Category: China

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China

What Happened to Chinese Market?

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Today, Feb 27 Tuesday, the Chinese Stock Market got a huge sell off. You can see some rationale from this Seekingalpha article. This sell off also spread to the US market, not surprisingly some of the Chinese ADRs such as HMIN and MR also dropped 10%. Is it the beginning of a bear market? Or merely a correction? I don’t know. Predicating market trend is very difficult, and it’s not my job. One thing I do know is: investing in solid companies and grow with the company.

I will visit Shanghai in couple days, more first hand analysis of Chinese market will follow.

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Career China

Mindray MR is Hiring

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Mindray, the leading medical device maker in Shenzhen, is hiring. Here is the link in Chinese. Most are R&D positions. And some campus recruiting events. Interestingly, I noticed they are looking for Spanish, Portuguese, German and Russian speaking sales person, as shown in this ad. From this and previous company’s SEC filings we can see the company still depends European (or South America) for the international growth. As you may know obtaining US regulatory approval for their product is a long process, although everyone knows this is the biggest piece of the pie.

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China Stocks

Focus Media FMCN is on the Focus

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It will report the earnings after market today. The Street est. earning is $0.62, but I think the whisper number is much higher. In other words, even if it beats the earning, if it issues a soft guidance, the stock may get punished tomorrow. This is the danger of  “playing ERs” with hot stocks. Interestingly, Sage Brennen has this question regarding “does this screen work”. Actually I had same question before, one of the reasons I did not buy FMCN.

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China Fun

Chinese New Year Celebration at Olin

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Friday evening I attended the New Year celebration at Olin School of Business, Washington University. It was organized by Greater China Club. Very well orchestrated, although the party is a bit late since New Year was Feb 18.

I remember a few months ago our friends Indian students celebrated their Dawali. I think both groups did well in showing the Olin and Wash U. community the Chinese and Indian culture. It seems to me the business students really know marketing in the States 🙂

Categories
Business China

Xinhua Finance Media Limited IPO

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Found this through my friend thesunsfinancialdiary. I briefly went through their F1 prospectus. I had to admit I’m not in best position to evaluate their business: they have 5 divisions providing services from creating adverstisement to customer research. I can think of a St. Louis based privately held company called Maritz which does something similar: they organized conferences for other companies, send promotional gifts for companies like Nissan, take care of the employee reward etc. One way to analyze Xinhua Finance (symbol: XFML) is comparing each division to a public company does something similar, then adding them up.  

On a related matter, the event marketing services in China is booming. About 2 years ago, during my Jiu Zhai Guo tour, I met a senior executive of a conference organizing company  based in Beijing, I learned about three most popular conference places in China: Shanya (Beach), Dali (Yun’nan), and Jiu Zhai Gou/Chengdu.  

By the way, the parent company of Xinhua Finance Media Limited is traded in Tokyo. Also, the CEO and co-founder of the company is Ms. Fredy Bush, not sure if she is related to the George Bush family…

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China

Happy New Year

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The Chinese version, the year of Pig (roar, whatever you want to call it). I am using Keso’s new year card because I can not create a card as good as his 🙂

happy new year pic

Image created by Keso.

Categories
China Stocks

Motel 168 IPO

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From Reuters:

“China’s Motel168, one of the country’s three biggest budget hotel chains, plans to raise about $100 million through an initial public offering on Nasdaq, sources familiar with the plan said on Wednesday.

Motel168, controlled by privately run Shanghai hotel and restaurant manager Merrylin Holdings Ltd., has hired Wall Street investment bank Morgan Stanley (MS.N: Quote, Profile , Research) to advise it on the IPO, planned for the third quarter of this year, the sources said.

Morgan Stanley is also a major shareholder in Motel168 after an investment arm of the bank paid $20 million for a 20 percent stake in late 2005, the sources said.

“Motel168 is hungry for capital now as it has to compete with Home Inns, Jinjiang Inn and other rivals for aggressive land purchases to build more hotels,” said one Shanghai-based source close to Motel168.

“If you don’t speed up, then you lose market share and soon you will be completely out of the race,” said the source, who declined to be identified before an official announcement.”

Wang Jianshuo has a good review about motel 168 in his blog.

Categories
China Stocks

Olympics Effect on Chinese Companies

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I listened to the conference call of Sohu and Ctrip lately. Not surprisingly, both companies mentioned the positive effect of 2008 Beijing Olympics. Sohu is the Internet content service sponsor, and Ctrip should enjoy the booming of China travel industry before Olympics. But I think this Olympics effect is already priced in the stocks, and to make things worrysome, the effect may not turn out as big as people thought. The SOHU and CTRP stocks got punished partly because of this “irrational exuberance”.

On the other hand, Chinese economy is still in fast growth mode and I am bullish on some of the companies whose growth does not solely depend on Olympics. Or at least their PR person does not mention Olympics all the time 🙂 

2008 olympics pic

Categories
China Stocks

The Trend of World Assets

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This is an interesting statistics of the world assets by geography, courtesy of My Money Blog. I remember from Jeremy Siegal’s recent book “The Future for Investors”, one trend is the emerging middle class in developing countries (Brazil, China, India etc.) are going to buy assets from the “baby boomers” in the developed economies. In other words, maybe 20 years from now, 5% of Microsoft will be owned by Chinese and Indians. This also reminded me one more number, the saving rate in China is 50%, and the US saving rate last year is -2%. Note the interest rate in China is quite low, and investment options are not plenty. The Chinese domestic stock market is taking off lately, but I think many people will buy foreign equities if the Yuan (RMB) become a hard currency.

This is even more interesting considering many foreign funds are buying Chinese stocks lately.