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ChinaDailyNews,Week 6,2011
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China CPI Comes At 4.9%, Below Consensus Of 5.4%, In Line With Zero Hedge "Pervasive Data Manipulation" Expectations...Chinas inflation was less than economists estimated in January after the statistics bureau cut the weighting of food in the consumer-price index.Consumer prices rose 4.9 percent last month from a year earlier, the statistics bureau said in a statement on its website today. That compared with a 4.6 percent gain in December

Sina Weibo Adds Voicemail Weibos and Direct Video Uploads...networks in China and hands-down the most innovative. Moreover, the new innovations on the Weibo are far outpacing those on its western counterpart, Twitter. Multimedia weibos allows users to do two things that Twitter’s simple 140 characters tweets can’t offer: Voicemail Weibo (语音微博) – users can dial a service number on their mobile phones

RISKS WITHIN CHINA’S BANKING SYSTEM ARE BUILDING Slowly but surely we are beginning to see signs of systemic irregularities and weakness in the Chinese economy. Kristine Li, senior director of credit strategy, Asia Pacific at RBS says the banking system is beginning to resemble the Japanese

Mainland power use last month up on December, report shows...Corp of China may have increased by an average of 9.4 per cent last month from a year earlier, up from a nationwide 5.4 per cent rise in December, an industry report showed yesterday.

Chinese stock markets and European politics...happened in China besides the 25 bp interest rate hike on Tuesday, not counting of course the never-ending stream of fireworks and the several really great jaio zi dinners I have managed to snag from my students and their families.  I have nonetheless been getting a lot of questions recently about what I expected for the stock market this year. ...

Five Books: Evan Osnos on China

The Year of the Metal Rabbit: China’s High-Speed Rail Network...writes about Chinas accomplishments in high speed rail construction: The upcoming year will be a truly historic one for Chinabecause its fleet of “metal rabbits”—its bullet trains—and their network of tracks

Emerging Markets Not Participating in Global Rally...China, India, and Asia Pacific are all below their 50-days.  Typically when the US market is rallying, emerging markets are rallying even more.  Bulls looking to outperform the S&P 500 have been using emerging market securities to do so for multiple years now.  Recently, however, this strategy has been a performance killer.  

Inflation, deflation, and China...China's monetary policy was thus effectively outsourced to the Fed, and China's inflation rate fell from almost 30% in early 1994 to zero by 1998 as a result. Thanks to a strengthening currency, low inflation, and market-liberalizing policy moves, China's economy since 1994 has quintupled in size, propelled in part by explosive growth in its exp...

Rise and fall of CGA...Chinavestor) Shares of China Green Agriculture (NYSE:CGA) surrendered 6.4 percent of the gains from yesterday in one hour of trading on Thursday. The organic fertiliser maker reported fiscal 2011 second quarter results that failed to impress investors. ChinaGreen Agriculture (NYSE:CGA), February 4-10, 2011 Source: Reuters.com Chinese food ...

Chinese shop till they drop in Japan Back in the 1980s, Japanese, flush with cash, would flood luxury stores in Paris, Milan, London and New York, picking up the most expensive items. Thirty years on, it is the wealthy Chinese who have replaced them as the conspicuous …Continue reading: "Chinese shop till they drop in Japan"

Picking Disruptive Technologies...China was thinking about investing $1.5 trillion into technologies that they think each one can become greater than trillion dollar contributors to their economy. They picked 1. Alternative fuel cars 2. Biotechnology 3. Energy-Saving and Environmentally friendly Technologies 4. Alternative Energy 5. High End Manufacturing 6. Advanced materials ...

China's lunar holiday retail sales surge...China's retail sales for the Lunar New Year holiday surged 19 per cent year-on-year in one of the biggest rises in a decade, signalling a surge in domestic consumption.

Risk Management: Watch the Hang Seng...concern about Chinas economic situation as they continue to tighten monetary policy. We’ve lightened up a little and monitoring the Hang Seng closely and a break of 22,600 would lead us to reduce risk across the board

Drohende Krise: Jahrhundertdürre in China treibt Getreidepreise...In Teilen Chinas ist es so trocken wie zuletzt vor 200 Jahren. Chinas Premier Wen Jiabao warnt: "Wir müssen uns auf das Schlimmste vorbereiten."

China Is Orchestrating A 30% Crash In The Property Market...to which China is quietly (or not so quietly) trying to orchestrate a 30% drop in real estate prices, in the form of a "Thunder attack" which combines increased purchase costs, property taxes as well as the rise in interest rates. If proven true, this is a major flashing red sign of just how out of control inflation, especially property and real...

Yingli to Supply 20 MW of PV to Borrego Solar...dominance of China-manufactured PV panels (see the recent Suntech/Sempra announcement), Yingli just announced a 20-megawatt supply agreement with San Diego-based Borrego Solar Systems, double the size of last year's deal. These modules are designated for commercial solar projects across the U.S. A few years ago, Yingli Green Energy (NYSE: ...

