stlplace(Update Apr 30) I went to Carrefour to buy Maotai, it’s out. I noticed Maotai has some low end products now (Maotai Chun instead of Guizhou Maotai). The Shanghai No. 1 Food Store across the street does carry Mao Tai, but it charges for 525 Yuan (Carrefour price was 438). According to Carrefour associates, the Maotai was out for couple months now. This is not surprising because I heard some distributors will pay several months in advance to get the Maotai. Hot stuff, isn’t it?
After I read its prospectus, I decide not to pursue its open IPO. Another reason is I just bought some HMIN and MR: I want to limit the number of stocks I hold.
IB is a great business. I heard its name first from a friend who recommend it for its low cost and high speed in stock (options) trading. Later on I found it’s very popular among active traders. I read its prospectus (old) last Nov and was impressed by its technology; I also learned “what is market maker” from the reading. But I do have some concern: the valuation and the control share holder. It does have impressive growth though: from market making and brokerage.
Symbol Name Price (Apr 26) Earning (2006)
600000 浦发银行 28.28 0.77
600015 华夏银行 13.29 0.35
600016 MingShen 13.27 0.38
600036 CMB 20.04 0.48
Like Baidu, if you look at 601998 (its ticker symbol) at Sina Finance. For english readers, read Bloomberg news here. BTW, 1998 is a good number in Chinese. Citic Bank (中信银行) IPO was priced at 5.80 Yuan, and people expected it to open between 7 and 8, based on PE and PB (price book) ratio of other Chinese banks. But it went up as high as 12 this morning (Apr 27 Shanghai). This is much higher than the H share traded in HK (0998). Based on 2006 earning of 0.12 Yuan, the PE is about 100.
I read a paper lately and found people in big cities like Shanghai spend a fortune in wedding (about same amount as people in developed countries). Here are some examples: limos and wedding dresses. I took these pictures last month.
(Update Apr 26 morning) Shortly after this report, Wan Jia Wan Hao (Xin Yu Star) stock (600576) gained 5%, the maximum percentage it can go as this is a “ST” stock. What can I say about this crazy market?
Dong Fang Securities, a Chinese brokerage firm, did a report about the new trend of Chinese consumers. Here is a summary. Some of the highlighted industry: medical, budget hotels, media (advertisement), and jewelry.
You can baidu the report if you are interested. The report listed some public companies (in China) may benifit from this trend.
I’m not picking on the China Construction Bank, this is a problem existing in all the banks. I can think of two reasons:
1) People are “managing their money” nowadays, e.g., people are withdrawing money from bank and put into the stock market; people are doing the certificate of deposit…
I bought some Home Inns (HMIN) again yesterday. Not surprisingly the stock dropped after I bought it, as things usually happen that way. But my time frame is from couple months to couple years, so I am not worried. The recent weakness of the stock is expected due to the new offerings and lock up expiration. Also I heard some rumors in China (two key managers left the company to join competitors recently, according to 21st century business herald). At the same time, the competition is heating up among budget hotels, as shown in this article from Pacific Epoch.
I’m not talking about the credit card use (I’ve talked a bit in my previous posts).
It appears to me Chinese are using more and more plastic bags for packaging: from the morning “Bao Zi” to “Ma La Tang” (Chong Qing hot pot) on the street.
It’s show time. All the major car makers including domestic players such as Chery and Geely (remind me of Heelys), are putting up a big show in Shanghai new international expo center (is that the venue for 2010 World Expo, just be curious) this week.