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Chinese Online Property Market Appears Set For Lengthy Downturn Chinese Online Property Market Appears Set For Lengthy DownturnComments Off

China’s online property market industry appears set for a prolonged downturn that will last far into 2017 and potentially beyond, according to analysts who say government policies intended to steady the housing sector have depressed sales and have had the expected effect of reducing demand for the online property services.

The projection of an extended downturn in the online property sector follows years of both growth and contraction, and the volatility in the market is one of the reasons that the government is imposing strict rules to avoid a housing market crash. If China were to experience a housing market bubble that burst, it would create significantly greater economic problems affecting more sectors than a narrower decline affecting just the property market.



The declining Chinese property market “is entering a long winter for at least six months.

According to a report released this week by economic analysts Alvin Jiang and Alan Hellawell from Deutsche Bank, the declining Chinese property market “is entering a long winter for at least six months.”

The South China Morning Post notes that the analysts believe that this downturn will last through to end of 2017, which could mean it lasts even longer — potentially into 2018. The analysts say that the decrease in the market can be directly connected to government policies that aim to avoid a housing market crash by imposing strict requirements on several important factors such as managing property prices and limiting transactions. [1]

In their report, the analysts said, “Both the online property transaction business and the related listing business are suffering from the cold property market. Continuing strict policies have frozen transactions and hurt the desire of property agents to spend,” which has led to major drops in property transactions. For example, the report says that the volume of property transactions in China’s top 10 cities dropped 25 percent in October.

 

The Chinese Online Property portals

Given the downturn, the analysts decided to downgrade their rating of the online property portal sales SouFun to “sell,” citing “continuing weakness” in the sector as well as the company’s apparent “scaling down” of operations. The analysts also downgrade 58.com — another online property sales portal — to “hold” rather than “buy” for similar reasons, because it “reflect[s] our concern on the continuing weakness in the property segment.”

However, a blog post on Barron’s Asia notes that the analysts’ report appears to be late in coming, because the property market was already experiencing a freeze before the release of the findings. [2]

“Isn’t Deutsche a bit too late to the game?” asked the blog post, which noted that SouFun had already dropped 60 percent in value and 58.com had experienced a similar 50 percent decrease this year.

The conclusions on the downturn in the market are in contrast to news reports earlier this year which said that SouFun was among several online property companies enjoying a rebound of growth.

For example, Bloomberg Technology reported as recently as March this year that due to a combination of government stimulus funding and a growth in the property market SouFun recovered 25 percent on the Bloomberg China-U.S. Equity Index compared to February this year. [3]

The Deutsche Bank analysis underscores the unpredictability and volatility of the housing market, and suggests that online property companies might need to rethink their strategies for 2017.

 

[1] http://www.scmp.com/business/companies/article/2056007/chinas-online-property-agencies-face-prolonged-downturn-analysts

[2] http://blogs.barrons.com/asiastocks/2016/12/14/chinas-property-market-is-freezing-up-sell-this-stock-now/

[3] https://www.bloomberg.com/news/articles/2016-03-27/online-property-companies-soar-on-china-s-real-estate-recovery

 

4 http://marketingtochina.com/generate-clients-requests-real-estate-field/

Chinese digital philanthropist entrepreneurs Chinese digital philanthropist entrepreneursComments Off

Discover the philanthropist entrepreneurs in China

 

Source: Harvard.edu

 

Chinese CEO’s are turning into real philanthropists. According to Harvard.edu, TOP 100 China’s greatest donors have contributed in 2015 for 0,03% of China’s GDP, donated more than 3,8 billion USD and most of them decided to invest in Education or Environment. Also, most of them gave back to their hometown and have in average 54 years old. The most generous entrepreneur in China is He Xiangjian, founder of Midea Group, a household appliance company with a donation of 400 million USD over the year.

In 2014, Jack Ma, co-founder of Alibaba, 29th richest person worldwide, second in China, as well as his partner Joe Tsai, started the philanthropic trend in the Chinese IT industry by creating trust funds with option shares which account for about 2% of the actual total of Alibaba’s equity. M. Ma has been an active player in the charity scene in China since 2009 when he took part in some of his friends’ charities (Jet Li).

 

 

His trust fund mainly focuses on projects involving the environment (water issues) health, education, and culture. The creation of non-governmental organisations in China only started a couple of years ago mainly because of the Chinese government strict rules, unwilling to share more power with individuals and corporations. It’s very common in China to see NGO not being “officially” charities but business companies. Actually, even some NGO’s in China are run like normal businesses.

