China is the country with the largest population in the world at over 1.3 billion people. The land covers approximately 3.7 million square miles. The country is governed as a communist country, although they have developed a quasi-capitalist sector for business. China has the second largest gross domestic product (GDP) at approximately $7.0 trillion; behind the U.S. at $15.0 trillion and ahead of Japan at $5.8 trillion. The leaders opened up the centrally planned economy in the late 1970s and early 1980s to allow economic growth through trade, which has allowed China to grow at an unprecedented rate for a country its size. From 2001 to 2011, China grew at an annualized rate of 10.5%.
Economic data coming out of China does not look good. At the very least, they’re collectively saying that Chinese economic activity is slowing at a staggering pace.China’s Dismal Factory Output, Retail Sales, and Investment Miss EstimatesApril’s factory output increased 5.9% year-over-year, beating March’s 5.6% increase.. Read More
Netflix, Inc. (NASDAQ/NFLX) is in talks with Chinese online media company Wasu Media Holding Co. Ltd. as it seeks a way into the Chinese market. Previously, Netflix planned to enter China without partnering with a local company. Now, however, things have changed. (Source: Bloomberg, May 15, 2015.)Netflix is an online video-streaming. Read More
On Sunday, May 10, the People’s Bank of China (PBOC) announced that it will lower its one-year benchmark lending rate by 25 basis points to 5.1%. They also cut the one-year deposit rate by the same amount to 2.25%. This is the third interest rate cut by China’s central bank in six months.Markets in Asia welcomed the expansionary monetary. Read More
On Monday, May 4, 2015, HSBC released its China Manufacturing PMI for the month of April. The index is down to 48.9—the lowest in the previous 12 months. Moreover, the drop is also the sharpest it’s been in a year. (Source: HSBC/Markit, May 4, 2015.)Purchasing Managers’ Index, or PMI, is an indicator of the economic health of the. Read More
For many of you who have been long-term readers, you know that I’ve been a bull towards China and Chinese stocks. Yes, there was also the period of deception and fraud with Chinese stocks listed on U.S. stock market exchanges a few years back, but much of that has been cleaned up by the Securities and Exchange Commission (SEC).Short-Term. Read More