China

[Spaf]

China


http://en.wikipedia.org/wiki/China

[Spaf]

China


Shanghi Stock Exchange Composite Index [SSEC] :: [$SSEC at www.StockCharts.com (http://www.StockCharts.com)]


:nuts: Wow! :blink:



1598
[Chart courtesy of www.StockCharts.com]

[Oldcoin]

http://www.stocktiming.com/Monday-DailyMarketUpdate.htm

This TA is having a hissy fit over China's Shanghai Composite. He thinks that when it does its’ pullback it’s going to take the rest of the markets with it or something like that.

[vectorman]

http://www.stocktiming.com/Monday-DailyMarketUpdate.htm

This TA is having a hissy fit over China's Shanghai Composite. He thinks that when it does its’ pullback it’s going to take the rest of the markets with it or something like that.

I see that CNBC is only now this morning talking briefly about it. Question is, if you had alot of profits to protect in China, how close to the exit would you be standing?

http://stocktiming.com/Thursday-DailyMarketUpdate.htm

[tsptalk]

China Watch - The Shanghai Composite ended last night down 3.64% !! Is it time for the parabolic rise to come crashing down?

[LimaFox]

China widens yuan's daily trading band
Hikes interest rate, tightens reserve requirement for banks
By Steve Goldstein (http://www.marketwatch.com/news/mailto.asp?x=115+103+111+108+100+115+116+101+105+1 10&y=Steve+Goldstein&z=marketwatch.com&guid=%7Bc73cf0a1-6002-4783-b883-06583c2a217d%7D&siteid=mktw) & Wanfeng Zhou (http://www.marketwatch.com/news/mailto.asp?x=119+122+104+111+117&y=Wanfeng+Zhou&z=marketwatch.com&guid=%7Bc73cf0a1-6002-4783-b883-06583c2a217d%7D&siteid=mktw), MarketWatch
Last Update: 12:08 PM ET May 18, 2007



NEW YORK (MarketWatch) -- The People's Bank of China on Friday said it's widening the trading band for the yuan, hiking interest rates and increasing banks' reserve requirements, as authorities act to cool the red-hot stock market and lessen pressure from disgruntled trading partners such as the United States.
The Chinese central bank said it was widening the yuan's trading band to plus or minus 0.5% per day against the U.S. dollar, as opposed to plus or minus 0.3% per day previously. China's currency has traded in a limited band against the greenback since July 2005.
The bank said it was acting to improve the managed floating exchange-rate regime based on market supply and demand. It said it was also seeking to promote development of the foreign-exchange market and strengthen the pricing and risk-management capabilities of financial institutions.
Washington welcomed the wider band as a "useful step," and urged China now to use the band to introduce more yuan flexibility, and not have it be merely a symbolic gesture.
"This is a useful step toward greater flexibility and eventual float of the currency," said Alan Holmer, the Treasury department's special envoy for China. "It's important now that Chinese authorities use the wider band and allow greater movement within each day and over time."
The central bank also lifted the bank reserve requirement ratio by a half percentage point, and it also increased its benchmark one-year lending rate by 0.18 of a percentage point, to 6.57%, and the one-year deposit rate by 0.27 of a percentage point, to 3.06%.
Ian Stannard, a currency strategist at BNP Paribas in London, said the combination of moves shows how seriously the central bank is taking concerns about overheating in the mainland's economy.
"The fact they've taken all these measures show they are now stepping up the pace of policy adjustments and tightening," he said. "It's a result of record levels of currency reserve build-up, around $131 billion in the first quarter."
"The Chinese authorities now find themselves combatting the growing asset bubbles in the Shanghai equity market and have become quite concerned about the possible fallout should it collapse," said Boris Schlossberg, senior currency strategist at DailyFX.com.
"This policy change is just the latest attempt by Chinese authorities to rein in speculative sentiment ... by slowing inflationary pressures," he said.


http://www.marketwatch.com/news/story/china-widens-range-yuan-can/story.aspx?guid=%7BC73CF0A1%2D6002%2D4783%2DB883%2 D06583C2A217D%7D

[tsptalk]

China widens yuan's daily trading band
Hikes interest rate, tightens reserve requirement for banks
By Steve Goldstein (http://www.marketwatch.com/news/mailto.asp?x=115+103+111+108+100+115+116+101+105+1 10&y=Steve+Goldstein&z=marketwatch.com&guid=%7Bc73cf0a1-6002-4783-b883-06583c2a217d%7D&siteid=mktw) & Wanfeng Zhou (http://www.marketwatch.com/news/mailto.asp?x=119+122+104+111+117&y=Wanfeng+Zhou&z=marketwatch.com&guid=%7Bc73cf0a1-6002-4783-b883-06583c2a217d%7D&siteid=mktw), MarketWatch
Last Update: 12:08 PM ET May 18, 2007

...as authorities act to cool the red-hot stock market
Oh, oh. We saw it coming. Now how will the traders/investors react? Will the bubble finally pop?

