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ChinaDailyNews,Week 7,2011
Updated automatically every 5 minutes

China’s High-Speed Rail Dilemma

...sacking of China's Rail Minister, Liu Zhijun, highlighted in the New York Times article put forward by China Travel yesterday: 'Currently, China’s conventional rail system is stretched to capacity carrying two commodities: coal and people.

Huawei’s American Trust Issue

...causes from China’s handling of dissent to its opaque defense agenda. Giving the greatest possible benefit of doubt, Huawei is guilty of none of this, but the fallout of such a record – as an early international emergent from China’s corporate cauldron – falls upon the company nonetheless. Third, Huawei’s links to the People’s Liberation Army  ..

China factory growth at 7-month low

...weighed on China's factories in February, even as inflation has continued to accelerate.

The ten years of a Chinese middle class

...land of China. As Huawei, ZTE, Bell and other enterprises rapidly expanded in the country, they have recruited many engineers from major colleges and universities in the country. Michael got an offer. As an engineer with masters at the R & D department, his monthly salary was 7200 yuan. In the beginning his life was more like an extension...

Renren.com, China's Largest Networking Site, Said to Plan $500 Million IPO

...China’s largest social- networking service, is seeking to capitalize on strengthening demand for the nation’s Internet stocks with a U.S. initial public offering.

CPC discipline watchdog vows zero tolerance to corruption

...Party of China (CPC) will intensify anti-graft work at grassroots levels and in key areas susceptible to corruption. There will be no tolerance to any corruption, and the CPC’s discipline inspection authorities will conduct thorough investigations into  corruption cases and bring due punishment to each corrupted official, according to an officia...

China’s Internet: The Invisible Birdcage

...of the China Economic Quarterly. Some of the numbers may already be a bit dated but it is still relevant. The editor chose the title; all errors are my responsibility. “China internet adds 12th website” – The Onion (July, 2009) The Onion’s satirical headline reflects a common foreign perception – reinforced when Google pulled out of

Beijing for Beijingers? On The New Housing And Car Purchase Restrictions

...all over China buy property here, as Beijing is the center of power and has the best education and health systems in China. Many in the global Chinese diaspora have also purchased homes in Beijing. Apparently the rules for foreigners buying residential property have not changed; foreigners can still buy one home if they can prove they have worke...

 Macro 101 – Foreign debt

...trade with China. I think it is important to understand the money “mechanics” so you are aware of how the economic system actually functions. In my opinion I think many people ‘demonise’ sovereign debt without actually understanding what it is. That is not to say that it is always good to have sovereign debt, but if you don’t understand

The debate on global imbalances rages on

...surpluses in China and oil exporters in the Middle East was an important and underappreciated cause of the recent financial crisis (although far from the main cause). Now, before we get into the details, Bernanke’s speech has already provoked harsh criticism from some commentators (I am a huge fan of Naked Capitalism, but I think

Chinese microcap basket trade mega-update, part 1

...The China stock trade is currently the largest macro position in my portfolio.  Its off to a rocky start.  The basket over all has treaded water, shifting between slightly-above breakeven to slightly below.  However, that is largely because I aggressively sold positions as individual stocks spiked.  Cashing in on quick, sharp spikes in stocks li...

New Data, But No New Light, on China Property Prices

...China’s real estate sector is important. At home, rising property prices are the focus of attention for China’s chattering classes, and a potential source of social unrest. Abroad, markets regard real estate investment as a key part of China’s growth story, and the global demand picture for iron ore and copper markets.  

Beijing reports hot-money flows at low US$35.5b

...China's foreign exchange regulator has finally published its first report on the hot money that has been flowing into the country, estimating that a smaller than expected US$35.5 billion in speculative money entered last year.

China’s inflation dilemma

...China's central bank is again on the move. From Reuters: "China on Friday raised required reserves to a record 19.5 percent, adding to an increasingly aggressive effort by Beijing to stamp out stubbornly high inflation. "Over the past four months, China has also raised interest rates three times and ordered banks to issue fewer loans in an ...

