Bankruptcy Law in China

China and India developments

China and France

In Wuhan, a city of 10 million people along the Yangtze river, Chirac laid the foundation stone for a new Peugeot-Citroen factory, while urging French industry chiefs to further expand their "strategic alliance" with China.

The new Peugeot-Citroen factory, a 50-50 joint venture with China's Dongfeng, is expected to begin production in 2009 and will tap into China's voracious appetite for new cars with an eventual annual production capacity of 150,000 vehicles.

On Thursday, Chirac spent more than an hour meeting with Chinese President Hu Jintao in Beijing, after which the two nations announced that Airbus had secured an order for 150 A320 aircraft that could be worth about 10 billion dollars, based on the jet's current list price.

Airbus also agreed to set up an aircraft factory in the city of Tianjin, with both announcements seen as giving the European giant a much stronger foothold in the world's most lucrative aviation market.

A total of 13 new deals with French industry were signed Thursday in Beijing, including a 1.5-billion-dollar contract involving Alstom SA helping to build 500 Chinese freight locomotives.


Source: http://www.channelnewsasia.com/stories/afp_world_business/view/238145/1/.html



China Banks listed in HK

ICBC's share sale, the largest in history, was well received by the markets. China's top bank made a strong debut in Hong Kong Friday, closing 14.7 percent higher.


The flotation followed the overseas listings of Bank of China and China Construction Bank, and was the latest step in China's struggle to get its lenders up to global standards.

The government injected a total of 60 billion dollars into the three listed banks, brought in strategic investors from abroad and undertook shareholding reform in preparation for their flotations.

Source: http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/238175/1/.html






Reliance to open first stores of 'Indian Wal-Mart'
Posted: 30 October 2006 0633 hrs


Photos 1 of 1

A worker puts up a Reliance Industries' poster



HYDERABAD, India : Major company Reliance Industries said it would open a series of stores here this week with the aim of building an Indian version of Wal-Mart, the world's largest retail chain.

The 11 "neighbourhood" stores, to be called Reliance Fresh, will sell groceries and other goods from Friday as a pilot project to "understand customer needs," Reliance said.

"We are starting a pilot journey of listening to customers and learning from them," said Mukesh Ambani, chairman of Reliance Industries whose main business is petroleum refining.

Ambani has said he wants to make the company's new stores arm, Reliance Retail, a "Wal-Mart in India" and has set an annual sales target of 25 billion dollars by 2011.

Reliance, India's biggest company by market capitalization, plans to transform the retail landscape.

It will invest seven to eight billion dollars in setting up its stores arm that will cover 1,500 Indian cities and towns in the country of 1.1 billion people, said a senior Reliance official.

Source:
http://www.channelnewsasia.com/stories/afp_asiapacific_business/view/238303/1/.html

Baidu on the upswing? 061030

Apparently Baidu is on the upswing again.

I was wondering why it should go up.

last check was 89 USD.

The most recent news on thhe Pacific Epoch is that Baidu has partnered with The9.


But I did'nt know what the The9 is.


Apparently it is a company that makes Chinese RPG games.

its company link is here

Oh and The9 is listed on the Nasdaq. Indicating that it is not a "chinese" company.

Price is hovering at about 23.51 USD ???


This was partly susprising as Baidu just had a change in leadership

Gulf Banks Emirates Bank

Gulf Banks are setting up shop in sunny Singapore.

The latest is the Emirates Bank (Dubai based - ROE last year was 25.5%) at Raffles Place.

This follows Qatar National Bank, Doha Bank.

Both like the UAE(United Arab Emirates) are members of the Gulf Cooperation Council

The only Arab bank with a wholesale licence here is the National Bank of Kuwait.

Source: The Business Times 061030

Tencents QQ

Rumours on the ebay equisition (26 Sept 06) seems to be untrue for now.

060929

tencent also does some gaming, but it seems to be promotional stuff for a yogurt drink

As tencent is gearing up to rivals ebay and Alibaba with 100 million RMB into internet services.

Much will depend on what services are brought up. I for one am very interested ;)



Now this one is interesting in 061011 tencent sues MMIM technologies for using its QQ network.

This is interesting as we see a mirror from the AOL, yahoo and MSN networks.


I believe the main difference will be in the agreements.

MSN, AOL, and Yahoo open their networks I believe. As it was in their interest to do so as at that time they needed critical mass.

The question is mainly whether QQ already has critical mass. if it does, MMIM may be headed for a brick wall with its appeal to the public that open networks are good for everyone.

Essentially true, but is it compelling for QQ to make it so?

Best to rely on market forces =)

Or alliance with the MSN, AOL, Yahoo, ICQ, Jabber, GAIM, Google talk users =)

One should probably look out for PICA, which is a product by MMIM. mcommerce is on the way in.

I am alittle confused by the article title though, as it claims copyright infringement. ?? Seems like unauthorised usage of the network, but copyright infringement? Where so?


061011

tencents has also partnered with ESPN to broadcast the 2006 UEFA Championship League

apparently Qlive is the tool used to watch, and audiences can chat. Some cool!


and in 061023

tencents has declared to use 100M RMB to use to build and internet research institute. Hmmmm ?? Looks like it will be a pure research and trend and analysis machine. One wonders if 100M RMB is enough or even needed. Its hard to say.

