It’s been predicted by eBay Inc (NASDAQ:EBAY) CEO John Donahoe at a technology conference in San Francisco, on late Monday, that the company’s PayPal unit will become the first foreign player to receive a payments license in China.
Shares of eBay Inc (NASDAQ:EBAY) were up nearly 1.5% in late trading in the stock market yesterday.
Donahoe while addressing at the Reuters Global Technology Summit said that he is confident that PayPal will be the first non-domestic company to get a payments license in China, and this could be in three months or five years.
Donahoe also remained cautioned over, it was hard to predict, when would PayPal actually gets such official Chinese government approval. He told, there are other things still not clear, that whether PayPal will have to enter in China through a joint venture with a local Chinese company, in which it owns a minority stake, or whether it can own a majority stake.
It was also revealed by Donahoe that currently eBay has a limited presence in China, with about $6 billion worth of business annually in China. It was also said by CEO of eBay that company is also aware of the challenges of competing against local companies like Baidu.com, Inc. (ADR) (NASDAQ:BIDU) in China’s e-commerce market.
Baidu.com, Inc. (ADR) (NASDAQ:BIDU ) stock fell -0.48% in last trading session and is closed $ 96.76 with average volume $ 4.23 million shares, in After Hours trading BIDU stock fell -0.18%. Baidu.com Inc generated income of $ 1.73 billion in last twelve months and sales of $ 3.92 billion.Analytic Ratios; Price to sales ratio of BIDU in past twelve months was calculated as 8.60 and price to cash ratio as 6.11. BIDU return on equity ratio is recorded as 43.50% and its return on assets is 27.40%.