SHANGHAI | By Qi Bing via Caixin | The smooth opening of the Hu-Gang Tong, the Shanghai-Hong Kong bourse linkage, marked the entrance of the Chinese capital market to a new era and was a major global event. It follows on progress China has made in opening up its markets after joining the World Trade Organization, and will hopefully greatly boost the country’s economic and social reforms in the years to come.
MADRID | By The Corner | Corporate earnings season (2Q14) is about to start in Wall Street, with Alcoa opening the way and with the major American market indexes –Dow Jones and S&P 500- at maximum levels. The macroeconomic perspectives of the country will also help, especially after having overcome the impact of the weather on the GDP, as well as the certainty that the Western central banks are committed to support the economic recovery. Thus, investors expect that the official interest rates will keep at very low levels in relative historical terms for a long period of time.
Chinese Internet companies such as Weibo, Baidu and Tencent are sophisticating their business models to offer innovative products and services. This crucial change brings to the brands made in China greater value at a global level as they go public on the New York Stock Exchange.
Mid-April the largest Chinese micro blogging service, Weibo, raised $286m in its Nasdaq debut. Within weeks, Alibaba, the largest e-commerce platform in the world is expected to complete probably the biggest IPO in history. These are some of the main players of China’s booming Internet economy, which saw revenues of 600.41 billion Yuan in 2013, and it is expected to reach 1.72315 trillion Yuan in 2017. But censorship and strict regulations are hindering the growth of the country’s cyber players.