Category News of China

China Mobile seals Pakistan deal

CHINA Mobile has paid US$284 million for a majority stake in Paktel Ltd, Pakistan’s fifth largest mobile operator, the company said yesterday.

The deal has been sealed in Istanbul, Sina.com said today.

The Beijing-based China Mobile now has an 88.86 percent stake in Paktel, a unit of Luxembourg-based Millicom International Cellular SA, which operates networks in developing countries.

Liu Aili, vice president of China Mobile, has been elected as the board chairman of the new venture in Pakistan, said the company.

The venture will be the world’s biggest mobile phone carrier’s first international deal and is seen as a symbolic start for its global expansion strategy, insiders said.

Paktel, which has 1.5 million users, is valued at US$460 million, according to a statement from Millicom.

Hong Kong-listed China Mobile earned 96.8 billion yuan (US$12.1 billion) last year, up 23 percent from 2005. The company’s total user base hit 318 million, a 20 percent increase from the previous year, the company said in a statement last month.

China Mobile’s development strategy is to invest overseas, especially in emerging markets, company Chairman Wang Jianzhou said in September.

China Mobile wants to export the marketing tactics and technology it developed in the rural areas of China, the world’s largest market by users, to emerging countries.

Minister tells G7 China does its part

China has been contributing to improving the world economy and will continue to do so by stimulating domestic demand, Finance Minister Jin Renqing said at a meeting of the seven industrialized nations (G7).

While the nation seeks to do its part, industrialized countries should assist developing economies to build capacity, while strengthening control on international speculative funds, he said.

Key developing economies China, India, Brazil, South Africa, Russia and Mexico were also invited to the conference, held on Friday and Saturday in the Germany city of Essen.

Jin said China has been taking measures to rectify its economy’s reliance on investment and exports. The measures included reforming income distribution, improving the social safety net and accelerating development in rural areas.

Officials from the 13 countries focused on bond market development in emerging market economies during a dialogue session between developed and developing countries. They agreed that growth in the global economy and ample liquidity have created a favorable environment for bond market development.

Chinese policy makers said that the bond market should become a more important venue to raise capital to reduce Chinese enterprises “unhealthy over-dependence” on banks.

However, Jin said that the development of bond markets must undertaken gradually according to each country’s economy.

China’s central bank chief Zhou Xiaochan, who also attended the meeting, told reporters that he was satisfied with the evolution of the country’s exchange rate system.

China has been following its plan to increase the renminbi’s exchange rate flexibility, Zhou said. He added that seasonal factors may explain a recent rise in consumer prices.

Shanghai go-getters win wage rises, but trail trend in Asia

EMPLOYEES in Shanghai multinational companies won substantial pay increases last year due to a growing professional demand.

But the city still has lower labor costs than other major centers in Asia, according to a definitive report on salaries.

The report, released by Nasdaq-listed headhunter Hudson Recruitment yesterday, covered the pre-tax payroll of a total of 309 positions in nine different sectors – such as manufacturing, banking and financial services, advertising and communications and human resources – in Shanghai, Hong Kong, Singapore and Japan.

Pay increases varied widely in the different industries.

Upward trend

For instance, employees in the manufacturing and industrial sectors saw their pay rise by about 20 percent compared with that of 2005.

The increases in the advertising and communications industries reached up to 30 percent to 40 percent on average, human resources analysts said.

“Across all positions, salaries in Shanghai are presenting an upward trend, driven by the limited supply of candidates,” said Kellie Grimsley, managing consultant with Hudson’s Shanghai office.

“Companies try to offer high pay to attract and retain the talent they need.”

In the manufacturing sector, for instance, the most eye-catching positions last year went to supply-chain management professionals.

The report said that a supply-chain manager with 10 years’ experience was paid 250,000 yuan (US$31,250) to 400,000 yuan per year in the city. It is one of the best-paid mid-level positions in the sector.

Lucy Xiong, an analyst specializing in the manufacturing industry, said that the pay was bulked up as an increasing number of companies began to conduct their international procurement business in China’s mainland.

That gave rise to a large demand for local professionals with a broad international network.

For the advertising and communications sector, a senior account director in the city is paid 540,000 yuan to 660,000 yuan per year, compared with the HK$600,000 (US$76,799) to HK$900,000 for the same position in Hong Kong.

A local investment bank associate can earn 350,000 yuan per year, almost the same amount of that paid in Singapore. But it’s only half of the level in Hong Kong, according to the report.

However, salary gaps are getting narrower for senior-level positions in different regions, such as corporate finance managing director and marketing director, analysts said.

Headhunter role added to Alibaba portfolio

ALIBABA.COM Corp, China’s largest e-commerce company, has ventured into the online head-hunting sector to serve its nearly 20 million member companies trading on its business-to-business platform.

At present the service is focused on helping e-commerce professionals, especially those familiar with trading procedures on Alibaba.com, to find positions at small- and medium-sized firms, the company said yesterday.

The small- and medium-sized companies can also post their own vacancies on Alijob, a channel on Alibaba.com dedicated to the human resources service, which was launched last Friday.

