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Tag: China

  • Alibaba acquires Hong Kong’s South China Morning Post

    Alibaba acquires Hong Kong’s South China Morning Post

    Chinese e-commerce giant Alibaba Group announced on Friday that it is acquiring Hong Kong’s English language newspaper South China Morning Post (SCMP) and its other media assets.

    It said the agreement will see Alibaba’s digital expertise being merged with SCMP’s heritage and editorial excellence.

    “This is a proposition that is in high demand by readers around the world who care to understand the world’s second largest economy,” said Joseph Tsai, Executive Vice Chairman of Alibaba Group. “Our vision is to expand the SCMP’s readership globally through digital distribution and easier access to content.”

    Robin Hu, Chief Executive Officer of SCMP, said in a news release that the company welcomes Alibaba’s commitment to invest additional resources in its editorial and business operations to make the SCMP even stronger.

    Apart from the flagship SCMP newspaper, the agreement also includes the acquisition of the magazine, recruitment, outdoor media, events & conferences, education and digital media businesses of SCMP Group Limited.

    Other SCMP titles include the Sunday Morning Post, its digital platforms SCMP.com and related mobile apps, and the two Chinese websites Nanzao.com and Nanzaozhinan.com.

    The acquisition also includes a portfolio of magazine titles, including the Hong Kong editions of Esquire, Elle, Cosmopolitan, The PEAK and Harper’s Bazaar.

    In a letter addressed to SCMP readers, penned by Tsai, the company sought to answer questions on why the e-commerce company is buying into traditional media which many consider as a sunset industry.

    “The simple answer is that we don’t see it that way,” the letter read. “We see a compelling business case for the acquisition because we believe that Alibaba is best positioned to take the SCMP to the next level. The foundation for this work must be the quality of the content. And what underpins this will be editorial excellence: a clear pre-requisite to maintaining readers’ trust and, ultimately, achieving commercial success. Be assured, we get that.”

    The letter also addressed issues on the possible compromise that SCMP’s editorial independence may be compromised by the acquisition and the commercial interest of the new owners.

    “In reporting the news, the SCMP will be objective, accurate and fair,” Tsai assured. “This means having the courage to go against conventional wisdom and taking care to verify stories, check sources and seek all viewpoints. These day-to-day editorial decisions will be driven by editors in the newsroom, not in the corporate boardroom.”

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  • Funan mall to close next year for major renovations

    Funan mall to close next year for major renovations

    Landmark in North Bridge Road to close next year for major renovations to convert it into a new creative hub. His first job as a draftsman was to draw Funan Centre.

    Mr Mark Yan’s voice lit up when he talked about his pride and joy in being part of the team that worked on the 30-year-old mall, an icon of Singapore’s IT retail history. The mall on North Bridge Road is set to undergo a major renovation. It will make way for the development of a new “experiential creative” hub, said CapitaLand Mall Trust Management in a press release.

    The mall will be closed for three years, from June 30 next year. Mr Yan had just completed his national service when he joined a Urban Redevelopment Authority team that worked on the construction of the Funan Centre in 1983.

    Funan Centre was opened in 1985, two years before Sim Lim Square. It was renamed Funan DigitaLife Mall in 2005. Mr Yan, then a URA structural technician, said: “When the team first sketched out the plan for Funan Centre back then, we had a vision of a bustling shopping destination.

    “Back in the day, if people didn’t want to go to Orchard Road, they would walk around North Bridge Road, visit Peninsula Plaza or catch a movie at the Shaw Towers,” said Mr Yan, now 55 and the father of two.

    He was very proud of Funan Centre when it was completed. “It was a huge privilege for me to be part of the team. So much work was put into it and I felt honoured that I got to contribute.” He is now a real estate agent.

    In the early 90s, Mr Yan recalled an influx of electronics and IT retailers to the mall that catered to the surge of digital technology. “In those days, everyone was very excited about owning electronic gadgets like handphones or Walkmans, so the mall was really convenient because everything was under one roof,” said Mr Yan.

