I am not sure what impact this is likely to have in the market, but on Friday and over the weekend there was a lot of discussion about reports surfacing that the CSRC is trying to put pressure on Chinese fund managers to support share prices by restraining their selling activity. According to Saturday’s South …
Read More…Category: Stock market
Inflation projections and manipulated stock markets
What is 2008 CPI inflation for China likely to be? Merrill says in an April 16 research report that they except it to be 6.9%, and most other bank researchers say it will fall between 6% and 7%. Are these numbers plausible? For the first three months of the year, inflation has been running …
Read More…The Great Wall of Chinese liquidity
There has been a great deal of excitement and press coverage about the supervisory cooperation agreement signed yesterday between the China Banking Regulatory Commission and the Securities and Exchange Commission, which allows Chinese banks to conduct QDII investments for their clients in the US. This is, I think, the fifth such agreement, following those in …
Read More…Save the stock market investor!
Once again I have had trouble posting onto my blog, so I was only able to post this morning the following entry from yesterday. After an awful first quarter for Chinese stock markets (down 34%), there seems to be a rising crescendo for stock market support measures by the government. Today the China Securities …
Read More…Tax repeal rumor caused a rebound in Shanghai
Yesterday I noted that there were lots of rumors in the market of a cut in the stamp duty as a way for the government to prop up share prices. In my posting I wrote: Earlier last week Minister of Finance Xie Xuren said public discussions about cutting the stamp duty had been noted …
Read More…Minimum reserves up. Stamp duty down?
Yesterday I had to join some friends from New York for dinner, so I left my office earlier than usual. While I was away and after the market had closed the PBoC sneaked in another 0.5% hike in minimum reserve requirements – their second hike this year, after ten hikes last year (all except one …
Read More…In China even Warren Buffet would be a speculator
The government has spoken, I guess. At any rate the stock market certainly thinks it has. As a side project I run a small investment club, with money supplied by me and some friends, that is invested in a diversified portfolio of Shanghai-Stock-Exchange-listed B-shares (which foreigners are permitted to own, unlike shares in the much …
Read More…More on QDIIs (and Chinese salaries)
My previous (January 16) posting on QDIIs elicited a lot of comment and disagreement, so I thought I would return to the subject with some additional information on why I think that earlier enthusiasm for QDIIs is likely to be short-lived. The ICBC/Credit Suisse joint venture recently launched its own newly-created QDII. The fund …
Read More…No surprise – QDIIs are a bust in China
A few months ago there was a lot of excitement among financial experts and monetary guys about a spate of very successful QDII public offerings in the Shanghai markets. Until recently there have been restrictions on the ability of Chinese to invest abroad. QDIIs allow Chinese investors to buy funds that only invest abroad, and …
Read More…Foreign acquisitions?
Today’s Bloomberg article by Ying Lou quotes Ling Wen, president of China Shenhua Energy Co., the world’s second-largest coal company, as saying “It’s very important to use not only organic growth, but also mergers and acquisitions to make our enterprise larger, better and more profitable. We have huge room to make some acquisitions.” The article …
Read More…