Category Archives: economy

$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 »