MARKET WATCH

The Chinese Government adopted a package of mea-sures to rescue the tumbling mainland stock markets. It will let listed companies repurchase their shares in the open markets and require the government's investment arm to increase its holdings in major listed domestic banks. But most notably,the government ditched the stock trading stamp tax charged to those who buy shares. Mainland steel prices are expected to drop in the fourth quarter when industry leader Baosteel cuts its prices in October and November. Chinese companies such as Sinosteel and China Oilfield Services are increasing their acqui-sitions of,and stakes,in foreign companies.     

Risks of U.S. Listings by China’s Companies

CHINA is the only one of the world’s three largest economies in which a significant number of its most important companies are listed on share markets outside direct regulatory control of their home country’s main fi nancial administration.Almost all major U.S.companies are listed in the U.S.The same applies in Japan.But many Chinese companies are listed in Hong Kong,part of China but with     

BoomingOverseas Purchases

正Chinese firms increase mergers and acquisitions in foreign markets China’s cross-border mergers and acquisitions (MAs) increased in the first quarter, but Chinese and Western sources have differing explanations for the uptick.The Chinese Ministry of Commerce(MOFCOM)reported that Chinese companies     

A Legal First

Chinese companies have embarked on a new era of protecting their interests in overseas markets through legal means.Sany Group,the country’s largest machinery maker,vowed on October 18 to "fight to the very end" in its lawsuit against U.S.President Barack Obama after he blocked its wind farm project on national security grounds,making it the first Chinese     

MARKET WATCH

The manufacturing industry shows signs of a turnaround,with the purchasing managers index staging a comeback in August. China’s"big four" state-owned commercial banks are generating windfall profits,though risks still loom large. Fund management companies are swimming in red ink, receiving cues from flagging stock markets. Industrial enterprises experience slowed profit growth. Chinese shipping giant COSCO falters because of tepid demands and overcapacity woes.     

Rushing to Invest Overseas

Chinese companies expand abroad to establish a global foothold in foreign markets With deep pockets and eyesabroad,Chinese companies are looking to expand their foot-prints beyond China’s     

M&A Mania

Chinese companies pick up outbound mergers and acquisitions to expand into overseas markets 0verall, Chinese companies were responsible for 38 overseas M&A deals in 2009, with a combined value     

Where To List?

From Shanghai to Singapore, world markets offer Chinese companies more options than ever to raise funds Despite recent ruffles in the fund fab-ric of the Shanghai Stock Exchange, this market is on its way to rivaling the exchanges locally and interna- tionally.     

Perspectives on China’s Reforms

<正>The concept of the"Four Comprehensives"—an ideological framework that should guide the next steps of reforming Chinese economy and institutions—goes beyond political discourse.These new guiding mottos summarize a commitment to deepening the ongoing process of transformation carried on in the country Economic transformation The Chinese economy and its institutions are undergoing large-scale reforms aimed at creating a new development model,which shall be increasingly based on domestic consumption and innovation,instead of its past reliance on exports and huge investment in infrastructure.One of the most significant impacts of these changes will be the expansion of the already booming middle class in China,whose consumption will demand higher diversification and quality standards not only from the private sector,but from public services as well.Major Chinese companies must also shift their focus to internal consumers,while reducing their dependence on foreign markets.Some of these companies have already engaged in this change,embracing new technologies of production and moving to higher     

MARKET WATCH

State-owned enterprises dominate the 2011 China top 500 list, igniting worries about the strength of private businesses. Chinese companies are accelerating the pace of global expansion. Initial public offerings of Chinese companies have shrunk as clouds gather over the outlook of global stock markets. Liang Wengen, a heavy machinery tycoon, tops the 2011 Hurun Rich List. The Boston Consulting Group expects China’s consumer lending market to triple by 2015.     

A Helping Hand

Chinese companies, those in the sensitive resource sector in particular, may seek cooperation with foreign PE (private equity) firms in order to navigate overseas markets with dexterity china's top telecom network equip-ment maker Huawei Technologies Co. Ltd.     

MARKET WATCH

The Central Government issued a series of policies to help financial restoration work in the earthquake-hit areas.Some Sichuan-based listed companies suffered considerable losses during the quake.But stock traders shored up those companies by actively trading their shares on domestic stock markets.The China Iron and Steel Association called for a boycott of Australian mining firm Rio Tinto's offers on the spot market,because the company failed to fulfill its 2007 long-term contract with Chinese iron ore importers.Lenovo Group's first quarter sales slumped 12 percent year on year,its se- cond worst performance in eight quarters.     

MARKET WATCH

China's state-owned enterprises are focusing on the stalwarts of the domestic economy, including the oil, telecommunications and power industries. Although auto sales have seen a period of sluggish demand, luxury car imports have been increasing. Steel mills will drop their prices in the fourth quarter because of excessive sup- ply. China's stock markets, once taking the global lead in share price increases, have become the worst performing markets in the world. Along with the declining stock markets, mainland-listed companies also saw their profits drop in the first half of this year.     

Creating a Better Environment For Foreign Investment

<正>Opening markets to foreign investment has long been a cornerstone of China’s opening-up policy.Both China’s economy and foreign companies have achieved significant development over the past decades.At the beginning of 2017,with trade protectionism casting a shadow on the global economy,Chinese President Xi Jinping made a pledge in his speech at the World Economic Forum in Davos,Switzerland,that China would always be open to the world.     

About Slight Slowdown

Fears of a"double-dip"recession are haunting the world economy.But a"double-dip"recession is quite unlikely in China as long as the Chinese Government can properly deal with the real estate market,control credit expansion and stabilize the stock markets,said Yi Xianrong,a senior researcher at the Institute of Finance and Banking of the Chinese Academy of Social Sciences,in an article in Shanghai Securities News.Edited excerpts follow:     

MARKET WATCH

The auto markets stage a mild comeback,with sales rebounding in September.The government starts a trial scheme allowing four local governments to issue bonds.Not only small companies,but also some larger,listed companies are feeling the pinch of financial difficulties.Parts of the country are reeling from diesel shortages as demand shoots up.China’s total household wealth is expected to become the second largest in the world by 2016.     

MARKET WATCH

The mainland securities watchdog took on the task of rejuvenating the nation's stumbling stock markets with further en- deavors.It approved two new qualified foreign institutional investors to invest in the mainland financial markets.The Ministry of Commerce made a clear statement that foreign-invested companies can be listed on the mainland.Hot money continues to flow into the country,ad- ding pressure to liquidity control.To date,most listed companies had issued their first quarter reports,showing profit growth rate slowdown. The oil giants Sinopec and PetroChina suffered from profit slump,due to policy reasons.     

China’s Chip Race

<正>Chipmakers are becoming new favorites of overseas acquisitions by Chinese companies Chinese companies are changing their interests from oil and gas resources to tiny microchips.As the global semiconductor industry remains in the doldrums and China is issuing various favorable policies,the Chinese chip industry is bracing significant opportunities for takeoff.     

The Charm of Starbucks

The coffee chain markets a lifestyle of fashion and ease, which appeals to trendy Chinese youth For Li Mei, the Starbucks in Xidan, a commercial district in the heart of Beijing, is so much more than a place to grab a cup of coffee. She spends most of her time there. "I could stay at Starbucks for the entire     

Hot Money, Hot Potato

International hot money flowing into Chinese capital markets has caught the attention of Chinese watchdogs The Chinese are not the only ones feasting on the thriving property and stock markets. Apparently, these markets are the targets of international hot-largely speculative-money.