Tuesday, 27 November 2012

Gaming for BlackBerry 10 Live Demo from BlackBerry Jam Americas Keynote


 http://blogs.blackberry.com/2012/09/gaming-for-blackberry-10-live-demo-from-blackberry-jam-americas-keynote/?CPID=E20C084&DATE=112712

BlackBerry ® Jam Americas attendees were treated to a live demo of some of the exciting games that are in development for BlackBerry ® 10. The new platform allows for amazing mobile graphics. I loved seeing how developers are already creating games for BlackBerry 10 — they are doing some very impressive work. Have a look at the demo below and let us know what you think. Are you excited to get gaming on BlackBerry 10?

Related Posts

Treasury says China is not currency manipulator

By Greg Robb, MarketWatch
WASHINGTON (MarketWatch) — The Treasury Department on Tuesday again declined to name China a currency manipulator, citing progress in the emerging nation’s currency appreciation.
In its semiannual report on exchange-rate policies, the Treasury said China’s currency remains “significantly undervalued,” and that “further appreciation of the [yuan] against the dollar and other major currencies is warranted.”

GOP senators remain critical after meeting with Susan Rice

The U.N. ambassador's attempt to repair her standing with Senate Republicans appears to fall short, as a trio of GOP senators aren’t assuaged given her comments following the U.S. consulate attack in Libya. (Photo: AP)
President Barack Obama has argued that pressure from his administration has pushed the Chinese currency higher against the dollar.
Treasury said that the yuan USDCNY -0.0032%  has appreciated by 9.7% against the dollar since June 2010 and 12.6% when adjusted for inflation. Read the full report.
Labeling China a “currency manipulator” would likely be more of a symbolic move, but it could have a trade impact. The designation would only trigger official talks between the United States and China over the value of the yuan.
But analysts said the key impact of the label would be to give Congress a green light to impose tariffs on Chinese imports.
Measures to slap punitive tariffs on Chinese products have long been popular in Congress, but have never cleared both chambers.
Many U.S. manufacturers argue that China has held the value of its currency artificially low in order to lower the cost of its goods in the United States.

Reuters
President Barack Obama shakes hands with China's Xi Jinping (at left) in the Oval Office earlier this year.
Through September, America has run up a trade deficit in goods of $232 billion this year against China, according to Commerce Department data. That’s wider than the $217 billion trade gap through the same period of 2011.
Supporters of free trade worry that the tariffs might violate World Trade Organization rules and could prompt Beijing to retaliate, as it has done so in other trade disputes.
For this reason, a succession of U.S. administrations has argued that behind-the-scenes pressure was much more effective to get China to strengthen its currency.
In a statement, Sen. Charles Schumer, a Democrat of New York who has complained about the impact of Chinese imports on manufacturers in his state, said he was disappointed in the decision. “It’s time for the Obama administration to rip off the Band-Aid, and force China to play by the same rules as all other countries,” he said in a statement.
The value of China’s currency became a election-year issue, especially in the swing state of Ohio. Republican presidential candidate Mitt Romney had promised to cite China as a currency manipulator during his first day in office. He lost the state as well as the national election.
Obama’s campaign, in contrast, announced various trade sanctions against China and also criticized Romney’s ties to Chinese companies.
The last time that China was cited as a currency manipulator was in 1994, and that was for a completely different issue.
Chinese officials have always denied that they were manipulating the currency and have said they would gradually allow more flexibility.
Treasury said that reserve accumulation by China, an indicator of the degree of China’s intervention in the currency market, has slowed markedly since the third quarter of 2011.
According to Chinese data, reserve accumulation has slowed to an average of $18.7 billion per quarter in the year ended Sept. 30, compared with an average $140 billion per quarter during the prior year.
Even with the slower pace of accumulation, China’s official foreign reserves remain exceptionally high. As of the end of September, the People’s Bank of China held $3.3 trillion in foreign reserves, equivalent to 42% of China’s gross domestic product.
This stock of reserves is almost as large as the total amount of reserves held by all G-7 countries combined, according to the Treasury.
Its report urged China to be more transparent about the degree of intervention in the currency market, saying that reserve accumulation only provides “some indication” of the country’s moves in the market.
Greg Robb is a senior reporter for MarketWatch in Washington. Follow him on Twitter @grobb2000.

