SAFE to Invest in BP?

Today we learn that a “Chinese entity” has purchased a roughly 1% equity stake in BP (worth US$2 billion) in BP, one of the world’s largest energy companies (concentrated in oil, of course). On one hand, this isn’t much of a surprise: last September, China launched a US$200 billion investment fund (CIC) in hope of…

Tiny Bubbles

Let my contribution to the expanding body of “Chinese Economic Bubble” literature/postings be the following observation: commercial rents on Shanghai’s Hengshan Road have – over the last twelve weeks – quadrupled and even quintupled in value, forcing vacancies that are unlikely to be filled at the new prices. For those who don’t know it (most…

Price Fix … Or Face the Consequences!

Over the last couple of years I’ve had countless conversations with foreigners who do business with Chinese state-owned monopolies, and – during most of those conversations – we’ve eventually reached a point where the foreigner says something like this: “They’re still better party hacks than businessmen.” I’ve been inclined to believe that, generally, but my…

Trade Show Babylon

One highly reflective refrigerator door; two faces of a Shanghai trade show. A special thanks to the good folks at Enodis China who opened their Hotelex Shanghai booth to me. [And a promise to my readers, that I will have a more substantive (penitent?) post within the next 24 hours.]