This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

How Did Wal-Mart Crack Open China?

How so? The New York Times describes several such "princeling" arrangements, including the following:

Animation. DreamWorks' $330 animation studio joint venture with "Jiang Mianheng, the 61-year-old son of Jiang Zemin, the former Communist Party leader,"
Satellites. Asia's potentially "largest satellite communications operator" is run by Wen Yunsong, the son of Prime Minister Wen Jiabao,"
Security Scanners. A "state-controlled monopoly on security scanners used in China's airports, shipping ports and subway stations," was once managed by Hu Haifeng, son of President Hu Jintao,"
Power Generation.  The chairwoman and chief executive of China Power International, a "big five power generating" company in China, is Li Xiaolin, daughter of former prime minister, Li Peng."

It's no secret that a major Wal-Mart expansion announced in 2005, sprang from a joint venture with a company known to have close ties to Chinese officials. And in 2009, the head of the company was forced to resign after a trading scandal.

Back in January 2005, Reuters reported that Wal-Mart had established a joint venture with Citic Pacific, a Hong Kong-based holding company with interests in "toll roads, power plants and stakes in Cathay Pacific Airways and rival Dragonair."

Wal-Mart would be able to avoid spending money on real estate while opening "hundreds of stores" by 2012. Wal-Mart held 65% of the venture involving at least $250 million. Managing director, Henry Fan told Reuters, "We have a lot of property projects in China and we will welcome Wal-Mart as our anchor tenant." 

Citic Pacific's history reveals that it's just another princeling arrangement. Founded in 1990, Citic Pacific "presided over the property-to-steel conglomerate from a gleaming office tower overlooking Hong Kong's Victoria Harbour," according to Reuters.

The Shanghai-born, Larry Yung, took control of the firm founded by his father, Rong Yiren, a vice president of China, between 1993 and 1998. As Reuters noted, Yung was "dubbed the red capitalist like his father the family enjoyed deep-rooted ties to China's Communist leaders fostered over half a century."

2 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs