Archive for the ‘China’ category

Xinjiang Looks Good to Investors

September 3rd, 2012

The autonomous region of Xinjiang Uygur in northwest China is becoming an essential part of investments in China for other Asian and European countries, said officials at the second annual China-Eurasia Expo.

“Linking China to Asian and European countries, Xinjiang has become one of the most popular investing destinations for investors from other countries,” said Erkin Imirbakhi, chairman of the Standing Committee of the Xinjiang Regional People’s Congress, at the expo’s 2012 Eurasian Investment Promotion Agencies Roundtable.

“Thanks to its geographic advantage and rich reserve of resources, Xinjiang has tremendous business opportunities that attract investors worldwide,” he said.

Foreign investment in Xinjiang has already topped $3 billion with no end in sight as 500 additional foreign investors are currently looking to get a toehold in the region. At the moment the investments are growing rapidly and they are mostly made up of energy, mining and manufacturing industries.

Fixed- Base Operator Shanghai Hawker Showcased at Conference

April 1st, 2012

The Asian Business Aviation Conference & Exhibition (ABACE) held its annual event in March in Shanghai, hosted by the Shanghai Hawker Pacific Business Aviation Service Centre. SHPBASC is the single Fixed-base operator (FBO) at the Hongqiao International Airport, and the conference was a golden chance for Hawker to show its spots.

“What other FBO in the world gets to have 6,000 of its primary customers come and have an opportunity to see the facility up close and in person for three days?” said Carey Matthews, Shanghai Hawker Pacific’s general manager. “It cost us a lot of time and energy, but it is a superb opportunity to help aviation grow in China and also for us to grow in Shanghai.”

The conference was a sold-out smash hit, taking up the maintenance hangar for the displays while its ramp held a large exhibition pavilion. Also on hand were a large number of OEM chalets and the static displays of upwards of 30 large model business jets. The organizers said that next year should bring even more attendees who are attracted to the prospect of even more planes on exhibit.

It is expected that ABACE will utilize the venue for the next several years to come. Matthews says that this location can accommodate as many as 80 aircraft on the south ramp without interfering with the airports normal traffic.

Australasian Companies Prefer Asia for Investments

October 11th, 2011

According to a recent report by professional services organization, Ernst & Young, it seems that these days the most preferred region for Australasian companies to make their investments is in the Asia Pacific region.  The study by the firm was conducted in September 2011, and looked at a thousand business executives around the world.

More than 70 percent of Australasian companies would choose the Asia Pacific region to make their investments, the study found.  Looking internationally, almost half of investors would likewise also choose the same region.  Out of the entire region, the main countries investors choose seem to be: China, India, Malaysia and Singapore.

Investors Priorities

When it comes to what investors are seeking, over half of the companies are focusing on growth (slightly more than a few months ago, when the figure was just under half) and 42 percent are concentrating on preserving stability (this figure has increased 9 percent from April).  Over the same time frame, there has been a decrease in the companies looking for survival (from 18 to 7 percent) which is definitely a good thing since it is indicative that economically things are looking up and that the recession isn’t necessarily paramount on every investors mind these days.  In fact, the 7 percent figure is the lowest it has been since the study began back in 2009; clearly good news for recessional worries.

China Popularity

So why is it so popular – and this has been the case for a long time – to invest in China?  According to an article in Seeking Alpha, there are five main reasons.  First, the country’s huge population (which is almost double of that of America) results in a large customer count. Second, the amount of different types of investments available due to the sheer volume of the companies and businesses there.  Third, the national pride that exists in the country’s companies.  Fourth, the idea of sovereign protection in the country; China is working on encouraging its citizens to increase consumption in the country.  Fifth, the recent appreciation of the Yuan.

So it makes sense that investors are looking towards Asia – and more specifically China – to put their capital.

China’s Golden Week Highly Profitable This Year

October 10th, 2011

Julius Santos, the director of marketing for the Four Seasons Hotel in Macau was pleased with the upsurge in revenue during this year’s “Golden Week” holiday in China.

Santos explained that this year not only was there more tourists occupying hotel rooms, but the average length of hotel stays was also up. In addition, the hotel was able to charge more for hotel rooms per day as a result of the increase in the number of guests.

The celebration of China’s “National Day” is one week long, and a popular place to spend the holiday is in Macau, China’s only area where gambling casinos are legal. The Macau Four Seasons is located on the highly popular Cotai Strip, where Santos said that occupancy of the Four Seasons was “pretty much 100 percent.”

