News
5/25/2007

Looser China Fiscal Policy Urged __Wall Street Journal
China should loosen fiscal policy to support domestic demand and offset this stimulus by tightening monetary policy through a greater focus on currency appreciation rather than administrative measures, the Organization for Economic Cooperation and Development said Thursday.

FDA Blocks Imports Of Chinese Toothpaste __Wall Street Journal
The FDA will block shipments of all Chinese toothpaste to the U.S. after a potentially toxic chemical was found in toothpaste exported to Panama and elsewhere.

Greenspan Remarks Pressure China__Wall Street Journal
Asian-Pacific shares ended mostly lower Thursday with shares in China losing ground after former Federal Reserve Chairman Alan Greenspan said he feared a "dramatic contraction" in the Chinese stock market.

Shenzhen Development Raises Its Offer to Holders__Wall Street Journal
Shenzhen Development Bank Co. improved the compensation package it is offering holders of its tradable Class A shares for the third time, in a bid to remove a key barrier to accessing the country's capital market.

Beijing approval for asset manager just the start__Financial Times
When China Merchants Bank this week received permission to acquire a stake in a mainland fund management joint-venture, Anthony Fasso must have breathed a sigh of relief.

Investment banks eye open door with caution__Financial Times
Overseas investment banks have reacted coolly to Chinese promises to further open its financial sector, amid widespread scepticism that foreigners will gain speedy access to the country’s booming stock market.

Asia explores ‘innovative’ approach to reserves__Financial Times
China’s unprecedented $3bn investment in Blackstone, the US buy-out fund, is the beginning of a trend that will see Asian countries take a more “innovative” approach to investing their foreign exchange reserves.

China stocks fall on government warning__Financial Times
Chinese stocks fell after the government urged investors and securities brokerages to raise the level of ”investor education” as it renewed efforts to calm enthusiasm for equities.



5/24/2007

Chinese Investors Crunching Numbers Are Glad to See 8s__Wall Street Journal
Part superstition and part self-fulfilling prophecy, numerology is a basic stock-trading strategy in China -- and helps explain why Beijing has been unable to temper enthusiasm in the stock market through conventional measures.

Xinhua's Chinese Puzzle__Wall Street Journal
S&P and Moody's are reviewing their debt ratings for Xinhua Finance, amid a shareholder suit against the firm.

Congress Fumes As China Talks Show Few Gains__Wall Street Journal
Economic talks with China ended with only a short list of results, including new air routes between the U.S. and China. Paulson failed to secure a pact to combat copyright piracy or win concessions on the yuan.

Goldman Takes 'Private' Equity To a New Level__Wall Street Journal
Goldman Sachs is creating its own private system to trade the stocks of companies that don't want the scrutiny and regulatory burdens of going public.

China stocks fall on government warning__Financial Times
Chinese stocks fell after the government urged investors and securities brokerages to raise the level of ”investor education” as it renewed efforts to calm enthusiasm for equities.

Lenovo’s profits rise in first sign of PC turnround__Financial Times
Lenovo said net profit rocketed for the full year, in the first sign that the Chinese computer group has begun to turn round the PC unit it acquired from IBM two years ago.

Murdoch denies bowing to Beijing__Financial Times
Rupert Murdoch, New Corp’s chief executive, defended himself against accusations that he had allowed political pressure from the Chinese government to influence his business decisions.

Beijing cracks down on insider trading__Financial Times
China’s stock market regulator said it had fined the former deputy head of a cement-maker for insider trading in the company’s shares, one of the first such sanctions in China’s nascent capital market.


5/23/2007

China Solar Stocks Shine in U.S., But Some Could Be Overheated __Wall Street Journal
Chinese solar-power companies are flocking to U.S. markets, offering investors a new way into one of the fastest-growing corners of the renewable-energy industry.

China Eases Real-Name Blog Effort__Wall Street Journal
China has confirmed it will back down from a campaign to require citizens to register their real names before they can start blogging, after sharp protests from industry players caused the government to rethink the policy.

China Netcom Seeks Listing, 3G Licensing on Mainland__Wall Street Journal
China Netcom Group Corp. (Hong Kong) Ltd. is interested in listing shares in mainland China, and hopes to gain entry into the nation's third-generation mobile market through a potential restructuring of telecommunications operators.

Beijing Cites Risks Posed to Economy__Wall Street Journal
A study by China's statistics bureau warned the economy "is at risk of going from rapid growth to overheating" and called for further tightening to address excessive liquidity.

