China Railway Construction

China Stock Watch 21/1/14

After yesterday’s pessimism over the spiking interbank rate and worries over trust product defaults, stocks rebounded upon a RMB2255bn liquidity injection from the PBOC. Cash shortages were partly down to the run-up to Chinese New Year, although evidently the influence of funds from Alibaba and Ping An Insurance, for example, which offer substantially over the bank rate, is helping dry up bank deposits. The expectation is that with the PBOC sitting on massive FX reserves, it will be able to smooth over the bumps as banks have less deposits, SOEs have less access to capital (and hence are issuing more overseas bonds), and as the trust products and the shadow banking industry fail to provide the promised dividends. Time will tell, but the basic system of the Chinese economy is undergoing a rapture, and chances are there will be victims. Stocks trading around or even below book value is an almighty red flag.

On today’s trading, then, railway stocks did best, with China Railway Group gaining 2.19% to RMB4.2 a share, and China Railway Construction adding 1.68% to close at RMB2.42. Twelve of the twenty major stocks closed up, though only the aforementioned pair, SAIC Motor and Ping An Insurance put on over 1%. CNOOC had a very bad day, going down 6.3% to HK$13.08 on news that it had failed to meet production targets for the third year running. Energy stocks were otherwise flat, with China’s slower growth believed to herald lower growth in energy usage; both Sinopec and PetroChina finished the day as they started.

The Shanghai Composite closed at 2,008.31, having gained 17.06 points, or 0.86%.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.62 0.00 (0.00%) 538,531.74M 7.03 4.05 CN¥0.62 7.51
PetroChina 7.63 0.00 (0.00%) 1.40B 9.5 7.08 CN¥0.68 11.29
ICBC 3.4 0.00 (0.00%) 1.19B 4.53 3.38 CN¥0.74 4.62
China Construction Bank 3.92 +0.02 (0.51%) 980,043.05M 5.19 3.8 CN¥0.85 4.63
Agricultural Bank 2.37 +0.01 (0.42%) 769,762.02M 3.28 2.35 CN¥0.50 4.72
Bank of China 2.47 0.00 (0.00%) 690,030.45M 3.26 2.45 CN¥0.53 4.65
China Mobile 77.15* +0.50 (0.65%) 1.55B 89.2 74.9 HK$8.19 9.41
Noble Group 1 -0.01 (-0.99%) 6,660.21M 1.27 0.785 SGD0.04 27.64
China State Construction 3 +0.02 (0.67%) 90,000.00M 4.18 2.9 CN¥0.62 4.87
CNOOC 13.08* -0.88 (-6.30%) 583,988.72M 16.52 12.04 HK$1.89 6.91
China Railway Construction 4.2 +0.09 (2.19%) 51,817.67M 6.25 3.95 CN¥0.84 4.99
China Railway Group 2.42 +0.04 (1.68%) 51,545.76M 3.36 2.3 CN¥0.44 5.52
SAIC Motor 12.68 +0.20 (1.60%) 139,804.19M 19 11.83 CN¥2.05 6.18
China Life Insurance 14.3 +0.08 (0.56%) 404,185.29M 22 12.88 CN¥0.97 14.79
Dongfeng Motor 11.52* -0.04 (-0.35%) 99,257.71M 13.28 9.48 HK$1.38 8.37
China Shenhua 14.15 +0.06 (0.43%) 281,438.12M 25.28 13.97 CN¥2.25 6.29
Ping An Insurance 41.37 +0.65 (1.60%) 327,490.79M 53.27 31.69 CN¥3.45 11.99
China Telecom 3.61* -0.01 (-0.28%) 292,165.84M 4.42 3.48 HK$0.26 13.98
China Communications Construction 3.81 +0.02 (0.53%) 61,625.74M 5.79 3.74 CN¥0.81 4.71
Bank of Communications 3.73 +0.01 (0.27%) 276,999.97M 5.68 3.65 CN¥0.84 4.43

China Stock Watch 10/1/14

Sorry there’s no business briefs today. I am in London and time is tight. I will be in Beijing next week for the first time in some months, and am very much looking forward to it.

Today was mixed, but something of an improvement for major Chinese stocks, with eight rising and only seven falling (unusually, five were flat on the day). Gains were however tentative, with none breaching 1% – China Telecom was the best performer on the day, up 0.82%. It is perhaps no coincidence that China Telecom has won awards for its investor relations, reflecting a commitment to transparency. Elsewhere, rail stocks were worst performers, with China Railway Group and China Railway Construction down 2.46% and 2.83% respectively. China Railway Group has not been forthcoming since the death of chairman Bai Zhongren, and the suspicions of unmanageable debts and who-knows-what problems have dragged down China Railway Construction, too.

