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China Stocks

China Citic Bank Debuts

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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.

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Business China

Wedding Related Business

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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.

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Business China

Consumer New Trend

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(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.

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China Stocks

The Long Waiting Line in Banks

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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…

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Business China

Check into Home Inns HMIN again

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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.

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Fun

Addict to Plastic

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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.

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China

Shanghai Auto Show

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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.

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China Stocks

Spam Messages from Home Inns HMIN

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Occasionally I received spam text messages from unknown people. People want to sell cars, apartments, etc. But yesterday I got a message from Home Inns (Rujia), it promotes the post “Golden week”(May 1 to 7) sales: it will give one night free during May 6 to 10 if I stay in their hotels for 3 nights. I can not stop laughing.

Separately, Home Inns is selling more shares (stocks), it will get $30 m from the proceeds to build more hotels. The competition among economy hotels in China are heating up.

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China

Is China Imitating US too closely?

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That’s how I felt after spending a lot time in China in last 2 years. China is essentially the US in 1950 and 60s. The cars. The urbanization (people move from rural areas to cities). The chain restaurants, hotels, and hair salons. The malls. The new industrial zone such as ZhangJiang and MinHang. The credit cards. The new apartments and houses. The highways. The bullet train. The new banks (foreign and domestic).

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China

MinHang ZiZhu IT Clusters and JiaoDa

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Here are some of the pictures I took at ZiZhu IT Clusters (ZiZhu info and digital harbor if directly translated from Chinese). These buildings look like the ones in the States. Both Microsoft and Intel have presence there.

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Second picture is taken at JiaoDa MinHang Campus, which is near the IT cluster. Two of my family members attended JiaoDa. I visited the campus in year 1992.

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Note MinHang was the first development zone of Shanghai (earlier than world famous PuDong), the first Coca Cola bottling company in China was born there. Nowadays ZiZhu IT cluster is modeled after Silicon Valley. With the completion of Metro line 5 (from Xin Zhuang to MinHang), MinHang is much closer to the city. It’s interesting to think you can go from New York (downtown Shanghai) to Silicon Valley (MinHang) in one hour.