China
HTC May Need to Consider Merger
As HTC Corp. slides toward its first operating loss on record, a growing chorus of analysts is suggesting a cross-strait merger as a last-ditch solution. But a marriage on the other shore would hinge as much on politics as well balance sheet considerations. From a financial perspective, an alliance with a Chinese company could make sense for the embattled Taiwanese smartphone maker, some analysts say. “They’re already at a loss-making level and have not been able to turn around, so they need to find a way to do a merger or another way to inject cash,” said JPMorgan analyst Alvin Kwock. “A merger with a company like Huawei could be a solution.” Other brokerages such as Macquarie have also named Chinese companies like Huawei Technologies Co. and Lenovo Group Ltd. as potential partners. HTC, Lenovo and Huawei all declined to comment on whether they would consider such a partnership. A Chinese partnership would open up the huge China market — which shares the same language with Taiwan — to HTC, which is struggling with higher costs from shrinking economies of scale. A Chinese company like Huawei could likewise benefit from HTC’s stronger brand and technology. Meanwhile, HTC shares are at an eight-year-low and continue to fall. They shed 6.7% to NT$159.50 on Wednesday following the company’s gloomy third-quarter forecast. Several brokerages have slashed their target prices to NT$100 or below in recent weeks. Taiwan’s Investment Commission said a merger between HTC and a Chinese company would be technically allowable as there is not a cap on Chinese investment in Taiwan’s telephone and handset manufacturing sector. But even if there were such an offer, there is no guarantee that Chairwoman and Co-Founder Cher Wang — who together with her husband own 6.4% of the company, the largest stake — would be willing to sell. The company is very much under the sway of Ms. Wang, so it is unlikely that a takeover could succeed without her agreement. And politically, such a match would be next to impossible to pull off. Even much smaller investments by Chinese companies in Taiwan often find it impossible to clear regulatory scrutiny. The reason for the strict standards is mainly political: Beijing has made quite clear that its eventual goal is to reunify Taiwan with the mainland. Read more on Digits.
As HTC Corp. slides toward its first operating loss on record, a growing chorus of analysts is suggesting a cross-strait merger as a last-ditch solution. But a marriage on the other shore would hinge as much on politics as well balance sheet considerations. From a financial perspective, an alliance with a Chinese company could make sense for the embattled Taiwanese smartphone maker, some analysts say. “They’re already at a loss-making level and have not been able to turn around, so they need to find a way to do a merger or another way to inject cash,” said JPMorgan analyst Alvin Kwock. “A merger with a company like Huawei could be a solution.” Other brokerages such as Macquarie have also named Chinese companies like Huawei Technologies Co. and Lenovo Group Ltd. as potential partners. HTC, Lenovo and Huawei all declined to comment on whether they would consider such a partnership. A Chinese partnership would open up the huge China market — which shares the same language with Taiwan — to HTC, which is struggling with higher costs from shrinking economies of scale. A Chinese company like Huawei could likewise benefit from HTC’s stronger brand and technology. Meanwhile, HTC shares are at an eight-year-low and continue to fall. They shed 6.7% to NT$159.50 on Wednesday following the company’s gloomy third-quarter forecast. Several brokerages have slashed their target prices to NT$100 or below in recent weeks. Taiwan’s Investment Commission said a merger between HTC and a Chinese company would be technically allowable as there is not a cap on Chinese investment in Taiwan’s telephone and handset manufacturing sector. But even if there were such an offer, there is no guarantee that Chairwoman and Co-Founder Cher Wang — who together with her husband own 6.4% of the company, the largest stake — would be willing to sell. The company is very much under the sway of Ms. Wang, so it is unlikely that a takeover could succeed without her agreement. And politically, such a match would be next to impossible to pull off. Even much smaller investments by Chinese companies in Taiwan often find it impossible to clear regulatory scrutiny. The reason for the strict standards is mainly political: Beijing has made quite clear that its eventual goal is to reunify Taiwan with the mainland. Read more on Digits.
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HTC May Need to Consider Merger
Business
Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
Southern Sun reports increased earnings, attributed to growth in the hospitality sector, while China’s property market receives a boost, reflecting economic recovery and renewed investor confidence.
Southern Sun Earnings Surge
Southern Sun has reported a significant increase in its earnings, showcasing solid financial performance amid evolving market conditions. This growth highlights the company’s resilience and adaptability to changing consumer demands, positioning it well for future opportunities in the hospitality industry.
