Sunday, June 29, 2014

It's Not All Roses But Thorns Too As Alibaba IPO on NYSE Nears

As Alibaba prepares for its gigantic IPO on NYSE, more concerns over investor risks are popping up. Central to the issues is the corporate structure for Alibaba. Its use of a variable interest entity (VIE), which allows for foreign investment through an offshore holding company, has been under the recent spotlight of Capitol Hill — and Wall Street too. While VIEs have been the accepted way of investing in venture-backed China-based companies listed in the U.S., Chinese courts could strike down its legality in China, which in turn could leave investors with fewer rights. If that all sounds remote, remember what happened with AliPay. The financial business was spun out from Alibaba in 2011 and put under Jack Ma’s control to comply with Chinese regulations — a move that Yahoo YHOO +1.78%, which owns a 22.5% chunk of Alibaba, claims it was surprised by. Corporate governance issues are proving to be a thorn in other ways for the China-based e-commerce company. Keep reading post at Forbes: Alibaba IPO risks Link here: http://www.forbes.com/sites/rebeccafannin/2014/06/27/its-not-all-roses-but-thorns-too-for-alibaba-as-nyse-ipo-nears/

Monday, June 2, 2014

China Gets A Lot Of Credit In Meeker's Annual Tech Trends Analysis

China gets a big section on its own in Mary Meeker’s annual Internet report. That should be no big surprise considering the wave of innovation that’s been emerging for the past couple of years from China’s online and mobile markets. China’s mobile Internet has more critical mass than anywhere in the world, Meeker points out in the report that pegs the number of mobile internet users in China at nearly 500 million, 80 percent of total Internet users in the country. China Internet brands are also fast on the rise. A year ago, China counted only one Internet brand among the top 10 — Tencent — in a field dominated by U.S. brands such as Google, Microsoft and Facebook. This year, China has four among the top 10 – Alibaba, Tencent, Baidu and Sohu. China is proving to be a mobile commerce innovator too. Keep reading at Forbes, China Credit.