Companies
Metal manufacturer buys majority stake in Hollywood film company
A Chinese metal manufacturer has announced the acquisition of a majority stake in a Hollywood film production company, the latest move of Chinese industrial firms seeking to diversity from loss-making businesses amid the economic slowdown.
Xinke New Materials Co Ltd, a copper processor based in Anhui province, said it will acquire 80 percent of stake in Midnight Investments LP, the owner of Hollywood production studio Voltage Pictures for 2.39 billion yuan ($350 million), according to its filing to the Shanghai Stock Exchange published on Sunday.
The US filmmaker produced movies including the award-winning Hurt Locker and Dallas Buyers’ Club.
Xinke’s move followed Chinese property developer Dalian Wanda Group’s $1 billion purchase last week of Hollywood television company Dick Clark Productions which produces the Golden Globe and Billboard Music awards.
Industry analysts said the deal highlighted the trend in China where industrial companies are stepping up efforts to diversity their business from loss-making sectors through investment in more promising business such as the entertainment industry.
“There is certainly a trend here as companies in loss-making industries are looking for opportunities in sectors with high growth potential. Entertainment is one of them,” said Xiao Han, a partner at Chinese entertainment research company EntGroup Inc.
Xinke said in its filing that the deal, which will be a cash transaction, will help boost its profitability and strengthen its position in the domestic and international film business.
The company reported a loss of 79.8 million yuan in the third quarter while the US firm Midnight Investments reported total net profit of $118 million in the first half of this year.
An anonymous banker who advised Xinke on the deal was quoted by the Financial Times as saying that the company was “aiming at strategic transformation through the acquisition”.
Xinke already entered the Chinese…
China
Government subsidies don’t boost Chinese firms’ productivity
China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.
Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.
(more…)Companies
Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
(more…)Companies
Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
(more…)- Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
- China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
- U.S. national debt is its Achilles’ heel, but China sees it as an opportunity
- 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
