This past Tuesday China's central bank raised interest rates
for the first time in almost three years. The IMF seemed pretty
happy... "We support the decision of the central bank of China to
raise its rates," David Hawley, an IMF spokesperson, said at a
news briefing with reporters on Thursday.
"Given the pace of recovery in China, it is appropriate that the
central bank should continue to withdraw monetary stimulus and return
the pace of credit growth to more normal levels," he added.
The 0.25% rate increase is seen by economists as a way to curb asset
and real estate speculation in the Middle Kingdom. There is a
downside which is "hot money" may flow into China at an even faster
pace as institutional investors can hit a double whammy with a higher
than average yield along with the possibility of the Reminbi
appreciating in the future.
For the week, the China 100 Stock Index closed at 952.02 +14.58
(1.56%). SinoHub, Inc., leads the gainers up
(15.53%). LDK Solar Co., Ltd. was the biggest
loser down (16.30%).
|
Biggest Gainers For The Week
|
|
SinoHub,
Inc. (SIHI) ends the week with a bullish gain of +15.35%.
On October 12th, Afshin Yazdian resigned as a member of the
Board. For his replacement, the
board elected Qi He to serve as an independent member of the Board
to fill the vacancy created by the resignation of Mr. Yazdian and also
appointed Mr. He as a member of the Board's Audit Committee.
Looks like stockholders see a promising future with the new board
member.
With a +10.00%
gain, China Shandong Industries, Inc. (CSNH) made the list of
top weekly gainers. On Wednesday, an SEC
filings was published a Non-Reliance on Previous Financials, Audits or
Interim Review. The filing is of an audited consolidated
statement of cash flows for the fiscal year ended December 31, 2008,
the Company's audited consolidated financial statements for the fiscal year
ended December 31, 2009, and the Company's unaudited consolidated
financial statements for the quarter ended March 31, 2010, could no longer be
relied upon.
The next
bullish company is AirMedia Group Inc. (AMCN) with an increase of +7.88%.
The leading operator of digital TV screens that display advertisements
in airports and airplanes, announced Thursday that they
will report its unaudited financial results for the third quarter
after the U.S. market closes on October 26, 2010.
Yuhe
International,
Inc. (YUII) ranks in the top 5 gainers with +7.86%.
The Chinese supplier of day-old chickens raised for meat production, announced
that they priced a registered public offering of 3,600,000 shares of
its common stock at $7.00 per share. Yuhe International, Inc.
expects the offering to yield proceeds, before expenses, of $23.9
million
and devotes to use the net proceeds from the sale of the common stock
for future acquisitions, capital expenditures and general corporate and
working capital prospects.
With a +7.25%,
Cninsure Inc. (CISG) bullied its way to the list of
gainers. Late September, the insurance intermediary company announced that they
had signed a joint venture agreement with Shanghai Puyi Investment
Consulting Co., Limited to target
the Chinese wealth management market. They had also just
announced that it is scheduled to launch a non-deal roadshow in Europe
and the United States in October 2010.
|
|
Biggest Losers For The Week
|
|
The largest
drop amongst the bearish companies is LDK Solar Co., Ltd. (LDK) with
-16.30%. The manufacturer of
multicrystalline solar wafers and PV products, announced Thursday that
Xiaofeng Peng, Chairman and CEO of LDK Solar, has been selected
as the CEOs' Choice of the Year. Apparently investors
didn't see that as an advantage. The award was presented by China
Business Leader Awards 2010 on October 20, 2010. Chairman Peng is now
a qualified candidate for the CNBC Asia Business Leaders Awards 2010.
SOL
ReneSola Ltd.
(SOL) had a -11.35% loss this
week. Due to the U.S.
government's official investigation into alleged unfair trade
and
investment practices by the government of China in green technologies,
across the board, solar stocks were slammed in reaction. U.S.
Trade Representative Ron Kirk stated that the inquiry comes in
response
to a petition filed by the United Steelworkers with the
government
last month.
The next
bearish
company ended the week with a -10.61%
decline. China Marine Food Group Limited (CMFO), a
manufacturer of Mingxiang seafood-based snack foods, marine algae-based beverages
and distributor of frozen marine catch announced Wednesday of their $2.0
million of Hi-Power beverage sales for the month ended September 30,
2010. "Sales of Hi-Power were strong the summer since consumers typically
drink more liquids in these hot months," began Pengfei Liu,
Chairman and CEO of China Marine. The world is well into the cold
season of Fall.
With -10.27%,
Xinyuan Real Estate Co., Ltd. (XIN) had quite a descent. The
National Association of Home Builders/Wells Fargo stated its
builder confidence index rose to a reading of 16 in October from 13
in September estimating for a reading of 14. While an
optimistic outlook among homebuilders is a bullish signal for the stocks, the sector
is still feeling pessimistic pressure from high unemployment and a
demand slump post expiration of Obama's homebuyer tax credits from
June.
Yingli
Green Energy Holding Co. Ltd. (YGE), with a -10.25%
tumble, announced that they have secured supply contracts to deliver a
total of 445MW of PV modules in 2011. Other than the contract, a
0.25%
interest rate surge jump started rumors that Beijing may let
the yuan strengthen versus the U.S. dollar and other currencies. That
move could possibly force Yingli into a drawback: raise prices to
account for the relatively higher cost of making its solar panels, or live with
lower profits instead.