ChinaStakes

Are There Advantages to Governor Zhou Xiaochuan's Dollar-Peg Exit?

admin — Wed, 10 Mar 2010 14:22:07 GMT

Zhou Xiaochuan, the governor of the People's Bank of China, has updated his March, 2009 White Paper on Monetary Reform by advocating publically at the National People's Congress an abandonment of the peg to the US dollar. ...

US Mortgage Investors Push For Banks to Write Down Second Liens

admin — Wed, 10 Mar 2010 05:18:16 GMT

A group of investors in mortgage-backed bonds dubbed the Mortgage Investors Coalition (MIC) recently submitted to Congress a plan to overhaul the refinancing of underwater borrowers by writing down the principal balances of both first and second mortgages. The confederation of insurers, asset managers and hedge funds hope to break a logjam between Washington DC and the four megabanks with the most exposure to writedowns on second lien mortgages, including home equity lines of credit.

The private sector initiative coincides with House Financial Services Committee Chairman Barney Frank's open letter dated 4 March to the CEOs of the banks in question – Bank of America, Citigroup, JP Morgan Chase and Wells Fargo – urging them to start forgiving principal on the second lien loans they hold. ...

CIC Defies Wall Street Shorting Hints, Eyes Overseas China-Linked Assets

admin — Tue, 09 Mar 2010 10:52:16 GMT

In 2009, as the global financial market began to stabilize, China Investment Corporation (CIC), China's sovereign wealth fund, sped up the pace of its overseas investment and realized a paper gain of more than $10 billion.

While some Wall Street investors are advancing shorting hints concerning a possible China bubble, CIC is considering increasing investment in assets influenced by China factors, Australian mining companies, for example

Short-seller James Chanos of New York-based Kynikos Associates said recently that when China's property bubble eventually bursts it could be bad news for companies in Brazil, Australia and Canada, saying that companies based in those countries are some of the biggest suppliers to China of raw materials.

Asked if he meant companies like Rio Tinto or BHP Billiton, Chanos said, "You're heading down the right track. ...

Lies, Damned Lies, and Chinese Statistics

admin — Sun, 07 Mar 2010 14:00:46 GMT

The sententious statement, "There are three kinds of lies: lies, damned lies, and statistics," which Mark Twain attributed to former British Prime Minister Benjamin Disraeli, would seem to be suitable to describe the gap between China's current crop of statistical data and its real economy. The difference can't be put down to simple statistical error or local phenomenon. It is a systemic problem. ...

Distorted Housing Price Statistics Stir Anger over Policy

admin — Fri, 05 Mar 2010 02:39:30 GMT

China's economic and business statistics have been notoriously inconsistent, unreliable,and often and apparently manipulated. Now it seems that the statistics concerning housing prices are no exception. ...

Chanos Drops Hints Shorting China Bubble-Related Companies

admin — Thu, 04 Mar 2010 03:37:50 GMT

For weeks now, short-seller James Chanos has been telling anyone who will listen that China is sitting on a huge property bubble that's going to eventually burst. ...

Yuan Appreciation Is Necessary, and Best in April

admin — Wed, 03 Mar 2010 02:42:39 GMT

The topic of RMB exchange rate appreciation is subject to serious distortion. Chinese government officials, economists, investors and even ordinary consumers have readily declared that that the yuan is undervalued. The very mention of RMB appreciation, however, seems to link one with pressures from the US, Japan, or Europe, and the starting of any discussion of the pros and cons of RMB appreciation tends to lead not from the point of view of China's own interests, but whether it suits the needs of other countries, particularly the US.

While it is only fair that China's trading partners are able to voice an opinion about matters that affect them greatly, RMB appreciation must first be considered from the perspective of China's own interests and from its own economic policy needs. ...

JohnsonDiversey, Inc. Announces Name Change to Diversey, Inc. and Adopts New Brand Identity

admin — Tue, 02 Mar 2010 06:06:18 GMT

JohnsonDiversey, Inc. and JohnsonDiversey Holdings, Inc. today announced that the Board of Directors of both entities has approved a change of their corporate names. JohnsonDiversey, Inc. is changing its name to Diversey, Inc. and JohnsonDiversey Holdings, Inc. is changing its name to Diversey Holdings, Inc., both effective immediately. The corporation's operating companies are also changing their legal names to reference Diversey. Concurrent with the name change, Diversey, Inc. is adopting a new corporate identity, branding and tagline, "for a cleaner, healthier future."

