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..There's a little Samuel Pepys in all of us..

Sunday, June 26, 2011

An interesting fact.. that there are more Asian millionaires than European now..
The Asia-Pacific region was home to 3.3 million people in 2010 worth $US 1 million or more.. not taking into account their homes.. that's an an increase of roughly 10 per cent from the year before, according to the 15th annual World Wealth Report by Merrill Lynch's wealth management division and consultancy Capgemini.
And yet, while there are those at the top who can boast Western worth.. there are serious questions being asked about their business practices.. The travails of Xianburg and Sino-Forest, whose stock has collapsed by 84 per cent following allegations it inflated revenue and assets, are far from unique. A review of the approximately 60 Chinese companies listed on both the Toronto Stock Exchange and the more speculative Venture Exchange has found the sector abounds in extreme levels of risk for investors – with frequent, lengthy trading halts, numerous auditor changes, illiquid stocks, and even the odd zombie company.
This might be something that turns into a worldwide reassessment of Chinese companies..
Timber company Cathay Forest Products Corp.. CFZ-X.. has been halted since the first of February.. the company didn’t provide notice or seek exchange approval for four non-arm’s length deals and failed to adequately disclose these transactions, according to a statement issued by the company about the halt.. Cathay has also been unable to file its 2010 financial statements, is unable to estimate when the filings will be issued, and is facing a shareholder class-action lawsuit.
To continue.. Kaiyue International..YU.P.. shares have been halted at the company’s request since early December.. That company is proposing to buy another company that, through two subsidiaries, owns a Chinese firm that processes prepaid mobile phone accounts.. CFO Joseph Chan said the trading is halted pending an exchange review of the acquisition. Meanwhile, shareholders are in limbo..
It poses the question.. how long will it take for the Chinese to learn Western business practices, and adapt their millennia of machination to that of the International standard..
Yet, having said all that, Chinese President Wen Jaibao's in Britain.. set to meet with David Cameron tomorrow to hold their annual meeting on bi-lateral trade agreements.. Wen will also take the time to visit the MG plant in Longbridge.. MG now owned by China's Shanghai Automotive Industry Corporation...
China, for all it's failures in European investment, still has a strong interest in broadening it's scope on the Eurozone, and the West in general..
There is real money in China's coffers.. and in itself is a vast and as yet barely touched market.. It is the second largest economy in the world at the moment.. and in spite of some speculators doubting the viability of a 'good offer' from a Chinese House.. each must be taken on their merit.. their well researched merit..
Wen's initial remarks concerned the Euro.. and the predicament the Eurozone now finds itself in.. His were words of encourgement.. saing China had increased its holdings of Euro Bonds in recent years and was confident the Eurozone could overcome its problems..
Mind you, if it doesn't sort out this mess, one wonders how long it will take China to dump those bonds on the market..
An update on the talks Wen had with David this afternoon.. China's anxious to increase trade relations with Britain.. increased investment such as that in Longbridge, at the MG plant.. Up to £1billion worth of business deals are expected to be announced during Mr Wen's three-day UK tour.. a mere drop in the bucket tell the truth, but an encouraging start..

It's always good to have what one has written proven by the media..
We have been saying for months that the Libyan rebels, while not receiving any more than token support as far as 'advisers'.. have been supplied with arms and materiel by Britain and France for months.
Today's Times will 'break' the story that these illicit arms have been shipped through Qatar, with the full knowledge of the authorities..

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