    These days, he frequents the mall whenever he needs to buy accessories for his electronic gadgets or service them. When The New Paper told him about the closure of the mall next year, Mr Yan said the news was “a long time coming”.

    “It’s about time for the mall to be revamped so that it can keep up with its surroundings. In the meantime, I will have to live with buying my stuff from Sim Lim Square,” he said.

    SENTIMENT

    Logistics executive Mohd Faizal Osman, 31, said: “When my friends or relatives from out of town come to Singapore and ask me for places to get electronic goods, I immediately tell them to go to Funan DigitaLife mall.

    “It’s reputable and, most importantly, safe. I really hope they will sustain the vibe of the mall after the development,” he said.

    Another regular patron of the mall, full-time national serviceman Joseph Chai, said that the atmosphere at Funan DigitaLife Mall is different from Sim Lim Square.

    The 19-year-old, who is an avid fan of computer games and action figures, goes to the mall almost every weekend with a group of friends.

    “I like to hang around the mall because it has everything that I need. I can find all the latest games and action figures without anyone rushing me or giving me the side-eye,” said Mr Chai.

    “Once Funan closes, I will need to start sourcing for other places to find the things I need. Hopefully it doesn’t include going to Sim Lim Square.”

    Retailers scrambling to find alternatives

    Even though the rumours have been flying about for the past six months, yesterday’s confirmation that Funan DigitaLife Mall will be closed next year has left retailers scrambling.

    Mr Muthiah Nagappan, managing director of Worldwide Computer Services, said that the closure will result in big losses to his company. His shop is one of more than 170 shops at the mall. He spent $80,000 on renovations for his shop, which was opened two years ago.

    “When I received the e-mail from the landlord yesterday, I was quite taken aback.

    “Even if I open my shop every single day from now till the mall closes, it will not cover my expenses,” said Mr Muthiah, 53, who also has a shop at Sim Lim Square.

    “Now I’m really trying to find an alternative solution to this. Maybe I’ll just open another shop at Sim Lim Square,” he added.

    In an e-mail to tenants, CapitaLand Mall Trust Management Limited (CMTML) said it would endeavour to find alternative spaces at its other properties for the Funan tenants, subject to conditions such as availability and rental rates. Mr Muthiah said he will consider the offer.

    Mr Jeffrey Phua, owner of gaming computer and accessories retailer GameproSG, said that the move will be a hassle but the bigger concern is the customers. “Since all the retailers have to relocate, the shops in Funan will be scattered all over Singapore.

    “So the challenge is to retain regular customers,” said Mr Phua. Fortunately for Mr Phua, he has another branch in Sim Lim Square but is not looking to expand it.

    “I’d rather relocate my shop than expand the one in Sim Lim Square because it caters to different customers. “I’m very doubtful that customers from Funan would actually shop at Sim Lim Square,” said Mr Phua.

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  • China and India to Dominate Divergent Picture in Asian Real Estate for 2016

    China and India to Dominate Divergent Picture in Asian Real Estate for 2016

    The outlook for real estate in the Asia Pacific region remains largely positive heading into 2016, according to Colliers International’s 2016 Property Outlook. But pockets of weakness are starting to appear, according to the forecasts from Colliers International, while government policy continues to drive the behaviour of investors in many markets.

    China is the proverbial “elephant in the room” for Asian real estate. That’s whether it is as a source of outbound capital or as an investment destination. Its economic slowdown and Beijing’s attempts to rebalance the domestic economy also spill over into its neighbors and trading partners.

    “The focus remains firmly on China and the continued impact it has on all aspects of property activity,” Simon Lo, executive director, Asia research & advisory at Colliers international, says. “The dominance of China means that any changes to government policies in that country will continue to have ramifications throughout the whole region.”

