—- By Jiang Ziyao Hedge Investment Management Co., Ltd. Guangxi

Subprime crisis, the investment banking crisis in the U.S. interest, regardless of whether they meet the interests of the people in the world.

Over the past few years, the U.S. government because of the need to repay foreign debt, condone the dollar. International Bulk pricing linked with the U.S. dollar, which is why oil, gold, grain prices rose sharply because, I believe everyone was impressed by the price rise. U.S. investment bank (of course, many hedge funds) With no idea of the connivance of the government willfully lift prices, earned wealth.

The U.S. government regardless of this, and why? First, the dollar depreciation in the U.S. interest, maturity of the bonds may reduce the pay back the money. Secondly, the output to the world through the depreciation of the dollar inflation, the pressure to reduce debt. Third, the U.S. investment banks and the U.S. government are having an affair, a lot of things the government came forward inconvenience, but under the banner name of Minying public companies become very popular. And so on.

Well, recently made a large investment bank firm commodity futures why a lot of fishing just after the face of subprime crisis? Have been closed down? Final consequences?

My answer is, though rest assured, the Yankees will not be finished. Because all this is consistent with U.S. interests, regardless of whether they are people of the world’s interests. Which is not fully operational practices can be summarized as follows:

First: the investment bank underwriting the U.S. federal and state governments in addition to the T-bond issuance and state debt, there are a lot of bonds issued by investment banks. The investment bank by buying comprador bureaucratic countries, to use his country’s foreign exchange reserves to buy Yankee bonds. Repay when the bond matures, Yankees on the use of the dollar, less pay back the money Repudiation.

Second: The government put pressure on him to interfere in other countries monetary policy and exchange rates. 80 Japan’s economy since the United States to put pressure on the Japanese government to allow the yen appreciates sharply, thereby defeat the Japanese economy.

Third, now the subprime crisis. CIC investment bank is not buying it? Japan is not buying it?
Saudi Arabia not have bought it? Singapore is not buying it? More countries to buy more shares to sell, the better. After the U.S. government is to use policies and messages, such as subordinated debt, such as raising interest rates, such as regulation, such as for investment banks into commercial banks and so suppress the transition of these investment-banking firm. The final goal is always to let other interests are involved, is to make the shareholders can not afford to look at the hands of the national investment bank devalued the company’s shares shrink, or even lose everything (ie delisting), and let out the policies of these countries participate in this “bailout . ” Said that rescue, in fact, took out money to Americans. Clever, right? After the Americans to borrow money, some way to late to pay back the money, little pay back the money, do not pay back the money, most never get that, after borrowing money, but also creditors to give them money!

After few years, the use of political advantage, in other countries in the rally, said that these countries worthless waste of taxpayers money to buy the investment bank’s stock. The rulers of these countries forced by public pressure, many will own flesh. Or less at a loss for these countries, wanted a way to investment banks in their own country’s interests.

Finally, the Americans will not allow such investment banking firm completely finished, because these American companies finished, then Yankees also put their own share to accompany inside. Therefore, they either let these corporate restructuring, transformation, or injected, Which investment bank finished? Are the acquisition or merger, even with no access to bankruptcy protection proceedings. They let these companies operate so back and forth repeatedly, so the dollar can be repeated with the people of the world to come and play.

But then, the U.S. Government to U.S. interests, this is the fundamental function of government in line with American tradition and thinking. Their two basic points that Serve the
people, for the
people. This is understandable light, because their government to perform its functions. But I wonder when the U.S. government if the two basic points from the Serve the US.
people, for the US. people into Serve the world people, for the world
people, then that communism is not far.

Controlling shareholders of listed companies and the credibility of the stock market has been the focus of the parties involved, through 2007, the special corporate governance listing activities in the relevant departments under the supervision of an iron hand, most companies or controlling shareholders can fulfill the original ban, dividends, asset injection, the overall market, industry and other related commitments ban, but a small number of listed companies or controlling shareholders of the expense of integrity is still home, as the commitment to child’s play, repeated breach of contract.

With the passing bell in 2007, China Aluminum investors last hope dashed. Because, as central enterprises listed company Chalco and they opened a full joke, the 8 months prior to the end of the 2007 acquisition of Lanzhou Aluminum Co., Ltd. aluminum Citylink business commitments to fulfill, and no expressed any regret.

