the "Bale" brand. Ku6 VP Yao Jianjiang will serve as CEO of the new company, according to an industry source. Radio-Arts has received approximately RMB 60 mln in investment from sibling companies Sunshine Media, Shanda's video licensing and distribution subsidiary, and Shineshow, a film and TV production JV of Shanda and Golden Eagle Broadcasting System. Bale.cn launched early this year as an entertainment platform showcasing Ku6's self-produced entertainment and new media video content. Following adjustments to Ku6 strategy and senior management over the past six months, Shanda will develop Bale as a new brand independent of Ku6. A Shanda employee said that Shanda had opted to merge Rad...

Online Game Virtual Item Trading Platform 5173.com to IPO Sina Tech, 9/13/11 Shanghai-based online game virtual item trading platform 5173.com has filed to IPO on the Hong Kong Stock Exchange in Q4 2011, with an evaluation hearing to be held no earlier than this month, and expects to raise between USD 150-200 mln. 5173.com enables game players to trade in virtual items used in a number of different games. According to one industry source, American investors' waning appetite for new IPOs by Chinese internet companies is one of the main factors which led 1573.com to choose to list in Hong Kong, another being the high cost involved in listing the United States. The source added: "5173.com is different from many of the companies which IPO in the United States. 5173.com is already profitable, making it a suitable choice for a Hong Kong IPO." Underwriting 5173's listing is French bank BNP Paribas, which began a road show for the company earlier this month. Public records sh...

And so, its that time of year again, you know, where I pretend to like mooncakes, where I think I should be heading back to campus (18 years after the fact) and NYC is at its peak as a place to live. Its also a time for us all to get back to the business of business. For me that means the next 12 days in Shanghai, Hangzhou and Saigon. I plan on some frequent posting during this trip. But for today I want to share a great article from The Economist. It is a great look-in regarding the State vs. Corporation discussion we have had here over the last two weeks. They also seem to think MNCs have reason for concern. IN 1992 two Chinese cities, one just south of Beijing, the other just north of Hong Kong, were in desperate shape even by the standards of a desperately poor country. Their municipally run companies were in danger of bankrupting not only themselves but the cities too. Zhucheng, near Beijing, was best known as the birthplace of Jiang Qing, Mao Zedongs despotic, doctrinaire f...

Source : Sinocast JIANGSU, September 9, SinoCast -- China Resources Snow Breweries (Taizhou) started construction of a new beer project with annual production capacity of 200,000 kiloliters at Gaogang High-tech Industrial Park, Taizhou City, Jiangsu Province on September 8, 2011. The project planned to introduce into two modern beer production lines, which is predicted to have annual production capacity of 200,000 kiloliters, have investments of USD 51.84 million, cover land taken over for use of 230 mu (1 mu = 667 square meters) and complete construction in July 2012. Since 2004, China Resources Snow Breweries started expanding presence in Jiangsu Province, acquiring the Chinese business of Australian Lion Nathan and a 49% stake in Jiangsu Big Boss Beer held by Heineken Asia Pacific Breweries, integrating Sunday Brewery, and built a new modern factory with annual production capacity of 400,000 tons in Nanjing. Currently, it has owned four factories in Nanjing, Suzhou, Wuxi and Changzh...

Rumor: Wal-Mart Buys 20% Stake in B2C Yihaodian Southern Metropolitan News, 9/09/11 An industry source said today that the Ping An Insurance Group had sold a 20% stake in Shanghai-based B2C e-commerce website Yihaodian to Wal-Mart for USD 65 mln. After integrating its services with the website, Wal-Mart could attempt to acquire Yihaodian outright. Ping An acquired an 80% stake in Yihaodian for RMB 80 mln in cash in May 2010. Yihaodian chairman Yu Gang denied the rumor. "We have never mentioned the possibility of an acquisition. Our funds far exceed the amount reported, and the proportion of shares was also misreported. You could say that Wal-Mart has made a strategic investment, and will not participate in the operation of Yihaodian." A recently departed Yihaodian employee said that Gu Bo, former director of Yihaodian's apparel, shoes, and accessories division, had left the company for Taobao, and that the site's director of finances had also left - along with another...

Linekong to Commercially Launch MMO Sina Tech, 9/08/11 Beijing-based online game developer and operator Linekong will commercially launch its self-developed 3D MMORPG Warrior King (Yongbing Tianxia) on September 15, according to CEO Wang Feng. Linekong has also partnered with five e-commerce firms - Letao, Redbaby, VCotton, Binggo.com and Meituan - to accept Warrior King in-game virtual currency in exchange for commercial goods. According to Wang, Warrior King will also incorporate a witkey Q&A system that will not only allow C2C virtual item trading, but will also enable players to post ads for mercenaries for hire, contract work, and quests.