Xi Jinping: A Princeling’s Princeling

...to be China’s next president, Xi Jinping? Reuters news agency has reviewed a large number of U.S. State Department cables sent to WikiLeaks but unpublished to date. From the snippets … Continue reading →

The Dark Side of China's RRR HIke

The PBoC just announced to raise reserve requirement ratio (RRR) by 50bp, effective on 24 February. After this hike, RRR will be 19.5% for large banks and 17.5-19.0% for smaller banks. This 50bp RRR hike will drain about RMB350bn from the banking system. We expect two more 50bp RRR hikes this year. ...

Yingli’s Record Q4 and 2010 Solar Shipment

Finance of China. The majority of the shipments are scheduled to be delivered in the second half of 2011. 80 percent of Yingli's global sales were in Europe. Yingli's manufacturing covers the full photovoltaic value chain, from polysilicon production through ingot casting and wafering, to PV cell production and module assembly, wi...

China solars get some love in Feb

...Chinavestor) There hasn't been much change on the overbought end of the China stock universe since yesterday other than solar stocks got bolder. Suntech Power (NYSE:STP) and Giant Interactive (NYSE:GA) continue to tower over the rest but outlook for solars remain solid thanks to a robust earnings from Yingli Green Energy Hold. Co. Ltd. (NYSE:YGE...

 Will China Hit That Inflation Deer In The Global Macroeconomic Headlights Anyway, Despite The Fact They Are Slamming On The Brakes?

...stance on China’s comeuppance for attempting to pack 50 years of growth in to 3 years is still quite unchanged. I am fully aware that many “smart” bankers and analysts have different perspectives, but as I posted a couple of weeks ago, “Currency Crisis! Inflation! Sovereign Defaults! Bahhhh… Who Are ‘Ya Gonna Believe, The Government

Beijing Goes on the Hunt for Hidden Lending

...As China tries to rein in spending, the country's financial regulators are making moves to bring off-balance sheet lending back on the books, but will they work?

China raises reserve requirements

...China’s central bank has increased lenders’ reserve requirement ratios for the second time this year, by 50bps, a statement on its website said. The increase is the latest move to mop up liquidity in China’s banking system, following persistently high inflation, Reuters reports. Tightening had been widely anticipated in Chinese money market rate..

China Agritech: more miracles in the plant

...staff of China Agritech.  It is proof that the US cannot possibly compete with the Chinese in any total factor productivity sense. I covered the super-hero status of China Agritech's staff in a previous post.  To recap the Anhui plant of this company  - according to company filings - manufactures 100 thousand (metric) tonnes

ZTE, China Mobile in 4G trial for Germany's No 3 wireless carrier

...ZTE and China Mobile will launch a 4G trial for Germany's third-largest wireless carrier, E-Plus Group.

 China's passion for property lacks the bubble factor

While Beijing announces the latest edicts in a loud voice, local governments undermine that policy in whispers, writes Henny Sender

Global X Debuts ASEAN ETF (ASEA)

...relationships with China, and a wave of economic liberalizations that have encouraged foreign investment. Also included is one of the wealthiest countries in the world, a model for economic development in Asia. “We are pleased to provide access to the ASEAN market for US investors,” said Bruno del Ama, CEO [...]Click here to read the

China MediaExpress Holdings (NASDAQ:CCME): Due diligence supports Buy - Bounce?

...co called China MediaExpress Holdings (NASDAQ:CCME). The company has been under attack by several short-sellers recently, causing a 10 pt drop in its share price over the past 2-3 weeks. Short-sellers have claimed the company to have overstated its revenues, among other things.- This morning a small outfit called Global Hunter is out with a

Richard Koo goes unconventional on China

...around China expert, and come back with the discovery that the “conventional wisdom on [the] Chinese economy has begun to collapse.” Here’s Koo’s thinking, with our emphasis: It is well known that China’s sustained rapid economic growth has resulted in numerous problems … Domestic consumption is just 35% of GDP, and the country faces a widening ...