 

To follow their footsteps, other Chinese wealthy entrepreneurs decided to give it a go. Early last month, in April 2016, Ma “Pony” Huanteng decided to help the Chinese population by opening a trust fund dedicated to charity. His donation equals to 100 million shares from his company.

 

Ma “Pony” Huanteng is the CEO of the Chinese group Tencent. A social media giant in China, creator of QQ Tencent a couple of years ago and of the now well-known WeChat (Weixin in Chinese).  He is a net worth of 19 billion USD, is 44 years old and graduated from Shenzhen University. He is now the third richest man in China.  Tencent is a high-tech group offering several services in the IT, The Internet and social media industry. The company’s value has, since 2015, exceeded 200 billion USD.

 

 

As of today, M. Ma owns 833 million shares of Tencent. The focus of the new organisation would be education, environment, education and other fields, which needs support.

 

To conclude, we can see that China is not only growing economically but is also being more open minded. Another good example of philanthropy in the digital industry overseas is Mark Zuckerberg and his wife, who decided to offer 99% of their Facebook shares.

Electronic devices market in China Electronic devices market in ChinaComments Off

The market for traditional products of consumer electronics in China is maturing, more than in the whole world. With the rapid development of information communication technology, China has become the largest manufacturing centre in the world for electronics, including televisions, computers, telephones and DVD players.

Here’s electronic devices market in China.

Market development in China

China became in 2013 the first market for electronic devices ahead of the United States. The spending in Asia reached $ 282 billion, and the world 1,068 billion dollars. The bulk of the expenditure was made by console video games, and televisions. In 2014, it is 1024 billion dollars that were spent in electronic devices around the world, including a three dollar spent in China. Shenzhen is the Chinese city that produces the more electronic devices in the world. In 2014, the city had a gross domestic product of 171 billion, largely due to its electronic production. Giants like Apple, Dell and HP make assemble and build their electronic components in this city.

The different categories

Equipment suppliers

Filcontrol is the technology leader in equipment products for textile machine industries. It is present in the Chinese market since 2005.

Phone

Huawei was founded in 1988 in Shenzhen in China. It is a company that provides services in the information technology sector and communication including phones. Its services are present in 140 countries, representing one third of the population. It achieved a turnover of 28 billion euros in 2014.

ZTE was founded in 1985 and also offers telephone services.

Xiaomi is the start-up that had the best start in the world. It was founded in 2010 and was valued at $ 45 billion in 2014. It sold up to 61 million units last year.


Computers

Lenovo is a Chinese company founded in 1984 by Liu Chuanzhi. Lenovo mainly manufactures computers, telephones, workstations, computer servers and connected TVs. However, the bulk of sales of Lenovo is done through computers, especially since he bought the PC division of IBM. However, it wants to focus on phones especially abroad, where it is still not very present. He recently bought Motorola Mobility. In 2014, its sales in the last quarter business was 10.8 billion.

Televisions

Skyworth or Hong Kong Skyworth Digital Holdings Company was founded in 1988 (From Bloomberg). It designs, manufactures and sells televisions and audio-visual products.

Maxpac is an electronics company including LCD TVs.

Mobile operator

In the area of ??mobile operators we can find China Mobile, China Unicom and China Telecom.

China Mobile is the largest mobile operator in China. It was founded in China in 1997. It has over 720 million subscribers. This is the largest mobile operator in terms of subscribers which is normal given that China is the most populous country in the world, however it remains only used in China.

China Unicom is the second on the China market. It was founded in 1994 in Beijing. It serves over 80 million subscribers.

China Telecom is the third. It was created in 2002 and has a network of over 70 million people.

Appliances

Haier was founded in 1984 by Zhang Ruimin in Qingdao. This is a home appliance company but it also manufactures TVs. It makes refrigerators, air conditioning machines and washing machines. Haier’s goal is to position itself as a premium brand but is in many countries a low-end brand. However, the company operates in several countries in Europe and also in the United States.

Hisense is a company of electrical equipment. It was created in 1969 in Qingdao. It is the result of the consolidation of brands Combines, Kelon and Ronshen. It is present in the whole world. Its turnover has exceeded $ 16 billion in 2014.

