China's manufacturing sector, employment fall sharply

[kawaraj]

Car sales down? how's the data of China side? Well I can provide India's,

Tata Motor shares just down nearly 20 percent in a week for disappointing Q4 data,
and today look at this,

General Motors India sales down 27% in May - The Times of India

 

[skyknight]

My friend, I will not start a post to bash their economy...
But when they bash my country, I defently have to counterback.

In the case of economy only，I have to say you are wasting your time。
Indians bashing China's economy? Better to take it as a bollywood comedy。

 

[jbond197]

People take all your nonsense to other existing threads.. The topic is about China's manufacturing sector, employment fall sharply so unless you have anything to add just don't act like 5 year old kids unable to deal with a situation..

Car sales down? how's the data of China side? Well I can provide India's,

Tata Motor shares just down nearly 20 percent in a week for disappointing Q4 data,
and today look at this,

General Motors India sales down 27% in May - The Times of India

Open a thread and troll there !! Or you want us to post Pakistani economy data here..

 

[R0H1T]

My friend, I will not start a post to bash their economy...
But when they bash my country, I defently have to counterback.



So correct me

Look I don't wanna bash no one neither do you but what you posted earlier didn't make sense to me hence the rebuttal, so yes I'll admit that CN is far better(vs IND) in terms of any eco metric atm but the rosy picture you're painting is infact full of thorns if you take those tinted glasses off !

 

[Diamond_Gold]

this is real economy dude.. what are you talking about ... PMI manufacturing is the most scientific way to check manufacturing trends in the industry ... it shows real growth or fall ..

Thanks for showing us how sophisticated an indian economy guru works daily... taking a forecast index (data consolidated by a small group of purchasing manager) as the gospel truth....LOLOL

 

[CZAR]

Personally, I feel china is head and shoulders above india and any exercise to prove otherwise is futile (at least in the near future). But let's not be dismissive of the indian economy - it might not be as large as China's but it is still comparable to the likes of Russia and Brazil. Despite the slow growth in Q4 FY12, the growth in GDP for the whole of FY12 was a respectable 6.5%, higher that other brics nations (except china) and much higher than the advanced western nations. Despite all its problems, very few large economies (trillion plus economies) can boast of growth rates as high as that of India.

The deficits are large, but steps such as GAAR and deregulation of petrol prices is likely to go a fair distance in terms of augmenting tax collections. As for the CAD, the falling INR should also lend a helping hand to exports in FY13, and help address the export-import imbalance. Governance deficit is ailing the indian growth story, but many economists are of the opinion that the long term growth trend for India remains intact.

And finally, to say that indians are suffering from superpower delusions, would be to say that chinese are sweat shop workers, and pakistanis - terrorists.

 

[Diamond_Gold]

And finally, to say that indians are suffering from superpower delusions, would be to say that chinese are sweat shop workers, and pakistanis - terrorists.

You sounded very sincere and honest in the beginning but somehow drifted later and finally back to the usual indian self, taking chance to insult others from behind. LOLOL.

 

[Ignited Mind]

China slowdown worsens amid signs U.S. losing steam


(Reuters) - China's slowdown worsened in May as its factories saw a further deterioration in demand at home and abroad, dealing a new blow to a global economy struggling with a sharp downturn in Europe and a faltering recovery in the United States.

The darkening outlook was underlined by data showing the fourth monthly decline this year in exports from South Korea, the first major economy to report May numbers, as shipments to the United States, Europe and China all fell.

Equities, the euro and growth-linked currencies all fell after Friday's gloomy data, which followed reports on Thursday showing India's growth at its weakest in nine years.

Manufacturing surveys from Europe later are not expected to offer much comfort, while investors' jitters over the key U.S. non-farm payrolls report, due at 8:30 a.m. EDT (1230 GMT), have been rising since a separate report on Thursday showed U.S. private employers created fewer jobs than expected last month.

"I don't think Friday's numbers are going to be any better. It's been a dismal week so far, and we haven't hit bottom," said Jim Ritterbusch, president at oil trading advisory firm Ritterbusch & Associates.

Declines in two gauges of China's manufacturing sector were particularly worrying for investors looking to the world's second biggest economy - the main engine of global growth in recent years - to pick up the slack created by Europe's debt crisis and the sluggish U.S. economy.

