China Merchants Holdings Pacific

[yewkim]

I have my own version of conspiracy theories:

i) The China situation is already cast in stone - $ that wants to flight has already taken flight and is no longer in the system - hence the new leadership cannot embark on the same spending led strategy to accumulate more $ for their own clan of kakis. Hence when they cannot keep printing $ and buying, they do the reverse - tighten and force weak holders to jump;

ii) fortunately, the chinese know these games well and hence till this very day, the most critical backbone remains closed to foreigners - banking and financial system. Whilst everyone knows things are bad, there is very little that they can do with fudged data and economic numbers. Technically any GDP growth below say 7% could already signal that Chinese economy is already in a recession;

iii) infrastructure demand especially road usage is fairly inelastic, a slowdown may shave some usages but would not lead to a dramatic falloff unless there is a new competing road that opens up and siphon off traffic from existing road;

iv) to me, the very day that the substantial holder remains in control with substantial stake, they will do all they can to protect their interests. Still the same story - till the day they decide to dilute, I am not overly concern on the short term fluctuations of share prices.

Vested
GG

I have read before that China needed an 11% annual growth just to keep their unemployment in control. I think thing is very bad in China.

I also come to know that most of their small business is suffering. Some of their revenue is down by as much as 90% ( Qingmei, for example).

If one have Chinese stock, time to take stock. Time to be careful.

May u all prosper.