[Tempest]

Well the good news is it was posted on a Friday (our time). Time to have people mull it over. imagine if this had been posted on a Sunday (our time.)

[Tempest]

Interesting article on gambling.
http://www.[[financialsense.com/fsu/editorials/andros/2007/0517.html

[Oldcoin]

Indexes Prev. Closing Last High Low Change%
SSE 180 8342.75 8396.56 8396.94 8046.26 0.65

Looks like the Shanghai went positive.

http://www.sse.com.cn/sseportal/en_us/ps/home.shtml

[weatherweenie]

http://biz.yahoo.com/ap/070522/us_china_trade.html?.v=9

WASHINGTON (AP) -- The United States and China opened a new round of high-level economic talks on Tuesday with the leader of China's delegation bluntly saying that any effort to politicize economic differences between the two nations was not acceptable.

[weatherweenie]

http://biz.yahoo.com/ap/070523/us_china_trade.html?.v=12

U.S. and China End High-Level Talks With Minor Agreements, Fail to Resolve Currency Dispute


WASHINGTON (AP) -- The United States and China concluded two days of high-level economic talks on Wednesday with a variety of minor agreements but failed to make progress in their dispute over China's undervalued currency.

[Oldcoin]

Today 12:19pm
Greenspan says he fears a "dramatic contraction" in Chinese stocks
- says some asset prices around the world will fall, but it need not hit the real economy very much


http://www.tradethenews.com/story_details.asp?id=217234

Just a little plip on this, I've looked around and couldn't find the whole story.

Lots of China news this week.

[Oldcoin]

Greenspan Says China Stocks May Undergo `Dramatic Contraction'

By Joao Lima and Simon Kennedy

May 23 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said he was concerned Chinese stocks might undergo a ``dramatic contraction'' after its main stock index jumped more than 90 percent this year.
The benchmark CSI 300 Index, which tracks yuan-denominated A shares listed on China's two exchanges, rose to a record 3938.95 today. The index more than doubled last year as investors bet corporate profits would be boosted by the world's fastest-growing major economy.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKAZRfGA3TT8&refer=home

[Birchtree]

The benchmark is a 4,000 - not 40,000. What's the big deal? There are just too many whiney investors in the market that need to be driven out - get out while you can. The bull does not want these weak knees along for the ride - the U.S. market is the most undervalued and will be fine - there is no froth.

[Oldcoin]

The benchmark is a 4,000 - not 40,000. What's the big deal? There are just too many whiney investors in the market that need to be driven out - get out while you can. The bull does not want these weak knees along for the ride - the U.S. market is the most undervalued and will be fine - there is no froth.

Asian Macro News sector headlines
Today 10:00pm

Asian stocks update: Chinese equities ignore Greenspan's comments and regulator warnings, and JPY gives up some gains - JPY gives up some gains after Chinese equities ignore Greenspan's comments

http://www.tradethenews.com/story_details.asp?id=217433


Seems the Chinese agree with you. :D

[Oldcoin]

Wolf in the FT today on the Roubini recent paper on Asian financial issues and the instability of BW2

Nouriel Roubini | May 23, 2007


http://www.rgemonitor.com/blog/roubini/195966/

[jayhawker]

China Syndrome? Greenspan Worried Shanghai Will Burst
(http://biz.yahoo.com/ibd/070523/feature.html?.v=1)
Interesting chart at the bottom of the article.

[EW_ret]

Chinese authorities raise trade stamp duty 300%: (http://money.cnn.com/2007/05/29/news/international/china.reut/index.htm?postversion=2007052914) This could start the anticipated correction in world stock markets. What do you think?

[tsptalk]

China slides another 5% early Thursday but is starting to rebound some. That's over 11% in a day and a half. If it does not rebound, our market won't ignore it too long.

