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Will HRCT/China Telecom/StreamingAsia & ETNS Be Part of This?
Tuesday, 29 May 2001
China's ICT sector girds for Olympics
BEIJING, China - China's telecommunications and information technology industry, already the nation's fastest growing sector, is expected to grow by 20% per year over the next five years, spurred on by Beijing's determination to host the most technologically advanced Olympic Games ever if it is selected as the site for the 2008 games.
Massive investment in and expansion of telecommunications, bradband, smartcard technology, video conferencing and other on-demand services, GPS technology and internet will make Beijing China's most wired city and its digital gateway to the world.
Internet access is already growing faster in China than anywhere else on Earth, and that growth rate will only accelerate. By mid-year 2000, China's 518 Internet service providers already served more than 16.9 million subscribers. Internet users in Beijing along grew by 60% just in the first six months of 2000 to 3.08 million.
China now has the second largest fixed line telephone network in the world. The Beijing network alone contains more than one million kilometers of optical fiber serving 5.76 million local telephone subscribers.
With an annual growth rate of an astounding 73% China's mobile phone market is potentially the largest in the world and Beijing is leading the way. Mobile phone coverage is already 98% in central Beijing and more than 90% in suburban areas. The number of mobile phone subscribers in Beijing is expected to grow from 3.3 million in 2000 to 10 million by 2008, when an estimated 69% of Beijing's population will have mobile phones.
Beijing's Olympic bid is providing a major impetus to the growth of IT and telecommunications in China. As part of its bid, by 2007 Beijing is committed to:
Expanding its fiber optic networks to cover all Olympic sites, providing a secure roadband network to deliver the Games to the world.
Introducing a mobile communication network capable of handling 500,000 calls in the Olympic site area.
Establishing a digital cable TV network capable of HDTV transmission for all Olympic venues.
Installation of GPS technology to cover all Olympic transport routes to be used both for the Olympics and public transport.
"Across the board in infrastructure, technology, facilities and environmental protection, we are sparing no effort to ensure that if selected as the site for the 2008 Games, Beijing will host the most successful, most technologically advanced and greenest Games ever," said Mr. Liu Jingmin, Vice Mayor of Beijing and Executive Vice President the development of Beijing's telecommunications infrastructure and narrowing the digital divide as more and more of Beijing's people gain access to the internet and other key technologies of the new economy."
Hey Chris, I am here! Nice board. Thanks for the information.
G-O S-R-U-N !!!
China Telecom Under Pressure
Monday, May 14, 2001
Railway tries new line to challenge monopoly
MARK O'NEILL
China's newest telecommunications firm will start operations on June 1, aiming to break the monopoly of China Telecom and lure a quarter of its fixed-line customers within two years.
That was the ambitious target announced last week by China Railway Telecom (CRT), the company created late last year by hiving off the telecommunications part of the Ministry of Railways.
"The aim is to build up our capacity to 17 million lines by the end of next year, take over 25 per cent of China Telecom's fixed-line customers and become the backbone that ends its monopoly," the company said. "Then we will decide to list on the stock market on our own or merge with China Unicom."
These are brave words, especially as China Telecom is having to postpone or scale down its overseas listing because of a loss of enthusiasm for telecom companies.
Few believe CRT can capture 25 per cent of the market in so short a time. But it has strong cards in its battle with China Telecom. One is the government's desire to promote competition in the market, already significant in data services and mobile phones but negligible in the fixed-line sector.
Another card is China's second-biggest telecom network after China Telecom, with 120,000 kilometres of cables, one-third of them optic fibre, along the rail network, which reaches into all parts of the country except Tibet.
It plans to invest 7.2 billion yuan (about HK$6.74 billion) this year to expand its network to all provincial and regional capitals, except Lhasa, as well as Liuzhou, Guilin, Baotou, Qiqihar and Luoyang, with between 10,000 and 100,000 lines in each city. By October, it aims to reach 150 cities and by the end of next year to cover nearly all of China, except Tibet.
It has chosen three companies as its strategic partners and entrusted each with building about 700,000 lines - Zhongxing Telecom, Hua Wei and Beijing Bell, a joint venture between the Railway Ministry and the Bell company of the United States.
Of these, the most important partner is Zhongxing, one of China's biggest manufacturer of telecom equipment, which is providing technical, accounting and management expertise to a firm with 65,000 employees and 52 years of operating in the "iron rice bowl" security of the state sector.
This large workforce, lack of experience in the market and shortage of capital are CRT's weak points.
Its history as a separate company began only in March 1999, when the State Council ordered a restructuring of the Railway Ministry and the spin-off of its telecoms arm into a separate company. The ministry agreed, but on the condition that it maintain 100 per cent ownership of the telecoms unit.
In July that year, the State Council proposed a merger between CRT and China Unicom, the country's second mobile company, of which the Railway Ministry was founding shareholder and holds a 7.5 per cent stake, arguing that the union of fixed-line and mobile would be a good marriage and help make a strong competitor to China Telecom.
The merger never happened because of opposition from foreign investors preparing to buy Unicom stock who believed CRT contained many bad assets and that its large workforce would overwhelm the 3,000 who work for Unicom. CRT executives also opposed the merger, not wanting to cede control.
After the Unicom listing, the Ministry of Information Industry last July proposed that CRT operate alone for three years and then consider whether to merge with Unicom, an idea Premier Zhu Rongji accepted the next month.
The firm was established formally last December 26, with registered capital of 13.6 billion yuan and Peng Ming as chief executive. The company left the Railway Ministry on February 25 and moved to a new office building in the west of Beijing.
The arrival of CRT is bad news for China Telecom and for foreign investors considering buying China Telecom's stock when it is listed. To gain market share, CRT will have to offer lower prices. It is allowed to cut 10 per cent from China Telecom's charge for city calls and 20 per cent on long-distance calls.
According to a report in the 21st Century Economic News, the State Council is considering more radical solutions to end China Telecom's monopoly.
One is to break it up into three companies one data services, one long-distance telephone and a third urban telephone operator. Another is to split it into four regional firms.
It said Mr Zhu was a strong supporter of CRT as a way to break China Telecom's monopoly and prepare the telecoms market for foreign competition with accession into the World Trade Organisation.
A Question: Could the fact that a conference on Streaming Media is presenting happening in China have anything to do
with today's increase? Maybe SA is getting some good exposure. Nite All!
Mark - I question the need for the regurgitation. eom
Foreign giants to put squeeze on China techs
Monday, April 30, 2001
REUTERS
China's handful of high-technology firms are headed into choppy waters and will see less dramatic profits this year as foreign giants muscle into their markets and customers trim equipment spending.
"The prospects are still good, but not as good as last year. Foreign companies are making more progress in China markets, so there's increased competition," Joe Zhang, UBS Warburg's head of China research, said.
China's tech firms are concentrated largely in the telecoms sector and the tech entities listed on domestic bourses are mostly hardware manufacturers, ranging from computer makers such as industry leader Legend Holdings to handset makers and the bigger telecoms switching gear vendors.
Their skirmishes with foreign competitors have already begun.
Telecoms titans Lucent and Cisco are pushing into China, fleeing a worldwide telecoms spending slowdown as the United States economy sags.
Vastly superior technology and size make them formidable rivals, squeezing prices and domestic makers' margins.
Spending on network expansions in China, while expected to remain flat or dip marginally this year, is still a godsend to these major players which have to cope with a projected 20 per cent pullback globally.
