CONTENTS
Business Information
SAP Completed Acquisition of Sybase, Inc. ... 3
Central Bank Together with 10 Authorities Studied Third Party Payment ... 3
Chinese Companies faced Great Difficulties in Responding to EU Anti-dumping Charges ... 4
Cultural China Acquired 50% Equity of MSN China for US$ 100m ... 5
Visa Re-stated Punishment to Incompliant Settlement, Denied Deadline ... 5
Siemens Announced to Restructure IT Department and Cut 2,000 Jobs ... 6
Audio Tycoon Buys Newsweek for One Dollar ... 6
Focus Chengdu
Chengdu to Hold China (Chengdu) Internet of Things Summit Forum in October ... 7Tianfu Software Park Phase 4 to Build IOT Technology Industrial Sci-tech Park ... 7
The 11th China West International Equipment Manufacturing Exposition Opened in Chengdu ... 8
BUSINESS INFORMATION
SAP Completed Acquisition of Sybase, Inc.
Source: news.qq.com Beijing Time July 31/SAP, a provider of business software solutions, last Friday announced that it has completed the acquisition of Sybase, Inc., a provider of database technology, for US$5.8 billion. SAP headquartered in Waldorf Germany revealed that all outstanding shares of Sybase held by shareholders that were not tendered into the previously completed tender offer (other than shares held by Sybase, SAP America or any of their wholly-owned subsidiaries) were converted into the right to receive US$65.00 per share in cash.
The EU approved the acquisition unconditionally last week. SAP has extended the period for tender offer of US$65.00 per share, when waiting for EU approval. SAP revealed that Sybase will be a wholly owned subsidiary of SAP America, U.S.
SAP stock price was dropped by US$0.66 to US$ 45.93 during the acquisition in the afternoon.
Central Bank Together with 10 Authorities Studied Third Party Payment
Source: The Beijing News Central Bank and some other authorities, China UnionPay, 99Bill, ChinaPnR on August 2 held a conference in Shanghai for facilitating the development of E-payment. After the conference, participants from some authorities visited related companies.
It is revealed that participants were representatives from companies and 10 authorities, including Central Bank, National Development and Reform Commission, Ministry of Industry and Information Technology, China Banking Regulatory Commission. In the conference, online-payment, electronic money and online game currency are key words. After the conference, participants visited 99Bill Corporation. Before that, there was rumor going that: Central Bank regulates online-payment, 9Bill will be out in the license application”.
It is reported that the delegation visited 99Bill to investigate the current status and future development of non-financial payment service providers. The investigation included the issuance of value cards and E-currency by non-financial card issuers; how value card, E-currency, online-payment, etc. influence E-commerce and real economy development, people's daily life; and opinions and suggestions to regulate value card and E-currency development.
Some insiders of 99Bill revealed that such investigation into non-financial payment service providers by regulatory authorities has profound influence on electronic payment. The investigation indicates that virtual currency and virtual fortune have been within the work scope of financial regulatory authorities, which will lead to continuous regulation and development of the industry.
tax avoidance, cash out and other illegal activities also utilized third party payment due to lack of regulatory.
Chinese Companies faced Great Difficulties in Responding to EU
Anti-dumping Charges
Source: People's Posts and Telecommunications News
Recently, only ZTE, Huawei, Compal attended the meeting in response to EU anti-dumping charges investigation of wireless data card organized by China Chamber of Commerce for I/E of Machinery & Electronic Products (CCCME) in Beijing, CCCME had faxed over 100 companies as per the Customs codes provided by EU in the first meeting held in July and over 20 companies responded. However, there are few companies who have patience, courage and financial resources willing to fight to die in responding to anti-dumping charges which is expected to be last long and full of difficulties.
Insiders said, most Chinese companies involved have decided not to response after half a month’s consideration, due to their strength and lacking of experience. It is revealed that not only small companies such as Red Flag and DWnet Technology, but also giant OEM providers such as Foxconn and Flextronics appeared in the preliminary list. According to analysis by insiders, the complexity of OEM may also be the main reasons for companies to give up responding, in addition to capacity and courage. It is because customer list and cost details which are precious trade secrets of OEM providers should be provided when responding to charges.
