Tuesday, 26 May 2009

Liquidity inflow might keep market buoyant

The price of Hong Kong-listed blue chips has soared over the past two months, but investors may still be willing to pay for the mark-up in hopes that recent inflows of liquidity will drive further market gains.

Short-selling fines: are criticisms unjustified?

Judging by recent reports, the Singapore Exchange’s fines for open short-sold positions (or ‘naked’ shorts) introduced last September are considered draconian, inflicting inordinate pain on ignorant - sometimes careless but mainly innocent - retail players.

Shanghai in bid to shake off its negative image

After decades of putting up with criticism and ridicule from other parts of the mainland, the largest city has spoken out against its detractors. A survey sponsored by the local government and conducted by one of its affiliated think-tanks lashes out at the stereotyping of Shanghainese as stingy, arrogant and henpecked.

Don’t single out S-chips

Singapore-listed Chinese stocks, or S-chips, as the market calls them, should not be singled out as the problem child of the stock exchange.

Well-governed S-chips urged to speak up for themselves

They will benefit as investors gain confidence to buy into their stocks

White-collar job market picking up on mainland

The mainland’s white-collar job market is bottoming out amid the global economic crisis, with hiring picking up in certain sectors, say experts.

Sunday, 24 May 2009

Flyers with Lee Bee Wah’s face printed on toilet bowl pasted at BBQ pit outside Nee Soon South RC

A tricky derivative for the market’s ups and downs


Alan Alanson deciphers the callable bull/bear contract in the first of a new series as Road Warrior takes a break

Friday, 22 May 2009

Confessions of Chinese Derivatives Deals Part 2

In this second instalment in a series, a former investment banker describes a conflict of interest at banks that threatens clients.

Tiananmen Now Seems Distant to China’s Students

Few students had to puzzle over the meaning. Youth Day, on May 4, commemorates a 1919 student protest against foreign imperialism and China’s weakness in resisting it. Seventy years later, in 1989, students from Peking University were again massing in the center of Beijing, demanding democracy. The student movement shook the ruling Communist Party to its core and ended with a military crackdown and hundreds of deaths.

Growing interest among investors in Contracts for Difference

There is a growing interest among investors in Singapore in Contracts for Difference (CFDs).

Graft-buster calls for cadre scrutiny

The Communist Party has underlined the importance of combating corruption through stricter regulation of the appointment of officials - the root of the problem.

4 senior cadres helped to pen June 4 memoirs

Veteran officials persuaded Zhao Ziyang to use audio tapes

Zhao wrote book as a ‘historic gift’ to China’s future generations


Du Daozheng, 85, helped preserve Zhao's memoirs.

In his memoir, Zhao confesses that political reform had not occurred to him during his political career, but after years of contemplation, he believed that only parliamentary democracy could help China develop a healthy and modern market economy.

S-chips gain weight as market powers ahead


Fewer margin calls now but the trick is to separate winners from black sheep

Little cheer, few surprises on S-chips’ earnings front

95 China-based firms’ combined net profits slump 52%; analysts wary of more weakness

Governance: S-chips not inferior to small caps

S-chips have been the epicentre of recent corporate scandals but they are not inferior to other small caps when it comes to corporate governance, a study shows.

Coal Mine Tragedies and a Veil of Silence

The use of media gag fees to conceal coal mine accidents is at the center of a reporter’s corruption trial in Hebei Province.

Billionaire Li Tells Investors to ‘Be Careful’ on Stock Market


Billionaire Li Ka-shing, who warned of a bubble in China’s stock market months before it plunged, said Hong Kong investors should be cautious about buying shares after the benchmark index surged 52 percent since early March. The comments from Hong Kong’s richest man yesterday follow his March 26 statement that investors with cash should consider buying equities and real estate. The Hang Seng Index has surged 22 percent since then.

Spoil a child, mess with its maturity


Spoiling toddlers can possibly defer their development, according to the authors of a local survey on toddler health.

Thursday, 21 May 2009

As the VIX Continues to Drop, Is S&P at 1,000 Far Behind?