Times are changing
China's major telecoms vendors such as Zhongxing Telecom and Datang Telecom and Tech booked 40 per cent to 60 per cent profit growth last year, riding a wave of spending some industry insiders say may hit US$40 billion this year.
But analysts are not so sure. UBS Warburg's Mr Zhang foresees capital spending dipping 5 per cent in China this year.
China's telecom operators, reluctant to tap sliding global stock markets, would see spending power and available cash drastically reduced, analysts said.
Some expect China Telecom - the country's largest operator - to push back its public offer till next year, while Jitong Network Communications called off a planned global listing late last year, citing stock market weakness.
"Infrastructure remains to be built, but where's the money going to come from?" Mr Zhang said. "Money is not as easy ... Margins are still healthy, but of course not as healthy as last year."
China's gear makers, already slashing prices to keep their slice of the market, run the risk of being left in the lurch.
"You have to be prepared, mentally, to do that ... otherwise there's just no business," said Kathy Yu, marketing director at UT Starcom, which focuses on China's network market.
Low-end gear vendor Nanjing Putian posted a 53.77 million yuan loss last year.
Gear makers, which mainly supply switching hardware, see a bright spot in the much-anticipated rollout of China's first mobile Code Division Multiple Access (CDMA) network this year.
China Unicom is expected to splurge 70 billion yuan on the project over three years, 20 billion of it this year - a boon to suppliers such as Zhongxing, Datang and Huawei Technologies.
But analysts warn the CDMA field is crowded. Domestic handset makers, who analysts say will expand their 9 per cent share of an enormous GSM market, are also eager to get into the new but lucrative market.
Gear makers such as Zhongxing, Eastern Communications and Nanjing Putian were forced to delay plans to produce CDMA equipment and handsets after Beijing suspended plans to launch the new standard early last year. Now they are itching to get back in the game.
Nanjing Panda - a gear maker which also produces handsets for Sweden's Ericsson - posted a mind-boggling 1,609 per cent surge in profit to 178.46 million yuan, albeit from a low base of 10.44 million yuan in 1999.
B-share benefits
Hangzhou-based Eastcom, which makes GSM handsets and base stations with mobile behemoth Motorola, posted one of 2000's best performances. Its net leapt 70 per cent, although analysts said that break-neck pace was largely supported by its long-standing partnership with the world's second-largest mobile phone maker.
Things may change in 2001. Shen Jian, Core-Pacific Yamaichi's tech analyst in Shanghai, sees Eastcom's earnings rising up to 10 per cent this year after surging 69 per cent last year.
Mr Zhang, nonetheless, maintains a "buy" rating on Eastcom, because it has shares on China's B share markets, the world's best performing bourses this year, which average PEs around 50.
"My current recommendation is 'reduce', it's not a sell only because it's a B share," said one analyst at a foreign bank.
Regulators opened the B share markets to local investors in February, producing a surge of liquidity and share prices that many analysts say is not particularly rational. B shares could keep rising even at PEs of "1000 times", one analyst remarked.
In the long term, though, analysts believe, China's local firms will close that gap via internal research investment and ventures with foreign partners.
"Chinese firms, once they grasp the technology involved, will see huge growth," said Core-Pacific's Mr Shen. "But for two to three years, domestic producers have no way of competing with the foreign firms."
SCMP: Informative Read
Rules urged to bring quarter-time scores
Saturday, April 28, 2001
ENOCH YIU
--------------------------------------------------------------------------------
Regulators are considering a change in listing rules that would make it necessary for main board companies to announce results on a quarterly basis, in a bid to improve transparency and corporate governance.
Hong Kong Exchanges and Clearing (HKEx) chief executive Kwong Ki-chi said the move would also bring the main board in line with key international stock markets.
The more than 750 main board companies are now required to report results every six months. Growth Enterprise Market firms already report on a quarterly basis.
HKEx and the Securities and Futures Commission have been under pressure to make the move since the China Securities Regulatory Commission the mainland's securities watchdog two weeks ago announced that all 1,100 listed mainland companies would need to make quarterly financial reports from next year.
Mainland listed companies are now required to disclose results every six months.
Brokers said if Hong Kong did not follow China's move, it would reduce the SAR's competitiveness.
However, Mr Kwong said HKEx and the SFC would study such a move carefully because of the higher corporate operating costs that would result.
He said HKEx would look at what kind of information companies would need to disclose on a quarterly basis.
''We need to study if it should only be the profit and loss account, or [whether] it should include the balance sheet figures or audited report,'' Mr Kwong said.
Mr Kwong and chairman Charles Lee Yeh-kwong yesterday held the first annual general meeting of the merged exchange. Mr Lee said a focus of HKEx in the next 12 months would be to encourage more Chinese companies to list in the SAR.
An HKEx liaison office in Beijing would open in the next few months, he said.
Although China is reforming its stock markets, Mr Lee was not worried that the Shanghai and Shenzhen stock exchanges would become a threat to HKEx.
''The exchanges in Hong Kong and China are performing different roles,'' he said.
The mainland stock markets could only raise yuan for Chinese companies, while HKEx could raise Hong Kong dollars and United States dollars for them.
The exchange this year is expected to see lower income, with first quarter turnover almost 50 per cent lower than a year ago.
The number of listed companies has fallen due to weak market sentiment. According to the HKEx monthly report, released yesterday, 47 candidates have scrapped their listing plans this year after receiving approval from the exchange.
The low turnover will reduce the income from the transaction levy paid by investors on each stock transaction, while fewer new listings will affect income from listing fees paid to HKEx.
Mr Kwong said the exchange would solve the problem by launching more services and products.
HKEx is launching two index funds on Wednesday, and the MSCI China Free Index Futures on May 7.
Mr Kwong said the HKEx would soon introduce centralised back-office services for brokers, which would help them cut costs.
He said the exchange had completed consultation on the issue and had received about 20 responses on how it should launch the services.
HKEx centralised back-office services would allow brokers to outsource functions such as billing, the handling of clients' records and the delivery of share certificates.
Mr Kwong said the new service would allow brokers to cut staff and enhance cost-cutting measures.
SCMP; China Portal Mergers Article
Saturday, April 28, 2001
China portal mergers halted by ego and politics
REUTERS
--------------------------------------------------------------------------------
Too many Chinese portals are chasing too few advertising dollars, but egos, political uncertainties and a lack of foreign buying interest have all but thwarted consolidation in the sector, analysts said on Friday.
"It's been much slower than anyone would have anticipated," said Rajeev Gupta, an Internet analyst at Goldman Sachs.
China's top three portal firms, Sina.com , Sohu.com and Netease.com, all listed on Nasdaq last year with dreams of attracting millions of eyeballs. Now they are all trading near all-time lows and have low cash reserves.
Market watchers said they expected a global player, such as media giants AOL Time Warner , Yahoo, or software giant Microsoft to scoop up one of the portals at a depressed price to stake a claim in China's market.
Chinese personal computer giant Legend Holdings and still cash-rich Internet group chinadotcom have also been rumoured to be looking at Chinese portal firms.
But it appears that few see a bargain in the struggling consumer Websites - none of which expects to break even until at least 2003 - despite the involvement of investment bankers in some cases.
New economy, old censorship
Political concerns may be one of the problems.
"They've got Nasdaq investors and Nasdaq reporting requirements, but they're still Chinese companies operating in a Chinese political atmosphere," said one source in the portal business.