    Amid general caution and cost cutting among multinational finance companies, Chinese banks will continue to drive the office leasing in markets such as Hong Kong and Singapore in the year ahead. China’s outbound tourism is reshaping the hotel sector across Asia, rapidly becoming the No. 1 source of visitors to Japan.

    India is cropping up on the radar for investors, in many cases for the first time. That is mainly as a result of its opening up of its domestic economy to international capital. Players active in India and China should see their cost of financing decline in 2016. In contrast, with U.S. interest rates set to increase, borrowing costs will be on the rise in Hong Kong and Singapore, although landlords should benefit from better yields.

    India and China combined will account for around 70% of the huge impending supply of Grade A office space, Colliers predicts, with 100 million square feet already hitting the market in 2015 and 110 million square feet due for completion in 2016.

    E-commerce is reshaping retail and industrial space around Asia. Logistics should be one of the most exciting spaces for investment, Colliers anticipates, as capital — once almost exclusively local — starts to cross borders in greater volume. Business-process outsourcing has put the Philippines on the map, resulting in large demand for purpose-built facilities there.

    China represents a significant opportunity for retailers and mall operators, Colliers forecasts, since both global and Asian mid-market food & beverage operators are underrepresented there. This suggests China can build on the same kind of trends at play in Singapore, Hong Kong and Japan, where landlords are creating more “experiential retail,” built around wellness and lifestyle as well as a broader range of dining options.

     

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  • Shopping tech firm Powa in major Chinese joint venture

    Shopping tech firm Powa in major Chinese joint venture

    Powa Technologies, a British e-commerce tech firm, has formed a “strategic alliance” with China’s biggest payments processor, China UnionPay. The joint venture could generate $5bn (£3.3bn) in revenues over three years, Dan Wagner, Powa’s chairman and chief executive, told the BBC.

    China UnionPay has about 4.5 billion credit and debit card users worldwide.

    Powa’s technology enables shoppers to pay for goods quickly in-store and online using their smartphones.

    “This is undoubtedly a huge deal for Powa,” said electronic payments expert, Dave Birch of Hyperion Consulting.

    The joint venture, PowaTag UnionPay, will launch first in Guangdong Province, targeting 400,000 retailers, the company says, before rolling out to one million by the end of 2016.

    “We have a target to reach at least 50 million consumers regularly using the platform within one year from launch,” said PowaTag UnionPay’s chairman, Mr Hu Jinxiong.

    China’s merchants – there are six million in total – will pay about 13p per transaction to the joint venture for access to the technology, said Mr Wagner.

    ‘We’ve trumped Apple Pay’

    The PowaTag system relies on digital tags – quick response (QR) codes – that can be attached to physical goods or inserted into self-service checkout screens, emails, websites, posters, images – even the audio from TV ads.

    Wherever Chinese shoppers see the PowaTag UnionPay symbol they will be able to buy products by scanning them with their phones and tapping the “buy now” button, the company says.

    US retail giant Walmart recently launched a similar quick pay system for mobiles in its stores.

    China’s Commerce Department says the “online to offline” market, whereby shoppers search for products online then complete the purchase in-store, grew 80% in the first half of 2015 and is worth about £31bn ($47bn).

    “Why did China UnionPay decide to partner with a little British technology company?” said Mr Wagner. “We’ve trumped ApplePay and the rest of the world here.”

    ‘Tap-and-go’

    State-owned China UnionPay, has been responding to the rapid take-up of smartphones across the country – about 68% of the population now has one.

    On 12 December, it launched QuickPass – a “tap-and-go” payment system for mobile phones similar to Apple Pay and other digital wallets – in co-operation with more than 20 commercial banks.

    QuickPass is already available at more than 10,000 locations in mainland China, says UnionPay, including at retailers such as Carrefour, McDonald’s, and Costa.

    “The Chinese market is going mobile very quickly,” says Mr Birch. “And the integration of payment systems and messaging platforms such as WeChat is a very interesting development.”