[Oldcoin]

Yesterday, the amount of M3 pouring into our markets was extremely high, and I believe it was a Bernanke attempt at
showing investors that we are exempt from what happens in China.

Part of the reason for the huge liquidity injections was the fact that the Shanghai dropped over 6% the previous day and Bernanke
wanted to make sure that our markets were not going to be a China victim. The irony is that this gave encouragement to Chinese
investors, and this is now going to make it harder for Chinese officials to curb the out-of-control speculation.

Below is a number of charts showing how the market initially reacted to China's 6% drop at the open.

http://www.stocktiming.com/Thursday-DailyMarketUpdate.htm

[tsptalk]

Did anyone notice China's late sell-off last night? An early rally turned into another 2.65% loss...

http://www.tsptalk.com/images/china060107.jpg

[tsptalk]

China opened down another 4% tonight (Monday morning their time). They are now down 11% off their recent high (in 3+ days). Now, where's our 10% correction? :rolleyes:

[Show-me]

Down over 6.38% and falling.

http://finance.yahoo.com/q/bc?s=000001.SS&t=1d

[tsptalk]

Now down 7.5%. It will be interesting to see if Japan stays positive when their trading resumes later on. They ended the early session up about 34 points.

[ebbnflow]

Apparently, China's raising of stamp duties is working in cooling down their market. That's what we want, right? :(

[James48843]

How about this-

Shanghai dropped to 3697, and then bounced back over 100 points. Now just 4.49% off for the day. And at the same time, Japan Nikkie 300 is UP by .49 percent. Japan just brushed the whole China thing off.

Tom, you asked where our 10% pullback was. It's coming. I don't know when, but it's got to be coming, and soon. Markets just don't go up, up, up like this without a pause to refresh, even in the good times.

You are on target, we are due, and soon, for some kind of pull back, even a partial one of 3% or so.

I'm pulling some off the table today and waiting for the pullback. I smell it in the air.

[mayday]

China down 8.26% today. Their efforts to cool their market down is working.

[Show-me]

Thought I hear a flushing sound in my sleep last night.:eek:

[weatherweenie]

China down 8.26% today. Their efforts to cool their market down is working.

Strangely, their tanking didn't do much else to the rest of Asia.

[Oldcoin]

Monday, June 4th.

There was finally a decent fear reaction by Chinese investors this morning, but the world markets through the central banks were prepared this time. When China announced an increase in the investment stamp tax last week, central banks reacted with systematic injections of liquidity to stem an sympathetic reaction into other world markets.

The Shanghai Composite dropped 8.26% this morning. Last Wednesday, I mentioned to Advanced subscribers, that if we broke short term support, “then it could drop 500 points for another 12% drop.” This morning’s drop now puts us 4.53% to 5.32% away from its next strong support level. That can be reached in 1 to 2 days now.

This drop will not have the same impact on our markets that the February 27th. Shanghai drop had because our markets are defensively prepared.

The biggest future danger for China is the possibility of social unrest caused by protest of those who lose money in the Shanghai. Signs of this possibility became visible last week when some investors launched a signature campaign
demanding the impeachment of the Minister of Finance.

Thousands of other investors got more out of control and marched to Tiananmen Square with banners saying that the Chinese government wasn’t keeping its promise to them. The Finance Ministry had its served hacked and shut down for hours. This group was much angrier and said that the government “was cheating the public and not being responsible to its people”. Some said that, “the government was relying on making money through increasing tax revenue and that its actions were similar to their actions in taking away peoples' lands."

http://www.stocktiming.com/Monday-DailyMarketUpdate.htm

[mayday]

How would you feel if you were taxed more on your investments { like a republican under democratic control}.

[ebbnflow]

They're letting the air out of the bubble a little bit at a time. China's gonna have to be careful...it's like baking a souffle...you don't wanna...:notrust:

[tsptalk]

This may be getting monotonous, but China was down another 5% in early trading Monday night.

[weatherweenie]

Talk about volatility!

Shanghai went from -5.66% to +2.63% intraday!