Aluminum Corporation of China on April 30 last year, the Shanghai Stock Exchange, prior to April 18, Chalco issued “on the avoidance of competition with the supplementary letter of commitment”, promised before the end of 2007 the acquisition of Lanzhou Aluminum Co., Citylink responsibility for the company’s primary aluminum business, in A-share listed company within one year of settlement and Tongchuan Xinguang Aluminum Co., peer competition, after the company issued A shares choose the integration of Baotou Aluminum’s aluminum business.

Public information, Liancheng Aluminum, Tongchuan Xinguang and Baotou Aluminum Aluminum is the controlling shareholder in the aluminum business, aluminum companies engaged in the main subordinate enterprises, there is the same with the Chinese aluminum industry competition. Because of this, the Chinese aluminum industry in the prospectus will be committed to a certain period of time the company integrated the above three primary aluminum business. Although Chalco in December 2007 to fulfill the integration of Baotou Aluminum to choose the primary aluminum business commitments, but the acquisition of Alcoa’s commitment to Citylink have not be honored.

It is understood that Citylink main aluminum smelting aluminum in 2006, 270,000 tons of primary aluminum capacity, output 257,500 tons, and Baotou Aluminum, Liancheng Aluminum and Tongchuan Xinguang total capacity of 732,000 tons of primary aluminum business, with annual output in 2006 651,500 tons. As of December 31, 2006, net assets of 1.118 billion yuan Liancheng Aluminum, 2006 sales revenue of 4.687 billion yuan, net profit of 317 million yuan. Alcoa completed the acquisition of Lin Shing, the Chinese aluminum production will be significantly positive.

Currently, aluminum breach of trust has caused great concern in Beijing Securities Regulatory Bureau, it was in December 2007 the company issued a rectification of corporate governance regulatory view that companies need to further address the actual control between shareholders and peer competition. Investors said the United States, will consider the case of prosecution of Ping An of China Aluminum Industry, to compensate investors for losses.

In the regulatory supervision, the Chinese aluminum December 27, 2007, said the current company and in negotiating with the aluminum company Alcoa aluminum Citylink business and part of the aluminum business assets of integration solutions. But when the purchase could be completed, no further commitment to Chinese Aluminum Industry.

China’s National Development and Reform Commission (National
Development and Reform
Commission) Friday announced that, to allow overseas investors to invest in China’s power transmission network monopoly of state-owned enterprises in China’s history, this power came to an end.

Development and Reform Commission said in a statement on its Web site, which was effective on December 1 the policy to allow overseas investors to invest in China power grid construction and management.

This policy shows that the Chinese government intends to attract foreign investment for its long lost in the aging transmission network to modernize in order to eliminate the hidden danger widespread power outages.

According to IEA (International Energy
Agency) recently released “World Energy Outlook” report, from now to 2030, this time, China needs to power its total 1.51 trillion U.S. dollars into the funds.

But the new policy prohibits foreign investors hold a majority stake in the joint venture network, that the Chinese government still intends to maintain its control of the state power grid.

Last year, China added 100 million kilowatts of generating capacity.

———— By
Jiang Ziyao
Hedge Investment Management Co., Ltd. Guangxi

My company is writing, “Small & Medium Enterprises Marketing Cheats” and other business and management topics series of books, manuscripts will be expected to the first three months to complete. Domestic publishers are looking to discuss books published, asked after the publication of Xinhua Bookstore in domestic sales channels. Have intention to cooperate, contact the publisher of e-mail: hfgx2008@sina.com

——— July 20, 2009

(Continue)

7. customer base to fight the “edge ball”

For children before you sell, you can start trying to sell to young people; for primary and secondary schools before you sell, you can start trying to sell to students and colleges; for professional women before you sell, you can full-time wife began trying to sell to family, and so on. This may make your business experience unexpected results. Japanese comics industry, mainly for children just beginning to marketing, but because the “edge ball” strategy experienced less than the effect of intentions, and now many Japanese adults, including professional office workers, they like comic books, “Doraemon,” ” Holy warriors “,” Dragon Ball “,” Conan “and so on, which can not but say that” edge ball “strategy of success.

