Private and Public Equity Crossing Swords
Cover
This week cover story assesses the performance of private and public equity funds in China in the first half of the year. Public equity funds appeared to have gained an upper hand in rates of return as the private equity funds acted more conservatively against the bullish market. However, PE in China got a shot in the arm this year with many reputed fund managers entering the industry.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83170.html
Editorial: Concerns over Inflation
Cover
As the Consumer Price Index (CPI) reaches a new height of 6.5 percent, macro-policy officials remain adamant that full-scale inflation has yet to emerge as a threat to China's economy. But some scholars are less optimistic.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83174.html
Anti-trust Law: Officials Clear the Air
News, Page 3
Officials explain that the Anti-Trust Law is not against mergers, conglomerates or monopoly enterprises, but rather, is meant to guard against monopoly market behavior. They also rebuff the opinion that the law is a paper tiger without real administrative and punitive function.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83177.html
China's Direct Investment Overseas Ranked 13th in the World
News, page 5
China's direct investment overseas reached over 20 billion dollars last year, putting it at number 13th in the world according statistics released by the government on September 14. China FDI overseas mainly occurred through mergers and acquisitions-- up to 40 percent. Main investment destinations were Latin America and Asia, especially Hong Kong. Last year, FDI flow from China made up 2.72 percent of the world's total.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83182.html
Inflation Not the Answer to Yuan Appreciation
News, Page 6
Inflation, excess liquidity, and the yuan's appreciation are the foremost concerns of China's economy at present. Song Hongbing, author of the best-selling "Currency Warfare" shares his opinions on the subject.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83186.html
China's "No.1 Granary" Cuts Production
Nation, page 9
Draught in Jilin province has adversely affected the autumn harvest in Yushu municipality, widely regarded as China's top granary. Farmers there share their hopes and hardships with Economic Observer.
Full article in English: http://www.eeo.com.cn/ens/Industry/2007/09/27/84353.html
Original Chinese article: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83189.html
Nanjing Second-Hand Property Soars Following Government Intervention
Nation, page 10
Government intervention meant to stabilize property prices in Nanjing has led to market chaos. While the prices of new residential properties are kept under a tight lid via "government-guided pricing" policy, the second-hand market has been left subject to rampant manipulation by intermediary agencies. Many home buyers are reportedly failing to obtain newly constructed units at developers' sales offices-- instead, these new units end up in the hands of intermediaries who are marking them off as second-hand property at jacked-up prices.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83192.html
Land Supply a Priority for Low-income Housing
Nation, page 13
Beijing has placed land use in the city under strict control and planning. The approved land supply for new construction projects in 2007 is limited to 3,500 hectares, of which, nearly half is meant for residential construction. The city also stated that 70 percent of the land allocated for housing projects must be use for building medium and low cost houses.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83194.html
Opinion: One-Off Yuan Re-evaluation Would Curb Excessive Circulation
Comments, page 15
Wang Zili, director of the People's Bank of China's Zhengzhou Training Institute, supports a sudden one-off re-evaluation of yuan to meet the overwhelming expectation of the currency to appreciate. He believes the move would quell speculation that has fueled a glut in capital inflows and excess liquidity.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83200.html
QFII Abandoning A-Share
Money & Investment, page 17
Qualified Foreign Institutional Investors (QFII) are abandoning what they see as a pricey and over-valued A-share market in China, opting instead for the more reasonable Hong Kong H-share stocks. Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83204.html
Introducing Gold Futures Trading
Borrowing the Singapore Model
Money & Investment, page 20
China Postal Bank is using Singapore Postal Finance as a model for its own development. The bank identifies similar traits in its counterpart, which leverages its wide retail network to reach out to lower-income groups and customers, most of whom are typically neglected by mainstream banks.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83212.html
Higher Cost for M&A
Corporation, page 29
In recent months, the falling through of several high-profile domestic acquisitions signify a more difficult environment for international businesses seeking to gain controlling interests in local companies. The rising costs of such transactions are fueled both by optimism that the local stock market will continue to soar and policy that has tightened control over foreign investment.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83229.html
Pan Yue: For Environmentally Sustainable Economy Policy
Observer, page 45
State Environmental Protection Administration Bureau of China Deputy Bureau Chief Pan Yue shares his views on the urgent need for China to carry out environmentally sustainable economy policy.
Chinese article online: http://www.eeo.com.cn/eeo/jjgcb/2007/09/14/83261.html
