........especially for those putting their faith in unknown companies of unknown value and unknown management in far-off unknown lands;


Times Online . April 18, 2007

Betex shares suspended after two senior staff arrested

Chinese lottery firm suspends sales of its software nationwide following police action
Robert Lindsay

Shares in Betex, the Aim-listed Chinese lottery scratchcard and gaming software operator founded by former banker Peter Greenhill, were suspended this afternoon after two of its senior staff were arrested by Chinese police and a third appeared to be on the run.

In a statement, Mr Greenhill said the company had suspended sales of the software product across China: "The Company has received information that two of the senior staff at its Beijing operation have been detained and that a further senior staff member is being sought by the Chinese police authorities in the province of Jilin."

He said the company was working with its legal advisers to try to obtain more information and was assisting the authorities wherever possible.

Betex said it believed the alleged illegal activity "relates to conduct by these individuals and does not call into question the legality of the Company's software product, or the conduct of the Company."

It added: "Owing to the uncertainty surrounding the situation, and the significance of these operations to the financial performance of the Company, the Company has requested a temporary suspension of trading in its shares on AIM pending clarification of the situation."

Betex's business is almost entirely dependent on the Chinese market. Its shares have collapsed from a high of 80p shortly after flotation a year ago, hit by fears over a clampdown on online gambling. They were suspended at 32.5p.

At the end of last year it unveiled a plan to begin selling lottery scratchcards in partnership with lottery authorities in Hebei province.

Scratchcards in China were a huge hit before being withdrawn during the 1990s after concerns over fraud.

------------------------------------



Be warned - for this will not be the last such company to disappear down the pan with your hard-earned loot!

"heads"   and   "sand"   come all too easily to mind !

FT (Capital markets) - Helen Thomas - May 30th

What are the real risks of a China stock market bust?


There were 385,000 new share trading accounts opened in china on Monday alone, taking the total past the 100m mark. The previous week the number of new accounts was about 1.5m. On Wednesday, Chinas benchmark index took another nosedive, closing down 6.5 per cent, after Beijing took its most decisive step yet to slow its runaway train of a stock market, tripling the stamp duty tax on share transactions. Even after the fall, that still leaves the index up around 50 per cent this year. But after the 9 per cent fall in the Shanghai Composite triggered falls in stock markets around the globe back in late February and early March, received wisdom is now that investor sentiment globally should be more resilient to the machinations of the notoriously volatile, and still relatively undeveloped, Chinese market.

What about the real economy? Would a serious plunge for Chinas toppy stock market have knock-on effects in its economy, with broader global repercussions? Presciently, Qing Wang and Denise Yam on Tuesday considered just that question at the Morgan Stanley Global Economic Forum. On examination of household and corporate exposure to the stock market, we conclude that the negative wealth effect on consumption would be moderate and financing conditions for corporate investments would be unlikely to deteriorate significantly should the A-share market plunge by 30% from current levels, they argue. We believe that the direct economic impact would be manageable in the event of such a burst. Hence, the fear of a complete economic meltdown in China as a result of a potential burst of the stock market bubble is unwarranted at the current juncture, in our view. Nevertheless, a major correction of the A-share market could well result in significant contagion to global markets, as seen during Februarys short-lived correction. However, to the extent that any such global sell-off were driven by concerns about a stock-market-correction-triggered-recession in Chinas real economy, it would likely prove overdone, in our view.

But theres a warning. They think that should the current trends continue the potential severity of the fallout from a stock market bust increases significantly. Should the value of households stock holdings double from current levels to 40-50% of GDP, the potential negative wealth effect on consumption would increase and the negative impact of a major stock market correction on consumption and overall growth would become more significant. More importantly, with potential returns from investing in the stock market substantially and persistently higher than those from traditional investment activity, not only households but also the corporate sector could be tempted to leverage up with money borrowed from the banks to invest in the stock market. That would leave the banks more exposed to the stock market, and the impact of a major correction magnified through the credit channels of the banking system.

South China Resources PLC
29 May 2007

South China Resources plc ('the Company')

Withdrawal from Danfeng Joint Venture



South China Resources plc today announces it has decided to terminate its
involvement in the Danfeng Project ('the Project') and the Joint Venture Company
established to develop the Project, the Shang Lou City Zhongbei Minerals and
Mining Development Company Ltd.

