China news / analysis in brief

Details:

• JPMorgan Chase (ticker: JPM) said it believes China has already approved plans to revalue the yuan. While the timing remains uncertain, the move will likely come in Q3 2005 in the form of a widening of the trading band by 2-3%. JPM also expects an effective revaluation of 10% over the coming year.

• Rumors are circulating about the reason for Google (ticker: GOOG) CEO Eric Schmidt's visit to Beijing last week. There have been reports that Google is interested in acquiring Chinese search engine Baidu.

• The Halter USX China Index has added Tiens Biotech (ticker: TBV) and China Energy Savings Technology (ticker: CESV). Investors can buy the index by acquiring shares of an ETF called Powershares Golden Dragon Halter USX China Portfolio (ticker: PGJ).

• China Unicom (ticker: CHU) will abandon handset subsidies in order to cut operating costs and achieve profitability. It will also launch low-end handsets to lure more low-end CDMA phone subscribers.

• Chevron (ticker: CVX) and China's CNOOC (ticker: CEO) might consider splitting Unocal's (ticker: UCL) assets in order to avoid a bidding war.

• Dolby Laboratories (ticker: DLB) announced that the Shanghai Media Entertainment Group selected Dolby Digital for the first channel in China's television broadcasting history to offer 5.1
  surround sound.
  

• Home Depot (ticker: HD) is interested in buying a stake in China's Orient Home in order to gain a presence in the mainland's home improvement market.

• China added 5.33 million new broadband Internet users from January to May 2005. At the end of May, China had 30.18 million broadband Internet users.

• Intel has established a $200-million venture capital fund to invest in Chinese technology companies developing innovative hardware, software and services. The fund will focus on cellular communications, broadband applications for consumers, and semiconductor design.