061023

tencents is also looking to aquire the copyright of a song called QQ love to be used as a theme song. they are willing to pump 1M yuan into it. hmmm. Its not clear if it is money spent yet.

Chapter 11 no finale for Silicon Graphics

Silicon Graphics Inc., the pioneering computing company that helped create the special effects on blockbusters such as "Jurassic Park" and "The Matrix," has emerged from bankruptcy, the company said Tuesday.

Why China might still be worth entering

This article is sensible and down to earth.

Quick Snap From Bloomberg

Luxury Movement of the Chinese:
China's Wealthy Splurge $63 Million at Luxury Show in Shanghai

Oct. 16 (Bloomberg) -- China's wealthiest lavished 500 million yuan ($63 million) on Hennessy X.O spirits, Porsche sedans, South African diamonds and other luxury goods during a show in Shanghai, double the value of transactions a year ago.

Top Marques, a four-day show that has its origin in Monaco, attracted 12,000 visitors last week with exhibits of 70 luxury brands, including $300,000 De Bethune watches and $426,983 Lamborghini sedans.


Akzo and Pfizer



Intel News




Retailing in China - Walmart moving deeper into China - Good summary of retail in China as well



Roche Holding AG, the world's biggest maker of cancer medicines, said third-quarter sales rose 19 percent as doctors prescribed more of its tumor-fighting drugs and governments stocked up on the Tamiflu influenza treatment. - biotech

Chinese Etiquette for Business Success

Interesting tips to succeed with etiquette.



- Funny tirade on WTO (essentially misinformation on China)

Outsourcing in China thoughts, laws and perspectives

An interesting article on outsourcing in China.

The main crux seem to be that one must think in functions, that the question now is not to question "should we outsource", but where, what, how to outsource.

Essentially I think the idea is to think and plan carefully when addressing oursourcing.


This seems systematic, but as a business I think it is important to look at all cost entities, and then decide from there.

Inevitably this is a value chain analysis problem.

Managing you inventories, resources and business processes intelligently rather than going with the herd will take you further. Much much further.

Another interesting article on outsourcing is found here

This article addresses how to protect yourself when you outsource work or processes to China. Legal implications that will matter etc.. Very good reference for a checklist.


In sum,

1) Ensure you have the patents secured in your native country.
2) Register your trademarks or patents in China, this protects your future entry and counterfeiting from China.And most of all it prevents someone from registering YOUR trademark (thereby making it his =))

3) Written agreement to protect your knowhow this should address non-competition, confidentiality issues. This will have to be enforced by contracts, possibly NDAs

4) Don't pay unless you are sure the quality is met. This may require more inspections. You have to take the lead.

5) OEM agreements should be comprehensive. the agreement should address all issues comprehensively, essentially you have to cover all bases.

Please read the original article as it ellicits the notions much better!


Now in writing this short tirade, in another article by the same blog. I find this quote most worthy to take away if you learn nothing else.


"So what is a company to do? First off, THINK. That's right, think. Secondly, do not do anything you would not do in any other country. Just because your Chinese partner and/or your Chinese partner's lawyer tell you this is how things are in China does not mean you have to believe them and it certainly does not mean you have to abandon your common sense.

I am not going to get any more specific in this post because I am convinced that if American companies would follow these two simple admonitions, their sending money into black holes overseas would nearly cease. "

That is the essence of business. Like Buffets says.

Rule no. 1 - Don't lose money
Rule no. 2 - See rule no. 1







As always the devil is in the details.

Shareholding Reform (Almost) Completed

Reform of the Chinese stock market has been going on since 2005 , but news is just out (from China Daily) that the majority of listed companies (1,104, representing over 90 percent of total market capitalization) have now completed shareholding reforms to convert “non-tradable” state shares into tradable ones.


News Source

WHAT IS VALUE INVESTING?

Value investors seek to buy stocks trading at prices well below the estimated value of the underlying businesses. We believe that, in the long term, the prices of these stocks will rise as the market recognizes their true worth. By holding these stocks for three to five years, we believe they will help us deliver favorable long-term results with a margin of safety.

Buffett Alerts Managers to Temptation of `Accounting Gimmicks'

Billionaire investor Warren Buffett told senior managers at Berkshire Hathaway Inc. to resist the temptation to use ``accounting gimmicks'' to manipulate earnings as U.S. regulators broaden their probe into stock options backdating.

Maven: Make a Bet (Online) on Ingenuity

The Business Press Maven's clarion call is for the business media to start bringing a working knowledge of stock market history to what they say in the public square. But I'd probably be better off just laying down for a nap. That my life's work amounts to a hill of beans wouldn't be such a big deal, but knowledge of stock market history would give business journalists a more accurate feel for the future, which would give you as an investor the best chance of turning what you read, see or hear into profits

Why Edmund Phelps' Economic Theory Matters

The newly minted Nobel Prize winner helped establish the relationship between unemployment and inflation—and what the Fed can and can't do about jobs

MySpace For Baby Boomers

Monster.com founder Jeff Taylor thinks seniors should have a network, too.

Stocks: Too Far, Too Fast?

With the strong performance by S&P 500 over the past few months, it's possible that the "rubber band" is starting to get stretched a bit too far

Europe's Young Entrepreneurs

With promising ideas and an inherently international outlook, more young Europeans are aiming for startup success. These 15 have found it

More gaming firms prepare to flee U.S. ahead of ban

LONDON (Reuters) - Britain's Leisure & Gaming and payment processor FireOne joined the list of companies fleeing a U.S. ban on online gaming on Tuesday, as signs emerged that Europe is to open up its gambling market.