Research In Motion rises 2.2% after CIBC upgrade

 
Nov. 26, 2012, 8:30 a.m. EST 
By Steve Gelsi 
NEW YORK (MarketWatch) -- CIBC World Markets on Monday upgraded Research In Motion Ltd. RIMM -10.52% to speculative sector outperformer, which is the firm's equivalent of a buy rating, based on prospects for the company's new BlackBerry 10 debuting on Jan. 30. Analyst Todd Coupland had rated the company a sector underperformer. CIBC hiked its price target on Research in Motion to $17 a share from $8. Coupland said he expects an "upgrade of the existing subscriber base" for the company's BlackBerry 10. "Even in the face of lower service average revenue per user, RIM looks materially undervalued," Coupland said in a note to clients.


RIMM
Research in Motion Ltd. (NASDAQ)



OECD: Fiscal-cliff failure could trigger recession

By Barbara Kollmeyer
MADRID (MarketWatch) -- The Organization for Economic Cooperation and Development on Tuesday warned of a "hesitant and uneven recovery over the coming two years," saying it expects global growth of 1.4% this year and next. "The world economy is far from being out of the woods," said OECD Secretary-General Angel GurrĂ­a, in a press release as the group released its Economic Outlook. "The U.S. 'fiscal cliff,' if it materializes, could tip an already weak economy into recession, while failure to solve the euro-area crisis could lead to a major financial shock and global downturn." Gross domestic product across the OECD could rise to 2.3% for 2014, according to the projections. For the U.S., it sees GDP of 2% in 2013 if the U.S. can avoid the fiscal cliff, rising to 2.8% in 2014. The euro area is expected to remain in recession until early 2013, leading to a mild contraction of 0.1% next year, before a pickup in growth to 1.3% in 2014.

The iPhone Takes to the Big Screen

The world’s most popular smartphone becomes significantly faster, thinner and lighter this week, while gaining a larger, 4-inch screen — all without giving up battery life, comfort in the hand and high-quality construction.
That’s my quick take on Apple’s new iPhone 5, the sixth generation of the iconic device, which goes on sale on Friday. I’ve been testing the new iPhone for nearly a week and I like it a lot and can recommend it, despite a few negatives, such as a new maps app that has one big plus, but other big minuses. On balance, I still consider the iPhone the best smartphone on the market, especially with its staggering 700,000 third-party apps and a wealth of available content.
The price is the same — $199 for a 16-gigabyte base model, with higher-memory models at $299 and $399, all requiring a two-year contract.
Bigger Screen
In increasing the iPhone’s screen size, Apple took a different approach than competitors. It kept the same side-to-side width, yet added height to grow the screen from its previous 3.5-inch size. For those who prefer the gargantuan screens on some other phones, like the 4.8-inch display on Samsung’s Galaxy S III, the iPhone 5’s screen likely won’t suffice. These competing big screens are typically both taller and wider.
image

iPhone 5
However, I found the new iPhone screen much easier to hold and manipulate than its larger rivals and preferred it. In my view, Apple’s approach makes the phone far more comfortable to use, especially one-handed. It’s easier to carry in a pocket or purse and more natural-looking when held up to your face for a call.
And the moment you turn it on, you notice that the new, larger, screen can display more content—six rows of icons instead of five; and more contacts, emails and calendar entries without scrolling.
Despite the larger size, Apple managed to retain the same number of pixels per inch on the iPhone 5 as on earlier models, so the new model keeps the “Retina display” effect, which allows for sharp details. The screen continues to look great.
There’s a temporary downside: Many apps will fail to fill the whole of the larger screen until they are revised. But they still work as intended.
Design
While this new model isn’t a radical redesign, it offers a much bigger change than the current iPhone 4S did when it was launched last year. The minute you pick the iPhone 5 up you notice it’s much lighter—20 percent lighter, in fact. It’s so much lighter that you wonder if it’s a demonstration mock-up, not the real thing.
Yet unlike many competitors, this isn’t a plastic, insubstantial-feeling device. Although Apple claims it’s the world’s thinnest smartphone—18 percent thinner than the prior model—the iPhone 5 retains Apple’s trademark, solid-feeling, metal construction, with an aluminum back this time, instead of a glass back. Like many Apple products, it’s gorgeous.
There’s one design change that’s already rankling people, however: To accommodate the thinner design, Apple has adopted a new, thinner connector on the phone for plugging in the charger cable and connecting to accessories, like speaker docks. A new cable is included, but owners of the new phone will have to buy $29 adapters to keep using existing accessories.
The iPhone 5 also boasts a large array of new software features — though nearly all are available for older iPhones as well, via a free upgrade to the operating system, called iOS 6.
Speed, Battery and Camera
Perhaps the single biggest functional improvement in this iPhone — something you can’t get by upgrading the software on an older model — is speed. Apple has finally connected the iPhone to the fastest cellular data network, called LTE, and data downloads and uploads just fly, even when you aren’t on Wi-Fi. Also, the processor now has twice the previous speed.
Apple is hardly the first smartphone maker to include LTE. In fact, it’s one of the last. But including it in the popular iPhone is a big deal, especially since, unlike on some early LTE models, the blazing cellular technology doesn’t decimate the battery life on this phone.
Using an iPhone 5 on the Verizon LTE network in Silicon Valley and Washington, D.C., I averaged almost 26 megabits per second for downloads and almost 13 megabits per second for uploads. Download speeds peaked at 42 megabits per second. These speeds are more than 10 times the typical speeds I got on an iPhone 4S running Verizon’s slower 3G network and are faster than most Americans’ home Internet services. While LTE affects only data, voice calls I made on the iPhone 5 were clear, better than in the past. I had no dropped calls.
The iPhone 5’s battery lasted between 9 and 12 hours every day, in mixed use. For most people, the phone would last the day without recharging.
Apple shrunk the size of the rear camera, but kept the 8-megapixel resolution and added a cool, easy panorama feature and the ability to take still photos while making a video. Photos and videos I took looked great and were improved when in low light.
Maps and Software

