No insight, sorry. I don't see why any contract-framework renewal would be any different than the terms they get when they add a new bus operator to the network. Sure there would be some kind of cost increase but it should be easily manageable. With the margins the way they are, they can give the bus operators a nice concession boost to renew for a 5-yr agreement and not impact margins that much.
The fact is, the agreement with the entity affiliated with the ministry transportation lasts until late 2012 (And CCME management sees no reason it won't be renewed at that point). Given the current situation, they do not really have to bid against anyone else for the bus-operators. When the government talks, the Chinese listen =P.
It is kind of pointless to keep wondering 'What is holding CCME back'... It just is what it is =) People don't believe in China companies, people believe companies are frauds, people believe the market is going down and short high-beta stocks, people believe China will crash with the real-estate bubble and short China equities, etc etc etc. Many China companies trade at a P/E of 5-6 right now and CCME is still a new company building its credibility.
All CCME needs to do (and can do) is keep performing well, beating expectations and making money for us shareholders.
-Fernando