"Today represents an important milestone in the history of our company," said S. Curtis Johnson, Diversey's Chairman. "Our new identity and tagline captures our people's passion for helping to make our world cleaner, healthier and safer for future generations. ...

The Vanishing Chinese Migrant Worker

admin — Mon, 01 Mar 2010 14:25:52 GMT

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China's New Energy Car Leadership: State Energy Giants to Build Electric Charging Infrastructure

admin — Fri, 26 Feb 2010 06:57:35 GMT

China

Entering the Year of Tiger, enterprises in the world's largest coal producer, China, are more and more seeking overseas coal. The unexpectedly massive onslaught of snow and ice in the country's northern reaches has caused coal shortages in the southeast and is strengthening the determination of Chinese firms to go after overseas resources. ...

Top Business Students to Compete for Innovative Solution to Educate 2 Billion Poor Kids

admin — Thu, 25 Feb 2010 07:00:34 GMT

Imagine a world where even the poorest of children have access to a computer-the poverty gap that could be reduced, the problems that could be solved and the wealth of knowledge that could be shared!

In March, 2010 One Laptop per Child (OLPC) in partnership with Hult International Business School, TalentCastr. ...

China's New Year of the Tiger Looks to Be One of Trade Conflict with the US

admin — Wed, 10 Feb 2010 06:32:26 GMT

2009 turned out to be a bumper year for exports from China, compared to it's competitors. Despite a decline in exports of more than 16%, China may have surpassed Germany to become the world's number one exporter, and is expected to have taken a 9+% share of the world's total international trade. Anticipations of a smooth road ahead, however, may well prove overly optimistic. ...

"Very Strong Optimism" of Swiss Companies in China

admin — Fri, 05 Feb 2010 02:45:49 GMT

The recent confidence survey of the Swiss Chinese Chamber of Commerce and cooperating associations among 136 CEOs and decision makers from Western European companies in China yielded very positive results for Swiss enterprises. ...

A-Share Market Feels Pain on Expansionary Policy Exit

admin — Thu, 04 Feb 2010 09:17:58 GMT

Entering February, China's A-share market has continued to drop. The expected "good start" to the year was cut short as the central bank announced the raising of the deposit reserve rate on January 12. In January, the Shanghai Composite Index fell 8.78%, ending a four consecutive month rising trend at the end of 2009. ...

China and US Soft Power Play: Internet, Games, and Media

admin — Tue, 26 Jan 2010 23:59:25 GMT

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Does New Oriental Education and Technology Use Its

admin — Sun, 24 Jan 2010 12:46:52 GMT

Prior to the financial crisis in the U.S., critics argued that many home owners used their home equity value like an ATM machine and this led the country into over indebtedness. A similar problem may be building in China through exclusively-foreign IPOs (Initial Public Offerings) such as in New York. A case study can be seen in the shares of New Oriental Education and Technology (EDU), a Beijing educational company, whose shares are only listed in New York. ...

In China, Fast Economic Growth Does Not Equal Household Wealth

admin — Fri, 22 Jan 2010 02:38:16 GMT

Over the past 30 years of reform and opening up, China's annual economic growth is averaging 10%. Hard-working Chinese people have made tremendous contribution to the global economy. Their rewards, however, are not matched with their contributions. ...

China and HK M&A: Strong 2009, Stronger 2010

admin — Fri, 15 Jan 2010 01:33:05 GMT

With Corporate China's hunger for oil/gas and resources, cash-rich balance sheet, as well as its domestic consolidation and outbound investment, the M&A was up 6.5% in China and Hong Kong in 2009 despite the downturn in global M&A activities. And 2010 will keep the aggressive momentum given Chinese government's determination to restructure its industries and economy.

According to mergermarket, an independent Mergers and Acquisitions (M&A) intelligence service, Chinese financial advisory firms are also growing fast along with the explosion of outbound investment.