Google vs. Apple

Compare screen shots of Google’s maps app and Apple’s own maps app.
image
iPhone 5 White House map (Apple Maps)
image
iPhone 4S White House map (Google Maps)
image
iPhone 5 navigation (Apple Maps)
image
iPhone 4S navigation (Google Maps)
The biggest drawback I found is the new Maps app. Apple has replaced Google Maps with a new maps app of its own. This app has one huge advantage over the iPhone version of Google Maps — it now offers free, voice-prompted, turn-by-turn navigation. Google had made this available on its Android phones, but not the iPhone. Apple’s navigation worked very well, with clear directions displayed as large green highway signs.
But the app is in other ways a step backward from the familiar Google app. For instance, while Apple’s maps feature a 3-D “Flyover” view of some central cities, they lack Google’s very useful ground-level photographic street views. And they also lack public-transit routing. Apple will instead link you to third-party transit apps. Also, while I found Apple’s maps accurate, they tend to default to a more zoomed-in view than Google’s, making them look emptier until you zoom out.
Siri, Apple’s voice-controlled intelligent assistant, can still be unreliable (it’s still a beta) but I had success with some of its new features, such as looking up movies and sports scores. It now allows you to dictate and post Facebook status messages and book restaurant reservations via the separate OpenTable app.
Speaking of Facebook, Apple has added sharing to that service as a built-in feature that works with many apps on the phone.
There’s also a nice new feature that lets you respond to a call you can’t take with either a canned text message (such as “I’ll call you later”) or a reminder to call back.
Apple’s FaceTime video-calling service now works over cellular connections as well as Wi-Fi. I was able to make several crystal-clear video calls over LTE, one from a parked car.
And Apple is introducing a new photo-sharing service, which lets you set up a stream of selected pictures and invite specific friends to subscribe to it. Any new pictures you add to these shared Photo Streams pop up on subscribers’ phones and they can comment on them.
image

Siri on the iPhone 5 can look up movies and sports information, above, as well as make restaurant reservations via the separate OpenTable app.
Some rival phones boast some features Apple chose to omit. These include a wireless function called NFC, for paying for goods wirelessly, and face recognition for logging into your phone. But I regard such features as either little-used or unperfected. For instance, NFC isn’t available in most stores and, in my tests, facial recognition on phones has failed to work time and again. For some, these features matter a lot, but I’d bet most users won’t care about them, at least in their current state.
Carrier Plans
Carrier plans for the new iPhone are too complex to detail here. In general, if you’re a current iPhone user, you won’t be able to upgrade at the $199 price unless you’ve had your current phone for a minimum period. And unlimited-data plans generally aren’t available to new users, though Verizon will sell you one if you are an existing customer with unlimited data and pay an unsubsidized price of $649 for the phone. AT&T will allow existing users with unlimited plans to keep them, even at the subsidized phone price, if they’ve had their current iPhones for a certain length of time, generally around 20 months. Sprint is the exception: It offers unlimited data to all iPhone buyers, existing and new.
Upgrading
If you own an iPhone 4S and especially if your carrier won’t let you upgrade yet at the $199 price, you may be content with just upgrading to the new software, which gives you a lot. But you’ll be stuck with the smaller screen, bulkier size and pokier cellular speed. If you own an older model iPhone, or are switching from another phone, however, the iPhone 5 is an excellent choice.
Bottom Line
Apple has taken an already great product and made it better, overall. Consumers who prefer huge screens or certain marginal features have plenty of other choices, but the iPhone 5 is an excellent choice.
Email Walt at mossberg@wsj.com.
http://allthingsd.com/video/


