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Sinomania! the truth about china
China SEARCH Engine
Volume I, Episode 43
December 20, 2007
Markets Sag - Chevron Gas Deal - Aging Time Bomb? - Property ETF - IPOs - more!

December 10, 2007

US-China Summits in Beijing - QFII Up to $30 Billion (US) - IPOs losing steam?

November 27, 2007

Chinese Stock Prices Melt - Sarkozy Up to Beijing - IPO Updates - Will Trent Lott Lobby for Taiwan?

November 20, 2007

Currency Crisis! Dollars Drained by China, OPEC Continue Down - Inflation

November 14, 2007

Time to Short China's Yo-Yo Market? - Mining In or Out? IPOs - more

November 2, 2007

Oil Shock! Price Problems At the Chinese Pump - Stocks: Where's the Correction?

October 24, 2007

SPECIAL REPORT: 17th Party Congress - Shanghai Bubbles? - Market Numbers

October 15, 2007

China Bull Run Gets New Highs - PetroChina - IPOs - Money - more

October 9, 2007

Chinese Stocks Up & Up - IPOs - Iron & Steel - Pacific Pipeline - more

October 4, 2007

Hong Kong Booms - Commodities, Inflation, Oil at $100 a barrel? - more

September 25, 2007

UAW Tells GM No Jobs For China - Markets Hit 5,500 - China's Auto Industry - IPOs

September 19, 2007

New IPOs Rock Shanghai! But is Resistance Building? A Big Push for Private Equity…

September 10, 2007

Report on APEC 2007 - Energy Security - Markets Update - IPOs in Hong Kong

August 30, 2007

Chinese Stocks Stay Up - Big Bond Sale - IPOs - Upcoming Party Congress

August 22, 2007

China Stock Markets Get Higher But For How Much Longer? - Surprise Rate Hike - IPO Update

August 14, 2007

China Toy Recall - Markets & IPOs - Western Banks Catch Asian Flu?

August 6, 2007

Shanghai Composite Busts Past 4,600 - Beijing Bets on Banks - Chinese IPOs in Japan

July 31, 2007

China Stocks Up Again & Again! - Pussyfooting Around Currency? - Democracy in Japan?!

July 25, 2007

Will Barclay's Turn Chinese? 2Q/H1 Macro Report + IPOs!

July 19, 2007

Food Fight! China-USA sling hash / Peak Oil? / Markets Flat Line...

July 10, 2007

Chinese markets confused? Big IPOs - Chery+Chrysler

June 27, 2007

COSCO - China Mobile - IPOs - Telecom Mergers & Acquisitions

June 21, 2007

New Record Highs in Hong Kong, Shanghai: Will Beijing Put On the Squeeze? - IPOs & more

June 15, 2007

Fundamental Misalignment: US-China currency war - stock markets up & IPOs

June 7, 2007

China Stock Pop - Hot News items - climate change, tainted food...

May 31, 2007

Chinese stock markets hiccup - IPOs - USA-China Trade Gap

May 25, 2007

Report on the 2nd USA/China Strategic Economic Dialogue: Win-Win or When-When? - Market numbers - New IPOs

May 18, 2007

New life for Hong Kong? IPO Update - USA/China summit

May 11, 2007

Will Shanghai end up like NASDAQ or Nikkei? - IPOs

April 30, 2007

Tulips to Dotcom - is Sino Mania the next big bubble?

April 20, 2007

The Heat is on! - IPO Report - Air Pollution in China

April 15, 2007

China markets, IPO update, Beijing Ready for Olympics?

March 30, 2007

China markets up, up, up! Sinomania! goes to China

March 23, 2007

Focus on National People's Congress... Hi-Tech, IPOs

March 17, 2007

China's new investment strategy, IPOs, the Wrap...

March 7, 2007

China syndrome or hong bao bounce? New IPOs... more!

February 27, 2007

China Stock Market Yo-yo, new IPO issues, the wrap

February 17, 2007

Chinese New Year edition! Will China buy Chrysler & more!

February 9, 2007

The USA-China WTO trade dispute and New IPOs

February 1, 2007

IPOs: New Red Chip — Bubble Burst? — USA-China

January 26, 2007

BUBBLE TROUBLE? — IPOs on NASDAQ — Renminbi Yuan

January 20, 2007

IPOs in 3 hot sectors — BAOSteel — Macro Report

HKEX Hang Seng Shanghai
SSE Shanghai Hong Kong
SZEX Shenzhen Beijing
MUSIC in China: Listen!

