October, 2007

Half of world's top 10 largest companies by market capitalization are Chinese

Below, we show a list of the world's top 10 largest companies, by market capitalization. The Chinese companies are in bold. In a sign of the bull rally in Chinese stocks, 5 of the top 10 are Chinese.

  1. Exxon Mobil Corp., US$511 bil.
  2. Petrochina, US$453 bil.
  3. General Electric, US$414 bil.

HKMA Head Source of Drive to Make H-A Shares Convertible?

Joseph Yam, the head of the Hong Kong Monetary Authority (HKMA), Hong Kong's Ben Bernanke, now looks set to retire from his position in 2009, according to the South China Morning Post (SCMP) newspaper. Mr. Yam became head of the HKMA in 1993 and has always been a strong supporter of the Hong Kong dollar peg, which fixes the value of the Hong Kong dollar to the US dollar.

PetroChina: buy the rumor, sell the news?

PetroChina's shares bucked the sharp downward trend in Hong Kong today. The Hang Seng Index finally closed down 3.7%, but Petrochina only closed down 0.85% and even traded up during large periods intra-day. Could the company's announcement that it now expects to finally list on the domestic Chinese Shanghai stock market on Nov. 5th have something to do with its steady performance?

CSRC Vice-Chairman was misquoted on H-A share swap plan

Yesterday, we quoted a South China Morning Post article as saying that the China Securities Regulatory Commission (CSRC) vice-chairman Tu Guang-Shao indicated that an H-A share arbitrage mechanism was being considered.

H-A share swap mechanism in China? It just gets more and more intriguing

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Update to this story here. A spokesman says Mr. Tu was misquoted. Life makes a little more sense.
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Political partisanship infiltrates the Post Office in Taiwan

Taiwan politics are entertaining, if nothing else. Now comes news that the political wrangling has reached the Post Office. One G.B. Talovich, a teacher no less, is quoted in the South China Morning Post newspaper complaining:

Follow-up: China's leaders more market savvy than investors realize

In a previous missive the Red Cat Journal speculated that China's move to allow domestic mainland Chinese investors to invest in the Hong Kong stock market could've been a savvy PR move to support Hong Kong shares during the initial period of the sub-prime meltdown.

Head of China's sovereign wealth fund denies already investing in Hong Kong

On September 27th, the Red Cat Journal reported on an article in The Times of London, which speculated that China's new sovereign wealth fund (SWF) had already invested in the Hong Kong stock market. Read the article here.

Better hope China's pension fund windfall doesn't make it's way into market

China's pension fund is set to receive a 40.4 billion RMB (or about US$5.4 billion) windfall under a new draft rule that will require all state-owned enterprises which listed shares on the market from mid-2006 to contribute the equivalent of 10% of their share offerings to the pension fund.

The women billionaires of China: real estate and stock listings create new rich

The two richest people in China are now woman, according the recently released Hurun list of Chinest richest people. Deng Xiao-Ping once said: "To get rich is glorious". If that's true, then there are more and more Chinese basking in glory than ever before.