China’s Property Market Recovery
In a bid to rejuvenate its economy, China has introduced measures to boost its property market. These initiatives aim to stabilize real estate prices and encourage investment, which is crucial for maintaining economic momentum. The government’s commitment to supporting the sector reflects its understanding of the industry’s importance in overall economic health.
Broader Economic Implications
The rise in Southern Sun’s earnings and China’s proactive approach to revitalizing its property market indicate broader economic trends. Investors and stakeholders are keenly observing these developments, as they may signal recovery and growth opportunities in both the hospitality and real estate sectors. The collaboration between local businesses and governmental actions will be pivotal in shaping future economic landscapes.
Source : Business brief | Southern Sun sees earnings rise; China boosts its property market – News24
China
Vietnam’s Approach to China: A Balance of Cooperation and Struggle
Vietnam’s diplomatic strategy seeks a balance of cooperation and struggle with China, focusing on strengthening ties while resisting encroachments in the South China Sea through military enhancements and regional partnerships.
Vietnam’s Diplomatic Strategy
Vietnam’s diplomatic approach seeks to maintain a delicate balance between cooperation and struggle with China. While concerned about China’s growing influence, particularly in the South China Sea, Hanoi focuses on strengthening its economic and political ties. This effort involves military enhancements, fostering relationships with regional powers, and engaging in frequent political dialogues. By skillfully navigating relations with major powers, Vietnam aims to protect its sovereignty and foster stability amidst evolving geopolitical dynamics.
Recent Developments and Implications
Hanoi’s diplomatic maneuvering has drawn attention, particularly regarding key visits like Vietnamese Communist Party General Secretary To Lam’s August 2024 trip to China. Although there are apprehensions about a potential shift in Vietnam’s alignment due to To Lam’s background in public security and his anti-corruption initiatives, it is premature to predict any significant changes in policy. Vietnam’s leaders must continuously seek a balance between peaceful coexistence with China and safeguarding national sovereignty.
Economic Interdependence and Military Modernization
Vietnam’s strategy involves fostering economic interdependence with China while simultaneously resisting encroachments. This paradigm of “cooperation and struggle” enables Hanoi to cultivate beneficial ties in economic, political, and security domains. By leveraging its geographical advantage and connections, Vietnam enhances its economic ties while countering threats through military modernization and cooperation with regional partners. This nuanced approach allows Vietnam to welcome trade, particularly amidst shifting dynamics from the US-China trade war, ensuring continued foreign direct investment and growth in key sectors.
Source : Cooperation and struggle define Vietnam’s approach to China
China
2025 Schedule of Public Holidays in China
China’s 2025 public holiday schedule increases holidays by two days, with an 8-day Spring Festival and a 5-day Labor Day. Adjustments address public frustration, though long work periods persist. Notably, weekends are often designated as workdays to balance extended breaks.
China has released its 2025 Public Holiday schedule. Compared to 2024, the number of public holidays for all citizens has increased by two days, specifically for Lunar New Year’s Eve and May 2nd.
The announcement also clarifies the adjusted holiday arrangements, stating that the continuous work period before and after statutory holidays generally should not exceed six days, except for certain special circumstances.
According to the notice, in 2025, the Spring Festival will have an 8-day holiday, the Labor Day holiday will last 5 days, and the National Day and Mid-Autumn Festival will jointly have 8 days off.
China has long been considered one of the least generous countries in terms of public holidays. Additionally, people have expressed frustration over the complicated adjustments to holiday and working days that are meant to create longer breaks. The newly introduced changes are expected to address these concerns to some extent.
Beyond the newly introduced changes, China’s 2025 public holiday schedule still features two major week-long holidays: Spring Festival (also known as Chinese New Year) and the National Day holiday (often called ‘Golden Week’).
In 2025, the Spring Festival falls between January 28 and February 4, and the National Day holiday, together with the Mid-Autumn Festival, fall between October 1 and 8.
Foreign human resource managers should note that Saturdays and Sundays are often marked as additional official workdays in China to compensate for long holiday breaks. For example, January 26 (Sunday) and February 8 (Saturday) are designated as workdays to partially offset the eight days off for the Spring Festival.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
Read the rest of the original article.
- Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
- Vietnam’s Approach to China: A Balance of Cooperation and Struggle
- 2025 Schedule of Public Holidays in China
- Black Myth: Wukong – how China’s gaming revolution is fueling its tech power
- News Update: China’s Stimulus Falls Short; Sensex and Nifty Decline; Bitcoin Surges Over $82,000
- China’s Import-Export Trends 2024-25: A Thorough Analysis of the Initial 10 Months
