Tuesday, July 17, 2007

Looking at Chinese Stocks

http://www.cnanalyst.com/2007/07/ytd-performan-9.html


Below is the ranking of U.S.-listed Chinese stocks based on year-to-date performance, by the end of Monday, July 16, 2007:

Ranking Ticker Name 7/16/2007 End of 2006 YTD Performance
1 TSL Trina Solar 64.21 18.90 240%
2 JADE LJ International 12.35 4.35 184%
3 JRJC China Finance Online 11.56 4.45 160%
4 CEA China Eastern Airlines 48.05 21.78 121%
5 YZC Yanzhou Coal Mining 87.72 40.54 116%
6 ACH Aluminum Corp. of China 47.75 23.50 103%
7 HRBN Harbin Electric 15.37 8.05 91%
8 BIDU Baidu 208.01 112.69 85%
9 CYD China Yuchai 12.05 6.89 75%
10 EDU New Oriental Education 57.26 33.54 71%
11 ZNH China Southern Airlines 32.80 20.45 60%
12 SINA Sina 45.17 28.70 57%
13 CBA Brilliance China 26.99 17.15 57%
14 NCTY The9 49.37 32.22 53%
15 SNDA Shanda 33.04 21.67 52%
16 FMCN Focus Media 48.84 33.20 47%
17 GSOL Global Sources 23.58 16.16 46%
18 GIGM GigaMedia 13.53 9.77 38%
19 SOHU Sohu 33.07 24.00 38%
20 CTRP Ctrip 85.21 62.37 37%
21 CHL China Mobile 58.09 43.22 34%
22 MR Mindray Medical Int'l 31.89 23.92 33%
23 ASIA AsiaInfo 10.11 7.68 32%
24 HNP Huaneng Power Int'l 46.93 35.93 31%
25 SHI Sinopec Shanghai 64.25 49.53 30%
26 CEO CNOOC 119.94 94.63 27%
27 STP Suntech Power 42.96 34.01 26%
28 CMED China Medical Tech. 33.96 27.07 25%
29 SNP Sinopec 112.94 92.64 22%
30 SVA Sinovac Biotech 2.75 2.33 18%
31 CHU China Unicom 17.54 14.89 18%
32 LFC China Life Insurance 59.06 50.51 17%
33 SOLF Solarfun Power 13.57 11.69 16%
34 JOBS 51job 19.70 17.07 15%
35 YTEC Yucheng Technologies 8.32 7.30 14%
36 SMI Semiconductor Mfg. Int'l 7.16 6.44 11%
37 PTR PetroChina 156.51 140.78 11%
38 CHA China Telecom 59.99 54.40 10%
39 GSH Guangshen Railway 36.28 33.90 7%
40 INTN Intac International 7.96 7.51 6%
41 CSIQ Canadian Solar 11.10 10.48 6%
42 XING Qiao Xing Univ Telephone 13.97 13.19 6%
43 CN China Netcom 55.08 53.52 3%
44 TBV Tiens Biotech 4.02 3.93 2%
45 CHINA CDC Corp. 9.48 9.50 0%
46 NTES NetEase 18.09 18.69 -3%
47 TOMO TOM Online 14.15 15.48 -9%
48 PACT PacificNet 5.59 6.18 -10%
49 HMIN Home Inns & Hotel Mgmt. 33.47 37.54 -11%
50 COGO Comtech 16.08 18.19 -12%
51 JST Jinpan International 20.61 24.14 -15%
52 SEED Origin Agritech 9.26 10.94 -15%
53 NTE Nam Tai Electronics 12.85 15.19 -15%
54 SORL Sorl Auto Parts 7.48 9.03 -17%
55 NINE Ninetowns Internet Tech. 3.81 4.77 -20%
56 LONG eLong 10.37 13.01 -20%
57 AOB American Oriental Bio. 8.78 11.67 -25%
58 GRRF China GrenTech 13.55 18.44 -27%
59 ACTS Actions Semiconductor 6.02 8.30 -27%
60 TSTC Telestone Technologies 5.88 8.20 -28%
61 HRAY Hurray! 4.39 6.20 -29%
62 NWD New Dragon Asia Corp. 1.20 1.81 -34%
63 CBAK China BAK Battery 4.25 6.52 -35%
64 MPEL Melco PBL Entertainment 13.85 21.26 -35%
65 CAAS China Automotive Sys. 7.37 12.49 -41%
66 UTSI UTStarcom Inc. 5.11 8.75 -42%
67 ASTT ASAT Holdings 0.91 1.58 -42%
68 VIMC Vimicro International 5.81 10.20 -43%
69 LTON Linktone 2.93 5.19 -44%
70 CTDC China Tech. Development 4.50 8.03 -44%
71 FFHL Fuwei Films 8.32 15.80 -47%
72 CNTF China Techfaith 5.39 10.78 -50%
73 EFUT eFuture 16.95 34.04 -50%
74 KONG KongZhong 4.80 9.76 -51%
75 CPSL China Precision Steel 4.29 10.75 -60%

