The world Metal’s demand is highly dependent on China’s housing sector. According to the latest stats from World Bureau of Metal Statistics, China’s housing sector accounts for a big chunk of demand for some of the metals such as Steel, Zinc and Copper. Continue (继续)
China’s Share of Global Bulk Cargo has continued to go up since 1995. The share of China increased from about 15% of global bulk volume to more than 30% by 2009. Such is a reflection of the growth of China’s economic strength and growing importance in world cross boarder trade. Continue (继续)
RMB likely to move (人民币汇率要动)
Aug 29
Back in mid June, PBOC announced to de-peg RMB from USD. Since then, RMB did appreciate about 1% by early August but then reverted back near to the prior de-peg level. In summary in the last 2 months, RMB has almost not moved at all against USD.
Does it mean that the so called de-peg is a fake from PBOC? Or is PBOC waiting for a better time to take more aggressive action? My view is that we are likely to see RMB to make bolder move against USD in the next few months.
I have a few observations to support my opinion.
First, Chinese government is sending messages to the public in support of a more flexible exchange rate regime. This message is well reflected from a series of public announcements made by the Deputy Governor of PBOC, Ms Hu Xiaolian. Ms Hu has published five speeches recently to convey the message that Chinese authority has always supported a managed floating exchange rate regime, Continue (继续)
The past ten years can be labeled as the decade of the emerging markets. Based on MSCI World Equity Index, the stock market in emerging markets including China has outperformed that of USA and Japan by far. The best performer is Russian equity market, Continue (继续)
The CEO of Chinatells, Zhijian Wu is being interviewed by Economic Times in India. He gave his views on World equity market and currency market.
中国通总裁最近接受印度经济时代电视台采访，并在采访中发表了自己关于世界经济的看法。
Recently a graph from Wall Street Journal has caught my attention. In the graph (shown above) the author decomposes the components and cost of a typical Blackberry phone and the origin of the components manufacturers. As shown on the graph, none of the key components (those normally claiming a high knowledge content and price) are made in China. Continue (继续)
There is an old saying in China that: it is fine to have little, but it is problematic to distribute unevenly. The Chinese wisdom is powerful in explaining the world that we are living in. According to a study by Bank of America, the labor income as a percentage of GDP in China has continued to decrease despite the fact that total income has increased in the last 20 years. Continue (继续)
According to a survey done by The Associated Press, People from different countries have very different opinions on China. The Press asked the respondents’ view about China on a) Overall; b) economic power. According to their released result, the nationalities that love China most are Pakistanis and Nigerians, followed by Argentinian, Indonesian and Jordanian. The people who give a most negative score to China are Japanese, Turkey, French and German.
根据美联社最近的一项调查，世界各国受访民众对中国的态度大相径庭。比如对中国最欣赏的国民有巴基斯坦人和尼日利亚人。而对中国嗤之以鼻的民众主要来自于日本，德国，法国和土耳其。看来还是第三世界更支持中国。
I have mentioned in a previous article in Business Times that China wants to slow down and China will slow down. Since then I have received some letters from investors asking for advice on how to hedge themselves against such a scenario. In this piece I would discuss some potential solutions.
I would recommend the investors to pay more attention to those developed markets who rely heavily on the growth story in China. The reason is that first it is not easy to short China directly on the capital market. Secondly China might still be fine if the economic growth slows from 10% to 8%. However a two percent loss of growth in some developed markets would make the dramatic change between growth and recession. I think some of the economies are particularly vulnerable to a slowdown in China. One of them is Australia.
Australia is one of the largest beneficiaries of China’s growth phenomenon. Thanks to its large reserve of natural resource, Australia had a commodity boom in the last few years. It is well reflected from the fact that the housing price in Australia only had a minor blip during the financial crisis, which is in sharp contrast to other G7 countries. Also Australia is one of the few developed countries that fared fairly well during the global financial crisis. Continue (继续)
Recently a graph from JP Morgan has caught the attention of Chinatells. According to the stats compiled by JPM, China’s residential land price change (YoY) has always lagged that of GDP, until end of 2009/beginning of 2010. Since then, the land price increase has surpassed that of GDP increase. Continue (继续)
Long Trust Multi Trading
Aug 17
Long Trust Multi Trading is a British run company operating in China. Long Trust Multi Trading Company Limited was founded by Dr F. Chui and is a fully licensed trading company. We have twenty years collective experience of exporting from China and constantly strive with our manufacturers to represent the best side of “made in China.”
The Chinese furniture that we produce serves both as furniture and maintaining a tradition that has survived hundreds of years. All our craftsmen are highly skilled professionals who take great pride in their work. Our furniture is also of great artistic value and can greatly enhance your living or working environment.
We deal with exporting many other products as well as clothing. We have good contacts running lighting, garments, sports equipment, ceramics, handbags, LEDs, and many other local factories. Our contacts and Chinese staff allow us to get the best conditions on all our products.
People to People Sales Leads
Aug 17
People2People Sales Leads is a niche lead company that provides custom sales leads for your marketplace. All of our leads are our existing clients who are families that have requested our no cost services. Each client is individually hand generated, in-person, and face-to-face and we allow you to use them for your selling needs.
The List of Small Business Ideas
Looking for a list of small business ideas? Then you’ve come to the right place. Most lists are simply that: a list. A dry, boring, uninformative list. But that’s not what you want. You want to find a real business model for generating income. You want a pathway to financial independence. Most business idea gurus spend all their time telling you how to get the right mindset. Then they neglect giving you any actual ideas. But you have the right mindset. You are looking for a path. And a path that doesn’t earn any money is no path at all.