Chinese and Hong Kong M&A up 6.5% by volume

Despite the downturn in global M&A activity in 2009, China and Hong Kong closed the year with the third most active M&A quarter on record. ...

Should Baidu Giggle at Google's Possible Withdrawal?

admin — Thu, 14 Jan 2010 14:07:39 GMT

Google announced on its official blog yesterday that if it can not achieve agreements with the Chinese government concerning intellectual property rights within the legal framework in the next few weeks, it will close its operations in China, as well as its Google.cn site. ...

China's Lending Resurgent, but Riskier

admin — Wed, 13 Jan 2010 05:39:10 GMT

Bank lending in China has once again started to accelerate, reaching an average daily amount of more than 100 billion yuan in the first working week in January, 2010. Due to present demands for investment, regulatory authorities have held a relatively tolerant attitude to the current rapid credit growth, but anxiety over inflation expectations and asset bubbles is increasing along with doubts over the sustainability of credit growth. ...

Eyeing Gold Mine in Uzbekistan, Chinese Consortium Invest in AIM Quoted Oxus

admin — Tue, 12 Jan 2010 14:30:09 GMT

International law firm Pinsent Masons has advised a consortium of Chinese investors (Concert Party), led by Baiyin Non-Ferrous Group Co. Ltd and CITIC Construction Co Ltd on their conditional equity investment in AIM quoted Oxus Gold plc (Oxus) for a total aggregate amount of approximately US$185 million (Financing). ...

Investors Increasingly Interest in China's Private Education Sector

admin — Fri, 08 Jan 2010 07:28:56 GMT

Private equity and venture capital have been showing increasing interest in China's private education market over the last couple of years and seeing huge potential. ...

Chinese Tycoon Emerges to Grab Chilean Iron Ore Mine

admin — Fri, 08 Jan 2010 05:37:59 GMT

Li Zihao, a low-profile entrepreneur and president of Rixin Development Company, of Shunde, Guangdong, announced over Christmas that all legal formalities for acquiring a 70+% stake in a Chilean iron ore project by his company were completed in October. Li's company gained control of mineral rights of three mines with reserves of 3-5 billion tons for a reported 13 billion yuan. ...

China's Steel Industry Is a Big Problem for Both Climate and Trade

admin — Mon, 04 Jan 2010 03:03:06 GMT

The United States is set to slap penalty duties on imported Chinese steel pipes, heightening trade tensions between the two powers.

This is the largest countervailing duty case filed against China, based on the value of trade. The US International Trade Commission (ITC) said it had made a "final" decision that the "subsidized" pipes adversely impacted the domestic steel industry, paving the way for the Commerce Department to impose countervailing duties of up to nearly 16 percent on the pipe. The ITC will forward in writing a formal determination to the Commerce Department in the first week after the New Year's holiday.

The ITC ruling comes amid rising trade tensions between the United States and China. In September, the United States announced it would place duties on Chinese-made tires to protect the local US industry, sparking the first major trade dispute under Barack Obama's presidency. ...

After Statistical Adjustment, China's Growth "Appears" More "Sustainable"

admin — Tue, 29 Dec 2009 12:29:25 GMT

After another GDP statistical adjustment by the National Bureau of Statistics (NBS), theories for Chinese economy based on past data, whether "unsustainable" or "collapse," may become irrelevant. ...

SAFE Hires Top Fund Manager to Diversify Reserve Investment

admin — Mon, 28 Dec 2009 06:01:56 GMT

China's State Administration of Foreign Exchange (SAFE),sitting on a stash of more than $2.3 trillion, is working to recruit top talent from Wall Street to help it diversify its global investment. ...

An Appeal from Wikipedia Founder, Jimmy Wales

admin — Thu, 24 Dec 2009 00:39:56 GMT

Today, I am asking you to make a donation to support Wikipedia.

I started Wikipedia in 2001, and over the past eight years, I've been amazed and humbled to see hundreds of thousands of volunteers join with me to build the largest encyclopedia in human history. ...