After the opening situation in the business, to do everything possible to find the next new profit growth point, this time “edge ball” strategy can often come in handy. By contrast, the venture into a relatively stable, if inert, not to develop new customer channels, this time out of your hardships Chuang business may face the risk of failure. United States Wang is a perfect negative example.

Immigrants from Shanghai Wang, smart extraordinary since childhood, has at Shanghai Jiaotong University, Harvard University, received a Ph.D. from Harvard in 1948. Soon, he invented a “magnetic core memory,” greatly increasing the storage capacity of the computer. In 1951, he founded Wang Laboratories. In 1956, he sold the magnetic core memory of the IBM patents, profit 400,000 U.S. dollars. Wang was not satisfied with the ambitious comfortable enjoyment, pursuit of the cause made him all these four hundred thousand U.S. dollars to support research. In 1964, he introduced new desktop computers with transistors made, and thus began the process of successful computer company Wang Laboratories.

Wang in the subsequent 20 years, because of constantly creating new and innovative move, so the cause of flourishing. Such as 1972, the company successfully developed the word processor semiconductors, two years later, it launched the second generation of this computer, as when the U.S. office equipment necessary. Massive investments in research work, the company products have emerged, and quickly occupied the market. This time, Wang companies in the production of several computers, small business computers, word processors and other office automation equipment, are walking in the forefront of the times. Wang venture company until then smooth sailing, can be entered during the pioneering days of the stable stage.

However, in the mid-60s, as the company business was very good initially, but then the boss Dr. Wang An ambitious, like the computer industry with IBM, a dominant male and female competition. Because Wang bent to compete with IBM in the business, while IBM has happens is a business machine for the main business of the company, not Wang led out of mindset to play the “edge ball” strategy and did not the computer as a tool for the future of the family into the thousands of families of people, but continue to believe that computers will be just a business device.

In the late ’80s, almost the same time with the terminally ill Wang, Wang companies as a series of major blunders, from flourishing to decline. To June 30, 1992, Wang’s year-end profit to 19 billion U.S. dollars, the amount of total revenue over the past four years, fell by 16.6 billion dollars. Meanwhile, Wang the company’s market value dropped from 5.6 billion less than 100 million U.S. dollars. 4 years ago, the heyday of Wang employees up to 3.15 million, reduced to 8,000. Wang as the company ten years ago the rise of magic generally, it went into decline at an alarming rate.

What makes a strong and prosperous young computer empire in just five to six years in crash out? Of course, the reasons are complex. None of them were “pushing boundaries” strategy is one of the problems. Wang into the stable in business, after establishing the business user-oriented, not the cheaper and the direction of multi-functional personal computer. When IBM and other companies committed to developing the occasion of the PC, Wang did not listen to subordinates advice, refused to develop such products. When the computer industry to a more open, more industrialization and standardization of the direction of development, Wang insists its the same old proprietary product line. Wang’s products are not only time to catch up with development is not compatible personal computers the computer of high tide, and Wang Laboratories lost valuable features and performance of the original. This high-tech computer and high-speed development of industry, new product development and the market will inevitably lead to a company from failure.

* Venture into the stable period, we must clear the characteristics of current customers, after careful examination of these properties (such as age, purchase motivation, career, etc.), a “edge ball” strategy, try to win more customers.

8. use the “one to many” advertising approach

Early publicity can not start spending money, those in newspapers, telephone yellow pages, television or radio advertising spend large sums of money certainly not be an appropriate. We can use low-cost, grassroots style advertising tips.

* collect e-mail address, and then using e-mail listserv to advertise.

* visit local popularity are concentrated BBS, posting publicity.

* QQ group of established industry, or QQ group for local users.

* for yourself and customize the advertising staff T-shirt, and his staff into a free flow of billboards.

There are many low cost advertising methods, we usually look after that side of the details can be found in this way often.

