Apple to open 2nd China BankR&D centerof Shanghaiin Shenzhen IPO set to be big
Firm to boost ties with local partners in manufacturing
Apple Inc will set up its second The China initial public research offering and of developmentBank of Shanghai center Coin ShenzhenLtd is expected next to year, becometo strengthenthe largest one ties this with year local in China’s manufacturingA-share market, partners, raisingas the US 10.7 tech billion giant yuan struggles ($1.6 billion).with mounting competitionThe city commercialand decliningbank will smartphoneissue no more sales. than 600.5 millionThe plan shares came and shortlysell shares after at it established17.8 yuan each, aR&Dcenterit said in its in prospectusBeijing, highlightingto the Shanghai the Stock importance Exchange.of the China market, The the bank’s world’s price-to-earningslargest smartphone ratio will arenabe 8.3 where after Applethe sale, is accordinglosing groundto theto local filing. brandsThat comparessuch asHuaweiwith an and average Oppo. of about Apple eight CEOfor lendersTim listed Cook on unveiledthe mainland.the plan for the new center on Tuesday during his visit toShenzhen, thesouthern Chinese manufacturing powerhouse and innovation hub.
The Shenzhen center will help “our engineering team work even more closely and collaboratively with our manufacturing The online partner”,and offlineApple subscriptionsaid in an emailed will statementstart on Novto China2. The Daily. funds financed will “Shenzhenbe used foris an replenishingincredibly capital.vibrant city where we are proud“I believeto the supportIPO of Bankover of 200,000 Shanghai jobs will be between popular among advanced investors manufacturing because and of China’sthe growing adequate (mobile) liquidity app and the economy,” lender’s the regionalfirm added. advantage The and California-headquarteredgood business performance,” firm said did Dongnot disclose Dengxin,the a scale financeof its professor investmentat Wuhanin the University newventure. of Science and Technology.Apple had set up its first China Dong researchsaid whileand development China’s liquidity centeris ample, inWangjingthe marketarea is of short Beijing,of good with assets.total investment Bank of Shanghaito reach can 300 be milliona good choiceyuan ($44.6as it is million).located in China’s financialJin Di, hub researchand its manager businessat International Data Corp China, said unlike the Beijing center performance which is focusesalso good.on partnership According with to universities,Bank of Shanghai,the Shenzhenits revenue unit from will Januaryhelp Appleto September optimize this its year supplyis estimated chain management.to be between 26.2 billion “Shenzhenyuan to 26.6 is billion home yuan,to Apple’sand its major year-on-year manufacturing growth andwill be distributionbetween 7.3 percent partners. to The8.9 percent.new center can help it better The localize non-interest products, incomeespecially of Bank whenof Shanghaithe industryin 2015is often totaled suffering6.5 billionfrom shortage yuan, of increasing components.”40.1 percent year on Accordingyear, accordingto Jin, to the the two filing. R&D The centers bank are is likely concentratingto play an activeon developingrole in investmentdesigning Apple’s banking, future wealth iPhones management,and other private hardware.banking and innovative businesses,During hisit said. recent trips to China, Hong Cook Hao, has chief held strategistextensive meetingsat BOCOM with Internationalapp developers, highlighting the firm's recognition of research capabilities.
China, once Apple’s fastestgrowing market, has recently become a source of disappointment. In the second quarter, Apple saw a 33 percent Holdingsdrop in Co, sales said inChina, althoughits greatest different decline banks in haveall regions. different To corporatelure consumers strategies, awayit is from always rivals, important Apple to has controlfiled applicationsrisks while developingto patent its innovativedualSIM businesses.card technologies in China, Hong which said enable he one also phone looksto support favorably two on the carriersIPO of at Bankthe sametime,of Shanghaia feature because quitethe previouspopular amongcity and consumers.rural commercial banks Nicole issued Peng, shares research smoothly directorthis year andat Shanghai-basedthe market is full consultancyof liquidity. Canalys, said: “As Bank China of makes Jiangsu big Co strides Ltd, in Bank the of internet Guiyang andCo Ltd, information Jiangsu Jiangyin technology, Rural the Commercialcountry has Bank becomeCo Ltd, a Wuxi trendsetterRural Commercialin many aspects Bank Co and Ltd, the Jiangsuanalysis Changshuof Chinese Rural consumers’ Commercial preferencesBank Co Ltd and have usage already habits been can listed now this year. reflect a broader trend among Asian buyers.” China’s
Apple‘s drop in sales in China in the second quarter
An outlet of Apple Corp in Shenzhen, Guangdong province. A customer walks out of a Bank of Shanghai branch in Nanjing, Jiangsu province.