Chinese
leaders have consistently made clear over the years that feuding
inflation is a top priority because it could lead to social unrest.
With prices rising this autumn for many commodities, the country's
cabinet announced that it would impose price controls on food, introduce
subsidies for the needy and increase the availability of fuel supplies.
As yet, the inflation in consumer goods in China has been largely
confined to food and energy, but avoiding more general inflation could prove
difficult. China's leaders are now certainly worried about the inflationary side
effects of those financial policies. The premier, Wen Jiabao,
recently expressed concern about climbing food prices and promising that the
government would take action.
China is self-sustained in most foods and has an enormous trade
surplus accumulating foreign reserves reaching $2.65 trillion at the
end of September. Last week, in another attempt against inflation,
Beijing ordered commercial banks to put more of their assets in low-yield
accounts at the central bank. The measure was meant to cool a frenzy
of lending over the last two years that has priced urban real estate
beyond the reach of most working-class families.
The China 100 Stock Index closed the week at 938.40
+12.48 (1.35%). Orient Paper Inc., leads the
gainers up 27.17%. QKL
Stores Inc. was the biggest loser down (28.81%).
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Biggest
Gainers
For The Week |
|
Orient
Paper Inc. (ONP) closed this week with a bullish gain of +27.17%.
The leading manufacturer and distributor of diversified paper products
announced
its unaudited financial results of operations for their third quarter
ending September 30, 2010. The demand for paper products in China
stays consistently healthy during the third quarter.
SinoHub,
Inc. (SIHI) saw its shares gain +16.09% this
week. The rapidly growing electronics company in China engaged
in electronic component sales, custom design mobile phone manufacturing
and sales, and electronic component supply chain management (SCM)
services recently
reported Q3 results.
Universal
Travel Group (UTA) finished this week up +11.78%
after leading travel services announced
third quarter 2010 results. The company also just held a
conference call on November 16, 2010, to discuss the company's
successful financial results.
Another
double digit
gainer is Biostar Pharmaceuticals, Inc. (BSPM) was up +11.27%.
The leading over-the-counter Hepatitis B medicine company recently
announced their fruitful financial results for the third quarter ending September
30, 2010. Quarter
three revenue increased
29.7% to $20.2
million with $8.7 million cash flows from operations
year-to-date.
China
Shenghuo Pharmaceutical Holdings, Inc. (KUN) finished with a gain of +10.71%.
Last month filing the SEC
form 8 notice for failing to satisfy a continued listing, the
company just released the management's discussion and analysis of financial
condition and results of their operations. The company also announced Monday
its financial
results for the third fiscal quarter ending September 30, 2010.
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Biggest
Losers For The Week |
|
The
largest drop amongst the bearish companies is QKL Stores Inc. (QKLS) with a
loss of -28.41%. The leading
regional supermarket chain in Northeastern China announced its unfavorable
financial third quarter results. Third quarter net income
was approximately $1.0 million, compared with net loss of $29.3
million for the three months ended September 30, 2009.
RINO
International Corporation (RINO) experienced a drop of -19.60%.
after the clean-technology firm's auditors
found problems with its accounting and it authorized the hiring
of an external law firm to conduct an independent investigation.
This was a
bearish week for China Valves Technology, Inc. (CVVT) with a loss
of -18.46% after attorneys at Brower
Piven announced that they are encouraging investors who lost an excess
of $100,000 from investments with RINO International Corporation to inquire
about the lead plaintiff position in securities fraud class action lawsuit
before the lead plaintiff deadline: January 11, 2011.
With a
-17.54% decline, Perfect World Co., Ltd. (PWRD)
makes the list of weekly losers. Despite announcing
its recent business developments, the leading online game developer
and operator has their shares take a dive after reporting a sharp
drop in earnings for the third quarter.
Asia
Cork, Inc.
(AKRK) closes out the losers list with a -16.67%
decline. The leading cork products manufacturer in Asia recently
signed a strategic agreement with Ferma Wood Flooring for its
utilization of the North American market. The companies agreed to establish a new
joint venture under the name of "Elegant Cork" with the objective to sell
cork products manufactured by Asia Cork.