Leisure & Gaming said it would stop serving U.S. gamblers if President George W. Bush signed into law a ban that was unexpectedly passed by Congress at the start of this month.

Puda Coal Inc. F2Q06 (Qtr End 8/30/06) Earnings Call Transcript (Seeking Alpha)

Puda Coal, Inc. (OTC : PUDC)
F2Qo6 Earnings Call
August 30, 2006 4:30 p.m. EDT

China Mobile: Making Money from China’s Emerging Middle Class

My experience in shopping for a new phone reminded me of the importance China’s 416 million mobile phone users place on mobile phones. As buying a home or a car like GM’s (GM) Buick still remains out of the reach of most Chinese consumers, they instead put their aspirations into buying a top mobile phone where even a $250 USD one is considered cheap.

Ubuntu Takes a Page from Red Hat's Playbook

David Wolf submits: CNET has a decent article on Friday by Stephen Shankland about how Canonical, the company behind Ubuntu Linux, plans on building a global business by giving away its software and selling service, a strategy originally adopted by the current major Linux marketer, Red Hat (RHAT), which it has since rejected. The article takes a rather dim view of the approach, questioning whether that's going to make it for Mark Shuttleworth and his band of South African software revolutionaries.

Laugh on, CNET, but in China I don't think anyone would so much as giggle. As the nice folks over at Microsoft (MSFT) and the Business Software Alliance will happily tell you, it's proving exceptionally hard to talk people in China into paying for software that can be downloaded in a zip file or shrinkwrapped and sold at a counter. I'm not sure it's going to get any easier.

An interesting post on the Stock Exchange of Hong Kong SEHK

I found it amusing and rather informative.


Then again I am an absolute green horn at this.

Microsoft Unleashes Vista RC2 for Testing

Microsoft (Nasdaq: MSFT) Latest News about Microsoft on Friday rolled out Windows Vista Release Candidate 2 (RC2), the new version of the Windows operating system, to technical testers with a pledge to make the final Vista version publicly available soon.

Vista Build 5744 is expected to be the last interim release before the software is approved for manufacturing. However, the same was said about RC1.

Google to Stream Warner, Sony Music Vids

Google marks a busy Columbus day by announcing it has just signed agreements with media giants Warner Music Group and Sony to stream the respective labels’ music videos free to users through Google Video. The videos will be supported by advertising and available as $1.99 paid downloads starting this month.

It’s Official: Google to Acquire YouTube for $1.6 Billion

Apparently, Mark Cuban’s comments fell on deaf ears. A week of intense speculation has finally come to an end Monday, as Reuters and Yahoo are both announcing that Google officially will acquire video-sharing darling YouTube for $1.6 billion in stock.



Apparently it is in stock



From bloomberg

Bodisen Biotech: The Little Fertilizer Company That Could

Investors in Bodisen Biotech, Inc. (BBC), a manufacturer of organic fertilizers and pesticides targeting Chinese agricultural markets, saw the value of their holdings’ lose about 17% last week, as the Company’s past relationship with a ‘colorful’ adviser to emerging Chinese companies came to light.

Morgan Stanley Acquires Small Commercial Bank in China

Seeking to expand its China operations, Morgan Stanley (MS) acquired Nam Tung Bank, a small commercial bank located in the southern city of Zhuhai from Bank of China for an undisclosed amount.

Harrah's Scraps Singapore Plans

Harrah's (HET - news - Cramer's Take) decided to scrap its Singapore casino bid but said it remains committed to entering the Asian market.

Was MySpace Sold on the Cheap?

One of the site's co-founders offers new evidence that parent Intermix Media knew the $580 million it accepted from News Corp. was too low



When News Corp. (NWS) Chief Executive Rupert Murdoch paid $580 million for Intermix Media, parent of social network MySpace.com, talk was he overpaid. MySpace lacks a business model, and the cool kids who flock to the site will hit the road as soon as it sells out to Big Media—or so the argument ran.

GM: Things Are About to Get Nasty

So it begins. Billionaire Kirk Kerkorian, who owns 9.9% of General Motors' (GM) stock, may be drawing up battle lines for a proxy fight with the troubled automaker

Six Ways to Limit Uncle Sam's Take

According to fund industry data, roughly two thirds of mutual fund assets are kept in taxable accounts. Yet all too many investors don't pay enough attention to the tax implications of their investment decision-making.

Jobs Cleared

BOSTON (Reuters) - Apple Computer Inc.'s board cleared Chief Executive Steve Jobs this week of any misconduct over stock options accounting problems and Wall Street cheered him for taking broad responsibility.

Evaluating A Company's Capital Structure

For stock investors that favor companies with good fundamentals, a "strong" balance sheet is an important consideration for investing in a company's stock. The strength of a company' balance sheet can be evaluated by three broad categories of investment-quality measurements: working capital adequacy, asset performance and capital structure. In this article, we'll look at evaluating balance sheet strength based on the composition of a company's capital structure.

