Andy Xie is a former economist with Morgan Stanley who correctly called the correction in Chinese markets in April 2007. He recently wrote a very interesting article on the current state of China’s markets, which I believe holds merit and significant implications. This is a highly recommended read for anyone interested. Here is his article: […]
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I thought I would point out, after my Chinese beer market piece, that Tsingtao today announced a 68% rise in 1H09 profits, backed by a 12.9% increase in volumes. This helps support my argument that Tsingtao is very well positioned to take advantage of significant unrealized potential within the Chinese beer market. Tsingtao’s leading foreign […]
I was perusing the internet the other night, as I usually do, and began to notice a trend. It all started with this headline “SABMiller Halts Beer Volume Drop on Chinese Demand”. At first I didn’t think too much of, so I move on. Several minutes later, on a completely unrelated site, I come across […]
Chinese exports continued struggling in June falling 21.4% y/y compared to analysts’ estimates of 21.0%, and a 26.4% y/y drop in May. Continued declines in exports are being offset by increased domestic demand, which is heavily bolstered by the country’s stimulus package. According to Bloomberg, China’s Premier Wen Jiabao believes the foundation for China’s economic […]
In some upbeat news from China, the Chinese Federation of Logistics and Purchasing (CFLP) index and the CLSA manufacturing index both demonstrated marginal gains in June. The CFLP increased to 53.2 from 53.1 the previous month, while the CLSA index edged up to 51.8 from 51.2. This performance has been driven by China’s extensive stimulus […]
A recent release by Brazilian officials showed that iron ore exports fell to 15.3mn tones in May, a drop of 35% from last month and a 2009 low. This is likely due to diminishing demand by the country’s largest custom, China. A note released by Goldman Sachs confirms this theory stating, “Heavy rains in the […]
A while back I created an excel file that tracks the conditions of global sub-indices. Essentially, I took over 600 sub-indices from around the world and I broke them out by best and worst performing over the past 6 months, P/E and P/B ratios, and dividend yield. I extracted the 15 best and worst performing […]
Quite a few readers have been wondering whether the relatively high P/E valuations of China’s equity markets were justified. This is my response: I would say that type of PE valuation is reasonable for most of the Chinese companies. As everyone knows, growth in China has been very robust over the past several years, and […]
Overview: Chinese Mengniu Dairy: China’s Mengniu dairy was founded in 1999 by a group of seasoned dairy market professionals previously employed by the state-owned Yili Dairy. Mengniu began trading on the Hong Kong Stock Exchange in June 2004. Our DCF based price target is currently HKD26.16: Given Mengniu’s historically strong growth, its ability to generate […]
China’s robust economic growth has led to significant increases in wealth, which has ultimately led to a shift in consumer preferences. This shift has been especially realized in the food and beverage industry. Chinese caloric intake has increased substantially over the past decade, and will continue to climb likely doubling over the next decade. The […]