Rumor: Baidu Online Literature PC Client Begins Closed Beta DoNews, 9/07/11 According to an industry source, Chinese internet company Baidu's (Nasdaq: BIDU) online literature PC client "Baidu Yuedu Qi" will begin closed beta testing at the end of September. In screenshots circulating online, the client includes an online bookstore and a "My Bookshelf" section. In terms of content, the main types of books offered will include graphic novels, bestsellers, and instructional books. The client also features rankings, document management, and search tools.

Rumor: Baidu, Dell to Launch Handset in November Sohu IT, 9/06/11 Dell handsets featuring Chinese internet giant Baidu's (Nasdaq: BIDU) new Baidu Yi mobile operating system will hit the market in November, according to an industry source. Another source added that the jointly developed handset is a prelude to Baidu cooperating with a number of other handset manufacturers. Baidu has yet to reveal pricing for the new handset. Baidu Yi was unveiled during the 2011 Baidu World Conference held September 2 in Beijing, where it was described by Baidu as a mobile terminal software platform that incorporates a smart search box, cloud services, and specialized Baidu mobile applications. The Baidu Yi handset closely resembles the HTC G5, according to Sohu IT journalists who examined the phone at the conference.

CNTV, Wasu Establish IPTV Content JV DVB CN, 9/02/11 CCTV's national online TV station CNTV and Hangzhou-based DTV and IPTV operator Wasu Digital TV have established Zhejiang Love-IT Network Technology, a IPTV content platform joint venture. Love-IT will provide content for Wasu's domestic IPTV subscribers and a "Wasu TV" package to be made available to subscribers in other provinces via CNTV's national IPTV platform.

Sina Tech, 11/19/11 An industry source has revealed that poor results have led Chinese internet company Baidu (Nasdaq: BIDU) to cease investing in Lekutian, its B2C e-commerce joint venture with Japanese firm Rakuten. A source close to Rakuten, however, has said that the main reason for Lekutian's poor performance lies with Japanese parent company Rakuten's difficulties in localizing operations to adapt to China's business environment. A source within Rakuten has said that staff at the company have yet to receive any notice of a decision by Baidu, and operations continue as normal. Both Lekutian and Baidu have yet to comment on the situation.

Source : PRNewswire HARBIN, China, Aug. 30, 2011-- Nutrastar International Inc., a leading producer and supplier of premium branded Traditional Chinese Medicine ("TCM") consumer products, today announced that it has added a new retail distributor in Suqian City and a wholesale distributor in Changzhou City for its "Yang Yang Ba" functional health drink, further expanding the entry level drink's distribution channels in Jiangsu Province. Located in northern Jiangsu Province, Suqian is a natural extension of the company's beverage rollout plans given its close proximity to the Company's existing distribution networks. Suqian has a population of approximately 5.2 million. Through the distributor, Nutrastar's entry level affordable "Yang Yang Ba" drink will be available at approximately 100 points-of-sale ("POS"), including small supermarkets and convenience stores. Nutrastar has also brought on a new wholesale distributor in neighbor...

Happy Labor Day everyone from me and everyone at Technomic Asia. Have a safe, happy and relaxing holiday. I am promising that I will not check my China twitter, google, blog and newsfeeds for 48 hours and that I wil not contribute to any of them either. Unless of course.

Rumor: Netease May Sell Youdao Products to Microsoft DoNews, 9/02/11 Chinese internet company Netease (Nasdaq: NTES) reportedly may sell its Youdao product line, possibly to Microsoft, according to an industry source. Netease's Youdao search engine began beta testing in 2006, and officially launched in December 2007. It was followed by a number of Youdao products, including a shopping guide, dictionary, translation tools, and location-based SNS. Editor's Note: In a separate report from CNET, Netease denied the rumors of Microsoft acquiring the Youdao product line, stating "Netease and Microsoft have had numerous partnerships, but there are no plans for such a sale."

ChinaCache Invests RMB 30 Mln in Innovation Works ChinaCache, 8/31/11 Chinese content delivery network (CDN) service provider ChinaCache (Nasdaq: CCIH) today announced it has established a strategic partnership with Beijing-based incubator Innovation Works' Innovation Works Development Fund (IWDF) and Chinaparallel Fund. Under the strategic partnership, ChinaCache will commit to investing RMB 30 mln (approximately USD 4.7 mln) in Innovation Works. ChinaCache will become the exclusive CDN partner for Innovation Works, who, under the strategic partnership, will recommend ChinaCache as the one-stop provider for CDN, cloud computing and managed IDC services to its portfolio companies. Kai-fu Lee, chairman and CEO of Innovation Works, said that nine projects invested by Innovation Works have already adopted ChinaCache's services.