Motorola Droid Razr Maxx HD Review

The Motorola Droid Razr Maxx HD is like the Energizer Bunny of smartphones. But it also comes with a hefty price tag.





All Things Digital

From Wikipedia, the free encyclopedia
 

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All Things Digital
URL www.allthingsd.com
Commercial? Yes
Type of site Technology news and analysis
Owner Dow Jones
Created by Kara Swisher
Walt Mossberg
Launched April 16, 2007
Current status Active
AllThingsD.com is an online publication that specializes in technology and startup company news, analysis and coverage. It was founded as an extension of the D: All Things Digital conference in 2007 by Kara Swisher and Walt Mossberg.
It is a wholly owned subsidiary of Dow Jones & Company Inc., and is a member of The Wall Street Journal’s Digital Network, which includes WSJ.com, MarketWatch, Barron's, and SmartMoney.

Contents

Site content

AllThingsD.com expands upon the All Things Digital conference, which was launched in 2003 by Swisher and Mossberg. While the conference quickly became popular and prestigious among the business and technology communities, the number of attendees was limited to approximately 500 people. The web site was set up to “open the conversation to everyone.” [1] Although the site operates year round, during each “D” Conference it offers comprehensive and direct coverage of all events and presentations
AllThingsD.com focuses on news, analysis and opinion on technology, the Internet and media, but considers itself a fusion of diverse media styles, different topics, formats and sources. Initially, the two main features of the site were Kara Swisher’s BoomTown blog, and Walt Mossberg’s technology product review columns from the Wall Street Journal. Since then, the site has expanded greatly in personnel and focus. Although most of the staff is based in San Francisco, many contributors, including Mossberg, work primarily in other parts of the United States.

Featured writers

AllThingsD.com currently features nine different writers, each with their own section of the site, as well as a separate category for other featured writers, both within and outside of the publication:
  • Kara Swisher’s BoomTown -- Swisher’s coverage of digital issues which originally appeared under the same title in the Wall Street Journal, and is now published in AllThingsD.com.
  • Walt Mossberg’s reviews and personal technology column, also originally run in the Wall Street Journal
  • Katie Boehret’s Digital Solution -- a review of consumer technology.
  • John Paczkowski’s Digital Daily -- an often humorous look at the tech industry and its major personalities.
  • Peter Kafka’s MediaMemo -- media and technology coverage.
  • Liz Gannes’ NetworkEffect – reporting with a focus on social networking and the intersection of entertainment and technology.
  • Ina Fried’s Mobilized—coverage of wireless issues and devices.
  • Tricia Duryee’s eMoney – reportage on earnings, transactions and financial statistics that move the technology industry.
  • Arik Hesseldahl’s NewEnterprise – articles and entries concerning the online business world, covering both hardware and software.
  • Voices – a portion of AllThingsD.com featuring posts by the site’s staff writers, pieces from other Dow Jones properties, and reporters and bloggers from all over the web.

Conferences

AllThingsD.com also hosts content concerning its D Conferences; besides the annual main event in late Spring, in December 2010 they hosted D: Dive Into Mobile[2], the first brand extension of the conference in which representatives from leading mobile device and software producers were interviewed by members of AllThingsD.