US ‘impatient’ at pace of China talks__Financial Times
Washington is growing impatient at the pace of progress in economic talks with China, Hank Paulson, US Treasury secretary, warned, as a ­second round of high-level bilateral meetings began.

China’s day-traders look for ‘black horses’__Financial Times
Chinese have combined a traditional delight in word-play with their new-found passion for stocks to create a rich supply of colloquial jargon for investing that is bandied around brokerage offices.

Big US unions court Chinese counterparts __Financial Times
The leaders of the first US union federation to visit China said they had formed a tentative partnership with the country’s sole legal labour body in an effort to raise the standards of workers in both countries.


5/22/2007

China's Bubble Is Defying Beijing__Wall Street Journal
The Shanghai stock index climbed 1% to a record 4072.23, up 52% this year, as Chinese markets ignored a rate increase.

China Urged To Improve Safety Effort __Wall Street Journal
Western consumer-safety experts urged China to improve cooperation with trade partners to curb product recalls as it faces sharp criticism for tainted food and drug exports.

China Launches Executive Search __Wall Street Journal
China is launching a global search for top managers as part of a drive to bring in more international expertise. The Assets Supervision and Administration Commission, which oversees 160 state enterprises, said it was looking for nine vice presidents, seven chief accountants and six legal consultants for 22 big state enterprises.

Latest Trend in Big Buyouts: Blend of Public, Private Traits__Wall Street Journal
Taking companies private is yesterday's news. Wall Street's latest innovation is refashioning them into private-ish or public-esque hybrids of their former selves.

China Seeks Bigger Bang For Its Bucks__Wall Street Journal
The key thing to take away from the Chinese government's plan to take a $3 billion stake in private-equity firm Blackstone Group: If you're paying for the fuel, you might as well get some of the heat.

China Eastern halted amid stake sale talks__Financial Times
Shares in Singapore Airlines and China Eastern Airlines were suspended Tuesday pending an announcement expected to include details of an SIA investment in the Chinese carrier.

US pressure grows for China progress__Financial Times
Top US and Chinese government officials meet in Washington for the second strategic economic dialogue between the two countries. Rising pressure to demonstrate economic engagement.


5/21/2007

Beijing May Calm Stocks With Steps, Not Spur Yuan__Wall Street Journal
China's central bank raised rates and widened the yuan's trading band, but the moves did little to appease critics ahead of talks in Washington.

China Puts Cash To Work in Deal With Blackstone__Wall Street Journal
China would invest $3 billion in Blackstone. The landmark deal signals China's determination to earn higher returns on its reserves and gives Blackstone a potential advantage in doing deals in China.

China Pledges Investor Protection__Wall Street Journal
China's futures companies and exchanges will be required to set aside money to fund plans for an investor insurance program, state-run newspapers reported Friday.

Daimler Sells China Bus Stake, Clearing Roadblock to Venture__Wall Street Journal
DaimlerChrysler AG has sold its entire 50% stake in Chinese bus maker Yaxing Benz Ltd. for an undisclosed sum, clearing a major obstacle to the U.S.-German auto maker's plan to set up a truck-manufacturing joint venture in China.

China Policies Seen Buoying Metals Prices__Wall Street Journal
The move by China's central bank to rein in the country's overheating economy through broad tightening of monetary policy should help to sustain growth over the long term and therefore support future metals demand, analysts say.

Shanghai agency seen playing the market__Financial Times
A municipal group responsible for clearing drains and lift maintenance has emerged as a leading shareholder in at least three listed companies with holdings worth about $100m.

HK poised to relax hedge fund policy__Financial Times
The Hong Kong securities regulator is poised to relax an important licensing requirement for international hedge fund managers in a move to help fend off challenges from competitors.

China seeks to end ban on tiger sales__Financial Times
China is pressing to be allowed to lift its ban on the domestic sale of tiger parts ahead of an international conference on endangered species next month.


5/18/2007

Chinese Venture Interests Merrill__Wall Street Journal
Merrill Lynch & Co. said it remains interested in creating a joint venture with a Chinese investment bank and expects the regulatory freeze on such tie-ups to be lifted by August.

Li Ka-Shing Considers China Mainland Listing __Wall Street Journal
Billionaire investor Li Ka-shing, chairman of Hutchison Whampoa Ltd. and affiliate Cheung Kong (Holdings) Ltd., said he would consider listing the group in mainland China, but also warned that the Chinese market was overheated.