Chinese Speculators Play on: Is Gold the Next Bubble?

admin — Wed, 23 Dec 2009 10:57:16 GMT

There is a feverish quality to Chinese speculative investing, a tendency for the herd to rush into the next asset or instrument as though this for certain going to be the Bonanza Strike, the one that puts us over the top. ...

China's 30-year CPI Growth Systemically, Greatly Under-counted

admin — Tue, 22 Dec 2009 14:13:22 GMT

In China's current statistical data system, CPI (consumer price index) is the most questioned. Recently, a spokesman from the National Bureau of Statistics said: "The change of CPI from negative to positive in November mainly resulted from increasing food and housing prices, and there is no inflation at present. ...

Hollywood's Biggest Talent Agent to Sue Irish iPhone App Developer

admin — Sat, 19 Dec 2009 13:16:11 GMT

Ari Emanuel, of WME fame, announced he intends to sue FactorySix in relation to their first iPhone game, SuperAgent, yet to be ten days old. ...

Shanda Literature to Sue Baidu over Piracy

admin — Sat, 19 Dec 2009 12:52:04 GMT

Shanda Literature is making claims against popular Chinese search engine Baidu, saying that it is allowing the theft of its copyrighted content, and is to launch an infringement suit against it supported by Chinese writers and organizations for creative industries. The case is the first one over rights protection in the domestic creative industry. ...

Following Abu Dhabi's Suit Against Citi, Will CIC Also Sue?

admin — Sat, 19 Dec 2009 12:47:41 GMT

The arbitration application by Abu Dhabi Investment Authority over a disastrous investment in Citigroup has many wondering whether China Investment Corporation (CIC) will initiate a similar action.

In November 2007, Abu Dhabi Investment Authority invested $7. ...

At Copenhagen, China Can Be a Give-Some, Get-Some Leader or a Zero-Sum Loser

admin — Mon, 14 Dec 2009 08:16:17 GMT

Premier Wen Jiabao is heading to Copenhagen. ...

Why is Dubai a Speculative Heaven for Chinese

admin — Fri, 11 Dec 2009 05:02:24 GMT

Dubai, arguably the world's most liberal city, financially, is slowly and fitfully crawling out from its crisis, but is regaining its attractiveness to arguably the most speculative business people on earth, Wenzhou folks. ...

China's 2010 Monetary Policy Subject to Hot Money

admin — Tue, 08 Dec 2009 14:19:58 GMT

The three-day 2010 Central Economic Work Conference finished on Monday. The present loose fiscal and monetary policies will continue. The meeting referred to monetary policy maintaining continuity and stability, enhancing pertinence and flexibility, and closely tracking changes in the economic situation at home and abroad. Clear requirements were also put forth for the pace of credit growth. ...

BlackBerry has China's Three Telecoms Giants Drooling

admin — Tue, 08 Dec 2009 14:09:43 GMT

Canada's RIM (Research in Motion) and Digital China have signed an agreement that allows the latter to distribute BlackBerry smartphones in China, officially launching BlackBerry in the domestic individual consumer market and finally fixing a situation for the last three years where only a handful of enterprise customers and smuggled phones could enter the market. China's three major telecoms operators are looking to cooperate with BlackBerry. ...

Ignoring the Dubai Crisis and Bubble Concerns, Chinese SOEs Continue Playing "Land King"

admin — Mon, 07 Dec 2009 11:13:16 GMT

Although the debt crisis triggered by Dubai's real estate development has prompted domestic concerns over asset bubbles and the quality of credit, China "Land King" state-owned enterprises (SOEs) continue to run rampant in the real estate markets. ...

Love/Hate Disneyland in Shanghai and China

admin — Fri, 04 Dec 2009 05:51:03 GMT

Disneyland is fixing to erect a new theme park near the Shanghai Yangtze River estuary, which looks to be a feast for the government and developers. ...

Porn Crackdown Sees China Mobile Suspend WAP Services: 10 Million Yuan Loss a Day

admin — Wed, 02 Dec 2009 01:10:56 GMT

The recent crack down on mobile Internet pornographic content has forced China Mobile, China's largest mobile operator, to suspend all of its WAP billing, resulting in losses of 10 million yuan per day. ...