China :: Business :: Deals

Tencent to Develop New Microblog Content Monitoring Tools caijing.com.cn, 10/31/11 Pony Ma, chairman and CEO of Chinese internet giant Tencent (0700.HK), today disclosed the company is developing new ways to monitor content on its microblogging platform, but refused to reveal any specifics. Ma described the proliferation of false rumors on Tencent Microblog as a difficult problem, and added that without oversight it would become "very chaotic."

Source : Bloomberg News By Cathy Chan and Natasha Khan China Mengniu Dairy Co., the nations biggest dairy company, may bid for Pfizer Inc. (PFE)s infant-nutrition business, two people with knowledge of the matter said. Mengnius consideration of a potential bid is at an early stage, the people said, asking not to be identified because the information is private. The company wont decide whether to proceed until more financial data on the unit is available, one of the people said. Mengniu said in a stock-exchange filing today that it isnt in any direct negotiation with Pfizer. The infant-nutrition business may fetch as much as $10.5 billion, and draw interest from companies including Danone (BN), Abbott Laboratories (ABT) and Nestle SA (NESN), people familiar with the transaction said in July. Mengnius market value is just over half that amount, and shares in the cheese and milk producer fell today after its interest was reported. The deal size for the whole global division is really a bi...

Chongqing Unicom Begins Out-of-Home Display Trials Chongqing Daily, 10/28/11 Wo Xun Media, Chongqing Unicom out-of-home-display subsidiary, recently began preliminary trials of over 3,000 interactive terminals. The terminals, which boast 32-inch screens, have been installed in elevators and other areas with high pedestrian traffic flow including commercial properties, high-end residential areas, shopping malls, supermarkets, hospitals, government buildings and on campuses in central Chongqing. Plans are to expand trials to 10,000 terminals spread across 40 districts and counties in the city in 2012. China Unicom (NYSE: CHU; 0762.HK; 600050.SH) broadband and 3G network connections allow Wo Xun Media to remotely manage ad circulation on the terminals, as well as target advertising by location or time of day.

This may reek of hyperbole, it may strike you as overly dramatic, it may sound like me departing from my usual optimism, and you may be right on all counts. But deep inside I believe what I am about to say is true and will have an impact on many aspects of doing business in China. Beijings announcement that a sweeping and thorough new regime of restrictions, censorship and retrenchment on media content and consumption and its desire to dictate what is and is not proper for the Chinese public to consume could have the unintended consequence of stopping Chinas breakneck development of the last 20 years in its tracks. This, not the real estate bubble, not tax and land protests, not the underground banking or reverse merger fiascos or the polluted air, water and land, this could be what sets China back 10 years on its road to being a true, not paper, global power. The most striking instance occurred Tuesday, when the State Administration of Radio, Film and Television ordered 34 major satel...

China Television Media Halts TV Ads in Line with SARFT Rules Shanghai Stock Exchange, 10/26/11 Television ad agency and media service firm China Television Media (600088.SH) has been notified that it must cease inserting TV ads at the end of programs on CCTV-1 and CCTV-8 during primetime hours beginning October 25. The move is in accordance with the State Administration of Radio, Film and Television's (SARFT) recent "Notice Regarding Further Improvements to Management of Television Advertising." Editor's Note: The ads China Television Media had been inserting at the end of these channels' programs consist of a company logo and slogan overlay for a duration of 5 seconds. For more background on this topic, please see " SARFT Reiterates TV Ad Regulations " MD 10/12/11 issue.

Kanbox Lands USD 20 Mln in Second-Round Funding Techweb, 10/25/11 Chinese cloud computing services provider Kanbox announced today that it has won a total of USD 20 mln in second-round funding led by US VC firm Doll Capital Management (DCM). The company previously received angel investment from Chinese angel investor Xue Manzi and first-round funding scaled in the tens of millions of USD. Kanbox today also announced that DCM founder and partner David Chao will now join the company's board of directors. The number of Kanbox registered users rose to 1.5 mln in Q1 2011, and is expected to reach 8 mln by the end of the year. Users currently have over 2 bln files stored in Kanbox's cloud servers, and continue to upload more than 20 mln new files each day. Kanbox also recently released applications for both the Android and Mac OS operating systems. Also included in today's announcement came the news that Beijing-based investment bank China Renaissance has come on as sole financia...

