China Stocks News and Analysis from Seeking Alpha 'China' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/sector/china-stocks China's Plan for Economic Conquest http://seekingalpha.com/article/187502-china-s-plan-for-economic-conquest?source=feed 187502 China is a hot topic these days, and rightly so. It's the storm cloud gathering over our backyard. And as much as we try to reassure ourselves it will blow over, it's time to move the party indoors - or perhaps start planting seeds.
Of course, there are always deniers. Recently, we heard a short seller suggest that China's real estate market was in a bubble on the grounds that the nation was building commercial space equal to 25 square feet for every citizen – as if that was excessive.
Of course, that building program won't be completed for another couple of years. More to the point, in the U.S. we have more than 400 square feet of commercial real estate per person. So 25 sq. feet doesn't seem that ambitious for a nation that's fast becoming the world's factory floor.
Sure, a few cities in China that could accidentally find themselves with too much space for rent. It happens. But don't think that means the nation as a whole is becoming overbuilt.
One thing we know for certain is that China maintains an inscrutable poker face. It's a tough read. Moreover, the Chinese don't play by the same rules we do, and they think very long term. For instance, one recent unexplained change in China's policy has huge implications for investors...
CHINA'S PLAN TO CONQUER THE WORLD (ECONOMICALLY)
Until last year, the Chinese public was officially forbidden from owning precious metals. Now, in a stark reversal, the Chinese government encourages its people to buy gold and silver – to the point of broadcasting television programs promoting these metals as savings vehicles.
We also note that China has recently become the largest producer of gold in the world. That's entirely surprising. China is the world's largest producer of a lot of things, including many of the vital commodities the U.S. imports. But in this case, it signifies something more.
(Incidentally, consider the vital industrial minerals which are so rare that the U.S. has to import over 50% of their supply. A decade ago, there were 27 such minerals, four of which came mainly from China. Today, there are 37 such minerals and China is the major source of 11. Of course, gold is not a metal which is vital to industry. Its primary uses are in jewelry and as a financial asset. Silver is a little different, since it also has many industrial uses.)
Nonetheless, we have to wonder what China is up to with this new precious metal policy? While it's hard to say for certain, all the evidence points to a future in which gold and silver prices move considerably higher while the U.S. dollar value falters. We can't say when this will happen, only that it will.
At the moment, China has some $2.4 trillion in reserves, most of which are in U.S. dollars. At the same time, everyone in the West complains that the Chinese yuan is undervalued and should be allowed to move higher (meaning the U.S. dollar would move lower). In addition, China clearly believes that American financial policies (debt, deficits, money creation, etc.) will be bad for the dollar over time. Before the dollar falls too far, China might like to trade some of its dollars for something less likely to lose value, but there aren't many alternatives, apart from … gold.
Let's also consider that China thinks long-term. It looks at the trends for the next two decades, while caring little for this year or next. So although the dollar has had a small bounce recently and may even go a little higher this year, China can see that the greenback’s long-term prospects are poor. While China is not likely to sell its dollars or switch to a free-floating currency tomorrow, it will prepare itself for what is coming.
Now let's also consider the real bubble China may be seeking to avoid...
THE REAL CHINESE BUBBLE RISK
The real bubble China would want to avoid isn't a bubble in commercial real estate, but a bubble in housing. By encouraging people to put their life savings into precious metals, rather than real estate, China may prevent such a housing bubble from arising. After all, every yuan invested in gold is a yuan not invested in real estate speculation or buying bigger homes. However, that's only a short-term objective. Longer term, China faces the problem of not owning enough gold to effectively hedge against a downtrend in the dollar.
The dollar basically has two things going for it. It has high liquidity and is backed by America's military dominance. We know China is spending a lot on its military at the moment. As for the liquidity issue, here's one way China might handle the situation.
Let's say Chinese consumers start buying large amounts of gold in exchange for yuan. The yuan will be deposited into Chinese banks, which creates bank reserves that can be used to increase lending, which adds liquidity.
At some time in the future, the Chinese government could decide to turn the silver and gold held by the public into currency (as it once was). China could start minting gold and silver coins and invite the public to swap their old gold for new coins with a face value. Or perhaps create a paper currency fully exchangeable for gold (as the U.S. once did).
This two-part process would expand the money supply – making the Chinese currency liquid enough, while at the same time attaching it to the timeless solidity of gold. The result would be a very strong currency. The main challenge would be getting enough gold to sufficiently back a highly liquid currency.
Right now, 20% of the world's gold is owned by central banks. It adds up to roughly $1 trillion. Yet, China has $2.5 trillion in reserves. China would have to sell its dollars slowly over time while acquiring gold. But it has the money to buy as much gold as the rest of the world's central banks put together. Even if some of that gold is sold to the public as currency, China could have the world's hardest currency a decade from now.
Consider, too, that China will become a net importer within the next decade, which will encourage worldwide use of yuan as a reserve asset itself.
Also consider the rapid expansion of China's economy. This year, its GDP growth could easily return to double-digits, while the rest of the world trails behind, and despite the shifting import/export balance.
If China buys large amounts of gold over the next 10 years as it encourages its citizens to buy precious metals, the citizens are going to become a whole lot wealthier. The return on their investment could be tremendous as all that buying pressure drives gold and silver prices higher. Consequently, the majority of nouveau riche this century will likely speak Mandarin rather than English.
That doesn't mean we can't be part of that group. It just means we have to look at the long-term picture. Instead of shorting China over temporary concerns, we need to buy the dips in both Chinese stocks and precious metals.
Incidentally, people forget that China has a lot of experience with double-digit growth. In the 1950s, its GDP grew in excess of 10% annually and actually topped 20% in 1958. In the 1960s, there were four years in a row in which growth ranged from 10-17%. Granted, there were storms as well, during the Great Leap Forward and Cultural Revolution, for instance, and more recently in 1988-91, when China's growth dipped as low as 4%, partly due to a surge in home prices. However, for the past 60 years, the state’s sovereignty has been in place in China. That's a lot of collective experience that China will use to manage its growth better this time.
Bottom line: Gold and China are becoming closely correlated and will remain major sources of investment returns from now on. Invest in these two areas both as hedges and long-term growth investments. Unless our nation makes some fundamental changes, they will likely do much better than U.S.-based investments.