9. to other cities to enter the

Yes, yes, the business stabilized, to big, you have to expand to other cities to enter. But how do low-cost, low-input low-risk expansion, the success of your business and the key to effective risk aversion. We propose at this stage, entrepreneurs select partners to form alliances for the best. Because this time, coalition partners have been running off from the ground, already has the facade, human resources, sales channels and other inputs and resources in advance, you choose alliance partners in other cities, to avoid duplication of resources, these pre-investment for the venture saving valuable cash, but also effectively circumvented if business operations in other cities are not brought into open the risk.

Miss Lee East China, a clothing colleges after graduation, chose their own businesses at home in Hangzhou. She spent more than 70 thousand yuan purchase of an advanced embroidery machine, at home, clothing and hats customized embroidery patterns. At first, business is confined to young students, schools, clubs and some other people, then through the use of “pushing boundaries” strategy, and gradually developed into a high class hotel souvenir custom scarves, custom embroidery to the newlyweds wedding bedding, custom baby handkerchief to the young parents, etc. and so she ordered one after another 3 sets of computerized embroidery machines. In sum she received from the apparel trade under the embroidery factory orders followed a profit of a considerable sum of money, her business into the right track.

And she herself wondering, despite the current business profit is not bad, but now 4 sets of embroidery machines utilized, there is room for further use. Should find some more processing business, so the machine starts to improve, it can still make more money. But her own business at home, all 4 machines at home, even though the computer operations, but also need someone in the operation, he is not the time to find clients, how do?

Not far from Shanghai, Hangzhou, local consumer groups appear to be greater: the school for more young people prefer custom embroidery; luxury hotels more hotels need to customize embroidery products demand; have more company’s business users are willing to own logo embroidered work uniforms; have more apparel foreign trade company, can attract more outsourcing orders for embroidery. Miss Li wise choice with the Shanghai local advertising companies, business schools around the small gifts to cooperate with them to establish business alliances, to provide them with outsourcing. Gradually, the Shanghai market opened, and a greater volume of business in Hangzhou. Miss Lee has recently purchased 2 sets of embroidery machines, embroidery products, in order to save transportation costs, she is planning to embroidery factory in Hangzhou, the family moved to Shanghai, students family entrepreneurship flourished.

* early days, in alliance expand Zhang Shiyi choose the way, you can save cash management can avoid the risk of investment.

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China Investment Corporation (“CIC”), China’s Sinopec (600028.SH, 0386.HK, hereinafter referred to as “Sinopec”) as the preferred central injection of enterprises, to help the latter to expand overseas acquisitions.

It is understood that the SASAC and the vote cast for the central enterprises to “go out” to provide financial support to reach a cooperation agreement, including the common choice of the direction of the central enterprises and overseas investment and financing projects for funding in the betting. Source before “First Financial Daily” said, in the betting choice in the central enterprises owned Sinopec, Sinopec cast has had numerous talks.

It is reported that Sinopec cast on the capital injection program has not yet finalized, is the investment more feasible with the parent company China Petrochemical Corporation Sinopec joint venture mining and exploration projects abroad, and then injected into Sinopec.

Sinopec executives said earlier that does not rule out the possibility of increased upstream investment, or even the acquisition of overseas oil assets of the parent company. Sinopec’s future strategy is to continue to push forward on the middle and lower business integration, expansion of reserves through exploration, so that the upstream business is no longer a weakness.

Whether it is about 5 billion U.S. dollars will buy Morgan Stanley issued convertible equity units, or to be injected Sinopec’s overseas acquisitions, are reflected in the cast of “joint investment” idea – first by injection into a financial investor and then proceed to project-based joint venture. Joint investment in a mature market practice known as “club deals”, that is formed through the acquisition of stake in the form of investment objectives of enterprise groups. The shares voted by the news of the impact of Morgan Stanley closed at 50.08 U.S. dollars, up 4.18%.

CIC chairman Lou Jiwei said in public, in the investment market as a stable platform, playing the role of market stability. Lou Jiwei that many large financial institutions, credit crisis dimensional problems, a number of sovereign wealth funds are injected to the financial markets, stability in the financial markets play an important role. The source said that the future stability in the investment function of financial markets, the market stability initiative to have a company of channels.

Sinopec A shares and H shares yesterday closed at 23.04 yuan, respectively, and 11.32 Hong Kong dollars, or 6.82%, respectively, and 1.62%