Reading Time: < 1 minute I have talked about investing in China many times in this blog. Recently a good friend of my wife asked this question: how to protect her parents retirement (life style) now that they are near retirement? I think this is a very good question, also a very common one. Recently I read Charlie Munger’s book… Continue reading Investing in China: I
Reading Time: < 1 minute (Jan 31) Read this piece from Shui Pi, a reknown Chinese stock columnist. Quote a paragraph here: 统计表明，2007年中国资本市场融资再融资的规模近8000亿，而印花税为2005亿，两者相加近10000亿，相当于流动市值的十分之一。这笔钱是从市场中拿走的，基本上不可再生。如果2008年的主板融资规模维持不变，那么再加预期中的创业板的融资规模和大非解禁的资金数量，增量资金的需求量就是一个天文数字。2008年的股市有那么乐观吗？He is saying, the transaction cost plus the new IPO last year totaled RMB 1 trillion, which is about 10% of the total market float. (Original) After recent brutal selling of Chinese domestic market, it appears some “blue… Continue reading Some Chinese stocks look cheap
Reading Time: < 1 minute The following screen shot is from Capital Week Jan 5, 2008 We know from Jan 1 2008 China will have a unified corp tax rate of 25% (some tax rebate for certain industry and foreign enterprises will still apply for a while). It appears retailer, bank, home builder, and telecom (include mobile phone) will be… Continue reading China corporate tax rate reform: winner and loser
Reading Time: < 1 minute The Chinese market closed for a week during this national holiday. The HK and US market is still open. There are lots of actions of Chinese stocks in those markets. From the blue (red) chips (such as LFC), to more speculative ones (such as EFUT). It appears to me the valuation of FXI, LFC etc… Continue reading Holiday reading etc.
Reading Time: < 1 minute I was thinking about buying some ICBC or BoC shares in Shanghai, but the price difference of the Shanghai and Hongkong (or ADRs in NYSE) kept me from pulling the trigger. Since one Yuan is roughly worth one HKD, why would I pay premium for the A shares if I can get H Shares (or… Continue reading Same stock different prices
Reading Time: 2 minutes It’s the Chinese Yuan (CNY), or Ren Ming Bi (people’s money). In early march, when I was in Shanghai, one USD is worth 7.72 Yuan, now it’s about 7.56 Yuan, a loss of about 2% in about 4 months. It appears this trend is not going to stop for a while. This is scary if… Continue reading Got Yuan?
Reading Time: < 1 minute The party is finally here. The ticker symbol is 601628 (not available at Yahoo Finance yet), it was priced at 18.88 (lots of 8 here). And it could go to 30s (note I usually make wrong guess, so take it for what it worth…) The ticker symbol in Hongkong is 2628.HK (from Yahoo Finance). And LFC is… Continue reading LFC China Life Insurance Debut Tomorrow in Shanghai
Reading Time: < 1 minute I am not good at predicting the top or bottom of stocks, so take it for what it worth… First is the LFC, China Life Insurance, which went from 100 to 140 in a few days mainly due to the “back to China” IPO in Shanghai Stock Exchange. Note GSH and other China blue chip… Continue reading Bubble in some China Stocks
Reading Time: < 1 minute It’s priced at RMB 18.88 per share, and it will go out of gate on Jan 9, 2007 in Shanghai. Today its US ADR LFC closed at $138.42. Note each ADR represents 40 shares of A share (in Shanghai). Consider today’s USD CNY conversion rate, 1 USD = 7.825 CNY. 138.42*7.825/40 = CNY 27.08 Assume… Continue reading LFC Shanghai IPO