Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Thematic (Sector/Industry)

China is proposing an overhaul of its foreign-investment rules, which some news sources are saying is "the biggest revamp of China’s rules governing foreign investment since Deng Xiaoping introduced elements of capitalism into the economy in the late 1970s." The draft looks to unify regulations overseeing foreign investment in China, scale back restrictions and begin regulating the variable interest entities (VIE) that are commonly used to circumvent foreign-ownership limits. The ministry said the rules should “promote foreign investment and normalize foreign investment management.” This represents a major step toward the formal regulation of the use of VIE structures in foreign investments in China, as well as simplifying rules for foreign companies looking to invest in China. Thoughts and implications of the changes below

 China is proposing an overhaul of its foreign-investment rules, which some news sources are saying is "the biggest revamp of China’s rules governing foreign investment since Deng Xiaoping introduced elements of capitalism into the economy in the late 1970s." The draft looks to unify regulations overseeing foreign investment in China, scale back restrictions and begin regulating the variable interest entities (VIE) that are commonly used to circumvent foreign-ownership limits. The ministry said the rules should “promote foreign investment and normalize foreign investment management.” This represents a major step toward the formal regulation of the use of VIE structures in foreign investments in China, as well as simplifying rules for foreign companies looking to invest in China. Thoughts and implications of the changes below

CHINA REFORM & ADRs:  Big overhaul of foreign investment rules in China. Thoughts and implications

China

JOYY Inc. operates a global social media platform. The Company offers platform which enables users to interact with each other in real time through online live media by creating, sharing, and enjoying a vast range of entertainment content and activities. JOYY serves customers in China.

Beijing TRS Information Technology Company Limited develops and markets software and technology services for unstructured data management. The Company provides software products that are enterprise search, content management and text mining.

Focus Technology Co Ltd. provides business-to-business (B2B) e-commerce solutions. The Company provides the supply and the demand sides for the release, search and management services of the transaction information.

Hangzhou Shunwang Technology Co., Ltd. develops and sells Internet entertainment networking platforms.  The Company's products provide safety management, system maintenance service, and entertainment content update service.

Hangzhou Shunwang Technology A (300113 CH)

Shanghai Ganglian E-Commerce Holdings Company Limited provides market information and B2B e-commerce services for steel and steel-related industries. The Company provides market information, research services and also offers business promotion to customers.

Hubei Century Network Technology Co. Ltd. provides internet content and service aggregation platforms. The Company delivers music, games, and other related products.

INESA Intelligent Tech Inc. operates in the IT industry. The Company designs and manages cloud servers and big data applications for businesses. INESA Intelligent also manufactures electronic components.

Longmaster Information & Technology Company Limited provides community-based phonic value-added services. The Company's main product is a large-scale telephone phonic social and entertainment platform.

Longmaster Information&Technology (300288 CH)

21Vianet Group, Inc. provides carrier-neutral Internet data center services. The Company hosts its customers' servers and networking equipment, as well as provides interconnectivity and managed network services to enable customers to deliver data across the Internet. 21Vianet conducts business in Beijing, China.

Beijing Sinnet Technology Company Limited provides customers with broadband access services, IDC and its value-added services, and other internet integrated services. The Company's core business are broadband access services, IDC and its value-added services.

mixi, Inc. operates community style website, mixi.  The Company sells advertising spaces on its website.  mixi also runs online recruiting services for IT related positions.

DeNA Co., Ltd. operates social media site, auction and shopping web site such as Mobage-town and Bidders.  DeNA also provides mobile-related services such as mobile game and community site.

Gogo Inc. provides in-flight connectivity systems and services. The Company offers online aircraft systems, wireless digital entertainment and other services in the commercial and business aviation markets.

Shutterstock Inc. operates a global marketplace for commercial digital imagery. The Company's online marketplace provides a freely searchable library of commercial digital images that our users can pay to license, download and incorporate into their work.

SMS CO.,LTD. is a website operator regarding elderly care.  On its websites, the company provides a variety of information contents related to employment placements for senior care assistants and doctors, as well as medical and nursing qualifications.

Megaport Limited operates as a software-based elastic connectivity provider. The Company develops an elastic connectivity platform that provides customers interconnectivity and flexibility between other networks and cloud providers connected to the platform. Megaport serves customers worldwide.

Cars.com Inc. operates an online automotive platform. The Company offers new and used vehicle listings, expert and consumer reviews, research tools, and other information which helps shoppers to buy, sell, and service their vehicles. Cars.com serves customers in the United States.

SUNeVision Holdings Limited, through its subsidiaries, operates Internet services centers and Information Technology (IT) facilities.  The Company also designs and installs SMATV, structural cabling and security systems as well as provides system development, solutions, and management services.  In addition, Sunevision invests in properties.

QuinStreet Inc. specializes in vertical marketing and media on the Internet. The Company focuses on clients in the education and financial services industries, as well as has a presence in the home services, business-to-business, or B2B, and healthcare industries.

Just Dial Ltd. operates a local search engine that provides comprehensive updated information. The Company offers a search engine that includes a variety of categories such as movies, hotels and resorts, taxis and car rentals, insurance, bars, and nightclubs. Just Dial markets its search engine to users throughout India.

Weibo Corp is a social media platform for people to create, distribute and discover Chinese-language content.  The Company offers users public self-expression in real time with a powerful platform for social interaction, as well as content aggregation and distribution.

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Weibo Corp (WB US)

CHINA REFORM & ADRs: Big overhaul of foreign investment rules in China. Thoughts and implications

China is proposing an overhaul of its foreign-investment rules, which some news sources are saying is "the biggest revamp of China’s rules...

David Millhouse

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)