Online commenting

All Things Digital utilizes Disqus to permit readers to comment on news stories. [3] [4]

References

External links

Monday, 26 November 2012

Hong Kong braces for insurance mega-IPO

Commetary: PICC Group faces hard sell

By Craig Stephen
HONG KONG (MarketWatch) — Hong Kong is trying to break a famine in new stock listings with one its biggest IPOs in two years. But as the up-to-$3.6 billion listing of Peoples Insurance Co. Group of China prepares to float, it’s less clear if there’s much to tempt investors.
Despite recent strength in Hong Kong’s equity market, investor sentiment remains fragile. Absorbing this listing looks ambitious for a number of reasons.
A key issue is the size of the offering. This looks like a big ask despite cornerstone investors being lined up to soak up $1.3 billion of the paper. AIG Group AIG +0.43%   is in for a hefty $500 million.

Reuters Enlarge Image
PICC Group management pose for photos before attending an investors meeting in Hong Kong earlier this month.
A more fundamental issue for investors is why do they need to own PICC Group in the first place?
On the face of it, having exposure to China’s largest general insurer sounds appealing — it should merit being a core holding for many institutional investors.
The problem is investors already have it: PICC listed its property-and-casualty unit in 2003 in Hong Kong, as PICC P&C HK:2328 -0.39%   PPCCY +4.06%  .
What is coming now is the parent. The big difference appears to be it now also includes a life business, which was launched in 2005. So effectively, you’re buying the PICC Group vehicle for exposure to its new life business.
But it is less clear how attractive this business is. While it does appear to have grown at a brisk pace — now ranked fifth in terms of new premiums in the first nine months of this year — earnings quality is under the spotlight.
For one, it is heavily weighted towards single-premium savings products. It’s easier to ramp up sales of these faster than traditional life products, being similar to bank term deposits. But as a rule of thumb, mainland Chinese insurance companies find this business lower quality and more challenging to generate profits.
The insurer needs to be able to generate higher returns over a short duration, which can be demanding when bank deposit rates are lowered, as we saw earlier this year. The other side of the coin is that rising bank deposit rates can lead to these single-premium products being redeemed early, as savers opt for better savings rates.
For these reasons, China’s life-insurance industry has being trying to shift growth to traditional life or long-term saving products.
Here PICC Group lags well behind its rivals. Eighty-six percent of its life business came from single-premium products in 2011. This compares unfavorably to China Life HK:2628 -0.44%   LFC -0.54%  at 36% or Ping An HK:2318 +0.43%   PNGAY -1.69%  at 17%.
Another potential area of weakness is a reliance on bank distribution for policy sales. China’s huge banks are typically in a strong position to drive a hard bargain on bancassurance-distribution agreements. Again PICC Group lags behind its peers. It generates 69% of sales through banks, which puts it well above China Life at 46% and Ping An at just 10%.

China aircraft carrier completes successful test

China successfully lands a fighter jet on its first aircraft carrier, the country's official news agency confirms. Chinese state media show footage of the landing on the carrier, named the Liaoning. Photo: Associated Press.
At the moment PICC still gets about 90% of its core business from its property and casualty insurance, so life is relatively small.
There are also some uncertainties facing its core general insurance business as the industry prepares for deregulation and more competition.
At the moment with auto insurance for example, it is heavily regulated to the extent the government sets mandated pricing levels that ensure profitability. Reform is expected within the next year, according to reports cited by Barclays Capital. One consequence of this is you can expect more price competition, which could challenge profitability for incumbents like PICC.
Investors will look for clarity on this and exactly where new capital will be deployed — life insurance or general insurance?
Another consideration is that an impressive line-up of cornerstone investors is not always the best indication of secondary-market value of the shares. This deal has 17 cornerstone investors in total.
Regulators in Hong Kong have raised concern before that cornerstone investors can accrue value in other ways, not reflected in the share price. For instance, AIG’s subscription of $500 million includes a commitment to form a life-insurance joint venture by the end of May next year. Otherwise it can sell its stake.
Another factor that could weigh on valuations is the company’s structure. Investors are effectively being asked to buy a group parent company, which often leads to a holding-company discount. One way to rectify this would be to delist its existing Hong Kong subsidiary, although the company has ruled this out, say Macquarie analysts.
It looks as if the main reason PICC Group is listing in this form is to raise capital as its solvency ratio comes up against regulatory thresholds, according to reports. For investors to come to the table, pricing of the issue will need to be keen. After all, there are plenty other choices among straight life companies.  