“I almost see (the low volume) as a positive because it shows there’s not overwhelming optimism in the market. That means its’ not being overdone,” says Schaeffer’s Sparks. “Not everyone is buying in yet and not everyone is on the bandwagon That’s part of the reason why (the rally is) so sustainable.”

Foreign Institutional Investors See A-Shares as Overvalued

Foreign investors deem the price to earnings ratio amongst companies listed on the Shanghai exchange too high.

China Grows More Picky About Debt

Leaders in both Washington and Beijing have been fretting openly about the mutual dependence — some would say codependence — created by China’s vast holdings of United States bonds. But beyond the talk, the relationship is already changing with surprising speed.

Mainland tightens rules to stop misuse of loans

Mainland’s banking regulator is tightening rules to prevent the embezzlement of bank loans after a huge burst of lending was unleashed to support the economy, domestic media reported on Wednesday.

Next Crisis Will Be in Currencies: Jim Rogers

been printing money, giving the appearance of massive government intervention to weaken their currencies, legendary investor Jim Rogers, chairman, Rogers Holdings, told CNBC Wednesday.

Irish priests beat, raped children

Priests beat and raped children during decades of abuse in Catholic-run institutions in Ireland, an official report said on Wednesday, but it stopped short of naming the perpetrators.

Hu intolerant of graft in PLA, analysts say

President Hu Jintao’s warning against “hedonism and individualism” among the military’s top brass reflected his intolerance of rampant corruption inside the People’s Liberation Army, military analysts have said.

Wednesday, 20 May 2009

Secret donor gives $40k monthly to Buddhist Lodge


Mr. Lee Bock Guan, chairman of the Singapore Buddhist Lodge, a temple in Kim Yam Road, showing the monthly donations received from an anonymous donor. The money is usually dropped off in the temple kitchen, which dishes up over 1,000 free meals daily.

Backdoor Listings: Sweet Market Poison

Loosely regulated backdoor listings are promoting speculative behaviour and hobbling reform efforts on China’s stock markets.

Count cash, feel good, study finds

Counting money - even if it’s not yours - makes you feel good subconsciously, according to a joint study by mainland and US psychologists.

Team Temasek needs to start scoring

Sound strategy not enough if players don’t adapt to shifts in the game

Bloggers frustrated as Beijing blocks Google service

Blogger.com, Google’s free blog service, has been blocked by mainland authorities since late last week and thousands of users have complained.

Auditor landscape gets more varied

BT study of all listed companies shows Big 4 still rule but smaller firms carve niches

Client acceptance becomes more stringent

Rising risks cause some audit firms to not take on new clients unless they already know them

Mainland Investors Knock at Taiwan’s Door

In a warming process unimaginable a few years ago, the Taiwan Strait is slowly becoming a two-way street for investments.

‘Please come back to China, WE WON’T EXECUTE YOU’

Beijing promises lighter sentences to get corrupt officials home

BEIJING: ‘Please come back, we will not kill you.’

Pansy Ho ruled unsuitable by US casino watchdog


Casino regulators in the US state of New Jersey have ruled Pansy Ho Chiu-king an “unsuitable” partner in MGM Grand Paradise, her US$1.25 billion Macau joint venture with MGM, following a four-year investigation.

Zhao’s memoirs sell out before official release


The memoirs of ousted Communist Party leader Zhao Ziyang sold out in Hong Kong bookshops before the official release date yesterday.

Tuesday, 19 May 2009

Oei Hong Leong loses $1b, takes Citigroup to court


Businessman claims bank gave him an inaccurate picture of his trading exposure

Monday, 18 May 2009

Play this as a V-shaped recovery for now

There’s nothing like a wild stock market rally to fire the imagination, stir the senses and get analysts talking about green shoots, V-shaped recoveries, virtuous cycles and the birth of a new bull market.

New Strategies for China’s Energy Quest

In a sign of changing times, Chinese oil firms are busy cutting global deals with resource-rich countries and western companies.

Obama sends strong message to Beijing with envoy’s appointment

US President Barack Obama’s choice for ambassador to China seems a natural fit for the job - he speaks fluent Putonghua, has adopted a child from China and has served as an ambassador in Asia.