TRANSCRIPT: A look at Chinese stock markets, News roundup on big new Chevron gas deal, the new population time bomb, a new real estate exchange traded fund, and Merry Christmas!
Sinomania! Volume I Webisode 43, December 20, 2007

Markets List,
A Business News Roundup,
The TAO of Real Estate?
And IPOs!


The Shanghai Composite closed at 5,043.54 today up slightly from its slump to just above 4,800 on November 28. The CSI 300 Index ended at 5,037.20 December 20 back up past 5,000 for the first time in a week. Shanghai B shares continue to flounder since our last episode and closed today at 354.58. ShenZhen Bs continue their slide and closed December 20 at 679.18 although they are still above the end November trough. With performance like this it appears that investor confidence is weakening particularly in B shares. But remember B shares remain the best performers in the world as 2007 draws to a close. The Hang Seng Index is back up above 27,000 after falling all week. This level could be a new baseline as I don't see the Hang Seng falling back to the levels of last summer.

In money matters, excessive liquidity continues to bother Chinese regulators and fuel inflation and risks of over capacity in certain investment sectors. Interest rates were raised again this week by China 's central bank, the benchmark one year lending rate upped to just under seven and a half percent, the highest level in almost a decade.

And Chinese capital is finding its way back to America. The national sovereign wealth fund China Investment Corp. will make a five billion ($US) cash infusion to Morgan Stanley which posted the first loss in its history due to so-called "sub-prime" bad loans. Morgan Stanley is a long established China booster and major underwriter of Chinese IPOs. The investment is the biggest to date by China's new state investment fund in an American business.


A couple of interesting news items worth noting this week:

International companies grabbed almost twenty five percent of television advertising during China's "golden period," the sixty seconds of advertising space after Xinwen Lianbo, the country's top rated news show. Last month, over $1 billion US dollar value ad revenue was sold in the yearly auction by China Central Television.

Oil major Chevron signed a 30-year joint production deal with China National Petroleum Corporation PetroChina subsidiary Southwest Oil and Gas Field to develop the Chuandongbei gas site in Sichuan province. Chuandongbei covers around 2,000 square kilometers in the heart of China and may hold five trillion cubic feet of natural gas. The facilities planned for the region could produce up to 740 million cubic feet of gas per day.

Some new figures on the coming demographic crisis in China were released by the Chinese National Committee on Aging this week: Already over 20% of the world's elderly people live in China and their number is increasing at three times the rate of China's natural increase. As in the USA the number of people reaching the age of 60 and above is increasing rapidly. The older population is set to rise from just above 11% currently to around 25% by mid century. Chinese population authorities warned that economic progress may suffer and that China is not prepared for a rapidly aging society. This is an interesting trend with important implications for investors - something to watch closely.


Here's a new ETF - the Claymore/AlphaShares China Real Estate ETF now traded on the New York Stock Exchange with symbol TAO.

The China Real Estate ETF is the first vehicle to give investors a chance to invest and profit from the Chinese real estate boom and with the tax benefits of an exchange traded fund. The ETF will invest in listed property development and real estate firms on Chinese exchanges invested in mainland China, Hong Kong, and Macau - the Chinese Las Vegas. The ETF will be reconstituted annually.

TAO was up almost 3% on December 20 with shares currently selling for around $25 US dollars in New York.


Speaking of property investing, SouFun Holding, an online real estate broker based in Beijing is planning an IPO on either Hong Kong or New York. SouFun is part owned by Australian telephone company Telstra whose American CEO Sol Trujillo is looking to use SouFun as a cornerstone of increased China business. Property prices are rising in Chinese cities, up almost 9% in September, and can only benefit from China's endless urbanization.

Meanwhile recent Chinese IPOs have seen mixed results. Internet content firm Pacific Online fell almost 20% off its offer price on December 18 in Hong Kong. SinoTruck has yet to trade above its offer price also on the Hong Kong exchange. But Uni-President China Holdings surged on Hong Kong Monday.

Grand Ocean Department Store, out of Nanjing, plans an IPO early 2008 and hopes to raise up to $200 million US dollars for expansion. The company currently has nine outlets in Fujian and Zhejiang provinces.

An important development for Hong Kong IPOs - starting January 2008 new listings will be required to publish final draft prospectuses on the Hong Kong Exchange website so more transparency coming!

For my Christian viewers I'd like to say Merry Christmas!

I'll see you next time!

© Sinomania! 2007 All Rights Reserved.

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