Showing posts with label China. Show all posts
Showing posts with label China. Show all posts

Thursday, August 6, 2015

China's Communist Leaders Can't Manipulate or Save Its Stock Market

With confidence in its Communist leadership waning in regard to its ability to manage its economy and the value of its stock market, Chinese leaders have been attempting a plethora of steps to stem the plunge in its stock market. None of them have worked, and neither will the latest move to limit those shorting the market.

Effective immediately, the new rules, initiated by the Shanghai and Shenzhen exchanges, ban traders from shorting stocks on the same day. That of course increases the risk for those shorting the market, which will theoretically decrease pressure on it.

Why this won't work is the issue isn't what the short sellers are doing, it's the reason they are able to do it profitably in the first place, which is the Chinese market hasn't been able to justify it valuation, which is why it has plunged almost 30 percent since June.

read more

Thursday, June 25, 2015

Declining Consumer Spending Pushing China Back To Infrastructure Boondoggles

Even though the official numbers from China's National Bureau of Statistics suggest consumption is moving steadily along, accounting for 51.2 percent of GDP, and following on the heels of the 12 percent boost in retail sales in 2014, there are questions these numbers may not reflect the reality on the ground.

It has been pointed out that "private surveys and results from consumer product companies" paint a different picture; one that draws the conclusion that consumer spending has been level or contracting.

Other data contributing to this as being the likely scenario are the PPI in April dropped for the 37th month in a row, and manufacturing in China, with a 49.2 reading in May (-4.6%, missing analysts expectations of -4.4%), confirms it is contracting faster than believed.

The point is the decisions and proposed spending actions and focus of Chinese economic leadership reinforces the strong probability China is struggling to not only grow its economy, but to keep it from contracting.

read more ...

Thursday, July 12, 2012

Watch for BRICs to Bottom Out

The BRICs are in a unique position at this time, as the economies of the countries are looking for bottoms whereby to build back up from.

While it's definitely not time to buy as of this writing, as a provable uptrend hasn't been engaged yet, it's important to have your investment money in the sector ready, as it appears there are attempts at a bottom forming, and you want to get in close to when that happens.

It's not good to try to find the absolute bottom, but it is good to watch and wait to see that it has sustainably bounced off their bottom and are on an upward trend.

The BRICs are wildly out of favor at this time, and justifiably so. But there is always lag time from the time an uptrend begins and traders catch on, and that's when you want to invest in the sector. If you get in too early you risk a lot of time, while if you get in too late you're always trying to chase the numbers and you'll have to pay a premium for whatever companies or funds in the sector you're looking to invest in.

The best strategy is to wait until the uptrend is ensured, but before most investors catch on.

There is no doubt about the BRICs' growth in the future, with India probably being the weakest of the bunch because of draconian regulations and laws, but overall, this group of countries are where the majority of future economic growth will be, and those getting in at the right time again will reap significant financial rewards.

Other than specific funds, it's best to look at quality blue chips companies based in China, India, Brazil and Russia, as they still have a lot of room to grow, and are almost ensured of lasting for a long time into the future.

Thursday, February 24, 2011

China to Build 45 New Airports on Travel Demand

China plans to build at least 45 new airports in the next five years to serve booming travel, the top industry regulator said Thursday.

The plans call for spending 1.5 trillion yuan ($230 billion) to expand air travel, said Li Jiaxiang, administrator of the Civil Aviation Administration of China.

Some 130 of China's 175 existing airports lost money last year but Beijing will support them to boost local economic growth, Li said at a news conference.

He said incomes in farming areas have risen when airports open nearby, allowing their fruit and vegetables to be flown to more prosperous major cities.

China's fast-growing air travel market is expected to pass North America as the world's biggest in coming decades.






Full Story

BRIC's Battle For African Assets

China is all over Africa--with its massive aid packages, loans, investments, and thousands of Chinese construction workers. But Brazil is set on making its mark, too, and it's hiring locally to get on the good side of Africans who want jobs and whose resentment toward the Chinese is reportedly increasing.

China's presence in Africa is suspect--while often in the name of aid, its rather sweeping investment and interest in the continent's vast natural resources is clear, as Fast Company detailed in an extensive series on China in Africa. Not surprisingly, relationships with locals are strained--Chinese workers are more often than not the ones gaining employment from Chinese contracts in Africa and tensions have exploded in some instances, leading to shootings and other stand-offs. And all of this makes it easier for Brazil to enter, as the country can learn from China's mistakes.

