SMEs slow to search
Sequoia Capital China vice-president Steven Ji told China Venture that the dominance of B2B e-commerce revenues over search engine revenues in China’s Internet showed China’s small and mid-size enterprises (SMEs) had not yet recognized what search engines can do for them. “They believe B2B portals can usher in significant growth in business revenues and client base,” he said. “Therefore, China’s corporate clients are more willing to pay for B2B services. However, in the long run, China’s Internet development will be in line with that of the US and mainland search engines will generate higher revenues than the B2B business.” According to Analysys International, China’s Internet B2B market was worth 451 million yuan (US$57.82 million) in the third quarter 2006, up 16.48% from the previous quarter.

China to issue mobile search industry standards
The Ministry of Information Industry (MII) is soon to announce new standards to govern the mobile SMS search industry, the Economic Information Daily reported.  Industry sources said that the five new mobile SMS search standards, which were drafted by the China Communications Standards Association (CCSA),  include overall technical requirements, operational requirements, system and coding requirements, and system interface and business process regulations. The standards are intended to provide guidance for operators to standardize necessary business and technical processes and platforms when launching services.

SoHo China plans Hong Kong listing
Mainland real estate developer SoHo China will launch road shows in May ahead of a Hong Kong listing in June, market sources told the National Business Daily. The company hopes to raise more than HK$4 billion (US$512.82 million) in the initial public offering, which will be sponsored by Goldman Sachs and HSBC. Beijing-headquartered Soho China, which was founded in 1995, has focused on buying sites in Beijing’s central business district, where it has built residential and office properties under the Soho brand for the city's newly rich. Industry analysts believe the listing will help the developer finance its Beijing commercial projects and strengthen its brand, which is especially important under tightened macro controls.

Chongqing Dima re-launches share sale
Special vehicles and electronic communications products maker Chongqing Dima Industry announced it will re-launch a new share issuance with up to 50 million shares, the Shanghai Securities Journal reported. Capital raised will be used to increase Dima’s investment in Chongqing Dongyuan Property Development, in which it already holds a controlling stake. The company plans to invest 1.523 billion yuan (US$195.26 million) in a central avenue project in the city. Dima’s core business revenues, total profit and net profit climbed 13.75%, 36.74% and 46.15% year-on-year in 2006.

Shanghai Forte Land to list on mainland
Shanghai Forte Land has hired a listing underwriter with a view to making an A-share listing this year, president Wei Fan told the Shanghai Securities Journal. Fan said the A-share offering would reduce the investment return for H-share shareholders in the short-term, but would be beneficial for the company’s long-term development. He said Forte had between 1.5 million and 2 million square meters of land on-hand this year, and the A-share offering would provide the capital needed to develop them. The Hong Kong-listed company reported a 14.1% year-on-year dip in net profit to 481 million yuan in 2006. Fan said a stabilizing property market in Shanghai caused the company’s net profit margin to fall to 39%.

Hubei Yihua acquires controlling stakes in Zhejiang Shuanghuan
Hubei Yihua Group received Hubei Administration of State-owned Assets (HASA) approval to take control of state-owned stakes in Hubei Shuanghuan Chemical, China Business News reported, citing an internal source at Hubei Yihua. Hubei Yihua will hold a 69.2% stake in the company following the share transfer, but the deal still needs the approval of Shuanghuan’s other shareholders. The source added that Yihua would make significant changes to Shuanghuan’s marketing, resources and management departments, but did not disclose a detailed restructuring plan. The  companies are both leading mainland chemical product makers; Shuanghuan’s enormous salt chemical resources are expected to help strengthen Yiua’s supply chain.