Monthly Archives: May, 2015

Chinese Tech Companies Go Shopping Overseas

May 29th, 2015 Posted by Capital Markets, China Business Development, M&A No Comment yet

Flush with capital from success in their home market and a booming stock market, Chinese tech companies are investing overseas to acquire technology, talent, and know-how. Chinese outbound direct investment grew from $2.7 billion in 2002 to $102.9 billion in 2014, according to Chinese Ministry of Commerce data. That’s an incredible 40x increase over a mere 12 years. Data points to consider:

  • Alibaba’s $220 million investment for 20% of mobile video app Tango
  • Baidu’s strategic investment in Uber
  • Tencent’s investments in SnapChat, KakaoTalk, Epic Games, and Riot Games
  • Lenovo’s purchase of IBM’s low-end server business for $2.3 billion
  • Huaxin’s 85% stake in French telecom Alcatel-Lucent

The Chinese technology companies and investment groups we work with are seeking:

  1. Access to new markets overseas.
  2. Useful technologies, capabilities, and talent to help them compete in the domestic China market.
  3. Diversification of their investment portfolios.

Newport’s value proposition is to connect our Chinese tech clients with North American investment targets, assist with transaction execution, and manage portfolio companies once capital is deployed.

Read the full article from Cheung Kong Graduate School of Business Knowledge website.

Chinese Car App Fights Uber With Free Rides

May 22nd, 2015 Posted by China Business Development No Comment yet

Alibaba is a shareholder in Chinese car-hailing app operator Didi Kuaidi. Guess what tactic Jack Ma used in 2002 to fend off eBay?

eBay is a shark in the ocean. We are a crocodile in the Yangtze River.
If we fight in the ocean, we will lose. But if we fight in the river, we will win.

Jack Ma,
CEO Alibaba Group

Read the full Bloomberg article here.

Chinese Firms Investing in USA, Payroll up 5X

May 21st, 2015 Posted by China Business Development No Comment yet

The number of Americans on Chinese company payrolls has surged more than fivefold over the past five years along with growing foreign direct investment by China in the United States.

Read the full article on South China Morning Post.

Shanghai First to Allow Car-Sharing Apps

May 19th, 2015 Posted by China Business Development No Comment yet

According to a statement posted on the Shanghai government’s website, drivers for Didi and Kuadi will be registered under the same information technology platform as taxis. Didi and Kuadi are both Chinese companies that recently merged. Note the US-based Uber is not on this list.

Read the full Bloomberg article here.

CEO: Alibaba Must Go Global

May 18th, 2015 Posted by China Business Development, E-Commerce No Comment yet

With growth slowing in its core China market, Alibaba looks to expand via international e-commerce.

Read the full article on Tech Crunch.

New Alibaba CEO Takes Aim at Walmart

May 14th, 2015 Posted by China Business Development, E-Commerce No Comment yet

Three days after his appointment as Alibaba CEO, 43-year old Daniel Zhang Yong expects to surpass Walmart as the world’s biggest retail platform.

Read China Daily article here.

Tencent Earnings Beat for March 31 Quarter

May 13th, 2015 Posted by Capital Markets, Digital Marketing, Mobile Marketing, Social Marketing No Comment yet

Tencent Holdings, Asia’s biggest technology company, announced a 7% year-on-year rise in quarterly net income. Net income was 6.88bn yuan ($1.1bn) for the period, compared with forecasts of about 6.5bn yuan. Sales grew 22% to 22.4 billion yuan from a year earlier.

Hong Kong listed Tencent competes with e-commerce company Alibaba for mobile users. The company has some of China’s most popular messaging services, including WeChat.

Read the full article on BBC News.

850 million Chinese Online by end-2015

May 12th, 2015 Posted by Capital Markets, China Business Development No Comment yet

This remarkable article provides back story on how a boutique Chinese investment bank convinced Kuadi Dache (backed by Alibaba) and Didi Dache (backed by Tencent) to agree to China’s biggest Internet merger.  The merger created a credible competitor to market-leader Uber.

Among the interesting facts from the story:

  • The Chinese government expects 850m Chinese to be online by the end of this year.
  • Three of China’s richest people are Internet entrepreneurs: Alibaba’s Jack Ma at #2, Tencent’s Ma Huateng at #3, and Baidu’s Robin Li at #4.
  • Beijing, a city with a population of 21.5 million people, is home to 20 tech companies valued at more than $1billion each.

Read the full Bloomberg Markets article here.

Verizon Buys AOL for Advertising Tech

May 12th, 2015 Posted by Capital Markets, Digital Marketing No Comment yet

In a deal valued at $4.4 billion, Verizon purchases mobile and streaming advertising revenue and channels, as well as some key tech enablers.

 

China Proposal to Let In Wall Street

May 10th, 2015 Posted by Capital Markets, China Business Development No Comment yet

Bloomberg reports that China regulators are contemplating rule changes to allow foreign investment banks greater access to capital markets.

Read full article on Bloomberg.