Development in the future

This will undoubtedly increase in the coming years due to the growing middle class: in fact, nearly 220 million households will be part of this class of 2022 according to estimates. China’s new middle class that have a lot of requirements and applications in the high-tech world: some products that they could not buy are now within their reach and they fully intend to enjoy it. So they try to have the latest electronic devices. New categories appear as 4K televisions that everyone is trying to produce and sell in bulk. The Chinese are particularly equipped to sell as much as possible: Chinese companies dominate the market for 4K TVs. Chinese company for Seiki example sells 39-inch 4K TVs for $ 499, which is low compared to what can be found in the market. Leading brands like Hisense, Skyworth and TCL are all trying to build televisions 4K high standard, always keeping the lowest possible prices. Connected objects are also on the agenda, and China hopes to equip its electronic products.

The electronic market is exploding in China since it is very tighly linked to online activities, something Chinese have come to see as part of their lifestyle. These past few years, numerous local companies have started challenging foreign companies on their own turf: High Quality reliable goods. However, the edge is still in favour of first. Why? Two reasons :

Simply put : trust. Too many scandals have gone between Chinese consumers and local companies in all kinds of industry and the electronic market is not an exception. Besides, it is also a matter of prestige. Foreign companies are often seen as giving more face, the typical Chinese social rule of showing how successful you are to be respected. In this matter for now, in the mind of a large part of Chinese mobile users, there is no possible comparison between Apple, Blackberry, Samsung and say Lenovo or Xiaomi. Ask a Chinese to exchange his iphone for a local brand, something still true even though you can find good phones sold by Chinese brands. Oneplus or the latest Xiaomi have received much praise for their features. Alas, the cliché is still present, much to the benefit of the Foreign brands.

Finally, promoting products via e-marketing and the latest inbound marketing strategies has
never been the Chinese companies’ forte. They are brilliant at doing business and getting the best deals but yet again, foreign companies have more experience in marketing. So, to be successful, a foreign newcomer in the Chinese market must use the services of a foreign inbound marketing agency that knows the Chinese market very well in order to get that big edge it would need (here for a list of good marketing agencies in China)

More about phone manufacturers on Business Internet in China here

WeChat: a success story ! WeChat: a success story !Comments Off

WeChat: a success story !

 


WeChat in English or Weixin   (??) in chinese means litterally « micro message ». This is a smartphone application developed by Tencent in China  and launched in 2011 and quite similar to smartphone applications like Whatsapp, Line, or KakaoTalk. WeChat allows users to chat one-on-one and in-groups. It’s available for iPhone, Android, Windows Phone, BlackBerry and Symbian platforms. Many languages are supported.

The application is available in the App Store for iTunes, Google Play Store for Android and Blackberry App World        for Windows Phones.

www.wechat.com
WeChat also provides social networking via photo/video sharing, shared streaming content feeds and location-based social plug-ins (’Shake’, ’Look Around’, and ’Drift Bottle’) to chat with and be friend with local or international WeChat users. The app is now generating 700 million location-based activities each day.
 

Now more than 300 millions users!!!

WeChat reached 300 million users on Jan. 15, less than two years after its launch on Jan 2011.  Let’s have a look on how WeChat succeded in that. First, Weixin was launched on January 21, 2011 and took over a year to reach 100 million users. Then it added another 100 million users, with international exposure in Hong Kong, Taiwan, Macau, Japan, and the United States. Indeed the app went global in April 2012 when it picked up its catchy English name. At a recent conference Tencent CEO Pony Ma said that WeChat was set to surpass 300 million users in January 2013. He was right. Indeed While going from 100 million to 200 million took six months, the leap from 200 million to 300 million took only a mere four months. Most of new accounts comes from India where WeChat has been promoted via gaming website Ibibo. But the app is also doing quite well in Hong Kong, Taiwan, Singapore, Malaysia, Thailand, Vietnam, the US, and across the Middle East.

 

Here is a visual that sumerize WeChat’s growth:

 

 

WeChat  in the near future ?

It seems that far from hitting saturation point WeChat which is already the world’s biggest mobile messaging app is going to grow even faster than before. Tencent will continue to expand WeChat abroad and build data centers in the United States, in India and in Southeast Asia to speed up the user experience.

 

WeChat will also have to deals with the issues of transparency and private life protection. Indeed the media company Tencent communicate very few information about WeChat. Until now it’s hard to know precisely how many WeChat are in China and how many are foreign users. At least we can say that the total amount of WeChat users may be reliable. Indeed while registering on WeChat you are ask to provide you mobile number or qq number. This prevents the risk of seeing many fake accounts like what you can see with Sina Weibo.  Last but not least a growing number of people are concerned about whether Chinese authorities in Beijing may have access to user data . Dissidents even are worried because they believe security services may use WeChat to monitor in real time the movement of some of its 300 million suscribers.  Well we will see…

source Wechat

 

Analysts said Alibaba may acquire Yahoo all assets in Asian Analysts said Alibaba may acquire Yahoo all assets in AsianComments Off

Alibaba had already hired Duberstein Group (an American company), they will negotiate for acquiring Yahoo asset. Analysts thought Alibaba might buy Yahoo all Asian assets.

