China Readings for March 13th

"Sinocism is the Presidential Daily Brief for China hands"- Evan Osnos, New Yorker Correspondent and National Book Award Winner

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  • 土豆投资人推动优酷土豆合并 张朝阳自认第二_互联网_科技时代_新浪网
  • Cyber Command Lawyer Praises Stuxnet, Disses Chinese Cyber Stance – The Stuxnet computer worm that damaged Iranian nuclear facilities – widely suspected to be an Israeli or even U.S. covert action – was a model of a responsibly conducted cyber-attack, said the top lawyer for the U.S. military's Cyber Command, Air Force Col. Gary Brown. By contrast, the Chinese stance, which holds that the international law of armed conflict does not apply in cyberspace, opens the door for indiscriminate online actions launched with less concern for collateral damage than was evident in Stuxnet, he warned, while a joint Russo-Chinese proposal for international collaboration on cyber-security could potentially threaten free speech. Brown emphasized that his remarks represented his own opinion and that he was not speaking for the U.S. government, but they still open a window into the thinking of an influential official on the cutting edge of policymaking on cyber war…
    Meanwhile, the rules that China and Russia have jointly proposed for cyberspace raise serious concerns for the United States, Brown said, echoing comments by other U.S. officials. The proposed "International Code of Conduct for Information Security," also sponsored by Tajikistan and Uzbekistan, was put before the United Nations last fall. "Mostly, when you read through it, you'll think it sounds pretty good," said Brown. "The thing that makes me uncomfortable with the proposal [is that] essentially they treat 'information' as a separate category, as an area of national sovereignty…. [For example,] if Google wanted to go to China and make ways for Chinese folks to get around the firewall, the 'Great Firewall,' so they could communicate freely with the rest of the world, they would consider this an aggressive action [under the proposed pact] because 'information' is part of national sovereignty."
  • 任志强:王岐山是我初中辅导员 | 金融家
  • 朱大可的微博 新浪微博-随时随地分享身边的新鲜事儿 – 朱大可
  • YOKU Gets Crazy After Unusually Heavy Buying Friday – Friday March 9th, we reported on the unusually heavy buying of call spreads in YOKU. As you can see from our post below, it was our best guess that it was a bet on Wednesday's (March 14) earnings. However, given the deal with Tudou Holdings that was announced today, I suspect the buyer was a considerably more informed investor! The deal with TUDO to create Chinese online video company in stock transaction that gives each TUDO shareholder 1.595 Yoku shares per ADS , an implied 160 percent premium to where shares closed Friday.

    I show YOKU trading $29.80 in the pre today versus a close of $25.01 Friday. As the March 28 – 33 bull call spread was traded 9,200 times for $.45, this looks like another HUGE winner for the YOKU bulls and our subscribers that followed us into YOKU Friday! 

  • Here’s Loeb’s Letter to Investors About the Value of Yahoo’s Alibaba – Kara Swisher – News – AllThingsD – Clearly, as evidenced above, we see tremendous upside in just the Alibaba piece of the Yahoo puzzle.
    While the media has covered the drama surrounding the negotiations with Mr. Ma in some detail, Wall Street has continued to neglect the underlying Alibaba valuation story and the press makes too little of it. Certainly there is some compelling reason why Mr. Ma is so interested in repurchasing Yahoo’s stake! We share his excitement and enthusiasm for the Alibaba opportunity, and we respect and appreciate the dominant and dynamic franchise he has built amongst the world’s largest base of Internet users.