China is on the cusp of its 4G rollout, but handset maker Huawei doesn’t want smartphone owners getting complacent. The company just announced it will invest $600 million into 5G research and development.
The money will be spread out over four years. The end goal is a 10Gbps broadband connection by 2018. That’s 10 times faster than 4G and a whopping 5,000 times faster than 3G, which most of the Chinese smartphone-owning population is currently connected to. To give you an idea of how fast that is, Huawei CEO Eric Xu says, “5G mobile networks with the peak data rates of over 10Gbps will allow people to download high-definition movies in one second.”
According to Yahoo Finance, over the past 10-odd years since the start of 2003, the Straits Times Index (SGX: ^STI) has gained 8.4% per year
Blue chips like Jardine Matheson Holdings (SGX: J36), Singapore Exchange (SGX: S68), and United Overseas Bank (SGX: U11) have had average annualised returns (including dividends) of 23.5%, 20% and 8.8% respectively in the same period.
Qunar, a travel search and service provider, went listed on the NYSE last week. Its shares soared 89% on the first day of trading. As Qunar became more than a search engine when it built a transaction system in 2012, it is believed it will eventually become direct competitors of existing online travel agencies such as Ctrip and eLong. With that concern, in early this year, a handful of online travel services, including Ctrip and eLong decided to stop working with Qunar. But later they resumed cooperation with Qunar. One the reasons is the traffic on the search service is too high to ignore.
Now Qunar’s market cap is a little less than half of that of Ctrip who is still the largest player in online travel in China. When asked about the potential competition with Qunar on the earnings call for Q3 2013, James Liang, chairman and CEO of Ctrip, said it’s more of competition on air ticket but more of partnership on hotel, for Qunar’s hotel inventory mostly depends on third-party suppliers.
But like what it has done on air ticket, Qunar also possibly can build partnership directly with hotels rather than travel agencies or other third parties. Mr. Liang thinks what can eventually differentiate Ctrip from Qunar is the quality of service — it sounds it doesn’t have any technological advantage.
Alibaba’s foray into the world of fund management—through a money-market fund-like investment product called Yu’E Bao, or leftover treasure—has so far been a huge success. The lingering question, however, is how exactly it works.
One of Yu’E Bao’s appeals is that it gives customers the convenience of a demand deposit—they can withdraw their funds whenever they like—with returns similar to wealth-management products or other longer-term deposit options like CDs, which typically lock the funds for three to six months.
Posted from Diigo.