Word: shanghaied
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...China's two mainland capitals of capitalism, it's raining money. The relentless increase in stock prices in both Shanghai and Shenzhen - the former has tripled in value in just the last 18 months - has triggered a stampede of companies in China to offer their shares to a public that has a ravenous appetite for them. Astonishingly, according to a forecast just out from Price Waterhouse Coopers, a global consulting firm, the two main equity markets in China will raise $52 billion in capital this year in initial public offerings (IPOS), more than double the amount forecast at the start...
...More than anything, the startling number testifies to the buoyancy of equity markets in China - which many analysts believe are classic, overvalued bubbles, destined at some point to crash. Indeed, the Shanghai market tumbled more than five per cent on July 5, before recovering on Friday. But $52 billion, whatever the environment, is serious money - without question a milestone in China's extraordinary economic transformation. Consider that the most money ever raised for IPOS in the United States in a single year was $63.1 billion. That was in 1999 - at the peak of the technology bubble...
...That fact may be ominous - the infamous tech bubble burst the next year - and China's shares, now priced at about 45 times earnings, are definitely expensive. But there are enormous differences between Shenzhen and Shanghai now, and the NASDAQ back then. The companies offering their shares to the public in China are not small, technology oriented start ups. They are, for the most part, big state owned companies - oil and gas, mining, banks - most of which have already gone public in Hong Kong, seeking to tap the broader international capital markets. China's two main equity markets...
That's why five years ago this month, as Yao prepared to become the NBA's number one pick, Yi Jianlian, then either 15 or 18, sweated through drills and games in a Shanghai gym, one of an elite group of players from all over east Asia. He was participating in an annual Adidas all star camp. He was a revelation, "the best player in the camp that year by far," says former NBA all star Detlef Schrempf, who now works for Adidas (which took over Reebok in 2005). These all star camps are "very important parts of our marketing...
Once the NBA draft is held in New York, that investment will start to pay the dividends. And that's why, back in Shanghai late last month, the search for the next star from China went on. At the Shanghai University of Sports, Adidas again held its annual camp. The University is a classic product of the Communist system, its campus full of students identified by the state who are there because of their skill and potential in a variety of sports, from gymnastics to Taekwando. But what was taking place on the fourth floor of a steaming...