AP
Chinese Stocks Rebound in Late-Day Rally
Tuesday June 5, 6:44 am ET
By Elaine Kurtenbach, AP Business Writer Chinese Stocks Rebound in Late-Day Rally After Early Losses
SHANGHAI, China (AP) -- Chinese stocks rebounded in volatile trading Tuesday following their sharpest one-day drop in three months as strong buying by institutions offset selling by retail investors. The benchmark Shanghai Composite Index gained 2.6 percent to 3,767.10 after a rollercoaster session that saw the index plunge as much as 7.2 percent earlier in the day. It fell 8.3 percent on Monday -- the benchmark's sharpest decline since an 8.8-percent drop Feb. 27 triggered a global market sell-off.

[vectorman]

UPDATE 2-US senators to unveil China currency bill Wednesday

By Doug Palmer

WASHINGTON, June 11 (Reuters) - Four U.S. senators announced plans on Monday to unveil a long-awaited bill aimed at pressuring China to let its currency rise in value more quickly, despite the Bush administration's insistence it has all the tools it needs........


http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com: 20070611:MTFH04327_2007-06-11_21-38-23_N11194011&type=comktNews&rpc=44

[Scout333]

Environmental concerns. I heard a report driving in to work this morning that there are serious pollution problems in Chinese rivers near large cities such as Xia?. From that city alone they are dumping over one million tons of raw sewage per day into the nearby river. Negative impact on their economy, health of citizens,etc. Seem to be reports of contaminated products such as toothpaste manufactured there and exported to U.S. Any thoughts on long-term impact of these practices on their economy (I -Fund)?:worried:

[FundSurfer]

Environmental concerns. I heard a report driving in to work this morning that there are serious pollution problems in Chinese rivers near large cities such as Xia?. From that city alone they are dumping over one million tons of raw sewage per day into the nearby river. Negative impact on their economy, health of citizens,etc. Seem to be reports of contaminated products such as toothpaste manufactured there and exported to U.S. Any thoughts on long-term impact of these practices on their economy (I -Fund)?:worried:

Chinese stocks not a part of the I-fund. Chinese collapse would impact from the standpoint that speculators who loose money in China will have less to spend eleswhere.

[Scout333]

Thanks! Good to know.

[robo]

Inside the Ring
By Bill Gertz
June 15, 2007


China arming terrorists
New intelligence reveals China is covertly supplying large quantities of small arms and weapons to insurgents in Iraq and the Taliban militia in Afghanistan, through Iran.
U.S. government appeals to China to check some of the arms shipments in advance were met with stonewalling by Beijing, which insisted it knew nothing about the shipments and asked for additional intelligence on the transfers. The ploy has been used in the past by China to hide its arms-proliferation activities from the United States, according to U.S. officials with access to the intelligence reports.
Some arms were sent by aircraft directly from Chinese factories to Afghanistan and included large-caliber sniper rifles, millions of rounds of ammunition, rocket-propelled grenades and components for roadside bombs, as well as other small arms.
The Washington Times reported June 5 that Chinese-made HN-5 anti-aircraft missiles were being used by the Taliban.
According to the officials, the Iranians, in buying the arms, asked Chinese state-run suppliers to expedite the transfers and to remove serial numbers to prevent tracing their origin. China, for its part, offered to transport the weapons in order to prevent the weapons from being interdicted.
The weapons were described as "late-model" arms that have not been seen in the field before and were not left over from Saddam Hussein's rule in Iraq.
U.S. Army specialists suspect the weapons were transferred within the past three months.
The Bush administration has been trying to hide or downplay the intelligence reports to protect its pro-business policies toward China, and to continue to claim that China is helping the United States in the war on terrorism. U.S. officials have openly criticized Iran for the arms transfers but so far there has been no mention that China is a main supplier.
Defense Secretary Robert M. Gates said Wednesday that the flow of Iranian arms to Afghanistan is "fairly substantial" and that it is likely taking place with the help of the Iranian government.
Defense officials are upset that Chinese weapons are being used to kill Americans. "Americans are being killed by Chinese-supplied weapons, with the full knowledge and understanding of Beijing where these weapons are going," one official said.
The arms shipments show that the idea that China is helping the United States in the war on terrorism is "utter nonsense," the official said.


http://www.washingtontimes.com/national/inring.htm

[vectorman]

China set to retest its prevous all time high, perhaps tonight.

http://www.allstocks.com/markets/World_Charts/world_charts.html

[tsptalk]

That test failed and the Shanghai Composite is now over 5% below that peak after being down over 3% last night to 4091. It's looking like a double top but it's too early to be official. We'd actually need to see a drop below 3400.

