Mainland luxury home prices surge

Mounting concerns over inflation and stock market volatility help bolster demand

Laying hypocrisy on with a trowel over ‘Buy China’

Over the past week, we’ve heard a lot of complaints about Beijing’s “Buy China” policy. We’ve also heard quite a few complaints about those complaints.

Most of both have carried more than a whiff of hypocrisy.

China thirst for foreign red wine apparent at Vinexpo

Much to the delight of French winemakers, China confirmed its passion for red wine within the first 24 hours of the opening of the world’s largest wine exhibition here, Vinexpo.

Jim Rogers says he has no short positions and is selling US dollars

“I’d rather be a farmer than a stockbroker for the next couple of years,” he said. “No-one you went to school with became a farmer... so we have a shortage of farmers.”

S-chips: More clarity and greater enforcement needed

The problem with the local corporate regulatory regime is that it has plenty of rules in some places but not enough action or clarity in others. For instance, much has been written in the past few months about the need to tighten disclosure/ governance rules because of various lapses by mainly S-chips (or companies listed here with predominantly China operations) and the Singapore Exchange (SGX) has duly responded with various consultation/ discussion papers aimed at tightening the rules.

Private equity players sniff for deals again

This time they’re on the lookout for defensive sectors instead of riskier plays

Two Chinese IPOs set to test US stock market

IPO market has begun to rebound recently with some successful deals

Asia’s Biggest Iron Deposit Found in China

June 24 (Bloomberg) -- Asia’s biggest iron ore deposit, with reserves of more than 3 billion metric tons, has been found in China’s northern province of Liaoning, the China News Agency reported, citing the local government.

The Dataigou deposit, located near Benxi city, has both magnetite and hematite material with iron content of between 25 percent and 62 percent, the report said.

The reserves at Dataigou are equivalent to the combination of all iron ore reserves in Liaoning’s Anshan and Benxi cities, the report said.

SGX’s public rap for China Yongsheng

China Yongsheng, the former Global Ariel, received a public reprimand from the Singapore Exchange (SGX) yesterday for breaching its listing rule on timely disclosures.

SGX’s light touch regime hinders national aim

The risk of overreaction to corporate governance failures seems to be a constant theme in articles, and in speeches by regulators and government ministers here. We are often told that no amount of rules will prevent fraud and wrongdoing, and therefore there are limits to what regulation can do.

The many faces of an income statement

At the end of the day, it is important for financial statement readers to understand that there is no one better format than another. Done correctly, both function (with cost of sales) and nature (without cost of sales) offer useful information to financial statement readers.

3 factors to tell if you have been a nun or a monk in your previous life time?

1) That when you go for a buffet spread, you would love to put all your main dishes as well as the dessert all on the same plate! You know monks or nuns go around asking for alms in their empty bowl and so people would usually just put all kinds of food into ONE single bowl.

2) That whenever you buy a new pair of shoes, they hurt for many months - that is because in your previous life, you only wore slippers.

3) That when you are watching TV, you love to sit on the floor rather than on the sofa - it is because you used to meditate on the floor for long hours before!

China Steelmakers Resisting BHP/Rio Dominance, Reaching Out to Diversify Ore Sources

According to the current situation, if China does reach a long-term supply contract with Vale and FMG, and its negotiation with BHP and Rio breaks up, the future iron ore supply and pricing system will gain diversity.

Green Dam and Leaky Dam: Public Power and Social Rights

Mandatory installation of blocking software is an administrative act without sufficient moral and legal ground. From a legal point of view, this is a tussle between public power and social rights.

Raffles Education

1) Falling wedge.
2) Support at 0.535 50EMA.
3) Stochastic at over sold level.
4) Reversal if price goes above 0.555 with more than 20m daily volume.

Cosco

Risk/reward favours long now.

1) Previous reversals on 40EMA.
2) Closed with Doji Star.
3) Stochastic looking to crossover from oversold level.
4) Found strong support at 1.25 today.
5) Tomorrow's volume must be higher than today's volume (25m).
6) Will know tomorrow if this reversal will happen.

Foreigners turn lukewarm on China stocks

Data shows first capital outflow since March; Asian bull trend at an end?

Chen’s children own up to perjury

Chen's daughter Hsing Yu, seen confronting the media

Beauty China faces winding-up in Hong Kong

Alleged default on on HK$133m loan may derail rights issue rescue plan

Saxo Capital launches commodity CFDs

SAXO Capital Markets is launching up to 20 commodity contracts for difference (CFDs) this year that will give traders leveraged access to energy, metal, soft commodity and grain markets worldwide.

Big investors place premium on good investor relations

Most institutional investors are willing to pay a quantifiable premium for good investor relations (IR) but they view the standard of IR among Singapore Exchange-listed companies as ‘average’.

State firms told to transfer shares to pension fund

Beijing orders move as part of efforts to cope with rising numbers of retirees

Important to guard against overreaction

In Singapore, regulatory authorities are also under pressure to tighten the rules following a disconcerting rise in the number of China-based corporates - or S-chips as they are popularly known - which are reporting accounting irregularities that have cast doubt on whether these firms can continue as going concerns.

