Shanghai Composite up: China stocks higher at close of trade

China stocks were higher after the close on Friday, as gains in the Gas, Water&Multiutilities, Technology Hardware&Equipment and Technology sectors led shares higher.

At the close in Shanghai, the Shanghai Composite rose 3.51%, while the SZSE Component index added 5.24%.

The best performers of the session on the Shanghai Composite were Tengda Constr (SS:600512), which rose 10.09% or 0.440 points to trade at 4.800 at the close. Meanwhile, Yunnan Yunwei (SS:600725) added 10.08% or 0.660 points to end at 7.210 and Ancai Hi-Tech (SS:600207) was up 10.08% or 0.620 points to 6.770 in late trade.

The worst performers of the session were Petrochina SS (SS:601857), which fell 1.72% or 0.230 points to trade at 13.170 at the close. Jiangzhong Phm (SS:600750) declined 1.61% or 0.700 points to end at 42.770 and Bank Of China SS (SS:601988) was down 0.96% or 0.050 points to 5.180.

The top performers on the SZSE Component were Huamei Holding (SZ:000607) which rose 10.05% to 11.61, Guangxi Liugong Machinery Co Ltd (SZ:000528) which was up 10.05% to settle at 10.51 and Zhuhai Port Co Ltd (SZ:000507) which gained 10.04% to close at 8.00.

The worst performers were Anhui Deli Household Glass Co Ltd (SZ:002571) which was unchanged 0% to 18.46 in late trade, Beihai Yinhe Industry Investment Co Ltd (SZ:000806) which unchanged 0% to settle at 26.90 and Anhui Zhongding holding Parts Co Ltd (SZ:000887) which was unchanged 0% to 24.75 at the close.

Rising stocks outnumbered declining ones on the Shanghai Stock Exchange by 949 to 9.

Shares in Anhui Deli Household Glass Co Ltd (SZ:002571) unchanged to 52-week highs; unchanged 0% or 0 to 18.46.

The CBOE China Etf Volatility, which measures the implied volatility of Shanghai Composite options, was down 5.94% to 30.23.

Gold for August delivery was up 0.02% or 0.20 to $1144.10 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in August rose 0.18% or 0.09 to hit $51.00 a barrel, while the September Brent oil contract rose 0.47% or 0.27 to trade at $57.19 a barrel.
  1. 2015/11/25(水) 10:00:03|
  2. chinese economy
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Chinese Rate Cut and Payment

China offers a prime example of export-led growth that has benefited from learning by doing and by adopting foreign know-how, supported by a complex industrial policy. Arguably, a modern version of mercantilism has been at work. The Global Crisis put an abrupt end to China’s export-led, high growth and large current-account surplus trajectory. In the US, the private sector was forced to de-leverage and lower demands for imports. Other crisis-hit developed countries also cut back on imports. Consequently, the Global Crisis and its aftermath induced rapid Chinese internal balancing, reducing the scope of future reserve hoarding.

In an attempt to revive the Chinese economy, the People’s Bank of China clipped interest rates for the sixth time since November as well as reduced its reserve-requirement ratio for banks. The country’s benchmark lending and deposit rate was cut 25 basis points, while its reserve-requirement ratio for banks dropped 0.5 basis points.

"The idea that this signals even greater weakness in the Chinese economy is flawed, but so is the idea that rate cuts represent a solution to slowing growth,”said Leland Miller, president of China Beige Book International, in an email to NACM. “When firms don't want to borrow, which is the case now, stimulus doesn't work. So while this is certainly a trading event, its effect on the economy will be negligible."

Credit insurer Atradius also released a new report this week that focuses on payment practices in China. It states that 62% of businesses said domestic business-to-business (B2B)“customers have slowed invoice payment due to liquidity problems over the past year.” On average, domestic B2B credit-based sales are 41.8% of local sales, while abroad B2B credit-based sales are 34.2% of the total value of exports. Both figures are notably lower than the average of the other Asia Pacific countries surveyed.

The statistics “confirm that Chinese respondents prefer payment in cash, cash equivalents or on other terms other than chinese trade credit, particularly in transactions with their foreign B2B customers,” the report notes. “This suggests an inconsistent perception of payment default risks arising from domestic and foreign B2B trade.”

On average, domestic B2B customers are given 37 days to pay invoices and foreign B2B customers receive 41 days. Late payments occurred almost as frequently domestically as abroad, and nearly 94% of respondents experienced late payments from their B2B customers over the past year. “The domestic insolvency environment in China is expected to deteriorate in the coming months, as economic growth is cooling down,” the report says.

  1. 2015/11/17(火) 10:33:34|
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Online shopping in China

Everything is social these days—we play games with strangers online, we post vacation photos on social media platform under the sun so that our friends can comment, and we check forums and reviews before splurging on a particular smartphone model. Even activities that used to be solitary—jogging for instance—have been given a social layer; now apps let us compare our mileage with other runners.