[robo]

Fast-Growing China Says Little of Child Slavery’s Role

SHANGHAI, June 20 — There is a certain ritualistic aspect to stories in China like the one this past week about the hundreds of people, many of them teenagers or even younger, who were forced to work under slavelike conditions in the brick kilns of Shanxi Province. First, Chinese readers are horrified by a picture of their country that many say they hardly recognize, then a villain is rounded up, and finally, after a torrent of unusually blunt and emotionally charged news reports and editorials, the matter drops from view, ensuring that the larger issue goes unresolved.

http://www.nytimes.com/2007/06/21/world/asia/21china.html?_r=2&pagewanted=1&oref=slogin

[tsptalk]

Did anyone notice China fell off the table last night? The Shanghai Composite was down 4%, all of it in their 2nd half of trading.

[350zCommTech]

Did anyone notice China fell off the table last night? The Shanghai Composite was down 4%, all of it in their 2nd half of trading.

Yes, and with the last two days added to this 3 month chart, it doesn't look good.


1713

[Gilligan]

China's SSE closed down -5.25% last night.

[350zCommTech]

China's SSE closed down -5.25% last night.

That's nearly -8% in two days. When will panic set in? A slow decline is the worst kind, right?:D

[tsptalk]

That's nearly -8% in two days. When will panic set in? A slow decline is the worst kind, right?:D
Watch 3404. That's the low made in June and a drop below there would make it an official double top. Currently 3616.

[Bullitt]

That would be nice if the SSEC broke that support line and finally got it all over with...

I read in the WSJ a few weeks ago stating that most Chinese 'Investors' play stocks according to certain numbers. Numbers can mean various different things in Chinese Culture. For example, the number 6 might mean eternal life, or 5 might mean death. Anyway, the article showed how on some days the market could skyrocket for no other reason other than the fact that certain numbers were involved. If you think of it though, one could manipulate any series of numbers to equal eternal life or good luck every time. The author did assure us that the majority of this trading is retail based and the so called smart money uses fundamental decisions to make financial moves. This reader is not convinced.

[Show-me]

The Daily Reckoning Australia

Baltimore, Maryland USA

Thursday, 19 July 2007


*** China...China...China - soon the planet's third biggest economy -
is now, mostly minding its own business, like America until 1917. But
how long will it be before China begins to throw its weight around?

The Crack-Up Boom is a two-faced beast. To the United States of America
it is 80% crack-up...and 20% boom. To China, it is 20% crack up...and
80% boom. The Chinese work hard. They save money. They invest in new
factories and new infrastructure. They make things. They sell them.
They earn a profit...save it...and re-invest it. Chinese wages are
rising. Living standards are shooting up. The Chinese people are
getting richer; the Chinese economy is becoming more powerful. That is
what a real boom does.

That is not to say that China doesn't have its problems; it has plenty.
And no boom happens without a correction. Given the size and speed of
the boom in China, and given the Chinese government's tendency to err,
the correction ought to be a doozy - perhaps as bad as the Great
Depression in the United States. But the savings, skills,
infrastructure and industrial capacity in the Middle Kingdom will not
disappear.

The problem for China will come when Americans finally realise that
their Crack-Up Boom is not all it's cracked up to be. That may be
happening now (though this is not the first time we've thought so) with
the deepening slump in housing and housing-credit. When it begins, we
don't know...but that Americans will begin to buy less from China
sooner or later we have no doubt. And when that happens, the Chinese
will find that they have overdone it; that they have built capacity for
buyers with no money.

Still, there is a huge, rising domestic market in Asia. After a
difficult transition, China, as low-cost producer of practically
everything tangible, will probably be able to shift production to this
new, emerging consumer market. Then, it can continue to grow...and
eventually do to the New World what the United States of America once
did to the Old World - upstage it.

[vectorman]

China is only 11.99 away from all time high. Tonight will be interesting.

http://www.allstocks.com/markets/World_Charts/world_charts.html

[robo]

China threatens 'nuclear option' of dollar sales
By Ambrose Evans-Pritchard
Last Updated: 9:54am BST 08/08/2007



The Chinese government has begun a concerted campaign of economic threats against the United States, hinting that it may liquidate its vast holding of US treasuries if Washington imposes trade sanctions to force a yuan revaluation.

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/08/07/bcnchina107a.xml

[Tempest]

China isn't going to do anything in the foreseeable future (i.e. one year) for the same reason North Korea is just so nicely opened about their Nuclear program after years of talking about turning the Korean Peninsula into a 'Sea of Fire' blah, blah, blah...