Note: This ranking excludes IPOs in 2007: ATV, CSUN, JASO, LDK, QXM, SCR, SSRX, TCM, XFML, YGE.

Friday, June 29, 2007

Guangzhou Fair

http://www.businessweek.com/globalbiz/content/apr2006/gb20060427_227718.htm?chan=search
APRIL 28, 2006Asia

By Frederik Balfour


Everything's For Sale at China's Canton Fair

Some estimate a quarter of the country's exports can be traced to the Chinese Export Fair. It's a twice-yearly bonanza of the bizarre and the banal


Looking for a toilet seat cover with a smiley-face logo, an air compressor for your auto body shop, a cotton candy maker, a four-seater golf cart, and a fluorescent pink chew toy shaped like a steak for your dog? There may be only one place on earth you can buy all five -- or any of 100,000 other product categories ranging from oddball to essential. It's the Canton Fair, a monster swap meet held twice a year in the southern Chinese city of Guangzhou, or Canton as the British colonials used to call it.

For insight into how China manages to produce its eye-popping trade surpluses, there's nothing like a visit to the fair, officially called the Chinese Export Commodities Fair. The event, held in April and October, spreads across 560,000 square meters -- about 125 football fields -- and attracts Super Bowl-sized crowds, with more than 150,000 visitors attending each fair. Finding a hotel room within reasonable distance of the show grounds requires some serious guanxi -- connections -- and many foreign visitors commute daily from Hong Kong, two hours away by train.

Last year, combined turnover at the spring and fall sessions was more than $29 billion, fair officials say. And that only accounts for deals that were actually sealed on site. Vendors rack up billions of dollars more from goods ordered once buyers return home. By some estimates, as much as a quarter of China's exports can be traced to the Canton Fair.

MILES OF HOSE. Things have come a long way since the first fair was held in 1957. That was just before China's Great Leap Forward, Chairman Mao's ill-fated attempt to create a backyard steel industry. The inaugural Canton Fair occupied 18,000 square meters in the former Sino-Soviet Friendship Building and attracted just 13 foreign trade delegations. Total sales: less than $18 million worth of hoes, hammers, hoses -- and not much else. As China has grown into the world's factory, the fair has mushroomed into the behemoth it is today, with goods offered by more than 27,000 exhibitors from across China.

I had agreed to visit the 99th fair with Mark Allenbaugh, CEO of MAG Engineering and Manufacturing, a California-based lock maker. In March, I wrote about his trials and tribulations with trademark theft in China (see BW, 4/27/06, "Legal: Tagging Your Name"). I met him at the fair's two-year-old home, a sprawling complex of more than a dozen halls at Pazhou, 17 km. from downtown Guangzhou.

When he visited last fall, Allenbaugh found that one of his suppliers was selling his locks under Allenbaugh's name. This time around, he was happy to discover that the rogue supplier was no longer violating his trademark. Indeed, authorities at the fair have set up booths to field complaints about intellectual-property rights infringements.

NOT DOPEY. Though the crackdown seemed to be working, an industrial security expert from Hong Kong-based Joseph Lee & Assoc. told me that counterfeiters are getting more sophisticated. He said his firm is doing more and more investigations for heavy machinery makers and the like.

Content that his products weren't being ripped off, Allenbaugh led me on a tour. We saw shower stalls with DVD players, embroidery machines, toxic-smelling plastic extruders, poultry slaughtering equipment, machines for making air bubble film, electric skateboards, and garden gnomes with LED lighting that looked remarkably similar to Disney's (DIS ) Seven Dwarves. Win Chen Quanzhou, general manager of Winchance Technology Electronic, the maker of the dwarf lights, assured me he wasn't violating any copyrights, and that he had supplied them to Wal-Mart (WMT ) in Britain.