The End of China's Surplus...policies that China will adopt as part of its new five-year plan will shrink its trade and current-account surpluses. By Martin Feldstein read more

Pettis on Chinese liquidity...happened in China last week, not counting of course the never-ending stream of fireworks and the several really great jiao zi dinners I have managed to snag from my students and their families.  I have nonetheless been getting a lot of questions recently about what I expected for the stock market this year. The market been closed for the past we...

China’s lunar rates rise...expecting a China rate rise at some point. But today? Tuesday? Officials at the People’s Bank of China just announced they’ll increase the one-year yuan lending rate to 6.06 per cent from 5.81 per cent, and the one-year yuan deposit rate to 3.00 per cent from 2.75 per cent — supposedly in response to inflation. And they’ve only just got back fro...

On Tencent’s Acquisition of Riot Games China and Korea are light years ahead of many gaming startups when it comes to in-browser games and virtual goods. According to Mitch Lasky, a Benchmark partner and investor in Riot, the deal was hotly contested and almost every suitor

BW: The Youth Unemployment Bomb...in China. [Nov 18, 2010: [Video] ABC News on China Part 2]  The larger question is, with hundreds of millions entering the global job force - is there enough work to go around long term?  Quite a few of the Egyptian youth actually have college degrees - but nowhere to go with them.  In the older generation, you hear stories of Egyptian adults tr...

THE CHINESE MARKET COULD BE DUE FOR A BIG RALLY...least in China.  Boesky says rate hikes were a leading indicator of the last multi-year bull market in Chinese stocks and believes that this time could be the same.  He cites the following chart: Full video is attached: Source: CNBC

LDK Solar (LDK): 'One Stop Shop'...of Cabot China & Emerging Markets Report explains, "And we think that stock is LDK Solar (LDK), a company that is displaying and forecasting some of the most dynamic growth of any company we follow -- solar or not. "LDK Solar got its start in 2005 and came public during the glory days of 2007-the stock nearly tripled from its IPO in June to...

Chinese New Year, 2011...In China Lunar New Year is the most important date on the calendar and triggers over a month of holiday travel which is often described as the largest annual human migration in the world. Hundreds of millions tax the transport system.

What is the Chinese Zodiac Stock Indicator Forecasting for 2011?...Xinhua China 25 Index Fund (NYSE:FXI). In the chart above, we can see that FXI (NYSE:FXI) moves closely with the Hang Seng and so would be a good proxy for investors who want to follow the feng shui of the Chinese Zodiac. Investors and traders around the world are constantly on the lookout for accurate prognosticators of stock market action ...

Corn Prices To Soar As Chinese Imports Increase Ninefold Compared To Official Projections...estimates from China are correct. The US Grain Council, the industry body, said late on Thursday that it has received information pointing to Chinese imports as high as 9m tonnes in 2011-12, up from 1.3m in 2010-11." Why is this a concern? Because "the US Department of Agriculture, which compiles benchmark estimates of supply, demand and stock...

China Exports and U.S. Manufacturing Employment...to China, and U.S. factory employment: This is at least interesting.

Fung shui outlook shows strong finish for 2011...head of China/Hong Kong strategy.

Brazil and China: A young marriage on the rocks...China. Rousseff's regular meetings are just one sign of how she is steering Brazil toward a more confrontational stance with China. read more

Thoughts on Commodity Prices and China’s Hydropower Push...push in China to maintain sufficient energy resources in order to maintain economic growth. He writes:Yesterday China gave the go-ahead to the power generation company Huadian to build a cascade of 13 dams on the Nu river, overturning a suspension ordered by the premier since 2004.  The dams combined will have a capacity of 21.3GW, similar to th...

CCTV New Year's Gala Liveblog...live in China - you can check out a streaming broadcast here. [ more › ]

Drought could have serious global impact...of northern China are suffering through their worst drought in 60 years – a dry spell that could have a serious economic impact worldwide if it continues much longer.

The Choking of China — and The World...writes about Chinas “ecological disintegration”, heavily citing Jonathan Watts’ book, When A Billion Chinese Jump. Swiping at “gasbag” Thomas Friedman’s premature celebration of the country’s Green Revolution, he lauds the individuals and NGOs within Chinawho are fighting to bring it about. This is not an unambiguous story. This destruction i...

Global imbalances and the financial crisis...China was pursuing an export-led growth strategy based on an undervalued currency. And over in the Middle East, rising oil prices were boosting the foreign reserves of oil exporters. Bernanke’s “Savings Glut” As a consequence, in the decade following 1997, a huge gap emerged between savings and investment in the developing world (chart above)....

Video: China’s property bubble...Authers about Chinas property bubble and the implications for the rest of …Continue reading: "Video: Chinas property bubble"

Wanhua deal paves China’s way in emerging Europe...Chinas Wanhua Industrial Group has completed its takeover of Hungary’s Borsodchem – an intra-emerging market marriage that creates the world’s third largest isocyanate manufacturer. The chemistry of isocyanates (raw materials used to make foams for the automotive, construction and furniture …

China’s Manufacturing Prowess