Despite Law, Job Conditions Worsen in China

80% of S-chips pass bank balances test: SGX

The bank balances of 80 per cent of S-chips pass muster, said the Singapore Exchange (SGX), citing feedback from auditors - amid growing anxiety over the reliability of accounts.

Recession hits young lawyers

Amid downturn, more pupils not offered full employment, asked to foot law course fees of $5,000

Shipbuilding industry may see pick-up in orders

The mainland shipbuilding industry, hit by the global financial downturn, may be about to show some tentative signs of recovery.

Launch of official complaint hotline proves too hot to handle

The mainland’s top prosecutorial body’s first hotline for the public to report violations of party discipline or law proved so popular when launched yesterday that it crashed.

Shanghai migrants denounce complex residency scheme

Migrants to Shanghai hoping to qualify for a pilot scheme offering permanent residency have complained that the rules are opaque and criteria too difficult to meet, the city’s official media reported yesterday.

Just 29 and already mayor. The big question is: who is his father?

Zhou Senfeng , born in Henan and a masters graduate from Tsinghua University, was named mayor of Yicheng city, Hubei , on Sunday after receiving the unanimous approval of its 221-member People’s Congress.

Daughter and son plead guilty to perjury, claim they were trying to protect Chen

The daughter and son of former Taiwanese president Chen Shui-bian pleaded guilty yesterday to perjury charges relating to the embezzlement scandal implicating their father.

Tai tai tie-ups

Chen family admit lying

Chen Chih-chung (above), Chen Hsing-yu, and Chao Chien-ming are all suspected of perjury during a probe into alleged embezzlement by Chen and his wife.

China June Auto Sales Likely to Slide

June car sales in major Chinese cities are falling, mainly due to the fading impact of policy support.

Carmakers target global component producers

Chinese car and vehicle component makers are expected to speed up acquiring global technologies as the quickest route to expanding their operating scale, market watchers say.

Plenty to play for in targeting the wealthy

Marketers are aware of the sudden and fast-growing prosperity enjoyed by Chinese consumers, and many are already seeking to serve the wealthiest. Our study of 1,750 wealthy households highlights just how much there is to play for.

As China forecasts rise, is the joke on investors?

Almost everywhere you looked last week, people and organisations were scrambling to revise up their forecasts for China’s economic performance.

PLA to recruit 120,000 grads

Chinese military in big drive to trim ranks of first-time job seekers

Fighting big tobacco

Mainland anti-cigarette campaigners want to scrap the state tobacco monopoly but find little support for their cause

Building of dams goes on despite halt order

TV report reveals watchdog ignored

Clashes end in Shishou as curfew imposed

The standoff between authorities and thousands of residents outside a hotel in Shishou has ended, after officials imposed a curfew, reportedly made dozens of arrests and retrieved the body of the young man whose mysterious death had sparked the protest.

Chinglish

Standoff triggered by simmering anger

We’ve had enough, Shishou residents say

Five easy steps to check your mid-year portfolio

Many of the basic rules of investing are counterintuitive. For example, rising interest rates may be good news for those shopping for certificates of deposit and other short-term savings vehicles, but they are generally bad for bond funds. And here is another zinger: the lazy investor is often more successful than the hard-working one.

Market Mood

According to modern portfolio theory, if a portfolio has different assets such as commodities, bonds, currencies and stocks, risk can be minimised because different assets have different growth trajectories and are not highly correlated.

A Lesson in a Runway Crash

WILLIAM WANG
CEO of Vizio, a consumer electronics company in Irvine, Calif.
AGE 45
BIRTHPLACE Taipei, Taiwan
FAVORITE QUOTE “If you build it, they will come.”

My ex-boss... when we were selling to Gateway 2000 faster than the factory could make.

Why Inflation Isn’t the Danger

Some people with hypersensitive sniffers say the whiff of future inflation is in the air. What’s that, you say? Aren’t we experiencing deflation right now? The answer is yes. But, apparently, for those who are sufficiently hawkish, the recent activities of the Federal Reserve conjure up visions of inflation.

Why the ‘Buy & Hold’ mantra doesn’t always work

Short-term trading may not always be a sure bet, but be careful when making any long-term investments too

What being bankrupt means

Lawyers say the new Debt Repayment Scheme (DRS) gives debtors more freedom to deal with their assets and personal affairs, as compared to a bankrupt.

New scheme is turning out to be a LIFESAVER

Fewer bankruptcy applications since start of plan to help people repay troublesome debts

Debt Repayment Scheme (DRS)

What’s the difference between repaying my debts under the DRS and being declared a bankrupt?

A bankrupt is legally and publicly acknowledged to be insolvent.

China-driven commodities rally nearing end

China has been driving up commodities prices by stockpiling to prepare for global recovery, but with inventories overflowing and no end to the crisis in sight, analysts say the rally may soon end.

