September 30, 2010
Chongqing New Energy Firm to List on NYSE
A polysilicon manufacturer out of Chongqing, Daqo New Energy Corp., looks to rai$e $108 million (US dollars) with a listing on NYSE under stock symbol DQ. Daqo makes the key ingredient for solar photovoltaic panels and Daqo lists Yingli Green Energy of Beijing as a major customer. The company began direct manufacturing of solar panels in May when it opened a factory in Nanjing, Jiangsu Province. Daqo New Energy is one of 23 subsidiaries of the Daqo Group, a big electronics conglomerate founded in 1965 in Jiangsu....
Labels: alternative energy, chinese stocks, clean tech, green energy
September 17, 2010
Shanghai Back Below 2,600
The Shanghai Composite, China's bell-weather stock index, is back below 2,600 after a hefty sell-off at the end of the week. Commenters variously credit rising real estate values and tightening lending standards (for 2nd and 3rd homes only) or the tension with US Treasury Department over currency as the cause for the drop. However, as I have pointed out before the impact of China's week-long national holidays may be at play. At Chinese New Year there is what I call a "hong bao" or "lai see" effect - that is selling stocks for cash gifts. The week-long National Day holiday is coming up soon and the sell-off could be in preparation for the holiday. National Day holiday is also a big occasion to travel, visit family, shop, and party....
Labels: chinese stocks, shanghai composite
September 09, 2010
What Happened to the China Collapse Call?
Stephen Green of Standard Chartered Bank (Shanghai), an expert in China's stock markets, writes in Bloomberg that China is returning to a "Sweet Spot" for foreign investment as the Chinese economy is neither too hot nor too cold. China may see an influx of $100 billion (US dollars) in FDI this year.
Morgan Stanley's Chief Economist for China Qing Wang (he replaced Andy Xie) calls it the "Goldilocks Scenario" and has advised for some time that Beijing's mandarins are skilled at using the right policy tools at the right time and have succeeded so far in avoiding hyperinflation and any crash including it appears a property bubble.
If China is Goldilocks what about the Bears that said China was too hot/cold and ready to crash? Mark Faber, Jim Chanos, and others may have some explaining to do if China doesn't disintegrate soon...
Labels: chinese stocks, economy, financial news, morgan stanley
ReUnification Watch: First Mainland Firm Lists on Taiwan Exchange
Yangzijiang Shipbuilding (registered in Singapore but with all operations on China mainland) surged 7% today when it opened on the Taiwan Stock Exchange. The interest in shares shows that the long list of mainland firms eyeing a Taiwan listing may reap rich awards when listing becomes easier and directly possible as China and Taiwan merge their already closely related economies...
Labels: chinese stocks, reunification, shipping, taiwan
China Stock Market Cap Tops USA by 2030
According to a new report by Goldman Sachs (via the Financial Times) emerging markets stock market capitalization will reach $80 trillion (US dollars) by 2030 from around $14 trillion today with China the world's largest stock market cap by a wide margin....
Labels: chinese stocks, global economy, stock market
March 19, 2010
Winner Medical Gets NASDAQ Listing
ShenZhen based Winner Medical Group is the leading Chinese exporter of medical dressings. The company has 10 plants in the Pearl River Delta and thousands of employees making specialized non-woven 100% cotton products. Winner has USA FDA license to direct ship sterilized medical products to America. The company has been approved for a NASDAQ listing and will start trading in early April under symbol WWIN. This is another opportunity to directly invest in the roaring Chinese economy and the cost conscious US healthcare industry....
Labels: chinese stocks, exports, foreign trade, free trade, shares
February 18, 2010
China Doomsayers
None other than famous "Dr. Doom" Marc Faber has joined the chorus calling for a China crash this year. Marc Faber is well known for warning clients about the 1987 Wall Street selloff but he has been right about as often as a flashing clock since then although Faber's views on long trends are very prescient. If you had followed Faber's advice in January 2007 (see The Sinomania! Show episode 3) you would have missed out on the spectacular run up in Chinese stocks that saw the Shanghai Composite Index balloon to over 6,124. And Faber was wrong in 2003 when he said that SARS would ruin the Chinese economy. Most analysts believe and data appears to support continued strong growth in China with the risk to overheating versus a profound slowdown. Time will tell....