]]> Tue, 09 Feb 2010 09:10:21 -0500 Dr. Stephen Leeb <strong><a href='http://www.leeb.com/'>Dr. Stephen Leeb</a> submits:</strong><div>China is a hot topic these days, and rightly so. It's the storm cloud gathering over our backyard. And as much as we try to reassure ourselves it will blow over, it's time to move the party indoors - or perhaps start planting seeds.</div> <div> </div> <div>Of course, there are always deniers. Recently, we heard a short seller suggest that China's real estate market was in a bubble on the grounds that the nation was building commercial space equal to 25 square feet for every citizen &ndash; as if that was excessive.</div> <div> </div> <div>Of course, that building program won't be completed for another couple of years. More to the point, in the U.S. we have more than 400 square feet of commercial real estate per person. So 25 sq. feet doesn't seem that ambitious for a nation that's fast becoming the world's factory floor.</div> <div> </div> <div>Sure, a few cities in China that could accidentally find themselves with too much space for rent. It happens. But don't think that means the nation as a whole is becoming overbuilt.</div> <div> </div> <div>One thing we know for certain is that China maintains an inscrutable poker face. It's a tough read. Moreover, the Chinese don't play by the same rules we do, and they think very long term. For instance, one recent unexplained change in China's policy has huge implications for investors...</div> <div> </div> <div><strong>CHINA'S PLAN TO CONQUER THE WORLD (ECONOMICALLY)</strong></div> <div> </div> <div>Until last year, the Chinese public was officially forbidden from owning precious metals. Now, in a stark reversal, the Chinese government encourages its people to buy gold and silver &ndash; to the point of broadcasting television programs promoting these metals as savings vehicles.</div> <div> </div> <div>We also note that China has recently become the largest producer of gold in the world. That's entirely surprising. China is the world's largest producer of a lot of things, including many of the vital commodities the U.S. imports. But in this case, it signifies something more.</div> <div> </div> <div>(Incidentally, consider the vital industrial minerals which are so rare that the U.S. has to import over 50% of their supply. A decade ago, there were 27 such minerals, four of which came mainly from China. Today, there are 37 such minerals and China is the major source of 11. Of course, gold is not a metal which is vital to industry. Its primary uses are in jewelry and as a financial asset. Silver is a little different, since it also has many industrial uses.)</div> <div> </div> <div>Nonetheless, we have to wonder what China is up to with this new precious metal policy? While it's hard to say for certain, all the evidence points to a future in which gold and silver prices move considerably higher while the U.S. dollar value falters. We can't say when this will happen, only that it will.</div> <div> </div> <div>At the moment, China has some $2.4 trillion in reserves, most of which are in U.S. dollars. At the same time, everyone in the West complains that the Chinese yuan is undervalued and should be allowed to move higher (meaning the U.S. dollar would move lower). In addition, China clearly believes that American financial policies (debt, deficits, money creation, etc.) will be bad for the dollar over time. Before the dollar falls too far, China might like to trade some of its dollars for something less likely to lose value, but there aren't many alternatives, apart from &hellip; gold.</div> <div> </div> <div>Let's also consider that China thinks long-term. It looks at the trends for the next two decades, while caring little for this year or next. So although the dollar has had a small bounce recently and may even go a little higher this year, China can see that the greenback&rsquo;s long-term prospects are poor. While China is not likely to sell its dollars or switch to a free-floating currency tomorrow, it will prepare itself for what is coming.</div> <div> </div> <div>Now let's also consider the real bubble China may be seeking to avoid...</div> <div> </div> <div><strong>THE REAL CHINESE BUBBLE RISK</strong></div> <div> </div> <div>The real bubble China would want to avoid isn't a bubble in commercial real estate, but a bubble in housing. By encouraging people to put their life savings into precious metals, rather than real estate, China may prevent such a housing bubble from arising. After all, every yuan invested in gold is a yuan not invested in real estate speculation or buying bigger homes. However, that's only a short-term objective. Longer term, China faces the problem of not owning enough gold to effectively hedge against a downtrend in the dollar.</div> <div> </div> <div>The dollar basically has two things going for it. It has high liquidity and is backed by America's military dominance. We know China is spending a lot on its military at the moment. As for the liquidity issue, here's one way China might handle the situation.</div> <div>Let's say Chinese consumers start buying large amounts of gold in exchange for yuan. The yuan will be deposited into Chinese banks, which creates bank reserves that can be used to increase lending, which adds liquidity.</div> <div> </div> <div>At some time in the future, the Chinese government could decide to turn the silver and gold held by the public into currency (as it once was). China could start minting gold and silver coins and invite the public to swap their old gold for new coins with a face value. Or perhaps create a paper currency fully exchangeable for gold (as the U.S. once did).</div> <div> </div> <div>This two-part process would expand the money supply &ndash; making the Chinese currency liquid enough, while at the same time attaching it to the timeless solidity of gold. The result would be a very strong currency. The main challenge would be getting enough gold to sufficiently back a highly liquid currency.</div> <div> </div> <div>Right now, 20% of the world's gold is owned by central banks. It adds up to roughly $1 trillion. Yet, China has $2.5 trillion in reserves. China would have to sell its dollars slowly over time while acquiring gold. But it has the money to buy as much gold as the rest of the world's central banks put together. Even if some of that gold is sold to the public as currency, China could have the world's hardest currency a decade from now.</div> <div> </div> <div>Consider, too, that China will become a net importer within the next decade, which will encourage worldwide use of yuan as a reserve asset itself.</div> <div> </div> <div>Also consider the rapid expansion of China's economy. This year, its GDP growth could easily return to double-digits, while the rest of the world trails behind, and despite the shifting import/export balance.</div> <div> </div> <div>If China buys large amounts of gold over the next 10 years as it encourages its citizens to buy precious metals, the citizens are going to become a whole lot wealthier. The return on their investment could be tremendous as all that buying pressure drives gold and silver prices higher. Consequently, the majority of nouveau riche this century will likely speak Mandarin rather than English.</div> <div> </div> <div>That doesn't mean we can't be part of that group. It just means we have to look at the long-term picture. Instead of shorting China over temporary concerns, we need to buy the dips in both Chinese stocks and precious metals.</div> <div> </div> <div>Incidentally, people forget that China has a lot of experience with double-digit growth. In the 1950s, its GDP grew in excess of 10% annually and actually topped 20% in 1958. In the 1960s, there were four years in a row in which growth ranged from 10-17%. Granted, there were storms as well, during the Great Leap Forward and Cultural Revolution, for instance, and more recently in 1988-91, when China's growth dipped as low as 4%, partly due to a surge in home prices. However, for the past 60 years, the state&rsquo;s sovereignty has been in place in China. That's a lot of collective experience that China will use to manage its growth better this time.</div> <div> </div> <div>Bottom line: Gold and China are becoming closely correlated and will remain major sources of investment returns from now on. Invest in these two areas both as hedges and long-term growth investments. Unless our nation makes some fundamental changes, they will likely do much better than U.S.-based investments.</div><br/><a href='http://seekingalpha.com/article/187502-china-s-plan-for-economic-conquest?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=eiAqoMNBgy0:AFwlp-HVzp4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=eiAqoMNBgy0:AFwlp-HVzp4:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=eiAqoMNBgy0:AFwlp-HVzp4:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=eiAqoMNBgy0:AFwlp-HVzp4:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> FXI PGJ GLD SLV UUP UDN Dr. Stephen Leeb ECONOMICALLY What's Waiting for China in the Year of the Tiger? http://seekingalpha.com/article/187469-what-s-waiting-for-china-in-the-year-of-the-tiger?source=feed 187469
With the Chinese New Year almost upon us, I went around the web to see what people are prognosticating about the Year of the Metal Tiger. These are some interesting observations:

