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Cisco Rumor, was just about Cisco putting alot of money into China's developing economy.


Cisco buys $50 mln stake in China Comms Services
Reuters - December 14, 2006 3:42 AM ET

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SHANGHAI, Dec 14 (Reuters) - Cisco Systems Inc. (CSCO) said it had made a US$50 million strategic investment in China Communications Services Corporation Ltd. 0552.HK, in the network equipment maker's biggest direct investment in China.

Cisco and CCS have also agreed to jointly provide telecoms services -- such as network administration, digital video and high-speed third-generation services -- to enterprise customers in China, Cisco said in a statement dated Dec. 13.

State-run CCS, a sister firm to top mainland fixed-line operator China Telecom 0728.HK, saw its shares leap as much as 91.8 percent after its US$324 million IPO last week in Hong Kong.

Cisco also said it has committed more than $700 million in venture funding to help launch nearly 30 Chinese start-up firms, such as gaming company Shanda Interactive Entertainment Ltd. (SNDA).

"The further development of publicly traded companies in China will create lasting value because the company, its profits, its intellectual property and its constellation of suppliers and partners are all rooted in the local economy," said Ned Hooper, Cisco's vice president of corporate business development.

Shares in CCS, which have risen almost 100 percent since the company's listing last week, closed up 7.07 percent at HK$4.39 on Thursday after hitting a record high of HK$4.53 during the session.