Labels: chinese stocks, economy, global economy, markets, stock market
February 04, 2010
Foreign Firms To IPO on Shanghai Exchange
Pricewaterhouse Coopers (PwC) Hong Kong office says five foreign companies are lined up to float shares on the Shanghai Securities Exchange. It has long been predicted that Beijing will allow foreign firms to raise capital in Shanghai although there is no official confirmation that this writer can find nor any information on which 5 firms may go to Shanghai. Overall, PwC expects 60 IPOs in Hong Kong including some mega offerings, 15 large listings in the Shanghai A share market including possibly Agricultural Bank of China, and 130 IPOs on the new small & medium enterprise and the CHINAEXT boards on the ShenZhen Stock Exchange.....
Labels: chinese stocks, foreign investment, stock market, stocks, tech stocks
December 28, 2009
Shanghai World's Top IPO Market in 2010
The action may switch back to Shanghai from Hong Kong in the new year according to some analysts at least in terms of raising funds on the stock market. It is estimated that 380 billion Yuan or over $55 billion US dollars in capital may be raised on the Shanghai Securities Exchange in 2010.
Seven of the top 10 IPOs in 2009 were China shares (see chart).
Rumours persist that foreign companies may be allowed to list on Shanghai too....
Seven of the top 10 IPOs in 2009 were China shares (see chart).
Rumours persist that foreign companies may be allowed to list on Shanghai too....
Labels: capitalism, chinese stocks, stock market
December 16, 2009
Market Cap of Chinese Stocks on NYSE Over $1 Trillion
The head of NYSE/EuroNext's Beijing office, Michael Yang, told Bloomerg News that up to 20 Chinese companies may IPO on the New York Stock Exchange in 2010.Shares of Chinese companies performed well all year whether listed in New York, Hong Kong, Shanghai or elsewhere. There are currently 56 Chinese shares listed on the NYSE with a combined market capitalization of over $1 trillion (US dollars).....
Labels: chinese stocks, stock market
December 07, 2009
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).
In related news, the shares of AsiaInfo Holdings (NASDAQ:ASIA) are soaring today on news that it will acquire its chief competitor Linkage Technologies. Linkage, a developer of core operating systems used by China's telecom giants, was set to IPO this week in New York....
Labels: chinese stocks, clean tech, stocks, tech stocks
November 18, 2009
China TV Ad Rates Up 18%
The annual advertising auction of China Central Television (CCTV), the sole national TV network in China (as opposed to the many Provincial-wide TV networks, independent TV broadcasters, and foreign satellite channels), just concluded with a record $1.6 billion (US dollars) in ad buys for 2010. One of the biggest prizes is the ad slot for CCTV's prime time drama hour which was won by Hong Kong listed Mengniu Dairy (HK:2319). Mengniu previously sponsored the hugely popular Super Girl talent contest. Domestic brands won over foreign brands. An interesting look behind the scenes can be found at the Advertising Age website....
Labels: chinese stocks
November 16, 2009
China Offshores Solar Jobs to USA
Chinese solar major Suntech Power Holdings (NYSE:STP) announced today it finally chose a location for its American manufacturing plant - Phoenix, Arizona. The precise location has yet to be determined but it will be somewhere in the greater Phoenix metro area. The state of Oregon was pursuing the plant but Arizona won out with a variety of renewable energy policies and business incentives. Initially the plant will be up to 100,000 square feet and potentially provide work for 250 employees. Suntech plans to have production as soon as third quarter 2010....
Labels: alternative energy, chinese stocks, foreign relations
October 19, 2009
GEM Update
Beijing's securities regulators say the debut of the Growth Enterprise Market or GEM board will be this Friday, October 23. GEM is envisioned as the Chinese NASDAQ or more appropriately similar to London's AIM. If recent deal making is correct (see chart) GEM will initially be dominated by lcoal firms from Shenzhen and ventures out of Beijing....
