Chinese Tech Stock Weekly Summary

The following is excerpted from IRG's weekly stock report:

Mobile/Wireless

• Following China Mobile's (CHL) auction for GSM network upgrades, the results were released showing Huawei and ZTE together taking out about 25 percent of the projects, Shanghai Bell-Alcatel with about 20 percent, and Ericsson (ERIC) and Nokia (NOK) around 50 percent. Industry sources indicate however that the bidding will not be formally completed and the contracts not signed until May. China Mobile said it plans to make a total of RMB35 billion in purchases for its GSM upgrades.

Media, Entertainment and Gaming

• Greater China Media & Entertainment Corporation, an integrated professional media and entertainment company headquartered in Beijing, announced that its Chinese subsidiary has qualified as an approved public relations vendor for Microsoft (MSFT) China. Under the agreement, the company looks to receiving about 10 million yuan (US$1.3 million) in 2007 to arrange conferences, new product press releases and events for Microsoft China. Currently, Microsoft China has contracted GCME's subsidiary to organize and host three events for its Microsoft Research Asia subsidiary in May and June. The total values of these contracts are approximately 4 million to 4.5 million yuan (US$519,000-US$584,000). Greater China Media & Entertainment Corp. is an integrated professional media and entertainment company, which cover various areas including film and TV program production, management, promotion and distribution. The Company will have its own film and television production center, promotion agency, audio-visual distribution company, digital network company, talent agency, and sales and advertising agency as a result of recent joint ventures. Combined, the team is capable of making films, TV programs and related projects on a large scale.

Software

• CDC Software, a wholly owned subsidiary of CDC Corporation (CHINA) and a provider of industry specific enterprise software applications and business services, announced the acquisition of a majority interest in Vectra Corporation, a leading provider of information security consulting services, managed services and enterprise security solutions. Vectra is a leading provider of end-to-end technology solutions throughout the Asia-Pacific area. With operations headquartered in Adelaide and offices in Sydney and Singapore, Vectra has a team of more than 60 people that deliver information security services, managed services, outsourcing services and enterprise solutions to customers in Banking, Financial Services, Automotive and State and Federal Government Departments. CDC Software is a provider of enterprise software applications designed to help organizations deliver a superior customer experience while increasing efficiencies and profitability. The CDC family of companies includes CDC Software focused on enterprise software applications and services, CDC Mobile focuses on mobile applications, CDC Games on online games, and China.com on portals for the greater China markets.

Information Technology

• According to the China Financial Certification Association, it has established with 16 commercial banks an online banking anti-fraud mechanism with the aim of giving a better online banking environment for consumers. The 16 banks are Industrial and Commercial Bank of China, Agricultural Bank of China, China Construction Bank, Bank of Communications, CITIC Bank, China Everbright Bank, Huaxia Bank, China Minsheng Bank, China Merchants Bank, Guangdong Development Bank, Shenzhen Development Bank, Shanghai Pudong Development Bank, Industrial Bank, Beijing City Commercial Bank, Nanjing Bank, and Tianjin Bank. The agreement will see the group setting up an online banking blacklist to be shared among them and constructing a joint investigation mechanism.