YANGZIJIANG AND HONG LEONG ASIA - A DISMAL LOOK AT CHINA

Both Yangzijiang (YZJ) and Hong Leong Asia (HLA) reported their 4Q results. And things don't look pretty.

HLA which produces consumer goods, appliances, diesel engines for the Chinese market alluded that the world economy would be affected by the largely bearish and underperforming equity markets. Well, I agree that happens, in some ways. But quoting an unnamed HR consultant on wage growth in China seemed a bit off and odd. HLA is still conducting a strategic review of Xinfei's business. I hope they get a buyout offer.

I used to like YZJ. But ever since their involvement in the micro credit and financing business, I decided to put them on the backburner. Their latest 4Q net profit is a -99% drop from 2014's. Enough said.

In any case, these two companies are excellent for monitoring certain segments of the Chinese economical health. But only for monitoring at this juncture.