A railway in Liberia, for example, is being renovated in the hopes of boosting the country's economy, which has largely been stagnant due to decades of civil war. The Brazilian engineering firm, Odebrecht, hired locals to get the job done and have found smooth, successful relations as a result. "It worked perfectly," project manager Pedro Paulo Tosca told Reuters. "The majority of the heavy work was activities that we could perform with local manpower instead of bringing sophisticated equipment to the site."





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Saturday, July 24, 2010

Baidu (Nasdaq:BIDU) Beats Estimates as Google (NYSE:GOOG) Falters

In a censorship battle that Google (NYSE:GOOG) lost to China, Baidu (Nasdaq:BIDU) took advantage of the misguided actions of Google to seize even more share in China and revenue growth to go with it.

Baidu Chief Executive Officer Robin Li said, “We have been gaining traffic share gradually.”

Guidance from Baidu were for revenue in the third quarter to increase 77 percent to $333 million, as it increased customers over the last three months in record numbers.

Earnings for the quarter ending June 30 increased to 837.4 million yuan, or 2.40 yuan for each American depositary receipt. That was up from 383.3 million yuan, or 1.10 yuan for each ADR receipt during the same quarter last year. Analysts had been looking for 710.4 million yuan on average.

Revenue for the quarter stood at 1.9 billion yuan, a big increase over the 1.1 billion yuan in the second quarter of 2009.

Li says the company has over 250,000 customers now, adding 33,000 more in the latest quarter.

Saturday, February 21, 2009

India, China and the Global Pharmaceutical Market

The IndUS Business Journal reports on the Ewing Marion Kauffman Foundation’s study, “The Globalization of Innovation: Pharmaceuticals – Can India and China Cure the Global Pharmaceutical Market?”

…Indian and Chinese scientists are rapidly developing the ability to innovate and create their own intellectual property as a result of Western companies shifting their research and development operations to the two countries. In fact, several non-Indian firms with business units in India and China are performing advanced discovery and have begun to move into the “highest-value segments of the pharmaceutical global value chain,” according to the study.

“Globalization is happening faster than people think. Having India and China conduct such sophisticated research and participate in drug discovery was unimaginable even five years ago,” report author Vivek Wadhwa, an executive in residence and adjunct professor Duke University’s Pratt School of Engineering, and a fellow at the Labor and Worklife Program of Harvard Law School, said in a statement. “The challenge is for America to understand this trend and realize the potential of globalization”…But, it is too early to tell if India and China will eventually rival the United States as important sources of novel drugs, and not just as the world’s top producers of generic medications. Whereas high-tech sectors such as software development and electronics manufacturing have experienced tremendous growth in Asia – the former in India and the latter in China – in the pharmaceutical industry, new products take years to emerge from the research and development stage and then must still clear regulatory hurdles. According to Wadhwa, most of the new risk-sharing agreements between Western and Asian drugmakers are relatively new, dating to 2005, so it could be another decade before they produce concrete results.

Thursday, February 19, 2009

Russia, China in Oil for Loans Agreement

Russia has signed up for a $25 billion deal with China to supply oil in exchange for loans to Russia’s state-owned oil firm Rosneft and pipeline firm Transneft. China Development Bank will lend $15 billion to Rosneft and $10 billion to Transneft; in exchange, China will receive 15 million tons — 300,000 barrels a day — of oil annually for 20 years.

China, the world’s second largest oil importer, is looking to diversify its supplies away from the Middle East. The deal is likely to have political significance, as Russia is looking at China and Japan as key markets for its Siberian oil fields. China has huge reserves, and is turning to Russia, Kazakhstan, and countries in Africa and South America, to ensure energy security.

Russia has won $25 billin in loans from China in return for agreeing to supply oil from new fields in eastern Siberia for the next 20 years as Moscow seeks funds to see its oil industry through the financial crisis.

Transneft, Russia's oil pipeline monopoly, said yesterday China had agreed to lend it $10 billion and Rosneft, Russia's state-controlled oil group, $15 billion in return for 20 years worth of oil supplies.

Igor Sechin, Russia's energy tsar and first deputy prime minister, told reporters as he left Beijing after the deal was signed that Russia agreed to supply China with 300,000 barrels of oil a day, for the next 20 years.

