Apple to open 2nd China BankR&D cen­terof Shang­haiin Shen­zhen IPO set to be big

Firm to boost ties with lo­cal part­ners in man­u­fac­tur­ing

China Daily (USA) - - BUSINESS - By MASI in Shen­zhen By masi@chi­ XIAO caix­iao@chi­


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 cap­i­­brant 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 as­­tal 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 man­age­ 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 per­ 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 hard­­ing 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 con­­ral 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.

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