Working with China

It’s a mistake for America to look China in the eye and only see an enemy. Sure, to characterise that two-way relationship as a blissful friendship would be to transform a willing suspension of disbelief into absurdity. But deep mutual interests can bring two otherwise antagonistic national powers close together in ways that make professions of sincere friendship unnecessary and even redundant. Especially among nation-states, an alliance of mutual interests is generally the best possible bedrock for a relationship. Mutual needs that persist for the foreseeable future trump hot love that lasts only a fortnight.

Ships tread water, waiting for cargo

Concentration of so many vessels along Singapore coast raises accident fears

Friday, 15 May 2009

U.S. Will Pay $2.6 Million to Train Chinese Prostitutes to Drink Responsibly on the Job

The National Institute of Alcohol Abuse and Alcoholism (NIAA), a part of the National Institutes of Health (NIH), will pay $2.6 million in U.S. tax dollars to train Chinese prostitutes to drink responsibly on the job.

How it all works

In a small town on the South Coast of France, the holiday season is in full swing, but it is raining so there is not too much business taking place.

Everyone is heavily in debt. Luckily, a rich Russian tourist arrives in the foyer of the small local hotel. He asks for a room and puts a Euro100 note on the reception counter, takes a key and goes to inspect the room located up the stairs on the third floor.

• The hotel owner takes the banknote in a hurry and rushes to his meat supplier to whom he owes E100.
• The butcher takes the money and races to his supplier to pay his debt.
• The wholesaler rushes to the farmer to pay E100 for pigs he purchased some time ago.
• The farmer triumphantly gives the E100 note to a local prostitute who gave him her services on credit.
• The prostitute quickly goes to the hotel, as she was owing the hotel for her hourly room used to entertain clients.
At that moment, the rich Russian comes down to reception and informs the hotel owner that the room is unsatisfactory and takes his E100 back and departs.

There was no profit or income. But no one any longer has debt and the small town’s people look optimistically towards their future.

Diaoyu protest ship halted ‘for its own safety’



“You are also a Chinese. Why did you try to aid evil-doers at a time when the Chinese Communist Party was sucking up to the Japanese?” Leung Kwok-hung said.

Graft-fighters sharpen skills

The first group of 780 county-level graft-fighters was summoned to Beijing last week for eight days of training on stemming corruption in local governments.

Pain of isolation shines through heartfelt story of confinement

In memoirs that are largely objective but calm, Zhao Ziyang opens his heart to recount the pain of his isolation after the bloodletting at Tiananmen when he was put under a house arrest that was illegal and extremely secretive.

Memoirs will cause party to reflect, ex-Zhao aide says

The memoirs of the former leader sacked in 1989 for sympathising with the Tiananmen student protesters would give the Communist Party plenty to think about when deciding the country’s political future, his one-time top aide said.

‘I was repelled by Li Peng’s attitude’




A meeting at Deng Xiaoping's house in the summer of 1989 after the Tiananmen crackdown. It is the only known visual record of a meeting at the place where the crackdown decision was made.

Zhao Ziyang alleges Li Peng 1989 scheming


Late leader’s explosive memoirs out

Tapes smuggled out as music

The 30 musical cassette tapes were spirited out of the country by former aides and supporters. They had been secretly recorded by ousted party chief Zhao Ziyang.

Zhao Ziyang’s secret memoirs


A 1993 photograph of the late Zhao Ziyang, who was head of the Chinese Communist Party during the 1989 Tiananmen crackdown. His secretly recorded memoirs, to be published this month, shed light on the ongoing political war in the party at that time.

Deposed Chinese leader’s memoir out before June 4


In this May 19, 1989 file photo, Communist Party General Secretary Zhao Ziyang

Remove Lee Bee Wah as STTA President

Sign the online petition here.

Thursday, 14 May 2009

Volatility Too High to Signal Bull Market, Bank of America Says

The two-month rally in global equities does not herald the start of a bull market because price swings are too violent, according to Bank of America Corp.

Confessions of Chinese Derivatives Deals, Part 1

In this first instalment in a series, an expert tells how investment banks sold derivatives in China that may be ticking time bombs.

