January, 2008

One beneficiary of China’s weather crisis

With snow storms sweeping across China and shutting down large swaths of China’s industry, one company could come out ahead. Just a few months ago, Bosideng’s (3998.HK) IPO was seen as a flop as the shares headed straight down from its IPO price of HK$3.28 in October to a low of HK$1.73 recently.

Follow-up: Taiwanese looking beyond China

In a previous article on rising manufacturing costs in China, the Red Cat Journal described the increased pressure on profitability that foreign manufacturers in China will face going forward. We speculated that the Taiwanese might be among the hardest hit.

Noodles and shoes: Chinese consumer plays

US consumers look like they will finally begin to tighten their belts this year. And difficulties in the US economy could drag down global growth. In such an environment, it seems a good idea to turn toward companies in China that don’t depend on exports and are also not directly linked to global economic trends.

Gunpowder’s long journey from medicine to art

Gunpowder is generally accepted as having been discovered by Chinese alchemists in the 9th century. Its discovery was most likely an accidental by-product of a search for medicines to prolong life. Since its discovery, gunpowder is probably most well-known for its use in weapons and fireworks. Now, however, a Chinese contemporary artist, Cai Guo-Qiang is using it in art.

China’s ‘Hawaii’: from prison to pool villas in a few hundred years

Hainan island, or China’s ‘Hawaii’ as it is known to many Chinese, is situated in the far south of China. It is, in fact, at the same latitude as Hawaii and is popular for its sandy white beaches, sun bathing and water sports. However, from the Tang Dynasty through to the Ming Dynasty (618-1644), it was a place of exile and imprisonment.

Time to invest in Cuba de Asia, a.k.a. Taiwan

Imagine if Fidel Castro’s successor decided the U.S. was not the enemy and opened up Cuba’s economy to direct trade and investment with the U.S. It would be like turning on the lights, after years of darkness. Replace Fidel Castro with Chen Hsui-Bien, the island of Cuba with the island of Taiwan, and the superpower of the U.S.

Could rising egg prices lead to a stock and property market crash?

China's government recently announced further measures to control the rising price of some foods. Under the new measures, large producers of some foods (including dairy, pork, mutton and eggs) must seek government approval if they wish to raise prices. Wholesalers and retailers are under no such restriction, but must notify government officals of price changes when they reach certain levels.

China backing up its monetary policy tightening

Late last year, China announced that it was moving its monetary policy to "tight" from "prudent". You can read what the Red Cat Journal said earlier in this article on China's monetary policy tightening announcement. Now comes another hike in reserve requirements.

New government in Taiwan could boost economy

Taiwan held legislative elections on Jan. 12th. The Kuomintang party won a landslide 81 seats out of a total of 113. Its opponents, the Democratic Progressive Party, came away with only 27 seats. Allies of the Kuomintang won an additional 5 seats.

Take a ride on China's railway growth

Although China's infrastructure build out has been far ahead of many other developing nations, such as India, China still has many years of large infrastructure spending ahead of it. This week, the Red Cat Journal takes a look at an infrastructure-related stock: China Railway Group (0390.HK), listed on the Hong Kong stock market.