The Government in Beijing censors news and forbids pornography and certain kinds of political and religious material on the Internet, so portals have to be careful.
"These are the only media companies in China that are not owned by the government," the businessman said.
All three portals censor their own chat rooms and the government has grown to trust their managements, which could make a takeover by a foreign media company - and a potential change of management - difficult, he said.
Credit Suisse First Boston Internet analyst Matt Adams said a foreign owner might be viewed differently by the Chinese Government than a collection of passive Nasdaq investors.
"If the majority of shares are held by Fidelity and Mrs. Smith in Alabama, that's a big difference in my mind from Rupert Murdoch or Microsoft," Adams said. Murdoch is chief of media giant News Corp Ltd .
Merging egos
Consolidation among portals is inevitable because China does not have enough advertising spending to support all of them, said Stephen Moss, head of the Asian unit of Internet advertising company DoubleClick Media .
An executive at one of the top portals said it was possible consolidation would come in the form of a merger between two of the three top portals.
"I think that something - either a merger or an acquisition - will have to happen, but it's still about three to six months down the road," the executive said.
But another industry watcher said a merger would be a very bitter pill for the acquired company, which would probably be forced to forfeit its brand and surrender control to the buyer.
"You have founders of these organisations who have big egos," said the portal business source. "They have become the public faces."
A merged giant would also face pressure from shareholders to cut jobs and reduce spending because revenue growth would not be a likely byproduct of the combination, analysts said.
Global players under pressure
Sohu CEO Charles Zhang won't rule out being acquired, but said his firm has "more options" after the sale of Intel Corp's 8.6 per cent stake in the portal to Chinese Software firm Beida Jade Bird. The deal revealed local interest, he said.
Foreign acquisition - as in February when Lycos Asia, a unit of Terra Lycos SA , bought Hong Kong-based Chinese-language portal MyRice.com - might have been slowed by the sharp share price falls of U.S. Web giants this year.
"The likely global players that would be coming in are under pressure themselves," Adams said.
Waiting too long for a "white knight" could render China's top portals vulnerable to the entrance of a cash rich foreign giant, such as AOL or Yahoo.
Goldman's Gupta said that despite their strong brand names in China, the three portals had little to gain by waiting.
"If they continue to be complacent, they'll be obliterated," Gupta said.
Tin-Berry, thanks for giving us something positive to drag into the weekend.
Tin-Berry, just read your message after posting mine. Could this be the major event we need to break the vicious cycle???
Apparently, HRCT knew of the reluctance on the part of the underwriter to go forward with the SA/IPO for several weeks. I
can understand & accept the limited control Dr. Phan had over this. However, why are we not hearing about completion of those
other acquisitions/mergers? If all is on hold because of the
depressed value of HRCT shares and, since we are not likely to
see share value increase significantly until a major event
comes to fruition, we are, in fact, in a CATCH-22 !!!
ONLINE TRADING
CN-Markets launches online PNS trading interface
Apr 27 2001 11:05AM
ChinaWeb
CN-Markets, the operator of one of Hong Kong's most popular financial websites, E-finet.com (www.e-finet.com), today officially announces the launch of its Proprietary Network System (PNS) trading interface that enables traditional brokerage firms to convert to reliable online securities trading. The CN-Markets PNS trading interface is fully compatible with Hong Kong Exchanges and Clearing Limited (HKEX) Order Routing System (ORS) within its latest AMS/3 online trading infrastructure.
The launch of the PNS trading interface is the latest effort by CN-Markets to help brokerage firms take advantage of the business opportunities from online trading that is quickly becoming popular in Hong Kong.
The CN-Markets PNS trading interface has been developed to be comprehensive in functionality, but affordable in cost, thus reducing the initial capital outlays and resource management for small- and medium-sized brokers once needed to offer online trading. As a result, the CN-Markets PNS trading interface not only frees brokerage firms from the hassle of developing an in-house trading system, but also benefits them from having only to pay a relatively small amount per month to obtain the full-line of online trading solutions. The solutions include multi-functional trading capability, including the PNS trading interface, hosting services and a wide range of financial tools consisting of CN-Markets Financial Information Feeds (FIF) and terminal services with streaming quotes and live news and analysis.
CN-Markets Chief Executive Officer, Mr. George Yu, explains, "In offering this high quality and reliable PNS trading interface, our objective is to help small- to medium-sized brokerage firms initiate the dynamic business of online securities trading and also to make it a competitive product in the e-trade market. We are extremely delighted to see more than twenty brokerage firms already showing interest for the CN-Markets PNS trading interface. Sincere Securities is particularly the first amongst a list of our confirmed clients to be already using and putting their faith in our new interface."
The Hong Kong Exchanges and Clearing Limited Senior Vice President of E-Business and Information Services, Mr. Roger Lee, adds,¡§It is our pleasure to have CN-Markets become one of our earliest PNS vendors. We believe that the new trading facilities will contribute to increased efficiency in securities trading, lower trading costs, as well as benefit brokerage firms to expand business both in the domestic and international markets."
Copyright © 2000 ChinaWeb Hong Kong Ltd. All Rights Reserved.
SCMP: Nortel/GSM/China
Thursday, April 26, 2001
Nortel wins China GSM deals
REUTERS
--------------------------------------------------------------------------------
Canada's Nortel Networks said on Thursday it clinched deals worth US$136 million to expand GSM dual-band networks in China, bringing its total contracts signed in the country this year to nearly US$500 million.
Despite signs of a telecoms spending slowdown and increasing competition, Nortel was confident it would perform better than rivals Lucent and Cisco, as well as domestic firms, Nortel's Asia-Pacific president Masood Tariq said.
China Mobile, the largest wireless carrier in China, awarded Nortel new contracts estimated at more than US$105 million for major expansions of GSM (Global System for Mobile Communications) digital cellular networks in the provinces of Hebei, Anhui and Guizhou, Nortel said.
The Hebei contract, estimated at US$83 million, would allow Nortel to implement a seventh GSM network expansion in the northern province, increasing its network subscriber capacity by one million to five million, it said.
Nortel also said it would raise network capacity in the eastern province of Anhui by 140,000 subscribers to 300,000 and boost capacity in the southeastern province of Guizhou by 330,000 to 930,000 subscribers.
More Chinese go mobile
All three expanded networks of China Mobile, which has a listed unit in Hong Kong, were scheduled to enter commercial service by September, Nortel said.
Ningbo Unicom had also given Nortel a contract worth more than US$31 million to expand its existing GSM 900/1800 dual band digital cellular network, Mr Masood said.
Operations were expected to begin by October and would increase Unicom's network capacity in the east coast city of Ningbo by 350,000 subscribers to 910,000, he said.
Earlier this year, Nortel signed a string of GSM expansion deals, including a US$130 million contract with China Mobile and a US$30 million contract with Xinjiang Mobile Communications.
In the past few months, the top supplier of fibre-optic network gear also sealed contracts worth more than US$140 million with China Telecom to provide optical networking equipment.
With China adding about 100,000 mobile subscribers a day and a million Internet users a month, networks face congestion and are starved for more bandwidth, Mr Masood said.
GSM dominates China's wireless sector despite challenges from the rival CDMA (Code Division Multiple Access) technology.
Although some analysts say there will be 10 to 14 million CDMA users in a total 131 million wireless users by the end of this year, its proponents say the technology has more potential than GSM for handling wider bandwidths.
"As you have a lot GSM users ... you will get capacity constraint from a spectrum point of view," Mr Masood said.
