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51% of China's SOEs are Unprofitable



November 17, 2009 – Comments (3)

That's just one of a number startling statistics revealed in China's Once and Future Rise, an impressive package of analytical articles on the country/economy from our friends at World Politics Review. Read all of the articles below:

Structural Flaws Will Limit China's Rise
Although China has made significant progress since reforms began 30 years ago, the country continues to deal with income inequality, government corruption, and a political regime that is resistant to change. What does this mean for China's aspirations?

Ready or Not: China's Fifth Generation Leaders
Slated to come into power in 2012, the next generation of China's political leadership will have critical issues to deal with. Who are they and what are there overriding goals?

China as Rival, Competitor and Partner
As China grows into a world power, what will the relationship be with the US? Our two countries have myriad shared and divergent interests, and it will be a delicate balancing act.

These are all premium, subscription articles, but WPR has been kind enough to grant free access today to readers of this blog. All they ask in return is that if these are the kind of articles you like to read, you consider taking a free trial to the publication. Click here to do that.

3 Comments – Post Your Own

#1) On November 17, 2009 at 1:57 PM, JaysRage (82.12) wrote:

It seems to me that there is an unusual amount of negative press about China lately.   It seems to me that there are some pretty strong forces attempting to squeeze some money out of the Chinese stocks to find better entry points.   

Most of the press is very generic, centering around China's over-dependence on the American consumer or around Chinese totalitarian government or around general suspicion of an over-spent economy.   

There is very little around specific sector analysis, specific stock analysis or fundamentals of P/E ratios that are out-of-whack or anything that related directly to specific stocks.  

It looks like scare tactics to me.   I have one eye-brow up.   Personally, I'm actually out of all positions right except two.   I'm looking for better prices for the stocks that I'm watching after taking some profits during the past week.   I'm still holding APWR and CCGY. 

Stocks that I'm watching and looking for better entry points

HOGS, CPBY, CHWY, CEU, CDCS.....among others. 

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#2) On November 17, 2009 at 2:01 PM, throwerw (28.47) wrote:

haven't read through everything yet, but i have a couple of comments.  1. i think it's pretty impressive that 49% of SOEs are actually profitable.  2. if you compare the loan amounts to the number of people in the country, and think about how much the fixed investment (i'm assuming this is roads, bridges, subways) is going to pay off for everybody in the future, it doesn't seem like such a big deal.  the addiction to bank lending in the US is obviously of greater concern.

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#3) On November 17, 2009 at 2:06 PM, throwerw (28.47) wrote:

jaysrage: my sentiments exactly.  i think it's kind of sad that the mainstream media is trying to blame america's economic problems on china.  maybe goldman sachs controls the media like they control the government and is trying to scare everybody out of their china stocks so they can buy more at cheaper prices.

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