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Great Wall of Capitalism
Intel has committed to investing $4 billion in China by 2010, including a $2.5 billion chip factory in the northeastern
city of Dalian that will be used to make chip sets, which shuttle data from the microprocessor to other system components.
The world thinks that China is buying enormous of copper on a daily basis. That is not correct. China is producing
more and more copper, and building more copper manufacturing. So is steel.
11-Oct-2007: JP Morgan analyst Dick Wei said Baidu.com to report Q3 revenue in line with Wall Street consensus,
but slightly below the investment bank's own previous target. The report fuelled concerns that the recent chinese
stocks rally may be coming to an end.
Is the party over?
13-Jun-2007: CNBC Mad Money Jim Crammer gave his viewers a double dose of Chinese stocks: the stable, reliable
variety and the risky, exciting and speculative names in
China Pullback Plays.
23-May-2007: US-China Trade Talk concluded as follows:
- Both agreed to increase the number of daily passenger flights between the two nations by 2012, going
from 10 to 23.
- Cargo flights were also increased.
- Both agreed to develop up to 15 large scale coal-methane projects.
- China has agreed to allow greater foreign access to its financial services markets.
- China also agreed to allow foreign firms to expand operations in China, including brokerages.
- China did not lift of the caps on foreign ownership of China banks, securities firms and insurance
companies. The current limit 25% stake.
- China rejected U.S. requests that it accelerate the revaluing of its currency, the yuan. It will reform
its exchange rate on its own initiative, gradually.
04-May-2007: Jing Ulrich, JP Morgan Chairwoman of China Equities, said on CNBC:
- China has $1.3 trillion in foreign exchange reserve. It is forming a new investment agency called The
State Investment Company. This company will invest on behalf of China in overseas market.
- China is short of natural resources, from oil to iron org, and from copper to gold. We expect China
will go for a shopping spree in years to come.
- As in oil, China will have to go wherever it can to get the resource it needs. So it looks at Africa,
Latin America and Middle East.
- In addition to natural resources, China is looking for companies in the West, which is strong in
distribution and have established brand names, as well as strong technologies. It is too difficult to
build brand names organically.
- In years to come, China will become a major exporter of capital. So China will be seeking to acquire
real assets.
- Foreign companies in the financial service sectors are seeking to enter the China market. Insurance,
banking, and securities world are very attractive targets for foreign companies.
- There is a tremendous liquidity in China market. Last year (2006) China and Hong Kong had total IPO
fund raising of $61 billion. (London $49B, NYSE+NASDAQ+ASE $48B)
- China’s once unlimited cheap labor force is on the decline.
- China has had record growth in productivity.
Here is a list of Chinese companies that are traded on U.S. Stock Exchanges:
- Advertising Services
- AirMedia Group (AMCN)
- Focus Media Holding Ltd. (FMCN)
- Agricultural Products
- Airlines
- China Eastern Airlines Corp. Ltd. (CEA)
- China Southern Airlines Co. Ltd. (ZNH)
- Automotives
- China Automotive Systems Inc. (CAAS)
- Basic Materials
- Aluminum Corp. of China Ltd. (ACH)
- China Natural Resources Inc. (CHNR)
- China Petroleum & Chemical Corp. (SNP)
- China Precision Steel Inc. (CPSL)
- CNOOC Ltd. (CEO)
- PetroChina Co. Ltd. (PTR)
- Sinopec Shanghai Petrochemical Co. Ltd. (SHI)
- Yanzhou Coal Mining Co. Ltd. (YZC)
- Communication Services
- Xinhua Finance Media Ltd. (XFML)
- Consumer Goods
- Fuwei Films (Holdings) Co. Ltd. (FFHL)
- New Dragon Asia Corp. (NWD)
- Education Services
- New Oriental Education & Technology Group Inc. (EDU)
- Noah Education Holdings Ltd. (NED)
- Financial (Insurance, Real Estate Services)
- China Life Insurance Co. Ltd. (LFC)
- CNinsure Inc. (CISG)
- E-House (China) Holdings Ltd. (EJ)
- Xinyuan Real Estate Co. Ltd. (XIN)
- Healthcare (Drugs, Medical instruments)
- China Medical Technologies Inc. (CMED)
- China Nepstar Chain Drugstore Ltd. (NPD)
- China Shenghuo Pharmaceutical Holdings Inc. (KUN)
- WuXi PharmaTech (Cayman) Inc. (WX)
- Industrial Goods
- China Architectural Engineering Inc. (RCH)
- China BAK Battery Inc. (CBAK)
- China Fire & Security Group Inc. (CFSG)
- Internet (Information Providers, Games Operators, Travel Services)
- Baidu.com Inc. (BIDU)
- China Finance Online Co. Ltd. (JRJC)
- Ctrip.com International Ltd. (CTRP)
- eLong Inc. (LONG)
- Giant Interactive Group, Inc. (GA)
- Netease.com Inc. (NTES)
- Perfect World Co. Ltd. (PWRD)
- Shanda Interactive Entertainment Ltd. (SNDA)
- Sina Corp. (SINA)
- Sohu.com Inc. (SOHU)
- The9 Ltd. (NCTY)
- Jewelry
- Fuqi International Inc. (FUQI)
- LJ International Inc. (JADE)
- Services
- Acorn International Inc. (ATV)
- China Security & Surveillance Technology Inc. (CSR)
- Solar
- China Sunergy Co. Ltd. (CSUN)
- JA Solar Holdings Co. Ltd. (JASO)
- LDK Solar Co. Ltd. (LDK)
- Solarfun Power Holdings Co. Ltd. (SOLF)
- Suntech Power Holdings Co. Ltd. (STP)
- Trina Solar Ltd. (TSL)
- Yingli Green Energy Holding Co. Ltd. (YGE)
- Staffing/Recruiting Services
- Technology
- Mobile Handset
- China Techfaith Wireless Comm Tech Ltd. (CNTF)
- Qiao Xing Mobile Communication Co. Ltd. (QXM)
- Qiao Xing Universal Telephone Inc. (XING)
- Network/IT
- China Development Group Corp. (CTDC)
- Software
- CDC Corp. (CHINA)
- Longtop Financial Technologies Ltd. (LFT)
- Television Service
- China Digital TV Holding Co. (STV)
- Wireless Communications
- China GrenTech Corp. Ltd. (GRRF)
- Telecom Services
- China Mobile Ltd. (CHL)
- China Netcom Group Corp. (Hong Kong) Ltd. (CN)
- China Telecom Corp. Ltd. (CHA)
- China Unicom Ltd. (CHU)
- Utilities
- Huaneng Power International Inc. (HNP)
And this is a list of Exchange-Traded Funds (ETFs)
that tracks China ADRs:
- PowerShares Gldn Dragon Halter USX China (PGJ)
- iShares FTSE/Xinhua China 25 Index (FXI)
- UltraShort FTSE/Xinhua China 25 Proshare (FXP)
Some of these companies have produced many, many, many millionaires in China.
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