    This latest deal with Powa will give Chinese shoppers yet another way to shop using their mobiles.

  • The World’s Biggest Fashion Retailer is Betting Big on China

    The World’s Biggest Fashion Retailer is Betting Big on China

    Spain’s Inditex, owner of the Zara chain and the world’s biggest fashion retailer, is optimistic about long-term growth in China despite the slowing economy, as demand for its affordable fashion stays robust.

    Inditex, whose Zara brand has lured shoppers this season with a minimalist straight-cut look, teaming muted colors with ankle boots and trousers, makes about 7 percent of its sales in China, analysts estimate.

    Western luxury brands like Burberry and Hugo Boss are suffering from cooling Chinese demand, but mid-market names like Adidas and Zara are faring better.

    “We have no doubt that in China the fashion appetite is large, our brands are better and better known and we are still feeling very optimistic (over a five-year view),” Chief Executive Pablo Isla told analysts on Thursday.

    The group made a sprightly start to the Christmas season as its on-trend offerings allowed it to adapt better than rivals.

    Sales from Nov. 1 to Dec. 3 rose 15% in local currencies, suggesting a slight slowdown in same-store sales from the previous three months. But analysts said it was still a strong performance given rivals like Top Shop have had a slow start to Christmas trading due to mild weather.

    “We can say that Inditex is trading just as strongly in the fourth quarter to date as it did in the third,” Societe Generale analyst Anne Critchlow said.

    In the nine months to end October, net profit rose by a fifth to 2.02 billion euros ($2.2 billion) on sales up 16% to 14.7 billion.

    Isla said newer brands like Zara Home, Bershka and Stradivarius had performed particularly well.

    Gross margin, a closely-watched measure of profitability, slipped slightly to 58.8%, as the strong dollar pushed up prices of garments sourced in Asia, though this affects Inditex less than its peers.

    Inditex sources more goods in or near Europe, helping it adapt more quickly to fashion tastes and speedily deliver new ranges.

    Inditex shares, up 37% this year, were down 1.5% by 1037 GMT, versus a 0.7% fall in the European retail sector.

    Many market watchers have flagged the rich valuation of the stock, trading at around 34 times 2016 projected earnings, according to Reuters data, versus 24 times for rival Hennes & Mauritz hmrzf .

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  • Qianhai Chow Tai Fook mall opens in Shenzhen

    Qianhai Chow Tai Fook mall opens in Shenzhen

    The new Qianhai Chow Tai Fook mall opened its doors in Shenzhen on Monday – selling Hong Kong sourced goods to mainlanders at prices said to be cheaper than in Hong Kong.

    Officially named the Qianhai Chow Tai Fook Global Goods Shopping Center, the 19,000 sqm mall is a joint venture between jeweller Chow Tai Fook and two investment partners.

    A total of 21 retail brands opened stores in the first phase of the development opened yesterday, including beauty products chain Sa Sa, fast fashion brand Giordano and CRCare. They are joined by a range of food and infant formula retailers.

    More stores will join the development when stage two opens next summer.

    The HK$423 million shopping centre has been built inside the Shenzhen special economic zone, taking advantage of tax concessions and allowing mainlanders to buy Hong Kong sourced goods without crossing the border.

    Shenzhen has a population of 20 million creating a huge potential catchment for the development.

    Adrian Cheng Chi-kong, executive director of the Qianhai Chow Tai Fook mall, said it will not be competing with the border shopping mall planned for the Hong Kong side of the border, explaining the two properties will cater for different clienteles.

