Wednesday, January 07, 2009
You may wish to read this article on China's prospects in 2009. There's an exodus going on of Koreans, and some of the foreign countries that have located factories in China are pulling out and going to places like Indonesia.
Deutsche Bank is expanding into China in a joint venture with Shanxi. Bank of America is cashing in on a hefty chunk of its stake in China Construction Bank, and this Hong Kong mogul wants to sell a couple billion shares in Bank of China. I wonder. I truly wonder. True, buy low, sell high is a good move. Still, when DB is playing these sorts of games with regulatory capital, I'd expect more caution. Maybe they are trying to hedge currencies with that Shanxi move.
The Satyam blowup is having substantial repercussions. This is another story that's been brewing for months, really. It's too complicated to review in detail, but it ended with the CEOs resignation and admission that some of the accounts reported were fictions. Start with the link and see the related stories at the bottom of the article. Satyam is listed on multiple exchanges and it is the fourth largest IT outsourcing firm in India. It employs more than 52,000 persons.