Although exploratory drilling conducted over the last 18 months has largely
confirmed the presence of copper mineralisation, further to continued analysis
of the drilling to date, the Board believes that the Project unfortunately does
not meet the development criteria of the Company in terms of potential scale and
projected returns on a fully risked basis.

The Company is however continuing to make positive progress with respect to
advancing all its other business activities in Tibet and elsewhere in China.

The Company will update the market on its current activities and any other
future investments as and when they are contractually finalised.

------------------------------------------------

............and why are we not surprised ????

China's Stocks Post Record Drop; Extend Rout Past $350 Billion

By Zhang Shidong

June 4 (Bloomberg) -- China's key stock index plunged by a record number of points after the government's main securities daily signaled officials won't try to halt a slump that's erased more than $350 billion of market value in four days.

The CSI 300 Index dropped 292.52, or 7.7 percent, to close at 3511.43. The measure, which doubled in the past six months, has plunged 16 percent from its May 29 peak after the government tripled the tax on share trades to 0.3 percent.

The speed that stock prices soared by was ``extremely unusual'' and highlighted ``structural bubbles'' in the market, the state-owned China Securities Journal wrote in an editorial.

More than half of the stocks included in the CSI 300 plunged by the 10 percent daily limit, including Huaneng Power International Inc., the nation's largest electricity producer, and Air China Ltd., the biggest international carrier.

``There's panic selling,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which manages about $517 million. ``Investors are convinced the government won't do anything to support the market.''


Read full article

Thousand-point crash warning for Footsie !!!

Read full article





Morgan Stanley issues triple sell warning on equities !!!!

Read full article





Bond turmoil raises rate rise fears !!!!

Read full article





BOE May Need to Move Faster on `Sticky' Inflation

Read full article





Stocks sell as dealers seek safe havens

Read full article







                           ..............ever get that feeling the roof is about to fall in ??

et
;-)

http://business.timesonline.co.uk/tol/business/economics/article1905841.ece

zsscrooge
here's a considered view of your approach to investing
you're an ostrich with your head firmly stuck in the sand

Fed chief reignites 'stagflation' fears !!!

Read full article

...if the market begins to price in odds of a Fed rate increase, bond yields could go higher -- perhaps to 5.5%

Read full article

Storm clouds are gathering !!!

Read full article

you'll be right eventually

Financial markets are poised for another turbulent week with the risk of further aggressive selling

Read full article





The whiff of panic is in the air as equity strategists - the experts who predict market movements - say there are more falls on the way.

Read full article





Global investors look set for another nervous few days

Read full article

Treasury Bulls Routed as Dealers See Rising Yields, No Rate Cut

Read full article

Independent - 15 July 2007

Profit warnings at highest level since dot-com crash -By Andrew Murray-Watson

Profit warnings among the UK's listed companies are running at the highest level since the dot-com crash, adding to growing fears that the economy is weakening. Research to be issued tomorrow by Ernst & Young reveals that in the first half of 2007, 191 profit warnings were issued by UK-quoted companies, 13 per cent up on the first half of 2006, which saw 169 profit warnings.

A "shortfall in sales" was blamed for the warnings by 43 per cent of the companies, while 22 per cent cited "difficult trading conditions" and 17 per cent gave "delayed or discontinued contracts" as their primary reason for failing to meet market expectations. Keith McGregor, corporate restructuring partner at E&Y, said: "We are a long way from the economic climate at the start of 2001 that saw more than 230 profit warnings.

Nevertheless, the 191 profit warnings are a reminder that segments of UK plc are struggling. Expectations that interest rates will remain elevated for some time have added weight to a plethora of warnings against casual lending tendencies and complex debt instruments."

The highest warning sectors were software and computer services with 17, support services with 12, and general retail 10. The high-street sector had double the number this quarter, compared to the second quarter of 2006.

HI e t-I WONDER IF YOU ARE SHORT ON F.T/////////////////////////////

I guess you don't need me to ask "who told you so??" - so I won't.

This is a long term business. The MMs don't make their living from long-term wise guys - but from those light-headed panicky types who try to cut and run at the first sign of volitility, often leaving a percentage behind.

Next week will be the time to start mopping up.