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Volume I, Episode 31
September 10, 2007
Report on APEC 2007 - Energy Security - Markets Update - IPOs in Hong Kong

August 30, 2007

Chinese Stocks Stay Up - Big Bond Sale - IPOs - Upcoming Party Congress

August 22, 2007

China Stock Markets Get Higher But For How Much Longer? - Surprise Rate Hike - IPO Update

August 14, 2007

China Toy Recall - Markets & IPOs - Western Banks Catch Asian Flu?

August 6, 2007

Shanghai Composite Busts Past 4,600 - Beijing Bets on Banks - Chinese IPOs in Japan

July 31, 2007

China Stocks Up Again & Again! - Pussyfooting Around Currency? - Democracy in Japan?!

July 25, 2007

Will Barclay's Turn Chinese? 2Q/H1 Macro Report + IPOs!

July 19, 2007

Food Fight! China-USA sling hash / Peak Oil? / Markets Flat Line...

July 10, 2007

Chinese markets confused? Big IPOs - Chery+Chrysler

June 27, 2007

COSCO - China Mobile - IPOs - Telecom Mergers & Acquisitions

June 21, 2007

New Record Highs in Hong Kong, Shanghai: Will Beijing Put On the Squeeze? - IPOs & more

June 15, 2007

Fundamental Misalignment: US-China currency war - stock markets up & IPOs

June 7, 2007

China Stock Pop - Hot News items - climate change, tainted food...

May 31, 2007

Chinese stock markets hiccup - IPOs - USA-China Trade Gap

May 25, 2007

Report on the 2nd USA/China Strategic Economic Dialogue: Win-Win or When-When? - Market numbers - New IPOs

May 18, 2007

New life for Hong Kong? IPO Update - USA/China summit

May 11, 2007

Will Shanghai end up like NASDAQ or Nikkei? - IPOs

April 30, 2007

Tulips to Dotcom - is Sino Mania the next big bubble?

April 20, 2007

The Heat is on! - IPO Report - Air Pollution in China

April 15, 2007

China markets, IPO update, Beijing Ready for Olympics?

March 30, 2007

China markets up, up, up! Sinomania! goes to China

March 23, 2007

Focus on National People's Congress... Hi-Tech, IPOs

March 17, 2007

China's new investment strategy, IPOs, the Wrap...

March 7, 2007

China syndrome or hong bao bounce? New IPOs... more!

February 27, 2007

China Stock Market Yo-Yo, new IPO issues, the wrap

February 17, 2007

Chinese New Year edition! Will China buy Chrysler & more!

February 9, 2007

The USA-China WTO trade dispute and New IPOs

February 1, 2007

IPOs: New Red Chip — Bubble Burst? — USA-China

January 26, 2007

BUBBLE TROUBLE? — IPOs on NASDAQ — Renminbi Yuan

January 20, 2007

IPOs in 3 hot sectors — BAOSteel — Macro Report

HKEX Hang Seng Shanghai
SSE Shanghai Hong Kong
SZEX Shenzhen Beijing
MUSIC in China: Listen!

TRANSCRIPT: A Report on the APEC 2007 Summit on Cooperation in Asia-Pacific; Chinese Stocks Continue Rise; New Chinese IPOs on Hong Kong...
Sinomania! Volume I Webisode 31, September 10, 2007

Energy Security: My Report on APEC 2007;
Markets Stay Up;
And IPO Rush on Hong Kong!

APEC 2007

The 15th annual Asia-Pacific Economic Cooperation or APEC leaders' meeting ended yesterday in Sydney, Australia, to mixed reviews. The meeting lacked its usually informal candor and was almost completely ignored by world media, particularly television news.

APEC 2007 concluded with three joint statements by the leaders of the USA, Russia, Canada, China, Japan, Australia, Mexico, and many others, pledging to "promote open, efficient, and flexible economies" and further integrate the Asia-Pacific region.

There is agreement to explore the creation of a free trade area for Asia-Pacific and cooperation on many hot button topics such as strengthening intellectual property protection, preparedness for natural disasters and epidemics, and increased food and consumer product safety.

The biggest breakthrough if there is any potential real impact from the vague statements put forth was an agreement on climate change and energy security that saw China and the USA, the world's biggest energy eaters, agree in principle to a 25% cut in "energy intensity" per unit of gross domestic product.

The accomplishment may be simply getting the USA and China to agree in an international forum that global climate change was something their governments should at least acknowledge.

The declaration on energy security also embraces atomic energy, including collaborations in research and technology sharing, and also green initiatives such as increasing forest cover in the region.

In a final statement, the APEC leaders emphasized their desire to conclude the Doha round of global trade negotiations this year at WTO headquarters in Geneva. APEC nations currently account for almost half of all global trade.

During the summit Australian oil and gas major Woodside signed a deal with PetroChina to sell $45 billion Australian dollars worth of liquefied natural gas from the Browse field off West Australia over the next 15 to 20 years. Partners in the Browse field include BHP Billiton, Royal Dutch Shell, and Chevron.

Such deals are drawing Australia and China closer together and prove difficult for Australian politicians still mired in support of President Bush's "coalition of the willing."


The Shanghai Composite Index hit a new record September 6 at 5,394 but closed today at 5,355.287. The CSI 300 continues up and closed September 10 at 5,377.222. Shanghai B shares rose today to 337.332, the highest level since the end of May. ShenZhen B's slid last week but were back up September 10 to close at 746.212.

Where Chinese markets go from here may be impacted by whether there will be a fifth Chinese interest rate hike given that August inflation was running at six and a half percent - the highest in over ten years and now a real concern to the national government.


The decision by China's State Administration of Foreign Exchange (SAFE) to allow direct investment in the Hong Kong market that I discussed in my last broadcast was delayed by the State Council after securities and banking regulators objected - this news from officials who wish to remain anonymous at the China Banking Regulatory Commission.

The regulators fear a flood of capital will trigger declines in the Shanghai and ShenZhen stock markets. The program will now be tried experimentally but so far only large account holders at the Bank of China in Tianjin are allowed to invest directly in Hong Kong securities.

This will be an interesting change to watch as the influx of Chinese liquidity into Hong Kong could have a major impact on the Hang Seng and China Enterprise indexes in particular.


Last week the New York Stock Exchange got approval from Chinese regulators to open a representative office in Beijing. New York remains a prestige location for Chinese overseas IPOs but NASDAQ is still the champ in terms of new listings having debuted 12 so far this year twice the number in 2006.


A flurry of IPOs are expected over the next week or so in Hong Kong potentially worth billions. Here are some stand outs:

Sino-Ocean Land Holdings hopes to raise over a billion US dollars in an IPO that could be the year's third biggest. The road show started today.

Qunxing Paper Holdings, a paper manufacturer, is looking to raise over $200 million US dollars.

Sportswear maker China Dongxiang produces clothing under the Kappa brand and hopes to raise up to $700 million US dollars in its IPO.

Soho China, property developer out of Beijing, is raising up to $1 billion US dollars.

Another clothing maker, Bosideng, hopes to attract $500 to $800 million US dollars.

Hidili, a privately owned coal producer out of Sichuan province, has an IPO valued at over $500 million US dollars.

Another big energy play, Xinjiang Xin Xin Mining Industry, a copper and nickel miner out of far western Xinjiang looks to raise $400 million US dollars.

So a busy week in Hong Kong!

I'll see you next time!

© Sinomania! 2007 All Rights Reserved.

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