One word can explain that; OLYMPICS.

China will do just about anything from screwing that up. Nothing is going to get in the way of that -war or economic dislocation. They will bend over backwards to get that Olympic show off the ground and cut -off energy and supplies to Kim Jung Il if he gets mouthy or rattles his rusty saber or dud nuke.
The Olympics is a big prestige event for them and they want to showcase to the world they have arrived. (I wouldn't doubt they try some manned space event between now and then.) I wouldn't be surprised if they ban most auto traffic for a month in Beijing to get rid of the smog prior to and during the Olympics.
God help any Chinese dissident group that even bothers to show up and breathe.
They'll be crushed like a roach.
They'll mouth off a bit - but they're not going to do anything to our Monopoly money for now.

And that's how that works.

[Tempest]

You are correct. I read where they have even started a public relations campaign to teach the common citizenry good manners, such as not spitting and not jumping to the front of the line.

HAHAHA Good Luck to them I say.

[Tempest]

I wouldn't be surprised if they ban most auto traffic for a month in Beijing to get rid of the smog prior to and during the Olympics.


Sometimes I scare myself :laugh:

http://green.yahoo.com/index.php?q=node/1261

[Show-me]

http://biz.yahoo.com/ap/070813/china_tainted_products.html?.v=14

AP
China Toy Boss Kills Self After Recall
Monday August 13, 7:01 am ET
By Audra Ang, Associated Press Writer

Head of China Toy Company at Center of U.S. Recall Commits Suicide, State-Run Newspaper Says

BEIJING (AP) -- The head of a Chinese toy manufacturing company at the center of a huge U.S. recall has committed suicide, a state-run newspaper said Monday. Zhang Shuhong, who co-owned Lee Der Industrial Co. Ltd., killed himself at a warehouse over the weekend, days after China announced it had temporarily banned exports by the company, the Southern Metropolis Daily said.

[vectorman]

Amazing...the rest of the world corrects, but China doesn't even blink.

1979

[Callme_CO]

Amazing...the rest of the world corrects, but China doesn't even blink.



It must be all that LEAD in their toys. The whole country is hopped up on Lead infected toys :)

[vectorman]

China testing a key support tonight.

http://www.allstocks.com/markets/World_Charts/world_charts.html

http://stocktiming.com/Monday-DailyMarketUpdate.htm

[Bullitt]

Petro China, (#2 largest company based on market value) was recently unloaded by Warren Buffet because of what he explained as 'valuation'. His explanation speaks for itself. PetroChina sports a PE of 23 while Exxon Mobil, the world's #1 company based on market value carries a PE of 13.

If smartest money in the world is unloading his China holdings, imagine what's going to happen when the rest of the world tries to unload their peice of China.

[Talltimber]

It must be all that LEAD in their toys. The whole country is hopped up on Lead infected toys :)

Stay away from the green Aqua dots. The green Aqua dots are bad. I have tickets for the Olympics, see ya there. As far as investments I can recommend Roast duck (old school only) and beer.

[Tempest]

Petro China, (#2 largest company based on market value) was recently unloaded by Warren Buffet because of what he explained as 'valuation'. His explanation speaks for itself. PetroChina sports a PE of 23 while Exxon Mobil, the world's #1 company based on market value carries a PE of 13.

If smartest money in the world is unloading his China holdings, imagine what's going to happen when the rest of the world tries to unload their peice of China.

That 'ole pirate http://img.photobucket.com/albums/v348/Tempest555/icon_pirate.gif
He can be the Captain of my ship any day. HAR!

[Bullitt]

Tempest, off topic but maybe you know why. I always wonder why Buffett invests in stocks/companies that issue dividends but his Berkshire Hathaway has only given one dividend payment in it's lifetime.

This was in yesterday's WSJ regarding the Chinese Stock Market.

"Bullish appetite for China Begins to Wane"
Mutual-fund managers have had a good run with Chinese stocks, but some are now backing off, saying China's market is a bubble that will burst sooner rather than later.

www.wsj.com (http://www.wsj.com)

[Tempest]

"Tempest, off topic but maybe you know why. I always wonder why Buffett invests in stocks/companies that issue dividends but his Berkshire Hathaway has only given one dividend payment in it's lifetime.
Tempest, off topic but maybe you know why. I always wonder why Buffett invests in stocks/companies that issue dividends."