"CDMA technology has a lot of advantages on spectrum utilisation, on high density area the ability to go on longer distances. They will both will exist."
Mr Masood also shrugged off worries of challengers, including home-grown firms like Huawei Technologies and Shenzhen-listed Zhongxing Telecom, grabbing a piece of the lucrative telecoms pie.
"Local vendors are doing very well in their areas of access, in the areas of switching and some areas of low speed access," Mr Masood said.
"Nortel Networks spends quite extensively in research and development and I'm not sure some of the local vendors can spend that because it is just a huge investment," he said.
On Wednesday, Nortel shares closed in Toronto at C$23.58, down C$0.41 and C$0.36 lower at C$15.16 in New York.
mmayr you wrote: " I'll submit my ideas right to HRCT to see if they can answer some key questions. I'm also going to provide them with further questions."
" He who asks a question is a fool for the moment; he
who never asks a question is a fool forever!"
Confucius
Thanks for you efforts.
T_F_N - Please see my post here # 1087. eom
Hi goldengate - Understand your concerns, but I am ONLY repeat-
ing information that has already been posted over the last few
days. I do not know if ALL the information is correct, but one
does not need to be a rocket scientist to read between the lines and to formulate what is PROBABLY going on.
EZ - BULLSEYE!!!! We are dealing with young, ambious executives
that have founded their companies and are not willing to surrender control, even if it means not IPOing at this time. In
one word: E-G-O !
Yuanta wanted a company named New Digital Technologies to merge
with SA to do a combined IPO. At least that is the name given the other day on RB. I also believe that they had already received GEM approval, bur Yuanta refused to bring out their IPO
also! Hope that this helps.
Phone Contact With Dr. Phan:
Just got off the phone with Dr. Phan. He offered to talk after I expressed my frustrations to
him via email today. No, I have no " insider information " to divulge. However, I do have a
better appreciation of the current situation and variables at play. Eventhough this does not serve to decrease my frustration it is reassuring to know that the Doc is willing to handle
direct questioning and not looking for sanctuary in China. Although I do not expect him to
" pull any rabbits from a hat, " I believe that he is a very capable strategist with a number
of contingency plans. No, he did not convince me to hold, I had decided that prior to our
conversation tonight. Each shareholder needs to decide for themselves when to buy and
when to sell. I continue to believe HRCT to be a viable company with dedicated officers attempting to bring about a financial coup in the world's largest market. Although HRCT
may crash and burn I am not willing to jump ship and possibly, just possibly, miss the
ride of my life!!! Well, enough said, I guess I have provided our resident bashers with a wealth of material to keep them busy well into the weekend. LOL
GOOD LUCK TO US ALL !!!
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Hold)
NOW, DO IT NOW!!! If there is ANY NEWS, the timing could not be
better for it to be released
NETWORKING SECTOR BULLISH
China Market Trends - April 17th
Apr 17 2001 4:39PM
Reg Handford
Synopsis
April 17, 2001
Beijing
Today was another solid volume day, 1.028 billion shares in Shenzhen and 1.538 billion in Shanghai. All major indices closed up, with the B share indices performing the best. The B's remain the best performing indices on the planet at this time.
Some subindices were down, notably Shenzhen Financials, down 0.83%. The pullback I suggested yesterday was nowhere in evidence. It was a down day in Hong Kong, -2.73%, but this did not affect the mainland.
The 'Xiaxin indicator' was positive. This 'indicator' involves me walking out of the Prime Tower, over to Union Plaza, and seeing how many people are in the observation room of Xiaxin brokerage. It was almost full, and this was at lunch time when the market is halted. When the crowd drops off some day, we will turn negative on this indicator, but today was the fullest I have seen.
Yes, some stocks are breaking down, but for now it is a bull market.
Chart Review
One stock we mentioned on March 27th, Shanghai Vacuum (600602.ss A shares and 900901.ss B shares) has since gone vertical.
¡¡
China Galaxy Securities, China's largest brokerage, announced two days ago that they were establishing a new series of indices for sectors in China. Perhaps that will make it easier to follow different sectors in the China markets.
In this case, 600602 is in the wide area network sector, and is slated to provide many components for Shanghai's aggressive plan to deploy broadband access availability to more than 3 million households in the greater Shanghai metropolitan area.
Another cable network company is 600899.ss, Shanghai listed Zhejiang Xinxian Co. Ltd, which is involved in network construction, network development and network services, has been incredibly hot, illustrating how 'sector' is of vital importance in China:
A move like this is not easy to stop. It was rumor-driven on the Internet, and the takeover rumor was vigorously denied by the company last Friday, but investors didn't mind, and slammed it yet higher. The company has increased its working capital by RMB20 million through collateralized bank loans. There are 54,000,000 shares in the float, a medium amount by Chinese standards, so a sudden influx of buying has had a strong effect.
International Markets
Earnings warnings continue to dominate the American market, the latest being Cisco's. This had a negative effect today on Hong Kong but not on the mainland. Despite the avalanche of bad news the market (Nasdaq and Dow) continues to do better than one would expect.
A trendline up from the April 4th bottom on the Nasdaq can now be drawn. Because of the frailty of early rallies and the nasty economic news, a breaking of this trendline is a clear order for traders or intermediate players to exit the market until a new uptrendline could be established.
Otherwise, the charts are bullish because of their surprising defiance of bad news. Click Defiance.
* * * *
Copyright © 2001 Beijing Homeway Info.Media Ltd. All Rights Reserved.
TELECOMS
License scheme aims to boost broadband access
Apr 17 2001 12:40PM
BEN KWOK
The Office of the Telecommunications Authority (Ofta) will introduce a license scheme for new buildings in an attempt to encourage the development of broadband Internet access.
Developments meeting criteria set by Ofta -- the industry regulator -- will be eligible to be licensed as "intelligent buildings".
To do this they will have to offer open access to telecoms and television service providers.
Property companies' reluctance to grant access to communications providers has hindered the spread of broadband access in Hong Kong.
Widespread access to such cutting-edge services is crucial if the SAR is to meet its ambition of becoming a regional communications and technology hub.
Property companies are often keen to trumpet their developments as "intelligent buildings", -- meaning they have advanced communications infrastructure.
Director-General of Telecommunications Anthony Wong Sik-kei said the Ofta license would provide a standard test of what constituted an intelligent building, in the hope of increasing broadband market penetration.
"The new concept will take the design of the [building's] converged telecoms system into consideration along with the usual water, power and gas set-up," Mr Wong said.
The building's infrastructure should also integrate well with broadband and pay-television access.
Details of the scheme are expected to be released within the next few months.
"Broadband take-up is somewhat slower than we expected," Mr Wong said.
"The difficulty in getting access to buildings is the reason."
Residential projects frequently claim to have built-in telecoms and pay-television access, but fail to provide open access.
Wireless fixed operators, such as City Telecom subsidiary Hong Kong Broadband Network, have complained of being asked for hefty entry fees by property management companies.
Mr Wong stressed that accessibility was a worldwide issue common to almost all major cities and therefore could not be solved in just a few months.
Ofta will launch a publicity campaign urging property management companies to open their buildings.
A special Ofta task force had accompanied various operators in talks with companies managing about 1,000 private and public housing blocks.
Greater home access to broadband services would facilitate the launch of Internet protocol (IP) telephony, Mr Wong said. IP telephony can add video streaming and data transmission to traditional fixed-line voice services.
