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PowerShares Golden Dragon China Portfolio ETF (PGJ)

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  • Mar. 29, 2012, 8:12 AM
    Chinese shopping mall developer Renhe has its credit rating cut to B with negative Creditwatch, by S&P. "Property sales and liquidity could weaken significantly more than expected," says the agency. "Canary in a coal mine," asks the Bond Vigilantes, noting the firm's bonds are off 15% and stock down 35% this week.
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  • Mar. 29, 2012, 7:50 AM
    In case anybody hasn't noticed - after a powerful start in 2012 - shares in Shanghai near correction status after another fall (1.4%) last night, bringing the decline in the A share index to 9.3% in a month. Predictably, analyst calls for Beijing to step in with a big policy easing are growing louder.
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  • Mar. 28, 2012, 6:54 PM
    As China's economy cools down, the "old trick" of having state-run banks finance massive investments is no longer working, says China expert Patrick Chovaneck. Meanwhile, a bursting of China's housing bubble will take a toll on overleveraged property developers, and export growth isn't what it used to be. A major shift in GDP composition from investment to consumption might be needed to stave off a "hard landing."
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  • Mar. 28, 2012, 1:30 PM
    Beijing may be ready to approve (after nixing it last year) a plan by the city of Wenzhou to allow its residents to directly invest funds offshore. Such a move would be a significant step in opening up the country's capital account, currently tightly controlled by authorities to manage the yuan's value and prevent speculative flows. (previous)
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  • Mar. 28, 2012, 9:35 AM
    Beijing approves reforms for the entrepreneurial hub of Wenzhou which hope to formalize the city's underground lending practices (shift profits from households and the mob to the banks!). Wenzhou suffered a credit crunch last year, with many business owners fleeing instead of facing the chance of broken kneecaps. (the saga)
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  • Mar. 28, 2012, 8:12 AM
    A slowdown in growth hits profits at the world's busiest container port, Shanghai International Port Group reporting a 12.8% Y/Y decline in profit for 2011. Container throughput grew "only" 9.2% last year and is expected to grow just 3.9% in 2012.
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  • Mar. 28, 2012, 8:01 AM
    Profit estimates for Chinese firms remain "far too optimistic," says SocGen, seizing on the report that Y/Y industrial profits shrank in the year's first 2 months. Among the losers in Shanghai's 2.7% plunge last night: Alum. Corp. of China (ACH) -5.8% and Jiangxi Copper JIXAY.PK) -5.5%. FXI -0.3% premarket.
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  • Mar. 27, 2012, 6:59 AM
    Profits at Chinese industrial companies fell 5.2% Y/Y through the first 2 months of the year, reports the statistics bureau. "Clearly alarming," says economist Chang Jian, of the first drop since 2009. He expects only "measured" policy ease by a government still concerned about perky property. Shanghai fails to participate in the global stock rally, -0.2%.
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  • Mar. 26, 2012, 9:24 AM
    As concerns about a Chinese slowdown mount, the country's rising wages also have foreign investors on edge. Double-digit annual wage growth is now a fact of life for many firms, and consulting firm InterChina believes China's wages will surpass Mexico's in 5 years. Making matters worse are very high turnover rates, as workers prove happy to jump ship upon seeing a slightly better offer. (also)
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  • Mar. 24, 2012, 4:51 PM
    Barron's Alan Abelson says China's showing unmistakable signs of economic fatigue. He joins JPMorgan's chief Asian strategist, Adrian Mowat, who is very concerned about the Chinese property market, and finds no evidence of policy moves that might reaccelerate the economy.
  • Mar. 23, 2012, 12:18 PM
    The PBOC is creating credit ratings for local governments as they prepare to enter the previously prohibited municipal bond market. Curious is the hope bond issuance - as opposed to bank loans - will improve the debt situation. Call if a bond or call it a loan - either way it ends up as a liability for the local government and an asset on banks' books.
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  • Mar. 23, 2012, 11:59 AM
    The risks to China's banks from local government loans are greater than thought as the country's banking regulator finds about 20% of loans have been misclassified as fully covered by cash flows. Properly accounting for them will mean lenders have to set aside greater reserves as well as demand more collateral from strapped governments.
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  • Mar. 22, 2012, 11:12 AM
    While China's weak PMI number may be the spark that started today's sell off, shares in Shanghai and Hong Kong, ended last night flat to positive. Both markets have already suffered declines of about 5% in the last month on top of more significant drops in 2011. Perhaps the washout in shares has already occurred, says Doug Kass.
  • Mar. 22, 2012, 7:15 AM
    More on the weak China HSBC PMI: HSBC economist Hongbin Qu - who typically tries to spin a positive message from these reports - sounds gloomy. "Worryingly, employment recorded a new low from March 2009 ... external demand ... decline(d) at a slower pace, implying no improvements in the (domestic) demand outlook." (full report)
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  • Mar. 21, 2012, 10:31 PM
    HSBC's flash estimate of China's PMI: 48.1, vs. last month's 49.7 - a regression from already contractionary territory. The Aussie dollar sinks, now -0.26% against the dollar.
  • Mar. 20, 2012, 11:18 AM
    "There's a changed psychology among buyers," says Patrick Chovanec, waving off the myth that Beijing can flip a switch and get the country's property market booming again. He's also skeptical a building boom from affordable housing will save the day, saying the money to finance this isn't readily available.
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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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