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  • Apple’s Next Chinese Retail Store Opens in Nanning on December 12

    Apple’s Next Chinese Retail Store Opens in Nanning on December 12

    Apple has announced that its 28th retail store in China opens Saturday, December 12 at 2:00 p.m. local time. The store will be located in the MixC shopping mall at 136 Minzu Avenue in Nanning’s Qingxiu District.
    The new store will be open between 10 a.m. and 10 p.m. local time on Monday-Thursday and Sunday, with extended hours on Friday and Saturday, and offer traditional Apple Store services, including the Genius Bar, Workshops and JointVenture.Apple has aggressively expanded its retail footprint in China under the leadership of Angela Ahrendts, having opened new stores in Beijing on November 28, Chengdu on November 21 and Dalian on October 24. Apple has also opened retail stores in Chongqing, Hangzhou, Hong Kong, Nanjing and Tianjin over the past year.

  • Postal Savings Bank of China has raised investment

    Postal Savings Bank of China has raised investment

    Postal Savings Bank of China has raised $7bn from a global group of 10 investors including JPMorgan, an affiliate of Alibaba, and Temasek, valuing the state-owned lender at $41bn ahead of a float that could come as soon as next year.

    The sale of 17 per cent equity marks the largest private fundraising by a Chinese financial institution, and its international collection of investors will be seen as a signal Beijing is more open to outside funds to help with its slow-moving plans to reform its state-owned enterprises.

    Postal Savings Bank is China’s biggest unlisted lender and its sixth largest commercial bank in terms of assets. It has more than 400m retail customers and nearly 40,000 branches, many of them in rural areas where until recently the only alternative was putting money under the mattress.

    A similar pre-float sale of a $17bn stake last year in the retail operations of Sinopec was sold largely to domestic investors — so-called friends and family — in spite of interest from international groups, denting hopes at the time that China was serious about bringing in outside expertise and funding.

    Lu Jiajin, Postal Savings Bank president, on Wednesday described the placement as an “example of mutually beneficial co-operation between China and the world”.

    He added: “This indicates that the world has . . . confidence in China’s financial systems and [the] stability and profitability of China’s banking industry”.

    The international investors are UBS; JPMorgan; Singapore’s Temasek investment fund and DBS, the city-state’s biggest bank; Canada Pension Plan Investment Board; and the IFC arm of the World Bank.

    CPPIB is committing $500m. Mark Machin, head of international business and president of Asia for CPPIB, said the investment met the fund’s strategic goals of investing in less-developed regions of China and increasing exposure to the Chinese consumer.

    Chinese banks have come under pressure in a rapidly shifting landscape, and face challenges including rising bad loans and competitive pressures from the country’s interest rate liberalisation agenda.

    Hong Kong-listed shares in the country’s big four state-backed banks — ICBC, Bank of China, China Construction Bank and Agricultural Bank of China — have dropped at least 17 per cent this year.

    “This isn’t a sector bet, it’s an investment in this bank,” said Mr Machin, adding that Postal Savings Bank’s focus on consumer lending helped isolate it from some of the bad loan issues faced by corporate lenders.

    Ant Financial, the payments affiliate of Alibaba; rival internet Chinese giant Tencent; China Telecom; and insurer China Life have also committed funds.

    A filing with the Hong Kong stock exchange showed China Life is putting up $2bn and its stake will not be more than 5 per cent — implying a valuation of $41bn for Postal Savings Bank.

    Pre-IPO funding rounds are increasingly being used as a way of establishing baseline valuations and demonstrating support for a company before it approaches the public markets.

    JPMorgan said its agreement with Postal Savings Bank covered “multiple levels of collaboration” between the two sides.

    An executive at one of the companies involved in arranging the deal said: “They have reached out to strategic partners who can help them professionalise rather than just have passive investors”.

    Mr Lu said Postal Savings Bank wants to establish itself “as a 100-year bank with steady operations and excellent risk management”.

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  • Lenovo launches Moto 360 (2nd Generation)

    Lenovo launches Moto 360 (2nd Generation)

    Lenovo is bringing the new Motorola Moto 360 smartwatch to the local market, making it the first time that the Chinese company is launching a Motorola product in Singapore.

