huangthomas

New Labor Laws in China Could Hinder Investors' Profit Potential

The intent of the labor contract law is noble and the Chinese workers deserve it after 30 years of backbreaking labor. It is intended to shift from labor intensive industries to high value added, technology and knowledge-based industries. The Pearl River delta is designated region for this shift and the labor contract law is more strictly enforced. In other areas, the law is more loosely applied especially when unemployment become a more serious problem.

Where Are the Chinese Stock-Market Riots?

Yes, real estate market will do worse when the bank reserve rate is hiked to 17.5%. Do you need a car? Buy a house, they will give you a car free!

Where Are the Chinese Stock-Market Riots?

On June 12, the Shanghai Stock Exchange closed at 2,957.53, down 66.71 (-2.21%). With IPO of China Construction pending, the market may become uglier before policy intervention sets in.

The Power of the Market: 600 Million People in China Lifted Out of Poverty Since 1981

When China joined WTO in 2001, she admit that China is not a free market economy but promised to become one by 2016. Instead of honestly reform the market, China is resorting to their favorite tactic of arm-twisting other countries to "accept" China as a "Market economy". Poor African countries were first to fall in line. The latest one to join the club is Switzerland under some dubious circumstances. But America and European Union still refuse to recognize China as "a free market economy". All the exports are subsidized one way or another. Then how in the world someone in the US will declare China as "a free market capitalism"?

The Power of the Market: 600 Million People in China Lifted Out of Poverty Since 1981

"Free market capitalism"!!! What a joke! China has a "market", but it is controlled and manipulated by communist party. It is definitely not "free". The communist party never denied their control of the market and they are very proud of it. Who are getting rich and super-rich? Not an average Chinese. In China, income distributions (inequality) is worse than any Latin American countries.

The Power of the Market: 600 Million People in China Lifted Out of Poverty Since 1981

In the United States, poverty line is defined as income less than $8,000 for a family of 3 living in 48 contiguous states. China uses definition of United Nations, which defined poverty as living on less than $1.25 a day, $456 a year. Even adjusted for PPP (purchasing power parity), it is equivalent to $900.00 per year. To most people, that level of income is "misery" level income. Now Chinese have elevated themselves from "misery" to "poverty". Yet, 14% of Chinese still live in "misery" level. Chinese are improving their living standard, but let's be realistic.

China's Worst Bear Market

April 24, the first day of lowering of stamp tax, in the first 10 min. of trading, Shanghai stock exchange index jump 6.85% to 3,494. It is a policy-driven market and government's intention is clear. Don't short Chinese market until after Olympic game in August.

China's Worst Bear Market

FXI and FXP are plays on Hong kong H-share market. H-share market does not trend with Shanghai A-share market, dropped 50% from last year's high to now. Chinese markets have at least 3 markets: Chinese A-share market (also B-share market), Hong kong H-share market, and New York ADR market. Valuations of share price are different, with Hong kong market being closer to New York market. FXI bounced back strongly today and holders of FXP can really get hurt.

China's Worst Bear Market

Information on Stamp tax reduction from 3 to 1%, please go to ce.cn (in Chinese). This is about the right time to revitalize Shanghai market to celebrate Beijing Olympic game on August 8.

China's Worst Bear Market

Just released in Chinese if you read Chinese. The stamp tax of stock transaction will be lowered from 3 to 1% on April 24. Two days ago, Chinese SEC clamp down on floating more shares onto the market. Any large block share owners (DaFei) require SEC approval if they are going to float more than 1% of the company stocks. Shanghai market seems to be responding and the Shanghai stock index bounce back 6% from 3,094.33, which could be near term bottom. American market is also responding to the news this morning.

Chinese Investors' Casino Mentality May Make Sense Given the Alternatives

WW II started in China in 1937, not 1941. After the war, civil war and communist (Mao) rule followed. The modern day stock market in China officially open in early 1991. During the 54-year lapse, at least two generations of Chinese grew up never heard of stocks or stock market, not to mention "investment". The newly opened stock markets (Shanghai and Shenzhen) are replay of the wild west. Pump and dump scheme, investment clubs, insider trading, rumors, and ........ The market is government policy-driven. Lessor official related to policy making are the major souces of insider trading. If I were to invest in that market, I would play it like a casino too.

China Now Officially in Bear Mode

This is a Chinese way of looking at the Chinese market: It is not a real bear. The government whipped the market down. It increases bank reserve for the nth times to 13.5%, prohibit bank lending, no new mutual funds,.......you name it. It is the weight of the government which wear down the bull. They succeeded in preventing a bubble, don't they? But, it is still a bull. When are they going to lift the weight? You guess it right! 2008 Olympic game. The bull will jump over 6,000 (Shanghai Stock Exchange index). When it comes to analyzing Chinese market, technical analysis only help a little. Try to analyze Chinese official mentality.