China's annual economic growth is expected by analysts to fall to 7.9 percent in the second quarter, the first dip below 8 percent since 2009. That could pile pressure on authorities to take further policy action to support growth.

"What's really worrying is new orders have started to shrink and inventories have started to build up at an unusually fast pace," said Dariusz Kowalczyk, senior economist and strategist at Credit Agricole CIB in Hong Kong.

"Growth in Q2 is likely to slow, probably below 7.5 percent year-on-year. That puts the annual growth target at risk and the risks continue to increase because the external environment is weakening."

OUTPUT WEAKENS

China's official purchasing managers' index - covering China's biggest, mainly state-backed firms - fell more than expected to 50.4 in May, the weakest reading this year and down from April's 13-month high, with output at its lowest since November 2011.

The separate HSBC China manufacturing PMI, tracking smaller private sector firms, retreated to 48.4 from 49.3 in April - its seventh straight month below the 50-mark that demarcates expansion from contraction - with the employment sub-index falling to 48.1, its lowest level since March 2009.

The euro fell to a 23-month low after the data and the Australian dollar, highly sensitive to expectations of Chinese demand for commodities, hit an eight-month low. Japanese shares were heading for a ninth straight week of losses, matching its longest such run in 20 years.

China's yuan was little changed, after suffering its biggest monthly drop on record in May.

A slower growth outlook for China added to concerns facing fellow Asian industrial powerhouse South Korea, which has seen Europe's wrenching debt crisis sap demand for its exports.

Data released on Friday showed that exports fell 0.4 percent in May from a year ago, less than expected in a Reuters poll of economists, as demand in the Middle East and Latin America was offset by sharp falls in the United States, Europe and China.

"Given the prevailing view that the euro zone fiscal crisis won't be solved in the short term, we are concerned that exports to China will remain weak for some time," Deputy Trade Minister Han Jin-hyun said at a briefing after the data was released.

The weak export data prompted investment banks to warn that the South Korean government's forecast of 3.7 percent economic growth this year looked to be overly optimistic.

"Absent a vigorous export recovery, 2012 is shaping up as a year of sub-trend growth," said ING economist Tim Condon.

Taiwan's HSBC May PMI showed a second straight month of slowing expansion, with a reading of 50.5 compared with 51.2 in April.

PAYROLL JITTERS

India's manufacturing sector held up better, with a survey showing factories kept up a steady rate of expansion in May, with fast-rising output evened out by slowing growth of domestic order books.

The HSBC manufacturing PMI, compiled by Markit, eased marginally to 54.8 in May from 54.9 in April. It has stayed above the 50 mark for a little over three years.

While the survey indicated moderate growth in India's dominant manufacturing sector, question marks remain about the underlying weakness in the wider economy.

Official data on Thursday showed India's economy grew 5.3 percent in the quarter to March, the slowest pace in nine years.

Among the data due from Europe later are PMI reports for Italy, France, Germany and the euro zone as a whole, with polls forecasting all to remain deep in contractionary territory.

Economists forecast the U.S. employment report for May to show non-farm payrolls increased 150,000, up from a paltry 115,000 in April.

Investors were alarmed by a report from payrolls processor ADP showing private employers created 133,000 jobs in May, only a slight rise from April's tepid increase of 113,000 and below economists' expectations for a gain of 148,000.

(Reporting by Nick Edwards and Lucy Hornby in Beijing, Se Young Le and Choonsik Yoo ini Seoul, Sumanta Dey in Bangalore, Chikako Mogi in Tokyo, Luke Pachymuthu in Singapore and Lucia Mutikani in Washington; Editing by Jeremy Laurence)

China slowdown worsens amid signs U.S. losing steam | Reuters

 

[rai_kamal]

India manufacturing sector is a joke

When you r saying it's a joke.. It means it has got more space to grow as we still havn't utilized it well. Just think, if India tries to follow china's ways then you people will have to starve for markets. Just say thnx to the god that India is underdeveloped in it's manufacturing sector and that is helping you to survive in this critical economic condition. Just wait untill our manufacturing policy comes out and after that you will feel the competition the real one and china will realize that there is someone who can be china++.