Softbank Corporation who has a 30 percent stake in Alibaba and also is Yahoo’s a partner in Japan becomes a lobby group with Alibaba.

September, Alibaba founder Jack Ma had expressed: if opportunity is acceptable, he is interested in the Yahoo.

The lobby company in Washington can help Alibaba respond to U.S. political opposition, avoid the internet control and inspection and so on, to let Mr Ma acquire the assets of Yahoo.

“Sometime ‘national security’ is just an excuse, the real reason is the commercial purpose. ” Marbridge Consulting, executive director, Mark Natkin point out:” I don’t think that there will be a big problem about Alibaba acquires Yahoo, the users can still share or keep date follow their inclinations. Whether or not concern the company of attribution where the user decisions. ”

Sale situation will become clear

Alibaba, Softbank and Yahoo have been looking for good means to be able to disentangle the complicated relationship among them. An insider says, early in the autumn, Alibaba had hired Duberstein and the private equity firms to deal with the acquisition about Yahoo. Although these private equity firms had attempted to buy all assets of Yahoo, but the result of discussion, they thought of selling Yahoo off in pieces maybe was a better idea. American assets will be belonged to the purchase group, while Asian assets will be sold to Alibaba and Softbank.

An insider says, at present the situation of the acquisition about Yahoo has became clear. Yahoo will plan to sell the Asian assets to Alibaba and Softbank. The part of the value is $17 billion. Alibaba can also buy-back Yahoo had 40% of the group holding shares, getting the ownership Yahoo in Japan.

Yahoo has been finding a reasonable way to deal with the business and reform the style, to copy with Google and Facebook.

In early December, the media had reported that a few lenders were considering for Alibaba providing $4 billion loans to help the company buy-back Yahoo had 40% of the group holding shares.

The background of lobbying companys

According to the U.S. congressional record, Alibaba had submitted some documents, preliminarily revealed the company intent to lobby the U.S. government.

Kenneth Duberstein is responsible for Duberstein group who was served as a staff of the officials in White House when President Reagan. The company also includes BP, Goldman sachs, Pfizre and so on.

In addition, Duberstein says, American law firms like Wachtell, Lipton and Rosen & Katz will serve as the lobbying team of Alibaba and Duberstein.

December 23, the United States senate office had received the related records of lobbying team, then it issued to online. But the lobby about the takeover of Yahoo maybe has already started.

According to the law of the United States, lobby companies must disclosure of relevant files to the public in 45 days when they were in contact with officials formally. Alibaba’s record says, the matters had already launched on December 1, 2011 formally.

Sohu Q2 China Online Ad Sales Sohu Q2 China Online Ad Sales(0)

Net income was $33.45 million, or 82 cents a share, little changed from $33.53 million, or 79 cents, a year earlier, Sohu said in a statement. The Beijing-based company was expected to post profit of $32.2 million, based on the average of 11 analysts? estimates compiled by Bloomberg.

Sohu last year spun off online games unit Changyou.com Ltd. to focus on selling advertising to companies. Chairman Charles Zhang is boosting spending to develop Sohu?s search engine, Sogou, after Google Inc. moved its Chinese service offshore amid a standoff with local regulators on Web censorship.

Sales increased 15 percent to $146.1 million, Sohu said. Revenue from Internet advertising rose 26 percent to $57.1 million, while online game sales gained 17 percent to $77.7 million.

Third-quarter revenue will range from $153 million to $158 million, Sohu said.

Sogou accounted for 1.1 percent of China?s paid-search market last year, making it the country?s third-biggest behind Baidu Inc. and Google, according to research company iResearch.

Source : Konaxis

The number of Nasdaq listed Chinese companies has reached 145 The number of Nasdaq listed Chinese companies has reached 145(0)

NASDAQ OMX senior vice president who is in charge of new listings and capital market – Bob McCooey – said: “We are pleased to be listed on Nasdaq, as Nasdaq is the innovation and growth birthplace?.