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.

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.

Shanghai unveils liberalised rules for new residents

Shanghai formally opened its doors to outsiders yesterday, releasing details of new rules that allow them to become permanent residents.

‘Buy China’ requirement

CHINA has imposed a requirement for its stimulus projects to use domestically made goods - a move that could strain ties with trading partners after Beijing criticised Washington’s ‘Buy American’ stimulus conditions.

China’s urban population surges to 607 million

China’s urban population has surged to 607 million, almost level with the rural population, said the latest report released by a central government think-tank.

China A-share IPOs to Resume by June 25: Source

A brokerage official told Caijing that he views Sichuan Expressway Co. (HK 0107) as the best candidate for first listing.

Combine Will to spin off unit for Kosdaq listing

China-based Combine Will International Holdings, which is listed on the Singapore Exchange (SGX) mainboard, is planning to spin off its moulds and tooling segment through a listing on the Korean Securities Dealers Automated Quotations (Kosdaq).

Free wireless surfing for another 4 years

Access speeds will be doubled to one Mbps, more services rolled out

Jet Li buys $20m Binjai Rise bungalow

Spurred to set up his charitable foundation after a narrow escape from the 2004 tsunami. He moved his family to Singapore in 2007 for his children's education

Stocks in for a dip despite liquidity rush

In just 14 weeks, half the funds that exited Asia in the 16 months to March are back

Judiciary’s ‘Instruction’ System On Trial

China’s lower courts routinely seek pre-verdict instructions from higher courts. It’s a system now getting close scrutiny.

QFII funds turn cautious after market surge

Foreign institutional investors did not open a single new brokerage account on the mainland’s stock exchanges last month, according to China Securities Depository and Clearing.

Why no one wants regime change in North Korea

The reason is simple. No matter how much neighbouring governments might despise and fear the loathsome North Korean regime, no one wants to pick up the economic bill if it collapses, forcing an early reunification with South Korea.

Analysts divided on whether recovery is well under way

Encouraging data may not be sustainable, economists warn

Roubini: Emerging Markets Will End Dollar’s Reign

The influence of emerging markets in the world economy will continue to expand and ultimately contribute to ending the dollar’s reign as global reserve currency, economist Nouriel Roubini said on Tuesday.

It’s No Bull: Bears Are Still In Control of the Stock Market

Pay no attention to that 35 percent gain in the past three months – this is still every bit of a bear market, no matter what traditional definitions say.

More Pain Ahead For US Economy: Roubini, Shiller

A rebound in key U.S. economic indicators masks an underlying malaise that will likely hamstring growth for many years and keep housing and banks in a rut, several top economists said Monday.

Earnings Could Rebound Sharply: Goldman’s Cohen

Risk aversion has eased, while inventory rebuilding and new business spending bode well for an economic recovery that could provide a dramatic surge in corporate profits by year end, Goldman Sachs senior investment strategist Abby Joseph Cohen said Monday.

Commodity Rally: Reality or Illusion

In sum, we believe the recent rally of commodity prices is partly a correction of overshooting, helped partially by updated economic data, but most importantly, a result from excess liquidity that has weighed on the dollar and brewed expectation for inflation. Whether or not the rally will persist depends on whether central banks will continue the monetary largess or tighten the tap.

Asia Tiger’s UK waste management site to start operations in July

Mainboard-listed Asia Tiger Group says that its investment in Think Environmental Limited, a UK-based waste management company, will begin operation of a waste management site this July. The site will process up to 75,000 tonnes of commercial waste annually and is expected to generate revenues of about $10.7 million a year.

Porsche Says China to Pass Germany as No. 2 Market in 3 Years

Porsche SE said China may pass Germany as its second-biggest market within three years on rising wages and demand for the $260,000 Panamera sports sedan.

Blowing a big bubble in emerging markets?

Fed’s credit expansion plan may be sowing the seeds for the next crisis

High-end brands bump into cultural challenge in China

China may become the world’s biggest luxury market in some years but cultural challenges to win customers’ hearts for certain types of products remain, industry executives said. Champagne house Taittinger said it could make high-end sparkling wine in China but the market was not ready for it yet, while Lamborghini said the country’s tradition of luxury chauffeurs, bigger than sports driving, made expansion there a challenge.

Four qualities of a good CEO

Experts single out common traits of effective leaders

Players see revival of IPO market this year

But main wave of offerings could come to market only next year

China banks now eye Western targets

Non-performing loans will not be problem in China, its bankers insist

Be aware of what could cause the trend to bend

The view for the week ahead therefore remains the same as it’s been for many weeks now - liquidity and momentum are in the bulls’ favour, but investors should stay alert for signs that could cause the trend to bend because there are actually many if you look hard enough.

Part II: Cities Rush into Debt -- and Possible Peril

Recent bond sales easily raised billions for cities in eastern provinces such as Anhui and Zhejiang. Repaying will be harder.

Mainlanders flouting HK birth policy

Local doctors linked to baby service