Exuberance in Taiwan as Ties With China Warm

The bulls are running hard in Taiwan as the island prepares to open its doors to mainland Chinese investment for the first time since breaking from Beijing in 1949.

Maintaining Sino-Japanese relations at Diaoyu’s cost?

SINO-JAPANESE relations have greatly improved since Junichiro Koizumi stepped down as prime minister in 2006. None of his successors have visited the controversial Yasukuni Shrine.

Sympathy for waitress who stabbed official

Internet users have expressed their support for a hotel waitress who killed a government official in Badong county, Hubei, after he allegedly tried to get her to take money in exchange for sex.

Wilmar may hive off China ops as new firm

Listing could be sought in Hong Kong but idea is still in early stages, says CEO

Taiwan to open selected business sectors to China investors

The 99 categories include computers, hotels, retailing

Bond payment extension for Guangzhao IFB

Bondholder not enforcing its rights until June 9

China Yongsheng faulted over payments

KPMG also suggests the group improve its internal controls

Singapore adjusts the bar to admit lawyers trained overseas

Move will help draw Singaporeans working abroad and ease talent shortage here

Sincere may tick back full circle to old hands


Mr Tay: Sold Sincere to HK-based Peace Mark in December 2007 for $530 million, but Sincere was put up for sale again last October after Peace Mark was wound up

Wednesday, 13 May 2009

Dollar Rally Will End, Rogers Says; May Short Stocks

The dollar’s rally is set to end in a “currency crisis,” investor Jim Rogers said, adding that he may bet on a slide in equities after nine weeks of gains.

Sovereign Wealth Funds Shift Focus

After seeing billions of dollars of value wiped off their investments, sovereign wealth funds have reason to feel disillusioned.

Questions for Justice Choo Han Teck in the sentencing of Shin Min editor Lim Hong Eng


A strange series of events unfolded in the courtroom of Justice Choo, just the other day. Justice Choo was hearing the appeal of the hit and run killer driver Ms.. Lim Hong Eng.

Massage led to love, says Tony Chan


HK$50,000 head rub became more intimate, court hears

Time to review SGX’s hybrid nature

Given the spate of corporate debacles among foreign listings here, particularly S-chips, there is dissatisfaction over the lack of closure in many instances where shareholders remain stuck with suspended shares.

Tuesday, 12 May 2009

Time for govt-nominated directors?

Much has been written about the spate of scandals involving S-chips during the last few weeks. To resolve this problem, several proposals have been made, including calls for greater regulation, higher corporate governance and disclosure standards, a more stringent pre-listing screening process and greater penalties for errant companies.

A corporate career cast in controversy


PCCW chief Richard Li rarely out of spotlight

Justices stress need for reform of corporate laws

In a city where free-wheeling deals are often at the expense of small investors, have the Court of Appeal judges drawn a line in the sand?

Yuen’s truthfulness questioned by court

Written judgment says phone calls and links with Fortis official ‘cast shadow of doubt’

Vote-rigging controversy: two courts, two judges and two starkly different verdicts

The PCCW bid saga can be distilled into a tale of two judges.

A nail in the coffin for share splitting

Tycoons, hedge fund arbitrageurs and others who may have been mulling PCCW-style “share splitting” as a strategy for winning shareholders’ votes will probably think twice following yesterday’s release of the Court of Appeal’s reasons for judgment.

Stimulate Away Our Imbalances? Dream On - Andy Xie

Five years or more down the road, we’ll look back and wonder why anyone believed that the financial crisis would be brief.

Monday, 11 May 2009

China’s Loan Binge: Stimulus or Insanity?

Bankers, local officials and financial regulators are trying to explain – and justify – a stunning surge in new loans.

Developer says: time to pay up, Buyer says: give me more time

51 units in luxury condo bought under deferred payment

Jade takeover probe: Answers needed

The Jade Technologies takeover 14 months ago was one of the biggest corporate debacles of recent years, but the long-awaited sequel - the official report into the fiasco - remains as elusive as ever.

SGX’s hands tied by legal, practical constraints: lawyers

Amid a growing list of corporate debacles here - many of which are still in limbo - there are market rumblings over why SGX has fallen short of being more vocal and active in its intervention.

