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Welcome Back! ABC Going in Full Speed!
Everyone! Welcome back to the semester! I hope you are not too overwhelmed by their workload. Someone, and I mean myself, is still in summer mode…
We just had our awesome first general meeting last Friday! What a great turnout! It’s always exciting to meet new group members! So, a little recap for what we did last week for those who did not make it to the meeting. We introduced all of our board members: Victor Chen, President; Kathy Wan, Vice President; Petya Andreeva, Senior Consultant (Abroad in China Fall ’11); Kai Chen and Brian Fung, Case Study Directors; Leilani S C Pao, General Manager for Campus Programming; and myself Ness Dong, Communication Director. Victor also did a case study on Huawei Technologies Co. Ltd to show the gist of how to do a case based on SWOT analysis.
We are planning to do 3 case studies this semester (One case study every two weeks). Leilani is working on bringing guest speakers from consulting companies onto campus.
Hoping to see you all at our next meeting!
Ness
Is the Chinese Listing Bubble Going Bust?
The Chinese version of Facebook.
May 6, 2011
One of the news on the Journal that has pull my full attention recently is the one about the Chinese listing bubble.
It states the unstable nature of Chinese listings. After Renren went public, the stock price dropped, concerning future investor about China’s appetite of future IPOs.
The myth of whether or not the current China is the 1990s Japan is still debatable. While China’s technology is developing quickly, patent issues are on the rise. It is apparent that Renren has many similarities as Facebook, especially at the beginning phase of the website. They have gradually added features that differentiate themselves and target the Chinese netizens. With the inflationary pressure and humble IPO performance, some people are not convinced to believe that country’s growth. Is this a bubble?
By Victor Chen
Please find the Wall Street Journal article on
http://blogs.wsj.com/chinarealtime/2011/05/06/is-the-chinese-listing-bubble-going-bust/
Economy Updates on Developed Asia Pacific
By Victor Chen
Reference: Thomas White-Global Investing
http://www.thomaswhite.com/
Japan’s earthquake and slowing exports test Developed Pacific
Continued efforts to tighten credit in China, inflationary pressures and strengthening currencies were some of the factors affecting export growth across many developed Asian economies. However, a devastating earthquake that struck Japan in early March disrupted supply chains across Asia. Japan, which accounts for 9% of the world’s GDP, plays a crucial role in the functioning of the global auto and electronics industry. Bank of Japan, pumped in nearly 21,000 billion yen ($250 billion) immediately after the quake to avert panic in the financial markets. The World Bank has estimated the cost of damage to Japan’s economy from the earthquake at around $300 billion. The country’s top auto manufacturers, Toyota, Honda and Nissan have closed more than a dozen facilities affected by the earth quake.
Australia: Construction activity hampers output; Central bank holds rate
In January this year, the island witnessed one of its worst floods. The effects of the flood are now sloly showing up in the economy. Loans granted to for the building and purchase of new homes in Australia fell by 4.5% during February along with a fall in the value of lending. Private economists forecast retail sales to grow by only 1.6% this year, compared to the 2.5% growth typically seen after deep recessions.
The other worrying aspects of the flood include the loss of commodity exports. Exports have fallen over 4% since the floods in January. Coal mining activities has been hit hard.
Hong Kong: Surplus to be distributed as handouts and tax rebates
In March, Hong Kong’s chief executive Donald Tsang made major changes to the budget e had previously proposed. Instead of injecting nearly HK$24 billion into pension fund accounts as a way to prudently use the country’s HK$70 billion surplus, he announced that his government would dole out nearly HK$40.5 billion ($5.2 billion) in cash and tax rebates. The government plans to distribute HK$6,000 to all permanent residents aged over 18. However, the handouts are expected to have a negative effect on the country’s inflation, which stood at 4.5% in January, the highest in 29 months. As demand for exports within Asia is cooling down from the highs of 2010, IMF predicts that the volumes of shipments from Hong Kong are expected to half in 2011. After growing at around 15% in 2010, container volumes are expected to grow only around 10% in 2011.
Singapore: Services and consumption expected to counter slower export growth
The country’s GDP, which recorded 14.5% growth in 2010, its fastest pace since 1965, is forecasted to grow at around 4.6% in 2011. Private consumption is expected to climb 4.9% and the financial services industry is likely to expand 7.4% during 2011. The Monetary Authority of Singapore has raised its inflation forecast for 2011 and expects it to range between 3-4% from the 2.9% predicted during th earlier part of the year.
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