Wednesday Tech Briefing: Alibaba Raises Stake in Top Chinese Investment Bank

1.Alibaba Raises Stake in Top Chinese Investment Bank CICC

Alibaba Group Holding Ltd. expanded its ownership of China International Capital Corp., once known as China’s Goldman Sachs, paying HK$1.8 billion ($230 million) for 117.1 million Hong Kong-listed shares.

The transaction increased the e-commerce giant’s stake to 11.7% of the prestigious investment bank’s Hong Kong-listed shares from about 5%. The expanded ownership almost matches archrival Tencent Holdings Ltd.’s 12%.

CICC is known for bringing some of China’s largest state-run enterprises to market. The financial house, however, has been reducing its dependence on volatile investment banking fees and expanding its business catering to rich individuals. (Bloomberg)

2.JD.com to Lay Off One of 10 High-Level Executives

E-commerce giant JD.com Inc. will lay off 10% of its high-level executives in 2019, potentially affecting 100 people, the company said on Tuesday.

The move is intended to foster “quality” business growth and improve “organizational vitality,” a representative told Caixin.

JD.com’s announcement comes amid reports of mass layoffs across the tech sector.

(Caixin)

3.NetEase Shopping Platform Hopes to Acquire Amazon China Program: Reports

https://www.caixinglobal.com/2019-02-20/netease-shopping-platform-hopes-to-acquire-amazon-china-program-reports-101381550.html

Chinese internet company NetEase’s international shopping platform Kaola is hoping to acquire Amazon China’s global shopping program —the service that allows China-based users to purchase items from Amazon sites abroad — according to financial news outlet Caijing.

NetEase first proposed the idea, and both sides kicked off negotiations in late 2018, according to the report — and they might go on for quite some time.

Sources close to the matter said Amazon’s position as a major multinational corporation brought “all difficulties one could ever imagine in business negotiations” to the table. (Caixin)

4.WeDoctor Is Said to Consider Listing a Spinoff on New Tech Board

WeDoctor, one of China’s biggest online health-care startups, is considering spinning off a major slice of its business and listing it on the country’s soon-to-be-created technology board.

Backed by Tencent Holdings Ltd., WeDoctor joins a growing number of tech companies hoping to uproot a health care industry that’s been largely impervious to online disruption.

The startup, whose business spans insurance policies to appointment-booking and physical clinics, is trying to unclog bottlenecks in China’s health care market, which is slated to grow to be worth 8 trillion yuan ($1.2 trillion) by 2020. It was last valued at $5.5 billion. (Bloomberg)

5.New Zealand Says China’s Huawei Hasn’t Been Ruled Out of 5G

https://www.bloomberg.com/news/articles/2019-02-18/new-zealand-says-china-s-huawei-hasn-t-been-ruled-out-of-5g-role

New Zealand’s government is holding the door open for China’s Huawei Technologies Co. Ltd. to help develop the nation’s 5G network, amid concerns the issue is fraying ties between the two nations.

In November, New Zealand’s spy agency, the Government Communications Security Bureau, stopped telecommunications company Spark from using Huawei 5G equipment, citing significant national security risks.

Prime Minister Jacinda Ardern said Tuesday her government is working through a process and the Chinese company could still be involved if Spark can satisfy the GCSB’s concerns. (Bloomberg)

Compiled by Hou Qijiang and Qian Tong

Contact editor Teng Jing Xuan (jingxuanteng@caixin.com)