Mr Wong, chairman of the third ITU World Telecommunication Policy Forum, said IP telephony was an emerging and unstoppable trend in voice communications.
Firms such as US networking giant Cisco Systems already use IP phones internally.
Copyright © 2001 South China Morning Post Publishers Ltd. All Rights Reserved.
Rember=Remember, Sorry!
Rember; Set-Top Boxes?
Asia to be the largest interactive TV market
By Bloomberg, Singapore.CNET.com
Monday, April 16 2001 1:07:43 PM
HONG KONG--Asia will be the largest interactive television market in the world within four years, the South China Morning Post said, citing OpenTV Corp, the largest maker of software for digital televisions.
OpenTV Asia-Pacific Managing Director Jeffrey Brown said growth was limited in Europe, where two-thirds of the 40 million set-top boxes had been sold, as well as in North America, Latin America and Australia.
Brown said Asia has the biggest growth potential because of its large population and burgeoning subscription numbers for pay television.
Interactive television enables users to shop, bank and receive interactive advertising through an attachment to a conventional television.
Copyright 2001, Bloomberg L.P. All Rights Reserved.
Short Take: Online stock trading to mushroom
By Staff, Singapore.CNET.com
Monday, April 16 2001 12:30:16 PM
SINGAPORE--Online deals constitute just 9 percent of the total number of shares traded currently, but the Singapore Exchange expects the figure to mushroom to 40 percent of the market in the next two years. Last year, online trades formed just 3 percent of the volume done.
Online trades enjoy benefits like lower commissions, and 24-hour trade input from across the globe. At present, 19 local stock brokers offer the service, The Business Times reported.
Banker: Don't place unlimited sell orders on IPOs
Saturday, April 14, 2001
By PAULINE S.C. NG
Investors who intend to sell shares of initial public offerings (IPOs) on the first day of the issue's quotation have been advised not to place unlimited sell orders, particularly in a bear market.
It is dangerous for investors to give their remisiers market sell orders without specifying a sell price as an IPO can open at a fifth of its offer price, Commerce International Merchant Bankers Bhd (CIMB) head of corporate finance Tan Choon Thye said yesterday.
Tan Choon Thye
"Think carefully before you put a market sell order in a bear market on opening day,'' said Tan at a press briefing on how IPO opening prices are determined.
He explained that the KLSE's trading system principally took into account market volume of both buy and sell bids, and matched them by "algorithm.''
In a bull market, it was possible for investors who placed a market sell to get the best price, he said, but stressed "investors should do limit orders (specify the price) in a bear market.''
There is a limit--upwards and downwards--of five fifths on the opening prices of IPOs, warrants, and also shares which are requoted after a period of suspension in trading of the shares.
That first day limit means investors who give unlimited market sell orders could be selling at a price way below what they were actually prepared to sell at.
"It is dangerous to give a market sell order because you don't know how low the order will get matched,'' warned Tan, adding that the market sell order could theoretically be matched at a fifth of the IPO price.
And when IPOs open at below their offer price--as has happened in recent IPOs--the heavily driven retail market panics and tries to cut losses by selling, thus depressing prices further, noted CIMB associate director (corporate finance) Raja Teh Maimunah.
"The general perception of investors is that demand should be best on the first day. But that is only an assumption. In a bear market, investors (who give unlimited sell orders) could be open to very high exposure,'' Tan said.
He pointed out that many people did not realise how the opening prices were set.
Bintulu Port Holdings Bhd, which saw an oversubscription in both its public and foreign portions, will be listed on the KLSE main board on Monday.
It offered a public issue of 100 million shares at an issue price of RM2 each. Its IPO exercise was underwritten by eight underwriters led by CIMB.
SA/IPO: Bring It On !!!
Friday, April 13, 2001
Buyers pounce on techs
Dao Heng Bank takeover and Nasdaq bounce power HSI recovery
DAVID WILDER
--------------------------------------------------------------------------------
Hong Kong investors on Thursday went on an Easter egg hunt for stocks as a major local takeover, a United States technology stock bounce and a breakthrough in the US-China spy-plane stand-off boosted sentiment.
The Hang Seng Index moved up 2.22 per cent to 12,989.47 points on a healthy turnover of HK$10.02 billion, bringing gains for the past two sessions to 6.35 per cent.
"It's a real vote of confidence," Dao Heng Securities institutional sales head Raymond Tsui Yick-ki said. "There was a little bit of profit taking in the afternoon but the market was still strong enough to hold its ground before the long weekend."
Technology, media and telecommunications stocks were at the forefront of the buying, with China Mobile leading the pack as it climbed 1.38 per cent to $36.50 while mainland rival China Unicom added 4.73 per cent to close at $9.95.
"Obviously there's still a lot of uncertainty. It's pretty clear that the tide seems to have turned," e2-Capital Securities vice-president of institutional sales Ryan Fong Yen-hwung said.
"Global institutional investors are rerating the [telecommunications] sector and I think we've seen the floor and people are getting back into these names after the sell-off of the past couple of months, especially in China Mobile and China Unicom."
Smaller technology plays were not ignored as investors took advantage of Wednesday's third consecutive rise on the Nasdaq Stock Market and the 8.49 per cent burst of life in the Philadelphia semiconductor index. Semiconductor equipment maker ASM Pacific surged 10.74 per cent to $13.40, while integrated circuit maker QPL jumped 12.06 per cent to $3.25.
"There are signs tech stocks are staging a recovery and, as usual, the first movers are the better managed companies such as ASM and QPL," Phillip Securities research director Louis Wong Wai-kit said.
Noting that the technology sector has been mauled by the Nasdaq fall-out, Mr Fong said the strong performance from the stocks should not have come as a shock for investors.
Away from technology, the talk of the market was in the banking sector as Dao Heng Bank resumed trading after being suspended for four sessions.
It leapt a massive 51.59 per cent to $57 as investors took advantage of the hefty takeover price offered by Singapore's DBS Group.
Dao Heng's parent, Guoco Group, bounded 40.36 per cent to $38.60. The two plays accounted for a hefty 23.36 per cent of turnover and Dao Heng made up 20 per cent of the index's rise.
Speculation was rife as to which company would replace Dao Heng in the Hang Seng Index. Hong Kong Exchanges and Clearing, one of a handful of leading contenders, leapt 5.3 per cent to $13.90.
Investor sentiment was also lifted by the resolution of the diplomatic row between the US and China. As the 24-member crew of the US spy plane made their way to Hawaii, investors sent the red chips 2.8 per cent higher and H shares 1.1 per cent ahead.
This followed news that the mainland's exports rose 14.9 per cent last month over March last year, leading HSBC economist David Seto to conclude "recent market concerns that the yuan will be devalued, due to the sudden fall of the yen, are unwarranted".
The Hong Kong market is closed for the Easter holiday and will reopen on Tuesday.
Email David Wilder at Davidw@scmp.com.
SCMP: Internet Trade Booming
Saturday, April 14, 2001
Internet trade booming
ENOCH YIU
--------------------------------------------------------------------------------
Online trading is continuing to grow in Hong Kong, with almost 44 per cent of last month's turnover from brokers offering Internet trading services.
According to Hong Kong Exchanges and Clearing (HKEx) data, there has been an increasing trend to use brokers with Internet access.
The exchange launched its new AMS/3 stock trading system in October and this enables brokers to offer direct trading for Internet clients.
