China’s government has launched a few measures to cool down the domestic property mania. One of the measures is to build more social housing (Click HERE for a Reuters Story). The social housing is built to be rented to the low income families who are unable to afford to buy their own home. Accoridng to the release from NDRC, in 2010 the government will increase the building of social housing to about 5 million units, Continue (继续)
How does China’s PE get out of their investment? The answer is simple: IPO. In 2010 up till November, 86.1% of the nation’s PE exit their investment through IPO. There are also other types of exits such as M&A, Ownership transfer and Buy Back. Continue (继续)
Internet becomes the sexy baby of China’s VC investment again, at least in 2010. Up till November, VC funds have invested a total of more than 500 million USD in China’s Internet sector. Such an investment mania is not that surprising following the success of Youku, Tudou and Alibaba. The next to follow is Clean Tech (more than 450 million) Continue (继续)
VC funds have had a great year in China in 2010. Every time I talk to some friends in PE or VC industry in China, I get the feeling that there are so many liquidity in the country chasing projects. For example, a website designing cartoons without any unique edge can easily be chased after by several RMB or USD funds with millions of cheque in hand. Continue (继续)
Now that it is almost at the end of the year, probably it is a good idea to do a summary of IPO market in Hongkong. According to the stats that we collect, in 2010 HK stock market has raised a total of about 410 Billion HKD. About 60% of the fund raised are in financial sector (mainly big banks from China), followed by Material and Consumer Discretionary. Continue (继续)
China is the top investor in infrastructure in the world. According to a recent statistic from World Bank, China invests about 350 Billion USD in infrastructure in 2008, which accounts for about 8% of its GDP. The next biggest investor in infrastructure in terms of its GDP is India (slightly less than 8%). Continue (继续)
Senators in the United States keep complaining about China’s trade surplus against US and fret about a so called under valued RMB. They reason the complaint by pointing out how many billions of dollars that China earns on the trade surplus resulting in how many thousand jobs that has cost US. Recently an article from WSJ pointed out that in fact the trade surplus from China is grossly over exaggerated. They use Iphone as an example: due to the fact that Iphone is assembled in China, 100% of the value of Iphone is recorded as a trade surplus to China. However, in fact, Chinese component (labor cost mainly) only accounts for about 3.6% of the total value of an Iphone. The bulk others are coming from Germany, Japan and South Korea. Therefore to penalize China for her trade surplus is like balking at the wrong tree from US congress.
中美贸易争端从来没有安静的时候。有很多美国参议院不停抱怨中国的贸易顺差太大，导致国际经济秩序混乱。但事实上，透过现象看本质即可以发现，有许多结论不宜下的过早。比如有一批经济学家做了个研究发现，苹果公司的Iphone，由于其在中国组装，因此每一台出口的iphone都算在中国的出口顺差上。但事实上，一台iphone中国制造占到的比重还不到4%。绝大部分iphone的核心技术和产品都是从日德等国进口的。因此不分青红皂白的责备中国的贸易顺差显然是经不起严密的推敲的。
IT is all about China when the market comes to IPO. You might not believe it or don’t like it. However, the fact is, if you look at the top ten IPOs in the past 10 years, it is all about China (almost):
| The World’s Largest IPO since 2000 | |||
| Company | IPO Date | Fund Raised (USD Bn) | Domicile |
| ABC | Dec-08 | $19,222 | China |
| ICBC | Feb-06 | $19,112 | China |
| AIA | May-10 | $17,729 | HK |
| VISA | Nov-07 | $17,052 | USA |
| GM | Aug-10 | $15,774 | USA |
| CCB | Aug-07 | $15,681 | China |
| SMIC | Feb-04 | $14,012 | HK |
| BOC | Aug-05 | $12,195 | China |
| Shenhua Energy | Sep-07 | $11,798 | China |
| Dai-ichi | Feb-10 | $10,912 | Japan |
Source: Bloomberg
过去10年如果讲上市，就不得不提中国。上表提供了过去10年在全球上市的最大的10家公司，其中7家来自中国。
It is widely reported that Shanghai’s stock exchange aims to increase the trading hours to 24 hours by 2020 (click here for the story). Whether such a goal is realistic is a topic for another day. However a fact worth noting is the growing market impact of China’s stock market in the past decade. In fact, in the past 7 years, Continue (继续)
China’s interest rate is all set by the central bank (People’s Bank of China). In fact, the major decisions about interest rate is set by higher authorities than the central bank. Such key rates as one year deposit and lending rate need the approval from the highest decision making body (State council and prime minister). Continue (继续)
