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October 27, 2006

ICBC and the World's Biggest Swinging Bank Award

The ICBC IPO and the "UTD" Syndrome. Click the little triangle to hear today's post. (If you are reading this in an RSS viewer and the podcast does not display, you may hear it at www.asiabizblog.com or on iTunes in the business podcast section.)

ICBC and the World's Biggest Swinging Bank Award

The IPO and the "UTD" Syndrome

ICBC, one of China's big four state banks, has now privatized. Or so it might be presumed, as the bank has issued stock; the extent to which the bank is no longer subject to state direction remains a significant question.

At a minimum, ICBC can now claim the World's Biggest Swinging Bank Award with an IPO of gargantuan proportions. (Investment bankers, gasping with dropped jaws, raise their heads in an expression of collective awe.)

The stock opened up 17-plus percent. But we think it more than likely that the UTD (Up, Then Down) Syndrome, a classic symptom of the chronic illness of Chinese stock markets, will shortly take effect and the stock will plum the depths of many an investor wallet. We'll keep an eye on the share price over time -- not because we have money in it (if we'd had, we would have been out of it by now.), but simply for the vicarious thrill of the roller-coaster ride.

October 23, 2006

Chinese Patent Owners in U.S. Courts

This FT article avers that Chinese have begun to "aggressively" protect their patent rights in the U.S. Unfortunately, the writer does not attempt to quantify the assertion, giving perspective through context, but relies entirely on a few quotes from American lawyers whose firms would very much like to drive that business.

The mere fact that Chinese make use of the American court system isn't news. One remembers stories of a similar ilk about Japan and Taiwan in the 70s and 80s. Of more importance is the extent to which the Chinese have become "aggressive" pursuers of patent rights -- if indeed they have -- and not in comparison to a past devoid of such legal behavior, but to similar high-growth economies in their hey-day, such as Japan and the little Tigers.

October 13, 2006

IBM Moves Division HQ to Shenzhen

The New York Times reports that IBM has moved its procurement division from Somers, NY to Shenzhen.

Just 20 years ago, IBM had only a handful of staff resident in China, not buying, but selling PCs made elsewhere in Asia and the U.S. Yes, even in the U.S.

Tempus fugits. One is only surprised how long it took IBM to place its most senior procurement manager and his staff nearest its suppliers.