The deal, the largest trade financing agreement between the two countries, alleviates the severe refinancing needs of Russia's two state energy groups as they seek to weather the credit crisis with the country facing its first recession in 10 years. It will also provide China, the world's number two oil importer, with an important new secured supply of oil to fuel economic growth.

But analysts warned that Russia could have to divert crude supplies headed to the west in order to meet the terms of the deal as it faces a deepening decline in production this year. "There is no way Russia can deliver that amount of oil right now without taking it away from existing export routes to the west," said Chris Weafer, chief strategist at Uralsib investment bank in Moscow.

Analysts estimate Russian oil output will fall about 500,000 barrels a day this year as the country's industry faces a cash crunch because of a high tax regime, a dearth of financing and the need to invest more in east Siberia and the Arctic.

Oil output from Talakan and Vankor, two big new Siberian fields, is intended to fill the east-bound pipeline being built by Transneft, which will have a capacity of 600,000 barrels a day, and have a spur to China as well as to a hub on the Pacific.

Valery Nesterov, energy analyst at Troika Dialog, estimated the pipeline monopoly would need about $600 million to build the spur to the Chinese border.

PetroChina Co. and China Petroleum & Chemical Corp., the nation’s biggest oil producers, will benefit from China’s push to gain resources as the credit crisis prompts countries such as Russia to sell energy assets, said analysts.

Under the oil-for-loans agreement signed yesterday, the two companies will gain access to Russian oil at about $20 a barrel, said Wang Aochao, the Shanghai-based research director at UOB- Kay Hian Ltd. Oil in New York is trading below $35 a barrel. Investors should buy PetroChina shares, Gordon Kwan, the head of China research at CLSA Ltd., said in e-mailed comments today.

China, the world’s second-biggest energy consumer, agreed yesterday to provide Russia with $25 billion of loans in return for 20 years of crude oil supplies. The world’s third-biggest economy is winning deals as Russia faces its first recession in a decade and as the ruble tumbles after the global credit squeeze cuts demand for its exports.

“The slowdown in the Russian economy, declining crude prices and production and the credit crunch has lent the Chinese far better bargaining power,” Kwan said.

State oil producer OAO Rosneft and pipeline operator OAO Transneft signed the accord with China National Petroleum Corp., parent of PetroChina, in Beijing yesterday. Russia will deliver 15 million metric tons of crude oil a year, or about 300,000 barrels a day, to China for the next two decades, and build a branch from a new Siberian pipeline to the Chinese border, Deputy Prime Minister Igor Sechin said yesterday. The crude oil supply is equivalent to about 4 percent of China’s daily fuel consumption.

Delayed Pipeline

Plans to build the pipeline from eastern Siberia had been delayed because the countries couldn’t agree on the price to transport crude oil to the Chinese border. Construction of the branch link will start this year, an official from state-run China National Petroleum, who witnessed the signing of the oil agreement in Beijing, said in a phone interview yesterday.

“We believe Japan’s recession has given China the negotiating upper hand to take the lead in building the Russian oil pipeline to PetroChina’s Daqing infrastructure with more attractive terms from before,” said Kwan, who set PetroChina’s 12-month target price at HK$7.20.

Japan’s economy, Asia’s biggest, shrank at an annual 12.7 percent pace last quarter, the most severe contraction since 1974. Daqing is China’s biggest and oldest oilfield.

Russia’s economy may contract more than previously anticipated this year, Deputy Economy Minister Andrei Klepach said yesterday. The country is rewriting the budget to include the first deficit since the country’s twin debt default and ruble devaluation in 1998.

Counter Crisis

The oil-for-loans accord will help counter the global financial crisis, Chinese Premier Wen Jiabao said in a Xinhua News Agency report posted on the government’s Web site yesterday. The two nations have “great potential” in expanding cooperation in bilateral trade, investments and hi-tech development, Wen said in the report.

The agreement strengthened the “strategic relationship” between the countries and brings their energy partnership to a new level, China National Petroleum said today.

Monday, January 5, 2009

Profit Foodservice - BRIC Industry Guide Incorporates in-Depth Five Forces Competitive Environment Analysis

DUBLIN, Ireland--(Business Wire)--
Research and Markets
has announced the addition of the "Profit Foodservice - BRIC (Brazil, Russia, India, China) Industry Guide" report to their offering.