From KCI Investing (written by Yiannis G Mostrous):

"In the upcoming Year of the Tiger, investors should keep in mind that tigers often live dangerously. The ancient Chinese admired the tiger for its fighting qualities, as well as its power and graciousness, and the animal is lauded for its agility and ability to take advantage of tough situations.

]]> Tue, 09 Feb 2010 05:41:30 -0500 China OTC Player <strong><a href='http://chinaotcplayer.blogspot.com/'>China OTC Player</a> submits:</strong><p><br>With the Chinese New Year almost upon us, I went around the web to see what people are prognosticating about the Year of the Metal Tiger. These are some interesting observations:<br><br>From <a href="http://www.kciinvesting.com/articles/10183/1/The-Year-of-the-Tiger/Page1.html">KCI Investing</a> (written by Yiannis G Mostrous):<br><em><br><span>&quot;In the upcoming Year of the Tiger, investors should keep in mind that tigers often live dangerously. The ancient Chinese admired the tiger for its fighting qualities, as well as its power and graciousness, and the animal is lauded for its agility and ability to take advantage of tough situations.</span></em></p><br/><a href='http://seekingalpha.com/article/187469-what-s-waiting-for-china-in-the-year-of-the-tiger?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=syZ-SGQ3u9A:8ONNVDnPhIY:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=syZ-SGQ3u9A:8ONNVDnPhIY:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=syZ-SGQ3u9A:8ONNVDnPhIY:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=syZ-SGQ3u9A:8ONNVDnPhIY:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> China OTC Player 5 ETFs for a Trade War with China http://seekingalpha.com/article/187437-5-etfs-for-a-trade-war-with-china?source=feed 187437 Sino-American relations are quickly reaching a breaking point, as the Obama administration continues to spar with the People’s Republic of China over a variety of issues. The first clash was seen in the tariffs proposed on Chinese steel pipe manufacturers last year, followed by another dispute related to tire producers shortly thereafter. The Chinese took a hard line approach in their response, threatening to apply similar duties to American products such as agricultural goods, much to the dismay of American producers. Although tempers cooled over the winter, tensions are heating up between these two economic rivals following a series of recent developments.

Issue Overview

The People’s Republic has always been very sensitive about issues involving Taiwan, which the the communist country believes to be a “rebel province.” The Chinese hope to see the return of Taiwan to the Mainland’s control some day, much like Hong Kong, while opposing any notion of ‘”two Chinas.” As such, Beijing has applied pressure in several international forums to restrict or ban the involvement of Taiwan in any organization that would suggest status as an independent country. While hardly any countries recognize Taiwan as an independent nation, it has not stopped countries such as the United States from arming the small island with the latest military technology. In a recent deal, the U.S. has approved the sale of over $6.4 billion worth of high tech military technology to Taiwan, including 114 Patriot missiles and 60 Black Hawk helicopters. Not surprisingly, the Chinese were not pleased with this decision. “The United States will shoulder responsibility for the serious repercussions if it does not immediately reverse the mistaken decision to sell weapons to Taiwan,” said Chinese Vice Foreign Minister He Yafei.

]]> Tue, 09 Feb 2010 04:01:43 -0500 Eric Dutram <strong><a href='http://etfdb.com/'>ETF Database</a> submits: </strong><p>Sino-American relations are quickly reaching a breaking point, as the Obama administration continues to spar with the <a href="http://etfdb.com/type/region/china/">People&rsquo;s Republic of China</a> over a variety of issues. The first clash was seen in the tariffs proposed on Chinese <a href="http://globaleconomicanalysis.blogspot.com/2009/09/us-fires-opening-salvo-in-trade-wars.html">steel pipe</a> manufacturers last year, followed by another dispute related to tire producers shortly thereafter. The Chinese took a hard line approach in their response, threatening to apply similar duties to American products such as agricultural goods, much to the dismay of American producers. Although tempers cooled over the winter, tensions are heating up between these two economic rivals following a series of recent developments.<span></p> <h3>Issue Overview</h3> <p>The People&rsquo;s Republic has always been very sensitive about issues involving Taiwan, which the the communist country believes to be a &ldquo;rebel province.&rdquo; The Chinese hope to see the return of <a href="http://etfdb.com/type/region/taiwan/">Taiwan</a> to the Mainland&rsquo;s control some day, much like <a href="http://etfdb.com/type/region/hong-kong/">Hong Kong</a>, while opposing any notion of &lsquo;&rdquo;two Chinas.&rdquo; As such, Beijing has applied pressure in several international forums to restrict or ban the involvement of Taiwan in any organization that would suggest status as an independent country. While hardly any countries recognize Taiwan as an independent nation, it has not stopped countries such as the United States from arming the small island with the latest military technology. In a recent deal, the U.S. has approved the sale of over <a href="http://www.timesonline.co.uk/tol/news/world/asia/article7009566.ece">$6.4 billion</a> worth of high tech military technology to Taiwan, including 114 Patriot missiles and 60 Black Hawk helicopters. Not surprisingly, the Chinese were not pleased with this decision. &ldquo;The United States will shoulder responsibility for the serious repercussions if it does not immediately reverse the mistaken decision to sell weapons to Taiwan,&rdquo; <a href="http://www.timesonline.co.uk/tol/news/world/asia/article7009566.ece">said</a> Chinese Vice Foreign Minister He Yafei.</p></span><br/><a href='http://seekingalpha.com/article/187437-5-etfs-for-a-trade-war-with-china?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=1yjYKVB_z-g:WPTpe9kE23U:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=1yjYKVB_z-g:WPTpe9kE23U:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=1yjYKVB_z-g:WPTpe9kE23U:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=1yjYKVB_z-g:WPTpe9kE23U:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CHIQ EWA VNM XLI XRT Eric Dutram Emerging Markets Growth and the Resources Boom - Frank Holmes http://seekingalpha.com/article/187421-emerging-markets-growth-and-the-resources-boom-frank-holmes?source=feed 187421 Specializing in emerging markets, natural resources and global infrastructure, U.S. Global Investors is positioned so perfectly for the times that CEO Frank Holmes might have written its business plan and tag line—"Resourceful Investing for a Developing World"—this morning. All of these arenas of expertise at U.S. Global Investors play powerful but somewhat unpredictable roles in the evolving 21st century worldwide economy. Led by China and India, the emerging markets have placed unprecedented (and growing) demand on natural resources. From gas and oil to copper and zinc, it takes vast quantities of those natural resources to build infrastructure to accommodate explosive growth in population, upward mobility, urbanization and industrialization. So as the other Holmes once said, "The game is afoot." Meanwhile, the developed world can hardly sit by and watch the action from afar. As Frank suggests in this exclusive Energy Report interview, the key to staying in the game—even as the rules are changing—may lie in adapting nimbly and rationally.

