Chinese Economics Thread

weig2000

Captain
It used to be that Chinese companies prefer to go public in the US because of the deep capital market and prestige. The tech companies particularly had a hard time listing in China because of some of the Chinese exchange rules prohibiting unprofitable companies from listing or, in the case of HKEX, share-holder structure requirements, which was why Alibaba went public in the US in 2014 even though they preferred to list in Hong Kong and could not convince HKEX to change the rules then.

All these have changed in the last two years. Shanghai has established the STAR Board, which relaxes the rule for listing new tech companies , and HKEX modified their rules to allow different shareholder classes. That's why Alibaba did a dual listing this year on HKEX, along with other prominent tech companies listed in the US, e.g. JD.com, NetEase. Majority of the established Chinese companies listed in the US would want to go back to China for higher valuation. Attracting Chinese companies to list on NYSE or NASDAQ have been a very profitable business for the US, due to large underwriting fees, trading commissions. It's been the case over the years other stock exchanges such as London, Singapore etc. have competed to list Chinese companies. China is the country from which the largest group of foreign companies listed in the US exchanges

China today has the second largest number of tech unicorns, with the largest valuation. Other than the US, no other countries even come close. The days when Chinese companies needed to establish themselves in an overseas market have long gone. China is a hotbed for great tech companies these day, with both established and startup ones. For the most companies, listing in mainland China or Hong Kong is a much better choice.

Friendly advice: Don't waste your time to engage in lengthy debate with trolls - it's simply a waste of time. Poke fun on or expose him if you so desire, but no lengthy posts. Ain't worth it.
 

zgx09t

Junior Member
Registered Member
It was a long understood position of US regulators to regard the supervision of any foreign regulators, such as China's, as the equivalent of their own, up until Trump cam into the scene with all these anti-China crazies like Ron Vera and his ilk. Reverse side of de-listing attempt via this PCAOB is Trump's ban of US investment in Chinese firms, going against the grain of self professed free market concept, not to mention the complexity and difficulty to enforce it. As if US exchanges are all important these days. It's no longer 70's and 80's. Nobody is going public for building massive, endless factories. Investments in intangibles are almost twice as high as those in tangibles. Setups like SoftBanks and BlackRock are plenty and unicorns are going private equity. Besides, capital can go anywhere they want, according to SEC's own July 2020 round table study no less, meaning money will go to where Chinese listings go, outside of US borders with even less visibility and access for US regulators. Good luck telling quants and hedge fund managers these stocks without PCAOB approval are bad for them, especially when they are making money on these. Pure non-sense. All they can enforce is a little footnote disclosure just like " may contain" in food labels.
 

Tam

Brigadier
Registered Member
Some of the Australian coal are now being allowed to port and to be offloaded. I'm starting to see the real reason why the shipments were "blocked" and is now only being offloaded when coal prices are rising.

What some traders do is buy the entire ship's cargo but they let the ship stay in the harbor fully loaded acting as a storage. The traders wait for prices to go up and then that's where they sell the cargo and only then they offload the ships. This is something that's done with oil tankers, where many traders bought oil at the record low prices, kept them on oil tankers as floating storage, and only ported the ships and offloaded the oil when the oil market prices are high, making huge profits in the process.

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KYli

Brigadier
Some of the Australian coal are now being allowed to port and to be offloaded. I'm starting to see the real reason why the shipments were "blocked" and is now only being offloaded when coal prices are rising.

What some traders do is buy the entire ship's cargo but they let the ship stay in the harbor fully loaded acting as a storage. The traders wait for prices to go up and then that's where they sell the cargo and only then they offload the ships. This is something that's done with oil tankers, where many traders bought oil at the record low prices, kept them on oil tankers as floating storage, and only ported the ships and offloaded the oil when the oil market prices are high, making huge profits in the process.

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China would always strike a balance between helping the coal mines or the power plants. If the prices of coal went down too much, then China would cease issuing more quota towards power companies for importing more coal. If the prices of coal went up too high, then China would relax its rules to allow more imports.

Due to mines safety inspection and traffic jam over Mongalia, the prices of coal have gone up too much. I think China would allow some Australia coal cargo to offload to ease up the prices. China is being pragmatic. However, I don't think it means that the ban is removed. If things don't improve soon, I think more contracts would be signed with Indonesia, Russia, and Mongolia for coal imports.
 

weig2000

Captain
According to
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published in September 2020, the following are
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:

1. New York
2. London
3. Shanghai
4. Tokyo
5. Hong Kong
6. Singapore
7. Beijing
8. San Francisco
9. Shenzhen
10. Zurich

Six of the top ten are in Asia, and four of them in China. With the world economic weight shifting to Asia, the capital market will go with it accordingly.

-----------------------------------------------------------------------------------------------------
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Chad Bray [email protected]
Fri, December 4, 2020, 4:30 AM EST

More technology companies from across the globe - not just those based in China - are likely to list on Hong Kong's stock exchange in the next five to 10 years, particularly emerging tech leaders in Southeast Asia, according to Alibaba's executive vice-chairman
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.

Non-US investors, as well as sovereign wealth and pension funds, are increasing their allocations to Hong Kong and Asia as they seek to tap future growth in the region, Tsai said at a fireside chat as part of
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's (HKEX) first Southeast Asia Forum on Thursday.
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is the operator of the Hong Kong bourse.

