China Financial Daily

September 30, 2008

China Real Estate Status and Capital Investment Movement

Filed under: Financial News — Tags: , , , , — Nancy @ 10:38 am -0700

Top 10 Chinese Real Estate Companies Issued
Currently, “2008 Chinese real estate company brand value study report” has been issued by real estate TOP10 Research Group; Poly Real Estate ranks the first place for the third time. However, other top 9 companies are: Zhonghai, Vanke, R&F, Hengda, hutchison-whampoa, Capitaland, New World China Real Estate, Country Garden, etc.

Chinese Real Estate Bubble is none second to the United States
Chief economist of CICC, Ha Jiming released the report on the financial crisis in the United States and pointed out that China should learn from the financial crisis, that is, the asset price bubble triggered by loose monetary policy, which will bring the potential risks to financial crises in the future.

Foreign Capital violently sells Chinese Real Estate
As the financial crisis sweeps in the United States, the Morgan Stanley is said to sell its Shanghai residential real estate for the first time. Does the foreign capital collectively sell the Chinese real estate? Does the Chinese property market have lost its attraction to foreign investment? The experts expressed that the withdrawal of foreign investment has little possibility.

Lehman Panic Influences Chinese Property Market or freezes Chinese Real Estate Investment
The Lehman panic Merrill Lynch turmoil will affect other investment behaviors, so they would slow down the speed of investment in China to alleviate the current difficulties. Financial researcher at the Institute of Chinese Academy of Social Sciences, Yin Zhongli said, “However, more worthy of reflection is that the turmoil on Wall Street is caused by the U.S. real estate bubble. But in China, it is different, as the bubble of Chinese market for residential real estate is bigger whereas the commercial real estate is relatively stable. The foreign investment may consider touching the bottom line of commercial real estate.”

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September 19, 2008

Lehman Brothers Focus

Filed under: Financial News — Tags: , — Nancy @ 7:53 pm -0700

Construction Bank said that they held Lehman Brothers bonds of 191,400,000 dollars
Construction Bank, on the evening of 19th, released announcement, that up to the date the bank and its membership group (called “original corporation” for short), held Lehman Brothers related bonds of 191,400,000 dollars.

Lehman doomsday Chronicle
Sept. 9th, Lehman Brothers on Wall Street spread the news of risk, fear spreading. The Korea Development Bank plans to ask the bankruptcy M & A, so Lehman Brothers almost come to an untimely end.

Huaan pay to resolve the Lehman crisis by themselves
Lehman Brothers filed for bankruptcy protection, with the result that a subsidiary operation of Huaan of the business is affected.

Chinese-funded banks related to Lehman amount to 9 The risk of exposure amount to 380,000,000 dollars
Chinese-funded banks related to Lehman include ICBC, Bank of China, Construction Bank, China Merchants Bank, Minsheng Bank, CITIC and so on.

AIG chaged its CEO as Edward M. Liddy
September 20th 2008, AIG announced, that AIG directorate nominated Edward M. Liddy as the CEO.

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September 17, 2008

New Policy of Fund Valuation

Filed under: Financial News — Tags: , , , , , — Nancy @ 8:27 pm -0700

New Policy Implementation of Fund Valuation
Last Friday, Securities Regulatory Commission issued the “Guidance on further regulating Valuation Business for Securities Investment Funds”, which made the new policy arrangement on fair value measurement for fund companies, especially on the valuation for long-term suspension shares. Until yesterday, there were nearly 40 fund companies having issued the placard that they had revaluated the net value of 135 funds; however, the net reductions are mainly 2% approximately, that is, net value for each fund lower 0.01 or 0.02 yuan.

Valuation of New Policy benefits to Fund Holders
To adjust the valuation method could solve the leak for current fair value valuation method, which is propitious to the fair among the fund holders. However, how about the influence on the net value for fund?

Other News:

American government contributed 85 billion USD to become the major shareholder of AIG.

Many Chinese banks including Industrial and Commercial Bank disclosed the situation that they were holding relevant bond of Lehman Brothers; while five listed insurance companies claimed they did not invest the bonds related to Lehman.

In July, Chinese increased to hold 14.9 billion USD national debt of America so the total volume has reached 518.7 billion USD.

China South Locomotive & Rolling Stock plans to cooperate with General Electric Company to establish Diesel Engines Corporation.

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