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China Business News Tuesday (2021-03-10)


1. Is Tencent a technology company or a startup investor?

Tencent has reportedly generated about USD 120 billion in revenue last year from a minority stake in about 100 publicly traded companies that it holds. This is equivalent to six times its expected earnings in 2020. This is a big difference compared to US technology companies, which invest their cash conservatively in bonds and government securities. Besides, the current performance of Tencent's core business, online games, online advertising, and other consumer Internet businesses, is still outstanding, and its cloud computing business is growing.

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2. Retail veteran Gome Retail reports big eCommerce GMV growth.

The GMV of Gome Retail's two eCommerce platforms increased almost fourfold year-on-year. In addition, they are also planning their own shopping festival. According to reports, Gome Retail has also seen rapid growth in the non-household sector, such as mother and child care. One reason for this is a new app that focuses on live streaming and includes gamification.


3. Homecoming of the three US-listed EV companies?

Various sources claim that all three EV manufacturers NIO (NYSE: NIO), XPeng NYSE: XPEV), and Li Auto (NASDAQ: LI), are seeking secondary listings on the Hong Kong Stock Exchange. In doing so, the share capital is to be increased by at least 5%. The speculated move is reportedly aimed at capitalizing on increased interest from Asian investors in high-quality, trusted names. The stock exchange listings could take place as early as mid-2020.


4. Baidu supplies its own AI voice chip for TCL's mass production of television.

TCL Technology will use Baidu Honghu voice chip for the first time in its new TCL smart screen products. This is the first time the Baidu Honghu voice chip is implemented in a mass-market home appliance product. This technology is based on Baidu's intelligent cloud and allows users to directly turn on the TV by using the wake-up word in standby mode with ultra-low power consumption.


5. Despite sanctions, Huawei is still the largest telco equipment supplier.

Despite well-documented difficulties in certain markets, Huawei actually increased its worldwide market share (by revenue) thanks to strong demand in its home country. The Chinese vendor's share by revenue rose to 31%, ahead of Nokia (15%), Ericsson (15%), ZTE (10%), Cisco (6%), Ciena (3%), and Samsung (2%). Ericsson and Nokia can be seen as the main beneficiaries of Huawei's difficulties in some countries.


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