Trading Is Timing

Trading always comes down to timing. To truly appreciate this, we simply need to note that one of the biggest gains in stock market history occurred on October 19, 1987, during the day of its greatest crash. On that day, stocks had declined a mind-harrowing 23% by the end of the day, but at around 1:30pm, they staged a massive rally that saw the Dow Jones and S&P indexes verticalize off the bottom, rising more than 10% before running out of steam and turning down to end the day on the lows. While most traders that day lost money, those who bought that bottom at 1:30pm and sold their positions an hour later were rewarded with some of the best short-term gains in stock market history. Conversely, traders unfortunate enough to have shorted at 1:30pm only to cover in panic an hour later held the dubious distinction of losing money on their shorts during the day of stock market's greatest decline. If nothing else, the stock market crash of 1987 proved that trading is all about timing. Timing is hard to master, but you can still capture significant gains on an ill-timed trade if you follow a few simple rules.

Using Historical Volatility To Gauge Future Risk

Volatility is critical to risk measurement. Generally, volatility refers to standard deviation, which is a dispersion measure. Greater dispersion implies greater risk, which implies higher odds of a price erosion or portfolio loss - this is key information for any investor. Volatility can be used on its own, as in "the hedge fund portfolio exhibited a monthly volatility of 5%," but the term is also used in conjunction with return measures, as, for example, in the denominator of the Sharpe ratio. Volatility is also a key input in parametric value at risk (VAR), where portfolio exposure is a function of volatility. In this article, we'll show you how calculate historical volatility to determine the future risk of your investments. (For more insight, read The Uses And Limits Of Volatility.)

European Stocks Climb to 5-Year High in Week; Corus, BBVA Gain

Oct. 7 (Bloomberg) -- European stocks rose this week, sending the Dow Jones Stoxx 600 Index to a five-year high, as takeover speculation picked up and oil prices retreated.

Corus Group Plc, a U.K. steelmaker, and lender Banco Bilbao Vizcaya Argentaria SA gained as investors bet they may be bought. Air France-KLM Group led airlines higher as crude fell below $60 a barrel. Tesco Plc, Britain's biggest retailer, jumped after reporting record earnings.

Capitalia, Italian Bank Shares May Falter, Weighing on S&P/MIB

Oct. 6 (Bloomberg) -- Shares of Italian banks have become expensive after a takeover-driven rally this year and may fall as investors decide they aren't worth the price.

``The Italian market will lack one of its main drivers going forward,'' said Gian Paolo Rivano, who helps manage about $256 million at Gesti-Re in Milan. ``The industry has performed very well and many bank stocks already price in a speculative scenario of mergers and acquisitions.'' He sold bank shares including Sanpaolo IMI SpA and UniCredit SpA last month.

Berkshire Stocks Test $100,000 Mark

wow...


I wish to be that RICH one day lol



The stock with the highest face price in the world tested $100,000 mark Thursday, as the price for a Class A share of Berkshire Hathaway Inc. (BRK-A) briefly surpassed $100,000. Berkshire Hathaway is run by Warren Buffett, the greatest investor ever. Yesterday the shares closed up $1,296, or 1.3%, at $98,995 on volume of 830 shares, more than twice the average daily volume. During the session, shares reached $100,100 - an all-time high.

Buffett is eyeing Chinese Banks?

Buffett made money on PetroChina. Is he also looking at Chinese banks? Shares of China Merchants Bank (3968) and Bank of Communications (3328) climbed Tuesday to all-time highs since listing, as heavy trading in warrants drove the lenders. China Merchants Bank, the mainland's sixth-largest lender, closed at HK$11.72, the highest since its September 22 listing and a jump of 6.74 percent from Friday's close. A total of 209 million shares changed hands.


original article here

Bank supervisors from 120 countries endorse updated international principles for effective banking supervision

At the International Conference of Banking Supervisors held in Mérida, Mexico, on 4–5 October 2006, bank supervisors from central banks and supervisory agencies in 120 countries endorsed the updated version of the Basel Core Principles for Effective Banking Supervision and its Methodology. They declared their continued support for the implementation of international minimum standards for bank supervision in all countries.

The Core Principles were originally written and agreed in 1997, being one part of the global response to strengthen the international financial system in the wake of the financial crises that occurred during the 1980's and 1990's. The 25 Principles are globally agreed minimum standards for banking regulation and supervision, covering a wide range of aspects including areas such as licensing, ownership of banks, bank capital adequacy, risk management, consolidated supervision, ways to deal with problematic situations in banks, and the division of tasks and responsibilities between home and host authorities. The Core Principles Methodology, which was developed in 1999, provides further details and guidance to assist in the interpretation and assessment of the 25 Core Principles.

Global community of banking supervisors enhances the Basel Core Principles and strengthens supervisory collaboration

Banking supervisors from over 120 countries today reiterated the importance of continued improvements in banks' governance and management of risk, as well as confirming their determination to improve supervisory cooperation and information-sharing.

The fourteenth International Conference of Banking Supervisors (ICBS), organised jointly by the Mexican National Banking and Securities Commission (CNBV) and the Basel Committee on Banking Supervision, was held this week in Mérida, Mexico. After being welcomed by Mr Jonathan Davis Arzac, President of the CNBV, more than 300 senior representatives from 150 supervisory authorities and central banks heard addresses from Mexican Finance Minister Francisco Gil Díaz and Guillermo Ortíz Martínez, Governor of the Bank of Mexico.