Need a megaphone? Jiangmen Loud & Louder Electronics can help. Milking machine? Hohhot Monva Valve in Inner Mongolia has plenty. An LCD screen for your car's sun visor? Weier has those. Solar water heaters? Chinsun is a good bet. A bong or water pipe for your headshop? Guangzhou Zhao Ying Hardware offers more than 40 varieties, in shapes ranging from an AK47 to a model where you can keep goldfish in the water bowl. I waited in vain for several minutes, hoping a buyer from San Francisco or Amsterdam might stop by.

TRAVEL PHOTOS. Disappointed by the dearth of bong buyers, I thought I might find a similar crowd lurking around the lava lamp area of the home lighting section. I spotted a guy dressed in a trendy black shirt and trousers, and asked for directions. He turned out to be a buyer from Durban, South Africa, named Charles Kerr -- a walking encyclopedia of lamps.

"We're being so bloody bombarded with lots of bling, crystal, black, and silver" at this year's fair," Kerr exclaimed. He had taken more than 250 photos, aiming to drum up interest among his customers before ordering from the Chinese suppliers when he gets back home.

GONE SHOPPING. Plenty of others were closing deals on the spot. Ihab El Rayes was planning to stuff 100 MP4 players in his suitcase before heading back home to Cairo. Jahja Gjakova, an auto parts dealer from the Macedonian capital of Skopje, was visiting the fair for the first time. He said he could buy components in China for half what he pays for similar items made in Germany. The tough part, he says, is putting together an order big enough for suppliers to take him seriously. "I'm from a country with a population of only two million people," he says. "They can't believe it."

As I left him pondering his dilemma, I passed various potato peeling machines, a four-door sedan from Chery Automotive, and stall after stall of flanges, stop valves, meters, blades, and paint brushes. Could anything stop this export juggernaut? Unlikely. In fact, I might go back and buy one of those lava lamps.

Tuesday, June 19, 2007

My Notes on Water Membrane Techonology

http://people.brandeis.edu/~koh/work/Highwater%20Global/

E-mail to a hippy =)

Bonjour Eric =)

Hehe... I'm just keeping busy I guess. And what gave you the impression that I was a good student? I'm curious because people often mistake me for one. It's great to hear about what Joe has been doing with the kids. He actually did ask me if I wanted to intern there this summer, it sounds like he has something great going on for the kids there.

I'm working for a small investment company summer. It's very small; in the office it's just me and the portfolio manager. I really like the work... I get to do research all day and write notes and reports on various industries and companies. Last week we got to attend a conference in New York. I like it because it actually relates very well to my health economics background... the portfolio only invests in "green" companies, meaning that they take part in sustainable/renewable technological advancement. I've been doing a lot of research in water membrane technologies that could replace distillation (energy inefficient b/c you need a lot of fuel to create all that heat). With reverse osmosis membranes, you use pressure instead of heat to separate the water from the solutes.

Another really cool company that I'm researching actually sells "virtual" electricity to electrical utilities by reducing peak demand of energy so the utilities don't have to build more power plants. They do it by installing devices that reduce the amount of time that a central AC or heater or swimming pool cycles. It is then controlled with a switch in the electrical utility. Like instead of cycling for 40 mins per hour, the AC will cycle for 20 mins during the peak hours (which usually are for a couple of weeks during the year--summer when really hot and winter when really cold). I hear that the temp change is barely noticeable (about 1 degree change), and yet the electricity saved is enough to manage peak demand.

I'm going to be Minnesota for the weekend for a friend's wedding then I'll be in Michigan for a couple of days with a family I know there. So, I'm pretty excited about that. How is Kathleen doing?

I do have a question about the program for the FEMA kids... How do you go about asking people for money? I've only talked with a couple of friends about writing to the kids there.

Thanks for your e-mail! =)

Desiree

Tuesday, June 12, 2007

Responding to China's charm offensive

China also, however, may not be able to build its soft power indefinitely. As we have seen, greater familiarity with China will expose many countries to the People’s Republic’s flaws.