 

Analysis: "Caveat emptor" as foreigners rush to ride China rebound

http://www.reuters.com/article/2012/11/26/us-china-investment-idUSBRE8AO0D720121126?feedType=RSS&feedName=businessNews&utm_source=dlvr.it&utm_medium=twitter&dlvrit=56943

Investors look at computer screens showing stock information at a brokerage house in Shanghai in this June 8, 2012 file photo. Foreign investors have started rebuilding their China equity portfolios, tempted by low valuations after two years of market underperformance and signs economic growth may be stabilizing. They have pumped nearly $4 billion (2 billion pounds) into Chinese equity funds in the past two months alone, trying to get in early on what they hope will be a sustained rally. Picture taken June 8, 2012. REUTERS-Aly Song-Files
An investor places his hands on the back of his head in front of an electronic board showing stock information at a brokerage house in Hefei, Anhui province in this May 2, 2012 file photo. Foreign investors have started rebuilding their China equity portfolios, tempted by low valuations after two years of market underperformance and signs economic growth may be stabilizing. They have pumped nearly $4 billion (2 billion pounds) into Chinese equity funds in the past two months alone, trying to get in early on what they hope will be a sustained rally. Picture taken May 2, 2012. REUTERS-Stringer-Files
An electronic board showing stock information is reflected on an investor's sunglasses at a brokerage house in Taiyuan, Shanxi province in this June 11, 2012 file photo. Foreign investors have started rebuilding their China equity portfolios, tempted by low valuations after two years of market underperformance and signs economic growth may be stabilizing. They have pumped nearly $4 billion (2 billion pounds) into Chinese equity funds in the past two months alone, trying to get in early on what they hope will be a sustained rally. Picture taken June 11, 2012. REUTERS-Stringer-Files
HONG KONG | Sun Nov 25, 2012 8:33pm EST
(Reuters) - Foreign investors have started rebuilding their China equity portfolios, tempted by low valuations after two years of market underperformance and signs economic growth may be stabilizing.
They have pumped nearly $4 billion into Chinese equity funds in the past two months alone, trying to get in early on what they hope will be a sustained rally.
But sentiment looks to be running ahead of fundamentals. There are clear risk signals for the Chinese market -- including sluggish earnings, rising corporate debt and retail investors looking for other opportunities -- even if the broader economy gathers strength.
"Valuations are attractive and fears of a major slowdown in China seem to be waning, while China still promises growth faster than the rest of the world," says Paul Gillis, professor at Peking University's Guanghua School of Management.
"But most of the problems affecting Chinese stocks -- accounting fraud, the variable interest entity and regulatory stand-offs between the U.S. and China -- have not gone away and still need to be solved."
Illustrating that growth does not translate into equity gains, the MSCI China stock index has fallen more than 40 percent since its launch in 1992. Over the same period, China's nominal GDP has increased by 15 times.
REBALANCING
The shift in foreign investor attitudes is clear.
Bank of America Merrill Lynch's global survey of fund managers, covering 248 managers with $695 billion of assets under management, found confidence in China's economy was at a three-year high.
In October, Chinese shares listed in Hong Kong, known as H-shares and the main gateway for foreign investors into China, jumped 7.6 percent to easily outpace other regional benchmarks.
"I think most fund managers are looking at the fundamental mismatch in their portfolio between their direct exposure to China and the role China plays in the global economy, often very little versus one hell of a lot," said Michael McCormack, executive director at China-focused fund consulting firm Z-Ben Advisors.
"Investors are now trying to rebalance that."
One attraction is valuations. The MSCI China index, the most popular benchmark for China funds, has consistently underperformed Asian markets over the past two years, following a stellar run where it nearly tripled in value between October 2008 and November 2010.
The index trades on a forward price-to-earnings multiple of 9.2, cheaper than Brazil on 9.9 and India on 13.2, and a lure to investors hoping to get in early on another substantial upswing. The H shares are at price-to-book ratios around four times lower than in 2007, according to Thomson Reuters data.
Those valuations and signs the economy is improving -- Thursday's flash PMI reading showed the first expansion in manufacturing in 13 months -- have piqued interest, and it seems investors are worried about missing out on riding the recovery.
Data from fund-flow tracker EPFR Global shows inflows into China equity funds accounted closed in on $4 billion over the 10 weeks to mid-November, and accounted for more than half of the flows in Asia ex-Japan funds in the week to November 15.
" has bottomed out and found a new level, so people don't want to be negative about China anymore," said Stuart Rae, chief investment officer of Pacific Basin Value Equities at AllianceBernstein.
The company's $879 million Asia ex-Japan fund, launched in November 2009, is now overweight China for the first time, said Rae, who also manages its US$150 million QFII China fund.
PICK CAREFULLY
As Beijing's new leadership settles in, the stock market's fundamentals are back in focus and they could make the recent enthusiasm seem premature, said Simon Grose-Hodge, head of investment advisory for South Asia at private bank LGT.
For one, there is unlikely to be a repeat of anything remotely like the 4 trillion yuan ($640 billion) stimulus package that guided the Chinese economy through the 2008/09 global financial crisis.
Instead, there may be smaller, more targeted spending plans that don't make cheap credit available across the board.
And longstanding issues for investors, such as transparency, reform of state-backed companies, corporate governance and regulator interference in the market, have yet to be properly addressed despite some positive noises from authorities.
So while the H-shares in Hong Kong are showing signs of life, China's domestic stock markets are languishing near three-year lows and on the nose with retail investors.
Two-thirds of Chinese companies that have posted third-quarter earnings missed expectations, according to Citi Private Bank. Profits fell an annual 5.8 percent, and analysts, on average, are still cutting earnings expectations for next year.
Leverage has soared above comfortable levels, with Beijing-based consultancy GaveKal-Draganomics expecting corporate debt to hit 122 percent of GDP by the end of the year, up from 108 percent at end-2011.
Rising non-performing loans (NPLs) pose a risk for the banks, a hangover from cheap credit as part of the 2008/09 stimulus. Goldman Sachs & Co estimates the NPL ratio is more than six times the official reported rate of 0.97 percent.
Further, China's industrials were owed more than 8 trillion yuan in net receivables at the end of September, up 16.5 percent from a year earlier, according to the National Bureau of Statistics.
HSBC says the annual pace of profit growth of non-financial companies in the CSI 300, which tracks the performance of China's A-share market, has been falling for the last three quarters, while the quality of earnings -- measured as the ratio of free cash flow to net profit -- is in negative territory.
The CSI300 is down 7 percent this year, following a 25 percent drop in 2011 and a 12.5 percent fall in 2010.
"Five years back in 2007 the (Chinese) market was one of the most expensive and now it's cheap on a par with Korea -- it's one of the cheapest markets in Asia," said Pacific Basin's Rae.
"There is lots of stuff that's cheap -- some has recovery potential but then some is cheap for a reason."
($1 = 6.2345 Chinese yuan)
(Additional reporting by Shanghai Newsroom; Editing by John Mair)
Nov. 25, 2012, 8:09 p.m. EST

