From the monthly archives:
You may not hear much from me in the next few days. I am in route across the Pacific Ocean and have a full calender of
appointments and factory tours.
But I promise that I will have a mouthful to say to my ASA subscribers in the very near future.
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China Construction Corporation, one of the largest homebuilders
in China, has applied for an IPO on the Shanghai stock
market.
According to the China Securities Times, the IPO is
expected to raise over $6 billion, making it China’s
largest IPO this year, and the fifth biggest ever.
As Americans, we aren’t allowed to buy stocks on the Shanghai Stock Exchange, but [...]
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The Chinese are very smart. They know they need to secure natural resources and commodities to fuel their future growth
and are taking steps to insure they get what they need.
Fonterra, a New Zealand dairy giant, signed a deal to supply milk powder deal to
China for $235 million.
Chinese has imported 456,000 tons of agricultural products worth
540 [...]
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Wang Yu, director of the gold
and foreign exchange
market of the People’s Bank of China, said that
gold prices will rise because of continued dollar depreciation,
rising demand, and global political uncertainty.
“My personal conclusion is that international gold prices will remain volatile in the short term, while from a
long-term perspective there is a possibility for — and room [...]
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How booming is Macau? Macau’s GDP skyrocketed by an amazing 31.6% in Q1, compared to the same
period a year earlier. Plus, it is much higher than the 22.1% growth in Q4 of 2007.
That booming growth will certainly translate into huge profits for the Macau casinos, including The Sands and the new
Macau Venetian casinos
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Business is so strong in China and Hong that Coach is
buying
out the Chinese company that sells its handbags in Asia. Since Coach gets 25% of its sales from Asia, I think this is a great move.
I do see a lot of Coach bags in Asia, but just a fraction of the number of Louis Vuitton [...]
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Sun Hung Kai (0016.HK) is one of the most successful real estate developers in China, but its stock price has been rocked by an ongoing family feud.
The company’s board of directors just voted
unanimously to remove Walter Kwok as the CEO and this should clear the way for SHK to return to its old form of
making [...]
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The Wall Street crowd thinks that the
state-mandated consolidation of the fixed line and mobile phone industry will hurt China Mobile.
My take is very different. I believe that eliminating CHL’s small but pesky competitors will be a big positive over the
longer term. Remember, those small, unprofitable companies are subsidized by the Chinese government. Getting rid [...]
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Wuxi Pharmaceutical (WX), a biotechnology and pharmaceutical research company, doubled its quarterly profits.
China is moving up the value chain. In the old days,
American companies outsourced their manufacturing needs to China. Today, American companies are outsourcing more valuable services, such as
biotechnology R&D, to Chinese companies.
Wuxi can not only produce the same research and clinical trials cheaper [...]
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Gome Electrical Appliance is the largest appliance retailer in China and business is booming.
Gome reported a
203% increase in year-over-year profits.
Connect the dots, folks. If Gome is selling a mountain of appliances, what does that tell you about the health of the
Chinese real estate market. What does it tell you about E-House, the Century 21 [...]
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