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The Chinese government has approved an application from Walt Disney to build a theme park in Shanghai, paving the way for the media company to establish a foothold in mainland China. With an estimated cost of US$3.5B, the park would be one of the biggest investments in China by an international company. “China is one of the most dynamic, exciting and important countries in the world, and this approval marks a very significant milestone for the Walt Disney company in mainland China,” said Bob Iger, chief executive. Disney already has a theme park in Hong Kong but has long coveted a park in Shanghai, viewing the city as a perfect entry point for the mainland Chinese market. It has been in talks with officials in China for a decade but made its first official application to construct a park this year. A Shanghai park would raise the company’s profile in China, increasing its ability to cross promote and sell TV programming, films and consumer products that are based on its library of characters. Read more

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HK shares rally for 5th month, up 3% on week. Both markets recorded another month of hefty gains in July, the seventh successive monthly gain for Shanghai and the fifth winning month for Hong Kong, fuelled by positive earnings momentum and analyst upgrades. In the absence of a major disappointment in US economic data due next week, or in corporate earnings that will continue to trickle in through August, analysts expect the stock markets to continue their upward trajectory. China’s 4 trillion yuan (US$585.5B ) stimulus package, unprecedented lending growth and stabilising economy have helped to propel a more than doubling of the Shanghai index from last October’s two-year low and fuelled a 43 % surge in Hong Kong shares

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China’s stocks rose again last week driving the benchmark index to a fourth monthly advance, after Tsingtao Brewery Co. reported higher profit and copper prices jumped. “With the economy in recovery, we will see a turnaround in corporate earnings,” said Li Jun, a strategist at Central China Securities Holdings Co. in Shanghai. Still, he only expects a pick up in profits in the fourth quarter. The Shanghai Composite Index which tracks the bigger of China’s exchanges rose 7.75, or 0.3%, to 2,475.94. The measure added 4.4% in April, as record new lending and expectation that growth will be revived drove up share prices. The Shanghai Composite has jumped 36% so far in 2009; it is the 2nd best performer among 90 global gauges tracked by Bloomberg. The measure has advanced on optimism a 4 trillion Yuan (US$585B) stimulus package and record new loans will prevent a slump in the world’s 3rd largest economy.

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The world’s largest money managers say China’s steepest monthly stock gain in more than a year shows the fastest-growing major economy will avert a recession. The Shanghai Composite Index is the broadest measure of shares traded on the Mainland posted a 9.3% gain in January, the best among the world’s 10 biggest markets. Last year, the index fell 65 percent, the worst since at least 1996, according to data compiled by Bloomberg. Chinese shares rebounded after the central bank lowered interest rates five times since September and the government announced a US$585B stimulus plan. China’s economy is expected to grow near 8% this year even after expanding 6.8% in Y 2008 Q-4, the slowest pace since December 2001. China’s central government is pressuring state owned banks to increase lending as it unveiled the 4 trillion yuan stimulus package, reduced export taxes and agreed to provide support for 10 industries, through tax cuts and subsidies for steel and autos.

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