How top businessfinance publications cover China's economy

1
How top business-finance publications cover
China's economy

• Presented by
• Matt Ho
• February 19, 2003

2
No. of reports in pace with the momemtum of
economic reform
3
Source of information

• American corporations moves and experiences
• International organizations researches
• Politics
• Naked-eye observation
• Government announcements
• Local Chinese individuals

4
Major themes and issues

• Really serious about departing from Marxism?
• Foreign investors got cheated
• Huge market
• Priracy
• Shanghai
• WTO
• World factory / deflation exporter

5
Whos doing the best job

• Difficult to single out a winner
• Criteria may include
• Level of detail and timeliness
• Help identifying market potential, competition,
  souces of supply, etc.
• Political coverage

6
Case Study Qualified Foreign Institutional
Investors (QFII) Scheme

• China announced on November 7, 2002 that it will
  allow select foreign investors to buy and sell
  domestic shares and bonds for the first time.
• QFII signified the ending of the closed-door
  policy toward foreign investment in China's
  capital markets.

7
When QFII first appeared

• Opinion on China should open up her capital
  account by means of QFII is appeared in Hong Kong
  Economic Times in August 1999.
• May 22, 2000 Financial Times first reported
  China Securities Regulatory Commission officials
  intent to liberalise the capital market through
  adopting QFII.
• Sept. 9, 2000 The Economist reported China
  contemplating of overhauling her financial
  services industry, including introducing QFII.

8
Follow-up reports on QFII

• June 27, 2000 SCMP interviewed a CSRC official
  on QFII
• Nov 6, 2001 FT quoted Reuters and Shanghai
  Securities that China would allow foreign
  investors limited access to Chinas stockmarket
  through funds.

9
At the dawn of official announcement

• October 11, 2002 SCMP quoted from an investment
  bank source that QFII may be launched in a month.
• October 29, 2002 FT reported CSRC Chairman with
  several A-share company heads appeared in a
  Singapore investment conference.

10
American newspapers wake up

• Nov 5, 2002 AWSJ first time reported on QFII!

11
American magazine joins the party

• Nov 14, 2002 The Economist briefly reported on
  the promulgation of QFII.
• Nov 21, 2002 FEER first time reported on QFII.
• Dec 5, 2002 FEER published a commentators
  article about QFII.
• No coverage on QFII retreivable from New York
  Times and Business Week.