Here are some hot links from Sunday evening:
"A workers' manifesto for China"
-- attributes the lack of consumption (as a % of GDP) in China to a fall in labor income, as household savings rate has not increased. Read my next post for my thoughts on Chinese consumption as a pillar to growth.
"Higher bank reserve ratios may help cool China's stock markets"
-- impact on bonds (flat yield curve) should be larger than that on stocks. Reserve ratio increased to 13% to curb lending, although inflation has signs of lowering in recent months.
"Number of package tourists in Macao up 65.6 pct in August"
-- 70% from mainland China; number of hotel rooms increased 34%. Read my earlier post on Hong Kong tourism vs Macau tourism.
"HK shares fall ahead China Congress, PetroChina soars"
-- perplexing, utterly perplexing. Especially this quote, "Investors believe Warren Buffett's Hathaway Inc. has now sold its entire stake in China's top oil producer, effectively removing an overhang on the stock." Aside from the general momentum on Chinese stocks, how does Buffett's exit remove any overhang on the stock? If anything, there should be more caution and more overhang.
"China hits 172 million internet users"
-- 162 million users in the first half, a 6.17% increase in 3 months.
"Are Hong Kong shares cheap?"
-- according to Bloomberg and some Hong Kong asset managers, they are (cheaper than A-shares). But note the author's comments: doesn't matter where these companies are listed, some firms are trading at gigantic multiples.
"HK's financial surplus may top HKD$50 billion: secretary"
-- Hong Kong will: strengthen convention center site, create jobs and increase standard of living, cut income tax, deal with 2% inflation and its HKD$50 billion surplus.
"China gives toy industry crash course in quality"
-- some 1,000 government officials and business managers are gathered up to learn about quality supervision and foreign (US and European) safety standards. New export contracts will have "quality clauses," and Chinese firms told to develop own brand names and high-end products.
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