    The second generation Moto 360, which was announced at IFA 2015 in September, is available in two sizes and will go on sale from Dec 15 at retail stores Newstead and Challenger, and from online retailer Lazada.

    The 46mm silver and cognac leather version will retail at $549. The 42mm rose gold and blush leather model is retailing at $499, while the 42mm black and black leather model is priced at $479.

    The circular device is one of the latest smartwatches to run Android Wear. It comes with 4GB of storage, and the larger version houses a 400 mAh battery, while the smaller one has a 300 mAh battery.

    Lenovo, which bought Motorola Mobility in 2014, had previously focused on launching its own devices for the local market.

  • Huawei Mate 8 goes on sale; sold out in China on first day

    Huawei Mate 8 goes on sale; sold out in China on first day

    The Huawei Mate 8 finally went on sale in China on Dec. 9 after its unveil on Nov. 26 and seems to have sold out at many Chinese retailers on its very first day. The flagship phone will be unveiled to the international market at the Consumer Electronics Show (CES) at Las Vegas, Nevada in January 2016.

    The Huawei Mate 8 carries a 6-inch LCD display and is available in RAM configurations of 3 GB and 4 GB. In China, the 3 GB/32 GB model of the Mate 8 costs CNY 2,999 (AU$644 or US$470) while the 4 GB/64 GB model comes in at CNY 3,699 (AU$795 or US$580).

    There is also a 4 GB variant with 128 GB internal storage capacity. This model costs CNY 4,399 (AU$ 946 or US$690). And finally, the premium and exclusive champagne edition comes with hefty price tag of CNY 6,888 (AU$ 1,473 or US$1,075), reports GSM Arena.

    The smartphone is available at over 2000 retail outlets across China. Users can also visit Huawei’s official online store, Vmall Mall, JD.com, Suning Tesco, Gome and Amazon, among other online retailers. International availability and pricing details are expected to be announced at CES 2016.

    Huawei is believed to be manufacturing one million units of the Huawei Mate 8 per month, according to earlier reports. The company is hopeful its latest flagship will surpass the previous records set by Mate 7, which sold seven million units in one year.

    The all-metal Huawei Mate 8 sports the latest Kirin 950 octa-core processor with a Mali T880 GPU; a 4000 mAh battery and a 16 MP rear camera with LED flash. The device runs on the latest Android 6.0 Marshmallow OS.

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  • Carrefour opens 4th distribution center in China in Wuqing

    Carrefour opens 4th distribution center in China in Wuqing

    The grand opening ceremony of Carrefour supply chain in China-North-West China distribution center is held in Wuqing Economic Development Area, Tianjin municipality. The foundation of the center is expected to become the overpass of Carrefour China’s supply chain in northern China, which can form the radiation of Beijing-Tianjin-Hebei integration economic cycle and Shandong, Shanxi and other provinces’ logistics and distribution network, increase the distribution efficiency, support the business of stores, and boost the regional economics.

    The northern distribution center of Carrefour launched this time has superior geographical location, which is located in ProLogis modern international distribution park, Wuqing economic development area, Tianjin municipality, covers an area of 39,000 square meters. Carrefour northern distribution center will utilize the Voice Picking System, achieving 99.997% in its picking accuracy rate. The tray utilize 100cm*120 standard operating procedure to reduce packaging and labor costs and improve efficiency; moreover, the center is equipped with professional temperature controlled room which sustain temperatures of 18-22 degrees for the storage of alcohol, chocolate and milk powder.

    To reply to the supply chain strategy development needs of Carrefour in China, the establishment of northern China distribution center will cover more than 30 stores in northern China, greatly improve the company’s northern China supply chain system to provide more high-quality, convenient products and services for numbers of consumers.

    After the establishment of the distribution center in Eastern, western and northern region, Carrefour is planning to set up 2 new distribution centers in North-East Territory and South Territory of China. It is estimated that by the end of 2016, Carrefour will complete the establishment of 6 modern distribution centers in China, and cover more than 200 hypermarkets in China to fully support the emerging industry such as E-commerce of Carrefour, “easy Carrefour” convenience stores.

