Jpmorgan Chinese Investm... Share Discussion Threads

[hectorp] 12/12/2007 11:18

Hopefully thats for the good Igoe.
- Down 2.75 today on a 300 point fall on Wall Street. This will take up to 3 trading days to resolve, but the 0.25% cut, suggested that the US economy will not be in too bad shape in 2008.
We China investors, only require the US to not go into steep recession. This looks ok to me, so far.

[hectorp] 11/12/2007 14:04

I didnt mention inflation though.. oh well.
I dont expect US consumers are bothered yet by inflation. They have anough to worry about.

[idioterna] 11/12/2007 12:19

Hectorp - What are you on about? Chinese inflation is basically imported from the US as long as the Chinese central bank buys US treasurys.. US investors can place their money in China through vehicles like JMC but they're not getting away from inflation... nope, there's a longer and winding road to go if you want to escape inflation..

[douggy b] 11/12/2007 11:27

How would US investors invest in the USD it's their own currency?!
Or do you mean they are selling YEN, EUR etc?

[hectorp] 11/12/2007 08:31

Dec. 11 (Bloomberg) -- China's inflation accelerated at the quickest pace in 11 years and the trade surplus swelled, adding pressure on the central bank to raise interest rates and let the currency appreciate faster to cool the economy

- which they will do ...
This will suck in more US investors getting out of the USD.

[igoe104] 10/12/2007 19:04

annoucement soon mr H.

[igoe104] 10/12/2007 18:54

WORTH A READ.

Telecom China Mobile, computer maker Lenovo Group and energy concern Cnooc -- three of the biggest and best-known "red chips," or nonmainland-registered companies -- are all gearing up for follow-on listings in Shanghai. Then there is a long line of mainland-incorporated companies eager to tap Chinese investors' thirst for share ...

[hectorp] 10/12/2007 18:16

Oh so the new investment law doesnt have a starting date.. not quite so fun!

[igoe104] 10/12/2007 16:04

Hi guys im just come back from cuba, nice to see this recover.
This should help this fund.
Sorry guys looks like someone above has already posted.


BEIJING (AFP) - China has confirmed it will triple the amount of money foreign financial institutions can collectively place in the local stock market to 30 billion dollars, state media and the government said Monday.

The expanded quota, posted on the website of the State Administration of Foreign Exchange, came at the start of a week of high-level economic meetings between China and the United States.

The announcement was confirmation of a pledge made during the last round of talks -- called the Strategic Economic Dialogue -- in May this year.

Three Stategic Economic Dialogues have been held so far, and each time the Americans have placed the value of the Chinese currency on the top of the agenda.

The United States has criticised China for keeping its currency, the yuan, artificially low, giving its exporters an unfair advantage and adding to a yawning trade surplus.

By allowing more foreign investment in Chinese yuan-denominated stocks, demand for the Chinese unit will rise, adding upward pressure on the exchange rate.

It was unclear when exactly the new rule would be implemented, the Shanghai Daily reported Monday.

Since early this decade, foreign banks and other institutions have been allowed to invest in Chinese stocks denominated in the local currency, under a programme for "qualified foreign institutional investors".

So far, a total of 49 qualified foreign institutional investors have entered the Chinese stock market, holding assets worth 200 billion yuan (27 billion dollars), the foreign exchange administration said in its statement.

[hectorp] 10/12/2007 10:36

nerja that is really excellent news indeed!!

[nerja] 10/12/2007 09:17

China raises foreign investment quotas
By Sundeep Tucker in Hong Kong, Geoff Dyer in Shanghai and Richard McGregor in Beijing

Published: December 9 2007 22:06 | Last updated: December 9 2007 22:06

China is to treble the amount of money that foreigners can invest in the mainland capital market, making the long-awaited announcement on the eve of this week's high-level economic summit between Chinese and US policymakers.

The State Administration of Foreign Exchange, the country's foreign exchange regulator, said on its website on Sunday that the quota for registered foreign investors would be increased from $10bn to $30bn. It could take several months before institutional investors secure fresh quotas.

The announcement will be welcomed by foreign investors, who have been lobbying for greater access to the mainland's booming stock market, and comes amid signs Beijing is poised to permit further foreign investment in the domestic securities industry.

The Financial Times reported last week that Credit Suisse and Morgan Stanley had each signed agreements with Chinese partners to establish mainland investment banking ventures – the first such moves since a moratorium on further foreign involvement in the sector was introduced two years ago to protect local firms.

Citigroup, Merrill Lynch and JPMorgan are among the other US investment banks discussing potential partnerships with mainland securities firms, though foreign bankers believe new ventures will be not allowed to operate in some lucrative business areas.

Beijing is expected to point to the twin developments to placate the US delegation, led by Hank Paulson, US Treasury secretary, which has been lobbying China on a number of fronts since the so-called Strategic Economic Dialogue began last year.

Beijing agreed in principle to expand the quota for the Qualified Foreign Institutional Investors scheme at a previous round of bilateral talks in May, though it held back implementation because of a surge of capital trying to enter the country.

The flagship index on the Shanghai market has fallen by about 15 per cent in the past month, though it has still doubled this year.