“It will be free to individual job seekers, but we will charge a certain amount of money for corporate users,” said Wang Yunfeng, a spokesman for Ali College, a company division for training and certifying e-commerce professionals.

Wang said the rate hasn’t been decided yet, but it should be under 10,000 yuan (US$1,250) a year for a company to post job ads and view applicants’ resumes. There there will be a special price for companies that already pay for listing their information on Alibaba.com.

Ali College has been working with universities in China to promote Alibaba’s e-commerce standards and certificates since the beginning of 2006. More than 100 graduates who have been certified by Alibaba had started working in its member companies by the end of last year.

Alibaba.com had more than 18 million registered member firms by the end of last year, of which three million were overseas customers, the company said in Shanghai last month, when it launched a business software division, Alisoft.

China pulls the plug on Internet pirates

CHINA has closed 205 Websites in a crackdown on video, music and software piracy, authorities said yesterday.

Investigators checked out 436 reports of intellectual property theft between the end of September and January – including 130 complaints from overseas industry associations – and ordered 361 offenders to halt their activities. They also handed out fines totaling hundreds of thousands of yuan and confiscated servers and other equipment.

“Piracy of intellectual property on the Internet has seriously harmed the interests of copyright owners, leading to a large number of disputes and disrupting order on the Internet,” Yan Xiaohong, deputy director of the National Copyright Administration, told a news conference in Beijing yesterday.

Authorities imposed fines totaling 705,000 yuan (US$91,000), confiscated 71 servers and transferred six cases to prosecutors for court action, Yan said. One has already led to a conviction, he added.

The overseas complaints came from the Motion Picture Association, the International Federation of Phonographic Industry and the Business Software Alliance, Yan said.

“China treats domestic and foreign copyright holders equally, without discrimination,” Yan said. “The administration will prosecute all proven cases of intellectual property infringement.”

A Chinese regulation that bans uploading or downloading Internet material without the permission of the copyright holder went into effect last July.

Prominent cases included sites that offered downloads of software, textbooks, music and television shows.

In one case, all the Internet cafes in Changchun in northeast China’s Jilin Province were found to be linked to a database of pirated films.

One Website in southern China’s Sichuan Province was found to have provided illegal downloads of 400 movies since it was set up in 2004.

Authorities closed the site and fined its operator, Sichuan Telecom, 10,000 yuan. Sichuan Telecom is a subsidiary of the state-run China Telecom Group.

“This latest action had a limited time frame and limited results,” Yan acknowledged. “It did not solve all the problems we are facing on the Internet.”

China is home to about 843,000 Websites and 140 million Internet users, making it the world’s second-biggest Internet market.

The Internet penetration rate in China has developed at lightning speed in recent years. The country’s online population is expected to overtake the United States as the world’s largest in about two years.

About 210 million of the America’s 300 million people are online, according to the US government. China currently has 137 million people online.

Yan said there are 843,000 Chinese Websites at present.

Cisco eager to lay out India plans

Cisco, the world’s biggest computer-networking equipment maker, clocked 40% rise in profit. The company said that the profits rose as customers upgraded their communications systems for video. CEO John Chambers lists out the company’s India plans going forward. CNBC-TV18 has more.

we have always been successful in recruiting some of the best and brightest wherever we go, but it does speak about both our commitment to Asia and our admiration for what countries like China and India are doing in terms of the numbers of engineers that graduate, and the environment they are creating,?says CEO, John Chambers.

Clearly hinting towards what one can expect from Cisco here in Asia, he further says, see us expand in China, specially in Shanghai, you’ll see us expand in Bangalore in India.?/FONT>

we have moved our Chief Globalisation Officer there, which really speaks to not just supporting that region, but supports our entire global operations from that region. So there a major commitment there; I think we will recruit well there and attract the talent well,?he concludes.

Hudson to Acquire Major IT Recruiter in China

Move Will Solidify Position as Asia’s Market Leader in Mid- to Senior-Level Recruitment

“This deal brings together two leading recruitment brands in the Chinese market,” said Gary Lazzarotto, chief executive officer of Hudson/Asia. “The combined expertise and geographic reach of one of China’s leading IT recruiters and our mid- to senior-level recruitment capabilities should be extremely attractive to U.S. multi-nationals seeking top talent to help enter the market or expand their operations in this high-growth region of the world.”

“Hudson’s global reach, talent network and client base will enable us to better serve our existing clients and candidates, and broaden our reach to other companies that could benefit from our specialized recruitment capabilities,” said Raymond Wong, partner of Tony Keith. “What’s more, and just as important, Hudson’s organizational culture and values mirror ours.”

Hudson, which has operated in four key Asia markets (Hong Kong, Japan, Singapore and China) for nearly a decade — will now number more than 350 professionals and seven offices primarily serving U.S. multi-national clients throughout that continent. Recently, the global recruitment and talent management firm was recognized by China’s World Management Review magazine as “Greater China’s Best Headhunting Firm of the Year” for 2006.