An employee of a company involved revealed that according to EU decision-making procedures, after answering various questionnaires, European Commission will verify the questionnaire results, which will take six to nine months. Or European Commission will make preliminary judge as per the questionnaire results and then verify, and finally the award will be issued, which will take at least one to two years. This challenges financial resources and efforts of companies. What’s more, it is difficult for common companies to handle with the persuasion which is beyond the capacity of companies, the difficulties and complexity of influencing the final decision of European Commission.
Chinese companies worry more about the possible chain reaction caused by anti-dumping investigation. An insider of ZTE legal affairs department revealed that if European Commission conducts safeguard measure investigation and the investigation results are proved true, EU will carry out the following measures: increase the tariff, quantity limitation and tariff quota. The maximum implementation period of safeguard (including temporarily safeguard measures) is up to eight years. ZTE legal affairs department emphasized that besides the factors of the trail, “other factors” play a decisive role in losing or winning the charges, including challenges resulted from international relationship, due to the complexity of European Commission’s decision-making chain. “To persuade European Commission members, ‘Chinese Delegation’ in EU must coordinate all parties”. In addition, unstable economic trend of EU is also critical. “If European economy recovers, our responding to charges will be favorable”. “Interference by Chinese government is urgently needed by companies”. ZTE’s appeal represents the thinking of Chinese companies.
Cultural China Acquired 50% Equity of MSN China for US$ 100m
Source: First Financial Daily Insiders from Shanghai Alliance Investment Ltd. on August 3 confirmed to First Financial Daily that Cultural China (01060.HK) has announced that it planned to acquire 50% equity of MSN China, an internet company, for US$ 100m. Netease, the previous intended buyer, gave up.
It is Shanghai Alliance Investment Ltd. who intends to sell 50% equity of MSN China. Shanghai Alliance Investment Ltd. five years ago together with Microsoft had co-established Shanghai MSN Network Communications Technology Company Limited, the operating entity of MSN China. MSN China refused to comment on August 3.
At that time, the joint venture successfully obtained ICP license. According to the regulations of the State Council, foreign investor shall not obtained over 50% equity in companies engaged in value-added telecommunication business. Through joint venture, Microsoft provides MSN messenger, portal, search, and wireless value-added services in China.
Insiders revealed that Netease gave up because it can not guarantee that it can obtain sufficient control right of key assets and operation of MSN China. Before that, some companies did not engaged also due to valuation and control right problems. So far, Microsoft has the major control right of the teams and platforms; while Shanghai Alliance Investment Ltd. plays a role of financial investor. MSN China yielded significant profits to Microsoft in the manner of royalties every year. But Microsoft did not return sufficient investment.
Visa Re-stated Punishment to Incompliant Settlement, Denied Deadline
Source:Guangzhou Daily
Visa finally responded to “Deadline”! Visa responded on August 4 to “VISA bans UnionPay overseas settlement channel” that “we never set forth deadline of August 1”. But it continued to emphasize that international trades of all Visa brands must be settled through Visa channels. Banks not complied with this regulation will be punished.
“This is not a new measure; instead, it has been implemented for 15 years. Visa customer service personnel said for sure Chinese consumer who consumed overseas with cards with both Visa and UnionPay labels settle via Visa channels.
Zhao Hui denied the report that Visa issued letters to all global member banks in May, “member banks are always required to comply with regulations; we do not issue such letters regularly to them”. Zhao Hui said, “In fact, we have issued such letters two years ago. However, Visa customer service personnel admitted that Vise sent letters to partner banks and trade companies in order to “restate the consistency of channels".
In addition, it is worthy of noting that a report in April pointed out US Department of Justice was investigating Visa for antitrust issues. "Visa's plan of banning overseas settlement channels of UnionPay cards from August 1 may not be implemented as a result of this antitrust investigation”. But Visa denied.
Visa will carry out punishment in the future.
Some Internet users pointed out in posts that based on exchange rate, the most economic way of overseas payment via card is using local currency cards, and the second economic way is to “pay through UnionPay cards in Hong Kong Dollar, Thai baht, Singapore Dollar. But for currency with very small value, such as South Korean currency and VND, “sometimes it is more economic to pay via Visa”.
Siemens Announced to Restructure IT Department and Cut 2,000 Jobs
Source: www.ccidnet.com
August 5/Siemens announced that it will cut 2,000 jobs in its German IT solutions and services (SIS) unit, part of a broader cost-cutting programme initially unveiled in March.