"Think about that huge capital base coming to Asia, and a lot of that is focused on Hong Kong, because Hong Kong already has a critical mass of high-quality technology companies listed here. Hong Kong is the place to be, because global capital is already here," Tsai said at the virtual event.

Get the latest insights and analysis from our
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on the big stories originating in China.

The session was closed to the media, but the HKEX provided a
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of the chat on its website on Friday.

Sovereign wealth funds are likely to increase their allocation to Asia from about 3 per cent to 10 per cent to 15 per cent over time, with much of that focused on Hong Kong's equity market, said Tsai, who is a member of the HKEX's
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.

Southeast Asia could be important market to mine for listings in the future as the Hong Kong stock exchange competes with the likes of New York, Shanghai and Shenzhen as the top destination for global
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. The bourse has been the
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.

Charles Li Xiaojia, who is
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at the end of this month, has
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in recent years to attract more top companies in the region to list on the exchange and make it the go-to destination for trading in the region as part of the bourse's
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.

Those reforms have included changes that allow technology companies with so-called weighted voting rights and pre-revenue biotech companies to more easily list in the city.

Following the slate of reforms,
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raised US$12.9 billion last year with a secondary listing on the Hong Kong stock exchange, the first of a series of "homecomings" by companies that initially listed in the US. Alibaba is the parent company of the Post.

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,
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and
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are among a flurry of US-listed companies that have sought secondary listings in Hong Kong this year amid worsening relations between Beijing and Washington.

On Thursday, the US House of Representatives passed a bill that could
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if they fail to comply with US audit oversight rules. US President Donald Trump is expected to sign the bill into law.

It is the latest escalation in tensions between the world's two biggest economies over a variety of issues, including technology, trade and Hong Kong's autonomy.

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, the operator of Alipay and an Alibaba affiliate, had been set to list in Shanghai and in Hong Kong last month in what was expected to be the world's biggest initial public offering ever, but the IPO was scuttled at the last minute by regulators amid a
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.

China's top securities regulator said last month the speed at which Ant is able to resume its listing will
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for fintech firms.
 

Kaeshmiri

Junior Member
Registered Member
Some of the Australian coal are now being allowed to port and to be offloaded. I'm starting to see the real reason why the shipments were "blocked" and is now only being offloaded when coal prices are rising.

What some traders do is buy the entire ship's cargo but they let the ship stay in the harbor fully loaded acting as a storage. The traders wait for prices to go up and then that's where they sell the cargo and only then they offload the ships. This is something that's done with oil tankers, where many traders bought oil at the record low prices, kept them on oil tankers as floating storage, and only ported the ships and offloaded the oil when the oil market prices are high, making huge profits in the process.

Please, Log in or Register to view URLs content!

The whole so called Aus-China trade war is blown way out of proportion. All the big ticket items are untouched by China and infact trade (and Australian trade surplus) is projected to increase next year.

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Aus continues to attack China and for a good reason because China hasn't caused any real harm to Aus and doesn't intend to do so. If ban makes economic sense then China will do it , if it doesn't then it wont no matter how bad diplomatic relations are. So i think everybody here needs to lower their expectations wrt to Aus getting punished.
 

Orthan

Senior Member
Just accept the simple fact that China has no obligation to comply with the US rules.

Of course it hasnt. Just like the US has no obligation to allow foreign firms in their stock exchanges that dont play by their rules. I think that we can agree on this.

Other countries who don't have the backbone

In these years, i havent heard anyone complaining about it. I dont think that these are exactly national/security/technological secrets, dont you think? china says that company audit information is a state secret because the companies may deal with the state. Seem to me that they are hiding something. Perhabs, china´s state capitalism secrets??;)

If this isn't imperialism, then what is.
Its called leveraging a nation´s financial/economic power, just like china does when it can.

Are you serious?
Yes, im very serious.

Friendly advice: Don't waste your time to engage in lengthy debate with trolls - it's simply a waste of time. Poke fun on or expose him if you so desire, but no lengthy posts. Ain't worth it.

Are you calling me a troll? Point it to where i have done so.
 

KYli

Brigadier
Of course it hasnt. Just like the US has no obligation to allow foreign firms in their stock exchanges that dont play by their rules. I think that we can agree on this.
Isn't that obvious

In these years, i havent heard anyone complaining about it. I dont think that these are exactly national/security/technological secrets, dont you think? china says that company audit information is a state secret because the companies may deal with the state. Seem to me that they are hiding something. Perhabs, china´s state capitalism secrets??;)

You can't wake a person that is pretending to be asleep.

Its called leveraging a nation´s financial/economic power, just like china does when it can.
Yes, im very serious.
Imperialism
"a policy of extending a country's power and influence through diplomacy or military force."


Are you calling me a troll? Point it to where i have done so.

I have to agree with him.
 

Tyler

Captain
Registered Member
Of course it hasnt. Just like the US has no obligation to allow foreign firms in their stock exchanges that dont play by their rules. I think that we can agree on this.



In these years, i havent heard anyone complaining about it. I dont think that these are exactly national/security/technological secrets, dont you think? china says that company audit information is a state secret because the companies may deal with the state. Seem to me that they are hiding something. Perhabs, china´s state capitalism secrets??;)


Its called leveraging a nation´s financial/economic power, just like china does when it can.


Yes, im very serious.



Are you calling me a troll? Point it to where i have done so.
The US would not allow foreign regulators to audit their American companies for the same reason.
 
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