The Shanghai Composite Index slumped to 2,013.30, down 14.32 points or 0.71%. My predictions of a buy-back led rise have not come about. The big SOEs could be finding themselves between a rock and a hard place, ordered to deleverage, revenue streams not kicking in as forecast (projections of likely returns always being likely to be grossly optimistic) and now being “advised” to buy-back shares to increase prices. One almost feels sorry for them.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.42 +0.02 (0.45%) 515,218.70M 7.03 4.05 CN¥0.62 7.19
PetroChina 7.53 -0.06 (-0.79%) 1.38B 9.5 7.08 CN¥0.68 11.14
ICBC 3.53 0.00 (0.00%) 1.24B 4.53 3.4 CN¥0.74 4.8
China Construction Bank 3.96 +0.01 (0.25%) 990,043.48M 5.19 3.8 CN¥0.85 4.68
Agricultural Bank 2.41 0.00 (0.00%) 782,753.85M 3.28 2.38 CN¥0.50 4.8
Bank of China 2.51 +0.01 (0.40%) 701,205.02M 3.26 2.48 CN¥0.53 4.73
China Mobile 77.85* +0.50 (0.65%) 1.56B 91.1 74.9 HK$8.20 9.49
Noble Group 1.03 0.00 (0.00%) 6,859.03M 1.27 0.785 SGD0.04 28.47
China State Construction 2.97 -0.04 (-1.33%) 89,100.00M 4.18 2.9 CN¥0.62 4.82
CNOOC 13.74* -0.14 (-1.01%) 613,456.04M 16.76 12.04 HK$1.89 7.25
China Railway Construction 4.12 -0.12 (-2.83%) 50,830.67M 6.46 3.95 CN¥0.84 4.89
China Railway Group 2.38 -0.06 (-2.46%) 50,693.76M 3.41 2.3 CN¥0.44 5.43
SAIC Motor 13.07 +0.01 (0.08%) 144,104.15M 19 11.83 CN¥2.05 6.37
China Life Insurance 14.31 0.00 (0.00%) 404,467.94M 22 12.88 CN¥0.97 14.8
Dongfeng Motor 11.24* -0.20 (-1.75%) 96,845.19M 13.28 9.48 HK$1.38 8.16
China Shenhua 14.49 +0.05 (0.35%) 288,200.60M 25.33 14.4 CN¥2.25 6.44
Ping An Insurance 39.58 -0.39 (-0.98%) 313,320.92M 53.27 31.69 CN¥3.45 11.48
China Telecom 3.69* +0.03 (0.82%) 298,640.44M 4.42 3.48 HK$0.26 14.28
China Communications Construction 3.84 0.00 (0.00%) 62,110.98M 5.79 3.8 CN¥0.81 4.74
Bank of Communications 3.8 +0.01 (0.26%) 282,198.36M 5.68 3.65 CN¥0.84 4.51

Week’s Movers

Movement over the week shows how disappointing the major stocks have been so far this year.

Bank of Communications rose 1.06%, SAIC Motor rose 0.08%, and Noble Group was flat. The other seventeen stocks fell over the week, with China Railway Group not surprisingly leading the way, falling 5.18%, while China Railway Construction was not far off, going down 4.63%. It’s been a very poor start to the year. Perhaps 2014 will surprise us and see some solid share performance, but with reforms challenging the privileges of SEOs and lower growth practically assured, companies will have to show some real innovation and agility. It remains to be seen if they as institutions have it in them.


China Stock Watch 9/1/14

Another particularly poor day for major stocks, with a full sixteen falling on the day, and with SAIC Motor, China Life Insurance and Dongfeng Motor falling by over 2%. (They declined by 2.54%, 2.52% and 2.23% respectively). The two automakers likely fell on news of increased US imports, despite their own impressive sales figures: despite the government’s efforts, and for all the joint ventures and technology transfers, China still has not produced a competitive, aspirational auto manufacturer. (See GE Anderson’s book Designated Drivers for more info).

The only gains were posted by Sinopec (up 0.23% to RMB4.4 a share) and China Railway Construction (up 0.71% to RMB4.24 a share). Both are near their 52-week low (around 10% of it in both cases), so this is hardly break-out-the-champagne news.

The Shanghai Composite Index closed at 2,027.62,  down 16.72 (-0.82%). With SOEs “advised” to take part in stock buy-back operations, I would not bet that it would fall below the 2000 level; and yet, on this form, who could be sure?