The Energy Report: President Obama recently came out with proposals to limit profit taking in the banking industry, impose salary caps and restrict banking investments. Then in his State of the Union address, he called for a freeze on spending for discretionary government programs. Any comments about that?

]]> Tue, 09 Feb 2010 03:25:28 -0500 The Energy Report <strong><a href='http://www.theenergyreport.com/'>The Energy Report</a> submits:</strong><p><span><img src="http://static.seekingalpha.com/uploads/2010/2/9/saupload_frankholmes.jpg" align="right" hspace="6" vspace="6" /></span><span><i>Specializing in emerging markets, natural resources and global infrastructure, U.S. Global Investors is positioned so perfectly for the times that CEO Frank Holmes might have written its business plan and tag line&mdash;&quot;Resourceful Investing for a Developing World&quot;&mdash;this morning. All of these arenas of expertise at U.S. Global Investors play powerful but somewhat unpredictable roles in the evolving 21st century worldwide economy. Led by China and India, the emerging markets have placed unprecedented (and growing) demand on natural resources. From gas and oil to copper and zinc, it takes vast quantities of those natural resources to build infrastructure to accommodate explosive growth in population, upward mobility, urbanization and industrialization. So as the other Holmes once said, &quot;The game is afoot.&quot; Meanwhile, the developed world can hardly sit by and watch the action from afar. As Frank suggests in this exclusive </i>Energy Report<i> interview, the key to staying in the game&mdash;even as the rules are changing&mdash;may lie in adapting nimbly and rationally.</i><br> <br> <b>The Energy Report:</b> President Obama recently came out with proposals to limit profit taking in the banking industry, impose salary caps and restrict banking investments. Then in his State of the Union address, he called for a freeze on spending for discretionary government programs. Any comments about that?</span></p><br/><a href='http://seekingalpha.com/article/187421-emerging-markets-growth-and-the-resources-boom-frank-holmes?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=06U-BbVXc9E:eXRxQcvX1eE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=06U-BbVXc9E:eXRxQcvX1eE:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=06U-BbVXc9E:eXRxQcvX1eE:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=06U-BbVXc9E:eXRxQcvX1eE:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> PEGFF.PK SJT The Energy Report 3SBio Gains China Rights to Another Dialysis Drug http://seekingalpha.com/article/187417-3sbio-gains-china-rights-to-another-dialysis-drug?source=feed 187417 3SBio Inc. (NSDQ: SSRX) in-licensed the China rights to a phosphate binder, Nephoxil, from Panacor Bioscience Ltd. of Taiwan. Phosphate binders are routinely prescribed for end stage renal disease, the same population served by 3SBio’s major products, the recombinant anemia drugs EPIAO and TPIAO.

3SBio paid $1 million to Panacor for the rights to Nephoxil and will be responsible for all costs of gaining approval of the drug in China. It will also pay royalties on any sales of Nephoxil, once it is approved. Further details of the transaction were not disclosed.

]]> Tue, 09 Feb 2010 02:43:28 -0500 ChinaBio Today <img src='http://seekingalpha.com/wp-content/seekingalpha/images/ChinaBioTodaysharplogo.jpg' title='chinabiotodaynewlogo' alt='chinabiotodaynewlogo' width="100" height="30" border='1' align="left" hspace="6" vspace="6" /><strong><a href="http://chinabiotoday.com/"> ChinaBio Today</a> submits: </strong><p>3SBio Inc. (NSDQ: <a href='http://seekingalpha.com/symbol/ssrx' title='More opinion and analysis of SSRX'>SSRX</a>) in-licensed the China rights to a phosphate binder, Nephoxil, from Panacor Bioscience Ltd. of Taiwan. Phosphate binders are routinely prescribed for end stage renal disease, the same population served by 3SBio&rsquo;s major products, the recombinant anemia drugs EPIAO and TPIAO. <br><br>3SBio paid $1 million to Panacor for the rights to Nephoxil and will be responsible for all costs of gaining approval of the drug in China. It will also pay royalties on any sales of Nephoxil, once it is approved. Further details of the transaction were not disclosed.</p><br/><a href='http://seekingalpha.com/article/187417-3sbio-gains-china-rights-to-another-dialysis-drug?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=aKmepUh0p-g:99aJUaNgFlI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=aKmepUh0p-g:99aJUaNgFlI:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=aKmepUh0p-g:99aJUaNgFlI:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=aKmepUh0p-g:99aJUaNgFlI:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> SSRX ChinaBio Today SSRX Jim Rogers: Chanos 'Couldn’t Spell China 10 Years Ago' http://seekingalpha.com/article/187406-jim-rogers-chanos-couldnt-spell-china-10-years-ago?source=feed 187406 No he didn’t.

Jim Rogers, the bow-tie wearing Quantum Fund co-founder and Sino-enthusiast, has recently implied Jim Chanos doesn’t know China from a hole in the ground. Rogers is not happy about the recent bearish pronouncements coming from Enron-slayer and famed short-seller Jim Chanos. In what looks to be a rumble in the jungle of savvy market investments we have these choice words from Jim Rogers to kick things off:

]]> Tue, 09 Feb 2010 01:56:10 -0500 Edward Harrison <strong><a href='http://www.creditwritedowns.com/'>Edward Harrison</a> submits:</strong><p>No he didn&rsquo;t. </p><p>Jim Rogers, the bow-tie wearing Quantum Fund co-founder and Sino-enthusiast, has recently implied Jim Chanos doesn&rsquo;t know China from a hole in the ground. Rogers is not happy about the recent bearish pronouncements coming from Enron-slayer and famed short-seller Jim Chanos. In what looks to be a rumble in the jungle of savvy market investments we have these choice words from Jim Rogers to kick things off:</p><br/><a href='http://seekingalpha.com/article/187406-jim-rogers-chanos-couldnt-spell-china-10-years-ago?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=h2HHq4QnqCA:dW7HuBVz23A:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=h2HHq4QnqCA:dW7HuBVz23A:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=h2HHq4QnqCA:dW7HuBVz23A:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=h2HHq4QnqCA:dW7HuBVz23A:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> Edward Harrison Google's Doublespeak on China http://seekingalpha.com/article/187372-google-s-doublespeak-on-china?source=feed 187372 When Google announced that it would no longer play nicely with China, some suggested that this was a just a ploy to pull out of a country that it was struggling to dominate.

