The
2010 Nobel Peace Prize was awarded this weekend to Chinese dissident Liu
Xiaobo for his alternative method of non-violence to demand fundamental
human rights in China. This year's peace prize followed a long tradition
of honoring dissidents throughout the world, but this was the first Nobel
for China's dissident community since it resurfaced after the country's
communist leadership initiated economic but not political reforms thirty
years ago.
Liu, son of a soldier, joined China's first wave of university students
in the 1970s after the Chinese Cultural Revolution. Liu Xiaobo was
sentenced last year to 11 years for subversion. The recipient has
been an ardent advocate for peaceful, gradual political change rather than
confrontation with the government.
The China 100 Stock Index closed at 906.51 +23.92 (2.71 %). China Sky One Medical, Inc. led
the gainers up +1.66 (+22.10%).
Bohai Pharmaceuticals Group, Inc. fell to the opposite side of the totem
pole as the biggest loser this week down -.24
(-10.43%).
Top Gainers For The Week
Topping the list
of weekly gainers is China Sky One Medical, Inc. (CSKI) with
a harrowing performance up +22.10%.
The fully integrated pharmaceutical company recently announced that their
2010 Annual Meeting of Shareholders will take place on October 12, 2010
at the Company's headquarters at Songbei Development District, Harbin,
China. Executives will be providing an investor presentation to discuss
growth strategy, business outlook, and financial performance. The
annual shareholders
will also be electing of seven directors for one year.
Next in line is Zhongpin,
Inc. (HOGS) finishing the week with a gain of +20.31%.
Zhongpin Inc., one of four other processors accounting for less than 10%
of China's total market share, reported a 10.1% increase last week
promoting the company as one
of Nasdaq's top 10 largest percent increases last week.
Xinyuan Real Estate
Co., Ltd. (XIN) was the third biggest gainer in the China Vesting
Index this week +19.26%.
In a country where people loathe talking about their status if they're
financially performing poorly, developers sentiment about sales volumes
are confident and there's
no signs of postponing construction. The Chinese bubble
situation is very different from the true bubble situation in the U.S.
where you have a lot of people using debt to make purchases. In China,
the limit on the loan-to-value ratio for buying apartments has never been
more than 80%, and in fact now, the limit is more typically 70%
for second-home purchases.
Agria Corporation
(GRO) crossed the finish line in fourth place with a promising +16.78%.
Early investment strategies sure paid off. Last month the company announced
their RMB40
million investment in Wuwei Ganxin Seeds Company Limited.
The agreement states Agria is to receive a 49% equity stake in Ganxin,
a corn seed research, development, production and sales company based in
the Gansu province, China. The agreement is one of Agria's ongoing
strategies to strengthen the seed division through series of acquisitions
and organic growth.
Last but not least
with a +15.15% increase is China
Biologic Products, Inc. (CBPO). The biopharmaceutical
company occupied in development and manufacturing of plasma-based pharmaceutical
products, increased their revenue 23%
year-over-year to $40.9 million. The company also
successfully
confirmed its 2010 revenue guidance range of $142 million to $149 million,
and adjusted net income range of $34 million to $36 million.
Top Losers For The Week
Bohai Pharmaceuticals
Group, Inc. (BOPH), the worst performing company last week suffered
a loss of -10.43%.
Just Wednesday, the company released
a white paper about China's Traditional Chinese Medicine Market.
Entitled "Traditional Chinese Medicine: Ancient Cures Thrive in Modern
Age," the white paper conveys the history of Traditional Chinese medicine
in China and the differences between its use and that of Western medicine,
the expanding size of the TCM industry in China. Traditional Chinese
Medicine has enormous potential for alternative healing, but the company
should find a cure to increase investor confidence as well.
With a
-9.58% decline, Tongxin International,
Ltd. (TXIC) was the second biggest loser for the week.
As a whole, the Chinese
Auto Parts Stocks Index has been trading flat lately. The
Index is currently dragging the S&P 500 by more than -6%
over the last month.
Also making the loser
list is New Oriental Edu & Tech ADR (EDU)
-7.77%.
The company reported
first-quarter
earnings to be beneath what analysts estimated due to low enrollment,
causing its shares to slip more to an interim low of more than 13%.
The Material Definitive
Agreement filed last week didn't do wonders for Yayi International Inc.
(YYIN). The company dropped -7.69%.
The company
entered into a securities purchase agreement with 119 U.S. accredited
investors and Euro Pacific Capital, Inc. The Company issued
and sold to the Investors 892 units at a purchase price of $10,000 per
unit, resulting in gross proceeds of $8.92 million to the Company.
With a -5.76%
decrease, Cninsure Inc. (CISG) made the biggest losers list
last week. The insurance intermediary company recently 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.