Online Ad Metrics Firm Moment Lands USD 20 Mln in Funding ChinaVenture, 10/24/11 Beijing-based online advertising metrics firm Moment Systems has obtained USD 20 mln in funding from Kleiner Perkins Caufield & Byers (KPCB), China Broadband Capital, Redpoint Ventures, and WPP Digital. KPCB partner Zhou Wei will join the board of Moment Systems. Established in late 2006, Moment Systems uses cloud computing, natural language processing, and artificial intelligence to evaluate online ad campaigns, and has developed its AdMonitor line of online advertising evaluation and optimization products. AdMonitor can track an online ad campaign and provide reach, target audience, and follow-up activity analysis to help advertisers, ad firms, and online media companies assess ad effectiveness (including providing data on target audience penetration), as well as identify target audience characteristics and provide ROI analysis and suggestions for optimization. Moment Systems' clients include L...

Source : 21 Century Business Herald October 18 -- Kweichow Moutai Co. Ltd. (600519.SH) posted a 55% year-on-year rise in third-quarter net profit to RMB 1.66 billion, reports stcn.com, citing a company filing. The spirits maker recorded a 57% y-o-y increase in cumulative net profit to RMB 6.57 billion for the first 3 quarters, with earnings per share of RMB 6.33. Sales revenue earned during the first nine months increased 46% y-o-y to RMB 13.64 billion. Kweichow Moutai attributes the higher net profit earned during the first 3 quarters to increased sales volume and higher product prices. According to the report, several spirits makers had repeatedly hiked prices in 2011. Kweichow Moutai had raised prices on the January 1, 2011, by an average of 20%, while Wuliangye Yibin Co. Ltd. (000858.SZ) hiked prices by between 20% and 30% from Sept. 10. Kweichow Moutai said rising labor and raw material costs, higher taxes and counterfeit products had impacted the company's operations. Since t...

Download this podcast Length 12:45 Download audio file (20111021_jimtompkinschina.mp3) Jim Tompkins , president and CEO, of Tompkins International , has seen many opportunities that have gone unnoticed by companies in this more than three decades advising Fortune 1000 global companies. In this podcast we discuss Tompkins recent trip to China where he spoke with dozens business executives about their China business strategies and improving their supply chain to meet Chinas domestic and exporting demands. China is in a transformation, but perhaps more of an advancement. Youve read the articles about China no longer being solely a low cost manufacturing center, but that transition will take many years according to Tompkins. Today, he sees a complex and dynamic manufacturing sector in China that must meet their growing domestic consumer demands, which presents unique supply chain challenges and solutions. In addition, as Chinas government continues its progress toward incorporating ...

China's Q3 2011 TV Retail Sales Revenue Up 11% YoY Southern Daily, 10/19/11 China's TV set sales rose 10.7% in Q3 2011 to 9.96 mln units, according to Chinese market research firm AVC and the China Video Industry Association (CVIA). Sales volume for Q4 2011 is projected to reach 12.69 mln, including 11.36 mln LCD TV sets, up more than 12% YoY. Declining LCD panel prices due to oversupply since June 2011 created an opportunity for TV set manufacturers to lower prices and drive up sales, according to Jin Xiaofeng, deputy GM of AVC. Many vendors also began discount promotions in Q3 2011 to spur sales after failing to meet H1 2011 sales targets, An industry source earlier claimed that falling LCD panel prices could lead to comparatively better profits, but TV manufacturers were prematurely entering into a price war which would result in industry net profit declining 2-3% in H2 2011.

MOFCOM to Issue New Online Retail Regulations China News, 10/19/11 Addressing recent protests by small and mid-sized merchants on Hangzhou-based B2C platform Taobao Mall, Ministry of Commerce spokesperson Shen Danyang called today for more robust laws and management systems for online retail. Shen said that the Ministry of Commerce was leading efforts on a draft version of the new "Online Retail Management Regulations," which it hopes to release as soon as possible. The regulations will establish mechanisms for third-party transaction platforms to enter and exit the market, and will clearly lay out the rights, responsibilities, and duties of all participants in the online retail market. Editor's Note: For more information on this topic, please see " Chinese Authorities Intervene in Taobao Mall Protests ," MD 10/17/11 issue.