Of course, Google’s official stance was that it was just too much of a compromise to operate any business in China:

]]> Mon, 08 Feb 2010 16:33:46 -0500 Andy Beal <strong><a href='http://www.marketingpilgrim.com'>Andy Beal</a> submits: </strong><p>When Google <a href="http://www.marketingpilgrim.com/2010/01/google-and-china-maybe-they-cant-get-along.html">announced</a> that it would no longer play nicely with China, some suggested that this was a just a ploy to pull out of a country that it was struggling to dominate.</p><p>Of course, Google&rsquo;s official stance was that it was just too much of a compromise to operate any business in China:</p><br/><a href='http://seekingalpha.com/article/187372-google-s-doublespeak-on-china?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=YOF2QX8v1ws:nly0T0gOebM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=YOF2QX8v1ws:nly0T0gOebM:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=YOF2QX8v1ws:nly0T0gOebM:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=YOF2QX8v1ws:nly0T0gOebM:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> GOOG DIS Andy Beal Asia: 'Financial Religion' Proving Remarkably Resilient to the Recession http://seekingalpha.com/article/187356-asia-financial-religion-proving-remarkably-resilient-to-the-recession?source=feed 187356 While I knew Japan's public finances were a mess, I did not realize India was neck in neck with the U.S. [Feb 5, 2010: Sovereign Risk Chart - Where Would the US Fit in, on Europe's Scale?] Also, I imagine after the massive loan growth of the first half of 2009, the Chinese government will be writing off a huge swath of debt sometime in 2011-2013; but they have a massive annual surplus at this point so I assume much of the money will come from that, and not add to their smallish debt.

But overall, the lessons of the late 90s seemed to have given most Asian countries "financial religion."

]]> Mon, 08 Feb 2010 15:46:33 -0500 TraderMark <strong><a href='http://fundmymutualfund.com/'>Trader Mark</a> submits:</strong><p>While I knew Japan's public finances were a mess, I did not realize India was neck in neck with the U.S. [<a href="http://www.fundmymutualfund.com/2010/02/sovereign-risk-chart-where-would-us-fit.html">Feb 5, 2010: Sovereign Risk Chart - Where Would the US Fit in, on Europe's Scale</a>?] Also, I imagine after the massive loan growth of the first half of 2009, the Chinese government will be writing off a huge swath of debt sometime in 2011-2013; but they have a massive annual surplus at this point so I assume much of the money will come from that, and not add to their smallish debt.</p><p>But overall, the lessons of the late 90s seemed to have given most Asian countries &quot;financial religion.&quot;</p><br/><a href='http://seekingalpha.com/article/187356-asia-financial-religion-proving-remarkably-resilient-to-the-recession?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=OjLFVDKLf3U:aNeCJbKMG44:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=OjLFVDKLf3U:aNeCJbKMG44:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=OjLFVDKLf3U:aNeCJbKMG44:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=OjLFVDKLf3U:aNeCJbKMG44:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> AAXJ AIA APF TraderMark China Biotech Week in Review: New Investments in Life Science http://seekingalpha.com/article/187274-china-biotech-week-in-review-new-investments-in-life-science?source=feed 187274 It was a busy week in China life science. No fewer than five companies announced significant financial deals Monday-Friday, and an equal number of companies reported progress – new relationships, production or insurance approvals, earnings gains – in their business plans.

BioMarin Pharmaceutical (NSDQ: BMRN) of Novato, California, will acquire LEAD Therapeutics of San Bruno, California and Shanghai (see story). LEAD Therapeutics is a drug discovery company that has a strategic relationship with CRO ShangPharma. ShangPharma has a scientific staff dedicated to doing LEAD’s chemistry work, and it has made an investment in ShangPharma. BioMarin will pay $18 million upfront and an additional $11 million when LEAD’s key compound files for IND. The deal could ultimately be worth $96 million with milestones.

]]> Mon, 08 Feb 2010 10:36:59 -0500 ChinaBio Today <img src='http://seekingalpha.com/wp-content/seekingalpha/images/ChinaBioTodaysharplogo.jpg' title='chinabiotodaynewlogo' alt='chinabiotodaynewlogo' width="100" height="30" border='1' align="left" hspace="6" vspace="6" /><strong><a href="http://chinabiotoday.com/"> ChinaBio Today</a> submits: </strong><p>It was a busy week in China life science. No fewer than five companies announced significant financial deals Monday-Friday, and an equal number of companies reported progress &ndash; new relationships, production or insurance approvals, earnings gains &ndash; in their business plans.<br><br>BioMarin Pharmaceutical (NSDQ: <a href='http://seekingalpha.com/symbol/bmrn' title='More opinion and analysis of BMRN'>BMRN</a>) of Novato, California, will acquire LEAD Therapeutics of San Bruno, California and Shanghai (see <a href="http://www.chinabiotoday.com/articles/20100205">story</a>). LEAD Therapeutics is a drug discovery company that has a strategic relationship with CRO ShangPharma. ShangPharma has a scientific staff dedicated to doing LEAD&rsquo;s chemistry work, and it has made an investment in ShangPharma. BioMarin will pay $18 million upfront and an additional $11 million when LEAD&rsquo;s key compound files for IND. The deal could ultimately be worth $96 million with milestones. </p><br/><a href='http://seekingalpha.com/article/187274-china-biotech-week-in-review-new-investments-in-life-science?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=-a_IwN_qEvo:ZXhZDebr0Ok:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=-a_IwN_qEvo:ZXhZDebr0Ok:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=-a_IwN_qEvo:ZXhZDebr0Ok:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=-a_IwN_qEvo:ZXhZDebr0Ok:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> BMRN TCM SNY CHME.OB ACHN RPBIF.OB SNBP.OB NBS HFGB.OB ChinaBio Today BMRN Protectionism: China and Chickens vs. Canada and Buy American http://seekingalpha.com/article/187282-protectionism-china-and-chickens-vs-canada-and-buy-american?source=feed 187282 This is an update on trade and protectionism because the last posts I wrote on protectionism were in December. Since then, the only two major events on the protectionist front happened last Friday.

Canada and the Buy American Fiasco

]]> Mon, 08 Feb 2010 09:55:32 -0500 Edward Harrison <strong><a href='http://www.creditwritedowns.com/'>Edward Harrison</a> submits:</strong><p>This is an update on trade and protectionism because the last posts I wrote on protectionism were in December. Since then, the only two major events on the protectionist front happened last Friday.</p><p><strong>Canada and the Buy American Fiasco</strong></p><br/><a href='http://seekingalpha.com/article/187282-protectionism-china-and-chickens-vs-canada-and-buy-american?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=89pvNcSJiiY:DBV1JhumTeQ:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=89pvNcSJiiY:DBV1JhumTeQ:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=89pvNcSJiiY:DBV1JhumTeQ:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=89pvNcSJiiY:DBV1JhumTeQ:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> Edward Harrison 14 Coal Stocks to Consider Buying Now http://seekingalpha.com/article/187215-14-coal-stocks-to-consider-buying-now?source=feed 187215 Coal is the main source of electricity generation in many countries. In addition, coal is used in industrial and other sectors. The global consumption of coal is projected to increase each year by over 1.5% annually.