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  • Inditex optimistic about push into China

    Inditex optimistic about push into China

    Intidex, the parent company of fast fashion chain Zara, has revealed a sales increase of 16% year-on-year to 14.74bn (£10.6bn) over the first nine months of its financial year. Despite a dip in the economy, the Spanish group has said that it remains optimistic about its China prospects.

    The group’s profits, which include a 20% increase to £2.02bn, come not long after founder Armanocio Ortega surpassed Bill Gates as the world’s wealthiest man.

    Though luxury fashion retailers such as Burberry and Hugo Boss have experienced difficulties in the Chinese market, Inditex is positive about its expansion overseas.

    “We have no doubt that the fashion appetite in China is large, our brands are better and better known. We are still feeling very optimistic,” said Chief Executive Pablo Isla.

    During its first three fiscal quarters, the group added 136 new stores to its estate making a total of 230, the same amount as the same time last year.

    Zara had the most openings with 60 new stores, as well as 44 Zara home sites and 26 new branches for lingerie brand Oysho.

    In addition, Zara’s e-commerce platform is being extended to all of the European Union, Taiwan and Hong Kong, while a website for Zara Home has debuted in Australia.

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  • Price Of Illegally Poached Ivory Halves In China

    Price Of Illegally Poached Ivory Halves In China

    The price of elephant ivory in China has fallen by almost 50 percent over the past 18 months, likely due to a shrunken demand in the country for illegally poached tusks, the Wildlife Conservation Network wrote this week in a blog post.

    Raw ivory in Beijing went from costing an average of $2,100 per kilo (about $955 per pound) in 2014 to $1,100 (or about $500) by November, ivory researchers Lucy Vigne and Esmond Martin revealed in a study scheduled to be released by Save the Elephants in early 2016. The price drop reflects China’s significant decrease in demand for the commodity, believed to be a result of the government’s explicit commitments to cut down on ivory trade and prevent illegal elephant poaching.

    Elephant poaching typically involves killing the animal, hacking off its tusk and discarding its carcass, The New York Times wrote in a gruesome report.

    Historically, China has considered ivory ornaments and carvings to be status symbols, and the country is still widely believed to be the world’s largest ivory consumer. But activists have long urged China to impose strict legislation on the ivory trade.

    Chinese authorities announced in May a commitment to phase out the country’s domestic ivory industry. In September, the United States and China also announced a deal to carry out “nearly complete bans” on ivory imports and exports. To show its dedication, mainland China destroyed almost 7 tons of ivory to show the country’s dedication to ban the wildlife crime, according to the World Wide Fund.

    Demand for ivory within the country also seems to have diminished. Vigne and Martin, who traveled across eight Chinese cities to conduct their research, said they “didn’t see a single person buying an ivory item during weeks spent surveying the ivory retail outlets.” The researchers also noted that many ivory retail outlets had cut back on floor space for displays of ivory items.

    Other countries have also ramped up their efforts to prevent illegal elephant poaching. Last year, the Obama administration announced that it would prohibit all commercial trade of elephant ivory. And in October, Tanzania arrested a number of high-level ivory traffickers accused of smuggling at least 4,200 pounds of elephant tusks from East Africa to East Asia.

    But despite the fallen demand for ivory in China, Save the Elephants founder Iain Douglas-Hamilton said the world still had a long way to go to stop the African elephant poaching business. Indeed, the number of elephants in Africa fell from 26 million in 1800 to about 400,000 in August. At least 65 percent of the continent’s forest elephants were poached between 2002 and 2013, WildAid reported last year.

  • Alibaba Group Acquires Major Hong Kong Newspaper

    Alibaba Group Acquires Major Hong Kong Newspaper

    The Alibaba Group has announced that will acquire the South China Morning Post, one of Hong Kong’s most influential English language newspapers, and other media assets of SCMP Group Limited.