Tuesday, June 05, 2007
by Joshua Kurlantzick
http://www.energypublisher.com/article.asp?id=9802
In a short period of time, Beijing has proven that it can shift its foreign policy quickly and woo the world, often focusing on countries America has alienated. China has drastically changed its image in many parts of the world from dangerous to benign. It may already be the preeminent power in parts of Asia, and it could develop China-centered spheres of influence in other parts of the globe, like Central Asia or Africa. Even longtime American allies like Australia have moved closer to Beijing.

China also, however, may not be able to build its soft power indefinitely. As we have seen, greater familiarity with China will expose many countries to the People’s Republic’s flaws. China’s promises of aid and investment could take years to materialize, yet Beijing has created heightened expectations about its potential as a donor and investor in many countries. China’s exportation of labor, environmental, and governance problems alienates average people in Asia, Latin America, and Africa. China’s support for autocratic rulers in countries like Zimbabwe and Sudan angers civil society leaders and opposition politicians. If Beijing seems to be dropping its preference for noninterference and “win-win” relations, it will spark fears in countries like Vietnam already suspicious of China. It also could reinforce the idea that despite Beijing’s rhetoric of cooperation, when it comes to core interests, China, like any great power, will think of itself first.

The Mekong River offers an obvious example. Though China promises to cooperate peacefully with other countries, in the development of the river, China has proven both uncooperative and meddling. It has meddled by refusing to join the multilateral group monitoring the river and by injecting itself into other nations’ domestic politics to get politicians to support China’s damming of the river.

China could further alienate other nations if it seems to be using multilateral institutions as a cover, without jettisoning Beijing’s own more aggressive, even military aims. Despite signing a deal with the Philippines and Vietnam for joint exploration of the disputed South China Sea, Beijing has not retracted its claim to large swaths of the water. Any Chinese decision that appears arrogant or targeted toward Chinese domination of the region will cause a backlash. Even as officials in Vietnam signed the joint exploration deal, they privately warned that they still could not trust their Chinese counterparts enough to share the most important data with Beijing.

Similarly, if China drops its rhetoric of “win-win” relationships and makes more aggressive, unilateral demands, it could provoke a backlash in Asia, which is relying on multilateral institutions to restrain China from regional dominance. Some Chinese officials have begun to act more assertively. In 2003 one former Chinese ambassador to Singapore warned that Beijing would no longer bow to other nations; as she told a business forum, Singaporeans had to lose their “air of superiority” if they wanted to continue dealing with China. “The Chinese diplomats I’ve dealt with have become increasingly sure and proud of their status, and disdainful of Southeast Asian nations,” says one Singaporean diplomat. As the Chinese diplomats abandon their style of appearing to listen to every nation’s concerns, he says, they will lose some of their appeal. In Singapore, China’s growing diplomatic assertiveness has suggested to some Singaporean officials that China’s charm is merely a facade. Fear of China, along with mistrust of Chinese charm, in fact, explains in part why Singapore has boosted defense cooperation with the United States in recent years.

China’s trade relations, too, ultimately could limit its soft power. If China builds the kind of trade surpluses with the developing world that it enjoys with the United States, it could stoke local resentment. Eventually, Beijing could wind up looking little different to people in Asia or Africa or Latin America than the old colonial powers, who mined and dug up their colonies, doing little to improve the capacity of locals on the ground. Whole regions could become trapped in a cycle of mercantilism, in which they sell natural resources to China and buy higher-value manufactured Chinese goods.

Latin America faces the greatest danger of mercantilism, but other regions could face a mercantilist trap. In Thailand companies now export $3.9 billion in electronics to China and import more than $6 billion worth. In Malaysia one study of local manufacturing found that the country is rapidly losing its ability to compete with China in manufactured goods. “To compensate for the decline,” the study concluded, “Malaysia is turning towards resource-based exports [like] oil, petroleum products, liquefied natural gas, and wood-based products [that] are top exports to China.”

Beijing also may fail in its efforts to persuade diaspora Chinese to return. After years of Chinese officials traveling across the world wooing ethnic Chinese organizations, many diaspora Chinese are shocked by the welcome they get when they finally travel to the People’s Republic. In Malaysia, Indonesia, Thailand, and many other countries, local ethnic Chinese businesspeople constantly complain about China. Many of these diaspora Chinese made investments in China expecting some kind of preferential treatment on the mainland. When their Chinese business partners squeezed them, or mainland Chinese looked down on them because they did not speak Mandarin, some found that being in China just emphasized how little they had in common with people in Beijing or Shanghai.