China Continues To Show Steep Rise In Investment __Wall Street Journal
China said urban fixed-asset investment continued to grow strongly in the first four months of the year, strengthening the case for another interest-rate increase to cool the economy.

China's Chery Plans Car Venture With Israeli Firm __Wall Street Journal
Chery Automobile plans to set up a car-manufacturing joint venture with Quantum, a U.S. unit of Tel Aviv-listed holding company Israel Corp.

Big banks shift focus to China’s smaller companies__Financial Times
The story of Bosideng, China’s largest winter jackets producer, highlights the expansion of private companies in China, a trend that is forcing global investment banks to adapt their business models.

China resists pressure from US brokers__Financial Times
China is resisting mounting pressure from the US banking industry for a speedy and substantial opening of its domestic brokerage industry.

Foreign banks grapple with brokerage rules__Financial Times
News that turnover of stocks traded on the mainland exchanges last week hit $49bn on a single day – more than the rest of Asia combined – was greeted with weary resignation by foreign investment banks.

Elusive forces drive Chinese stock boom__Financial Times
While the number of retail investors skyrockets, they do not represent the real power behind the market.


5/17/2007

JPMorgan fires China fund manager__Financial Times
JPMorgan’s China asset management joint venture said it had fired senior fund manager Tang Jian because of an official investigation of him over stock trades.

LVMH soaks up Wenjun stake__Financial Times
Not content with exporting Dom Pérignon champagne, Hennessy cognac and Glenmorangie whisky to China’s elite, France’s LVMH has taken a majority stake in Wenjun, a Chinese distillery.

Shenzhen bank revamps reform pay-outs__Financial Times
Shenzhen Development Bank offer shareholders a pay-out that would allow it to carry out compulsory share reforms and resume expansion in the competitive mainland market.

Bosideng joins HK listing rush__Financial Times
Bosideng, China’s largest producer of branded winter jackets, hopes to raise $500m later this year in a Hong Kong listing designed to tap unprecedented investor demand for stocks focused on mainland consumer spending.

Shenzhen Bank Plans Fully Tradable Stock__Wall Street Journal
Shenzhen Development Bank unveiled a proposal to make tradable the roughly 28% of its stock that is still nontradable.

Why China Relaxed Blogger Crackdown__Wall Street Journal
The Chinese government, which spent months mulling over ways to crack down on bloggers, is retreating from its campaign, a development that illustrates the difficulty China faces as it tries to control technology.

Chinese Regulator Lays Out Rural-Bank Overhaul__Wall Street Journal
As chairman of the China Banking Regulatory Commission, Liu Mingkang keeps watch over one of the biggest banking industries in the world.  Among the toughest tasks he faces is helping retool the often inefficient and ineffective banking system in China's countryside -- home to well over half the population.

5/16/2007

U.S., China Aren't Betting On Trade-Talks Breakthrough __Wall Street Journal
U.S.-China economic talks are expected to yield progress on aviation, energy-technology trade and U.S. financial-service firms' access to the Chinese market.

Software Piracy Rate Falls In China for a Third Year__Wall Street Journal
Software piracy in China fell to 82% of software in use last year from 86% in 2005, an industry group estimates.

China Tumbles on Warning __Wall Street Journal
Chinese shares posted their worst performance in a month on increasing worry about potential regulatory action to dampen China's stock market.

Teamsters' Hoffa to Visit China in Sign of New View__Wall Street Journal
Teamsters President James Hoffa will visit China, a sign of a growing willingness among American labor groups to engage with China's state-sanctioned trade federation.

Fidelity cuts stake in PetroChina by 91%__Financial Times
The activists targeting large investors in listed companies with interests in Sudan appear to have secured their first significant victory with the sale by Fidelity Investments of most of its US holdings in PetroChina.

Vincent Lo to float Chinese fund on Aim__Financial Times
Vincent Lo, one of the best-known tycoons in Asian real estate, has chosen London’s junior Aim market to list China Central Properties, his fund that targets distressed assets across China.

Mellon in China deal with Southern__Financial Times
Mellon Financial is expected to form a partnership with Southern Fund Management, one of China’s biggest fund houses, in a move that would give the US group a head start in the race to attract Chinese overseas investments.



5/15/2007

Beijing Spurs On Hang Seng__Wall Street Journal
Hong Kong stocks jumped to a record close after the Chinese government said it will allow approved mainland banks to invest in overseas stocks for the first time, highlighting how closely Hong Kong's stock market tracks China's policy moves.