    The move is reportedly part of an effort to improve China’s image in the West and combat what company executives call the “negative” portrayal of China in the Western media.

    “The South China Morning Post is unique because it focuses on coverage of China in the English language. This is a proposition that is in high demand by readers around the world who care to understand the world’s second largest economy,” said Joseph Tsai, executive vice chairman of Alibaba Group.

    The South China Morning Post has long reported on subjects that state-run publications have been forbidden to cover, such as political scandals and human-rights violations. The paper has a relatively small circulation (at about 100,000). Despite the paper’s size, it has significant influence in the West because of its proximity to China and English language format. However, critics have recently taken aim at the paper, claiming that it has become increasingly pro-Beijing.

    The acquisition is an ambitious move that sees Alibaba taking a significant stake in print journalism, with an eye to developing its digital potential.

    “Like many print media the SCMP faces challenges amid the dramatic changes in the way news is reported and distributed. But these changes play to Alibaba’s strengths, which is why we believe the two companies complement each other well,” said Tsai in an open letter to the readers of the South China Morning Post.

    As part of the changes, Alibaba will remove the pay wall on SCMP.com, allowing readers to access content for free on the internet and mobile.

    Other assets included in the acquisition are SCMP’s magazine, recruitment, outdoor media, events and conferences, education and digital media businesses. Besides the flagship South China Morning Post, other titles include SCMP.com and related apps, and Nanzao.com and Nanzaohinan.com, as well as the Hong Kong editions of Esquire, Elle, Cosmopolitan, The PEAK and Harper’s Bazaar.

    The acquisition represents a relatively minor investment on the part of Alibaba, with SCMP valued at an estimated US$100 million, a drop in the ocean compared with Alibaba’s multi-billion yearly revenue.

    It’s unclear at this point what degree of editorial control Alibaba will exercise over the controversial publication. While Hong Kong operates with a relatively free press, at least compared with mainland China, some are concerned that Alibaba will seek to water down the paper’s political stance to curry favour with Chinese leadership and advance its (Alibaba’s) own agenda, which is reportedly closely aligned with the Communist Party.

    Willy Lam, a political commentator and former editor at the South China Morning Post, said an Alibaba takeover would most likely exacerbate a trend at the paper toward self-censorship on sensitive political issues, reported the New York Times.

    The company has been quick to address this. “Some have suggested that ownership by Alibaba will compromise the SCMP’s editorial independence,” said Tsai. “This criticism reflects a bias of its own, as if to say newspaper owners must espouse certain views, while those that hold opposing views are ‘unfit’.

    “In fact, that is exactly why we think the world needs a plurality of views when it comes to China coverage. China’s rise as an economic power and its importance to world stability is too important for there to be a singular thesis.

    “In reporting the news, the SCMP will be objective, accurate and fair. This means having the courage to go against conventional wisdom, and taking care to verify stories, check sources and seek all viewpoints. These day-to-day editorial decisions will be driven by editors in the newsroom, not in the corporate boardroom,” said Tsai.

    “Alibaba and Jack Ma have done a good job maintaining good relations with the power structure and not getting involved in politics,” Orville Schell, a director at the Asia Society, told the New York Times.

    “But buying a newspaper, particularly in Hong Kong, could be hazardous,” he said, adding, “China is always tempted when things go wrong to take control.”

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  • Autos drive solid China retail sales report

    Autos drive solid China retail sales report

    Retail sales rise 11.2% y/y in November vs 11.1% expected

    Chinese retail sales were slightly stronger than estimates as auto sales picked up. Vehicle sales climbed 9% y/y in November compared to 7.1% in October.

    A strong automotive sector also boosted industrial production.

    The strength in auto sales and manufacturing was likely due to a sales cut tax in September for small and medium-sized cars.