LeTV, Tudou to Establish JV Shenzhen Stock Exchange, 10/18/11 Chinese online video site LeTV (Leshi) (300104.SZ) announced today that on October 17, the company signed an agreement with video site Tudou (Nasdaq: TUDO) to establish a new joint venture. Of the RMB 1 mln in registered capital used to fund the venture, 51% (RMB 510,000) has been put forward by LeTV, with the remaining RMB 490,000 having come from Tudou. Temporarily operating under the name Shanghai Tudou-LeTV Entertainment (tudou.letv.com), the JV will have a board of directors comprised of four seats to be split between and filled by the two companies, in addition to the positions of board chairman and deputy board chairman. The new JV will primarily be involved in the purchase and sale of online rights for domestic films and TV dramas.

I know we have been focusing heavily on the fashion, luxury and premium markets in China for a couple of weeks now. There are two reasons for that. 1. I spoke on the subject at FIT last week and I will be speaking to international marketers on the subject at Inside the China Marketing Mindset on Wed. the 19th 2. There is a lot to talk about on this subject at this time Todays announcement from THE GAP, the largest apparel retailer in the US, sums up everything I have been writing, talking and advising on for the last year: From todays AP wire. Gap plans store closures in US, while opening new locations in China By Associated Press, Published: October 13 NEW YORK Gap Inc. plans to close stores in the U.S., while expanding in China. The struggling retailer, which runs the Gap, Old Navy and Banana Republic chains, detailed plans on Thursday to close 189 locations, or 21 percent of its namesake Gap stores in the U.S., by the end of 2013. At the same time, the largest U.S. clothing chain ...

Xunlei Withdraws Nasdaq IPO Registration SEC, 10/13/11 Chinese online P2P video service provider, download accelerator software developer, and online game operator Xunlei has withdrawn its IPO registration filed with the US Securities and Exchange Commission. Editor's Note: Xunlei had planned to list on the Nasdaq Stock Market under the ticker symbol "XNET." For more information on this topic, please see " Xunlei Postpones IPO ," 7/22/11 issue.

Download this podcast Length 22:55 Download audio file (20111012_FIT_follow2.mp3) In this episode of the China Business Podcast, we speak with Michael Zakkour, principal of Technomic Asia, about the unique and growing markets of China for higher end apparel and accessory brands. Zakkour recently presented a study conducted by Technomic Asia to the Fashion Institute of Technology F.I.T. in New York showing how Chinas consumers are hungry for luxury and affordable luxury brands. Zakkour says China is not a market where foreign companies can apply techniques or even product lines that are successful in other markets. Further more, he says China is a series of different markets that need to be understood before entering into Chinas second, third, and fourth tier cities, areas that are potentially fertile ground for high-end brands. Chinese consumers love for brands is prevalent in Shanghai and Beijing, the opportunities and new territory is in the interior of China. Below is a char...

CCTV Restricts TV Advertising from Medical Sector Sohu, 10/11/11 China Central Television (CCTV) has announced that CCTV-1 will cease broadcasting medical TV advertising after 6:00 PM beginning January 1, 2012, and its news and six other main channels will stop running advertisements for medical organizations altogether, including ads for cosmetic surgery clinics. Numerous industry sources have pointed out that the move will not significantly influence CCTV's revenues since, as a state-owned broadcaster, its stations have aired comparatively few medical industry-related ads. Larger provincial-level broadcasters such as those in Hunan and Jiangsu have similar advertising policies, but industry sources say that if the same restrictions were to be implemented nationwide, many provincial- and city-level television stations would suffer as a result. CCTV previously issued a similar directive to limit advertisements for alcoholic beverages. Also set to take effect next year, CCTV has sai...

Rumor: Temasek to Fund Alibaba Share Buyback from Yahoo Sina Tech, 10/10/11 Chinese e-commerce conglomerate Alibaba Group has reportedly entered discussion with Temasek Holdings regarding financing to repurchase Yahoo's 40% stake in Alibaba. According to an industry source, Temasek will receive additional Alibaba Group shares in exchange for funding and has no interest in owning Yahoo shares. Temasek spokesman Stephen Forshaw said that the company does not comment on market speculation, while Alibaba and Yahoo could not be reached for comment. Rumors last week claimed that Alibaba Group, Silver Lake, and Digital Sky Technologies (DST) were in talks to form a group to bid for Yahoo. Alibaba Group chairman Jack Ma said on October 1 that Alibaba was "very interested" in Yahoo, and was already in talks with the US internet company as well as other potential buyers. Temasek, Silver Lake, and DST acquired USD 1.6 bln in Alibaba Group shares on September 22 in a transaction that...