China Emerges as a Leader in Cleaner Coal Technology

China’s frenetic construction of coal-fired power plants has raised worries around the world about the effect on climate change. China now uses more coal than the United States, Europe and Japan combined, making it the world’s largest emitter of gases that are warming the planet.

Sunday, 10 May 2009

Navigating the balance sheet to chart a firm’s real value

Crisis makes it crucial to know a company’s intrinsic worth

Market Mood

Owing to the mismanagement of Taiwan’s former president Chen Shui-bian, the Taiwanese economy and stock market lagged behind those of its neighbours in past years. When Ma Ying-jeou took over, he raised hopes of an economic revival but the global financial crisis erupted soon after. And Taiwan, like other economies, could not escape its wrath.

A delicate matter of succession

Make continuity part of personnel strategy, experts advise

“So dad, who gets to run the family business when you are dead?”

Saturday, 9 May 2009

Asia’s ‘Absolute Greed’ Stocks Rally to Falter, Citigroup Says

Asian stocks are set for a “correction” as a two-month rally drives valuations higher than justified by a recovery in company earnings, according to Citigroup Inc.

Friday, 8 May 2009

Asahi Attempt to Acquire Tsingtao May Be Bitter Cup for the Japanese Company

Not long after the rejection by the Ministry of Commerce (MoC) of Coke’s attempt to acquire Huiyuan, Tsingtao Beer, a more famous Chinese international brand, may be about to fall under the control of a foreign company. And this time, that company is Japanese, which could trigger all sorts of nationalistic fervour in the volatile Chinese.

China to Launch a 2 Trillion Yuan New Energy Investment Plan

China is developing a new energy investment plan, perhaps involving over 2 trillion yuan, to stimulate economic growth and prepare for a round of energy shortage after economic rebound.

Alarm Bells Sounded in Washington Over China’s Rising “Soft Power”

“Cyberspies” breaking into US government computers kicked off alarm bells in Washington last week at a hearing by the U.S.-China Economic and Security Review Commission entitled “China’s Propaganda and Influence Operations, Its Intelligence Activities that Target the United States, and the Resulting Impacts on U.S. National Security.”

Thursday, 7 May 2009

Confession of an S-chip boss

Goh Eng Yeow receives an e-mail on the rise and fall of an unnamed player.

Emerging-Market Stocks May ‘Break Out’ by Year-End, Mobius Says

Emerging-market stocks may “break out” into a bull market at the end of the year as falling interest rates and easing inflation make equities more attractive, Templeton Asset Management Ltd.’s Mark Mobius said.

Wednesday, 6 May 2009

China Stocks ‘Bubble’ Is Almost Over

A rally in China’s stocks is close to ending as investor confidence in the nation’s economic recovery weakens and bank lending slows, according to China Galaxy Securities Co., the nation’s largest brokerage.

Tuesday, 5 May 2009

Secretary accidentally bites off boss’ penis

She was giving him oral sex in a car.

Why the Markets Are Up

To understand the rally, recognize that the GDP statistics you are reading are already out of date.

Wave 3

Wave 3 is usually the largest and most powerful wave in a trend (although some research suggests that in commodity markets, wave five is the largest). The news is now positive and fundamental analysts start to raise earnings estimates. Prices rise quickly, corrections are short-lived and shallow. Anyone looking to "get in on a pullback" will likely miss the boat. As wave three starts.

Scenario 1: today close below opening index 2056, tomorrow gap down (fulfil evening star);

Scenario 2: close near day high again, resume uptrend, target 2400.

Chinafornia, Chinazona, Chutah, and Chindaho


What if the U.S. broke up (much like the Soviet Union did in the early 1990s)? According to one Russian professor, it means that Governer Ahnold may need to learn Chinese.

HK gamblers losing billions in Macau’s VIP rooms

A confidential report commissioned by the Hong Kong Jockey Club to assess the impact of VIP gambling junkets to Macau has estimated that between 4,000 and 8,000 Hongkongers make 10 to 25 such trips to the city each year.

Monday, 4 May 2009

Hang Seng set for third and final plunge, analysts warn

Global market troubles likely to extend into summer