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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: BillyG who wrote (26484)	12/10/1997 6:57:00 PM
From: John Rieman	Respond to of 50808

ADALL(Idall) is the VCD leader in China. The player OEMs are headed for overcapacity. Boom and Bust cycles in China.......................... chinadaily.net VCD market to be sated THE sensational auction bid for next year's China Central TV (CCTV) prime-time commercial slot just concluded with ADALL Co, China's leading manufacturer of Video Compact Disc (VCD) players, becoming the "King bidder." Bidders are sure to gain huge economic benefits as their products become increasingly popular among Chinese families through TV advertising. Undoubtedly, the top winners will enhance the market law of survival of the fittest, guiding Chinese enterprises to fall in line with the demands of a market economy. ADALL's victory this year is likely to have a more positive effect than last year when the Qinchi Distillery Company finished first in the bidding. After all, a VCD manufacturer will outdo a liquor producer in guiding Chinese enterprises to launch more technology-added products. However, it might also have negative effects by fuelling the already irrationally mushrooming VCD industry. Currently, China has a total of more than 600 plants that produce VCD players and even more are expected to be launched in the near future as a result of the bidding. But the future for the whole VCD manufacturing sector might not be so promising.The great production capacity of 600 plants in the sector will soon satiate the demand. Many of China's other sectors suffer the same problem: duplicated establishment of factories that all produce the same products with low technology equipment and short life cycles. (Yu Guoqiang)