 

[saroshshahid]

My friend, I will not start a post to bash their economy...
But when they bash my country, I defently have to counterback.
yeah u r right

 

[ChinaToday]

People take all your nonsense to other existing threads.. The topic is about China's manufacturing sector, employment fall sharply so unless you have anything to add just don't act like 5 year old kids unable to deal with a situation..



Open a thread and troll there !! Or you want us to post Pakistani economy data here..

thank you to all 81 chaps here the last thing china needs is lesson how to run our economy from country atleast 20 years behind us in almost everthing LOL

 

[saroshshahid]

yeah you are right :

My friend, I will not start a post to bash their economy...
But when they bash my country, I defently have to counterback.

yeah i agree with you .. so keep it up and good job for sharing good knowledge about china and india

 

[Developereo]

Bottom line, look at investment ratings and FDI inflows.

Money talks and bullshit walks.

 

[Ignited Mind]

Bankruptcy Fears for China's LDK Solar Due to Market Downturn


Chinese photovoltaics leader LDK Solar is headed for bankruptcy according to industry observers within China, due to its immense debt burden and a global downturn in the solar energy market.

China’s Nanfang Zhoumo reported on May 26 that bankruptcy rumors have plagued LDK in recent months, causing investors to seek to divest themselves of shares in the company and regional clients to suspend orders for the company’s products.

One of LDK’s leading investors, Guokai Jinrong, is believed to have sought buyers for its stake in the company since the start of 2012, with management heavily regretting its decision to invest in LDK in 2011, just prior to the solar energy market entering a slump after riding an unprecedented wave of growth.

LDK’s 2011 Q4 financial report, which at the end of April was delayed for several days, indicates that the company is mired in debt of U.S. $6 billion, and that annual interest payments alone amount to between $200 million and $300 million. Total Q4 losses were $589 million, marking the company’s third successive losing quarter.

This is a dramatic turnaround for LDK, which until recently was a leader in the Chinese solar energy sector, and whose 37 year-old chairman Peng Xiaofeng was once feted as an industry wunderkind.

Peng was one of the youngest and wealthiest figures in China’s flourishing solar power sector, and LDK was for a brief period the world’s largest producer of photovoltaic multi-crystalline silicon. LDK was also the first company from Jiangxi province to be listed on a U.S. stock exchange, and the province’s second largest source of tax revenue.

The company’s ambitious high-debt growth model made LDK highly vulnerable to market vicissitudes, however, and the recent industry downturn may have done irreparable damage to the company’s prospects.

Despite the company’s woes, Peng has put on a confident front for both the media and investors, taking the stage earlier this month at a banquet for business partners and customers held in a five-star hotel in Shanghai’s financial district. In an interview with Nanfang Zhoumo, Peng dismissed the concerns of analysts by saying that “they have never seen a great company,” and compared LDK’s troubles to those encountered by Apple’s Steve Jobs a decade ago.

Peng has now pinned LDK’s hopes on the release of a new product — the M2 high-efficiency multi-crystalline silicon wafer, and has informed key lenders that customers are willing to pay a premium of over 10 percent for the new product. Although other industry figures, such as Hu Huifeng, senior deputy general manager of Taiwan’s Neo Solar Power, have come out in support of this claim, analysts believe that the company cannot overcome its current predicament with the release of a single new product, and that given the poor state of the market LDK will be unable to service even the interest payments on its debt.

The flamboyant Peng is certainly no stranger to controversy or crisis. His decision to invest in a 15,000 ton silicon factory was criticized heavily by LDK insiders as well as external observers. Departing senior personnel have complained about management problems within LDK, with many decrying Peng’s headstrong style, lack of prudence, and cavalier attitude toward the opinions of others. The company also faced financial difficulties at the end of 2009, when LDK’s Q3 asset-liability ratio hit 85.15 percent, and its total bank loans reached $1.403 billion. Those problems pale in comparison to the company’s current $6 billion debt burden, however.

Rumors reported by Nanfang Zhoumo also allege that LDK Solar has already filed for bankruptcy protection with the Jiangxi province government, but that the application was refused due to the size of the company and its importance for the provincial economy.