-Bullitt

Your not asking a lot are you? ;^) My take
As we all know Buffet picks companies that have good value (duh)-he understands a good bottom-line is created by good management-he doesn’t tinker with what works.’. That is a core belief in his management style. If the company issues dividends and has good value per his criteria there's nothing wrong with that.

‘but his Berkshire Hathaway has only given one dividend payment in its lifetime.’

Berkshire-Hathaway is HIS ‘Company’ where he puts his personal stamp.
That works for him.
Philosophical-now remember this guru-lives a simple life style-he practices what he lives; He thinks capital gains taxes are too low and eschews the protection paying dividends gives. Remember Buffet was the one that advised Schwartnegger to Repeal Prop 13 in California because he thought it was inequitable in its tax distribution and California just needed more revenue for it's programs. He recognizes the social utility of tax-something a lot of rich, middleclass and poor people do not or don’t want to understand.
That’s his strength he can hold 2 diametrical opposed ideas in his head-understand them and live them. A Guru-not a Fanatic. He’s a Yoda. He’s always balancing. The Real Deal.

As for China-he's a contrarian. Remember his stance on the Tech Bubble.

As an aside T. Boone Pickens didn’t think China was worth the trouble.


Airbus in 'bama. You'll see.

[Bullitt]

In an interview with Buffett he was asked why his company only issued a dividend that one time. His response was something to the effect, "I excused myself from the board meeting that day and they voted for the dividend when I wasn't there."

[Tempest]

You know-I actually believe him.

[Bullitt]

Consumer inflation in China is being driven by food prices, which rose 18.2 per cent from a year earlier in November, but underlying inflation was at 1.4 per cent - the highest this year - because of higher oil, coal and utility prices.The government views runaway inflation as a serious threat to social and political stability. In its efforts to curb soaring prices has raised interest rates six times this year.

http://www.ft.com/cms/s/0/871c9990-b742-11dc-aa38-0000779fd2ac.html

[Bullitt]

Americans may well be delighted by new figures that show China's GDP is 40% smaller than previously thought.

http://economist.com/world/asia/displaystory.cfm?story_id=10329268

[Bullitt]

Shanghai Composite Index showing major signs of fatigue. It just failed to make a higher high and appears to be starting a downtrend. What effect will it's demise have on the US?

[Bullitt]

Many (Chinese) investors are operating on the belief that the government will not allow a stock market crash before the Olympic games get underway this summer, out of fear that a social crisis would spoil the country’s highly anticipated coming-out party.

http://www.nytimes.com/2008/01/22/business/worldbusiness/23cnd-bubble.html?_r=4&partner=rssnyt&emc=rss&oref=slogin&oref=slogin&oref=login&oref=slogin

[Bullitt]

Jim Rogers thinks the big one is coming. In fact he's so convinced of it that he's obnoxiously telling the world that he's short selling the entire US Stock Market. According to him, China is a goldmine in it's infancy stages. He's even gone as far as moving his family to Singapore.

Could you imagine that? How many illegal Chinamen get smuggled into the US every day and this guy is so disgruntled that he moves abroad. As if his first billion $$ wasn't enough, he just wants to be closer to the Chinese investment opportunities. Watch your back Jim, the PRC MSS is always looking for easy targets.

The worst possible phrase in investing- "It's different this time."

http://money.cnn.com/2008/01/30/news/international/okeefe_rogers.fortune/index.htm?postversion=2008020307

[Fivetears]

China Turns to Economic Controls
China Returns to Communist-Style Controls to Cool Inflation in Market Economy
Fighting stubbornly high inflation, China's leaders dusted off a blunt tool from its pre-market reform era and commanded utility companies to freeze electricity prices. Households got temporary relief after that September order, but the capitalist-style economy produced unwanted consequences. Coal shortages cropped up as power companies cut back on buying and mines reduced production. Freak snowstorms over the past month caught power plants with dangerously low stocks, resulting in blackouts and factory shutdowns.
http://biz.yahoo.com/ap/080210/china_commanding_the_economy.html

[Bullitt]

Well we can't say we weren't warned. China is currently down 40% from it's November 2007 high.

