$1B profit from China’s most profitable HSR

According to the debt prospectus issued by Tianjin Railway Construction Investment Group, Beijing-Shanghai high-speed railway (HSR), being China’s most profitable HSR , recorded a 2015 net profit of RMB6.6bn (5.0% ROE) or USD1b. Revenue and profit before tax in 2015 were Rmb23.4bn and Rmb6.7bn in 2015, respectively. Total liabilities/total asset was 27.74% as of end-15.… Read More »

China May FAI figures disapponted

Overnight China reports disappointing fixed asset investment (FAI) figures.  Nominal FAI declined to 7.5% YoY in May from 10.1% YoY in April.  The leading indicator, FAI project new starts growth, also decelerated to 19.1% YoY in May from 35.5% YoY in April.  I would interpret the slowing is mainly due to the CCP realized the… Read More »

China holds up edge in global export market

I don’t buy in the argument that China depreciates its currency to lift its “slowing” export and GDP growth.   True, China faces significant export challenges as the competitors depreciate their currencies as if there’s no limit, and China also has its own problems such as high single digit wage growth.  However, China has held up… Read More »

The blind faith in China stock market

Today is the Children’s Day (June 1st) in China.  Yesterday, a shopping mall displayed couple dolls in the front gate to attract the kids, but the management team there would not expect it will create a drama which floods China’s investors community.   Why?  Because these dolls include two bears, and more importantly, those bears… Read More »

5 Types of Chinese Bosses

If there’s someone most likely to drop into your nightmares, it is your boss. Our bosses are very special to us – they know what drives us, how to hurt us, and most shamefully, where our bottom lines are. 1. The Emperor Boss The Emperor Boss literally have hand cancer – somehow they just can’t… Read More »

Watch out, a big policy change looms in China!

Overnight the People’s Daily published an interview with “anonymous authorities” on the topics of China economy.  It’s a very important article as the “anonymous authorities” sends strong policy signals  The interview sends strong signals that China policy will shift from its aggressive easing in Q1 to a conservative position which focus on structural reforms. People’s… Read More »