Back in May, word got out that Microsoft was shutting down MSN China, effective June 7th, and redirecting its url to a directory page of Chinese websites, along with a Bing Search bar.
Now, however, Microsoft has announced through its Microsoft China blog that the portal has been sold to XiChuang Technology Co. Ltd., a Chinese company formed last year by Liu Zhenyu, the former manager of MSN China.
Microsoft still has plans to continue working in China, according to the Microsoft China blog post (via ZDNet):
Microsoft will continue to focus on creating a more personalized calculations, building smart cloud platforms, as well as through its own efforts to attract more users and partners.
China is one of the most strategic markets for Microsoft, the future will remain a long-term investment in the Chinese market. Microsoft China has the largest research and Development Center outside the US, and is committed to supporting, including creating a more personalized calculations, building smart cloud platforms, and reshaping the core strategy, business processes and productivity.
(translated, with modifications, via Bing Translator)
About a year ago, Microsoft and Baidu partnered together to bring the Chinese search engine to Windows 10, in essence replacing Bing and Cortana with Baidu and its services. Like many western based companies, Microsoft has struggled to break in to the Chinese market, and these partnerships and a new focus on core offerings may help Microsoft in China.
Further reading: Baidu, China, Microsoft, MSN