The company and worker representatives have reached agreement on how to implement the decision "in a socially responsible manner," a statement said. Offers would be made for the voluntary termination of employment, ranging from partial early retirement to employment termination agreements, it added. The group also planned to propose to reassign some workers internally and offer training for others.
The decision is part of a broad restructuring of the SIS division announced on March 18 that included the cutting of 4,200 jobs worldwide.
Siemens said at that time it would restructure the unit around two poles of activity -- business information technology solutions and IT outsourcing.
SIS sales have fallen for several years and analysts say its technical staff are better paid than at rivals such as IBM, Hewlett Packard and Accenture.
In the third quarter (to June) of the current fiscal year 2010 alone, SIS reported a loss of 81 million euros on revenue of 1.1 billion euros.
Audio Tycoon Buys Newsweek for One Dollar
Source:Oriental Morning Post
Newsweek founded in 1993 has a new owner. Audio tycoon Sidney Harman who will turn 92 years old thus week announced on August 3 that he will buy Newsweek, a magazine with a long history under Washington Post Co. with the price of only US$ 1. Sidney Harman promised to shoulder part of the debts of the magazine.
Although Newsweek has high status in the news circle, the magazine suffered loss of US$ 28 million, and advertising income drop by 37% last year, as more and more subscribers turn to free online news and US economy is still at downturn, leading to reduced advertising income and circulation. The previous owner had to sell it on May 5. This famous US magazine has a debt of about US$70 million. The New Yorker revealed that Chengdu B-Ray Media Co., Ltd. listed in Shanghai Stock Exchange and Nanfang Daily Media Group were the firsts to shown their attempts of buying the magazine. These two companies planned to buy Newsweek together. Washington Post Co. thinks that it shows that Chinese
government attempts to promote soft power overseas. Due to misunderstanding to Chinese media, in the end the acquisition failed.
FOCUS CHENGDU
Chengdu to Hold China (Chengdu) Internet of Things Summit Forum in
October
Source:Chengdu Daily
China (Chengdu) Internet of Things Summit Forum will be held in Chengdu in October. At that time, high-level insiders of Internet of Things (IOT) circle will discuss IOT development together. According to Chengdu Municipal Informatization Office on July 30, Chengdu not only tries to enrich IOT theory, but also has implemented IOT application demonstration project.
To promote IOT development in Chengdu, Chengdu Municipal IOT Development Planning (2010-2012) was formally promulgated in May. The Planning sets forth IOT application demonstration projects in six fields, including intelligent transport, food security, resource management and environmental protection, modern logistics, urban and rural administration, and security monitoring. The intelligent transport construction scheme has been prepared and is to be implemented.
Tianfu Software Park Phase 4 to Build IOT Technology Industrial Sci-tech
Park
Source:www.chinanews.com
Chengdu IOT is developing fast. The contracts of the first batch of IOT projects (eight projects in total) were signed on August 6, with total contract amount of RMB 6.019 billion. The eight projects, including Sichuan Internet of Things (IOT) Security Technology Industrial Project, Chengdu IOT MICT Industrial Project, and Chengdu IOT Intelligent Instrument Industrial Project, will have profound influence to Chengdu IOT development. After the project is completed, Chengdu will have China’s first IOT Security
“We will implement the industrial development planning in the next step, and promote IOT development by focusing on and breaking through fast clustering of IOT companies”, IOT Industrial Development Leading Group said yesterday. The construction of several IOT application demonstration projects has been commenced. Themed “IOT connects the world, experience Chengdu” China (Chengdu) International Internet of Things Summit Form 2010 is under preparation. The contract signing of the first batch of IOT projects today marks significant progress of Chengdu’s IOT work. The industrial cluster effect starts to appear.
According to the arrangement of IOT Industrial Development Leading Group, Chengdu will implement the industrial development planning, and promote IOT development by focusing on and breaking through fast clustering of IOT companies.