Brokers who have Internet access with AMS/3 can provide direct trading services.
Investors can place stock trading orders from their personal computers or mobile phones using the Internet.
Brokers without such facilities trade in the traditional way - via telephone calls or visits to brokerages by the clients who ask staff to make the trades for them.
In November, only 32 out of the 500 brokers had the Internet connection with AMS/3.
At that time these brokers represented 13 per cent of total market turnover.
However, with the increasing number of brokers building up AMS/3 Internet access this form of trading has been rapidly increasing its share.
In December, 28 per cent of trade was done through brokers offering Internet access.
It increased to 36 per cent in January, 40 per cent in February and 44 per cent last month. That was when about 80 brokers had Internet access. Meanwhile, others are preparing to join the Internet ranks.
A HKEx official said the increasing turnover by brokers with Internet access might be partly due to the exchange upgrading the Internet trading function of the AMS/3.
But he added that the figures might not fully reflect how many investors were using the Internet to trade.
"This is because the brokerages with Internet access with the AMS/3 may still allow clients to place orders in the traditional way," he said.
United States-based Charles Schwab, the world's largest online broker, said 70 per cent of its Hong Kong clients were using the Internet to trade.
The firm's regional general manager Asia, Christina Hui, said the rising trend was to trade online.
"When Charles Schwab launched online trading for Hong Kong stocks in November only half the clients used the Internet to trade but it has increased to 70 per cent," she said.
"We have seen more and more investors moving to trade online while at the same time they use the telephone to get stock information or other services."
Hang Seng Bank, which has Internet access with the AMS/3, said about 40 per cent of its securities trading was through the Internet. The rest was done via telephone or through bank branches.
MyFunds - An old post of mine:
Subject: Well, It Was Worth A Try!
Date: 3/28/01 11:10 PM Eastern Daylight Time
From: Minddoc7
Message-id: <20010328221017.20499.00001180@ng-fz1.aol.com>
Below is my email to the GEM and the response that I received.
Subj: =?big5?B?wuCxSCA6IEFwcGxpY2F0aW9uIFN0YXR1cw==?
Date: 3/28/01 9:49:40 PM Eastern Standard Time
From: JamieLam@hkex.com.hk (Jamie Lam)
To: Minddoc7@aol.com
> -----Original Message-----
> From: Gary Tam
> Sent: Thursday, March 29, 2001 10:46 AM
> To: Jamie Lam
> Subject: ¦^ÂÐ : Application Status
>
> Our reply:
>
> Thank you for your inquiry dated 26 March 2001.
>
> The Exchange normally does not disclose any information regarding any
> listing applicants to the public. Accordingly, we are not able to provide
> you with the requested information.
>
>
>
> -----ì©l¶l¥ó-----
> ±H¥óªÌ: Jamie Lam
> ¶Ç°e®É¶¡: 2001¦~3¤ë29¤é AM 10:42
> ¦¬¥óªÌ: Gary Tam
> ¥D¦®: Âà±H : Application Status
>
>
>
> -----Original Message-----
> From: Minddoc7@aol.com [SMTP:Minddoc7@aol.com]
> Sent: Monday, March 26, 2001 2:24 AM
> To: Jamie Lam; May Pang
> Subject: Application Status
>
> To Whom It May Concern:
> I understand that StreamingAsia has applied for an IPO on the GEM. I
> would
> like
> to know if this information is correct and, if so, the present status of
> the
> application.
> Any additional information that you can provide would be very much
> appreciated.
> Thank you in advance for your anticipated response.
> Dr.XXXXXXXXXXX
> MINDDOC7@aol.com
pit - thanks for the truism; now that didn't hurt too much or
did it?
Tin-Berry, President Bush has rejected Mr. Jackson's offer.
hot-dog, I believe that you are confusing the 51% that HRCT has
in SinoBull with the 50% it holds in SA. You might want to read
the below press release.
[ Latest Headlines / Market Overview / News Alerts ]
--------------------------------------------------------------------------------
Related Quotes
HRCT.OB
0.49
+0.01
delayed 20 mins - disclaimer
Thursday January 11, 8:04 am Eastern Time
Press Release
SOURCE: The Hartcourt Companies, Inc.
StreamingAsia Webcasts ASPWorld Conference & Expo Hong Kong; ASPWorld Is Premier Industry Event For U.S. And Asian ASP Marketplace
LOS ANGELES, Jan. 11 /PRNewswire/ -- The Hartcourt Companies Inc. (OTC Bulletin Board: HRCT; Frankfurt: HCT), www.hartcourt.com, an investment and development company focused on Internet infrastructure and content delivery, announced today that its Hong Kong-based subsidiary, StreamingAsia (SA), the region's leading webcasting solutions provider, is providing live and archived streaming audio and video via the Internet for the ASPWorld Conference & Expo Hong Kong, whose aim is to provide corporate end-users and decision makers with the latest and greatest tools available worldwide for outsourcing applications and IT services.
StreamingAsia's turn-key solution allows ASPWorld to easily FTP digital content to SA who then webcasts the content via the StreamingAsia Broadcast Network. The event's video clips are hosted and managed by StreamingAsia's Digital Content Manager (DCM) web-based software.
The conference, which is running January 9th to January 11th 2001 in Hong Kong, can be viewed at www.aspworldhk.com.
Through the 3-day event, owned and managed by IDG World Expo, participants can meet thousands of application service providers (ASP) and corporate end-users face to face. For the first time in the Asian arena (a similar IDG event was held in San Jose, California in October, 2000) end-users and ASP providers will gather at a new event showcasing the entire range of outsourcing options.
``ASPWorld was created to assist information technology (IT) decision-makers from small, mid-sized or global enterprises who need to make faster, smarter IT outsourcing decisions for their companies,'' said Focal Ling, General Manager of StreamingAsia. ``As decision-makers struggle to maintain enterprise budgets that keep pace with the demand for network capabilities and retain IT staff, service providers will play an increasing role in providing and maintaining core enterprise functions.''
``StreamingAsia's ability to broadcast the content of this prestigious event to a worldwide audience demonstrates one of the most dynamic aspects of the evolving IT industry.''
About StreamingAsia Limited
StreamingAsia (SA) www.streamingasia.com is the leading Internet Broadcaster providing comprehensive audio and video delivery or streaming solutions to businesses, professionals, organizations, web site owners and content publishers. Powerful network infrastructure enables SA to stream superior-quality multimedia advertising, live event broadcasting and on-demand audio and video content over the Internet to target web-enabled audiences all over the world. StreamingAsia strives to be on the cutting edge of audio, video and computer technologies to ensure that its customers continue to receive the most advanced technology solutions available on the market without prohibitively high up front investment costs.
The Hartcourt Companies, Inc., which owns 50% of StreamingAsia Limited, announced on September 21, 2000 that it has signed an underwriting agreement to bring StreamingAsia public through an Initial Public Offering on the Growth Enterprise Market (GEM) of the Hong Kong stock Exchange.
For information about StreamingAsia or its services, please visit www.streamingasia.com, or call +852 2412 2120.
Detailed information on Hartcourt can be obtained via the company's Web site, www.hartcourt.com.
Forward-looking statements
Certain statements in this news release may constitute ``forward looking'' statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements.
SOURCE: The Hartcourt Companies, Inc.
* NEWS *
http://biz.yahoo.com/prnews/010410/latu075.html
--------------------------------------------------------------------------------
Tuesday April 10, 7:02 am Eastern Time
Press Release
SOURCE: The Hartcourt Companies, Inc.