The ICBS programme focused on two main themes:

Founder Group

Their website (in chinese)
English version??

China's Huawei Gives it Up for Vodafone

London cellular giant Vodafone (VOD) has unveiled its latest phones, and they're made in China. On one level, that's not a huge surprise. After all, Chinese factories now manufacture tens of millions of cell phones.

Huawei Technologies

Google Finance did not turn up much... I think if it is listed anywhere it is in Hang Seng ... hmmm



huawei 3com
huawei

More info on Huawei






Huawei has a deal with Dutch mobile operator Telfort BV.

Europe is the birth place of 3G telephony???


Also note that Huawei beat companies like Ericsson to win the deal.

Huawei has been financing itself with bank loans

On December 27 (2005 I presume), Huawei signed a financing agreement with China Development Bank (CDB) through which CDB will support Huawei's international expansion with a credit facility of US$10 billion for both Huawei and its customers abroad in the next five years.



Full information from this link



November last year Huawei says no listing plans yet


The issue of IPO has also been mooted back in 2004


--------------------------



wow this update is like 2013 01 14


this post was way back in 2006. scary. Anyways note really an update but i guess I should do some research work and get back on track.

seeyas ppl.

Two Tech Deals for China. One In, One Out.

China, as I have previously reported, is making waves in the technology sector. Therefore it should come as no surprise that Chinese technology companies are hitting the headlines with major international deals. Step up Huawei (sending out) and Founder (bringing in).

Corruption in China

A lot of attention has been paid in the last couple of day to high profile Chinese politicians being arrested for corruption. Most prominently, Chen Liangyu, Shanghai Party boss, has been detained. Leaders in charge of Party discipline promise that those feathering their own nests will be dealt with "seriously:"

Are Some US Firms Violating US Law In China?

There must be US companies involved with the Shanghai scandals, but I doubt we will ever hear of any. I say this because I do not see this "purge" as having much to do with corruption. I view it as having everything to do with politics, China-style. The Washington Post and my friend, James Na, over at the Korea Liberator, both see it all as just a turf war over patronage and influence--and I agree. Beijing is simply flexing its muscles and showing the "Shanghai people" who is really in charge.

China to develope accountancy firms

A plan to develop “national champions” that could challenge the dominance of the Big Four international (i.e. foreign) accounting firms in China was reported here in June. Now it is reported (by Forbes and the FT) that a draft policy paper has been released by the Chinese Institute of Chartered Accountants (CICPA), and that the aim is to:

“develop at least 10 accountancy firms capable of comprehensive, international standards of service within the next decade in order to reduce its reliance on foreign groups”.

Protecting Your IP In China

Alicia Beverly, Chief IP (intellectual property) strategist with IP Wealth, an Australian company, "based on the Gold Coast in Queensland, [that] specializes in identifying, protecting, managing and monitoring intellectual property assets for clients around Australia and overseas," wrote a helpful article entitled "Protecting and Enforcing Your IP Rights In China."

U.S. Company Bribery In China: Violate The Law, Go To Jail

Wolf wonders whether China information gleaned from Lucent by the U.S. government will lead to more investigations of U.S. companies doing business in China. Wolf talks of having "regularly" heard "rumors of shady deals and payoffs, stories of children of prominent Chinese officials setting up technology consultancies to act as bag-men between U.S. tech firms and telecommunications operators."

China Retail GOME Bestbuy

The wonderful world of China retail is never short of a story or two, and the ever-competitive appliance sector is a case in point – and includes educational elements with broader application.

Research company Access Asia reports that strong appliance sales growth in China has been achieved alongside lack of pricing controls (price competition being common corporate killer), and that “it finally appears that the long awaited shakeout in the industry is occurring” (China’s provincial industry structure has often resulted in highly fragmented markets, but this is changing).

Shangri-La And Charging Regular Rates To Chinese Businesses

"By the year 2020, it is expected there will be more than 100 million Chinese travelers," he said. "Can you imagine the impact? Japan has made a tremendous impact in the industry and it never reached more than 17 million travelers.

"If you go back 30 years ago," Angelini continued, China is "exactly the way the Japanese were, traveling in groups around a little flag, negotiating the lowest rate. But look where the Japanese are now: in top hotels and big spenders. The Chinese market will be much stronger and develop much faster."

China National Day Celebrations

October 12 Conference In NYC On China's Financial Markets

The Asia Society and mega law firm, O'Melveny and Myers, will be putting on a conference next week on China's Financial Markets. The conference will take place on October 12, 2006, at The Four Seasons Pierre Hotel, on Fifth Avenue at 61st Street, in New York City. The all-day conference is broken down into four panel discussions: Developments in China's Banking System, China's Domestic Capital Markets, Overseas Listings of Chinese Companies and The Rise of M&A in China.

The keynote address will be given by Dr. Harry Harding, Director of Research & Analysis for Eurasia Group, one of the world's leading global political risk advisory and consulting firm.

China's Nanotechnology Research -- An Update

The TNTlog, which describes itself as "Taking The Rational View of Nanotechnologies Since 2000," picked up our post on China's growing nanotechnology research and, in a post entitled, "The Nanotech Dragon," pretty much pooh-poohed it -- probably rightfully.