"Profit Foodservice Industry Guide" is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) Profit Foodservice industry. The report includes easily comparable data on market value, volume, segmentation and market share, plus full five year market forecasts. It examines future problems, innovations and potential growth areas within the market.

Scope of the Report

* Contains an executive summary and data on value, volume and segmentation
* Provides textual analysis of the industry's prospects, competitive landscape and profiles of the leading companies
* Compares data from Brazil, Russia, India, and China, alongside individual chapters on each country.
* Includes a five-year forecast of the industry

Highlights

* The BRIC Profit Foodservice market grew by 6.7% between 2003 and 2007 to reach a value of $67.6 billion.
* In 2012, the market is forecast to have a value of $ billion, an increase of 9.4% from 2007.
* India was the fastest growing country with a CAGR of 8.3% over the 2003-2007 period.

Why you should buy this report

* Spot future trends and developments
* Inform your business decisions
* Add weight to presentations and marketing materials
* Save time carrying out entry-level research

Key Topics Covered:

* CHAPTER 1 Introduction
* CHAPTER 2 BRIC PROFIT FOODSERVICE INDUSTRY OUTLOOK
* CHAPTER 3 PROFIT FOODSERVICE IN BRAZIL
* CHAPTER 4 PROFIT FOODSERVICE IN RUSSIA
* CHAPTER 5 PROFIT FOODSERVICE IN INDIA
* CHAPTER 6 PROFIT FOODSERVICE IN CHINA
* CHAPTER 7 Appendix
* List of Tables
* List of Figures

For more information visit
http://www.researchandmarkets.com/research/f7c755/profit_foodservice

Source: Datamonitor


Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

Copyright Business Wire 2009

Monday, December 22, 2008

Research and Markets: In 2012, the BRIC Internet Access Market is Forecast to Have a Value of $ Billion, an Increase of 16.2% from 2007

DUBLIN, Ireland, Dec 22, 2008 (BUSINESS WIRE) -- Research and Markets has announced the addition of the "Internet Access - BRIC (Brazil, Russia, India, China) Industry Guide" report to their offering.

"Internet Access BRIC Industry Guide" is an essential resource for top-level data and analysis covering the BRIC (Brazil, Russia, India, China) Internet Access industry. The report includes easily comparable data on market value, volume, segmentation and market share, plus full five year market forecasts. It examines future problems, innovations and potential growth areas within the market.

Scope of the Report

Contains an executive summary and data on value, volume and segmentation Provides textual analysis of the industry's prospects, competitive landscape and profiles of the leading companies Incorporates in-depth five forces competitive environment analysis and scorecards Compares data from Brazil, Russia, India, and China, alongside individual chapters on each country Includes a five-year forecast of the industry.

Highlights

The BRIC Internet Access market grew by 22% between 2003 and 2007 to reach a value of $26.6 billion. In 2012, the market is forecast to have a value of $ billion, an increase of 16.2% from 2007. India was the fastest growing country with a CAGR of 38.2% over the 2003-2007 period.

Why you should buy this report

Spot future trends and developments Inform your business decisions Add weight to presentations and marketing materials Save time carrying out entry-level research.

Market Definition

The Internet access sector consists of the total revenues generated by Internet Service Providers (ISPs) from the provision of narrowband and broadband Internet connections through both consumer and corporate channels. Revenues generated by ISPs from other Internet related services are not included in this report. Market volumes represent total numbers of users online and exclude corporate data.

Key Topics Covered:

CHAPTER 1 Introduction CHAPTER 2 BRIC INTERNET ACCESS INDUSTRY OUTLOOK CHAPTER 3 INTERNET ACCESS IN BRAZIL CHAPTER 4 INTERNET ACCESS IN RUSSIA CHAPTER 5 INTERNET ACCESS IN INDIA CHAPTER 6 INTERNET ACCESS IN CHINA CHAPTER 7 Appendix List of Tables List of Figures

For more information visit Research and Markets
Source: Datamonitor
SOURCE: Research and Markets Ltd.
Research and Markets
Laura Wood
Senior Manager
press@researchandmarkets.com
Fax from USA: 646-607-1907
Fax from rest of the world: +353-1-481-1716

Copyright Business Wire 2008