Lead image: Downturn via Shutterstock

Bankruptcy Fears for China's LDK Solar Due to Market Downturn | Renewable Energy News Article

 

[Ignited Mind]

China Medical Likely Headed For Bankruptcy


We think the end is near for China Medical Technologies (CMEDY), and that the gears are in motion for bondholders to file the company for an involuntary bankruptcy, in order to pursue the company's assets in China and try to achieve some sort of limited recovery for creditors. Given the lack of communications from the company since the missed coupon payments beginning in December 2011, bondholders have likely seen that negotiations are unlikely to bear fruit, and are therefore probably preparing a filing. My discussions with bondholders and research analysts indicate a lack of progress as well.

It has been nearly six months since the company first missed its coupon payment on December 15, 2011. It then missed another coupon payment on February 15, 2012. To date, the company has not filed an 6-K explaining why it missed its coupon payments. In fact, the company has not issued any 6-K filings or other relevant notices since its first missed payments. It did not inform investors when its independent director, Lawrence Crum, resigned. It did not inform investors when the stock was halted by NASDAQ, or de-listed to the pink sheets. It did not even appeal NASDAQ's decision to de-list the stock, unlike many other U.S.-listed Chinese companies that have seen their stocks halted.

The company has not filed a quarterly report for the quarter ended March 31, and has not provided any explanation for why it has not done so. Naturally, we're highly skeptical that the company will file a 20-F by its July 31st deadline, or will be able to pass its audit.

Standing ahead of the equity are $413 million face value of convertible notes (see here). When including accrued interest, the face value of notes is worth more than $420 million. If a theoretical restructuring were to occur, the bonds would have to be paid out at par plus accrued and default interest before equity holders would receive a dime. That said, we don't think an actual financial restructuring or debt-for-equity swap is in the works. Rather, bondholders will likely file the company for an involuntary bankruptcy in the Cayman Islands in order to begin attempting to pursue assets in China.

As of yesterday, the company's 6.25% and 4.00% convertible notes traded at 17.2 and 37.2, compared with a face value of 100, according to Bloomberg. These levels imply severe impairment; to put it another way, bondholders expect to receive no more than 17 and 37 cents for every dollar. If bondholders are that significantly impaired, equity holders are unlikely to recover anything. Bond prices have not risen since January, indicating that communications between the company and bondholders have been uneventful and lacking progress. Below is a price chart of the company's bonds:

(click to enlarge)

As we can see, bonds have traded in the 20 to 40 price range since the company's missed coupon payments. At this point, the more time bondholders wait before filing an involuntary bankruptcy, the more difficult it may become to pursue their asset claims in China. We've previously seen Chinese management attempt to transfer assets to related parties to put them out of the reach of foreign claim holders, with companies such as ChinaCast, Puda Coal or Sino-Environment.

When bondholders push China Medical into bankruptcy, we think the stock price will decline dramatically. We believe there is no value left in the equity, and a bankruptcy filing will likely provide the catalyst that will help the market recognize that.

The Company's Irrational Stock Price

CMEDY has inexplicably risen to $4.40 over the past few weeks, which ascribes an absurd market capitalization of $115 million (and an even more absurd $530mm million total debt + market capitalization valuation) to China Medical Technologies. We strongly believe this share price increase is merely one of those odd, irrational occurrences that transpire occasionally in pink sheets-listed equities, and that the fundamentals will soon catch up with the company's stock price. Specifically, the company will be involuntarily forced into bankruptcy, in our opinion, and the stock price will decline dramatically from current levels.

We're not sure whether the recent share price rise is from momentum buyers assigning undue credibility to the SC 13G disclosures of AER Advisers, short-covering, or some other fanciful reason. We don't care. CMEDY is likely to be pushed into involuntary bankruptcy by bondholders, and its stock price is likely to plummet when that happens. We can't fathom any realistic way equity holders will receive any fundamental value for their CMEDY shares in the future.

Disclosure: I am short CMEDY.PK.

Additional disclosure: I am short and own options on CMEDY.PK and stand to realize gains in the event that the price of the stock declines. To the best of my knowledge, all information in this article is accurate and reliable, but I present the information "as is". I will not necessarily update or supplement this article in the future. Following publication, I may transact in securities of the company covered herein.

China Medical Likely Headed For Bankruptcy - Seeking Alpha