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Strategies & Market Trends : China Warehouse- More Than Crockery -- Ignore unavailable to you. Want to Upgrade?

To: hui zhou who wrote (6316)	8/25/2006 11:55:26 AM
From: RealMuLan	Read Replies (1) \| Respond to of 6370

I covered ok, just should have shorted again on Wed. pre market when it was bidded up to 30.5 or so (I covered at 29.4). China now is making some new regulation for those who set up an entity in BVI or Cayman Island, and then acquire most of the interest of a domestic company, and then transform themselves into a "foreign" company in order to enjoy the preferential tax treatment for them.Almost ALL US-listed Chinese companies have been doing this. The new regulation will have a lot of restriction. That Solar company - G TianWei -- which plans to list in NASDAQ early next year is worried about they cannot do this any more, so they are accelerates their schedule. Yesterday I read that the regulation is basically done to merge the dif. tax rates for domestic and foreign owned companies. The rate will be bet. 24-27% (almost double for what JV/Foreign companies in China paid now), will have 3-5 years phasing in period. Hopefully, by then most of foreign companies that only go to China to set up sweatshops will turn away from China.