“Ethnic Chinese in Indonesia go back to China and find they don’t like China,” said Ong Hok Ham, an Indonesian Chinese historian. “They are disappointed in how different they are from the Chinese.” Conversely, mainland Chinese do not necessarily see the diaspora Chinese as brothers and sisters. Phillip Overmyer, executive director of the Singapore International Chamber of Commerce, says that the chamber conducted research on issues Singaporean businesspeople face in China. According to Overmyer, “The [mainland] Chinese management said they had trouble dealing with Singaporeans because Singaporeans didn’t understand Chinese culture, even if they spoke Mandarin.”

Even diaspora Chinese companies with the closest links to China sometimes can feel alienated. Charoen Pokphand, the Thai conglomerate that invested so much time over the years cultivating Chinese leaders, found in the mid-1990s that Beijing had denied it valuable telecommunications concessions. Most famously, in the early 1990s China allowed Singaporean companies to build an enormous industrial park in the eastern Chinese city of Suzhou. Lee Kuan Yew, the founder of modern Singapore, took a personal interest in the industrial park. Despite this high-level support, the Singaporeans still came away angry. They complained that their Chinese partners backed a rival industrial park. They alleged that their partners were piling up wasteful spending, resulting in tens of millions in losses. Finally, the Singaporeans just gave up, selling majority ownership in the park to mainland Chinese developers.

When these countries have concerns about China, the obvious place for them to turn is the United States, the other great power. Asian nations are always “playing the United StatesS off of the Chinese -- dangling what the Chinese will offer in order to get the United States more interested in them,” one senior American policy maker told me. Washington should be prepared to simultaneously leverage Beijing’s charm on issues of interest to both the United States and China, like preventing disruptions in global energy supplies, while rebuilding America’s soft power so that the United States has the ability to confront China on issues where American and Chinese interests diverge. To accomplish this, America first has to understand Chinese soft power.

The United States needs to comprehend exactly how China exerts influence. In part, this can be accomplished through efforts like Congress’s U.S.-China Engagement Act, which would create more American missions in China. But Washington also should take a page from its Cold War policy. During the Cold War, Washington had at least one person in each embassy who studied what the Soviets were doing on the ground in that country; today the United States should have one person in each embassy examining that nation’s bilateral relations with China -- China’s aid policies, Chinese investment, China’s public diplomacy, Chinese leaders’ visits.

As anyone who has worked for a large organization knows, if your boss tells you to do five tasks, you will try to finish all five. But if your boss hires you to do only one job, like studying China’s charm offensive, you will be more likely to produce great work, since you have no subsidiary responsibilities. After all, Chinese embassies closely monitor U.S. relations with each nation, even as Chinese diplomats cooperate with their American peers on topics of mutual concern. Surely, the world’s greatest power should be able to figure out what China is doing while also dealing with Chinese diplomats on issues both Washington and Beijing care about, such as drugs, HIV, and nuclear weapons proliferation.

With a better understanding of China’s soft power, Washington can more systematically set clear limits — for itself, for China, and for other nations — and establish where it believes China’s soft power possibly threatens American interests. As we have seen, tThese U.S. interests include other nations’ territorial integrity; support for the United States in case of a conflict in regions like Southeast Asia; control of sea lanes and waterways; access to resources; formal alliances with foreign nations; and, perhaps most important, the promotion of democratization and good governance.

To protect these interests, the United States must focus on rebuilding its soft power. Otherwise, it will face even more situations where citizens of democratic nations put pressure on their leaders not to cooperate with the United States. Indeed, unlike during the Cold War, as the world has become more democratic, America’s core interest — its national security — increasingly relies on wooing foreign publics.

Joshua Kurlantzick is a visiting scholar in the Carnegie Endowment’s China Program, a special correspondent for The New Republic,and a senior correspondent for The American Prospect. This article is excerpted from his book Charm Offensive: How China’s Soft Power is Transforming the World (http://yalebooks.com/kurlantzick/) published in May 2007 by Yale University Press. Copyright©2007 by Yale University Press. Reprinted by permission. Originally published at FPIF.