Academic essay writing
Sunday, November 3, 2019
USA-Census 2010 Essay Example | Topics and Well Written Essays - 500 words
USA-Census 2010 - Essay Example es have added new sets of questions such as nativity and industry as well as questions about occupations, military service, income, education and other important information. And so, besides its original mandate of providing data to be used in congressional apportionment and redistricting, it now collects information for organizations and individuals who make decisions and policies in a wide range of issues. These issues are usually about matters of public relevance including health and education, transportation planning, housing, community service, welfare, economic strategies, among others. The US Census Bureauââ¬â¢s website displays the questions in the 2010 Census form. If it would not be modified, the form would be considered the shortest in the Census history. (The Census Form 2010) It would not use the previous forms and, instead, only 10 questions will be asked. These would include the personââ¬â¢s name, background, house, family and ethnicity. The census form will be sent through mail to be returned once it is filled. The 2010 Census is important for several reasons. Again, it determines the correct representation of Americans in the House of Representatives especially in the coming 2012 elections. Then, the data collected would also help the government allocate the $400 billion dollars of federal funding released each year. (Groves 2010) Because of the Census, this fund is going to be appropriately allocated on infrastructure (i.e. roads, bridges), welfare services (i.e. hospitals, job training centers, schools, senior centers), as well as other emergency services. Participation in the 2010 Census is vital to the US national interest. The US government would not be able to function well because the outdated Census information would make it difficult to: 1) fund projects that are most needed; and, 2) support community decisions about their own future. This is the reason why taking the census is mandatory. Section 6 of the Census Act provides that, ââ¬Å"each
Friday, November 1, 2019
American labor system Essay Example | Topics and Well Written Essays - 1500 words
American labor system - Essay Example Thus, laborers are actually the real workers and builders who are at the back of every successful industry and organization. The origin of this occupation can be dated back to the dawn of civilization when man had to subordinate high class individuals to win food and security. Today a laborer expects much more than this: salary, shelter, security, respect, acknwoledgement, comfortability and assurance. Though these ideals are appreciated by all, they are found quite rare even in the developed and civilized countries as America (Kirkegaard, 2007). Struggling against its prior notority of ââ¬Ëslave laborââ¬â¢ and ââ¬Ëchild laborââ¬â¢, this state has still a long way to go to get an ideal life for laborers and workers. Hundreds of unions and movements raising voices for the rights, demands and needs of the common laborers are emerging and actively working in United States of America, but still the condition of laborers is not much healthier (Hill, 1985). The most voiced comp lain against American labor system is the offering of lower wages and lesser facilities in return of much harder work and long working hours. These poor souls receive no sympathy from the side of employers and administrators, and they are treated rather like animals (Fletcher & Gapasin, 2008). They receive poor pay back for their tiring efforts and have to pay fine in the form of deduction from the expected salary for any mistake. They are deprived of basic rights related to humanly respect, empathy and acknowledgement, and their coordinators even regard them no more than mere machines who are not supposed to cater any emotions and feelings at all and whose function is just to run and produce. The working conditions are even not much better for the workers and laborers. Unhygenic environment, stinking smells of the materials and chemicals, over-crowded working places, deafening noises of the machineries, poorly lit working halls as well as long hours of duty are causing much distres s and frustrations among this community ("Inter-american labor system," 1975). Their problems are not catered and their complaints are not paid heed to. The economic crisis and the ever rising inflation throughout the world have also affected this community a lot and many of the workers are persuaded to opt for double shifts and part-time jobs, as a result of which their physical and mental healths are at stake. To fight against all these problems and to bridge the gap between the lower workers and the higher communities, American Labour Movement was started and laborer unions were formed (Dubofsky & Van Tine, 1987). This concept got its strength in the late nineteenth century, probably in 1866, and today it has got a much organized form. The workers of a factory select a representative among themselves by mutual consent who is considered to be responsible for conveying the messages and demands between the workers and the employers (Sheldon, 1947). The world politics has not spared it and today laborer union is regarded as a possible and most alarming threat against an industry. Other than holding strikes and causing troubles for the administrators, these representative groups are charged of demanding unfairly. According to the assisstant manager of a local firm, ââ¬Å"Sometimes the union leaders cross the legal lines and demand for more than their rights. Obviously, the company cannot encourage such attitude that often erects hurdles for progressâ⬠. On the other hand, the union representatives claim that these