Saturday Australia signed a $60B deal to supply coal to China for the next 20 years. As part of the contract, each year Australia will ship 30 million tonnes of coal to energy-hungry China. It must be noted that China is the largest consumer of coal in the world and relies on coal to meet 70% of its energy needs.The deal is the largest single export deal ever signed by Australia. Thousands of jobs are expected to be created as a result of this contract.

]]> Mon, 08 Feb 2010 05:34:04 -0500 David Hunkar <strong><a href='http://www.TopForeignStocks.com'>David Hunkar</a> submits: </strong><p>Coal is the main source of electricity generation in many countries. In addition, coal is used in industrial and other sectors. The global consumption of coal is projected to increase each year by over 1.5% annually.</p> <p>Saturday Australia signed a <a href="http://www.abc.net.au/news/stories/2010/02/06/2812195.htm">$60B deal to supply coal to China</a> for the next 20 years. As part of the contract, each year Australia will ship 30 million tonnes of coal to energy-hungry China. It must be noted that China is the largest consumer of coal in the world and relies on coal to meet 70% of its energy needs.The deal is the <strong>largest single export deal ever signed by Australia</strong>. Thousands of jobs are expected to be created as a result of this contract.</p><br/><a href='http://seekingalpha.com/article/187215-14-coal-stocks-to-consider-buying-now?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=ErkcDOhTwcg:PQkv15K8xfM:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=ErkcDOhTwcg:PQkv15K8xfM:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=ErkcDOhTwcg:PQkv15K8xfM:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=ErkcDOhTwcg:PQkv15K8xfM:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> ACI ANR BTU CNX EEE MEE NRP PVR WLT YZC ICO PVG PCX CLD David Hunkar Changyou's New Games: Key for Investors http://seekingalpha.com/article/187187-changyou-s-new-games-key-for-investors?source=feed 187187 TLBB 2 signals a new "TLBB Series" strategy

On February 4, Chinese online game operator Changyou.com (CYOU), a subsidiary of Sohu.com (SOHU), announced its plan to launch TLBB 2 in 2010, a sequel to the company's flagship game TLBB.

]]> Mon, 08 Feb 2010 03:50:32 -0500 Xiaofan Zhang <strong><a href='http://seekingalpha.com/author/xiaofan-zhang/articles'>Xiaofan Zhang</a> submits: </strong><p><strong>TLBB 2 signals a new &quot;TLBB Series&quot; strategy</strong></p> <p>On February 4, Chinese online game operator <strong>Changyou.com (<a href='http://seekingalpha.com/symbol/cyou' title='More opinion and analysis of CYOU'>CYOU</a>)</strong>, a subsidiary of <strong>Sohu.com (<a href='http://seekingalpha.com/symbol/sohu' title='More opinion and analysis of SOHU'>SOHU</a>)</strong>, announced its plan to launch TLBB 2 in 2010, a sequel to the company's flagship game TLBB.</p><br/><a href='http://seekingalpha.com/article/187187-changyou-s-new-games-key-for-investors?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=uE0ThiXfz_g:FIA9b6_Fu8Q:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=uE0ThiXfz_g:FIA9b6_Fu8Q:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=uE0ThiXfz_g:FIA9b6_Fu8Q:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=uE0ThiXfz_g:FIA9b6_Fu8Q:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CYOU SOHU GAME Xiaofan Zhang SOHUCYOU A Tale of Two GDPs http://seekingalpha.com/article/187186-a-tale-of-two-gdps?source=feed 187186 I recently downloaded 1000 pages of data from the National Bureau of Statistics of China. What I actually wanted was data on freight and energy consumption but I decided it was easier to get all that was available and then extract the data I was after.

The reason I wanted freight and energy was to get some idea of how general the growth in China is -- given that there is skepticism in some circles about the actual numbers coming out of China.

]]> Mon, 08 Feb 2010 03:44:42 -0500 Wildebeest <strong><a href='http://www.wildebeests.net/'>Wildebeest</a> submits: </strong> <p>I recently downloaded 1000 pages of data from the <a href="http://www.stats.gov.cn/english/">National Bureau of Statistics of China</a>. What I actually wanted was data on freight and energy consumption but I decided it was easier to get all that was available and then extract the data I was after.</p> <p>The reason I wanted freight and energy was to get some idea of how general the growth in China is -- given that there is skepticism in some circles about the actual numbers coming out of China.</p><br/><a href='http://seekingalpha.com/article/187186-a-tale-of-two-gdps?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=RciHLEchrts:Y7uAbGeChMU:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=RciHLEchrts:Y7uAbGeChMU:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=RciHLEchrts:Y7uAbGeChMU:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=RciHLEchrts:Y7uAbGeChMU:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> FXI PGJ CAF GXC DIA SPY QQQQ Wildebeest 5 China Stocks Ready to Pounce http://seekingalpha.com/article/187175-5-china-stocks-ready-to-pounce?source=feed 187175 By Platinum Tiger

With the new Year of the Tiger roaring to a start on Tuesday, this seems a good time to take stock and plan for the weeks and months ahead. I'd like to take a look at recent stock market results, and then focus on a few picks to consider.

]]> Mon, 08 Feb 2010 03:35:43 -0500 China OTC Player <strong><a href='http://chinaotcplayer.blogspot.com/'>China OTC Player</a> submits:</strong><p><em>By Platinum Tiger</em><br><br>With the new Year of the Tiger roaring to a start on Tuesday, this seems a good time to take stock and plan for the weeks and months ahead. I'd like to take a look at recent stock market results, and then focus on a few picks to consider.</p><br/><a href='http://seekingalpha.com/article/187175-5-china-stocks-ready-to-pounce?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=SXPNxm7wJWU:73sU9NX5TNk:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=SXPNxm7wJWU:73sU9NX5TNk:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=SXPNxm7wJWU:73sU9NX5TNk:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=SXPNxm7wJWU:73sU9NX5TNk:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CAHS.OB LLEN.OB CHGI.OB HSYT.OB GURC.OB China OTC Player Time to Short Baidu? http://seekingalpha.com/article/187178-time-to-short-baidu?source=feed 187178 It’s been almost a month since Google (GOOG) caused a global uproar by saying it no longer wanted to censor results of its Chinese search engine, Google.cn. Since then, analysts have touted China’s Internet search leader Baidu (BIDU) as a can’t-miss.