China’s Haier riding a New Zealand buyout

Haier on betting overseas deals to keep growth alive

By He Chunmei
BEIJING ( Caixin Online ) — Haier Group’s successful takeover of New Zealand manufacturer Fisher & Paykel Appliances has stoked the market with fresh confidence in China’s largest white goods manufacturer.
The deal sealed in early November also bought time for Haier HK:1169 0.00%  as it strives to maintain growth momentum in an increasingly competitive environment for makers of washing machines, refrigerators, stoves and air conditioners around the world.
Several rounds of buyout negotiations ended when Fisher & Paykel’s NZ:FPA -0.39%  shareholders agreed to sell more than 70% of the company to Haier, which already controlled about 20%, for 927 million New Zealand dollars ($760 million), or NZ$1.28 a share NZDUSD +0.09% .
 About Caixin
Caixin is a Beijing-based media group dedicated to providing high-quality and authoritative financial and business news and information through periodicals, online and TV/video programs.
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With a majority stake in hand, Haier said it will launch a forced buyout of minority shareholders and grabbed the remaining stakes of the company which, like Haier, makes home appliances at factories around the world.
In initiating the successful takeover, Haier officials were apparently eyeing more than additional manufacturing space: The plum parts of the deal, say industry analysts, are Fisher & Paykel’s research and development division and its global sales network.
Analysts say Haier was attracted to the New Zealand company’s technological capacity and global customer base — business factors that could help the Chinese company maintain growth.
Haier’s revenues increased to 151 billion yuan ($24.2 billion) last year from 100 billion yuan USDCNY -0.0851%  in 2004. The company last year accounted for 7.8% of all large, household appliance sales in terms of revenues around the world, according to the market data watcher Euromonitor.
It’s also No. 1 in China for refrigerator and washing machine sales, although of late it’s faced fierce competition in the TV and air conditioner business.