Wednesday, October 30, 2019
Austism, Research Paper Example | Topics and Well Written Essays - 500 words
Austism, - Research Paper Example But it is known that it affects the information processing in brain by the alteration of nerve cells. Autism has a strong and complex genetic basis, but is unclearly explained as either rare mutation or rare combination of common genetic variants. In Autism spectrum disorder (ASDs) there are three recognized disorder namely Autism disorder, Asperger syndrome, and Pervasive development disorder. Autism disorder (also called ââ¬Å"classicâ⬠autism): It is referred by impaired social interaction & communication and by restricted & repetitive behavior. (CDC, 2011) Asperger syndrome: It is referred with delays in cognitive development and language. This is a miler version of autism and generally the problems of language and intellectual ability improves over time. (CDC, 2011) Pervasive Developmental Disorder ââ¬â Not Otherwise Specified (PDD-NOS; also called ââ¬Å"atypical autismâ⬠) It is referred when both the above mentioned disorders (Asperger syndrome, Autism disorder) does not meet the full set criteria. For eg. Rett's Syndrome (RTT). This has limited effects as compared to a full fledged autism (CDC, 2011). Some of the people suffering from Autism are able to live a regular life, while some require a special back up.
Monday, October 28, 2019
Cold War Case Essay Example for Free
Cold War Case Essay The Cold War was a contest between the USA and the Soviet Union. It led to the existence of thousands of nuclear weapons, two universal ideologies in conflict, and two different self-images, the United States championing a world made safe for democracy. Its opponent, the Soviet Union advocated world Communism. The United States prides itself on its heritage of freedom, a refuge for persecuted religious groups, a land of liberty that successfully rebelled against the imperial power of Britain in 1776. Its guiding principles were the protection of the individualââ¬â¢s life, liberty and pursuit of happiness and the establishment of a constitution that embodied the best political idea of modern times, a system of checks and balances so that the president, Congress or parliament and judiciary or Supreme Court shared power, checking each otherââ¬â¢s work to guard against dictatorship. While the United States did not always live up to its ideals, nonetheless, on paper at least, it looked good compared to its Cold War rival, the Soviet Union. Led by a murderous dictator, Joseph Stalin (1928 to 1953), the Soviet government was brutal, outlawing all opposition, banned political parties opposed to the Communist Party, murdered millions and set up a vast prison camp system known as the Gulag. In the years 1937-38 alone, Stalin ordered the execution of one million citizens of the Soviet Union. In the fifty years of the Cold War, the United States only executed two of its own citizens, the husband and wife Rosenberg spy team. Even though the Rosenbergs should not have been executed because their crimes were tiny in the context of the Civil War, the difference between the United States and the Soviet Union in terms of political mass murder of its own citizens is obvious. Despite this fact, one third of the world went the Communist way and other countries were tempted by the promises of Communism. How could this be? In theory, Communism promised a more equal world and at its greatest extent in the 1970s, Communist governments ruled one third of the worldââ¬â¢s people. These were mostly poor countries looking for a quick way to industrialise. These countries looked upon the United States as a champion of the rich and powerful, an exploitative superpower that exported its economic system of capitalism only because it suited its interests to do so. Since the collapse of the Soviet Union in 1991, the United States strides the world as the sole superpower. The United States maintains its grip on this unipolar world without having to make too much effort. The United States spends only about 5-6% of its economy (its gross national product) on defense. The Soviet Union spent somewhere between 20% and 33% of its economy to try to keep up with the United States during the Cold War. It couldnââ¬â¢t keep up the pace. The position of the United States has declined only slightly in the twentieth century. In 1928, its economy was four times the size of its nearest rival (France) and in 1950 its economy was three times the size of its nearest rival (the Soviet Union). It is not just a question