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.4 +0.01 (0.23%) 512,887.39M 7.03 4.05 CN¥0.62 7.15
PetroChina 7.59 -0.05 (-0.65%) 1.39B 9.5 7.08 CN¥0.68 11.23
ICBC 3.52 -0.05 (-1.40%) 1.24B 4.53 3.4 CN¥0.74 4.79
China Construction Bank 3.96 -0.02 (-0.50%) 990,043.48M 5.19 3.8 CN¥0.85 4.68
Agricultural Bank 2.42 0.00 (0.00%) 786,001.79M 3.28 2.38 CN¥0.50 4.82
Bank of China 2.5 -0.01 (-0.40%) 698,411.38M 3.26 2.48 CN¥0.53 4.71
China Mobile 77.35* -1.10 (-1.40%) 1.55B 91.1 74.9 HK$8.20 9.43
Noble Group 1.03 0.00 (-0.48%) 6,859.03M 1.27 0.785 SGD0.04 28.54
China State Construction 3.01 0.00 (0.00%) 90,300.00M 4.18 2.9 CN¥0.62 4.89
CNOOC 13.88* -0.10 (-0.72%) 619,706.69M 17 12.04 HK$1.89 7.33
China Railway Construction 4.24 +0.03 (0.71%) 52,311.17M 6.46 3.95 CN¥0.84 5.04
China Railway Group 2.43 -0.01 (-0.41%) 51,758.76M 3.41 2.3 CN¥0.44 5.54
SAIC Motor 13.06 -0.34 (-2.54%) 143,993.90M 19 11.83 CN¥2.05 6.37
China Life Insurance 14.32 -0.37 (-2.52%) 404,750.57M 22 12.88 CN¥0.97 14.81
Dongfeng Motor 11.42* -0.26 (-2.23%) 98,396.09M 13.28 9.48 HK$1.38 8.29
China Shenhua 14.45 -0.11 (-0.76%) 287,405.01M 25.39 14.4 CN¥2.25 6.42
Ping An Insurance 39.94 -0.69 (-1.70%) 316,170.70M 53.27 31.69 CN¥3.45 11.58
China Telecom 3.65* -0.07 (-1.88%) 295,403.15M 4.42 3.48 HK$0.26 14.12
China Communications Construction 3.84 -0.03 (-0.78%) 62,110.98M 5.79 3.8 CN¥0.81 4.74
Bank of Communications 3.78 -0.02 (-0.53%) 280,713.10M 5.68 3.65 CN¥0.84 4.49

China Business Briefs 7/1/14


Rural transformation underpins Chinese economy[1]- China has long been a large agricultural nation, therefore the work concerning agriculture, countryside and farmers (the three rural issues) have always been the top priority of the Chinese government. The Central Rural Work Conference provided the first opportunity for the country’s new government to make plans for the three rural issues.

Besides ensuring domestic production of grain, the conference also made decisions about the position of agriculture, safety of farm produce, land rights, development of rural areas and raising farmers’ income.

Analysis: Cash crunch signals policy dilemma for China’s reformist central bank | Reuters China’s central bank looks set to risk another cash crunch at the end of January, barely a month after the last market squeeze, as policymakers press ahead with a crackdown on shadow financing and other risky bank lending.

Periodic cash squeezes as banks scramble for fresh funds highlight the policy dilemma the PBOC faces in 2014, as it pushes financial reforms to help rebalance the world’s second biggest economy away from the investment- and exports-led model that powered its rapid rise.

China’s Cabinet Drafts Shadow-Banking Plan – The plan, which was distributed to regulators by the State Council on Dec. 10 and hasn’t yet been made public, sets out to limit the growth in loans created outside formal channels for bank lending, according to a copy of the document reviewed by The Wall Street Journal. The framework calls for stronger oversight of such informal lending by the central bank and other regulators.

The plan falls short of launching a full-blown crackdown on the sector, suggesting the leadership’s preference for maintaining a key source of credit for the economy but one that has contributed to industrial overcapacity and high debt levels at local governments.

China’s reforms: The pain begins – Craig Stephen’s This Week in China – MarketWatch Despite 2014 beginning with some disappointing data as HSBC’s China services index slumped to 50.9 for December, it looks like authorities will be applying tough-love austerity rather than the usual pump-priming response.

Ashmore becomes first to gain access to invest directly in China – China has taken a significant step towards opening its multitrillion-dollar capital markets to the outside world by giving a western asset management group freedom to invest in its domestic stocks and bonds.

Ashmore Group has become the first group outside Hong Kong to announce it has been granted a licence to invest directly in China’s $3.4tn domestic equity market, which is quoted in renminbi and known as the A-share market, and its $4.7tn bond market.

Few Specifics Mean China Banks Could Stay in the Shadows – China Real Time Report – WSJ But equally important was what the State Council didn’t say: It made no mention of trying to sharply ratchet down China’s debt which since 2008, has grown to 216% of GDP from 128% and could climb to 271% by 2017 if not corrected, according to Fitch Ratings. Indeed, the framework regulation goes out of its way to call shadow banking is an “inevitable” result of financial innovation and has played an “active” role in serving the economy and broadening the investment channels for Chinese individuals.

Major Corruption Prosecutions up in 2013-Caijing China’s procuratorial authorities investigated 27,236 embezzlement and bribery cases between January and November last year, sentencing 36,907 people, the Supreme People’s Procuratorate said in a statement on Sunday.