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In recent years, Haier built production and marketing facilities in the United States, Malaysia, Indonesia and the Philippines. Sales in Europe rose 15% in the first half of this year from the same period 2011.
Haier’s overseas sales account for about 26% of total revenues. But appliance industry analysts aren’t happy. Liu Buchen of Kuafu Enterprise Management Consultancy, for example, says the company would be better off with a 50-50 domestic-foreign sales split.
Meanwhile, Chinese rivals including Midea Group and Gree Electric Appliances Inc. CN:000651 +0.40%  have seen sales surge much more rapidly, with each engineering a sales leap to more than 100 billion yuan last year from about 20 billion yuan in 2004.
Market watchers say Haier is under pressure to keep up with Midea and Gree at home, and compete against powerful multinationals such as Samsung SSNLF 0.00%   KR:005930 +0.93%   and Siemens DE:SIE -0.13% SI -0.27% in other countries.
Liu said low brand awareness, technological limits and a lack of attention-getting breakthrough products have hurt Haier’s internationalization effort. In recent years, “Haier had been quite worried” about its ability to compete, he said.
Buying a foreign company such as Fisher & Paykel offered Haier “the only way out,” said a home appliance industry insider.
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Business abroad

Haier has been moving aggressively into overseas markets since at least late 1990s, when it built a manufacturing facility in the United States. The company later launched several unsuccessful attempts for overseas acquisition, including its 2004 proposal to buy U.S. home and commercial appliance company Maytag Corp., a bid that lost to Whirlpool Corp. WHR -1.69%  
In 2009, Haier acquired a 20% stake in Fisher & Paykel for $28.5 million. The Chinese investor also got two of the eight seats on the company’s board of directors.
Haier helped the New Zealand company break into China’s high-end white goods market, while Fisher & Paykel gave its Chinese partner a hand with expansion projects in Australia and New Zealand, as well as with development of a new washing machine motor.
Last year, Haier acquired Panasonic Corp.’s PC 0.00% JP:6752 -0.99% Sanyo Electric washing machine and refrigerator units in Japan and Southeast Asia. As a result, Haier said, January-April sales in Japan increased 40% year on year.
Haier’s next overseas move was to offer Fisher & Paykel’s main shareholders a buyout offer.
Established in 1934, Fisher & Paykel sells high-end appliances in 60 countries and regions. But business has suffered since the 2008 global financial crisis and the company’s debts have risen.
Haier’s initial offer in September of NZ$1.20 per share was rejected by Fisher & Paykel’s board the next month. After Chairman Keith Turner said a fair valuation would be between NZ$1.28 and NZ$1.57, Haier raised the offer to NZ$1.28.

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Fisher & Paykel’s fund manager Allan Gray Pty. Ltd., which owned about 17.5% of the shares, supported the bid, as did institutional investors ACC, AMP and Harbour Asset Management. Haier thus won support from the four, largest shareholders and nabbed the deal.
Haier is thus taking over manufacturing bases in New Zealand, Italy, Thailand, Mexico and the United States. Moreover, despite slowing business, Fisher & Paykel remains a profitable company: It reported a net profit of NZ$33.5 million on sales of NZ$891 million for the fiscal year ending March 31.
“Acquiring Fisher & Paykel will help Haier build an upstream industry chain,” said analyst Liang Zhenpeng, who said appliance parts manufacturing has been a weakness for the Chinese company. Most of China’s domestic home appliance manufacturers reply on chips and core parts made in other countries.
“Haier faces urgent tasks, including the need to develop its own core parts, building an upstream industry chain and improving product technology and quality,” said Liang.
Haier Chairman Zhang Ruimin in recent years has repeatedly cited an interest in shifting the company’s strategic interests to services from manufacturing.
There has been speculation that Haier might gradually start outsourcing its manufacturing business to companies such as BOE Technology Group Co. and electronics giant Foxconn. Other industry insiders have said they expect Haier to start servicing international appliance giants.
Haier launched last year a restructuring to integrate logistics, services and home appliance production into its two listed companies, Haier Home Appliances and Qingdao Haier Co. CN:600690 -1.20%
But analysts such as Liu doubt Haier will switch to the service sector entirely, calling such a move too radical.
“Giving up production and only focusing on sales and services would lead to a lot of trouble for Haier,” he said.
Liang agreed. “Haier would not dare withdraw from manufacturing,” he said. “Actually, its acquisitions of Sanyo and Fisher & Paykel have shown that it wants to repair weaknesses in design and research through mergers and acquisitions.”