of economic or military power. American films and popular music dominated the mass culture of the world from World War One to the present day. In 1994, the biggest-selling film in Austria, France, Germany, Argentina and Mexico was the The Lion King, an American cartoon. The Flinstones was the best-selling film in Poland and Turkey. Forrest Gump won Finland and Norway. It is important to remember that power is projected and wars can be won not just by military and economic means but also by winning what is now an international culture war. A reluctant empire? The United States expanded its frontier in North America throughout the eighteenth century and after victory over Spain in 1898 became a maritime power whose empire stretched as far west as the Philippines. Ever since the Monroe Doctrine of 1823, the United States has pledged itself to prevent the European powers from intervening in the western hemisphere, specifically Latin America. Following its victory over Spain in 1898, the Untied States arrived as a world power. For many Native Americans and African-American slaves, some of the rhetoric of freedom did not ring true. But Americaââ¬â¢s promise of freedom and opportunity attracted migrants from all over the world. They arrived in New York at the rate of a million a year in the early 1900s. As a result of Europeââ¬â¢s self-destruction in World War One (1914-18), the United States became the dominant economic and political power in the world. It would later describe itself as a reluctant empire, a democratic state whose aim was to spread its ideals over the world but not to control in the way that European empires had done in the past. But what would it do with this power? Britain and France, weakened by the loss of Russia through revolution, were able to overcome Germany only with Americaââ¬â¢s help. Wilson believed that the values of the United States were in fact universal values of peace and democracy. In 1918 Woodrow Wilson, the American president published his Fourteen Points which called for a democratic peace based on the rights of self determination of all nations and the setting up of an international body, the League of Nations, to solve conflicts. But the world was changing. In Russia in 1917 Lenin and his Communist Party had come to power. Even worse for Wilson, his ideas were rejected in his own country, the United States. Wilson was pleased that the Treaty of Versailles that ended World War One established a League of Nations, but then found that the United States would not join. The League of Nations was rejected by the Senate, the upper house of the US Congress. Instead the Untied States tried to secure its future through the Washington Conference of 1921-22 which agreed that the US Navy should be of equal strength to the largest navy in the world, the British. In the 1920s and 30s, American foreign policy was dominated by isolationism, a refusal to intervene in Europe even when fasicsts, nazis and communists were on the march against American-style democracy in Europe. Those who support American power in the world today still worry that if the rest of the world criticises the United States too much it will retreat into its shell again and leave Europe and Australia at the mercy of a new (presumably Asian) religious fascim. Despite or because of its spectacular economic growth, American capitalism hit a major snag in the Great Depression that began in 1929 and economic problems increased the mood of isolationism in the US public, that is a mood of cutting the United States off from the worldââ¬â¢s troubles. The president to take the US out of the Depression was Franklin D. Roosevelt, who introduced his New Deal. It was Roosevelt who would take the USA into the Second World War but only after Japan attacked Pearl Harbour in 1941, putting an end to the argument for isolation. The USA suffered more than three hundred thousand deaths in World War Two, mostly soldiers. But as in World War One this was a relatively small price to pay for what was a huge victory. The Soviet Union now under Joseph Stalin lost 27-30 million people, the majority of which were civilians. At the end of world War Two, the United States had a new and powerful weapon, the atomic bomb that it had to used to force japan to surrender in 1945. Under president Truman from 1945-52, the United States staked out a new role as the worldââ¬â¢s policeman whose task it was to protect the democratic and free ââ¬ËWestââ¬â¢ from the tyranny of Stalinââ¬â¢s Communism in the Soviet Union. The United States would win the Cold War, in large part because of its continuing economic success. On the eve of its collapse in 1990, the GNP of the Soviet Union was approximately one third of that of the USA, even though the United States and the Soviet Union had almost identical population sizes. The secret to Americaââ¬â¢s success? Unlike the Soviet Union, which experimented with a new and untried economic model of a state-rune economy, the Untied States had a proven economic model of capitalism. It had its faults such as inequality and crises of unemployment but encouraged innovation and efficiency in a way that the Soviet system did not.
