The most interesting pages of the local daily are the Shanghai classifieds. Just yesterday I realized that Shanghai is getting hipper by the day.
“Gone with the Wind”, a recently published book (1939) has arrived here and you can get it at the “Imported Bookstore”.
Don’t start running now to the shop, I know you are eager but I am sure there will be a copy available whenever you feel like it.
For your convenience Cityweekend Shanghai (one of the many expat magazines here) apparently gives free ad space in their personals for the more entrepreneurial relations.
With amazement I read about the IPO of Baidu and the way the price of it’s stock has been going up. China is hot, sure. Internet was very hot one time, it is pretty much mainstream these days but it seems to be getting hotter again. Internet and China combined makes bloody hot although it is hard to find any reason why this combination justifies so much heat.
These two factors are likely the reason that the stock of Baidu has been trading at $ 154,- ?
That means that “..Baidu, which earned $1.4 million last year, is currently valued at $5 billion (based on the $ 154,- price), raising the question of whether we’ll ever learn not to let greed get the best of us and whether this company’s shares are likely to trade below $100 in due time.” source: Investors.com
I screendumped a chart from Yahoo Finance.
I am no financial wizard but it seems like a lot of value given last year’s earnings. Hell, even this website maybe worth something:)
To read some quotes of more informed persons, read the nice list of quotes compiled by
The China Net Investor (China unwalled version), which all seem to point in the same direction… BUBBLE
Also talk starts to spread that Baidu’s market share might be smaller than published.
Additionally there are some copyright lawsuits in progress as well as some new ones are pending .
Originally I wanted to take this topic a bit deeper but lack of time leaves you with the above. Just a short conclusion. Next to the over valued price of Baiduand the small chance they will actually will be able to live up to all the financial expectations etc. there is something else investors may want to consider. Internet in China is perceived as media. The media are supervised by the goverment. Regulations are changed at least once every year. Then again, if you like to gamble, something which is not allowed on the mainland, I suggest “BUY”
I intended to write an article about the Baidu IPO bubble. I might conclude that one later. While searching for some sources I remembered a site where you can simultaneously search Google & Yahoo News. Considering that Google news & Yahoo news are not always readily available here due to some Chinese firewall tactics I think this site can serve as a nice alternative.
Search the news with Newsiness
Just read on Fons’ Blog that the Bank of China is bailing out the Industrial and Commercial Bank of China with some pocket money
China’s central bank has agreed to give the country’s four debt clearing agencies 459 billion yuan ($56.6 billion) to buy bad assets from top state lender Industrial and Commercial Bank of China, the China Securities Journal reported on Friday.
The four would buy the bad assets from ICBC as part of the process of cleaning up the bank’s finances before an eventual planned public listing
No doubt the listing will be a success.
Source: Reuters
The Chinese goverment is contemplating new regulations to protect it’s culture.
A preface says the rules are intended to help China’s “opening up” to the outside world. …..
The regulations will:
… spell out what parts of China’s government are responsible for overseeing what parts of the media and entertainment industry, and they promise to make it more difficult for foreign companies to bring in books, the Internet and video games, and performing acts ..
Spell out the consequences:
“Import of cultural products contrary to regulations will be punished according to the circumstances, and in serious cases the import license will be revoked,” the rules state. “In the near future there will be no more approvals for setting up cultural import agencies.”
And clarify the aim:
A preface says the rules are intended to help China’s “opening up” to the outside world. But analysts and broadcasters said they were part of an effort to clamp down on foreign influence on culture.
source: NY Times: China Issues New Restrictions Aimed at Protecting Its Culture
I was walking the street and as normal trying to avoid all sort of vehicles bumping into me. All went well. At times the little green man was lighting up and I had to wait until the red guy was back before starting to walk. Other times I was stuck in the middle of the road and pretended to live the life of a traffic agent.
Occasionally I heard a shout from behind which made me freeze at the spot so the bike could continue its way on the sidewalk. There were even moments I hid between other pedestrians when crossing the street so they would be my buffer. I must admit that is not very brave behavior but I am sure my insurance company loves it.
Then it happened. I was crossing yet another street, then backtracking and decided to give in to the BMW that wanted to use the same stretch of the road. The BMW stopped though. The driver nodded, gestured with his hand that I should continue my journey on the zebra crossing.
This made me very insecure, was someone playing a trick, was this a Chinese version of candid camera. If I did continue, would the car suddenly accelerate? I calculated my chances, nodded back friendly and gestured him to go first. It’s too dangerous to get used to this kind of politeness.
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