Hudson

Hudson (Nasdaq: HHGP – News) is a leading provider of permanent recruitment, contract professionals and talent management services worldwide. From single placements to total outsourced solutions, Hudson helps clients achieve greater organisational performance by assessing, recruiting, developing and engaging the best and brightest people for their businesses. The company employs more than 3,600 professionals serving clients and candidates in more than 20 countries. More information is available at http://www.hudson.com.

Special Note: Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements made in this release constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve certain risks and uncertainties, including statements regarding the company’s strategic direction, prospects and future results. Certain factors, including factors outside of our control, may cause actual results to differ materially from those contained in the forward-looking statements, including our ability to complete the Tony Keith acquisition, economic and other conditions in the markets in which Tony Keith operates, risks associated with operating Tony Keith as part of Hudson Highland Group, unexpected developments relating to Tony Keith’s business after closing of the acquisition and other risks discussed in our Form 10-K and our other filings made with the Securities and Exchange Commission, which discussions are incorporated in this release by reference.

IBM seeks selling part of Lenovo stake

INTERNATIONAL Business Machines Corp is seeking as much as 990 million Hong Kong dollars (US$127 million) selling part of its stake in Lenovo Group Ltd, according to a sale document e-mailed to investors.

The world’s largest computer-services provider is offering 300 million shares, or a 3.5 percent stake, in Lenovo, at HK$3.20 to HK$3.30, according to a sale document sent to Bloomberg by an institutional investor. The range represents a four percent to seven percent discount to the HK$3.44 closing price of the Chinese company’s Hong Kong-quoted shares yesterday.

Lenovo moved its headquarters to Raleigh, North Carolina, last year after acquiring IBM’s personal-computer business for US$1.25 billion in May 2005. Under the original deal, IBM held an 18.9 percent stake in Lenovo that could only be sold in stages over three years. The two companies agreed last year to allow IBM to dispose of the shares within a shorter period.

“IBM could sell down its stake further in the future when the lock-up expires,” said Mona Chung, who helps manage US$950 million at Daiwa Asset Management in Hong Kong. The impact on Lenovo shares will be limited, as “they are currently not very pricy,” she said.

IBM’s stake in Lenovo will be reduced to 11.5 percent after the most recent sale, according to today’s term sheet.

The Chinese company said in a statement on May 26 last year that it will allow IBM to sell its shares more quickly than previously agreed. Under the new terms, IBM can sell as much as two thirds of its stake from May 25, and the balance from November 1, 2007.

Sohu says Q4 profit falls 32% on higher costs

CHINESE Web portal Sohu.com Inc said today its fourth-quarter earnings fell 32 percent to US$6.1 million, weighed down by higher costs.

Revenue rose 16 percent to US$34.4 million, but missed Wall Street’s expectation for US$35.5 million, The Associated Press reported.

The company said the bulk of its sales came from online advertising. Ad revenue grew 23 percent year-over-year.

But results were hurt in part by a sharp rise in advertising costs. Brand advertising costs rose 66 percent to US$7.1 million, while search-ad costs increased by 56 percent to US$1.7 million over the previous year.

For the full fiscal year, Sohu.com said profit fell 13 percent to US$25.9 million. Revenue rose 28 percent to US$134.2 million.

Advertising revenue rose 35 percent year-over-year to US$91.8 million, helped by heightened activity related to the World Cup over the summer, Sohu.com said.

Partnership brings China to EMU

The Eastern Michigan College of Business (COB) has entered a new partnership with the Macau University of Science and Technology (MUST) in Maco, China.

“One way of building [an] environment here is to get our students to think a little more broadly,” David Mielke, dean of EMU’s College of Business said.

The partnership will bring the first group of MUST students, who come from 26 provinces in China, to EMU in the fall of this year. Students who complete the program will receive a bachelor’s of business administration degree from EMU.

Amelia Chan, assistant dean of undergraduate programs at the COB, said students who follow the 2 2 articulation agreement would complete the first two years of coursework at MUST, then transfer to EMU to complete the last two years of study. Macau students must complete all of EMU’s general education and COB requirements to be granted the Bachelor of Business Administration degree from EMU.

“I will be advising students who have applied to EMU for fall 2007, when I travel to Macau in March,” Chan said. “While there, I will also be recruiting and promoting our business programs to other interested freshmen and sophomores.”

Edward Keck, a business major, applauded EMU’s effort to bring a different culture to its campus.

“I think any time students get a chance to study with another culture, it is a positive thing,” Keck said. “This agreement will broaden my thinking about business ventures.”

On a recent trip to Macau, Mielke received more interest from students than expected when he entered an auditorium of 250 students eager to join the program.

“I expected to meet 20 to 30 students…The students’ biggest concern was how many we would accept into this program,” Mielke said. “I don’t hear our students thinking about studying abroad… I hope the students from China will help them broaden their expectations,” Mielke said.

Chan said China is a major participant and competitor in the global economy.

“Since this type of exchange usually leads to EMU/MUST faculty exchanges, this will create new opportunities for COB faculty to have direct experience, which could be shared through consulting Michigan business on economic development and global marketing,” Chan said.

The new partnership with China is the second international connection for the COB. The COB also has a duel undergraduate degree program with Keimyung University in Daegu, Korea.