Shanghai Corruption, Beijing Battles And The Fight For China Leadership

Oct. 9, 2006 issue - The ouster of Shanghai Communist Party chief Chen Liangyu last week could have come straight out of a Hollywood mafia flick. The frictions between the bumptious Chen and President Hu Jintao began more than two years ago—sparked by corruption concerns in Shanghai and serious philosophical differences between the two men over economic policy. But Hu couldn't remove Chen hastily. The party boss is close to Hu's predecessor, former Communist Party head Jiang Zemin, the godfather of the so-called Shanghai faction to which Chen belongs.

China As "Non-Event"

I think, China. Two things about China are generating a lot of hype. One hype is that China is going to take over the world. Last December, China recast its GDP to almost $2 trillion. But the US GDP is moving up to $13 trillion and the US is not going to stop growing. In those terms, it will take 30-40 years for China to even catch up. Even in terms of standard of living, it’s quite another matter. So it’s a big hype that China is going to get you.

In China -- Culture Matters

In marketing a consumer product, knowing the culture can and usually is of crucial importance and it seems some Western companies are forgetting this in marketing their products in China. KFC is the latest to fall victim to a cultural faux pas in its marketing.

Is China Ready To Be A Major Force In IT Outsourcing? -- Yes And No

Just came across an interesting debate in Information Week's Optimize Magazine on whether China is ready to become a major force in IT outsourcing. The magazine asks the question and received "opposing' answers from the two professors questioned.

Peter Williamson, a professor of Asian business and international management at INSEAD in Singapore answers,"no," because a fragmented industry and a dearth of English speakers are holding China back for now." Go here for that article.

Law Drafting Goes Postal

Another day, another draft law. This time it is for the (eighth draft of the) Postal Law (via FT) and, as usual, there is plenty of feedback in the market suggesting that it would create:

“unfair competition violate trade agreements and destroy non-state businesses employing hundreds of thousands of people”.

It is reported that the law would give China Post a “total monopoly over deliveries of parcels weighing less than 150g, which account for more than 90 per cent of the intra-city business of private delivery companies”. In addition, it is thought that it would prevent foreign and private firms from handling business from online retailers. Other measures are also thought to benefit China Post, with tightening of “licensing controls and compulsory payments to subsidise universal postal services”.

The EU’s IP Challenge

Intellectual property rights (IPR) issues must be the thing I am asked about most often in relation to China (and I have recently covered it here, here, and here). So it is no surprise when (as Financial Express reports):

“Only 9% of 1,000 companies represented by the European Chamber of Commerce in China haven’t been affected by trademark or copyright theft…Violations of copyright and other rules designed to protect inventions and brands from illegal imitation account for as much as 360 billion euros in unlawful trade each year, depriving legitimate business of income, according to the EU. About 70% of counterfeited goods imported into the bloc originate in China, the EU has said.”

Rumour? ebay in talks with tencent (QQ.com)

wow... I just discovered QQ ... actually lots of my students are using QQ...

My classmate uses tencent ... I did not know they were the same company lol

Google in talks to buy YouTube for $1.6b

Hooooooo yah!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!


gogo Google!




SAN FRANCISCO - The YouTube video-sharing website and Google internet giant sternly declined to comment Friday on reports that they were discussing a 1.6 billion dollar takeover by Google.

YouTube workers ejected a television news camera crew that made its way into the popular website's non-descript office in the heart of San Francisco



More here

US-China Business Council -- 2006 Survey Says...

Last month, the US-China Business Council (USCBC) published the results of its annual member survey, highlighting the gains US businesses have made in China, along with the obstacles they still face.

China's Trademark Laws -- Simple And Effective

The recently instituted China Trade Law Report just published an article I wrote on securing trademarks in China, entitled, "China's Trademark Laws -- Simple and Effective." The gist of the article is what I have been saying in this blog since its inception: it pays to register your trademarks in China.

Everything You Always Wanted To Know About Chinese Arbitration Law

Peter Yuen, an attorney in the dispute resolution department of Freshfields Bruckhaus Deringer, (one of the world's biggest and best law firms) recently wrote a very informative article on arbitration in China. Mr. Yuen, who has been counsel in arbitration proceedings in Beijing, Shanghai, London, Singapore and Tokyo arbitrations under CIETAC, ICC, LCIA and UNCITRAL, works out of Freshfields' Hong Kong office.

SK-II -- The Mob Makes China Cosmetics A Dirty Business

By now, most are aware of the problems Procter & Gamble has been having with its SK-II cosmetics in China. To very briefly summarize, the Chinese public is angry at Procter & Gamble because of its unwillingness to give immediate refunds for product that was said to be contaminated.

China Logistics -- Big And Getting Bigger

The China Economic Review's relatively new Logistics blog recently did a post on consolidation among Chinese logistics providers, entitled, "Small firms fight for survival." The gist of the post is that logistics in China is growing quickly (15 to 20% per year) and is becoming increasingly dominated by big companies, many of which are foreign.

Innovation And China -- The Long Of It

Just read a very thoughtful two part article (here and here) on innovation in China, written by Bright Simmons. Entitled, the "Chinese Griffen," the site editor describes the two articles as follows:

China's Nanotechnology Growing

Couple recent articles in the Wall Street Journal and Forbes Magazine (h/t to Nanodot and Nanotechbuzz) on how China is making gains in nanotechnology highlight how China is both making efforts to move beyond manufacturing and is succeeding in doing so. The Wall Street Journal article, written by Andrew Batson, and entitled, "China's Nanotechnology Gains Have U.S. Looking Over Its Shoulder," explains the significance of nanotechnology:

Due Diligence On China Market Entry Consultants

I really like Andrew Hupert. I like what he does for companies needing marketing or human relations assistance in China. I like that he has been involved in international business and China business for a long time. I like that he really knows China business.

