Carlyle-Xugong. R.I.P.

Wednesday, August 13th, 2008

A long-running Chinese (business) soap opera has finally come to en end, as AP reports: “U.S. private equity firm Carlyle Group has dropped its bid to buy a stake in a Chinese construction equipment maker…after multiyear talks that stirred nationalist opposition. Carlyle’s bid for Xugong Group was closely watched amid U.S. government warnings about possible […]

Stat Wrap (June 2008)

Monday, July 21st, 2008

This month’s stat wrap core comes courtesy of Caijing Magazine, which informs us in its newsletter that: • “China”s gross domestic product (GDP) grew 10.4 percent to top 13 trillion yuan during the first half of the year (according to National Bureau of Statistics)…was down 1.8 percentage points from the same period last year. • […]

Stat Wrap (June 08)

Thursday, June 19th, 2008

The latest stats (with the usual warnings) to come out of China include: Trade: AP reports “China’s trade surplus shrank 10 percent in May from a year earlier, the second straight monthly decline…The $20.2 billion surplus for May was still relatively large — up from a $16.7 billion gap in April and $13.4 billion in […]

Bell (Finally) Rings for Telecoms Reform

Friday, May 30th, 2008

It has been a long wait (we flagged it back in November 2006), with lots of talk, lobbying and political positioning, but the long-expected reforms of Chinese telecoms sector have now been announced. The Economist reported: “BY ANY measure—revenues, employees, customers—it is the largest industrial reorganisation ever. And, reflecting how business is done in China, […]

Stat Wrap: Trade, Inflation & FDI

Wednesday, May 21st, 2008

While all eyes are rightly on the situation in Sichuan, long-term worries about the economy – especially inflation – continue to rumble in the background, and the impact on agriculture in Sichuan could put more pressure on food prices. AP reports: “China’s inflation rebounded in April to near decade-high levels…Consumer prices in April were up […]

More SWF ODI

Monday, April 21st, 2008

We recently had Chinese ODI digging into the mining giant Rio Tinto , and France’s Total. Now it is the UK’s oil company, BP, that is receiving investment from China (in the form of a sovereign wealth fund), as Forbes reports: “China has quietly accumulated nearly a 1% stake in BP to help secure its […]

FX + ODI + OIL = TOTAL

Sunday, April 6th, 2008

China’s overseas direct investments (and lucky near misses) are hitting the headlines with increasing regularity. And it is not just the sovereign wealth fund, CIC, that is driving the action. In the latest news, China has taken a stake in Total. The FT (via Bloomberg) reports: “The Chinese agency that manages the world’s largest foreign […]

Retail Reality

Tuesday, April 1st, 2008

While there can be little doubt that the future of retail in China, and of the Chinese consumer market generally, is full of potential, it is not without its challenges – as seen by big international players like Best Buy and Kingfisher. Access Asia report in their newsletter on the Best Buy situation under the […]

Timing Is Everything (For ODI)

Tuesday, April 1st, 2008

More on Chinese overseas direct investment (ODI), and lucky break for Citic Securities. As world markets suffer turmoil, China’s new breed of overseas investors have been walking through a mine field. There are some bargains to pick up, but timing is critical, as Citic have found – no doubt to their everlasting joy. The International […]

Economic Updates: GDP, Inflation, FDI & Trade

Monday, March 17th, 2008

While the IMF estimates that China’s GDP will grow at 10 percent in 2008 (below an earlier NDRC estimate), a bigger number, which is causing more angst is that for inflation. Already hitting the headlines (and driven by food price increases) Goldman Sachs recently increased its prediction from 4.5 percent (which was in line with […]