December 10, 2009
BYD e6 EV Coming to LA Freeways

Henry Li, a senior director at BYD Auto, said in an interview with Rupert Murdoch's Wall Street Journal that
Los Angeles was top of the list for locations in the USA to debut the e6 electric vehicle (EV) next year. BYD (10% owned by famed investor Warren Buffet) has plans to bring the e6 EV to America ahead of competitors.
Called the "Volt Killer" by auto wags, the e6 is a fully electric car. The Chevy Volt, when (if?) it rolls out will be a hybrid.
If selected LA would be lead market for the autos and headquarters for BYD. With domestic EV startups such as Tesla Motors planning assembly in the greater LA region, southern California could propel a renaissance of the auto industry....
Labels: chinese autos, electric cars, free trade, Warren Buffet
December 09, 2009
100 Million Overseas Chinese Tourists by 2020

Beijing made tourism a "pillar" of the Chinese economy in the 11th 5-year plan that ends next year. At the recent central government Work Conference on the economy, support for developing the tourism industry was stressed. It is expected that 40 million Chinese will travel outside the confines of the People's Republic in 2010 and head for Asia first followed by Europe and America. By 2020 100 million Chinese tourists are predicted to travel outside China.
Labels: economic impact, foreign relations
December 08, 2009
China-Kazakhstan Gas Accord Finalized
December 07, 2009
Free to Shop

Beijing will loosen the infamous hukou system in a bid to hasten urbanization and get Chinese to consume more. The
Central Economic Work Conference of China's central government met over the weekend and announced
reforms of the hukou or household registration system to allow migrants from small and medium size cities to gain citizen's rights (access to eduction & housing mostly) in big cities. The expansion of hukou rights may allow many migrants to settle in the cities where they find work.
The Work Conference embraced the concept, mostly imposed on China by Western partners, that consumption must be a driving (if not the driving) force in the Chinese economy. The conference said the goal was for consumption to replace public spending. Yet a more rapid settlement of migrants to China's growing mega cities will only increase the need for more infrastructure - roads, railroads, subways, housing, electricity, etc., which is reflected in the dominance of investment as a major force in China's economy. Stocks in property companies rose today, some analysts say on the news. But rural migrants are at the bottom of the elaborate class structure in China and usually too poor and too conservative to quickly become materialistic consumers.
The hukou system began in the early 1950s as a way to prevent Chinese cities from becoming overrun by poor rural migrants and end up like the major cities of the so-called developing world, that is overwhelmed by slums and unplanned development. The system became a major component of the centrally planned economy at the height of Mao's dictatorship and ultimately held back China's great cities. Since 2001 it has been relaxed to varying degrees at the Provincial level and in national policy. Also as with so many laws in China it is often completely ignored....
Labels: china property, land reform
Chinese IPOs Down Under Too

There are around ten (10) Chinese companies listed at the Australian Securities Exchange (ASX) and
two more may soon be added: Rongtai Logistics, an e-commerce logisitics business in steel trading and Gansu Biotech will pursue backdoor listings. Both businesses will set up shop in Adelaide capital of South Australia and home to a growing Chinese expat community....
Labels: chinese stocks, foreign investment
Chinese IPOs: CCM TRO NKBP
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Coming this week to NYSE and NASDAQ three new Chinese initial public offerings. CCM is Concord Medical Services that leases radiology equipment to cancer centers throughout China. CCM will trade on NYSE and was originally priced between $9-$11 per share. Also at NYSE is TRO, Trony Solar Holdings, the leading Chinese maker of thin film solar modules. In a crowded market, ShenZhen based TRO hopes to raise up to $200 million. And on NASDAQ NKBP is the symbol for China Nuokang BioPharma offering shares between $10-$12. NKBP derives much of its revenue from hemocoagulent drug
Baquting. (All prices quoted are US dollar.) So far this year, Chinese IPOs are among the best performers in the world (see chart).
Labels: chinese stocks, clean tech, stocks, tech stocks
December 04, 2009
Is China Buying Canola Again?

A mystery is deepening at the Port of Vancouver. A 60,000+ ton panamax class cargo vessel is scheduled to arrive mid December with intent to load up with a cargo of Canola or more specifically Canadian rapeseed ("Canola" is a trade brand that means literally Canada and oil). The news has excited Canada's futures markets for many believe the cargo of canola may be China bound. If so, it means Ottawa and Beijing have sorted out the suspension of canola trade imposed by Beijing on November 15 when China declared canola imports must be cleared by a phyto-sanitary certificate that the canola was free of Leptosphaeria maculans or blackleg. The restriction was sudden and
Canada believes it is neither a health nor safety issue. China is Canada's number 1 market for canola, buying over 2.8 million tons last year. But no destination is yet recorded for the unnamed vessel.....
Labels: foreign relations, foreign trade, free trade
GM Turns Chinese, Cedes Control to Shanghai Auto

In Shanghai today GM announced it will cede control of its 12 year old highly successful (and lucrative) joint venture with Shanghai Automotive group to its Chinese partner SAIC Motor Corp. With a controlling interest of 51% SAIC Motor will be able to run Shanghai GM independent of Detroit. Further, a new joint venture will be formed in Hong Kong called General Motors SAIC Investment Ltd. to expand into India and carve market share in the subcontinent for the Wuling microvan and other products....
Labels: automobiles, chinese autos, foreign investment, foreign trade, gm, india
December 03, 2009
China Plans Nuclear Container Ships
China to Further Open Tourism Sector to FDI

Overall, foreign direct investment (FDI) in China rose 5.7% in October. Although total FDI is down compared to 2008 the first 10 months of 2009 China received over $70 billion (US dollars) in foreign investment....
Labels: foreign investment, gdp

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