Saturday, October 26, 2019
Foolish Pride in Judith Guests Ordinary People :: Judith Guest Ordinary People Essays
Foolish Pride in Ordinary People In the book Ordinary People, the author Judith Guest portrays a "normal" family, living in Lake Forest, struggling with many problems on the inside, but trying their best to hide their feelings. This book explores the need for everyone to act normal, and ordinary, and even though everyone in the book had a huge problem eating them from the inside, they didn't want anyone to know something was wrong. Many characters in the book hid from their problems. By the end of the book most of them managed to get better, but some of them were gone for good. In the book, Conrad struggled with perfection. He tried to be the obedient son, the good student, and eventually everything got to him so much, he felt the only way to escape was to try and kill himself. "An obedient boy. Polite, well mannered. Even in the hospital, with his fingernails bitten to bloody half-moons, the dark circles, bloody bruises under his eyes; always always his behavior was proper" (13). Conrad was strung too tight, fortunately by the end of the book he learned to relax, and not to stress too much about everything. Unfortunately this wasn't true for all the characters. Everyone viewed Conrad's mother, Beth, as perfect. Beth always had to have everything organized, neat. She had to be in control. Everything about her on the outside seems perfect. "Gracious as always, but Cal knows she doesn't like this. She is wearing a white-knit pantsuit, a long-sleeved black blouse, her hair tied back from her face with a black scarf. She does look gorgeous" (64). After her first son Buck died, and her second son Conrad tried to kill himself, she starts to realize that her family is falling apart, but she can't help them. Beth is all about appearance, how she and her family seem to other people. She can't handle talking about major problems, even when they involve the people she loves. Calvin, Conrad's father tries to be helpful to everyone. He is very caring to his son, and tries very hard with his wife Beth. It seems that Cal gives himself away to everyone, making sure his family is ok, but never worried about himself.
Thursday, October 24, 2019
Advantages and Disadvantages of the Materialism Essay
Greek Philosophy: materislistic approach of the presocratics advantages and disadvantages The advantages and disadvantages of the materialistic approach of the pre Socratic philosophers. Please support your points by referring to the texts in Kirk and Raven, and discuss at least three philosophers . The pre Socratic philosophers marked an epoch in human ideas. Although it might seem stupid to suggest that everything is made of water or that the earth floats on a cushion of air, these ideas came from the people who are responsible for the way we see the world today. The advances that the materialistic approach of the pre Socratic philosophers made to humanities understanding of nature was considerable to say the least. This essay will discuss the advantages and disadvantages of the materialistic approach of the pre Socratic philosophers. It will start by dealing with Thales who Aristotle called the first philosopher. He can be seen as the catalyst of philosophy in ancient Greece. The essay will also deal with Thalesââ¬â¢s friend and student Anaximander time and finally it will discuss Heraclitus. But first a look at something at the cutting edge of modern science that the pre Socratics paved the way for. At a place known as Cern in Geneva there is a machine called a large hydron collider. A machine that is expected to detect the Higgs Boson or God Particle as it is often called. This is the only standard model particle not yet to be observed and one believed to explain the origin of mass in the universe. You might wonder how this ties in with philosophy in 624 B.C., but it was here that people began their search for the Higgs Boson, although we did not know it by that name at the time. It was the pre Socratics who suggested that there was a basic substance from which all things are made and they who tried to explain what this basic substance was. Considering the lack of facility in around 500 B.C. to experiment and find what this material is made of, it is nothing short of astounding to see how close to the truth some of these philosophers got by using reason and their intellect. The idea that there is a single substance out of which everything is sourced known as material monism. It claims that the source of nature is somethingà physical and that there is only one such thing. It was in Ionia that material monism began. The Ionians ââ¬Å"Within the space of a century Miletus produced Thales, Anaximander, and Anaximenes, each dominated by the assumption of a single primary material, the isolation of which was the most important step in any systematic account of realityâ⬠[1] The first of the Ionians was Thales of Miletus. The advantages of Thalesââ¬â¢s materialistic approach were as follows: He revolutionised the way the ancient Greeks thought. He got them to recognize rational argument over all other sorts of authority and separated the natural world from the supernatural world.