StreamingAsia Names Former Prudential Asia Executive to Board of Directors;
New Director Brings Proven Experience and Business Contacts To Emerging Company
LOS ANGELES, April 10 /PRNewswire/ -- The Hartcourt Companies, Inc. (OTC: HRCT, Frankfurt: HCT), www.hartcourt.com, today announced that StreamingAsia Holdings Limited, the leading streaming content and web-cast provider in Hong Kong, has appointed Dr. Wallace Ching as an independent, non- executive member to its board of directors. Hartcourt owns a 50% equity interest in StreamingAsia.
Dr. Ching currently serves as the Managing Director of PAMA Group (Hong Kong) Limited, formerly known as Prudential Asset Management Asia Limited, and is in charge of technology-related investment activities. He is responsible for originating, evaluating, structuring and completing private equity and venture capital investment with a technology focus in the Asia Pacific region.
Currently, Dr. Ching is also an assessor of the Small Entrepreneur Research Program (``SERAP'') under the Innovation and Technology commission of the Hong Kong Government.
From 1995 to 1998, Dr. Ching worked for HSBC Private Equity Management Limited as an Associate Director and was responsible for originating, evaluating and executing investment transactions and monitoring investments for regional private equity funds. From 1993 to 1995, Dr. Ching worked for HSBC Asset Management Hong Kong Limited as an Investment Manager. Prior to joining HSBC, he worked for Goldman Sachs & Co. as a fixed income research associate. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865. HSBC Holdings PLC is one of the largest banking and financial services organizations in the world with 6,500 offices in 79 countries and territories.
Dr. Ching holds a Bachelor of Arts degree in engineering science with first class honors from Oxford University, England, and a PhD. in computer and information science degree from the University of Pennsylvania, United States. He is also a Chartered Financial Analyst.
About Hartcourt
The Hartcourt Companies is a holding and development company that is building a network of Internet and telecommunication service companies in The People's Republic of China (China), including Hong Kong, in partnership with Chinese entrepreneurs as well as Chinese government-owned entities. Hartcourt's business goal over the next three years is to benefit from a series of IPOs or spin-offs of its core business holdings and investments in Greater China.
Forward-looking statements
Certain statements in this news release may constitute ``forward looking'' statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Such forward looking statements involve risks, uncertainties and other factors, which may cause the actual results, performance or achievement expressed or implied by such forward looking statements to differ materially from the forward looking statements.
SOURCE: The Hartcourt Companies, Inc.
OT: hansro, I do not believe one needs to apologize for something that they tried to avoid but were forced to do. Read:
Monday, April 9, 2001
US spy plane 'forced to land'
Fighter pilot asked to shoot down aircraft; brawl broke out as PLA officer tried to board
STAFF REPORTER in BEIJING and AGENCIES
--------------------------------------------------------------------------------
Zhao Yu: account incomplete
The US spy plane stranded on Hainan Island was forced to land by a Chinese fighter after requests to shoot it down were rejected by ground control, Chinese sources said yesterday.
Dramatic new details also emerged of how a senior PLA officer wrestled a US airman to the ground as the mainland military boarded the EP-3E Aries II plane following its collision with a Chinese jet eight days ago. Twenty-four American crew are being held as the Chinese navy searches for pilot Wang Wei, who parachuted from his F-8 fighter.
US President George W. Bush would write to Wang's wife as a "humanitarian gesture", Secretary of State Colin Powell said. She had previously written to Mr Bush, accusing him of being "too cowardly" to apologise.
The Chinese military is continuing to take a hard line on the collision, with Defence Minister Chi Haotian yesterday again blaming the US.
The developments came as Chinese sources gave a more detailed account of the collision than that given by Zhao Yu, the second Chinese pilot.
Zhao told state-run TV that he and Wang initially tracked the EP-3 at a distance of about 400 metres in their F-8 fighters. He said the US plane veered abruptly, the propeller on its left wing smashing into Wang's plane and causing it to plunge into the sea.
The sources said Zhao's account was incomplete. After seeing the loss of Wang's plane, Zhao radioed ground control for permission to shoot down the US plane, but this was refused, they said.
"The officials at ground control were cool-headed," one source said. "Zhao could have shot the plane down but that would have meant the death of 24 US airmen. It would have been an act of war, whereas the collision was an accident."
The sources said that after the collision, the spy plane attempted to fly to the northeast, away from China. However, Zhao manoeuvred to prevent this and forced the plane to land at Hainan's Lingshui base, where it was immediately surrounded by Chinese military.
After landing, the US crew refused to let the Chinese enter the plane, demanding that US diplomats be present. Initially, the Chinese made no attempt to force entry. Then a senior officer arrived, walked up the stairs and wrestled a US crew member guarding the entrance. The officer threw the airman to the ground, enabling the PLA to enter.
"The 24 crew members were given their own area in the base, with Chinese military staying at a distance," one source said. "Two of the crew [guarded] the entrance to this area."
The revelations came as China and the US continued intensive negotiations to resolve the diplomatic stand-off.
Yesterday, US Vice-President Dick Cheney reiterated that the US had no plans to apologise to China. "The President [George W. Bush] has made it clear we regret the loss of the Chinese pilot as a result of this accident. The notion that we would apologise for being in international air space, for example, is not something we can accept," Mr Cheney said in a television interview.
Pressed on whether the US had anything to apologise for, he said: "No, I don't believe we do."
The US Secretary of State said the Sino-US relationship "is being damaged" by the dispute and the crew should be released immediately. Mr Powell told Fox News: "We've got to bring this matter to a close as soon as possible . . . [to] get our youngsters back and see if we can minimise the damage to our relationship."
Mr Powell said intense negotiations were continuing despite China's fresh demand that the US apologise for the collision. "We are in intense diplomatic negotiations . . . Things are moving along," Mr Powell said, though not as fast "as I would like".
US Ambassador Joseph Preuher last night said the negotiations had made progress after he again met Chinese officials. He declined to give details.
OT: Pardon the interruption and the arrogance, but I do believe
that America is " the best." History does show that we have made some serious errors in judgement, but who hasn't? IMHO, this be-
havior on the part of the Chinese is simply another chapter in
the long saga of holding America hostage for both political and
financial gain. Not only have other countries detained our living
( POWs ), but even our dead ( MIAs ). They, especially the Chinese, know that we value every individual and that we will go to great lenghts to bring every one home; dead or alive ( this
was a significant part of my Marine Corps basic training ). Yet,
how can we be surprised and outraged by this recent action taken by a country that does not even fully value their own female
infants? I need to stop, I have already said too much.
Article: China + fibre-optics
Friday, April 6, 2001
China bans illegal fibre-optic networks
REUTERS in Beijing
Next story
--------------------------------------------------------------------------------
China has started regulating construction of long distance fibre-optic networks, banning projects without government approval, the official China Daily said on Friday.
The State Development Planning Commission and the Ministry of Information Industry had started to inspect fibre-optic network resources as many companies had invested in the hope of gaining a larger share of the broadband communications market, it said.
Illegal construction had caused overlapping of networks, wasted large sums of money and impeded the government's attempts at regulation, the newspaper said.
Companies that were not licensed to offer basic telecommunications services but were using optical fibre resources must report to the government within 30 days, it said.
The Ministry of Information Industry would issue licences to telecommunications operators for network leasing and sales soon to ensure an orderly competitive environment, China Daily said.
