From Smith's "wealth Of Nations" At The Beginning

By Author: candytrue
Total Articles: 18
Comment this article

From Smith's "Wealth of Nations" at the beginning, the core proposition of economics is the study of the nature and causes of national wealth of research, which explore the origin of the problem of national prosperity. Country's prosperity is inseparable from business. In 2011, China entered the "Fortune" 500 list has reached 61, China has laid a foundation of wealth and prosperity, but if these companies make money to explore the logic: that by making money, and earn any money, but it is one pair transformation of China, a topic of great practical significance. There are three things to make money with the logic of the Chinese enterprises
The first thing is the latest top 500 Chinese enterprises. September 3, 2011 -4, China World Business Summit was held in Chengdu, China Top 500 Enterprises 2011 released. In my opinion, this list of my most concern is that is: the 10 most profitable Fortune 500 companies, all of the financial sector and state-owned monopoly state-owned enterprises accounted for, namely ICBC, Construction Bank, Bank of China, PetroChina, the Agricultural Bank CNOOC, China Mobile, Sinopec, Bank of Communications ...
... and CITIC Group, the 10 companies reached 866.843 billion yuan and profits, accounted for 500 total profit of 40%. The list of 184 private enterprises of the total profit is not the most profitable state-owned enterprises and 10 half of the total. 500 top ten rely on China to make money? Whether it is financial, or oil, telecommunications, are no doubt a monopoly, which 500 and 2011 profits of U.S. companies ranked the top 10 quite a number of technology-intensive, such as pharmaceuticals, computers and office equipment, computer software industry and other sharp contrast. According to this example, we may just braved the risk of being challenged that the profits of Chinese enterprises, a considerable part from the "monopoly."
The second thing is the first half of 2011 listed companies in China mid-year report. A total of 2244 cities of the first half of the total listed companies earned net profit of 996.912 billion yuan, of which Nearly nine companies achieve profitability, 96 profit over $ 1 billion for the 2011 mid-term assessment of listed companies turn in a good report card. However, if the in-depth analysis, found that many listed companies, behind the beautiful performance, but it is worth pondering the "logic of profit." Based on performance and the announcement shows that in the first half, many of the listed companies interested in bank finance and entrusted loans, which has nothing to do with the company's main business is to conduct a beautiful mid-year report of listed companies contribute a lot of money.
For example, in financial markets, Conch Cement, the total amount of 40 billion yuan of operating funds to invest in trust and financial products, while China's major equipment manufacturing industry, leading enterprises Shaanxi drum there is also spent 2.65 billion yuan total purchase of financial products; again see "entrusted loans", as of August 24, Shanghai and Shenzhen 107 reports on the announcement, involving 52 companies, the cumulative loan amount over $ 16 billion, an increase of nearly 38%. Those entrusted loans, the lowest annual interest rate of 12%, the highest rate of 21.6%. The entrusted loan to contribute to the profits of listed companies is surprising high. For example, listed companies Qianjiangshenghua entrusted loans totaling 140 million, interest income of up to 16.8 million yuan, more than one quarter of 13.69 million yuan of net profit is higher. Wuhan Jianmin entrusted loans and $ 150 million, annual interest rate of 20% a year interest income of 3,000 million, while its net profit during the first half, but 36.2 million yuan. The most typical is the ST wave, this "mobile phone in the aircraft," the company was once the main business has been a series of losses, but the Daily News revealed that its 2011 net profit of 35.1458 million yuan, of which the commissioned loans gains for the 17.7383 million yuan, accounting for the proportion of net profit up 50.47%.
If we say that 500 enterprises in China a considerable portion of the profits from the monopoly, then, is not it also be said again, sweeping, a considerable portion of China's listed companies profit from the bank ought finance, entrusted loans "credit arbitrage "the lazy way. August 10, "Securities Times" a flow of funds on bank credit report can actually be confirmed from the side of this argument. The report said the CBRC Chairman Liu situation analysis in the third quarter at the CBRC, said some 30,000 billion yuan in bank credit flows have become increasingly popular private lending market has led to many reports of media attention. Strange that the August 11, CBRC official on the line on this "rumor." But it is undeniable that some bank credit funds through various means, into the current annualized yield high private lending market is an indisputable fact.
The third thing, and real estate related. Last year, media reports, many Chinese enterprises, especially giant home appliance industry, Qingdao, Haier, Gree, Konka, etc., have been involved in real estate. Exhibitions in a meeting, Hisense and Haier have breath launched more than 10 properties across the country, and Gree into the real estate less than a year, to achieve in the real estate business revenues over $ 500 million increase over the previous year 913.5%. The Shenzhen Konka Group, also on July 5 last year to 342 million price competition to obtain the full Wong Road, Zhouzhuang Town, Kunshan City, south block, enter the real estate the official blew the horn. Even in the stringent regulation of this context, is actually not the real estate industry, investment in real estate business did not cool down significantly, while at the same time, according to the author who conducted the actual research area in Jiangsu and Zhejiang, more than 70% of the civil choose to invest in real estate and investment capital, while only less than 5% of people choose to engage in manufacturing, and the 1990s that private capital investment in industrial competing in stark contrast to the situation.
Alright, you know which the majority of the items offered on the internet tend to be affordable. Nevertheless, Accurate Faith true religion aren’t grime inexpensive. A few producers could possibly get aside along with generating phony Accurate Faith true religion mens simply because purchasers aren’t as well mindful regarding really small particulars.Nevertheless, with regard to low-rise denim jeans, you have to be mindful they shouldn’t truss; Nevertheless, are you aware which not every Accurate Faith men’s true religion sale tend to be genuine?