China's Yuan

China's central bank will further control liquidity and improve the currency exchange mechanism in 2008 to ``adjust overall demand and improve the balance of international payments,'' Governor Zhou Xiaochuan said in a New Year's message on the bank's Web site on Dec. 29.( http://www.pbc.gov.cn/english/)(http://en.wikipedia.org/wiki/Zhou_Xiaochuan)

The yuan's appreciation ``is likely to continue this year'' as a response to ``both domestic and external pressure.''

The Chinese government needs ``to be more aggressive on monetary tightening'' to address ``the rising inflationary pressure and the risk of overheating,''

The yuan rose 0.15 percent to 7.2934 per dollar as of 5:30 p.m. in Shanghai, according to the China Foreign Exchange Trade System. It touched 7.2930 per dollar, the strongest since the end of a dollar peg.The peg to the dollar was scrapped in July 2005.

China's inflation rate accelerated to an 11-year high in November, fueled by export-led economic expansion. The nation's trade surplus, which rose 52 percent in the 11 months through November to $238.1 billion, has driven foreign-exchange reserves to a record $1.46 trillion, making it difficult for the government to slow growth and tame asset-price inflation.

Tracking Shanghai Stock Exchange Composite.

Looks like China's Stock has stabilized and looks set for the Chinese lunar year and Olympiad recovery.

The past few days of white body bullish spinning doji's with votality augurs well for trading opportunities.

The "ang pow" money and dragon-dance is on the way.http://en.wikipedia.org/wiki/Red_packet

Stock Watch:

China Shenghuo Pharmaceutical Holdings Inc.(KUN)

52wk high: 19.75
52wk low: 3.10
EPS: 0.22
PE: 34.40
Dividend: N/A
Yield:N/A
Market Cap: 140.71 m
Exchange: AMX

IPO:Thursday, June 14.--- priced at $3.50.

In terms of business, China Shenghuo was formed in 1995. It combines traditional Chinese medicines with western pharmacology, building pharmaceutical, nutritional and cosmetic product lines around Panax notoginseng, a form of ginseng that invigorates and builds blood. A full 80% of its revenues come from Xuesaitong Soft Capsules, which are given to treat cardiovascular and cerebrovascular disease. It has a total of 31 state-approved medications. Almost all of its sales are in China, though small amounts of its drugs are exported to other countries in Asia.

China Automotive Systems Inc. (CAAS)

52wk high: 12.80

52wk low: 5.72
EPS: 0.34
PE: 22.80
Dividend: N/A
Yield:N/A
Market Cap: 186.65 m
Exchange: NSC

A power-steering component and systems supplier, signed its first aftermarket supply contract in the U.S. with aftermarket supplier Dorman Products Inc. (formerly R&B ). CAAS has been working with them since May 2006 to develop two power steering models., one of which is to be used as a replacement power steering product for the Volvo S40 sedan.
CAAS is in ongpoing talks with Hubei Wanlong Investment Co. to purchase an additional 36.55 stake in its Parts division. It presently owns a 44.5% stake and would give it controlling interest in the Co. Henglong's $54.5 million in sales was equal to 57% of CAAS sales. A deal could close in the first quarter.