Inflation Proof Investor
Aug 17
Here is a good solution you may be interested in. Inflation Proof Investor is a Pan-European investment vehicle for retail investors to beat inflation and benefit from the largest ongoing wealth opportunity of recent decades. They offer Precious Metals and other Alternative Investments related solutions to mitigate the political risk your assets are exposed to. By diversifying your investments into different asset classes and jurisdictions – mostly connected to Europe’s No.1 financial location, Liechtenstein – your assets are no longer under any one Government’s control. You benefit from free access to all investment classes, tax benefits, the highest discretion of Lichtenstein Law and bankruptcy protection.
Michael Pettis is a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University’s Guanghua School of Management, where he specializes in Chinese financial markets. Pettis has taught Finance and Economics at Tsinghua University’s School of Economics and Management and Columbia University’s Graduate School of Business. Pettis has a Blog on Chinese Financial Market which is very popular.
Pettis has offered unique insights on the economic and financial situation of China, thanks to his long living experience in Beijing. Pettis has long held the view that China’s consumption has been artificially suppressed due to government’s policy to keep the interest rate at an excessively low level long below the long term economic growth rate. Such a policy has encouraged business owners to borrow at an artificially low level at the cost of lenders (consumer depositors). Such a structural misalignment impedes China from changing into a more consumption oriented growth model. Continue (继续)
Stephen Green is Head of Greater China research at Standard Chartered Bank in Shanghai. He lives in Shanghai and travels widely around China. Stephen has long been a China Bull, backed up by his living experience in China. Recently Stephen writes a few reports on China Property advising investors that there is no need to over worry the potential crackdown of China property market. According to Stephen, property sector is one of the most important fiscal revenue sources for local governments and they will have a strong incentive to manage the supply of land to prevent over falling of property price. Stephen also believes that China’s economic growth is likely to slow down in the next few years, but still above the growth pace of the developed countries. Continue (继续)
I have pointed out in a previous post that it is a mind blower to trade RMB on the NDF market. If you think that RMB is a free lunch on the table for investors to bet on the seemingly one way direction, well the market likes you as a guest. During the past week RMB surprised most trades by coming off from its recent high and returned most gains that she has gained in the past month. So where is the complaint and pressure from US congressmen? And where is the IMF or World Bank report claiming a 30% RMB undervaluation? Nowadays almost any renowned economist will tell you that RMB is undervalued and it is to China’s benefit to let RMB appreciate. The benefits could go on a long list such as increased purchasing power of Chinese consumers, global rebalancing between trading partners, less reliance on export oriented growth and political Continue (继续)
For the last two decades, China’s phenomenal growth has been one of the most critical changes in the world economy. Such a growth was given tags such as ‘wonder’ or ‘miracle’, and boosts the confidence of all Chinese people by the expectation that were China to continue to grow at such pace, it will be sooner rather than later for China to surpass Japan, and eventually USA to become the world’s leading economy.
The growth story is still under its way. For example, China registered one of the worlds’ best growth rates in the second quarter of 2010 (10.3%). Consider that most developed economies are still struggling in the mire of double dip or debt crisis, for such a big and export oriented economy as China to continue to post a double digit growth, it has to be outstanding if not astounding.
From time to time, however, people do pause and think, and start to raise the questions such as: is this what we want? We are living in the worlds’ fastest growing country, so what? Are we really happier than ten years ago? Continue (继续)
China government unleashed the world’s most aggressive stimulus plan in ’09 for 4 trillion RMB. Due to the scale of such a stimulus, the fiscal deficit has grown exponentially to more than 800 billion RMB at one point. Since the beginning of 2010, however, Continue (继续)
According to a latest study from Standard Chartered Bank, China has been slowing down in the direct purchase of US Treasury since January 2010. However, it is likely that China has been purchasing more US treasury through UK and Hongkong. Continue (继续)
The global financial crisis in 08/09 has pushed many scholars and economists to think what is the cause behind the crisis and the measure to address it. One of the most frequently quoted cause is the global imbalance in trade: Continue (继续)
According to the stats from China’s Bureau of Statistics, Shenzhen has the highest urbanization rate in China, equal to 100%. The other cities with a relatively high urbanization rate are Beijing, Shanghai, and Guangzhou. In terms of population, Continue (继续)
It seems that the pace of Chinese property companies’ acquisition of land has been slowing down since Jan. According to a latest research from Centaline, the land acquisition for the 10 biggest property companies has shrunk from more than 2 million Continue (继续)
What is the real income of a Chinese household? There seems never a clear answer. The National Bureau of Statistics does release the estimate of Chinese household’s income on a national level. However, the figure looks unrealistically low. For example, according to the official f Continue (继续)
China Merchant Bank is the best performer in terms of absolute return and relative return to benchmark in the last 12 months, according to a latest study. The share price (H) of CMB has increased about 25% in the last 12 months, and up more than 10% Continue (继续)
Are you a China Bull? (您对中国有信心么)
Is there a bubble in China property (中国房产有泡沫么)
Secret for China's Growth (中国经济增长原因探讨)
1421: the year China discovered the World
China's Environmental Crisis (中国的环境威胁)
China's Unfinished Revolution (未完成的革命)
The Chinese Century (中国世纪)
The State of China Atlas (中华新地图)
To live (活着)
Who will Feed China: Wake Up Call for a Small Planet (谁来养活中国)
Apr 10 (四月)
Aug 09 (八月)
Dec 09 (十二月)
Feb 10 (二月)
Jan 10 (一月)
July 09 (七月)
June 09 (六月)
March 10 (三月)
May 10 (五月)
Nov 09 (十一月)
Oct 09 (十月)
Sep 09 (九月)
Asia Hotel
Chinatells (主页)