Chinascope – Page 979

Waves of Chinese Companies Delisted from U.S. Stock Exchange

Over the past year, waves of Chinese companies (28 in total) have been delisted from U.S. stock exchanges. Since 2011, the total market value of the delisted and about to be delisted Chinese companies has amounted to US$7.8 billion. That compares to US$2.2 billion for IPOs that Chinese companies have issued in the U.S. market. The large number of delisted companies has also had an effect on other Chinese companies that are planning to go public in the U.S. The reasons for the delistings include a stock price that is too low, back door listings (such as reverse takeovers or reverse mergers), and fraudulent accounting practices. The fraudulent accounting practices are the most common reason for delisting.

Source: China Review News, January 24, 2012
http://www.chinareviewnews.com/doc/1019/8/3/8/101983871.html?coluid=7&kindid=0&docid=101983871&mdate=0124000417

Briefings | | January 26, 2012 | Economy/Resources

State Economist: The Real Challenge in 2012 Will Be the Structural Adjustment of the Economy

Outlook Weekly recently interviewed Fang Jianping, the Chief Economist at China’s State Information Center. In the interview, Fang stated that the real challenge to the economy in 2012 will be the economic structural adjustments, rather than inflation or GDP growth. “Although the price level and growth rate may both show downward movement, it will not be drastic and will not exceed the expected range of the State’s macro-control. The potential growth rate of the economy is between 8 and 9 percent. The real challenge is whether there will be substantial progress in the structural adjustments.”

Source: Outlook Weekly, reprinted on China’s Communist Party website, January 17, 2012
http://theory.people.com.cn/BIG5/49154/49155/16901916.html

Briefings | | January 26, 2012 | Economy/Resources

Qiushi: Make Every Effort to Improve Party Leaders’ Credibility

On January 16, 2012, Qiushi published an article titled, “Make Every Effort to Improve Party Leaders’ Credibility.” The article proposed five ways to improve Party leaders’ credibility: 1) Strengthen people’s faith in Communism; 2) Strengthen ties with the masses; 3) Change the concept of being the authorities and provide good services for the masses; 4) Follow rules and procedures; 5) (Have an attitude of) dare not corrupt and cannot be corrupted.

The article lists some examples on how to improve the Party leaders’ credibility, including sending letters to the Party cadres during holidays to remind them, presenting relevant shows, having relevant conversations, having corrupt officials who are in prison share their experiences, visiting farmers in the rural areas, severely punishing corrupt officials, and building an electronic monitoring system.

Source: Qiushi, January 16, 2012
http://www.qstheory.cn/dj/201201/t20120112_134628.htm

Briefings | | January 25, 2012 | Government/Politics

Qiushi: Use the Socialist Core Value System to Guide the Development of Social Ideology

On January 21, 2012, Qiushi, a flagship publication of the Chinese Communist Party Central Committee published an article titled, “Cultural Soft Power Is the Unity of Direction and Quantity.” According to the article, China must “use the socialist core value system to guide the development of ideology in society.” The article criticized and opposed “neo-liberal ideas,” the ideas of "democratic socialism saving China," a "Confucian-oriented China," and "universal values.” The article stated that, at the same time, China can learn any capitalist management principle, mechanism, or technique that is conducive to the development of China’s cultural undertakings and culture industry.

Source: Qiushi, January 21, 2012
http://www.qstheory.cn/hqwg/2012/201202/201201/t20120121_135708.htm

Briefings | | January 25, 2012 | Government/Politics

Chinese Scholar’s Perspective on the Weaknesses and the Strengths of the United States

On January 20, 2012, Financial Times Chinese published an article written by a Chinese professor discussing the weaknesses and the strengths of the United States and the complicated U.S.-China relationship. The scholar pointed out “without the Western countries’ investment in China and the transfer of technology to China, China could not have achieved its rapid rise, though China’s policy of opening and the Chinese people’s hard work made an essential contribution to China’s rise.”

According to the article, the U.S. faces four problems: 1) Job loss and an unequal distribution of wealth due to domestic manufacturing industries outsourcing their production; 2) A rise in the budget deficit and national debt; 3) Having difficulty reaching consensus on the fiscal balance because of friction between the two Parties; 4) Overseas expansion has led to a depletion of its national power. However, the U.S. also has four strengths such as its political system, values, technological innovation and world-class quality education, as well as its top military capabilities.

Source: Financial Times Chinese, January 20, 2012
http://www.ftchinese.com/story/001042828

Briefings | | January 25, 2012 | US-China Relations

HSBC January Chinese PMI Number Released

Jinghua Times reported on January 21, 2012, that HSBC just released its latest Chinese manufacturing industry’s PMI (Purchasing Managers Index) number. The January number is 48.8, which indicates that the manufacturing sector remained weak in the first month of the year: output and new orders are still declining. Qu Hongbin, HSBC’s Chief Economist in the China Region, commented that the HSBC PMI has been below 50 for three consecutive months, which shows that the growth of the Chinese economy is still slowing down. The continuous decline of investment and exports may result in serious challenges for economic growth. The manufacturing sector may very likely face the heavy pressure of dealing with a high inventory level. PMI is an indicator of financial activity reflecting purchasing managers’ acquisition of goods and services. A PMI number below 50 typically reflects a decline.

Source: Jinghua Times, January 21, 2012
http://news.jinghua.cn/348/c/201201/21/n3611197.shtml

Briefings | | January 24, 2012 | Economy/Resources

China Plans Multiple Launches of Missiles and Spacecraft This Year

China News Net recently reported that the China Aerospace Science and Technology Group, which is considered the "cradle" for Chinese missile and spacecraft products is planning a large number of activities. Multiple strategic and tactical missile weapons tests have been scheduled for this year. Also in the plan are 21 rockets with 30 satellites that will be sent into space. They will include one remote-sensing satellite exported to Venezuela, as well as four communications satellites for Nigeria, Bolivia and Belarus. The plan also puts in place a new research and manufacturing administrative structure, which includes a maturity evaluation model, a certification process for production lines, and an integrated safeguard system for weapon types and model management.

Source: China News Net, January 19, 2012
http://www.chinanews.com/gn/2012/01-17/3612130.shtml

Briefings | | January 24, 2012 | Defense/Military

People’s Daily: The U.S. Denies China Is Competitive

People’s Daily recently reported that on January 18, 2012, the U.S. Department of Commerce launched a new combined investigation of anti-dumping and countervailing against Chinese wind power products. Over ten Chinese wind power companies gathered in Beijing to coordinate their reactions. China Machinery and Electronic Products Import and Export Chamber of Commerce issued an announcement on January 20, suggesting that the reason China sold a large number of products in the U.S. was due to the strong competitiveness of Chinese products instead of any government subsidy. U.S. wind power operating companies have welcomed the Chinese products for their better quality and more reasonable pricing. An official from the Chamber of Commerce expressed the belief that the political background of the U.S. presidential election was the true motive behind the investigation. The U.S. Department of Commerce started a similar investigation against Chinese solar power products last November.

Source: People’s Daily, January 21, 2012
http://paper.people.com.cn/rmrbhwb/html/2012-01/21/content_997494.htm

Briefings | | January 24, 2012 | US-China Relations

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

The CCP’s Performing Arts Troupes in the U.S.