China-Stock-Market.com, China Stock Market Guide and News

China Pediatric Pharma Reports Reverse Merger, 2009 Results

SeekingAlpha.com — Thu, 29 Apr 2010 15:55:14 +0000

ChinaBio Today submits:

China Pediatric Pharmaceuticals, Inc. (CPDU.OB), which completed its reverse merger in October 2009, said its revenues rose 14% in 2009 to $16.7 million, though net income declined slightly to $2.5 million. The company ended its fiscal year with $900,000 in cash. Its only operating entity is Shaanxi Jiali Pharmaceutical Co., Ltd., headquartered in Xi’an.

All but one of China Pediatric’s 26 products are OTC preparations, and 78% of the portfolio targets common childhood illnesses. The company produces half of its SFDA-approved drugs itself, while the other half are manufactured by outside companies. Most of its products, a total of 17, are TCM drugs, and the remaining nine drugs are western.

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The RMB and the Magic of Accounting Identities

SeekingAlpha.com — Thu, 29 Apr 2010 15:37:15 +0000

Michael Pettis submits:

One nice thing about writing a blog is that I don’t need to be topical. Not only can I write worriedly about rising contingent debt levels three or four years before they become obvious, but I can also revisit a controversy that took place March involving Paul Krugman and Stephen Roach. I revisit this old controversy because although the period of nasty trade dispute seems to have come to an end, with conciliatory noises being made between the major parties, trade tension is not going away. In fact it is going to become internationalized, with more noise coming from other developing countries, who have already begun complaining about RMB policy (for example last week the governors of the central banks of both India and Brazil came out with strong statements about the RMB). In the end, large trade deficits are not politically compatible with high unemployment, and in my opinion things only will get worse on both fronts.

So while this post might not be currently topical, the subject will again become so very soon. To start, and in response to many of the comments from recent postings, especially some emailed comments from friends, I wanted to work through Paul Krugman’s point on currency intervention because, as I see it, he is simply using accounting identities to set out the parameters of how to think about the issue of RMB revaluation.

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Baidu.com Gaps Over 10% at the Open: A Look Past Occurrences

SeekingAlpha.com — Thu, 29 Apr 2010 13:43:48 +0000

TickerSense submits:

BIDU is currently up 14%. There have been eight days since its IPO that BIDU has opened up more than 10% (click charts to enlarge).

BIDU (2005-Current)

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Bayer Reports $709 Million in 2009 China Revenues

SeekingAlpha.com — Thu, 29 Apr 2010 13:23:38 +0000

ChinaBio Today submits:

Bayer AG (BAYRY.PK) said its China revenues in 2009 totaled $709 million, a 28% increase from the year earlier. This means the company met its yearly goal of beating the 20% growth of China’s pharma market last year. To help meet that target in the future, Bayer expects to introduce 20 new products over the next five years. The average of four new drugs per year is slightly better than 2009, when it completed three launches.

Bayer wants to retain its status as one of the top three pharmaceutical companies in China. It says the best opportunities are for companies with products that address otherwise unmet needs. Bayer is on record as saying that the diabetes and cardiovascular markets, which are not strong growth markets in the West, remain very attractive in China.

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China’s Subtle Shift in a Basic Commodity Import

SeekingAlpha.com — Thu, 29 Apr 2010 07:46:05 +0000

George Fisher submits:

There is a subtle economic shift going on in China that most investors are unaware of. While many investors are focused on Chinese high tech, medical, and financial opportunities, most overlook one basic commodity. This basic commodity is in short supply domestically and over 50% of domestic demand is imported, historically 80% of imports came from one country, and the imported price has tripled in the past 3 years. The China market is seriously transitioning to alternative North American suppliers. For example, shipments from just the province of British Columbia increased 4 fold in the month of Jan ’10 over Jan ’09, and annual shipments have tripled since 2007 to $365 million. The product is: Timber.

China is, and will be for some time, a net importer of timber and logs. Although the government has a stated goal of being self-sufficient by 2015, the current supply deficit, along with organic demand growth of 10% annually, makes achieving the goal extremely difficult. China is developing a timber plantation industry focused on cultivating faster growing trees, but many are in the early stages of maturity. In addition, the easiest method to increase forest carbon sequestration is to reduce domestic timber harvest levels, thereby maintaining the forest cover. These factors will ensure a robust timber import market for the foreseeable future.

As a low cost raw material, logs are used in various manufactured forest products, such as 2 x 4 lumber, plywood, furniture, and the various pulp products. Countries with timber assets seek the value-added jobs that manufacturing forest products bring, and there is a trade-off between exporting the raw logs or the finished 2 x 4s.

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USANA Health Sciences, Inc. Q1 2010 Earnings Call Transcript

SeekingAlpha.com — Thu, 29 Apr 2010 03:33:11 +0000

USANA Health Sciences, Inc. (USNA)

Q1 2010 Earnings Call

April 28, 2010 11:00 AM EST

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Is There a Hong Kong Real Estate Bubble?

SeekingAlpha.com — Wed, 28 Apr 2010 19:03:56 +0000

Sold At The Top submits:

There has been much speculation recently about an ongoing price bubble occurring in the Hong Kong residential property market.

The University of Hong Kong’s Residential Real Estate Series (HKU-REIS) indicated that, in February, the price of residential properties continued to rise increasing 2.13% since January and 29.98% since February 2009.

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Is China Forecasting a Decline in Commodity Prices?

SeekingAlpha.com — Wed, 28 Apr 2010 18:39:08 +0000

The Pragmatic Capitalist submits:

Great note this morning from the always informative David Rosenberg. Mr. Rosenberg notes something that we have highlighted in the past – China as a leading indicator. In this case, Mr. Rosenberg highlights China’s high leading correlation with commodities. Is China forecasting a decline in commodity prices? Rosenberg elaborates:

To very little fanfare, the Chinese stock market — the first index to turn around in late 2008 — has slipped into a bear market. It is down 15 % from the nearby high and 20% from last year’s interim peak. Why this is important is because the Shanghai index leads the CRB commodity spot price index by four months with a 72% correlation (and over an 80% correlation with the oil price). Don’t get us wrong — we are long-term secular commodity bulls; however, we have been agnostic this year from a tactical standpoint — never hurts to take profits after a double!

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United Microelectronics Corp. Q1 2010 Earnings Call Transcript

SeekingAlpha.com — Wed, 28 Apr 2010 17:07:11 +0000

United Microelectronics Corp. (UMC)

Q1 2010 Earnings Call

April 28, 2010 8:00 am ET

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Investment Implications of Chinese Yuan Appreciation

SeekingAlpha.com — Wed, 28 Apr 2010 13:50:52 +0000

Recently, there has been a lot of news and evidence supporting the likelihood of the Chinese authorities allowing the Chinese currency, the yuan or renminbi (CNY), to trade within a wider trading band.

Why?

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