Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: GST who wrote (65150)	7/3/2006 9:28:36 PM
From: gregor_us	Respond to of 110194

China Makes a Margin Call New Rules to Allow Brokerage Borrowing To Stir More Investing Associated Press July 4, 2006 SHANGHAI -- China announced new rules allowing investors to borrow from brokerages to buy and sell shares, driving the country's stock markets to a two-year high. The rules, announced over the weekend, will take effect Aug. 1. They are aimed at luring more of the country's $4 trillion in bank deposits into the markets as major share offerings debut, including a 20 billion yuan ($2.5 billion) initial public offering by Bank of China Ltd., the country's biggest IPO ever. The news lifted the benchmark Shanghai Composite Index 1.5% to 1697.28, its highest close since April 13, 2004. The Shenzhen Composite Index rose 1.6% to 440.13. Bank of China begins trading tomorrow on the Shanghai Stock Exchange. Other major companies, including Shanghai Automotive Industry Corp. and Industrial and Commercial Bank of China, the country's biggest lender, are expected to follow within months. After its listing, Bank of China will be the Shanghai exchange's biggest listed company, accounting for more than 15% of its capitalization of about 3.13 trillion yuan, according to state media reports. The state-owned commercial bank raised $11.2 billion in May in a share listing in Hong Kong, the world's fourth-biggest IPO to date. China resumed IPOs last month after a yearlong moratorium for a shareholding-overhaul program aimed at converting government-held, nontradable stock into publicly tradable shares. But the shareholding change cleared up only one of the many uncertainties dogging mainland China's markets, which until the recent rally had languished due to the dubious management of many listed companies, as well as price manipulation, insider trading and other abuses. Regulators hope that an influx of showcase companies like Bank of China, along with other measures aimed at improving corporate management and cleaning up the brokerage industry, will help. "The structure and regulations of the market still need to be improved," said Cheng Weiqing, a senior analyst at Citic Securities Co. in Beijing. For now, most foreign investors are barred from buying yuan-denominated shares. But that is changing as the government slowly lifts restrictions on share purchases by foreign companies and qualified foreign institutional investors. The trial regulations announced over the weekend limit margin financing to brokerages that have operated for more than three years, with net assets averaging 1.2 billion yuan over the previous six months. Copyright © 2006 Associated Press

To: GST who wrote (65150)	7/5/2006 11:18:23 PM
From: Dr. Voodoo	Read Replies (1) \| Respond to of 110194

GST, You really believe that in two years, the two mile visibility will clear up? Over the last 10 years it has gotten only worse, not waxed and waned. Shanghai is rapidly approaching that of Beijing, and continues to expand, pushing manufacturing out to the burbs. With the addition of so many cars, I find it difficult to imagine the air clearing anytime soon. Air clearing has been the case in LA, but it was more like 10 years than 2, and a peek over Mullholland drive still leaves much to be desired. Interestingly, a recent visit to San Diego suggests their may be some truth to your building boom pollution ideas, as one can no longer see the white mountain caps on a good day at Lego-land. Nonetheless, people here talk about the efficiency of living in such cities of 22 million with fine mass transit blah blah blah... The extent at which we are burning through our resources to make our fine bits of colorful plasticrap shrink wrapped electronic eardrum piercing eye-poking cancer creating pharmaceutical making gobbledy gook suggests that soon it won't really matter. Start growing your own food. Hoard the shiny things, like bullets. You'll need the lead to fill the holes in your teeth. <grin> ;-) V