I’m Back to China.. Here is Some News to Ease You Back In

Wednesday, January 2, 2008 13:18
Posted in category Uncategorized

China mulls law to prevent cheap sale of state assets: report
Falling back onto my days in asset valuation, I found this article quite interesting. The primary reason why I found this interesting is that state assets are not supposed to be sold below “book value” anyway… regardless of what their real market value is. It was a problem that we had real issues with during the initial auctions of NPLs, and it was a ral issue when dealing with high technology investments.

“Modeling Inflation in China – A Regional Perspective”
A very interesting look at a very timely subject. Inflation. with a belief that the future of China is in the second tier, I found this report very interesting as the ECB looked at inflation in these cities… and according to its authors, their findings “have implications for the relative effectiveness of monetary policy across the Chinese provinces.”

New Regulations to Kill Group Renting in Shanghai
A bit of a sleeper story here (h/t Virtual China). In September Wang Jian Shou wrote about why he did not like a recent regulation banning group property rentals. Why I wished I had picked up on this earlier, and why this could be interesting in the future, is the application of the law. For those unfamiliar, it si quite common in universities for students to pack themselves in like models in NY City. 8-10 to a room, they rough it out. It is also a condition you will see many in the retail service industry take up as restaurants, bars, massage parlors, etc will rent apartments for their employees, slice them up, and create dormitories. Where this law could get interesting in its application is on the impact of these industries as “technically” the way their are housing employees appears to be out of bounds…

Around The World: Nanning, Well Connected To SW China
With our ongoing interest in China’s southwest, I found this article about Nanning on Cattle Network to be quite interesting. Essentially an overview of Nanning, special attention is given to its logistics capabilities.

Death Sentence for Taking Bribes
For anyone who thought that corruption scandals we simply a matter of political dog and pony shows, here is a clear cut case to show that the show has gone on. As China looks to continue balancing out the economy and root out corruption, expect to see more cases like this. A quick warning to any of the foreign companies out there. To date, the majority of corruption scandals have not implicated members of the foreign community, but I expect that will change as the central party, the judiciary, and the public begin demanding more accountability. There was once a feeling that China would do anything to protect FDI, but my guess is that we have already begun seeing a few signs where that is changing. Maybe I am out to far on the branch, but that is my hunch.

Nankai Students Show a Buick Who is Boss
During the summer of 2007, when McDonald’s and Yum were in the middle of the student labor woes, I made the comment that students were one of those groups one should not turn against or anger.. and here is another case in point. Just in case you are wondering what the other populations are: elderly (don’t mess with the pension), middle class (don’t mess with the stock market), and peasants (don’t mess with land)

China to adjust import/export duties in an effort to conserve resources
Now, I don’t want to say I told you so too early, but if you remember a few months ago I reported that there were rumors the VAT rebate system would see changes around the end of 207/ beginning of 2008.. and for those of us buying metals and metal products in China, I think we all knew we were first.

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2 Responses to “I’m Back to China.. Here is Some News to Ease You Back In”

  1. mark says:

    January 3rd, 2008 at 5:14 am

    Sounds Interesting!
    There is a show which my favorite show at Atlanta on Jan 4th and 5th its a Chinese New Year Spectacular. This is the best show for this year 2008.
    I saw the preview at: http://www.bestchineseshows.com/site/atlanta

    New Year wishes for all…

  2. Rich says:

    January 3rd, 2008 at 11:56 am

    Mark,

    Thanks for putting up the link for that. This show will also be in the Bay Area later in January. Looks like a huge production!

    R

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