Gao De software is the 22th Chinese company to be listed in USA since 2010, and also the 8th Chinese company to be listed at Nasdaq. Gao De software will use the IPO funds raised to add data-processing equipment and R & D center.

Among Nasdaq 145 listed Chinese companies, 123 companies are from mainland China, 16 from Hong Kong and 5 from Taiwan, 1 from Macau. In these companies, the one with largest market value is Baidu. Baidu is also inside the Nasdaq 100 Index.

Huayi Brothers invested 149 million yuan to obtain shares of Beijing palm fun Science and Technology Huayi Brothers invested 149 million yuan to obtain shares of Beijing palm fun Science and Technology(0)

Huayi Brothers spent 73.5 million yuan on 12.25% shares, and shareholders Yao Wenbin, Yeying Tao, Deng Pan, Yang Kai were sellers. By the time of first payment for shares made by Huayi Brothers, it will automatically get 12.25%.

Huayi Brothers added 75 million yuan, out of which 1.25 million will be used add palm fun science and technology registered capital, and 73.75 will transfer to palm fun science and technology capital provident fund.

Palm fun is primarily in mobile games, webpage games, community gaming and other services. Palm fun as leading mobile game developer and distributor, self R&D “Qian Fu”(permited by tv series with same names), “3 Kingdoms Fighting” (also permitted by tv with same title)games and products, and act on behalf of American game company EA’s “Need for Speed”, “2010 FIFA South African World Cup” and other mobile games. Palm fun also established a wide range of mobile games distribution channels, and began to cross-platform (Web-Mobile) webpage online games, social gaming R&D and distribution.

Palm fun has 7 Subordinate with 100% holding, such as Wolong Technology Co., Ltd., Dalian, Beijing No.9 Technology Development Co., Ltd., Beijing China Entertainment Juyou Technology Development Co., Ltd., Beijing China Entertainment Juyou Industrial Science and Technology Co., Ltd., Beijing Feng Shang Jiacheng Technology Development Co., Ltd., Beijing Juyou palm Union Technology Co., Ltd. and Guangzhou luck Communication Technology Co., Ltd..

China’s first cultural media industry fund is in operation; 2 billion yuan collected China’s first cultural media industry fund is in operation; 2 billion yuan collected(0)

CMC’s principal initiator and investor parties have strong financial investment and background of the media industry, including the Shanghai Oriental Culture Industry Investment Co. held by Shanghai Oriental Media Group Limited (SMG, the original Shanghai Media Group), Guo Kai financial limited co., subsidiary of China National Development Bank, Shanghai Dazhong Public Utilities (Group) Co., Ltd. held by Shanghai Volkswagen Group, Shenzhen Tian Zheng Capital Equity Investments Limited, subsidiary of China Merchants China Fund Investment Co., Ltd., Wenhui Xinmin United Press Group, the broadband capital and other institutions.

It is known that the agency will focus on restructuring in the field of culture and media, industry consolidation and innovations, self-positioning to be strategic investors to promote the development of domestic cultural industries across; At the same time the Fund will be committed to the “Chinese culture going out” by using the means of capital to get involved in the international media market, building Chinese global media investment and operation platforms.

Specifically, the fund will focus on providing growth capital, corporate restructuring, management buyouts and other market-oriented financing.

Li Ruigang said earlier that the current assets value of Chinese media had been seriously underestimated, and only the capital market could find all of its internal value and market potentials.

Tencent Record Net Profit Tencent Record Net Profit(0)

Tencent said it saw weaker seasonality in the second quarter for its IVAS business, citing fewer holidays in the period and students’ exams.

The company, China’s largest online game operator and instant messaging platform, reported 90.8 percent growth in revenue from online games. IVAS revenue totaled 3.39 billion yuan for the quarter.

IVAS contributed most of Tencent’s total revenue, online advertising contributing 4.8 percent and mobile services 14.6 percent.

Tencent said net profit rose to 1.78 billion yuan in the first quarter, from 1.035 billion yuan a year earlier. Revenue rose 68.8 percent to 4.23 billion yuan.

Last month, Tencent paid $300 million for 10 percent of Digital Sky Technologies, an investor in the Russian equivalent of Facebook, which also recently purchased chat messaging platform ICQ from Time Warner.

Tencent’s ambitions to expand overseas comes as China’s online game market becomes more cutthroat, with companies churning out similar games, jockeying for the attention of an audience whose tastes are becoming more sophisticated.

Online game revenue in China rose more than 40 percent in the first quarter to 7.82 billion yuan, said Beijing-based Analysys International.

Source : Konaxis

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