An
ending came to the export embargo on crucial rare earth minerals to Europe,
the United States and Japan. Rare earths are increasingly in demand
due to their use in a broad range of sophisticated electronics.
Having blocked shipments to all 3 regions, Chinese
customs agents on Thursday morning allowed shipments to resume to all
three destinations. As China's own industrial needs for rare
minerals have grown, Beijing has reduced its export quotas for the minerals over
the last five years. Eventually when China is shipping its full
quotas, the outbound supply is now well below world demand. The Chinese
shipments resumed Thursday morning only hours before Secretary of State
Hillary Rodham Clinton raised the embargo issue at a news conference in
Honolulu, where she announced plans to visit China on Saturday to pursue the
matter with Chinese officials.
The China 100 Stock Index closed at 962.75
+11.06 (1.16%). China Advanced Construction Materials Group,
Inc., leads the gainers up (18.52%).
China Security & Surveillance Technology, Inc. was the
biggest loser down (14.42%).
|
Biggest Gainers For The Week
|
|
China
Advanced Construction Materials Group, Inc. (CADC)
closed the week with a bullish gain of +18.52%.
This week, the leading provider of ready-mix concrete, entered
into a material definitive loan agreement with the Beijing
Branch of Shanghai Pudong Development Bank. The agreement provides
for a loan of RMB 60 million (approximately $9M).
Earlier this week, the company also announced their award of a new $3.5M high-speed rail (HSR) contract as well as securing $10.5M
in debt financing.
With a +13.15%
gain, Acorn International, Inc. (ATV),
the leading integrated multi-platform marketing company announced that
its Board
of Directors consented to a cash dividend of $0.23 per ordinary share
on its outstanding shares to shareholders of record as of the close of
trading on November 15, 2010. Don Yang, Chief Executive
Officer of Acorn stated, "The $20M in dividends continues to reflect
our ongoing commitment to maintaining a healthy cash balance for future
expansion while returning value to shareholders."
Perfect
World Co., Ltd. (PWRD)
finished this week up +12.33% after the launching
of the open beta testing for its 2D Dragon Excalibur yesterday.
The leading online game developer and operator created Dragon Excalibur
to feature lustrous visual effects, clan battles that blend Eastern and
Western fighting styles, diversified pet systems, and innovative
classes and skills. The gaming industry has proven to be a promising
release for Perfect World.
Another
double digit gainer this week was Agria Corporation (GRO)
up +10.29%. The
China-based holding company for
investments in the agriculture sector, announced that it has made
a RMB40 million investment in Wuwei Ganxin Seeds Company Limited.
Agria and Ganxin have made an exclusive sales agency agreement, where
the complete production volume of all current and future varieties of seeds
owned or developed by Ganxin will be sold by Agria, acting as Ganxin's
exclusive agent.
The9 Limited (NCTY)
finished with a gain of +9.39%.
Another win for the gaming industry. The online game operator and developer's
main
source of profitability came from operating World of Warcraft
for internet cafes in China and continues to reap promising numbers.
|
|
Biggest Losers For The Week
|
|
The largest
drop amongst the bearish companies is China Security & Surveillance
Technology, Inc. (CSR)
with a loss of -14.42%. While China
Security, a leading integrated surveillance and safety solutions provider in the
P.R.C., managed to grow its third-quarter revenue by 14%
to $182M, analysts were expecting a top-line of $201M. China Security's optimism for 2010 and 2011's growth is met with
pessimism now that growth is slowing much sooner than anticipated. The
company will be presenting
its current security and surveillance products and solutions
for the 10th China International Exhibition on Public Safety and
Security in Beijing, China on November 2-5, 2010. Hopefully, investors
will regain their confidence post exhibition.
With a -11.85%
decline, Telestone Technologies Corp. (TSTC),
a leading developer and provider of telecommunications local access
networks, made the weekly loser list. Could this be due to the company securing
a 300 million RMB ($44M) line of credit from Bank of Beijing?
Perhaps this didn't sit well with their investors. "With
additional financial flexibility from this line and a backlog of $106M, we
remain confident we will achieve our $129.4M revenue target for
the full year 2010," stated CEO and Chairman Mr. Daqing Han.
China
Biologic Products, Inc. (CBPO)
experienced a -8.84% tumble after just
releasing their quarterly financials just last Saturday.
I guess the results weren't enough to influence CBPO investors hold
onto their stock.
This
was a bearish week for China Armco Metals, Inc. (CNAM)
with a loss of -8.80% after
being listed
on the top 10 open-market insider purchases and sales filed at
the Securities and Exchange Commission. The stock has
done well of late but this week shares of China Armco took a breather,
We'll have to see how things progress next week to see if this
downtrend is the start of a new direction for shares of the company.
Yucheng
Technologies Limited (YTEC)
closes out the losers list with a -7.42%
decline. The leading provider of IT solutions and services to China's banking
industry announced Monday that they'll be holding
a conference call discussing the financial results of the third quarter
on November 11, 2010.