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GUANGZHOU, China — For the first time, Chinese will buy more cars this year than Americans. Demand is so high that drivers put their names on long waiting lists for the most popular models.
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A Land Where Car Sales Leap, but Gasoline Sales Stay Flat (December 10, 2009)
“I’m disappointed, but what can I do?” asked Zhang Ge Lu, a 28-year-old interior designer. He came recently with two friends to a row of dealerships here in southeastern China to buy a black Toyota RAV4, only to be told that he would have to wait two months for delivery.
And it is not just cars. For more and more consumer goods, China is surpassing the United States as the world’s biggest market — from cars to refrigerators to washing machines, even desktop computers.
The Chinese market is “on full tilt — booming is an understatement these days,” said John Bonnell, the director of Asia vehicle forecasting at J.D. Power & Associates.
China is pulling ahead at this particular moment partly because Americans, debt-laden and worried about their jobs, are pulling back. After decades of gorging on consumption, Americans are saving. And the Chinese, whom economists thought were addicted to saving, are spending more.
Among China’s 1.3 billion people, rising incomes are finally making large numbers of Chinese prosperous enough to make big-ticket purchases.
The question is: will they keep spending? The Beijing government is increasing consumption with rebates, subsidies and heavy bank lending. Whether China can turn the spending spree into the seeds of a true consumer society matters not just to China, but to the world.
For years, the West has pushed China to increase domestic consumption and reduce its dependence on exports — that’s because its overdependence on exports has distorted global trade.
To keep its export machine humming, China kept its currency undervalued to make its goods more competitive in foreign markets. The county beggared its own citizens, keeping salaries and bank deposit interest rates artificially low to support exporters.
China’s trade surpluses and extensive intervention in currency markets have led it to amass $2.27 trillion in reserves, mainly in United States Treasuries, mortgage-backed securities and other dollar-denominated investments, helping to keep interest rates low and finance Americans’ borrowing. Chinese parsimony enabled American profligacy.
If the Chinese buy more and Americans save more, a more stable global economic exchange can take shape. In the meantime, China’s rapid consumption growth is good news for the whole world. For the first time, China, not the United States, is a locomotive helping to pull the global economy out of a slump. But China’s tiny appetite for American exports means that the main benefit has gone to commodity exporters and to businesses in China.
Automakers are on track to sell 12.8 million cars and light trucks in China this year, virtually all of them made in China (although many are foreign brands), compared with 10.3 million in the United States. Appliance manufacturers expect to sell 185 million refrigerators, washing machines and other pieces of kitchen and laundry equipment in China this year, compared with 137 million in the American market.
In desktop computers, China moved solidly ahead of the United States in the third quarter, buying 7.2 million compared with 6.6 million in the United States.
Retail sales are growing 17 percent a year in China after adjusting for inflation, almost twice as fast as the overall economy.
Americans have been cutting back on purchases of everything from shoes to furniture to jewelry. But Chinese households are crossing a series of income thresholds at which cars and other big-ticket purchases become affordable.
At the same time, Chinese banks are stepping up consumer lending. The proportion of car sales financed with loans has doubled this year, to nearly 25 percent, although most Chinese still head for dealerships with bricks of 100-renminbi notes, each note worth about $14.62. Credit card spending rose 40 percent in the first nine months of the year compared with the same period last year, yet China still has just one credit card for every eight people, compared to two credit cards for each American man, woman and child.
While it is spreading creature comforts, China’s lending-based prosperity may also be sowing the seeds of future economic problems. China’s Banking Regulatory Commission recently told banks to show restraint in lending for the rest of the year, fearful that some of this year’s loans could become bad debts in the next several years, as happened with the mortgage lending spree in the United States.
The regulator threatened to block banks’ overseas investments and branch openings unless they can demonstrate adequate capital to cover risks.
Amazingly we still have Estimated Market Cap
$17,774,964 as of Dec 4, 2009
Great news finaly!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Why do you need guys talk about it every day, nothing to do? Just wait and everything will smooth out.
GLCC is targeting a merger candidate in China. The newly targeted company has a great potential for GLCC's infrastructure and distribution expansion. This company operates substantial agricultural assets in rural China and produces various commodities for Chinese growing market. GLCC management foresees the merger as a great opportunity to raise value of GLCC's distribution and boost GLCC's production sector. GLCC operating subsidiaries Haorizi and Miluga already operate a well-developed distribution network, and the company would benefit greatly from a merger with this agricultural giant.
Still here and not selling!!!
What I really don't understand is 118,5 million o/s. Where this number came from. And I assume that 116,000 float what is left after reverse split hold long shareholders? Any guess would be appreciated. I just can't figure this out.
Also, after r/s we had approximately 120,000, but on Q3 2009 it states we had 118,5 -the same amount o/s as we do now. Very vague statement, at least to me.
I'm still here and waiting!!!!!!!!!!!!!!!!!!!!!!!!!!!!
keep my fingers crossed, if it go to .0001 I would buy 100,000,000 shares
Some people say even now is good to hold HTDS- gonna be a huge spike in close time. Anyway, never regret that you've done. Your picks are impressive. What do you think about OPGX?
Do you have any other positions beside BZCN
If no news till December I'll sell my position in that month
I've been watching this stock for a while now, I've not bought this stock but I can see it going down to 0.0004 again. Sorry, I'm not a basher just want to see if I'm right or not. All penny stocks acting the same way. You know that I mean. GLTA
The spike gonna be huge, look at the accumulation-distribution
http://research.scottrade.com/public/stocks/charts/charts.asp?symbol=WLSI
The most important thing is O/S!!! Seems to me nobody know about it.
I was thinking to buy it, but now I'm hesitating. Would rather wait and see.
"Then I look at the history of who is in control.Look what all the others he is connected with have done.I hope it goes up to a penny for everyone but I do not see it with the 5 billion A/S.Dilution continues in my opinion!" Would you mind to give a link with 5 billion A/S. Thanks
I'll try, may be I get either!!!
Anyone bought here at 0.0001?
good search, thanks
thanks, probably the next step is R/S!!!
where did you see A/S 10 billion, would appreciate if you link a source of it.
going up, show time!!!
If it has left the building GLCC must return 2,771,731,467 to the treasury. We will be good with Miluga sub. GLTA
just watch
It's so quiet all these days. Any PR would be nice to get.
It will in 1 month
Because the company works with MM's and one enemy in pinksheets is longshareholders. They want dilute and get you lost with losses, the same is MM's. For them we are just cash cows. Need to adjust to their game and you'll be fine. Flip-flop the answer.
who are they?
Garr Winters was there
actually Marine I bought it at 0.0001, still green!!!
Thanks man, I just tried to translate, didn't work out. If you may send me a link with translation please. I see all these websites has updated. Something is brewing, but may be its not for us long shareholders. Still hopping to get something, since May 2008
I like this part-" The company is pleased to advise that an alternative solution has been found for its 15c211 or becoming a solicited issuer aspirations. A suitable solicited public company merger candidate has been located, which will dispense the need for an audit or a 15c211 for MONA".
since May 2008, still waiting to get more than I invested. GLTU
I'm not quite understand, would it be heipfull to us?
just waiting and waiting, I'm stuborn and patient. don't feel sorry, its my choice and my money. Although, I've made some money on GLCC and have positive prediction about 1000% run in 1-2 weeks, so guys jump in while you waiting here.
hey Cap, I'm holding like you, since inception of GLCC and worried about removed long sherholders divies from its web, do you think we should hold or just flip like everyone, just tired to be long and not to get anything.
u were talking about 0.0009 never happend, so, don't talk much if u are not busher. GLTU