Chatham House Conference: Building China’s Communications and Information Future

The China Business Blog is pleased to support the upcoming Chatham House conference on “Building China’s Communications and Information Future”. It will be held in London on 23 and 24 October, 2006 in Association with the
Asia-Pacific Technology Network and the China Europe International Business School.

The Chatham House website notes:

Don’t Quote Me (on Corruption)

There has been a lot written about corruption in China over the past week, following the detention of Shanghai Party boss Chen Liangyu – and it is a subject very worthy of inclusion in the “Don’t Quote Me” series.

Another Year, Another 10 Percent

Xu Yifan, Deputy Director of the National Bureau of Statistics (NBS), has “predicted” (maybe he has already drafted the report?!) that China’s GDP growth will be 10 percent this year (following 10.2 percent in 2005, and 10.9 percent in the first six months of 2006). China Daily reports:

Less Competitive. More Expensive.

A new report (via China Daily) notes that China is becoming less competitive:

“China has slipped six places to 54th in the *World Economic Forum’s (WEF) global competitiveness rankings”.

The report notes problems such as weakness in the banking sector, low penetration of technologies (such as the internet and PCs), challenges for mass education, and environmental problems.

Threats Don’t Work for the US in China

U.S. Treasury Secretary Henry Paulson – fresh from his China trip, and with the new “China-U.S. Economic Dialogue” under his belt - has reportedly (via Bloomberg) told the stick-wielding senators (Schumer and Graham) to back off, and offers some good advice:

Academic Overload

While there have been one or two questions about academic ethics in China recently, there is no question that there are a lot of clever academics – and that they are busy.

In a meeting the other day I spoke to someone who had been tasked with selecting some academic papers for a big international technology conference in China. He was astounded to find that over 6,000 papers were submitted (in contrast, about 100 might be expected at a European event), and that most were of very high quality, requiring very specific expertise on behalf of reviewers.

Serving Up More Banks

China Merchants Bank (China’s sixth-largest lender) climbed by 25 percent on its US$2.4 billion listing in Hong Kong the other day (according to the FT), indicating that investors still hungry for Chinese banks.

Hedge fund to shut down on bad investments

GREENWICH, CT, United States (UPI) -- A Connecticut-based hedge fund that lost $6.4 billion in less than a month because of bad energy trades plans to shut down, its founder said.

Sony Silent on Notebooks Using Batteries That May Catch Fire

Sept. 29 (Bloomberg) -- Sony Corp. today refused to name any other computer makers that may be using defective batteries that can cause laptop computers to catch fire.

Lenovo Group Inc. and International Business Machines Corp. yesterday became the latest companies to recall Sony-made batteries used in their notebook computers. Dell Inc., Toshiba Corp. and Apple Computer Inc. have all announced recalls that now total 6.77 million.

South Korean exports hit record high in September

SEOUL : South Korea's exports jumped 22 percent year-on-year to hit a record high of some US$30 billion in September thanks to robust overseas demand, government data showed Sunday.

It marked the eighth consecutive month that Asia's fourth largest economy in Asia posted double-digit growth in exports.

Monetary and prudential policies at a crossroads? New challenges in the new century

Abstract:

It is hard to find a period in the post-war era in which inflation-adjusted interest rates have been so low for so long and monetary and credit aggregates have expanded so much without igniting inflation (the "Great Liquidity Expansion puzzle"). What lies behind these developments? How benign are they? This paper argues that financial liberalisation, the establishment of credible anti-inflation monetary policies and (real-side) globalisation have resulted in subtle but profound changes in the dynamics of the economy and in the challenges faced by policymakers. In the new environment which has gradually been taking shape, the main "structural" risk may not be so much run away inflation. Rather, it may be the damage caused by the unwinding of financial imbalances that occasionally build up over the longer expansion phases of the economy, typically spanning more than one higher-frequency business cycle. Depending on its intensity, the unwinding can lead to economic weakness, unwelcome disinflation and possibly financial strains. The analysis has implications for monetary and prudential policies. It calls for a firmer long-term focus, for greater symmetry in policy responses between upswings and downswings, with more attention being paid to actions during upswings, and for closer cooperation between monetary and prudential authorities. In recent years, the intellectual climate and policy frameworks have gradually evolved in a direction more consistent with this perspective. At the same time, obstacles to further progress remain. They are of an analytical, institutional and, above all, political economy nature. Removing them calls for further analytical and educational efforts.

More Sony Battery Recalls

The problems plaguing computers with batteries from Japanese electronics giant Sony (SNE) increased on Sept. 29, as Toshiba, IBM, Lenovo, and Fujitsu all issued recalls.

HP Puts Its Gaming Hopes in VoodooPC

If you're a computer maker in a funk these days, it looks like the strategy of choice is to go out and buy a gaming PC maker. Back in March, the struggling Dell (DELL) agreed to acquire Alienware, a Miami-based maker of high-end PCs popular with gamers. Then on Sept. 28, the embattled Hewlett-Packard (HPQ) made a surprise acquisition of VoodooPC, a small, privately held Canadian company that also makes gaming-oriented personal computers.