[2] Before Thales explanations of natural events were merited on aesthetic sensibility. The authorities for knowledge were poets like Homer who explained natural events with mythology. They claimed that divine muses inspired them and people believed that divine humanoid creatures known as the gods controlled nature[3]. Thales however understood that there were laws and routines that nature abided by and that events in the natural world could be predicted by observing the nature and using the information you receive understand it. Thalesââ¬â¢s famous prediction of a solar eclipse convinced people to believe that there were patterns in nature which came about from natural events that could be rationalised. One of Thales main philosophical concerns was to find out what the basic substance of the world was. He believed it to be water. Why he believed this can only be speculated. We might see this as naà ¯ve but ââ¬Å"From Thales onward, all inquiry into the nature of phenomena tended towards one end: The answer to the question, what is the nature of the whole? That is, what is the nature of the reality behind the phenomena? For Aristotle and therefore for us also, science and metaphysics begin together with Thales, the first man to have attempted to answer this question, and attempt an answer to this question, and therefore the first man known to have posed itâ⬠[4] To begin the search for a rational behind the natural world as Thales did was a giant leap for man kind. His ideas were refined by another Ionian who was probably a student of Thales. A man called Anaximander. Anaximander took the basic frame of Thalesââ¬â¢s thought and put his own ideas into it. By this I mean he also believed that there was a source substance. However Anaximanderââ¬â¢s materialistic approach had an advantage over Thalesââ¬â¢s by ââ¬Å"separating his explanatory entity from the entities that need explainingâ⬠[5]. Anaximanderââ¬â¢s physis did not face some of the problems that Thalesââ¬â¢s did, such as how is fire explained if everything is water? His explanatory entity was the focal point of his thought. He called it the unbound or apeiron. We cannot observe the Unbound but its existence Anaximander infers because of its explanatory role. This idea of the Unbound had solutions to two problems faced by Thalesââ¬â¢s physis: 1) How does the basic substance give rise to the plurality of objects we observe around us? and 2)How does the world maintain itself?. His solution to problem 2) was: ââ¬Å"the natural manifestation of physical law, imposing a lawfulness upon continually struggling opposites, and thereby maintaining equilibrium within the cosmosâ⬠[6]. And 1) ââ¬Å"In Anaximanderââ¬â¢s system the apeiron is both the source out of which everything derives and also the unifier within natureâ⬠[7]. I would like to also note startling evidence of Anaximanderââ¬â¢s genius is his work in zoogony. ââ¬Å"His intelligent observation that man (with nine months gestation and many years helplessness) could not have survived the primitive conditions without protection of some kindâ⬠[8] Shows for sight to Darwinââ¬â¢s theory of evolution. Heraclitus This essay will now deal with Heraclitus as his approach to answering what the nature of the universe was slightly different. The advantage of his philosophy was that it shed light on ideas that hadnââ¬â¢t been considered before. Heraclitus theory was that there was a law by which all things abided which he called the logos. He believed that everything was in opposition the strife between these opposites was what kept balance making all things one. He also claimed that everything was in a constant state of change, like a river is constantly flowing or in constant flux it is always the same river but always completely different. ââ¬Å"Heraclitusââ¬â¢ thought possessed a comprehensive unity which seems completely new. Practically allà aspects of the world are explained systematically, in relation to a central discovery that natural changes of all kinds are regular and balanced, and that the cause of this balance is fire, the common constituent of things that was also termed th eir Logos.