Private Equity Seeks IPO Exits__Wall Street Journal
Call it a byproduct of the buyout boom: A growing number of companies owned by private-equity firms are preparing to go public as their owners tap into a strengthening market for initial public offerings.

China's Consumer Prices Rise 3%, Led by Food Costs__Wall Street Journal
China's April inflation rate was milder than expected, but economists still expect the government to implement more tightening measures to slow economic growth.

BoCom soars 70% in Shanghai debut__Financial Times
The fervour for new listings in mainland China continued when shares in Bank of Communications surged 71 per cent in their Shanghai debut despite continued warnings about the risk of a stockmarket bubble.

China Eastern seeks advice on equity sale__Financial Times
China Eastern Airlines said it was seeking government advice over the long-awaited sale of a stake to strategic investors including Singapore Airlines.

China steps up insider trading crackdown__Financial Times
Chinese regulators fined a construction company for violating stock market disclosure rules following warnings that efforts to clamp down on insider trading would be “strengthened”.


5/14/2007

China to Allow Banks to Offer Overseas Equity Exposure__Wall Street Journal
China is allowing approved banks to offer Chinese clients exposure to overseas stocks and structured equity products, widening the scope of a program aimed at boosting capital outflows that has been largely shunned by local investors.

China Targets Insider Trading__Wall Street Journal
China's securities regulator said Saturday it will increase efforts to clamp down on growing insider trading and stock-price manipulation, as the country's surging Class A share market lures many retail investors.

Buyout Firm Close to Winning Chrysler Bidding__Wall Street Journal
DaimlerChrysler is expected to announce a deal to sell a controlling stake in Chrysler to Cerberus. The proposed deal would allow the German auto maker to shed $18 billion in retirement and health-care liabilities.

Gome raised $837.6 million__Wall Street Journal
China's Gome raised $837.6 million from a sale of shares and convertible bonds, partly to fund the retailer's expansion.

HK’s China stocks hit record high on QDII__Financial Times
Stocks of Chinese mainland companies listed in Hong Kong surged 5 per cent to a record high after China allowed banking clients to access overseas stock markets for the first time.



5/11/2007

China Uses Buying Power To Pave Way for U.S. Visit __Wall Street Journal
China agreed to buy U.S. technology valued at over $4 billion as part of an expected spending spree on American goods ahead of a visit by top Chinese officials to Washington this month.

SEC to Lift Veil on Clubby Hong Kong__Wall Street Journal
SEC investigators will have to grapple with the freewheeling and clubby nature of capitalism in Hong Kong as they look into alleged insider trading in shares of Dow Jones.

Beijing Indicates More Tightening May Be in Works__Wall Street Journal
China said a surge of fund inflows raise the risk of an asset bubble and it indicated that further policy tightening is likely.

CBOT Weighs Options__Wall Street Journal
Chicago Board of Trade owner CBOT Holdings Inc. has an agreement to merge with its crosstown rival. However, the country's oldest futures exchange has been weighing another offer and is expected to make a decision soon that the market believes will lead it to the other suitor.

Chinese listings influx begins__Financial Times
The number of Chinese companies selling shares in New York and London is set for a big jump this year, in spite of tighter offshore listing regulations introduced by the communist government in Beijing.

China’s trade surplus rebounds in April__Financial Times
China’s trade surplus rebounded in April after a surprising slump the month before, handing new ammunition to US critics who say Beijing is keeping the renminbi unfairly undervalued.

Chinese stocks retreat on tightening fears__Financial Times
China’s stock market fell 0.7 per cent on fears the country’s raging bull market could be headed for a government-induced correction.



5/10/2007

Insider Trading Alleged in Shares Of Dow Jones__Wall Street Journal
The SEC charged a Hong Kong couple with using inside information to buy $15 million in Dow Jones stock before News Corp.'s bid became public. One connection the SEC is expected to pursue involves Dow Jones director David Li.

China's Key Index Ends Above 4000__Wall Street Journal
Shanghai shares ended above the key 4000 level for the first time, amid a strong demand for blue-chip stocks that outweighed profit-taking pressure. Markets in Japan and Hong Kong also closed higher.

China Vows Crackdown On Food-Industry Offenses__Wall Street Journal
China said it will crack down on dangerous domestic food-industry practices, in its first top-level policy response to a storm over tainted pet food in the U.S. But the plan lacks specifics, indicating that its impact could be limited.