The power of social media is even more pervasive in online shopping. For example: Online Shopping Taobao English agent. How many times have we bought something just because we saw it featured in a blog somewhere last week, or overheard friends discussing about it on Facebook? We may not be aware of it, but a big deal of our purchases (whether online or from physical retail stores) are influenced by the social media we frequent.

Now, social wouldn't be where it is if it wasn't for the instant gratification we get from our mobiles. Whether it is posting pictures of your dinner or a new outfit on WeChat moments or being social through mobile apps, social and mobile are more connected than ever!

Just ask the Chinese—social media plays a big part on how they spend their money and mobile has increasingly become the "how" when it comes to online purchases.
What's So Special About E-commerce in China?

It's a different crowd in China, far different from Western shoppers. This can easily be concluded from an observation made early on by Jack Ma, former English teacher now mogul of China's most popular online retailer Alibaba which he started in 1999. Last May saw the company preparing to release its IPO, which analysts estimated would raise approximately $20 billion. At that rate, it might even beat Facebook's own IPO from back in 2012.

And to think that Alibaba began as a simple B2B website, facilitating transactions between Chinese manufacturers and small businesses.

So what were those observations about Chinese shoppers? Two things:

First is that many Chinese don't use credit cards, which naturally poses a problem for e-commerce sites. Ma's simple workaround was to create Alipay—a service which allows customers to deposit money in a bank account, after which the money is kept in escrow and released to the seller only after the customer has received the goods. The escrow system has cultivated a sense of protection among vendors and buyers, which has encouraged them to do more business.

The second observation is that Chinese are part of a culture that encourages and places a high value on savings. How do you convince shoppers to let go of money then? Again, Ma's simple solution was to offer the basic services of his website free for both buyers and sellers. Once customers realized the value they were getting from Alibaba, transactions came flowing in. And so did profit. In a 2009 interview, Ma was quoted saying:

"A lot of people thought I was stupid and crazy when I said customers are No. 1, employees are No. 2, and shareholders are No. 3, but that's our philosophy," he says. "Shareholders, I respect them, but they're No. 3."

By identifying the wants, needs, and special circumstances of its customers—both the vendors and the public—Alibaba has made itself an indispensable and trustworthy service, the default go-to for everyone who wants to buy or sell anything.

Through diversifying its customer base to cater to other segments in society, Alibaba has spread into other highly successful ventures—Tmall (B2C), and Taobao (C2C)—which have become the biggest players in the Chinese e-commerce market. Although not quite a worldwide household name yet, when Alibaba does achieve that status, Amazon and eBay are going to face some pretty intense competition.
  1. 2015/11/10(火) 10:38:42|
  2. chinese taobao agent
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Easier to Make Chinese Company Check

Credit checks of Chinese companies have been made significantly easier with an online National Chinese Company Credit Information database providing free information about Chinese domestic companies to the public.

China's State Administration of Industry and Commerce has launched the National Company Credit Information System which is an online resource that provides free information about companies to the public. This followed the Provisional Rules on Enterprise Information Disclosure act which took effect on October 1 last year. The new disclosure act require all companies, foreign and domestic in the PRC to submit annual credit reports for public disclosure via the publicly available Enterprise Credit and Information Disclosure System which can be accessed online on a real-time basis. With the new online database, anyone can simply log in and access relevant financial, asset and legal liabilities information – greatly improving financial transparency among businesses in China.

- This is good news for anyone evaluating suppliers and potential business partners in China, says Per Linden, CEO of the consulting firm Scandic Sourcing. One year ago, credit disclosure companies stopped getting access to tax reports, which made it difficult to make credit checks of Chinese companies. To get accurate info, we had to ask the companies themselves to disclose their annual audit reports, which they may or may not do. Now, the publicly available Credit and Information Disclosure System circumvents all that, and I think this is a big step towards simplifying credit checks in China.

Screenshots from the search function of the new online resource for credit disclosure which Chinese companies (and any other company operating in China) are expected to submit their financial information to.

The information companies are required to provide includes corporate registration data, record filing, chattel equity pledge registration, mortgage registration, and notably administrative penalties levied by the Chinese Administration of Industry and Commerce. Look for the latter when evaluating a potential partner or supplier; it's an important indicator of a company's creditworthiness and integrity that used to be confidential. The companies themselves are responsible for the authenticity and legality of the information they disclose and spot checks on the disclosed information will be conducted; third parties may report any information they suspect is false.

Companies that fail to submit their reports in time will be recorded in the directory of companies with abnormal business operations and if the company fail to fulfill their disclosure obligations within three years, they will be recorded in the directory of companies with serious illegal conduct, and their legal representative or person-in-charge will be prohibited from becoming a legal representative or person-in-charge of any other company for three years.

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  1. 2015/11/04(水) 09:56:27|
  2. chinese economy
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