In an indication of how lucrative the Chinese capital market has been to the 49 institutions which have secured QFII licences, the regulator said on Sunday that the value of their securities had risen to Rmb200bn ($26.5bn) from the initial investment quota of $10bn.

News of the revised quota was welcomed by Chris Ruffle, co-chairman of MC China, a subsidiary of Martin Currie, a UK-based fund manager and largest foreign investor in A-shares.

Mr Paulson is still expected to come under pressure from US investment banks to ensure that new securities ventures will be allowed to trade mainland stocks.

Beijing is expected to permit Credit Suisse and Morgan Stanley to each acquire a 33 per cent stake in their ventures – the maximum allowed under the law. However, western bankers familiar with the thinking of Chinese authorities believe that the new securities ventures will only be granted licences to underwrite initial public offerings and not to trade domestic stocks.



Just what the doctor ordered!!!!!

[nerja] 09/12/2007 14:03

Hectorp, the moves that china have/are making to me means they are protecting themselves all the more for the future, to my mind within the next 20 to 30 years they will have overtaken the USA in GDP, IMO.

[hectorp] 09/12/2007 12:59

nerja, unlike the US, that is a nice quandary to have, raising Bank deposite reserve requirements.

[hectorp] 08/12/2007 12:26

Good to see that purchase. Clearly they can vary the sum they buy back each time and that is a decent batch.

[nerja] 08/12/2007 10:35

JP Morgan Chin It Treasury Stock




RNS Number:5020J
JPMorgan Chinese Inv Tst PLC
07 December 2007



LONDON STOCK EXCHANGE ANNOUNCEMENT


JPMORGAN CHINESE INVESTMENT TRUST PLC



TREASURY STOCK



JPMorgan Chinese Investment Trust plc has today purchased into treasury 500,000
ordinary shares at 131.40 pence per share.

Following the transaction the remaining shares in issue less the total number of
treasury shares is 70,683,001. The Company will only re-issue shares held in
treasury at a premium to net asset value.



7th December 2007


This is a big one for them in numbers terms & shows they think they are undervalued.

[nerja] 08/12/2007 10:33

BEIJING (XFN-ASIA) - China's central bank said it is raising the reserve requirement on bank deposits by one percentage point in a bid to curb credit growth.

The increase, the 10th this year, puts the reserve ratio, or the proportion of deposits that must be held in reserve, at 14.5 pct for most banks, effective December 25.

The People's Bank of China said in a brief statement on its website that the increase is in line with a decision reached at the recent economic work conference, a key gathering to map economic strategy, calling for tighter monetary policy.

The latest move is considerably more aggressive than past reserve requirement hikes. The previous increase, which went into effect on November 26, was 0.5 percentage point.

The central bank, which has also raised interest rates five times this year, has become increasingly concerned that lending growth is too fast and that in turn is fueling inflation.

Goldman Sachs said it expects China's consumer price index (CPI) inflation for November to reach a decade-high 6.7 pct year-on-year. China's CPI growth has topped six pct over the past three months, reaching highs of 6.5 pct in both August and October.

The banking regulator, the China Banking Regulatory Commission, has already told banks to hold down new lending in the final months of the year, and official sources said it is expected to reduce the target for lending growth for next year by two percentage points to 13 pct.

[e-mail] - xfnwk

[rogerbridge] 07/12/2007 18:27

Nice discount to NAV, tempted to buy more next week. Unusual, Pacific Horizon Investment Trust to trade at a discount. Usually at a premium. 38% in China & HK.
Bought a few this week.

[hectorp] 06/12/2007 22:50

Strong world focus is now on UK and US rate falls, which in both countries will carry on for some time. More so the US.
Funds should pour into China and similar assets. The currency play aspect of JMC will loom larger still .
I've added more shares even today.

[hectorp] 06/12/2007 14:17

Macquarie Research analysts wrote in a report that their positive view on "the China macro-environment remains unchanged despite the global concerns of the past month. Simply put, we see domestic reflation offsetting any slowdown in the export sector

[hectorp] 05/12/2007 22:34

It may WELL be that US and UK cut rates fairly hevily to prevent inflation and hopefully assist the credit situation for several months, so the revalues are in the Yuan side's favour which I think we all expect.
If we can have more than one reason to invest in China via our JMC then all the better for the security of our investments.

[nerja] 05/12/2007 13:29

Hi Hectorp, UK rates, do you expect a cut? If you look at the chart for sterling against the yuan the 15 level is support, also its had been having higher highs since January 06, a GOOD BREAK below 15 for me will signal a change of direction, but 15 is the key IMO.

[hectorp] 05/12/2007 13:19

do you mean UK rates or China Yuan rates?
Its sterling rate? I expected a cut here. Good for China investments if so.

[nerja] 05/12/2007 13:18

Interest rate tomorrow, if they do the unexpected and cut it will affect sterling. The pound is just above 15 yuan from its high of 15.6, a drop below this level could well be the turning point for a more prolong drop.

[nerja] 05/12/2007 11:36

Share hardly moved today yet the china & hong markets up, would expect the nav to go up 3 to 4p tomorrow.