Author: stlplace

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China Stocks

Chinese open to buy H shares

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Last few days is full of events for China capital market, and the new generation of the Chinese investors (capitalist?). Last weekend the captialweek, a well known magazine for investors, celebrated its 15 years anniversary and the 18 years of China capital market. The following picture is the cover of latest “capitalweek” magazine published last Saturday.

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Yesterday, the Chinese goverment opens the gate of H-shares to ordinary Chinese citizen. In other words, from now on Chinese citizen can buy the stocks traded in Hongkong. There is some limitations at this initial stage (people in Tianjin felt a bit lucky), as right now only the Bank of China, Tianjin Binghai branch takes your money, and BoC international (the brokage arm of BoC) take your order (Petro China? China Mobile?).

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China Stocks

Everyone wants to be Buffett

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Warren Buffett is a popular guy in China, although he has not visited China. But his book (more accurately the books about his investing philosophy) has been translated into Chinese. Such as this one, Buffett’s letters to shareholders, which is good. But there are many other knockoffs, such as this one, Lin Yuan the Chinese Buffett, I haven’t read the whole book, but read a piece of it. I think Lin Yuan is a sharp guy, but he is not Chinese Buffett.

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China

Booked Sanya trip through Ctrip

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I have been a Ctrip user since 2005: in May 2005 I booked the air ticket and hotels to Jiu Zhai Gou from them. I also visited their call center when I picked up the tickets (they did offer to deliver the tickets, but I had some free time and was curious about their operation so I went). In early 2006 I booked motels (Home Inns) through Ctrip, because I know I can get CNY 10.00 discount that way (without Home Inns membership).

More than two years has passed, I am using their service again. This time we are going Sanya (note the we instead of I). A lot has been changed in China travel business in past 5 years. More people are taking the “freedom tour”, vs. the old way of “group tour”, in which people pretty much “sleeping in the bus”, and “shoot pictures at different scenic spots”. In this “freedom tour”, where people drive their own car, or take their own walk, they don’t have to worry about when the tour bus will leave, which place the tour guide will take us to shop, etc (picture courtesy of travelplaces.co.uk)

Sanya pic

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China

Shanghai Snapshot IV

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Outside Guangfa Huafu Securities, it’s the seminar notice about “general economy and stock picks”. Why the Security firms offering those seminars? Well, it can get the GuMing excited and trade more, in turn brings in more profits to the Security firm.

IMG_5158

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Stocks

Subprime 101 in picture

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The following picture is from Sina.

subprime loan pic chinese

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!

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Stocks

Subprime 101 in Chinese

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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”。

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China Technology

Sohu and Chinese Internet Companies

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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.

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China Stocks

Took the selloffs as oppertunity

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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.

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Stocks

Baby thrown out of bath tub

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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.

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Business China

Who is benifit from China real estate market?

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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.

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