Tagged: China RSS

  • ArlingtonJB 12:54 PM on August 24, 2010 Permalink
    Tags: China   

    Investment Case For The China Infrastructure ETF…In Four Words

    Nine day traffic jam.

    That’s right, a traffic jam on a road leading into Beijing now stretches more than 60 miles and is entering its ninth day. Traffic on the Beijing-Tibet expressway slowed on August 14 after a surge in traffic from heavy trucks carrying cargo into the Chinese capital. Five days later road maintenance began, compounding the congestion problem further. According to a state-run newspaper, the monumental slowdown led to the creation of an opportunistic local economy; merchants began selling food and water to stranded motorists at wildly inflated prices.

    Surely at this point the traffic jam is close to letting up, right? Not so fast. According to state media the congestion is expected to continue until workers finish up the construction projects on September 13.

    The story then suggests that you may want to use the Chinese Infrastructure ETF, CHXX. Unfortunately, it only trades a few thousand shares a day.

     

  • ArlingtonJB 12:45 AM on August 10, 2010 Permalink
    Tags: Brazil, , China,   

    Bubbles 

    The market is coiled up waiting for the Fed to speak on Tuesday. The sentiment on the blogs and tweets that I follow suggest hope for a positive pop post-Fed announcement. Is it odd that this was paired with a lot chatter about bubbles on the web today?

    Minanville posts Why the China Miracle Is Really a Debt-Financed Bubble This coincides with China starting a stronger round of banking stress tests. The new tests are supposed simulate a 60% drop in housing prices (previous stress tests were at 10%, 20% and 30%) as well as well as a hit to the steel and cement sectors. A 60% drop – wow!

    Fortune asks “Is the party about to end in Brazil?”

    Bloomberg – Structured Notes Are Wall Street’s `Next Bubble,’ Whalen Says

    The WSJ says there is a ‘Frenzy’ in MLPs

     

  • Pete 12:15 PM on August 5, 2010 Permalink
    Tags: China, TAO   

    StanChart: Chinese property correction imminent 

    FT Alphaville reporting:

    Standard Chartered analysts have always proved themselves pretty exhaustive when it comes to assessing the Chinese property market.

    So when they say they believe a correction in property prices is imminent, it’s probably wise not to take their words too lightly.

    More China real estate talk.

     

  • Pete 11:43 AM on August 4, 2010 Permalink
    Tags: China   

    Beijing Billionaire Who Grew Up With Mao Sees No Housing Bubble 

    Bloomberg.com reporting:

    Zhang says she’s well aware of the chorus of investors and economists who predict that China’s property boom is about to go bust, taking the global economy down with it. The doomsday scenarios don’t intimidate Zhang, a onetime penniless sweatshop worker who ascended to Wall Street by defying the odds. She hopes to prove skeptics wrong again this year by betting hundreds of millions of dollars on new buildings in Beijing and Shanghai, Bloomberg Markets magazine reports in its September issue.

    “I don’t see any bubbles,” says Zhang, dressed in a white V-neck zippered top, black slacks and red heels. “The next few months will be a fantastic time to buy.”

    Will be interesting to see who wins the battle. Zhang putting up hundreds of millions of dollars in buildings while China’s banking regulator preparing stress tests for 50% drops in real estate prices. Get the popcorn!

    If you believe in ‘magazine cover’ indicators Zhang is on the cover of Bloomberg Markets magazine. Hmmmm
    Bloomberg Markets Cover September 2010

     

  • Pete 11:17 AM on August 4, 2010 Permalink
    Tags: China   

    China Said to Tell Banks to Stress Test for 60% Home-Price Drop 

    Bloomberg.com reporting:

    China’s banking regulator told lenders last month to conduct a new round of stress tests to gauge the impact of residential property prices falling as much as 60 percent in the hardest-hit markets, a person with knowledge of the matter said.

    Banks were instructed to include worst-case scenarios of prices dropping 50 percent to 60 percent in cities where they have risen excessively, the person said, declining to be identified because the regulator’s requirement hasn’t been publicly announced. Previous stress tests carried out in the past year assumed home-price declines of as much as 30 percent.

    Talk about preparing for worst-case scenarios.

     

  • Pete 2:23 PM on August 3, 2010 Permalink
    Tags: China, DBC   

    Wheat Soars; Rogers Sees ‘Much Higher’ Food Prices 

    CNBC.com Reporting:

    The July rise in wheat prices, the fastest in 51 years, indicates that shortages in agriculture are coming, Jim Rogers, chairman of Rogers Holdings, told CNBC.com Tuesday.

    Wheat prices in Europe hit their highest level in two years, rising almost 50 percent since late June as Russia’s wheat crop was affected by drought.

    “That’s the straw that broke the camel’s back,” Rogers, who has been warning about shortages coming in the agriculture sector for a while, said in a telephone interview.

    I find it interesting there wasn’t too much interest in the China/Corn story from last week

    China Enters ‘New Era’ of Corn Buying, Council Says

    China may import as much as 15 million tons of corn in 2015 as demand outstrips local supply and the country enters a “new era” of buying from overseas, the U.S. Grains Council said, citing Shanghai JC Intelligence Co.

    Imports may total 1.7 million tons this year and 5.8 million tons next year, the council said, citing Shanghai JC Chairman Hanver Li. Even with normal weather, the second-largest corn consumer won’t be able produce enough to meet demand as incomes rise, the council said on its website, citing Li.

     

    • ArlingtonJB 4:09 PM on August 3, 2010 Permalink | Log in to Reply

      The WSJ Blogs talk about Rogers view on wheat and add this from ADM

      …John Rice, the [ADM]’s executive vice president for commercial and production, noted the conflictiing signals out of Russia about whether the severe drought there will eliminate all its export capacity, or whether it will still be able to help feed the world despite the crop losses.

      Mr. Rice called the Russian situation a “moving target,” as Ian Berry of Dow Jones Newswires reported. He also said the next thing to watch is what happens with the weather in Australia, another major wheat exporter, which has been battling locusts. “That’s going to be the next key crop, and then I think we’re just going to have to see how the harvest comes,” he said.

      Russian fires and Australian locusts. It’s getting biblical.

    • Teresa Lo 9:29 PM on August 3, 2010 Permalink | Log in to Reply

      They’ll just have to eat less. Thank God.

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