At first glance this seems reasonable enough – indeed, the share price of Baidu’s Nasdaq-listed unit has gone up 10.5% since Google’s January 12 announcement, and it just posted better-than-expected results for the fourth quarter of 2009.

]]> Mon, 08 Feb 2010 03:15:18 -0500 China Market Research Group <p><span>It&rsquo;s been almost a month since Google (<a href='http://seekingalpha.com/symbol/goog' title='More opinion and analysis of GOOG'>GOOG</a>) caused a global uproar by saying it no longer wanted to censor results of its Chinese search engine, Google.cn.<span> </span>Since then, analysts have touted China&rsquo;s Internet search leader Baidu (<a href='http://seekingalpha.com/symbol/bidu' title='More opinion and analysis of BIDU'>BIDU</a>) as a can&rsquo;t-miss.<span> </span></span></p><p><span>At first glance this seems reasonable enough &ndash; indeed, the share price of Baidu&rsquo;s Nasdaq-listed unit has gone up 10.5% since Google&rsquo;s January 12 announcement, and it just posted better-than-expected results for the fourth quarter of 2009.<span> </span></span></p><br/><a href='http://seekingalpha.com/article/187178-time-to-short-baidu?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=gwCFBWQ-_KM:Xf2oudo_VYE:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=gwCFBWQ-_KM:Xf2oudo_VYE:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=gwCFBWQ-_KM:Xf2oudo_VYE:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=gwCFBWQ-_KM:Xf2oudo_VYE:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CHINA BIDU GOOG SINA SOHU TCTZF.PK FXI CAF PGJ China Market Research Group BIDUGOOG U.S.-China Relations: Media Gets it Wrong http://seekingalpha.com/article/187083-u-s-china-relations-media-gets-it-wrong?source=feed 187083

Is China’s reaction to last week’s announced US arms sale to Taiwan really all that more strident than in the past? Should America be worried? To read a New York Times article published last week, citing the usual ragbag of US-based “China experts”, you might conclude so.

I don’t buy it. China is not set, contrary to such reports, firmly on a course to antagonize America. It is, however, a great power with legitimate national interests to assert and protect. Sometimes those will clash with America’s national interests. But the bilateral relationship also has a root system of common goals and shared admiration.

]]> Sun, 07 Feb 2010 13:58:11 -0500 Peter Fuhrman <strong><a href='http://www.chinafirstcapital.com/'>Peter Fuhrman</a> submits:</strong><p><span><p><span>Is China&rsquo;s reaction to last week&rsquo;s announced US arms sale to Taiwan really all that more strident than in the past? Should America be worried? To read a New York Times <a href="http://www.nytimes.com/2010/02/01/world/asia/01china.html?scp=1&amp;sq=helene%20cooper&amp;st=cse">article</a> published last week, citing the usual ragbag of US-based &ldquo;China experts&rdquo;, you might conclude so. <br></span></p><p><span>I don&rsquo;t buy it. China is not set, contrary to such reports, firmly on a course to antagonize America. It is, however, a great power with legitimate national interests to assert and protect. Sometimes those will clash with America&rsquo;s national interests. But the bilateral relationship also has a root system of common goals and shared admiration. </span></p></span></p><br/><a href='http://seekingalpha.com/article/187083-u-s-china-relations-media-gets-it-wrong?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=NXxYtdHMnJc:JCYupLaSj3o:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=NXxYtdHMnJc:JCYupLaSj3o:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=NXxYtdHMnJc:JCYupLaSj3o:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=NXxYtdHMnJc:JCYupLaSj3o:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> FXI PGJ Peter Fuhrman Chinese Depression: Will Its Massive Foreign Reserve Hoard Save the Country's Economy? http://seekingalpha.com/article/187134-chinese-depression-will-its-massive-foreign-reserve-hoard-save-the-country-s-economy?source=feed 187134 As the United States and Europe deal with economic contraction resulting from excessive credit expansion that many believe has lead to another Great Depression, China’s future remains hazy. Some argue that China has replaced the US as the global engine of growth because of increased internal consumption, export capacity and massive reserves. And for these reasons, China will avoid the same fate as the US and Europe.

Not everyone is convinced, however.

]]> Sun, 07 Feb 2010 13:15:29 -0500 Mac Slavo <strong><a href='http://www.shtfplan.com/'>Mac Slavo</a> submits:</strong><p>As the United States and Europe deal with economic contraction resulting from excessive credit expansion that many believe has lead to another Great Depression, China&rsquo;s future remains hazy. Some argue that China has replaced the US as the global engine of growth because of increased internal consumption, export capacity and massive reserves. And for these reasons, China will avoid the same fate as the US and Europe.</p> <p>Not everyone is convinced, however.</p><br/><a href='http://seekingalpha.com/article/187134-chinese-depression-will-its-massive-foreign-reserve-hoard-save-the-country-s-economy?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=Q7zkKwjgnvI:g_82oxLjbd8:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=Q7zkKwjgnvI:g_82oxLjbd8:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=Q7zkKwjgnvI:g_82oxLjbd8:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=Q7zkKwjgnvI:g_82oxLjbd8:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CYB Mac Slavo China and the U.S.: Playing Chicken with Exports http://seekingalpha.com/article/187111-china-and-the-u-s-playing-chicken-with-exports?source=feed 187111 In the game of chicken, two cars barrel down a road headed toward each other. The game ends when one or the other veers off, or they crash. Well, right now, Obama and the Chinese government are playing a game of chicken, and which one wins will determine the future of the American economy and this presidency.

On February 5, the Chinese government initiated the game when it announced plans to slap tariffs of 43.1%-105.4% on American chicken parts. This move follows its rejection of Obama's initiative to seek greater Chinese purchases of U.S. exports at Obama's face-to-face meeting with Chinese President Hu on November 17. The United States needs rapidly increased exports to China's rapidly growing market in order to come roaring out of this recession.

]]> Sun, 07 Feb 2010 12:15:09 -0500 Howard Richman <strong><a href="http://www.tradeandtaxes.blogspot.com/">Howard Richman</a> submits:</strong><p>In the game of chicken, two cars barrel down a road headed toward each other. The game ends when one or the other veers off, or they crash. Well, right now, Obama and the Chinese government are playing a game of chicken, and which one wins will determine the future of the American economy and this presidency.</p><p>On February 5, the Chinese government initiated the game when it announced plans to <a href="http://www.reuters.com/article/idUSN0524967120100205">slap tariffs</a> of 43.1%-105.4% on American chicken parts. This move follows its rejection of Obama's initiative to seek greater Chinese purchases of U.S. exports at Obama's face-to-face meeting with Chinese President Hu on November 17. The United States needs rapidly increased exports to China's rapidly growing market in order to come roaring out of this recession.</p><br/><a href='http://seekingalpha.com/article/187111-china-and-the-u-s-playing-chicken-with-exports?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=be6JQ64E2ao:QyuNLfkiTq4:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=be6JQ64E2ao:QyuNLfkiTq4:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=be6JQ64E2ao:QyuNLfkiTq4:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=be6JQ64E2ao:QyuNLfkiTq4:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CYB Howard Richman Can China Control Side-Effects of Stimulus-Led Growth? http://seekingalpha.com/article/187100-can-china-control-side-effects-of-stimulus-led-growth?source=feed 187100 I have another paper available for download outlining my China short thesis available for subscribers here: China Macro Discussion 2-4-10 China Macro Discussion 2-4-10 2010-02-04 13:10:26 922.25 Kb.

