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PowerShares Golden Dragon China Portfolio ETF (PGJ)

  • Feb. 9, 2012, 2:02 AM
    China's consumer prices rose 4.5% in January from a year earlier, vs. expectations of +4%, though the figure is somewhat distorted because of a week-long holiday. The unexpected acceleration in inflation puts pressure on officials to hold back on any immediate additional cut in banks’ reserve requirements.
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  • Feb. 8, 2012, 9:32 AM
    Attributing the sharp drop (7.5% Y/Y) in January power consumption in China to the New Year, seems a stretch, say Nomura analysts. It's the first decline outside of an outright crisis on record, an "alarming fall" that signals a concurring drop in industrial production.
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  • Feb. 6, 2012, 8:24 AM
    Given Beijing's belief 8% growth is the minimum necessary to stave of social instability, the IMF urges China to have a "significant fiscal package" at the ready after cutting ts GDP growth forecast for the country to 8.2% from 9%, and opining the number could fall to near 4% should Europe tip the world economy into recession. (full report)
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  • Feb. 6, 2012, 6:50 AM
    Noruma economist Rob Subbaraman tips off that although the China Stress Index still points to a 1-in-3 chance for a hard landing, his firm thinks it's less likely to happen. "Overall, the unwillingness to ease macro policies aggressively despite slowing GDP growth seems to be starting to pay dividends in lessening longer-term macro risks."
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  • Feb. 6, 2012, 5:04 AM
    As if to underline Wen Jiabao's exhortations to his countrymen that China needs to help the EU, the IMF warns its growth could be half of the fund's 8.2% projection for this year should Europe’s debt crisis worsen. "However, a track record of fiscal discipline has given China ample room to respond," the IMF says.
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  • Feb. 3, 2012, 9:44 AM
    China's January services PMI slides to 52.9 from 56.0 previously, led by the property industry, where activity slipped to 38.1 and new orders to 35.7. Overall, new orders came in at 48.5.
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  • Feb. 2, 2012, 5:51 AM
    Downward risks lie ahead for China, and growth could hit a trough in Q2 according to a top government think tank. The group suggests China cut taxes and slash bank reserve requirements to support growth.
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  • Feb. 1, 2012, 4:08 AM
    China's official PMI 50.5 in Jan. vs. 50.3 in Dec., indicating expansion and beating expectations for a contraction. HSBC PMI (.pdf) 48.8 in Jan., broadly in line with its flash reading. The official figure supports hopes China will avoid a hard landing, but HSBC said its survey "confirmed the still weak growth momentum of manufacturing."
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  • Jan. 31, 2012, 4:04 PM
    China's Communications Construction, the country's largest port builder, cuts its IPO by 75% to $790M, a victim of a weak market. Choosing to go forth with the IPO despite adverse conditions suggests the company is desperate for cash, making the offering even more unattractive, says an analyst.
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  • Jan. 31, 2012, 7:00 AM
    Chinese shares complete their best January in 3 years, the Shanghai Composite +4.2% for the month. The surge follows a 22% decline for the index last year. Perhaps the most significant news is the government's aim to direct more of the country's savings into the stock market.
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  • Jan. 30, 2012, 2:31 AM
    China’s debt is "generally safe and controllable," Chinese Premier Wen Jiabao said in comments released today, a sharp contrast to a weekend report by the National Audit Office which warned of “unignorable” risks in some areas and which said China’s economy isn’t yet balanced, coordinated or sustainable.
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  • Jan. 29, 2012, 4:46 AM
    China's national auditor yesterday reportedly warned of "unignorable" potential risks in various areas, including in those of fiscal, financial and state assets management. Earlier this month, the auditor said it found billions of dollars worth of infractions and misappropriations by local-government financing vehicles.
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  • Jan. 24, 2012, 9:38 AM
    More on Dupont (DD) earnings: While revenue grew smartly in the U.S. and Canada, and not surprisingly fell in Europe, the company reported sales volume sliding 23% Y/Y in the Asia-Pacific region. "Chinese soft landing," asks Mike Bergen.
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  • Jan. 22, 2012, 8:38 AM
    "It seems clear to us the government doesn't want the stock market to fall any further," writes Global Macro Monitor. After falling 31% from last April's high, Shanghai has bounced 8.7% in 2 weeks amidst regulators' moves (i, ii) to direct more money into Chinese shares. One popular ETF: FXI +10.9% YTD. Reminder: Markets are closed this week for the New Year holiday.
  • Jan. 20, 2012, 2:37 PM
    Nouriel Roubini sees a "significant" slowdown in store for China - calling for GDP to fall below 8% if the government doesn't add stimulus measures. If that happens, he says the government will be forced to further reduce its reserve requirement and lower interest rates to help turn the economy around.
  • Jan. 20, 2012, 1:13 PM
    The revenues of China's state-owned enterprises rose 21% in 2011 to $3.2T (43% of GDP), while profits rose 12.8%. Of most interest is the sharp rise in profits in December, immediately following the surprise easing in monetary policy. One analyst speaks of a "noticeable" rush of cash into the economy following the move.
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PGJ Description
The PowerShares Golden Dragon China Portfolio (Fund) is based on the Halter USX China Index (Index). The Fund will normally invest at least 90% of its total assets in equity securities that comprise the Index. The Index is comprised of the U.S.-listed securities of companies that derive a majority of their revenue from the People's Republic of China. The Index is designed to provide insight and access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S.-listed securities. The Fund is rebalanced and reconstituted quarterly.
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Country: China
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