Other hotels in the area reporting equally successful “Golden Weeks” were the Wynn Macau Ltd. and the Mandarin Oriental, which also described full bookings for the week.

Macau is near to Hong Kong, and was under Portuguese rule until Portugal returned the city to China in 1999.

“Business was definitely stronger,” Santos said. “The majority of the city was booked up during Golden Week.”

China’s Political Impact on Washington and Vice Versa

October 10th, 2011

The China Currency Bill – that is set to reach the Senate on October 12, 2011 – would result in tariffs on China and other countries in the Asian region.  The rationale behind this is that their currencies have been depressed in an effort to boost exports.  Thus these countries now have to pay the price. But ultimately, critics say that it would not make sense when analyzing government trade data.   It could negatively impact the American economy, resulting in job loss as well as economic surplus from Chinese trade and business in the country when China stops bringing in its business in revenge.  Everything has its consequences: Washington needs to seriously weigh up everything before reaching a decision.

America’s Over-Dependency on Asia

September 7th, 2011

At least the federal government is going to be getting America out of its latest pickle.  At the beginning of October it promise that credit would continue to flow through the country’s mortgage system that is not faring so well.  This move occurred with the fed government’s support of Fannie Mae and Freddie Mac which led to renewed concerns about just what poor shape the country’s economy is in and questioned if it has become way too reliant on the investments of regions such as Asia.

Of course, it’s been known for a long time that Asia is a more stable investment region than the States.  Individuals and large corporations like Wal-Mart and Yum Brands have recognized this fact for a long time already and have been making substantial investments throughout the region, mainly in China since that country seems to have way greater potential than the United States of America.  But if US companies keep looking outside for success, America will never recover. And then it becomes a bit of a chicken and egg situation.

America is currently very reliant on Asia for its economic failure.  But while the region has been bailing her out, the real way for America to become independent again is to do just that – stop being so reliant on other regions and start investing in its own.

 

The Rise of Asia

August 23rd, 2010

The stock market in Asia – Pacific region is unique in the world to keep green in most of the trading week , except week session key swing by the action from Europe and America .

As of the week , the index MSCI Asia – Pacific increased 0.4 % to 118.29 points , after declining 3.7 % in the previous week. Index is down 8.4 % from the peak years of the date 15/04/2010 . Shanghai ‘s Composite Index of China increased 1.4 % . Nikkei 225 down 0.8 % in Japan . South Korea ‘s Kospi rose 1.7 % .

Although Japanese economic decline in the second quarter , but the opportunities to create momentum for China ahead . According to data released Tuesday by the Japanese 16 / 8 , the total domestic product ( GDP ) of Japan is 1286 billion dollars , lower than the figure of 1335 billion U.S. dollars in China.

Along with the change of his two economies Japan, China , a number of countries and territories in Asia last week has emerged stronger . Central Bank of Malaysia , Zeti Akhtar Aziz said the country’s economy grew 8.9 % in quarter 2 / 2010 over the same period last year and expected to grow 6 % in 2010.

But according to the statistical offices of Taiwan (China ) , GDP quarterly 2 / 2010 of the area has grown 12.53 % over the same period last year . Quarter 1 / 2010 , the rate of economic growth in Taiwan reached 13.71 % . Taiwan ‘s exports could grow more than 30 % this year .

Thai Prime Minister Abhisit Vejjajiva Monday 20 / 8 expressed confidence that the export sector will help boost gross domestic product ( GDP ) this year of at least 7 % . Mr. Abhisit said Thai economic growth of 10% in first 6 months of 2010 primarily due to strong export growth .

Quarter 2 / 2010 , European economic growth 1 % quarter U.S. economic growth 1 / 2010 the first published data is 2.4 % and could be adjusted downward to 1.4 % last week , can assert Asian economic growth will be the first ship of the global economy in 2010 .

Britain’s Telegraph newspaper recently described a series of statistical data was very positive about the growth of the Southeast Asian country . Accordingly, in 2010, Singapore will achieve economic growth record of 15 % , 7 % followed by Malaysia , Indonesia, Philippines 6.6 % and 6 % .

The newspaper said that following the global economic downturn 2008-2009 , some Southeast Asian countries have recovered quickly . This area is becoming attractive investment in the context of Vietnam and Thailand is rising next to the economy is considered development in the region such as Singapore .

