China Business Briefs 11/11/13

Xiaoying, a mobile video app, received 5 million yuan ($815,037) of angel investment from Innovation Works, disclosed Han Sheng, founder of the company.

Different from other domestic video apps, Xiaoying gives priority to video editing features by simulating film production procedures in a bid to provide high-quality video beautifying service. It aims to become Meituxiuxiu, a photo editing app known for its beautifying effects for self-portraits, for mobile video industry, stated Han.

Xiaomi held its latest flash sale today as part of Singles Day, one of China’s major shopping spree days, and to no one’s surprise, the company cleaned up.

At 12:30 AM on November 11, Xiaomi put a total of 380,000 devices up for sale on its flagship Tmall page: 110,000 Mi3 smartphones, 110,000 Hongmi smartphones, 110,000 2s smartphones, and 50,000 set top boxes.

Within the next three minutes, all 110,000 3s and Hongmi devices were snatched up. In that time, the company brought in over RMB 107 million ($17.5 million) in sales revenue.

Where is the home of the cleverest businesspeople in China? This is a raging debate. Southerners say Chaozhou in Fujian province. Coastal Wenzhou folk certainly have a claim given their entrepreneurial rigor. Shanxi province in the north holds out for a shot at the title.

While they argue among themselves, a simple answer is readily available: Regional government officials, north or south. These cadres in provinces and cities across the country have built monumental projects and accumulated extensive asset portfolios, all paid for by creative off balance sheet borrowing that dodged strict central government laws preventing them from getting loans from banks.

Last year on Nov. 11, Chinese online shoppers spent more in 24 hours than what Americans spent online on Black Friday and Cyber Monday combined.

This year, only about half a day in, China’s largest e-commerce company Alibaba Group Holding Ltd. said that sales on its shopping sites had already topped $3.1 billion, last year’s record for the entire day on Nov. 11.

Inflation rose in October to its highest level since February amid an increase in industrial output, but remained well below the government’s annual target, official data released over the weekend showed.The data for October added to evidence that the economy has further stabilized and reinforced the leadership’s determination to restructure the economy as the Communist Party of China (CPC) kicked off a key meeting over the weekend to draw up a blueprint for reform in the next decade, analysts said.

The consumer price index (CPI), a major gauge of inflation, rose by 3.2 percent in October from a year ago, slightly up from 3.1 percent in September, the National Bureau of Statistics (NBS) said Saturday.

Private capital will have easier access to invest in State firms

Major steps to reform State-owned enterprises will be taken after the four-day Third Plenum of the Communist Party of China’s 18th Central Committee, which started on Saturday, said Huang Shuhe, vice-chairman of the State-owned Assets Supervision and Administration Commission.

To pave the way for changes, commission officials said private companies and investors are welcome to acquire larger shares in SOEs so they can have a bigger say in decision-making.

Posted from Diigo.

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