April 23, 2008 – stlplace

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Last Updated on April 23, 2008 by stlplace

In last two days China Mobile (NYSE:CHL) and Syngenta (NYSE:SYT) released its Q1 results (Bloomberg: CHL result, SYT result). Both are doing very well lately. Today CHL got an upgrade from Zacks. But let’s not got too excited on the stocks, as a general rule. Also keep in mind sometimes we could use the analyst upgrade or downgrade as an opposite indicator (market sentiment).

Remember a company’s fundamental does not change before and after an analyst wrote a report.

China Mobile’s strength or new growth mainly comes from the rural areas, and data/internet plan in urban areas. While I apploud its management’s forward looking strategy, I am not sure how long this momentum can sustain. Note CHL trades at a much higher price compared to other mobile operators, and it is the No. 1 carrier in the world according to market cap. Here is another interesting Chinese article about China Mobile (from Caijing).

Two policies to stablize China market

Reading Time: 2 minutes

Last Updated on May 1, 2008 by stlplace

(Update Apr 24) The trading tax bullet worked, at least for a day. The Shanghai composite index went up 305 points, or 9.29%. Similar performance from Shenzhen. All but two stocks in the two markets went up, many went up 10% (the limit). See the below picture for more details.

(The thumbnail above is clickable, for faster download, click here for a full size picture)

(Original) The Chinese goverment (regulatories) has listened, and now they are pulling the trigger. Here are the two new policies:

On April 20 Sunday evening, they unveil the new lockup share transaction rules. Basically they are saying any large block of shares (larger than 1% of overall shares) has to go through a special trading platform, to avoid the large supply of unlocked shares. Reasonable move. But I heard people already abused the system. Guess what? They sell 0.99% instead of 1% (Chinese news from Sina). This is one thing I don’t like some of my countrymen: they cut corners and bend the rules. One reason Chinese have not made good quality cars like the Japanese do?