Licence holders would be able to lease and sell network bandwidth and optic fibre networks, and could buy networks set up illegally which were confiscated by the government, it said.
Overseas capital - including funds from Hong Kong, Macau and Taiwan - was banned from direct investment in telecoms network construction and operation before China's entry into the World Trade Organisation, the newspaper said.
China-backed conglomerate Citic Pacific, which is listed in Hong Kong, said on Friday its fibre-optic network project was approved by authorities and would not be affected by Beijing's order putting non-approved projects on hold.
Citic Pacific has no telecoms licence in China but the company was granted special approval to invest in, build and own the nationwide China Express No1 backbone Network in China, managing director Henry Fan said.
Mr Fan said Citic Pacific's fibre-optic network would not be affected by the directive and that its parent, Citic Beijing, had applied for a full telecommunication licence.
Citic Pacific said earlier that it was in talks with a licensed mainland telecommunications operator to lower its interest in China Express No1 to below 49 per cent from 60 per cent.
Mr Fan declined to identity the potential partner. But merchant banking sources said Citic Pacific was in talks with China Satellite Communications Group, a spin-off of China Telecom.
Article: China + WTO + Technology
Friday, April 6, 2001
China WTO entry could give techs an edge
LYDIA ZAJC in Beijing
--------------------------------------------------------------------------------
Mainland and foreign technology firms are hoping China's acceptance into the World Trade Organisation (WTO) will give them an edge when it comes to expanding their horizons both in China and abroad.
Tech executives interviewed at Comdex China 2001 are looking ahead to the time that China will become a member of the trade group. Talks to hammer out details - including ways that China will open up its industries to wider foreign competition - have been slowly progressing and a deal could be signed later this year.
Mainland giant Great Wall Technology, which makes computers, printers, monitors and network equipment, could expand its horizons and improve on its already strong market share, said manager of computer research and development He Xin.
"After China joins WTO, I think it's a good chance for Great Wall to sell our computers to other countries," said Mr He on Friday.
Mr He, speaking at his company's booth at Comdex China 2001 in Beijing, said the company's PCs could make inroads in South Asian markets. The company, which is listed on the Hong Kong stock exchange, sold about one million computers at home last year and many more pieces of other equipment on top of that, he said.
Great Wall, which already works and shares building space with IBM in Shenzhen, does not anticipate too many problems with increased competition from its partner or other foreign companies, Mr He said, amid the blare of music and noise at the electronics show.
Instead, a strong rivalry between firms could mean a drop in price for PC parts. "Maybe, some parts will be cheaper and we can make our computers more cheaply," he said.
Great Wall could also see increased demand for its PCs at home as well as abroad. "Maybe, small companies will die and it's a good chance for Great Wall to have more presence in the market," Mr He said.
Roland Andersson, senior vice-president of worldwide sales at processor-maker National Semiconductor who was visiting Comdex China from California, also said China's WTO membership would be a good thing. National Semiconductor has already partnered with mainland companies such as big computer-maker Legend.
On the other hand, Eric Brewer, founder of network software maker Inktomi from California, is not convinced the WTO-related changes will help his smaller, five-year-old company break into the Chinese market. Inktomi has about 1,000 staff members, and has installed seven in China in the past year.
Mr Brewer said after his keynote speech on Friday that Inktomi was attempting to sell more of its products in China partly because of the slowdown in US economic growth. "China will be less affected by the global economy than Japan or Europe," Mr Brewer said.
However, he believes that China will remain largely self-sufficient when it comes to making and selling electronics, despite the talk of an increased international presence.
WorldNews.com Article
Congress Weighs China Trade Status
The Associated Press, Thu 5 Apr 2001
Email this story to a friend Print this story
WASHINGTON (AP) — Some lawmakers urged caution Thursday over moves in the House to wipe out China's new normal trade status with the United States as a way to punish China for holding the crew of a U.S. spy plane.
``I think that's very premature and I think it could be counterproductive,'' said Sen. Pat Roberts, R-Kan., a Senate Intelligence Committee member who strongly supported last year's law granting China permanent normal trade relations.
House Minority Leader Richard Gephardt, D-Mo., said Thursday, ``I didn't totally agree with the policy on China PNTR, but we made a decision as a country. If we're asking them to live up to their obligations ... we ought to live up to ours.''
A U.S. surveillance plane collided with a Chinese fighter jet Sunday over the South China Sea. The Chinese pilot was lost; the crippled American plane made an emergency landing on a Chinese island. The plane and its 24 crew members are being held by the Chinese government.
Lawmakers rejected either a violent confrontation or a U.S. apology for the incident. Senate Majority Leader Trent Lott dismissed the idea of an apology as ``absolutely ludicrous.''
But China's tourism industry could suffer a hit, at least in terms of congressional travel plans.
Senate Assistant Majority Leader Don Nickles, R-Okla., said he would postpone his planned trip to China with Oklahoma business and government leaders unless the situation was resolved, saying, ``If the crew is not released, we will not go.''
Others in Congress may back out of a separate China trip scheduled to start Saturday. And the trade status is up for grabs.
Rep. Duncan Hunter, R-Calif., who opposed granting China permanent normal trade relations last year, introduced a bill Wednesday to revoke it.
``A favored trading partner with our country would follow proper protocol and not continue to hold our service men and women, along with our equipment, after being asked for their return,'' said Hunter, who wrote the bill with Rep. Tom Tancredo, R-Colo.
Chinese Ambassador Yang Jiechi said trade sanctions would hurt both countries, telling PBS' ``Newshour with Jim Lehrer'': ``Trade relations serve mutual interests. It's not a one-way street.''
Most of the Hunter bill's two dozen co-sponsors are Republican, and most voted last year against the law to end Congress' annual review of whether to extend China's normal trade status and to make it permanent instead.
Congress could end up dealing with the issue even if the repeal legislation goes nowhere. That's because the benefits flow to China only when it joins the World Trade Organization, and negotiations leading to that entry are bogged down.
If China isn't in the WTO by June, the Bush administration will have to decide whether to extend trade benefits for another year. That could trigger a battle in Congress.
``If the current situation continues much longer, I don't see how members of Congress could possibly vote to give China an extension of trade privileges,'' said Rep. Spencer Bachus, R-Ala., a free-trade advocate who supported last year's law.
Meanwhile, nine senators and 13 House members planning to take an eight-day Aspen Institute trip to China may be reconsidering.
``I think everyone is weighing their options,'' said Sen. Patty Murray, D-Wash., who met Wednesday with Ambassador Yang.
They met three years ago when Murray's father died while she was in China. Yang, then head of the foreign ministry's North American affairs bureau, came to her hotel room to express China's condolences. The personal relationship continues, she said.
``I told him that it was very important for all of us that our men and women be returned home'' to Whidbey Island Naval Air Station in her state, she said.
Sen. Bob Graham, D-Fla., vice chairman of the Senate Intelligence Committee, said despite numerous recent incidents, including China's detentions of scholars with U.S. ties, there appeared no likelihood the spy-plane impasse will go beyond diplomatic, and perhaps economic, pressure.
``We're not going to go to war over any of these instances,'' Graham said.
———
TFN - I do plan on selling SA/IPO shares if the launch is a
successful one, but only those additional shares that I will be permitted to purchase as a HRCT Long. Those that I may
receive as a dividend will be held Long. Isn't this the advantage of being offered IPO shares and a good investment
strategy?