Chinese Companies with No Debt
23/06/12 10:30
There has been a lot of talk lately about the slowing of China’s economy. Most of this talk comes from China’s lessened manufacturing output. However, China has more to offer than just manufacturing. The following five companies all target different sectors of the Chinese market and they all hold zero debt, making them a great investment value.
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Moving China Out of Africa
18/06/12 16:49
Investing in Africa is normally thought of as an extreme alternative investment, something reserved for the Chinese. However, more and more African nations are starting to warm to the idea of capitalism and are growing dissatisfied with China’s dominant presence. This leaves an opening for the alternative investor not afraid to assume some risk for the potential growth and profits that exist there. South Africa was the last country to be added to the BRICS and it still carries value as a growth investment. But there are other countries such as Mozambique and Nigeria that are emerging as potential investments.
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Macau's Gambling Vice
18/06/12 14:29
Steve Wynn, chairman of Wynn Resorts' (NASDAQ: WYNN) Wynn Macau, told reporters earlier this month of plans to spend $4 billion on a second casino in Macau. A brave plan to announce at a time when Macau's casinos are beginning to feel the China slowdown. In 2008-2009 when China experienced an economic crisis the government responded with a $585 billion stimulus. A portion of that money made its way to the casinos in Macau. The same type of economic stimulus package is not in the cards this time around, though. And Macau's casinos are beginning to feel it. The recent growth rates are minimal compared with the growth rates the casinos have experienced in the past.
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Seeking Alpha "Japan and China: New Currency Pact Lifts Chinese Yuan Status"
09/01/12 11:07
China and Japan reached an agreement on what is being referred to as a currency pact in December. As part of the agreement Japan will hold Chinese bonds as part of its foreign exchange reserves. Tokyo will purchase about $500 million worth of Chinese government bonds this year. Japan will likely add yuan slowly to its forex reserve, building its yuan holdings to around $10 billion over the next five years. The small size of the Chinese bond market will limit the pace of accumulation. Currently the US dollar makes up 80% - 90% of Japan’s forex holdings. By adding yuan-denominated bonds to its reserve holdings Japan will join the ranks of Nigeria, Malaysia, Thailand, and Chile.
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Guru Focus "The Dim Sum Bond Opportunity"
19/12/11 08:52
China’s floating currency has long been a source of concern among Westernized nations. The yuan’s floatation is not currently pegged to the to the U.S. dollar, which seems to be the international standard. The sale of the first dim sum bond by China Development Bank Corp in July 2007 was a sign to the world of China’s interest in internationalizing the yuan. Through 2010 only Hong Kong and China banks were allowed to issue bonds in yuan. Now banks throughout the world are able to issue them. That recent policy change is a more solid indicator of China’s intentions with relation to its currency.
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Seeking Alpha "3 ETFs to play China's Population Decline and Shift in Manufacturing"
17/11/11 08:45
Once upon a time, China was the low-cost manufacturing giant. Times have changed as China's population control policies have been effective, draining their once dense workforce. There aren’t as many people to fill jobs, or those willing to be paid a low wage for unskilled labor.
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