Of those cases, 80 percent were considered major or important, which the top procuratorate defines as embezzlement and bribery cases involving more than 50,000 yuan ($8,270) or earmarking public funds over 100,000 yuan.

Sales of luxury goods decline substantially in China|Markets|Business| Luxury goods sales in China have dropped significantly after rapid growth over the past few years, with some noted fashion brands closing some of their stores in the country, according to Guangzhou’s 21st Century Business Herald.

According to Bain & Company statistics, luxury goods sales in mainland China slowed down in 2013 to a 2% growth rate, compared with the 7% annualized increase in 2012 and 30% in 2011. The consulting firm projected that the downtrend would continue in 2014.

Coking coal prices continue to work in steelmakers’ favour | Business Standard China, which remains relentless in raising steel production even while phasing out high-cost capacity, has to put greater reliance on imports of iron ore, since domestic supply is falling short of requirements of its steel mills. Production cost in many of the mines in China being double that in Australia and Brazil, the country is better off by importing than raising local production.

China destroys ivory stockpile in ‘significant symbolic step towards saving Africa’s elephants’ – Telegraph More than six metric tons of tusks, ivory ornaments and carvings were fed into   crushing machines by forestry and customs officials in southern Guangdong province, where much of China‘s ivory trade is focused.

Much of the ivory on the market in China is legal – bought from African governments selling off their stockpiles of seized tusks in 2008. But the continued demand also drives a trade in illicit ivory “laundered” with fake provenance certificates.

China adjusts measures in Shanghai FTZ – Xinhua | The State Council, or Cabinet, said in a statement that it decided to temporarily adjust measures in an effort to reform the country’s foreign investment management and open the service sector wider to overseas investors.

The government will also relax controls over foreign investment in fields covering international shipping, credit investigation, performance brokerage, entertainment, training and telecommunications within the zone.

Law cuts into guides’ earnings – Business – The law took effect on Oct 1 and bans forced shopping during trips. Three months later, many tour guides are looking for new jobs, since much of their income came from the commissions they earned by herding tourists into shops.

Dell looks at China as source of innovation[1]- interviewed Amit Midha (President, Dell Asia Pacific and Japan Region) on Dec 19, 2013, in Xiamen, Fujian province. Midha talked about Dell’s strategy.

P2P firms in China dropping like flies|Markets|Business| The total transaction value of major P2P platforms in China reached 49 billion yuan (US$8.1 billion) in 2013, with an average interest rate reaching 23.24%, according to the report. Seventy four platforms had difficulty meeting the demand from cash withdrawals, mostly in the fourth quarter. The situation is gravest in Zhejiang province, where 17 P2P firms bit the dust in 2013, followed by Guangdong with 11 and Jiangsu with nine. December casualties fell to 10, compared with 30 in November and 18 in October.

China suspends ban on foreign video game console sales China’s State Council said it has temporarily lifted a ban on selling foreign video game consoles, paving the way for firms like Sony Corp, Microsoft Corp and Nintendo Co Ltd to enter a nearly $14 billion market.

The suspension of the 14-year-old ban permits “foreign-invested enterprises” to make games consoles within Shanghai’s free trade zone and sell them in China after inspection by cultural departments, the government said in a statement posted on its website on Monday.

China’s online video viewers watch for 5.7 billion hours every month (INFOGRAPHIC) This new infographic, put together by the Go-Globe team, shows just what a massive business it is. China now has 450 million online video viewers who collectively spend 5.7 billion hours per month watching stuff. There will be an estimated 700 million viewers by 2016. 76.3 percent of surveyed users say they prefer online videos over China’s very dour and propaganda-filled state television.

McKinsey Greater China – What might happen in China in 2014? It’s 2014, and Gordon Orr is back with his annual predictions for the coming year in China. In this podcast, he discusses some of his prognostications with Nick Leung and Guangyu Li. Gordon is a Director based in Shanghai. Guangyu is a Partner there. Nick is the Managing Partner of McKinsey’s Greater China Practice.

Cheap cash and speculation has never been tougher | China Economic Review Shadow bankers are no match for the central bank when it comes to throwing China’s financial system into a panic. Back-alley lenders have handed out a mere US$4 trillion in cash at exorbitant interest rates. No surprises here. The People’s Bank of China (PBOC), on the other hand, managed to send shock waves through the banking system and push markets into turmoil twice last year.

China 2013: A Year in Review with Shaun Rein | China Briefing News This week, China Briefing is featuring a series of specially-commissioned articles and interviews from prominent China-based writers regarding their thoughts on the key developments in the country during 2013, and what lies ahead in 2014. Today’s interview features Shaun Rein, author of “The End of Cheap China: Economic and Cultural Trends that Will Disrupt the World” and managing director of the China Market Research Group.

