stlplaceThe following picture is from Sina.
For the full size picture, here is the link.
Of course, Sina usually has a nice collection of hot topics. Here is the link to its special topic regarding “subprime”. Job well done, Sina!
This is a link to Caijing mag, about the US subprime loans, or Mei Guo Ci Ji Zai. All articles are in Chinese.
I found this article particularly interesting. And the following excerpt very entertaining (I can imagine Cramer’s body language when he shouted).
而更有人直言，本届联储主席伯南克很可能低估了信贷危机的严重程度。惯于以近乎撕心裂肺的腔调在CNBC电视台评论股市的著名财经主持人吉姆·克雷默（Jim Cramer），在8月10日本周股市收盘后，就大喊伯南克对信贷市场“毫无了解”。
The other day I saw Charles Zhang Chaoyang on the “Boss town”, No. 1 Caijing’s (China-CBN) talk show between CEO and guest commentators. This reminded me that Chinese Internet companies are coming of age. Two interesting stories Charles told on the show:
1) Two MIT professors are the earliest investors for Sohu, they put in $ 75,000 each, and it’s worth $30 mil later. Charles is a graduate from MIT. Obviously he knows how to talk to his professor.
2) He went to New York to talk to potential investors in 1996. He wasn’t successful; and found a phone booth calling his lawyer (in crying tone). He had to insert coins to keep the line alive. People waited behind him became impatient. At that time cell phone is still rare in the US.
Keso had a good article about the current status of Chinese Internet companies.
I know it’s not easy, especially last night (morning in the US), when we saw the market took another dive (Dow was down 300 in the begining of regular trading). But we have all been there, remember the Feb 27 “Chinese crash” and subsequent US market crash?
More recently I remember the May 30 “Chinese crash 2.0”, which happened after the goverment raised the (stock trading) stamp tax. This is used as a milestone for many analysts, and mutual funds here in China. Before that the market was filled with retail investors and they bought all kinds of craps: those so called “concept stocks”, companies which has little organic growth, but with the potential to being acquired for the “shell”; or companies who happened to own some “hot bank stocks” which will IPO soon…May 30 changed all that.
These days it’s not easy for investors who hold US stocks, because the market has been in declining mode after the sub-prime woes. Do you still remember the DOW 14,000? That was July 19, as I wrote a post “IS Dow 14000 relevant“. Well, relevant or not, the Dow has retreated and it’s now under 13,000.
As individual investors we can not precict the market, nor should we fight against the market. But as general market declines, usually there are some good stocks go on sale. For examples, the Crocs (CROX) and Mindray (MR). Both companies reported good earnings, got a pop, and now went back to the pre-earning price. Some possible explanations: CROX got dragged down by the weak US consumer sentiment, Heelys HLYS’ crash; for Mindray, I really could not find a good reason other than short term investors move money to WuXi Pharma Tech (WX). Both companies (CROX and MR) had some insider sell activities too.
The first, Chinese banks. They are making money from two sides: the developer, and the home buyer. The developers borrow from the banks; they will pay interest and principle (hopefully) later on. The home buyers borrow from the bank, and pay mortgage (interest and principle).
The second, developers. It’s not hard to understand, as the market booming, the developer can charge more for the same apartment or villa.
Last but not least, the local goverment. The land in China are owned by the goverment, the developer will pay more for the new land as the housing price go up. The goverment wants its fair share of the profit too. In addition to the land, the goverment will collect more tax and fees as the housing price go up. So, as much as the (central) goverment wanted to control the housing price (we all want a harminious society, right?), the local goverment don’t think so, at least from economy side.
Here is the Q2 results (Xinhua-PRNewswire). Besides revenue and earning, I’m more interested in the following numbers:
— During the second quarter of 2007, Home Inns opened 26 new hotels. As of June 30, 2007, the Home Inns hotel chain consisted of 171 hotels in operation with an additional 63 hotels under development, covering 66 cities in China.
X5?
maybe not?
I found my blog was listed as “200 most influential personal finance bloggers“, No. 182, at Hustler $$$ Blog.
Thanks, Hustler. I have added a link for your Hustler $$$ blog (under “finance”).
WuXi Pharma Tech (NYSE: WX) is a pharmaceutical R&D service company based in Shanghai, and they do work for the pharma giants like Pfizer, Merck, etc. They are the No. 1 player in China and growing fast.
To give some background, here is a discussion thread from trader168.com; and a valuation analysis article from Yahoo (ChinaBio Today).
I’m not in the pharma business but from my observation, pharma R&D outsourcing is a sweet area because of the following trend.