China’s trading surplus and current account surplus continues to shrink in 2010. In fact, China’s CA and trade surplus peaked in 2008, by when the current account surplus reached a high of about 11% of GDP. Since then, the CA surplus as a percentage of GDP continues to go down. Continue (继续)
In the past weeks I have received a few requests from readers on the component of China’s CPI. So I present this chart here based on the source from National Bureau of Statistics in China. As you can see from the chart, Food is the single biggest contributor to China’s CPI (34%), Continue (继续)
China is under the way towards an unprecedented big nation of cars. In 2010 China surpassed USA to become world’s biggest country of car sales annually. This trend is poised to continue. According to JP Morgan China will likely have about 140 million cars on the road by 2015. Continue (继续)
China’s college enrollment has increased dramatically in the past 20 years. However, a recent comparison between China and USA on the college to population ratio reveals that there is still about 5% difference between the two, albeit this gap has been narrowing at Continue (继续)
When Wong meets Sam in the park, what will they talk about? Hear about what they have to say!
山姆大叔和王先生在公园里偶遇，他们开始了一段发人深思的对话。
China’s latest inflation number (4.4% in Oct Y-o-Y) has caught attention and concern of a lot of people (Click HERE for a story from FT). PBOC has reacted by raising the RRR and interest rate in a seemingly agressive fashion. Which sector is most resillient to inflation becomes the natural question for stock investors. Continue (继续)
China’s households worth 1 million USD or more will continue to grow at a fairly high speed in the next few years. Since 2003 China’s millionare households have increased from less than 200,000 to more than 400,000 by 2009. Such an emergence of high net worth households have largely boosted the consumption of luxury goods (Click HERE for a relevant Story). Continue (继续)
Recently China’s food price has caught much attention (Click HERE for a Bloomberg Story). To analyse the rapid increase of CPI in Oct (4.4%), the biggest contributor has been the food price (up 10% y-o-y). As a result there has been a wave of price spikes in different food items such as garlic, soybean and sugar. Overall China’s food accounts for about 33% of CPI as of 2010. Continue (继续)
Nov 16
Why is the relationship with US so critical to China? Why is the FX rate of RMB and USD such a big deal? This graph gives some sign. Since 2006, China has continued to accumulate huge trade surplus with not only USA, but the rest of the world. Continue (继续)
A lot of people complain that the equity and property markets in China have become a gigantic casino , such a casino that only the bold, the lucky or the insider gets an upper hand. Today I am not here to judge the nature of such speculative market. However, what I would like to show here, is that there is a good reason for such a speculative mania Continue (继续)
The CEO of Woodsford Capital Management and Chinatells, Mr. Wu Zhijian is giving a lecture in NUS on China’s economic outlook. The presentation can be downloaded from HERE.
Woodsford Capital Management的首席执行官在新加坡国立大学为学生授课。授课内容可以点击这里下载。
For years, emerging economies have been linked with risk and uncertainty. Recently, however, this image seems to be changing. As of today, most emerging economies have strong balance with a solid current account surplus, while most developed economies are more or less associated Continue (继续)
It seems that the investment enthusiasm is back to the stock market. According to the stats from CEIC, the Shanghai stock exchange turn over has continued to climb higher and now is at the historical high. This is particularly relevant in the environment that the government Continue (继续)
The news that China has purchased some seven hundred billion Yen of Japanese bonds has aroused heated debate and discussion in international media (Click HERE for a bloomberg story). It even attracts some pernicious comment from Japan’s Finance Minister who feels ODD that China can buy JGB while Japan can not buy Chinese bond (Click HERE for the story). Continue (继续)
In the past 10 years, one of the achievements that China’s economic development delivered is a growing middle class. By 2008, Middle class has almost reached 100 million households in China accounting for about 20% of the total households. 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)
Mr China – A memoir (中国先生)
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)
Asia Hotel
WCM
Chinatells (主页)