Replies to post #75651 on China Growth Stocks

[Post-it]

Thanks Rato, very helpful.

Looks like rates are creeping up. I agree, interest rates below 0,36 (now 0,40) are basically impossible.

It is also clear that the use of term deposits seriously bumps up interest income. I would expect any company that claims to have something like 50% of its market cap in cash to make use of term deposits. If 50% of cash would be put in 3 month term deposits, the interest rate would increase from 0,36 to 1,03% (for 2010).

It is good to see that e.g. CAST has increased its use of term deposits. Seems that 74% of their cash is in TD's. Their interest income is +/- 1,5% of cash. Makes sense.

I have not had a lot of time to check many others, but it seems that CHBT and CCME do not exceed 0,3%...

I understand that interest rates in Hong Kong are close to zero, and US is also lower. I can only hope that CHBT and CCME have their cash stashed away in HK or US, or that I have made a mistake in methodology...