Guangzhou's 72-Hour Visa Free Policy a Boon to Southern Airlines
Guangzhou, the capital of Guangdong province, has become the third mainland city after Shanghai and Beijing to offer 72-hour visa free stay to foreigner who landed in its Baiyun airport. China Southern Airlines Ltd (NYSE: ZNH, HKG: 1055, SHA: 600029), the nation's biggest carrier by passenger traffic, is set to benefit a lot from the policy as it uses the Baiyun airport as its hub.
7 Days Moves to Operate Most Budget Hotels in China
7 Days Group Holdings Ltd (NYSE: SVN), a Chinese budget hotel operator, said it has established 1,650 hotels across the nation as of the end of Q1 2013, including 223 under construction. The company opened 82 locations in Q1 2013 and plans to open 360 hotels this year, aimed at becoming China's largest budget hotel chain by number of locations.
Home Inns Posts Much Smaller Q1 Loss
Home Inns & Hotels Management Inc (Nasdaq: HMIN), China's biggest budget hotel operator by revenue, posted a $3.15 million loss for Q1 2013 as the entire industry took a blow from economic slowdown. However, the loss was about one-fifth of that recorded a year earlier. Revenue was up 11.7% to $225.8 million in Q1 2013. CEO Sun Jian said he was confident of China's hospitality industry thanks to more business activities and tourists.
Nike Names New China Chief
Nike Inc (NYSE: NKE) has replaced Craig Cheek with Michael Spillane as president of the Greater China region. Spillane has been in the garment and textile industry for 25 years. He was with Converse from 2007 to 2011 before joining Umbro. Nike's revenue from China fell 11% to $94 million in the past financial quarter, becoming the first contributing factor to an 18% decrease in global revenue.
Vipshop Turns Around from Loss
Vipshop Holdings Ltd (NYSE: VIPS), a Chinese e-tailer, posted $310.7 million in revenues and $5.8 million in net profits for Q1 2013. Revenue was up 206.8% from a year earlier as the number of active users jumped 169.9% year on year to 2.8 million in the three months. Net profit was compared with $8.6 million loss posted a year earlier due to effect cost control, particularly in delivery costs.
Tencent Said to Ax North America Jobs
Tencent Holdings Ltd (HKG: 0700), China's biggest Internet company by market value, is laying off staffs at its North American branch, a person familiar with the matter said. Around 20 employees, or 40% of its North America team, will be affected, the source said. Tencent's North America team is said to be no longer responsible for research and development following the downsizing. Instead, it will focus on business development and mergers and acquisitions for Tencent's mobile messaging apps such as QQ and WeChat.
Huawei, ZTE to Be Hit by EU Tariffs
Huawei Technologies Co and ZTE Corp (HKG: 0763, SHE: 000063), China's two largest telecom device makers, will likely be subjected to the punitive tariffs imposed by the EU for illegal subsidies, a person familiar with the matter said. European Commissioner for Trade Karel de Gucht has sent a warning letter to China, stating that unless actions were taken heavy tariffs would be slapped on Chinese telecoms firms. Huawei and ZTE combined control 25% of the European market. China is the EU's second largest trading partner.
Sa Sa Opens First Store in Central China
Sa Sa International Holdings Ltd (HKG: 0178), a Hong Kong-based cosmetic chain, opened its first store in Changsha, Hunan province, Inside Retail Asia reported. The new store covers 110 square meters and offers over 2,000 products from more than 100 brands.
Galaxy Securities Raises $1 Billion from HK Stock Sale
China Galaxy Securities Co raised $1.07 billion in its Hong Kong initial public offering, marking one of the city's largest deals since late last year, the Wall Street Journal reported. The Chinese brokerage sold 1.57 billion shares at 68 US cents each, a person familiar with the matter said. The sales price was in the middle of the company's indicative price range.
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