According to the newspaper , the national investment funds and individual investors now want to choose Asia and Southeast Asia to increase investment by the ability to achieve high profits . Last year, Fidelity Investment Fund has spent 25% of investment in Southeast Asia , while Aberdeen and First State Fund respectively for 35 % and 25 % investment in the region.

Meanwhile, today 19 / 8 , the Asian Development Bank ( ADB ) has published a report said the middle class (the consumers from U.S. $ 2-30 per day ) of the rapidly expanding Asia will be able to act as leading consumer and help re- balance the economy .

This report is in a special edition of the main indicators for Asia and the Asia – Pacific 2010 . Accordingly, studies show that Asian consumers consumption around 4300 billion dollars , equivalent to one third of the consumption of industrialized countries ( OECD ) .

Agricultural Bank of China listed A shares to secure this issue price

July 15th, 2010

Agricultural Bank of China A + H shares will be listed in the Shanghai and Hong Kong listing for 15 and 16 days. Investors were worried that stocks were listed below their market value on the first day that the Agricultural Bank issued the price. Head of the office Sheng Chuannong urged investors not to hurry to sell .

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China Ends Yuan’s Special Connection to the Dollar

June 20th, 2010

China- In what maybe the most important trade and investment news in the last week, China has done what many had felt they were going to do for some time…end the Doallar’s exclusivity in relationship to the Yuan.  Below is the press release from the People’s Bank of China:

Further Reform the RMB Exchange Rate Regime and Enhance the RMB Exchange Rate Flexibility

In view of the recent economic situation and financial market developments at home and abroad, and the balance of payments (BOP) situation in China, the People´s Bank of China has decided to proceed further with reform of the RMB exchange rate regime and to enhance the RMB exchange rate flexibility.

Starting from July 21, 2005, China has moved into a managed floating exchange rate regime based on market supply and demand with reference to a basket of currencies. Since then, the reform of the RMB exchange rate regime has been making steady progress, producing the anticipated results and playing a positive role.

When the current round of international financial crisis was at its worst, the exchange rate of a number of sovereign currencies to the U.S. dollar depreciated by varying margins. The stability of the RMB exchange rate has played an important role in mitigating the crisis´ impact, contributing significantly to Asian and global recovery, and demonstrating China´s efforts in promoting global rebalancing.

The global economy is gradually recovering. The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability. It is desirable to proceed further with reform of the RMB exchange rate regime and increase the RMB exchange rate flexibility.

In further proceeding with reform of the RMB exchange rate regime, continued emphasis would be placed to reflecting market supply and demand with reference to a basket of currencies. The exchange rate floating bands will remain the same as previously announced in the inter-bank foreign exchange market.

China´s external trade is steadily becoming more balanced. The ratio of current account surplus to GDP, after a notable reduction in 2009, has been declining since the beginning of 2010. With the BOP account moving closer to equilibrium, the basis for large-scale appreciation of the RMB exchange rate does not exist. The People´s Bank of China will further enable market to play a fundamental role in resource allocation, promote a more balanced BOP account, maintain the RMB exchange rate basically stable at an adaptive and equilibrium level, and achieve the macroeconomic and financial stability in China.

Many pundits have already begun commenting on this move and the possible consequences for the United States whose economy is close tied to China’s.  Of course with all the “guesses” one thing is clear and that is China is recognizing more and more that it need not be shackled by economies that appear to have hit a decline.  For those who are investing in China, this bodes very well for the future.

Shenzhen Fundamentals Replaces Four on the 60-stock Index

June 20th, 2010

China- The Shenzhen Stock Exchange, China Securities Index Co., Ltd. has announced that the Shenzhen  Fundamentals will be in the Shenzhen stock index series for the first sample adjustment . This adjustment officially goes into force on July 1, 2010.

Shenzhen Fundamentals is set to replace four on 60-stock index, which includes Asia Standard construction, BOE A, and into the new technology into the index and gold wind, deep Chiwan A, * ST vanadium and titanium, and Shandong Electric Power Zhangze; all of which were transferred out of the sea-based index.

The Shenzhen 120 Index iis making some changes as well.  The 120 is set to replace 12 fundamentalstocks, Xugong, Yang shares, stocks and securities into the index of the Northeast, deep Chiwan A, Eastern Market, long voyage was transferred out of Phoenix and other indices.

The Shenzhen 200 Index is set to replace 19 fundamental stocks, shares Yang, Sui Hengyun A, all music and other stock into the index, Shenzhen Chiwan A,, mid-A, CITIC was transferred out of the sea till the index.