How Traders Killed Value Investing

Want to know why GM stock is above zero? Look to hedge funds and short-term trading

Investors Looking at Overseas Properties, Prompted by Low Prices, Bubbly Domestic Market

A frothy market in China makes both developers and investors interested in real estate nervous. But with overseas property markets often quite undervalued, Chinese investors are heading offshore to take advantage of fire sale prices.

Time to buy selectively

In our report “Time for a Pause” dated 8 June, we stated the FSSTI was likely to correct after meeting resistance at the 38% retracement level at near 2400. We also said the index was extremely overbought.

We have now seen the pullback, not just for the FSSTI but also for the Hang Seng Index, which we had also highlighted. Both indices show corrective structures- patterns that indicate that the move is a regular pullback and not a trend reversal. We also believe that Thursday*s price action marked the tail-end of the correction for both indices or the first leg of the corrective structure.

The attached chart shows the FSSTI correcting towards the apex of a prior wave iv move in a 3-legged zigzag structure. We believe the support will hold at between 2190 and 2237. If the FSSTI rises past 2260, there is scope for a minimum 62% retracement of the pullback. We had recommended investors take profit on some stocks such as City Dev, Wing Tai, Straits Asia Resources, SGX and First Resources. We recommend a re-entry on these stocks.

Porn film ‘Deep Throat’ was big concern to FBI

Newly released files show expansive probe aimed at halting cultural shift

More dams along Yellow River at risk of collapsing

Fragile state blamed on shoddy construction and embezzlement of funds

China’s anti-graft drive soars to new heights

Liaoning governor now under a cloud, deputy relieved of duties

Citi: Oei had net open position of US$6.8b

Defendant argues tycoon’s charges in suit against bank were ‘contrived afterthoughts’

Oei’s Obama assassination fears

Court papers give an insight into tycoon’s dealings, show how he lost millions in the past year

Beauty China auditors troubled by trade receivables

Beauty China’s joint auditors Grant Thornton and HLB Hodgson Impey Cheng steered clear of expressing an opinion on the group’s financial statements for the year ended Dec 31, 2008, after they were unable to verify the recoverability of outstanding trade receivables and found significant uncertainties facing its going-concern status.

China allows IPOs to resume after 9-month suspension

Regulators yesterday lifted a nine-month ban on Chinese initial public stock offerings after markets rebounded in recent months from the plunge that prompted the moratorium.

Steel mills seek accord on spot iron ore price

The China Iron and Steel Association (Cisa) will ask steelmakers to agree on a price for spot iron ore to avoid a bidding war, should long-term contract talks fail with the world’s largest suppliers.

Brilliance dives after BMW purchases ruled out

Shares of Brilliance China Automotive Holdings, which has a joint venture with Bayerische Motoren Werke, fell 8.93 per cent yesterday after the government told state media it had no plans to buy BMW cars for official use.

China May Release Direct Power Sale Rules Soon – Source

The rules will allow approved industrial users to buy electricity directly from power generators and require power transmission firms to clearly lay out their transmission charges.

High Hopes for Hummer’s Curious Suitor

Some mysteries about a Chengdu company’s offer to buy GM’s Hummer vehicle have been answered. But questions remain.

How China must change

In spite being a Communist bureaucrat in his entire political career, Zhao demonstrated a clear and concise understanding of the inherent weaknesses of a one-party system. In comparison, Prime Minister Lee recently proclaimed that a one-party state is the only viable political system for Singapore.

Beijing learns to use the internet to log into and act on the pulse of a nation

Exactly one year ago, President Hu Jintao engaged in his first online chat with the mainland’s netizens and in a speech the same day urged officials “to pay attention to the internet and find new ways of leading public opinion”.

1b yuan Olympics profit excludes venues’ construction cost

The mainland says it made an operating profit of 1 billion yuan (HK$1.13 billion) hosting the Beijing Olympics - but the figure excludes the construction cost for the venues, a long-awaited National Audit Office report said yesterday.

Legal experts worried by decision to free waitress

Hotel waitress Deng Yujiao has walked out of a courtroom in Hubei a free woman after killing an official, but she is paying a price and so is the country’s rule of law, warned mainland lawyers and rights groups.

‘Freelance army’ to help police Web in Beijing

Authorities in the capital to set up pilot team of 10,000 new censors

16 held over exam cheating

Sixteen people from seven provinces have been detained following the busting of a group producing hi-tech equipment for the lucrative exam-cheating market.