SEC to Lift Veil on Clubby Hong Kong__Wall Street Journal
SEC investigators will have to grapple with the freewheeling and clubby nature of capitalism in Hong Kong as they look into alleged insider trading in shares of Dow Jones.

Danone takes legal action over China partner__Financial Times
Danone, the French yoghurt and mineral water producer, said it had taken the first step in carrying out legal action against its main joint venture partner in China.

China LNG deal hints at easing of price limits __Financial Times
A Chinese company has announced that it has made the country’s first ever purchase of liquefied natural gas on the spot market in a sign that rising local demand may force Beijing to change its pricing policies.


5/9/2007

China Mobile's CEO Trolls Asia for Acquisitions__Wall Street Journal
China Mobile Communications is looking for acquisitions in Asia outside China, but high valuations for telecom assets make this a hard time to buy. Its China Mobile unit, with more than 315 million subscribers, is still growing quickly at home.

What China 4000 Means__Wall Street Journal
The Shanghai Composite Index stands just shy of the psychologically important 4000-point level, the latest crossroads for a surging market that has come to symbolize fears of economic overheating in China.

Will China Emerge as a Global Landlord?__Wall Street Journal
European and U.S. investors have recently been channeling money into Chinese real estate. Now, property-market executives are increasingly expecting China to return the favor.

Morgan Hires China Economist __Wall Street Journal
Morgan Stanley said it has hired Qing Wang as its chief Greater China economist, filling the role held by Andy Xie, who left in September following the leaking of an email that criticized Singapore.

Clampdown on property excess repels investors__Financial Times
Recent attempts by Beijing to rein in runaway property development in China are creating a host of unintended problems for local and foreign-invested property companies.

High stakes in a lottery frenzy__Financial Times
Foreign groups are linking with China’s welfare and sports authorities to gain a share of the country’s expanding gambling cake.


5/8/2007

China's Latest Global Push: Oil-Field Services__Wall Street Journal
China aims to become a global powerhouse in auto making, aerospace and other sophisticated industries. Its latest push: the lucrative business of providing equipment and know-how in the oil patch.

China Toils Over New Labor Law__Wall Street Journal
China is putting the final touches on its most significant overhaul of workplace regulation in a decade, in an unusual process that has sparked debate on the trade-off between economic growth and worker protection.

‘Time is of the essence’ for China reform__Financial Times
Hank Paulson is seeking to prepare public opinion for the next round of top-level economic talks between the US and China in Washington later this month.

Shortage raises workers’ stock__Financial Times
The discussions over a new labour law in China come at a time when many companies face rising costs as official minimum wages soar and labour shortages persist.

PetroChina shares spurt on oil find__Financial Times
Shares in PetroChina, the overseas-listed unit of China’s largest energy company, surged on confirmation of one of the world’s largest oil and gas discoveries of recent times in shallow waters in Bohai Bay near the port city of Tianjin.

China more assertive in climate talks__Financial Times
Beijing has begun to adopt a more assertive role in global climate change talks to head off development of a regime it fears could force it to scale back its economy.



5/1/2007

China's Alibaba Plans IPO for Core Unit __Wall Street Journal
Chinese Internet firm Alibaba plans to take its business-to-business unit public in an IPO that could raise some $800 million.

Singapore's UOB To Acquire Stake In Chinese Bank__Wall Street Journal
United Overseas Bank said it plans to take a strategic stake in China's Evergrowing Bank, its latest move to tap the rising affluence in Asia's emerging economies.

China Sets Plan for Export Permits__Wall Street Journal
China stepped up efforts to slow its fast-growing economy by requiring licenses to export certain steel products.

Chalco Stock Price Jumps In Shanghai Trade Debut__Wall Street Journal
Aluminum Corp. of China Ltd. soared in its first day of trading yesterday in Shanghai, reflecting strong investor interest in the world's second-largest alumina producer. But analysts said that shares of the company, better known as Chalco, may fall in the coming sessions because the stock is already highly priced.

Shanghai stock exchange courts HSBC__Financial Times
The Shanghai stock exchange is courting HSBC and other high-profile foreign companies to list their shares in mainland China, as part of its strategy to revive the recently moribund bourse.

Chinese demand puts a strain on timber__Financial Times
China’s voracious appetite for commodities ranging is now lighting a fire in a new sector – timber. Businesses dealing in wood in Europe say the cost of timber is soaring.