Report archive
14 June 2012
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Big questions on creditThe Big Call
Making money from waste
Waste management has been a laggard in China’s rapid development but now forces are aligning to boost prospects for the sector
Consumer China
Dairy – a question of trust
Chinese dairy firms have regrouped following the 2008 melamine crisis and posted stellar earnings growth in 2011, but a renewed scandal involving leading dairy maker Mengniu has highlighted how brittle consumer trust in the sector remains
Yili – brand strength to consolidate its lead
Yili’s strong sales of high-end products and high-profile marketing campaigns should help it consolidate its position as China’s leading dairy producer by revenue.
China Modern Dairy – milking government subsidies
China’s largest dairy-farm operator will continue to benefit from government support and rising raw-milk prices, but its fate remains tied to troubled market leader Mengniu’s
Bright Dairy – seeking pastures new
By tapping into overseas resources, including Bulgarian yoghurt culture and New Zealand milk powder, Bright is driving sales in milk products.
Mengniu Dairy – another tough year
Mengniu faces a challenge to rebuild its reputation following yet another food safety scandal and an unexpected management reshuffle
Rural China
New model farmers
Better trained, professional farmers will help sustain China’s rural boom
Pig farming losses dent rural wealth in May
The pig-to-feed ratio fell below break-even point for the first time in 23 months in May, dragging down China Confidential's Rural Wealth Index to 52.6 despite a rebound in rural vehicle sales.
Financial China
Trusts – a signal of disguised distress
A boom in trust financing is not all it may seem – we estimate that 70-80% of trust credit in 1Q12 was used to roll over old debts rather than invested in new projects
Selected financial charts
A selection of key financial data over the past fortnight
Capital Intensive China
Property developers push prices back up
A recovery in property demand, due in part to a host of local government initiatives, has prompted some developers to raise property prices after months of discounting
Getting back on track
Light rail and metro systems promise considerable business for China’s railway-equipment companies, while the high-speed rail buildout is also likely to resume in 2H12
Best of Chinese Commentators
Band adjustment sparks rate debate
China's first rate cut in three years and the accompanying widening of interest rate bands has triggered debate as to the pace of interest-rate reform.
IPO plans hint at nuclear power resumption
The announcement by a state-owned nuclear power plant that it is seeking to list on domestic stock markets has heightened speculation that Beijing is poised to resume the approval of new nuclear power plants that have been suspended since the Fukushima disaster in March 2011
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