Lenovo Starts Pre-Order Period for ThinkPad Tablet Caijing, 10/9/11 On October 8, Chinese laptop, PC, and handset manufacturer Lenovo (0992.HK) began an eight-day pre-order period for its upcoming ThinkPad tablet. Beijing-based B2C e-commerce platform 360Buy offers pre-orders for the 16 GB, 32 GB, and 64 GB models of the ThinkPad tablet for RMB 5,999, 6,999, and 7,999 respectively, while in Hong Kong the same models sell for prices ranging from HKD 3,998 (approximately RMB 3,300) to HKD 5,698 (appx. RMB 4,670). From October 8 to October 12, ThinkPad tablet pre-orders will be available exclusively through 360Buy. The official ThinkPad store on C2C & B2C e-commerce site Taobao will accept online pre-orders from October 13 to October 15.

Source : Reuters By Farah Master | Photo: CNN Oct 2 (Reuters) - Plunging global markets, the sovereign debt crisis in Europe and deepening fears of another world recession failed to dampen Asian buyers thirst for vintage wines at Sotheby's October wine auction in Hong Kong. The two-day event held Oct. 1-2 put rare Imperials of Chateau Lafite, Latour and Cheval Blanc and Jeroboams of Mouton and Haut Brion under the hammer, as well as a selection of Lafite from the Rothschild's private cellars. The sale raked in $12.7 million in total. The wine auctions bode well for the rest of Sotheby's autumn sale that includes fine art, jewellery and rare porcelain, a week-long event that is being closely watched as a barometer of Asian demand for luxury goods at time when economic gloom is spreading globally. New York-based Sotheby's said its first day sale, the eighth part of the long-running Classic Cellar of a Great American Collector, sold all bottles, fetching a total of $3.5 mi...

Rumor: Changyou to Acquire 17173.com BiaNews, 9/30/11 An industry source closely connected with Chinese online game developer and operator Changyou (Nasdaq: CYOU), a subsidiary of internet portal Sohu (Nasdaq: SOHU), has revealed that Changyou is soon to acquire online gaming portal 17173.com from Sohu. At present the two sides are ironing out the final details of the negotiations, and once the transaction is completed, 17173 will operate as an online gaming media outlet subsidiary of Changyou, maintaining independent operations. The source also revealed that the acquisition is set to be completed by the end of this quarter. According to the source, financial aspects aside, the transaction will not have a large impact on Changyou or 17173; Changyou's acquisition of 17173 comes as part of a more comprehensive adjustment of business objectives by Sohu. At present both Changyou and 17173 have yet to comment on the news. 17173 was established in 2001, and was acquired by Sohu in Novemb...

China #1 Apparel Market Casual Apparel Sales Up 20 percent Chinese Women Spend 15 percent of Income on Cosmetics New York, Monday, October 3, 2011 Internationally known China business consultant Michael Zakkour of Technomic Asia, said the flood gates are open for foreign fashion brands in China. Speaking today at the Fashion Institute of Technology event entitled Fashion, Beauty, and Status, Zakkour highlighted his year long study On The Frontline of Chinas Apparel and Luxury Markets. China is the number one apparel market and the second largest fashion accessory market in the world. The opportunities for established and independent fashion brands are opening up now in second and third tier China cities. We see accelerated investment in cities including Chongqing, Suzhou, and Qingdao, said Zakkour. Technomic Asias research showed Louis Vuitton, Burberry, Coach, and Ferragamo investing in these new fashion-conscious urban markets. These are cities that every US business should ...

To all my friends, colleagues, partners in China, enjoy your well deserved holiday.

Source : Wine Spectator By Suzanne Mustacich Throughout this summer's sales campaign for 2010 Bordeaux futures, as chteaus released their wines at record prices and a number of loyal customers in America decided to pass, most analysts believed China would make up the difference. Thirst for high-end Bordeaux among China's wealthy has been growing for five years. This was supposed to be the year China came through for Bordeaux, leading to one of the most lucrative futures campaigns ever. If only it were that simple. We had a really good campaign, said Jean-Pierre Rousseau, managing director of the ngociant Diva. "We did as well as last year [value-wise]. But overall, we sold much less winefewer brands and less volume of each brand. And we also kept less wine than last year." Several sources told Wine Spectator that yes, this was the most profitable futures campaign ever and China deserves a large amount of the credit. But the campaign was not the blockbuster many had ho...