Strong IPOs for Bare Escentuals and Shutterfly

A strong week for initial public stock offerings closed Friday with strong first-day trading gains for Silicon Valley–based online photo service Shutterfly (SFLY) and cosmetics company Bare Escentuals (BARE), as investors placed bets that the fast-growing companies can sustain profitability.

Skype's Mobility Problem

Concern that Skype's efforts to move into mobile calling may be in jeopardy surfaced on Sept. 28. That's when a Finnish newspaper published an interview with Skype Chief Executive Officer Niklas Zennstrom, who was quoted as saying the company is running into "technical obstacles" in making Skype service available on regular cell phones. Zennstrom also said he can't "give a timetable" on when Skype-enabled mobile phones from big manufacturers like Nokia (NOK) will debut.

The financial trap facing the U.S., China

The United States, the world's biggest debtor, and China, the world's biggest creditor, each passed major statistical milestones this month.

In the second quarter, the Commerce Department announced this month, the United States paid more to its foreign creditors than it took in from its overseas investments -- the first time that's happened in 91 years. The gap was relatively small, $2.5 billion for the quarter, when measured against a $13 trillion economy, but it was still a milestone.

Nissan to shift part of N.America output to Japan

TOKYO (Reuters) - Nissan Motor Co Ltd plans to move some of its manufacturing operations to Japan from North America as part of its efforts to improve profitability, the Nihon Keizai (Nikkei) business daily reported on Sunday.

China warns on protectionism after US bill move

BEIJING (Reuters) - China's commerce ministry has warned of the threat of protectionism to Sino-U.S. economic ties in response to a decision by two U.S. senators to ditch a controversial bill involving the yuan .

CDC Benefits from Acquisition and Organic Growth

Strong Revenue and Profit Growth
CDC achieved strong financial performance in 2Q2006. Revenue increased by 19.2% to $77 mn, while net profit grew sharply to $7.90, compared to $1.48 mn in 1Q2006. 61.9% of QOQ incremental revenue came from 17game shareholding increase. On March 23, china.com (HKSE:8006), a subsidiary of CDC, increased its shareholding of 17game from 48% to 100%, so that CDC can fully consolidate 17game’s revenue of $7.7 mn in 2Q.

Baidu: Impressive Growth, But Valuation is Out of Hand

Andy So submits: Investors in Baidu.com (BIDU) have been taken on wild ride since the stock debuted in early August, 2005. In the little over a year since Baidu launched its IPO, the stock has seen a high of over $120, a drop to mid $40’s and a recovery to current levels over $90.

I wrote last year that Baidu was severely overvalued, especially with the company’s lack of earnings and operating history. Baidu’s outstanding recovery from mid $40’s levels begs a re-analysis of the stock.

Ctrip: Rapid Growth Along With China Travel

Shaun Rein of the China Market Research Group submits: I first met Neil Shen, co-founder of Ctrip (CTRP), about 2 years ago when we were both speakers at Cyberport Hong Kong’s Venture Capital Forum. I had just flown in from Shanghai to talk about edutainment in China and how investments into the sector made sense from a venture capital standpoint. Neil had not joined the venture capital firm Sequoia yet. He was there to talk about the online travel service company Ctrip he had started in 1999 and his experiences in building the company up.

Perils of Chinese Reserve-Merger Stocks: SEC Suspends Trading of CESV

Herb Greenberg (MarketWatch) submits: To follow up on my Wall Street Journal story from Saturday regarding the possible perils of investing in U.S.-listed China stocks created from reverse mergers: On Tuesday the Securities and Exchange Commission suspended trading in China Energy Savings (CESV).

This was a China-based company from the reverse-merger class of 2004 that made its way into the Russell 2000 as its stock zoomed as high as nearly $30 before it was delisted in February at $7; it's now just pennies.

Testing Balance Sheet Strength

For stock investors, the balance sheet is an important consideration for investing in a company's stock because it is a reflection of what the company owns and owes. The strength of a company's balance sheet can be evaluated by three broad categories of investment-quality measurements: working capital adequacy, asset performance and capitalization structure.

In this article, we'll look at four evaluative perspectives on a company's asset performance: (1) the cash conversion cycle, (2) the fixed asset turnover ratio, (3) the return on assets ratio and (4) the impact of intangible assets.

China to Maintain `Stable' Yuan, Central Bank Says (Update3)

Sept. 30 (Bloomberg) -- China will maintain ``stability'' in the yuan's exchange rate as well as the country's monetary policies, the central bank said today.

While the market will continue to play a ``fundamental'' role in setting the value of the yuan, the exchange rate will be maintained ``basically stable at a reasonable and balanced level,'' the People's Bank of China's 13-member monetary policy committee said in a statement on its Web site today.

Buffett Says Hedge Funds Are Older Than You Think: Chet Currier

Sept. 29 (Bloomberg) -- Wherever you travel on the information highway, look out for factoids.

These tricky little creatures are bits of supposed knowledge that nobody has bothered to verify. They take on the aura of truth as they are repeated by people assumed to know what they are talking about.

Norman Mailer coined the term in a 1973 book about Marilyn Monroe. Mailer defined factoids as ``facts which have no existence before appearing in a magazine or newspaper.''