Chengdu will speed up the promotion and cooperation of key industrial projects, starting from the first batch of eight IOT projects signed on August 6; for example, the cooperation between Chengdu and Wuxi IOT Research Institute, promoting the cooperation between Datang, CHINA AVIC AVIONICS EQUIPMENT CO., Ltd. and University of Electronic Science and Technology of China. In addition to inward investment, Chengdu will make more efforts in developing local industries, speed up the construction of 30 IOT information security technological centers, support Push RFID cell phone manufacture, Wisesoft video identification system and other large projects.
With respect to the construction of industrial carriers, High-tech Zone has planned to build IOT Industrial Sci-tech Park in Tianfu Software Park Phase 4. The industrial park will focus on key IOT technology R&D and incubator base. In addition, Shuangliu County also planned an IOT industrial park covering an area of 3.2km2, with planned investment of RMB 200 million. In the first phase, the construction of 1,500mu industrial base and 60,000m2 incubator base will be conducted. The industrial park will focus on the development of IOT product production base and technical achievements transformation center.
The 11th China West International Equipment Manufacturing Exposition
Opened in Chengdu
Source: Chengdu Daily
The 11th China West International Equipment Manufacturing Exposition, also known as “the very first China west industrial exposition” and one of “three China industrial equipment exposition”, opened in Chengdu on August 5. The three-day exposition was co-organized by Chengdu Municipal People’s government and China Machinery Industry Federation. It provided 1,500 booths, with total exhibition area of 40,000m2. In total, over 700 companies from Germany, UK, US, Japan, South Korea and China attended the exposition. Several thousand types of equipment, new technology and new equipment, such as machine tools, industrial automation control, welding and advertising equipment were exhibited. It is the largest international equipment manufacturing exhibition held in Southwest China.
During the exposition, high-level “Industrial City, Industrial Park and Pan-Chengdu-Chongqing Economic Zone Summit Forum” was held; participants visited Chengdu Longtan Headquarters Economic City and some key manufacturers. A batch of key companies were invited to the exhibition, including Dongfang Electric, China Erzhong, Sichuan Air Separation Plant (Group) Co., Ltd., Chengdu Bus Co., Ltd., CSR, CAC Group, Chengdu Engine Group, Changhong Group, Chengdu Industry Investment Group Co., Ltd., Toyota, Sichuan Huaqing Machinery, Changzheng Machine Tool Group, Sichuan Investment Corporation, Guanghan Rapid Speed Railway, National Institute of Measurement & Testing. The Organizing Committee estimated that the number of visitors and sales amount would exceed that in the 10th exposition, reaching 40,000 person-times and RMB 1 billion.
Y-o-y Growth of 30.7%in Prime Operating Revenue of Electronic
Information Industry
Source:Chengdu Daily
According to the information from 2010 Chengdu Information System Half-year Working Meeting held on July 30, the prime operating revenue of Chengdu’s electronic information industry for the past six months was RMB 79.797 billion, a y-o-y growth of 30.7%. Liu Yong, Director of Chengdu Municipal Informatization Office, said Chengdu will apply for and construct “National Model City of Information Service Development” in the next six months, in addition to implement the construction of Famous Software City in China.
Statistic data shows that the prime operating revenue of Chengdu’s electronic information industry from Jan. to Jul. was RMB 79.797 billion, a y-o-y growth of 30.7%; the prime operating revenue of electronic information product manufacturers that has annual revenue of over RMB 5 million reached RMB 35.511 billion, a y-o-y growth of 27%. The prime operating revenue of software and information service industry reached RMB 44.286 billion, a y-o-y growth of 33.8%; the export amount reached US$ 230 million. The prime operating revenue targeted to reach RMB 180 billion this year, according to the development target by Chengdu Municipal Informatization Office. Liu Yong said the industry development trend of the past six months was good. The prime operating revenue this year will surpass the RMB 180 billion target, due to adjustment and optimization of industrial structure as well as the strong driving effect of IOT and cloud computing to software and information service industry. It is reported that Chengdu has 90 companies engaged in software and information service businesses. 223 products are listed in Recommended List of Chengdu Local High-quality Well-known Products 2010. The supporting of local products is favorable. Large companies and groups developed well. Chengdu Goldtel Electronical Technology Co., Ltd. is among “Top 100 Chinese IT Companies 2010”. Some Chengdu companies are expected to be listed within this year, such as General Touch Technology Co., Ltd., Chengdu Goldtel Electronical Technology Co., Ltd. and Dongying Information.