Taiwan Rejects Bitcoin ATMs – China Real Time Report – WSJ The island’s financial regulator said Monday that physical teller machines for the virtual currency “will not appear” here, after Las Vegas-based RoboCoin, which makes bitcoin ATMs, reportedly said it had chosen Taiwan and Hong Kong as its first spots to expand in Asia.

China Auto Industry News | Chinese Manufacturers Rushing to Brazil | China Car Times – China Auto News Rapidly developing markets in South America, led by Brazil, are shaping up to be the new focus of investment in the future.

China Private Equity, M&A & Capital Markets, from China First Capital Think it’s easy to be a private equity boss in China, to keep your job and keep your LPs happy? It’s anything but.


Report Says Death Of China Railway President May Be Linked To Anti-Corruption Campaign – Forbes The 21st Century Business Herald, citing anonymous sources working in China’s railway sector, said Bai’s death may be related to the ongoing anticorruption campaign that led to the downfall of Liu Zhijun, China’s former railway minister who was given a suspended death sentence in July for abuse of power and taking bribes. Under Liu’s tenure, China’s railway builders were mired in debt, waste and embezzlement. China Railway Construction Corp.Ltd., the country’s second largest infrastructure contractor, spent 837 million RMB ($135 million)on hospitality in 2012. A year earlier, the National Audit Office found officials embezzled 187 million RMB ($28 million) from just the Beijing-to-Shanghai portion of the high-speed railway project.

China Railway reassures after president’s death – BUSINESS – China Railway Group Limited said Monday that the company’s debts and risks are under control, after its president committed suicide over the weekend allegedly because of the firm’s high debts, China News Service reported Monday.

The company had debt of 408 billion yuan ($67.41 billion), and assets worth 503 billion yuan by the end of September 2013, according to the company’s third-quarter earnings report.

China Mobile Probes, Unicom Meddles [China Mobile Ltd. (ADR), China Unicom (Hong Kong) Limited (ADR), China Telecom Corporation Limited (ADR)] – Seeking Alpha We’re just a week into the New Year, and already new signs of political shenanigans at the nation’s 2 leading wireless telcos, China Mobile (HKEx: 941; NYSE: CHL) and China Unicom (HKEx: 762; NYSE: CHU), are hinting at turbulence ahead as Beijing tries to liberalize the state-dominated telecoms services sector. Media are reporting that China Mobile has launched an internal probe into a botched initiative in Hong Kong, which looks to me like an extension of Beijing’s fast-expanding series of anti-corruption probes at major state-owned firms. In the meantime, media are reporting separately that a top Unicom executive has left the company to join one of the nation’s newly licensed virtual network operators (VNO), in a deal that looks aimed at undermining Beijing’s plans to inject new competition into the telecoms services sector.

Alipay apologizes for leak of personal info – Business – The leak of information via the country’s largest third-party payment platform has sparked a public outcry over transaction security at a time when the Internet is soaring as a major shopping avenue

“The leaked data revealed only transaction information before 2010. They excluded sensitive information such as usernames or passwords, which were ciphered through a sophisticated method that is not available to anyone,” according to a statement by Alipay on Sunday.

Luring Beyonce Fashion Fans Spurs LightInTheBox Rally – Bloomberg LightInTheBox Holding Co. (LITB), a Chinese online retailer, surged 20 percent New York after saying it bought Seattle-based Ador Inc., a website that sells clothes and accessories similar to those worn by celebrities from Beyonce Knowles to Taylor Swift.

Telecom Deal by China’s ZTE, Huawei in Ethiopia Faces Criticism – The Ethiopian network’s glitches underline the broader troubles that sometimes face poorer nations as they borrow heavily to invest in telecommunications, roads, utilities and other infrastructure to help lift them out of poverty.

China’s financial firepower helps its firms win many of these contracts. But in agreeing to such deals, some governments appear to have flouted rules meant to foster sound public investment. When countries sidestep such rules, say experts at institutions such as the World Bank, big projects often cost more and are more likely to be poorly executed.

Ford Blows Past Toyota and Honda in China (F, TM) Ford China sold 935,813 vehicles last year, the company said in a statement. That was more than Toyota (NYSE: TM) and Honda (NYSE: HMC) , though it’s still a long way from the more than 3 million sold by the twin titans of China’s auto market, General Motors (NYSE: GM) and Volkswagen (NASDAQOTH: VLKAY) .

Was Tencent’s Unverified Non-Competition Agreement Illegal? | Bridge IP Law Commentary Abstract: many of Tencent’s non-competition contracts being reported online are false due to invalidity. If the contracts were true, one might wonder the intelligence and morality of Tencent’s managers and officers. These agreements are arrogant, domineering, selfish and ignorant of relevant laws. It is hard to imagine how these contracts could come from a listed company with billions of dollars. Additionally, Tencent could possibly pay large amounts of compensation to departing employees in order to fully comply with the relevant laws.

