Third, signs are emerging that wholesale investors are cashing out, which could initiate a panicked sell-out in the markets. A recent report of the Shanghai-based Centaline Real Estate Consultant Co. Ltd. said an increasing number of foreign property owners are taking the assets in the city off their hands. Though it remains to be seen how serious the selling can be, it is definitely a concern that deserves particular attention.
New Funds Rushhour
Although a clearer picture of the mainland stock markets has yet to be displayed, fund management companies seem to have been convinced of a bleak prospect. By rushing out a number of new funds in July, they are grabbing last-minute opportunities to buy into the big rally before it is too late.
The four newly approved funds this July spent no more than two weeks between obtaining the green light to getting officially issued, according to a report by the China Business News. The fastest was the Franklin Templeton Sealand CSI 300 Index Strengthened Fund that waited for a minimum five working days.
The China Securities Regulatory Commission stipulates that the new funds have a maximum of six months to prepare for issuance after receiving approval. That leaves the fund manager ample time to pick up their best entry points. One example was the China Strategy Fund, which was granted approval on April 27, 2008, but did not proceed with official issuance until October 20, so as to sidestep the prolonged bear market.
The lightning speed of fund issuance reflects a brewing pessimism that the stock euphoria is fading fast, with the newspaper quoted some analysts as saying. "In a market that is topping out, the sooner you jump in, the better you will be positioned," they said.
Chalco Sees Rising Demand
With domestic demand bouncing back, the Hong Kong-listed Aluminum Corp. of China Ltd. (Chalco) is hoping to spill less red ink this year.
The Chinese aluminum giant recently announced to raise spot aluminum prices by 4.35 percent on the back of recovering aluminum demand from the automobile, transportation and building sectors.
Analysts believe the market turnaround is likely to help the aluminum titan rebound after taking a heavy blow last year. Losses in the first quarter of 2009 stood at a dizzying 1.9 billion yuan ($278 million). Aluminum was not the only base metal that has sagged under the heavy weight of withering demand, but its ailment appears to be the worst because of a record high inventory that has pushed down prices.
But for Chalco, crossing the threshold from negative to positive growth may still be an uphill battle, said Shang Fushan, Deputy Director with China Nonferrous Metals Industry Association, in a statement. Higher prices have spurred domestic producers to restart their idled excessive capacity, which could in turn put a damper on price increases, he said.
iPhone to Debut in China
After years of waiting, Apple Inc.'s multifunctional iPhone is finally going to be officially launched on the Chinese mainland market.
Apple has agreed with China Unicom Ltd., the country's second largest operator by subscriber and revenue, to introduce the smart phone into China this autumn, said Tim Cook, Chief Operation Officer of Apple.
Details about the deal remain unclear. But rumors had been swirling that China Unicom has an exclusive agreement with Apple to sell the iPhone in China for three years.
It is believed that the trendy, multimedia handset will give China Unicom an upper hand in winning over young and fashion-sensitive mobile users from China Mobile Ltd., the current market leader. Since China Unicom plans to kick off the third-generation telecommunications network initiative this October, it obviously wants to have a head start with the iPhone.
Apple also held talks with China Mobile about a possible iPhone launch in the past, but the two could not agree on how to share revenues. |