China FDI rises 23% in January

...investment in China climbed in January, adding to record inflows last year that are complicating Beijing’s efforts to curb inflation in the world’s fastest-growing major economy, reports Bloomberg. Investment rose 23.4% to $10bn last month from a year earlier, the Ministry of Commerce said on Thursday. The figure was at the top end of economist...

 China scraps national property price index

...China's National Bureau of Statistics is to stop publishing its index of property prices, the Wall Street Journal reported. The agency will instead release separate data for the 70 cities

Geithner: Chinese Inflation Helping U.S. Compete

...pressures in China would help U.S. competitiveness because companies now have to factor in rising costs when deciding whether to invest in China.

 Tracing the Myth of a Chinese Leader to Its Roots

...Beach for China Digital Times (CDT), 2011. | Permalink | No comment | Add to del.icio.us Post tags: CCP 5th generation, Cultural Revolution, Shaanxi, Xi Jinping Download Tools to Circumvent the Great Firewall 

China Beats The Next 10 In Steel, Added Up!

...China, with 626 million tons of production, is greater than the next 10 countries,  added up. India is fifth in the list, with 66.85 million tons. Four producers are in the top 50 - Tata Steel, SAIL, JSW and Essar, in that order. Consider this: China's trying to slow down. If they won't use that capacity, where does it go? Exactly. This...

 The US Government’s Debt Spiral

...China’s share of foreign Treasury holdings has risen from around 5% in 1994 to around 28% as at end-2009, in the process becoming the US’ single largest creditor (see below chart). So does the US’ high indebtedness to China place both nations on a political and economic collision course? Denninger seems to think so. We’re not at war.  But in th...

The rough side of rubber

...are destroying China’s richest biodiversity hotspot. But blaming small-hold farmers will not resolve the issue, writes Janet C Sturgeon.Over the past couple of years, the government in Xishuangbanna, a prefecture in south-west China’s Yunnan province, has finally woken up to the destructive environmental impacts of monoculture rubber plantations...

 China As Intellectual Property Powerhouse? Someday. Maybe.

...CNN China correspondent Lara Farrar, just wrote an excellent story on China's efforts to boost its intellectual property protection so as to better enable it to become an innovation-based economy. The article is entitled, "Keeping things safe: China aims to boost its intellectual property rights," and it nicely highlights Beijing's increasing em...

 Caijing Hits Bold with New Report

...The China Media Project summarizes a report in Caijing about a mysterious woman who has links to several high-level corruption cases, and argues that the magazine is keeping up its legacy of hard-hitting investigative reporting despite the departure of editor Hu Shuli: The Caijing report alleges that Li Wei (李薇) used her relationship with her h...

Huawei

...happy for China to own 10 per cent of its Treasury bonds. It should be less protective of other assets too

China, Where GM Sold More Cars In 2010 Than In The US, Sees January Car Sales Plunge 10.3%

...based China Passenger Car Association reported that sales of passenger cars fell 10.3 percent in January from the month before to 965,238. Per Manufacturing.net: "Chinese bought 13.7 million passenger vehicles last year, up by a third from 2009. But that robust growth is forecast to cool this year due to the expiration of tax incentives  

January China Commercial Banks Loan Growth, M2 Below Expectations

...China continues to telegraph that monetary growth is once again under control (at least for the time being): in January commercial banks extended CNY 1.04 trillion in Loans, up from CNY 480.7 billion in December, which however was well below the consensus of CNY 1.2 trillion.  Outstanding CNY loans grew by 18.5% yoy in January, down from 19.9% y...

China Agritech: China's amazing productivity levels

...China Agritech has put out an eight page shareholder letter rebutting claims of short sellers.  Readers know that in the past I have been inclined to take such letters under extreme caution. But in this case I take the company statements as the gospel truth.  They illustrate just how miraculous Chinese productivity levels are.