â⬠[9] It is this idea of fire being that is the main disadvantage of Heraclitusââ¬â¢s approach. It is like taking a step forward with the logos and then going to steps back to the idea that one of the elements is the basis of all things. Although the idea of an all consuming fire does describe his Logos well it works better as a metaphor to describe the Logos than fire being the Logos itself. Conclusion To conclude the materialistic approach of the pre Socratics had many advantages. It was the catalyst for modern thought and it can be seen as the beginning of philosophy and science as we know it today. The use of rational argument over super-natural forms of authority showed that peopleââ¬â¢s thoughts could be progressed and altered by people to come after them. It is true that philosophy is a continuous dialogue that continues through the generations which has created a subject that can be said to define humanities search truth. The progression of thought because of this approach has lead to how we think today. The essay has outlined how Thales, Heraclitus and Anaximander made observations about the world that showed rational approaches to describe what the temporal world is. We still use this approach to find the Higgs Boson however we have the equipment to test our theories. It was a disadvantage of the pre Socratics that their theories were often far beyond their means of tes ting. But in conclusion the materialistic approach of the pre Socratic philosophers was a step in the right direction for philosophy. Bibliography: â⬠¢ Kirk and Ravin, The Presocratic Philosophers A Critical History With A Selection of Texts (Cambridge University Press, 1957SparkNotes Editors. ââ¬Å"SparkNote on Presocratics.â⬠SparkNotes LLC. n.d.. http://www.sparknotes.com/philosophy/presocratics/ (accessed October 23, 2009) â⬠¢ Kathleen Freeman The Pre-Socratic Philosophers A Companion to Diels, ââ¬Å"Fragmante der Vorsackratikerâ⬠(Oxford Basil Blackwell 1946) â⬠¢ Jonathan Barnes, The Presocratic Philosophers Vol. 1 Thales to Zeno (Routledge and Kegan Ltd 1979) ââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬âââ¬â [1] Kirk and Ravin, The Presocratic Philosophers A Critical History With A Selection of Texts (Cambridge University Press, 1957) .p.73 [2] SparkNotes Editors. ââ¬Å"SparkNote on Presocratics.â⬠SparkNotes LLC. n.d.. http://www.sparknotes.com/philosophy/presocratics/ (accessed October 23, 2009). [3] SparkNotes Editors. ââ¬Å"SparkNote on Presocratics.â⬠SparkNotes LLC. n.d.. http://www.sparknotes.com/philosophy/presocratics/ (accessed October 23, 2009). [4] Kathleen Freeman The Pre-Socratic Philosophers A Companion to Diels, ââ¬Å"Fragmante der Vorsackratikerâ⬠(Oxford Basil Blackwell 1946) [5] SparkNotes Editors. ââ¬Å"SparkNote on Presocratics.â⬠SparkNotes LLC. n.d.. http://www.sparknotes.com/philosophy/presocratics/ (accessed October 23, 2009). [6] SparkNotes Editors. ââ¬Å"SparkNote on Presocratics.â⬠SparkNotes LLC. n.d.. http://www.sparknotes.com/philosophy/presocratics/ (accessed October 23, 2009). [7] SparkNotes Editors. ââ¬Å"SparkNote on Preso cratics.â⬠SparkNotes LLC. n.d.. http://www.sparknotes.com/philosophy/presocratics/ (accessed October 23, 2009). [8] Kirk and Ravin, The Presocratic Philosophers A Critical History With A Selection of Texts (Cambridge University Press, 1957) .p.142 [9] Kirk and Ravin, The Presocratic Philosophers A Critical History With A Selection of Texts (Cambridge University Press, 1957).p.212
Wednesday, October 23, 2019
4 Reasons Chinese Companies Ipo in America Essay
Reasons Chinese Companies IPO in America Why do so many good Chinese companies go public in foreign markets rather than let domestic investors share in the profits of growth? Chinese investors often complain about why would ââ¬Å"good companiesâ⬠, like Tencent (0700. HK), Baidu (NASDAQ: BIDU) and Sina (NASDAQ: SINA), choose to list in the US and Hong Kong instead of on the Chinese A-shares market. There are four main reasons: 1. If a ââ¬ËChineseââ¬â¢ company takes foreign investment using a VIE structure, it can only list abroad 2. Many companies donââ¬â¢t meet the strict financial standards for a Chinese listing 3. Chinaââ¬â¢s listing process takes a long period of time and not very transparent, a torturous examination compared with Americaââ¬â¢s speedy registration 4. Chinaââ¬â¢s regulatory agencies perpetually overregulate, rather than letting the market decide 1) If a ââ¬ËChineseââ¬â¢ company takes foreign investment using a VIE structure, it can only list abroad The core reason is simple. These companies arenââ¬â¢t at all eligible to listed on the Chinese A-Shares Market, which restrict the overseas-funded enterprises severely. To receive foreign investment, a great number of Chinese companies set up a corporate structure called theà VIE or Sina structure, because some industries such as internet info & services and financial services are restricted or even prohibited in foreign-funded investment. This structure is especially common for technology companies that raise financing early and often, frequently from foreign investors. State-owned enterprises aside, most ââ¬ËChineseââ¬â¢ companies in the US are not legally Chinese at all. Theyââ¬â¢re Cayman Islands, British Virgin Islands, etc. ompanies that control Chinese entities. Chinese regulators have raised the idea of allowing foreign companies to list on the A-Shares Market, but at present thatââ¬â¢s still speculative. A worry for foreign investors is that the entire VIE structure, which largely serves to circumvent Chinese laws barring foreign ownership, has beenà called into questionà by Chinese regulatorsà in recent months. 