In addition to the issue-specific ETFs (Chinese ETFs with Exposure to Real Estate, Banks, Insurance and Export Industrials) that I have already proferred, I will be offering my viewpoints on specific companies across various geographic regions as well.

]]> Sun, 07 Feb 2010 10:21:31 -0500 Reggie Middleton <strong><a href='http://reggiemiddleton.typepad.com/'>Reggie Middleton</a> submits:</strong><p>I have another paper available for download outlining my China short thesis available for subscribers here: <a href="http://boombustblog.com/index.php?option=com_docman&amp;task=doc_download&amp;gid=286"><img src="http://static.seekingalpha.com/uploads/2010/2/7/saupload_pdf.png" alt="China Macro Discussion 2-4-10" /> China Macro Discussion 2-4-10<span> 2010-02-04 13:10:26</span><span> 922.25 Kb.</span></a></p> <p>In addition to the issue-specific ETFs (<a href="http://boombustblog.com/index.php?option=com_docman&amp;task=doc_details&amp;Itemid=103&amp;gid=277">Chinese ETFs with Exposure to Real Estate, Banks, Insurance and Export Industrials)</a> that I have already proferred, I will be offering my viewpoints on specific companies across various geographic regions as well.</p><br/><a href='http://seekingalpha.com/article/187100-can-china-control-side-effects-of-stimulus-led-growth?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=0mSpUDGKwM4:yE2e90ieyxI:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=0mSpUDGKwM4:yE2e90ieyxI:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=0mSpUDGKwM4:yE2e90ieyxI:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=0mSpUDGKwM4:yE2e90ieyxI:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> CYB CNY FXI PGJ Reggie Middleton People's Bank of China Currency Reserves: Biggest Bubble of All Time? http://seekingalpha.com/article/187094-people-s-bank-of-china-currency-reserves-biggest-bubble-of-all-time?source=feed 187094 The People's Bank fo China continues to amass huge levels of foreign currency reserves with little attention paid. Those reserves totaled $2.4 trillion as of December 2009, which is larger than the GDP of Italy, the world's 7th largest economy. China's reserves are growing at about $400 billion per year, roughly adding Norway's economy to their reserve surplus every year.

These reserves are generated from structural imbalances in the world economy, with China running huge trade surpluses which are exacerbated by China's currency peg. To keep the currency within a narrow range, China is forced to buy foreign currency that comes into the country. The Yuan it spends to buy foreign cash is added to the funds sloshing around China's banking system. In addition, the foreign currency that the Bank of China holds is then reinvested, mostly in low yielding investments like US Treasury Bonds. In fact, China is the largest holder of US Treasuries. The Yuan flowing around the banking system is causing some to wonder about inflation and asset bubbles. Some market participants are taking notice of bank loan growth and Urban real estate markets. Chinese officials have taken steps recently to slow loan growth and to potentially slow inflationary pressures. We've seen the market respond with the Hang Seng Index falling over 11% over the last month.

 Source: Bloomberg
China's huge arsenal of reserves is increasingly troublesome. William Pesek of Bloomberg has called it a "massive and growing pyramid scheme." China is essentially trapped in its current arrangement; as it buys more US Treasuries, it becomes harder to sell them without causing huge capital losses.

]]> Sun, 07 Feb 2010 09:55:07 -0500 ETFdesk.com <strong><a href='http://www.etfguide.com'>Tom Schumacher</a> submits:</strong><p>The People's Bank fo China continues to amass huge levels of foreign currency reserves with little attention paid. Those reserves totaled $2.4 trillion as of December 2009, which is larger than the GDP of Italy, the world's 7th largest economy. China's reserves are growing at about $400 billion per year, roughly adding Norway's economy to their reserve surplus every year.<br> <a href="http://static.seekingalpha.com/uploads/2010/2/7/saupload_china_reserves.png"><br><img src="http://static.seekingalpha.com/uploads/2010/2/7/saupload_china_reserves.png" width="499" height="403" /></a> <br><br>These reserves are generated from structural imbalances in the world economy, with China running huge trade surpluses which are exacerbated by China's currency peg. To keep the currency within a narrow range, China is forced to buy foreign currency that comes into the country. The Yuan it spends to buy foreign cash is added to the funds sloshing around China's banking system. In addition, the foreign currency that the Bank of China holds is then reinvested, mostly in low yielding investments like US Treasury Bonds. In fact, China is the largest holder of US Treasuries. The Yuan flowing around the banking system is causing some to wonder about inflation and asset bubbles. Some market participants are taking notice of bank loan growth and Urban real estate markets. Chinese officials have taken steps recently to slow loan growth and to potentially slow inflationary pressures. We've seen the market respond with the Hang Seng Index falling over 11% over the last month.<br> <a href="http://static.seekingalpha.com/uploads/2010/2/7/saupload_hangseng.png"><br><img src="http://static.seekingalpha.com/uploads/2010/2/7/saupload_hangseng.png" width="500" height="346" /></a> <em><strong>Source: Bloomberg</strong></em> <br>China's huge arsenal of reserves is increasingly troublesome. William Pesek of Bloomberg has called it a &quot;massive and growing pyramid scheme.&quot; China is essentially trapped in its current arrangement; as it buys more US Treasuries, it becomes harder to sell them without causing huge capital losses.</p><br/><a href='http://seekingalpha.com/article/187094-people-s-bank-of-china-currency-reserves-biggest-bubble-of-all-time?source=feed'>Complete Story &raquo;</a><div class="feedflare"> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=nGgtNx7THRE:tjsxjaag4sA:yIl2AUoC8zA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=yIl2AUoC8zA" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=nGgtNx7THRE:tjsxjaag4sA:aKCwKftKxY0"><img src="http://feeds.feedburner.com/~ff/chinastockblog?i=nGgtNx7THRE:tjsxjaag4sA:aKCwKftKxY0" border="0"></img></a> <a href="http://feeds.feedburner.com/~ff/chinastockblog?a=nGgtNx7THRE:tjsxjaag4sA:7Q72WNTAKBA"><img src="http://feeds.feedburner.com/~ff/chinastockblog?d=7Q72WNTAKBA" border="0"></img></a> </div> FXI GXC TAO HAO PGJ CYB CNY ETFdesk.com