Insider Monkey compiled a list of today’s news about China. There are several hedge funds shorting China, so we will be sharing more articles about China.
Chinese software engineers are following the footsteps of their Indian counterparts. China’s software industry expanded by 31% in 2010. According to a report by the Ministry of Industry and Information Technology, the software industry in China has been growing at a 37% rate per year and reached $203 Billion at the end of 2010.
China’s Auto Market To Slow in 2011: China is the world’s largest auto market, where more than 18 million units were sold in 2010. Analysts are expecting a pull back in China’s auto market in 2011. The breathtaking growth in China brought scores of people into the middle class and this fueled auto sales in China in recent years. The government also introduced consumption tax cuts in 2009 and 2010 in support of the auto industry. The sales tax went back to 10% at the beginning of this year from 5% in 2009 and 7.5% in 2010. Chinese officials haven’t clarified yet whether the 3,000 yuan ($454.37) rebate for the fuel-efficient cars and subsidies for farmers’ trade-in vehicles will be discontinued. (Source: First Financial Daily)
Polysilicon Glut in China : China’s solar industry was suffering from shortages of polysilicon just a couple of years ago. No more. According to a report by Chinese Renewable Energy Industries Association, the demand for polysilicon in the Chinese market is way behind the supply of polysilicon. In 2005 total polysilicon production in China was only 30 tons. In 2008, total production exceeded 6000 tons. The report emphisized the glut in the market by saying “There is industry, no market”. (Source: Southern Metropolis Daily)
China’s Ethylene Glycol Imports Exceed $5.7 Billion: China’s ethylene glycol imports grew 14% in 2010 and exceeded $5.7 Billion. Ethylene glycol is an important input for the plastics industry, used in plastic bottles, polyester and detergent production. According to China Economic Net, the average price of ethylene glycol was $605 per ton in 2009 and $868 per ton in 2010. Despite the 43% increase in price, the imports reached 6.6 million tons. China’s ethylene glycol imports increased 10-fold during the past 15 years.
Water, Water Everywhere: Chinese government yesterday announced that it will be spending nearly $600 Billion during the next 10 years on water conservancy construction. The government sees this as a national priority and aims to accelerate the investments in water conservancy. Related stocks trading in the Shanghai Stock Exchange, Jiangxi Hongcheng Waterworks (SHA: 600461), Anhui Water Resources Development (SHA: 600502), and Qianjiang Water Resources Development (SHA: 600283) surged by 10%, reaching the daily limit.
