Date
17 December 2017
Legend chairman Liu Chuanzhi. Photo: Bloomberg
Legend chairman Liu Chuanzhi. Photo: Bloomberg

The Big Picture: LEGEND DEVELOPMENT

Mobile internet, or access to the internet through wireless devices, is creating vast opportunities for technology firms such Legend Holdings Ltd., parent of Lenovo Group Ltd. (00992.HK).

This is especially true in China, the world’s largest market for mobile devices including smartphones.

“We have two choices for our future development. One is vertical integration in the hardware sector, the other is additional software services,” Legend chairman Liu Chuanzhi told a conference at the Hong Kong University of Science and Technology on Thursday. “We have to choose one or the other.”

Citing Samsung as an example, he said the South Korean company has invested a lot in hardware development over the past decade.

Lenovo’s recent acquisition of Motorola’s handset business gave the company a shortcut to key telecommunications patents. The company will take a cautious approach to future acquisitions, he said.

Liu said Legend is exploring business opportunities in the agricultural sector to tap emerging market opportunities.

In January, Lenovo acquired Motorola Mobility for US$2.9 billion. It also signed another agreement to buy International Business Machines Corp.’s (IBM) low-end server business for about US$2.5 billion as the world’s biggest personal computer maker is seeking new revenue streams to counter shrinking PC sales.

CSRC gives firms choice on listing location

The China Securities Regulatory Commission will let companies that have secured regulatory approval for their listing plans to decide for themselves whether to float their shares in Shanghai or Shenzhen, the China Securities Journal reported Thursday, citing the commission’s microblog. The listing venue was previously determined by the number of shares to be issued in the initial public offering, the report said.

CBRC targets credit risks in bloated industries

China’s banking watchdog has asked local branches and banks to thoroughly review potential bad loans and credit risks in industries with serious overcapacity, including steel, cement, electrolytic aluminum, flat-panel glass and shipbuilding, the Shanghai Securities News reported Friday, citing internal China Banking Regulatory Commission guidelines. No loans should be issued to new projects in such industries if they have outdated capacity, fail to meet environmental standards or do not have official approval. To encourage these firms to integrate or transfer capacity, loans issued for mergers can be extended for up to seven years, the report said. Syndicated loans are preferred, it said.

– Contact HKEJ at [email protected]

AM/CG

 

 

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