2) M any companies donââ¬â¢t meet the strict financial standards for a Chinese listing In August 2005, when Baidu (NASDAQ: BIDU) listed in US, Chinese asked this very question. Let us review. Baidu didnââ¬â¢t reach profitability until 2003. When it went public, it had been profitable for just 2 years. The companyââ¬â¢s profit was only $300,000 (2. 4 million RMB) in the quarter prior to its IPO. This is far from the minimum IPO criteria for the Chinese Small and Medium Cap A-Shares Market, where ââ¬Å"net profit in the recent 3 fiscal years must be positive and the sum exceeds 30 million RMB; aggregate cash flow from operational activities in the recent 3 fiscal years exceeds 50 million RMB, or aggregate operating revenue in the recent 3 fiscal years exceeds 300 million RMB. Baidu didnââ¬â¢t even live up to the standards for listing on the Chinese Growth Enterprise Market: ââ¬Å"Profitable for the previous 2 years, with aggregate net profits of not less than 10 million RMB and consistent growthâ⬠or ââ¬Å"profitable in the previous year, with net profits of no less than 5 million RMB, revenues of no less than 50 million RMB, and a growth rate of revenues n o less than 30% over the last two years. â⬠Nor may capital be less than 20 million in the year prior to the IPO. )à Chinaââ¬â¢s listing process takes a long period of time and not very transparent, aà torturousà examination compared with Americaââ¬â¢s speedy registration Going public is like going through a round of torture. In the prolonged process of waiting for review, they have not only to be upset by countless uncertainties, but also incur high costs off the balance sheet. 4)à Chinaââ¬â¢s regulatory agencies perpetually overregulate, rather than letting the market decide Chinese regulatory agencies are actually most concerned about investors. They fear that investors will buy low-quality stocks and they therefore spare no efforts to set up strict review processes for IPOs. They are also concerned about investors losing money in the secondary market and therefore set up ââ¬Å"protection measuresâ⬠like downward limits and upward limits and make adjustments to the ââ¬Å"IPO rhythmâ⬠to stabilize the secondary market. But these ââ¬Ëgood intentionsââ¬â¢ only end up leading everybody astray from the originalà market intention. The quality of companies listed on the A-Shares Market is far from satisfactory, while most of the companies with the best growth potential and highest returns to investors list abroad. Moreover, the A-Shares Market remains one of the capital markets with the largest fluctuations in the world! The conclusion should be fairly simple: regulatory agencies should not and cannot be held responsible for a companyââ¬â¢s quality through an IPO review. The operational risk of a company does not move in lock step with static indicators like financial data. Regulatory agencies should not and cannot be responsible for the luctuations in the secondary market. Fluctuations of the market can never be contained by up or downward limits, nor can the regulator effectively set the ââ¬Å"IPO rhythm. â⬠Chinese companies will continue to list abroad, despite sky-high A-Share Market valuations To be fair, under the elaborate care of regulatory agencies, A-Shares do have their own magic, that is, a super financing power. Especially in the fiery Growth Enterprise Market over the last year, PE ratios frequently shoot up to 100x. Every single listed company has been overjoyed to get more funds than planned. With such ââ¬Å"stupid wealthy peopleâ⬠circumstances, will companies still want to list in foreign markets? I believe so. Again, there are many companies that will never meet the standards of the A-Shares Market. For growth companies that really desperately need funds, even the listing threshold of the Growth Companies that list abroad donââ¬â¢t have to worry that investors will criticize them for a broad definition of ââ¬Å"misappropriation. â⬠For them, going public is not just a one-time IPO sale, but also a sustainable financing platform. In Conclusion To sum up, the pre-IPO review and post-IPO trading have made A-Shares Market a different ecosystem from foreign markets. It is hard to say which is better. But companies themselves have preferences. Therefore, I donââ¬â¢t think fewer companies will list in foreign markets despite the high valuations of A-Shares. Itââ¬â¢s hard to tell if ââ¬Å"quality Chinese companiesâ⬠will give A-Share investors a chance to invest. Article by Simonà Fong ( ),à Founder & President of Snowball Finance, iChinaStockââ¬â¢s parent company. The original Chinese article was published in the October edition of The Founder.
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