Briefly…Top Ten Tweets: From the Environment to Environmental ODI, Rejected ODI, Odious Autos and Dodgy Data. And a Bit of Economics & Politics.
1. Environment: “It is a disgraceful lifestyle to drive a BMW but have only dirty water to drink”. China’s environment minister http://bit.ly/3qXGp
Comment: The environment is looming large as a topic, and is also getting a lot of fiscal stimulus attention. For more on what he said, and on “green” ODI and carbon taxes, see our post here.
2. Economy: No let up in lending. RMB9 trillion for 2009? Or not? – Caijing: No End in Sight for Loose Monetary Policy http://bit.ly/17gMxx
Comment: There has been a surge in bank lending on the back of China’s fiscal stimulus spending – over RMB5 trillion in the first 4 months of 2009. Could it go as high as RMB9 trillion? Or will the policy taps be turned off? Caijing thinks the money may continue to flow. But the impact on future NPL’s is unclear.
3. ODI: Rio’s says no to Chinese ODI – WSJ: Rio Tinto Scuttles Its Deal With Chinalco http://bit.ly/Ogrf9
Comment: We have reported recently on China’s ODI activities, and these have stepped up a gear…and stalled in one case. Step forward Rio Tinto. The trend continues however, and more is in our post here.
4. US-China: Words or action? – RT @sinostream: http://xi.gs/04Ka Geithner Faces China Skeptics 8:21 AM Jun 4th
The US is on a different footing these days, and the Treasury Secretary’s visit to China was always going to be interesting. The key will be turning the words into action. 1.3 billion people are watching! And quite a few of them seem to have an opinion about the dollar.
5. Stats: Power data impacted by energy efficiency? AFP: China defends economic data http://bit.ly/lHws5 9:26 AM Jun 1st
Comment: An old problem continues to rumble. What to do with stats? This time the data on power tells a confusing story. Does it show a drop in consumption? Or more efficient output? See more in our post here.
6. Positive PMI: WSJ: China’s PMI Expanded in May http://bit.ly/2YbOur 8:33 AM Jun 1st
Comment: Some welcome good news. And a sign that the stimulus package is working. WSJ: “China’s official purchasing managers index, issued by the China Federation of Logistics & Purchasing, was 53.1 in May, down from 53.5 in April, the third month the indicator has stayed above 50”.
7. Consumers & Law: China CSR: China’s Food Safety Law Begins Now http://bit.ly/CfOmD 8:31 AM Jun 1st
Comment: After all the scandals over milk powder, this is timely and welcome news. China CSR notes: “According to the new law, any food addictives that are not in the approved government catalog must not be used. No food products can be sold inspection-free and consumers can claim for ten times of the value of the food they buy once their rights are infringed via poor quality products.”
Comment: China’s geopolitical positioning has been a beneficiary of the global financial crisis, and China is re-positioning commercially as well. Bill Russo notes: “It just seems logical to assume that it’s simply a matter of time before China becomes an exporter of the most symbolic cultural icon: the automobile.”
Comment: There is little doubt that China’s buying spree will continue. The slump is a buying opportunity if you are cash rich, resource hungry, and have a long-term view. Step forward…China! See our blog post for more on ODI.
10. Investment / Divestment: As China (CIC) buys, Goldman sells (ICBC) – FT: Goldman raises $1.9bn in ICBC stock sale http://bit.ly/l42eM 8:14 AM Jun 3rd
Comment: While China buys, foreigners sell. Goldman’s is just the latest to follow the path to cash.