Buffett-Backed BYD Says Chinese Cars to Debut in U.S. – Bloomberg BYD plans to introduce about four models for its U.S. debut at the end of 2015, said Stella Li, the senior vice president in charge of the company’s U.S. business, in an interview last week in Shenzhen, China. Though BYD wasn’t ready when it earlier sought to enter the U.S. car market in 2010, the company is more prepared this time, she said.

Ctrip Reportedly Invests Over $100 Million in Overseas Travel Platform ToursForFun Chinese online travel giant Ctrip reportedly invested more than $100 million in overseas tourism service ToursForFun (report in Chinese). According to official website of ToursForFun, the company will become part of Ctrip’s North American branch, which was set up in last November.

Founded in 2006, ToursForFun is a thriving online travel supplier dedicated to providing online purchasing experience for all travel needs. It is focused on overseas tours and vacation packages in North America, Europe, Asia, Australia & New Zealand, and South & Central America.

Former Google China Head John Liu Joins Qihoo 360 John Liu, former vice president at Google Inc. and head of Google China, has joined Qihoo 360 as Chief Business Officer.

Dr. Liu left Google China in July 2013 after six-year stay there. He was the successor to the former Google China chief Kaifu Lee, founder of VC firm Innovation Works.

China Greenland to Invest $2 Billion in London Developments – Bloomberg The state-owned company, which is investing in the U.K. for the first time, will sign an agreement with Minerva Ltd. today to acquire the Ram Brewery site in Wandsworth in southwest London, the two firms said in an e-mailed statement. The completed development will be valued at 600 million pounds, according to the statement. The purchase price wasn’t disclosed.

Schindler Holding Ltd : Press release: Schindler to equip China’s tallest building | 4-Traders Schindler China, the Chinese division of the Schindler Group, has been awarded a major contract for a 115-story megatall skyscraper currently under construction in Shenzhen, Guangdong province.

When complete, Shenzhen’s Ping An Finance Center will include office and retail space and stand 660 meters high, making it the tallest building in China. The structure will feature Schindler’s 7000 high-rise series elevators and Schindler’s cutting-edge PORT transit management technology.

DailyNews Online Edition – Passers-by bother bridge builders CONSTRUCTION of the 680- metre Kigamboni Bridge has been extended to July 2015 following a number of unforeseen challenges that afflict the project.

The project, which is financed by the National Social Security Fund (NSSF), is carried out by the China Major Bridge Engineering Company and China Railway Jiangchang Engineering (Tanzania) Limited as well as Arab Consulting Engineers.

AMEC plc : AMEC to hire 150 for China contract | 4-Traders ENGINEERING company AMEC estimates it will need to hire another 150 workers after being appointed by China’s state-owned CNOOC to provide services for its substantial North Sea oil and gas interests.

The firm has been hired by Nexen Petroleum UK, which has been a subsidiary of CNOOC since the $15 billion (pound(s)9.1bn) acquisition of its Canadian parent in February.

10 Online Tourism Startups You Should Not Miss Chinese startup database ITjuzi recently released the newest round-up of online tourism services. In ITjuzi’s database, there are overall 337 startups fall into this vertical category, while 41 companies or 12.2% of the total have secured capital injections in the past year. Please read the Chinese report here.

Let’s take a look at the 10 must-visit tourism sites recommended by the database:

Chexim plans to issue up to 4 bln yuan dim sum bonds – Yahoo Finance The Export-Import Bank of China (Chexim) plans to issue up to 4 billion yuan ($660.99 million) of dim sum bonds in Hong Kong to institutional investors, kicking off a strong offshore yuan bond pipeline expected this year.

Uganda reviewing nine applications for oil production licences – Yahoo Finance UK In September last year Uganda awarded the first production licence to China’s CNOOC (HKSE: 0883.HKnews) for the Kingfisher (LSE: KGF.Lnews) discovery, which contains an estimated 635 million barrels of crude reserves, of which 196 million are recoverable. CNOOC plans to spend $2 billion to develop the field over a four-year period.

CHINA TELECOM to focus its efforts in five areas this YEAR | 4-Traders The first one would be assuring it to change the way it serves customers and expand fundamental services.

4G commercialisation would be accelerated by the company and it would toughen 4G and 3G and broadband service integration.

Deutsche Bank Initiates Coverage on China Life Insurance (LFC) | WKRB News Analysts at Deutsche Bank assumed coverage on shares of China Life Insurance (NYSE:LFC) in a research report issued to clients and investors on Monday, reports. The firm set a “hold” rating on the stock.

China Mobile Ltd. : VWO, BZQ: Big ETF Outflows | 4-Traders Looking at units outstanding versus one week prior within the universe of ETFs covered at ETF Channel, the biggest outflow was seen in the Vanguard FTSE Emerging Markets ETF (VWO), where 9.2 million units were destroyed, or a 0.8% decrease week over week. Among the largest underlying components of VWO, in morning trading today China Mobile (CHL) is down about 0.3%.