Labels: chinese stocks, stock market, tech stocks
October 14, 2009
China Leads World in Gene Therapy for Cancer
The USA and Europe are falling behind China in new alternative treatments for cancer particularly gene therapy. In gene therapy a patient's own genes are manipulated and reinserted directly into cancerous tumors as a completely different type of treatment less invasive and debilitating than surgery, chemotherapy, or radiation.
A Chinese company Shenzhen SiBiono GeneTech was the first to develop a gene therapy medicine called Gendicine back in 2003. The company is part of the Benda Pharmaceutical group out of Wuhan. Shares of the company trade on the Over The Counter bulletin board (BPMA:OB). The chart at left (click to enlarge) shows the top Chinese biopharma companies.....
A Chinese company Shenzhen SiBiono GeneTech was the first to develop a gene therapy medicine called Gendicine back in 2003. The company is part of the Benda Pharmaceutical group out of Wuhan. Shares of the company trade on the Over The Counter bulletin board (BPMA:OB). The chart at left (click to enlarge) shows the top Chinese biopharma companies.....
Labels: chinese stocks, high-tech
September 30, 2009
Huayi Bros Media to IPO on GEM
Beijing securities authorities approved a planned IPO of the Huayi Brothers Media Corp. on the new GEM board at ShenZhen. Huayi Brothers, sometimes called the Weinstein brothers of China, hope to raise nearly $100 million for working capital. Huayi today inked a deal with Fox Entertainment to make a romantic comedy called (English translation) "Hot Summer Days." China's film industry is expected to continue its strong growth for years as urban Chinese increasingly go to the movies....
Labels: chinese stocks, foreign investment
September 29, 2009
Give GEM A Chance
ShenZhen Stock Exchange's Growth Enterprise Market or GEM board opens soon and most commenters have already declared it dead on arrival. The new board is meant to be a sort of NASDAQ for Chinese small and medium (SME) size businesses to list shares. The requirements for an initial public offering are far less stringent although Beijing's China Securitites Regulatory Commission will ultimately decide who gets to IPO. Many critics believe GEM won't have much of a chance as previous attempts at such boards in East Asia have fared poorly and China's giant state owned enterprises (SOEs) suck up liquidity and investor appetite.
But let's put GEM in perspective. The dominance of SOEs in Chinese stock markets is not unlike the dominance of chaebol firms in (South) Korean markets and the keiretsu on the Tokyo bourse. Just a little more than decade ago only 3 chaebol - Samsung, Daewood, and LG - dominated Korean stocks and accounted for almost 10% of Korea's GDP. Japanese keiretsu continue to dominate Tokyo. As for previous experience, Tokyo's first attempt at a SME board, the JASDAQ, was a flop listing only 3 companies in as many years. Just 10 years ago Tokyo set up the MOTHERS board (Market of the High Growth & Emerging Stocks) and Hong Kong set up its own GEM board. MOTHERS has fared better but it remains lackluster.
Time will tell if ShenZhen GEM follows the performance of other East Asian SME boards. But the biggest hindrance may come from Chinese stock traders as SME stocks are meant to be held long term not traded on market whims....
Labels: chinese stocks, shenzhen
August 31, 2009
Sinovac Biotech Swine Flu Vaccine Approved
A vaccine for swine flu H1N1 virus developed by Sinovac Biotech was approved by China's drug regulators. Sinovac says it is the first tested swine flu vaccine in the world. Sinovac shares trading on the American Stock Exchange (AMEX: SVA) are up over 40% on the news.....
Labels: chinese stocks
August 18, 2009
Shanghai Surpise?
Hardly. After gaining almost 100% this year (at least in terms of B Shares), the Shanghai Composite has fallen 16% this month including two big drops Monday and last Friday that shocked watchers. The question is though why were so many shocked? Roller coaster rises and dips are to be expected with Shanghai where most of the action is domestic anyway. The top Qualified Foreign Institutional Investors that are allowed to own and trade domestic Shanghai shares - the bulk of the market - have invested around $11 billion only in an exchange valued in the trillion$. Many analysts now believe Shanghai will sink again. If so I think the Shanghai Composite could settle back to the 2K to 3K range. Overall though, not good news for the global economy....
Labels: chinese stocks, shanghai composite
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