Saturday, May 30, 2009
a provider of IP-based telecom equipments
UTStarcom, Inc. (NASDAQ: UTSI), a provider of IP-based telecom equipments, to receive further demand for its IPTV solutions as mobile TV systems become increasingly popular in China and India due to nationwide deployments of 3G wireless networks.
China's New Geography
Growth is moving west along the length of China as the export-oriented eastern belt stumbles. The question for investors is how to play this shift in the economic geography.While per-capita gross domestic product in China's central and western regions is still 50% to 60% of that in the eastern provinces, the momentum is with the west.That is in part due to the effects of China's fiscal stimulus.
The central and western regions are taking the lion's share of the $586 billion in extra spending by central and local governments, getting about 62% of the spending so far, according to Nomura Research.This is already showing up in faster fixed-asset-investment growth in these areas than in the eastern region and seems to be underpinning higher consumption. The sharp rise in passenger-vehicle sales in China this year is being led by provinces to the west like Shaanxi, Ningxia and Tibet.Clear beneficiaries of this trend will be companies with a strong presence in western China. Morgan Stanley's picks include building-materials company Sinoma International Engineering, which has 60% of its capacity in that area, and auto company Dongfeng Motor Group, which has 50% of its distribution capacity there.Even companies that don't do much business outside eastern China now could benefit. In insurance, Ping An Insurance (Group) Co. of China is way behind China Life Insurance in central and western China. But market penetration for the sector is still so low in these two regions that the potential for growth is clear.One caveat: Moving into China's poorer areas may shrink profit margins as companies are forced to cut prices. But for firms starved of growth in the eastern provinces, the opportunity to expand will be welcome.
The central and western regions are taking the lion's share of the $586 billion in extra spending by central and local governments, getting about 62% of the spending so far, according to Nomura Research.This is already showing up in faster fixed-asset-investment growth in these areas than in the eastern region and seems to be underpinning higher consumption. The sharp rise in passenger-vehicle sales in China this year is being led by provinces to the west like Shaanxi, Ningxia and Tibet.Clear beneficiaries of this trend will be companies with a strong presence in western China. Morgan Stanley's picks include building-materials company Sinoma International Engineering, which has 60% of its capacity in that area, and auto company Dongfeng Motor Group, which has 50% of its distribution capacity there.Even companies that don't do much business outside eastern China now could benefit. In insurance, Ping An Insurance (Group) Co. of China is way behind China Life Insurance in central and western China. But market penetration for the sector is still so low in these two regions that the potential for growth is clear.One caveat: Moving into China's poorer areas may shrink profit margins as companies are forced to cut prices. But for firms starved of growth in the eastern provinces, the opportunity to expand will be welcome.
Multinational Companies: Beijing Wants You
Joining the competition between Hong Kong, Singapore and Shanghai, Beijing is seeking to boost its attractiveness as a magnet for Asian corporate headquarters. The Beijing municipal government recently introduced a new set of preferential policies for multinational companies that set up their regional headquarters in the Chinese capital, Xinhua reports (in Chinese here).According to the new rules, which will take effect next month, foreign companies that set up their regional headquarters in Beijing will enjoy preferential rental policies and receive financial support from the municipal government during their start-up periods.
Most competitive banking IT solutions provider
XIAMEN, China, May 7, 2009 /PRNewswire-Asia via COMTEX/ -- Longtop Financial Technologies Limited ("Longtop") (NYSE: LFT), a leading software developer and solutions provider targeting the financial services industry in China, today announced that it has signed a contract to upgrade the Enterprise Customer Information Facility (ECIF) for a leading joint-stock customer in China.
The ECIF is a centralized enterprise-class data warehouse system which collects and maintains comprehensive and real-time information of the bank's nation-wide customers. As one of the most mission-critical applications of the bank, it provides the linkage between all of the accounts that belong to a customer, and supplies customer information to many other application systems such as Customer Relationship Management (CRM), call centers, teller and E-banking systems, as well as Decision Support Systems (DSS).
The ECIF is a centralized enterprise-class data warehouse system which collects and maintains comprehensive and real-time information of the bank's nation-wide customers. As one of the most mission-critical applications of the bank, it provides the linkage between all of the accounts that belong to a customer, and supplies customer information to many other application systems such as Customer Relationship Management (CRM), call centers, teller and E-banking systems, as well as Decision Support Systems (DSS).
Thursday, May 28, 2009
China Growth
China’s growth prospects have improved from three months ago,The world’s third-largest economy will expand 7.5 percent this year, according to the median estimate of 14 economists surveyed by Bloomberg News, up from a 7.1 percent forecast in February. Gross domestic product expanded 6.1 percent in the first quarter, the slowest pace in almost 10 years.
Solar Space (TSL)
Chinese integrated PV solar maker, Trina Solar Limited (NYSE:TSL) has reported less than was expected for its first quarter 2009. The net loss per fully diluted ADS was -$0.42, compared with a loss of -$0.03 in the fourth quarter of 2008. Revenues also fell sequentially, from $216.3 million to $132.1 million. Analysts had been expecting a net loss of -$0.08 per ADS on revenues of $142.5 million.
Battery Maker
Chinese lithium-ion battery maker Advanced Battery Technologies, Inc. (NASDAQ: ABAT) will sell $10 million worth of preferred stock and warrants to three institutional investors. The warrants, which are 180-day Class B Warrants, are worth $10 million, if exercised.
New Refinery in China
The Kuwaiti state oil company, Kuwait Petroleum Corporation, and China Petroleum and Chemical Company, known as Sinopec, (NYSE: SNP) are well along on plans to build a new 300,000 barrel per day refinery in Guangdong province. The total cost of the project is estimated at $8-$9 billion.
Kuwait Petroleum will own 30% of the project, Sinopec will own 50%, and Royal Dutch Shell plc (NYSE:RDS-A) and Dow Chemical Company (NYSE:DOW) will each own 10%.
Kuwait Petroleum will own 30% of the project, Sinopec will own 50%, and Royal Dutch Shell plc (NYSE:RDS-A) and Dow Chemical Company (NYSE:DOW) will each own 10%.
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