[Bullitt]

More warning signs from China. We can blame it on the China CB tightening, but the fact is, there has been distribution for weeks now. First line of support blown out, 50 DMA gone, 200 DMA taken out, and bearish 50/200 cross all but certain. Looks like there might have been a little H&S break in there as well.

Be careful before investing based on bullish headlines from China.

8042

[James48843]

China- it's the bank policies announced there this week. Tightening of credit.

we'll see. Not looking good.

[Bullitt]

Bulls continue to tout the success of China, aka, the Growth Engine of the Galaxy. Have no fear, China is buying up commodities and even though their exports are down exponentially, it's ok, because it's different this time with ultra low rates. Well, a peek into the news shows that China is crushing speculators and while they haven't publicly identified a bubble, they are taking steps to squash it, unlike our fearless leaders. I see NOTHING bullish about this chart. 2800 gap to be filled at the very least, but bulls will hold on until 2600 is breached. Of course, once it's breached, they'll probably keep buying anyway because by then they'll actually believe they can do it without China.

9198

[Silverbird]

China's model worked fine as long as its customers had bottomless borrowing. You can't export your way out of a problem if a substantial percentage of your customers are out of work and the other's can't/won't borrow, at least until your customers are in better shape. The EU is a larger market than the U.S. for China, so it's not just the U.S. I'm talking about here.

Although they are trying to get out of their stimulus program (which has been going on for some time now in high tech) because it keeps inefficient companies in business, those same businesses keep people employed. They are importing more commodities to make more stuff.

Now they are trying to start an "Idigenous Innovation" program, which of course, makes foreign businesses even more leery about buying their stuff or doing business over there. And of course, even the smell of it (conflicting and ever-changing details as the idea morphs) makes their trading partners p.oed because even the idea smells of breaking trade treaties. This on top of intellectual property problems.

Where are they going to sell their stuff?
How will they keep people employed?
Too much spending on too many big internal projects will give them Japan syndrone


A very difficult balancing act!

[Bullitt]

Shanghai Red Chips rolled over again last night. Markets cannot rally if liquidations are taking place in China.

[Birchtree]

China still has a 9% GDP - everyone is so emotional. It's all an over reaction.

[crws]

China still has a 9% GDP - everyone is so emotional. It's all an over reaction.

I say...
China still has a 9% GDP - everyone is so emotional. It's all a necessary over reaction.;)

[Bullitt]

Who's getting emotional? Hedge Funds?

[James48843]

Chinese Property values begin to collapse-

http://www.bloomberg.com/news/2010-07-05/rogoff-says-china-property-market-starting-collapse-that-will-hit-banks.html


"China’s property market is beginning a “collapse” that will hit the nation’s banking system, said Kenneth Rogoff (http://search.bloomberg.com/search?q=Kenneth%20Rogoff&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1&partialfields=-wnnis:NOAVSYND&lr=-lang_ja), the Harvard University professor and former chief economist of the International Monetary Fund.

As China’s economy develops, “especially at the speed it’s growing, it’s going to have bumps,” said Rogoff, speaking in an interview with Bloomberg Television in Hong Kong. He also said that while recoveries across the global economy are “very slow,” the danger of a return to recession isn’t “elevated.”

Rogoff’s concern echoes that of investors, who sent China’s benchmark stock index (http://www.bloomberg.com/apps/quote?ticker=SHCOMP:IND) to its worst loss in more than a year last week. China’s data have been a focus because the nation has led the global recovery from the worst postwar recession."

[Buster]

China says jailing of U.S. geologist its own affair


"BEIJING (Reuters) –
China said on Tuesday the jailing of a U.S. geologist on charges of stealing state secrets (http://news.yahoo.com/s/nm/20100706/ts_nm/us_china_usa_secrets#), described by the United States as disappointing, was its own affair and other countries had no right to interfere.


Xue Feng, a 44-year-old U.S. citizen born in China, was detained late in 2007 after negotiating the sale of an oil industry database (http://news.yahoo.com/s/nm/20100706/ts_nm/us_china_usa_secrets#) to his employer at the time,
Colorado-based consultancy IHS Energy, now known as IHS Inc.


The U.S. Ambassador to China,
Jon Huntsman, said he was disappointed by the eight-year sentence and that the prosecutor's case (http://news.yahoo.com/s/nm/20100706/ts_nm/us_china_usa_secrets#) appeared "flimsy" and "opaque."

http://news.yahoo.com/s/nm/20100706/ts_nm/us_china_usa_secrets