Jeep Cherokee Pricing Revealed For China – $61,000USD to $76,000USD | China Car Times – China Auto News Jeep’s pricing for the New Cherokee was revealed earlier today, the base 2.4L model starts at 375,900RMB and rises to 459,900RMB for the top of the line 2.4L model, the flagship 3.2L pricing hasn’t yet been announced but it is expected to be in the 500,000RMB and rising area.

Posted from Diigo.

China Stock Watch 6/1/14

Several substantial losses today, mostly following from the news of the death of China Railway Group chairman Bai Zhongren in what seems to be a suspected suicide, perhaps promoted by unmanageable corporate debts. Rumours are obviously unsubstantiated, but attest to the absence of information, and the fears that arise because of that. China Railway Group closed down 4.20% while China Railway Construction falling even further, declining 4.42%. China Shenhua (-3.38%) and SAIC Motor (-2.9%) were not far behind.

Oil companies were the best performer on the day, with news of developments away from coal and renewables. Sinopec closed up 2.05% and PetroChina up 1.83%, while CNOOC shaded up 0.14%.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.47 +0.09 (2.05%) 521,046.93M 7.03 4.05 CN¥0.62 7.27
PetroChina 7.78 +0.14 (1.83%) 1.42B 9.5 7.08 CN¥0.68 11.51
ICBC 3.54 -0.02 (-0.56%) 1.24B 4.53 3.4 CN¥0.74 4.81
China Construction Bank 4.08 +0.01 (0.25%) 1.02B 5.19 3.8 CN¥0.85 4.82
Agricultural Bank 2.44 -0.02 (-0.81%) 792,497.66M 3.28 2.38 CN¥0.50 4.86
Bank of China 2.53 -0.03 (-1.17%) 706,792.31M 3.26 2.48 CN¥0.53 4.77
China Mobile 78.20* -0.40 (-0.51%) 1.57B 91.8 74.9 HK$8.20 9.54
Noble Group 1.03 0.00 (-0.48%) 6,859.03M 1.27 0.785 SGD0.04 28.56
China State Construction 3.03 -0.05 (-1.62%) 90,900.00M 4.18 2.9 CN¥0.62 4.92
CNOOC 13.84* +0.02 (0.14%) 617,920.80M 17.38 12.04 HK$1.89 7.31
China Railway Construction 4.32 -0.20 (-4.42%) 53,298.18M 6.49 3.95 CN¥0.84 5.13
China Railway Group 2.51 -0.11 (-4.20%) 53,462.75M 3.41 2.3 CN¥0.44 5.72
SAIC Motor 13.06 -0.39 (-2.90%) 143,993.90M 19 11.83 CN¥2.05 6.37
China Life Insurance 14.78 +0.21 (1.44%) 417,752.33M 22.7 12.88 CN¥0.97 15.29
Dongfeng Motor 11.78* -0.18 (-1.51%) 101,497.89M 13.28 9.48 HK$1.38 8.55
China Shenhua 14.85 -0.52 (-3.38%) 295,360.87M 25.7 14.83 CN¥2.25 6.6
Ping An Insurance 40.29 0.00 (0.00%) 318,941.37M 53.27 31.69 CN¥3.45 11.68
China Telecom 3.74* -0.02 (-0.53%) 302,687.06M 4.42 3.48 HK$0.26 14.47
China Communications Construction 3.86 -0.10 (-2.53%) 62,434.48M 5.79 3.8 CN¥0.81 4.77
Bank of Communications 3.76 -0.03 (-0.79%) 279,227.85M 5.68 3.65 CN¥0.84 4.46

Top China Stocks Annual Performance 2013

Well, the year end is upon us, and we’ve heard how the Shanghai Composite Index has done over 2013. But what about the twenty major stocks which this website tracks? Let’s take a look. (All charts and data are from Google Finance).

Sinopec -27.11%

Sinopec 2013

PetroChina -13.95%

PetroChina 2013

ICBC -12.47%

ICBC 2013

China Construction Bank -8.63%

China Construction Bank 2013

Agricultural Bank of China -10.51%

Agricultural Bank 2013

Bank of China -9.03%

Bank of China 2013

China Mobile -11.08%

China Mobile 2013

Noble Group -8.94%

Noble Group 2013

China State Construction Engineering -18.23%

China State Constuction Engineering  2013

CNOOC -14.37%

CNOOC 2013

China Railway Construction -19.66%

China Railway Construction 2013

China Railway Group -12.17%

China Railway Group 2013

SAIC Motor -16.97%

SAIC Motor 2013

China Life Insurance -25.05%

China Life Insurance 2013

Dongfeng Motor +0.83%

Dongfeng Motor 2013

China Shenghua Energy -36.2%

China Shenhua Energy 2013

Ping An Insurance -5.22%

Ping An Insurance 2013

China Telecom -7.76%

China Telecom 2013

China Communications Construction -22.2%

China Communications Construction 2013

Bank of Communications -20.5%

Bank of Communications 2013

In a handy chart:

Name % Change
Dongfeng Motor +0.83%
Ping An Insurance -5.22%
China Telecom -7.76%
China Construction Bank -8.63%
Noble Group -8.94%
Bank of China -9.03%
Agricultural Bank -10.51%
China Mobile -11.08%
China Railway Group -12.17%
ICBC -12.47%
PetroChina -13.95%
CNOOC -14.37%
SAIC Motor -16.97%
China State Construction Engineering -18.23%
China Railway Construction -19.66%
Bank of Communications -20.5%
China Communications Construction -22.2%
China Life Insurance -25.05%
Sinopec -27.11%
China Shenhua Energy -36.2%

2013 has been very poor indeed for major Chinese stocks. No wonder SOEs have been warned that poor performance will be “severely dealt with“. (While all the companies listed are on the stock market, most still have substantial state ownership, and even more substantial state influence). But it’s equally clear that things have to change.

China Stock Watch 31/12/13

The major Chinese stocks ended the year on something of a positive note, with seventeen of the twenty ending the day up. As the year comes to an end, the low trading level of Chinese stocks has been garnering year-end/year-ahead commentary, with several making Chinese stocks a tip for 2014, with the South China Morning Post headline declaring “Optimism running high for Chinese shares next year“. There was also the approach of the 2000 barrier, which, as we’ve seen, is a customary sign for stocks to start rising. Certainly Chinese stocks have low P/E ratios and can seem attractive on that basis, but the concern is that reforming SOEs will diminish their economic privileges, thus cutting into margins. If they can use their predominant position in the Chinese economy to adapt and improve, as happened with some British utilities following privatisation in the 1980s, such as British Telecom and BP, then they would be worth holding. It will be a rocky road, though, and no-one can tell which will adapt successfully to a more competitive landscape.

The best performers on the day were Ping An Insurance (+1.94%), China Railway Construction (+1.73%) and Sinopec (+1.35%). Only China Mobile, on underwhelming Apple sales figures, and Dongfeng Motor fell on the day, by -0.31% and -0.82% respectively.

The Shanghai Composite Index rose 18.45 points (+0.88%) to finish the year at 2,115.98. The WSJ named Shanghai “Asia’s worst performer in 2013“.

Name Price Change Mkt cap 52wk high 52wk low EPS P/E
Sinopec 4.49 +0.06 (1.35%) 523,378.08M 7.03 4.05 CN¥0.62 7.3
PetroChina 7.71 +0.01 (0.13%) 1.41B 9.5 7.08 CN¥0.68 11.41
ICBC 3.58 +0.03 (0.85%) 1.26B 4.53 3.4 CN¥0.74 4.87
China Construction Bank 4.13 +0.04 (0.98%) 1.03B 5.19 3.8 CN¥0.85 4.88
Agricultural Bank 2.47 +0.01 (0.41%) 802,241.48M 3.28 2.38 CN¥0.50 4.92
Bank of China 2.62 +0.01 (0.38%) 731,368.99M 3.26 2.48 CN¥0.53 4.93
China Mobile 80.25* -0.25 (-0.31%) 1.61B 91.8 74.9 HK$8.17 9.82
Noble Group 1.07 0.00 (0.47%) 7,090.97M 1.27 0.785 SGD0.04 29.49
China State Construction 3.14 +0.04 (1.29%) 94,200.00M 4.18 2.9 CN¥0.62 5.1
CNOOC 14.42* +0.10 (0.70%) 643,816.32M 17.38 12.04 HK$1.89 7.64
China Railway Construction 4.7 +0.08 (1.73%) 57,986.44M 6.49 3.95 CN¥0.84 5.58
China Railway Group 2.67 +0.02 (0.75%) 56,870.73M 3.41 2.3 CN¥0.44 6.09
SAIC Motor 14.14 +0.15 (1.07%) 155,901.52M 19 11.83 CN¥2.05 6.89
China Life Insurance 15.14 +0.16 (1.07%) 427,927.64M 22.7 12.88 CN¥0.97 15.66
Dongfeng Motor 12.08* -0.10 (-0.82%) 104,082.73M 13.28 9.48 HK$1.37 8.8
China Shenhua 15.83 +0.04 (0.25%) 314,852.69M 25.7 15.36 CN¥2.25 7.03
Ping An Insurance 41.6 +0.79 (1.94%) 329,311.50M 53.27 31.69 CN¥3.45 12.06
China Telecom 3.92* 0.00 (0.00%) 317,254.89M 4.46 3.48 HK$0.26 15.22
China Communications Construction 4.03 +0.01 (0.25%) 65,184.19M 5.79 3.8 CN¥0.81 4.98
Bank of Communications 3.84 +0.04 (1.05%) 285,168.86M 5.68 3.65 CN¥0.84 4.56