GC China Turbine Corp. (“GC China” or the “Company”) (OTCBB: GCHT) today announced that has moved wind turbine production from the current assembly facility which is located in the East-Lake Development Zone to another assembly workshop to be provided by the Wuhan Municipal Government as an interim for ultimately moving the production to the assembly facility in Taonan, Jilin Province with the capacity to produce up to 500MW per annum (up to 200 2.5MW turbine units). The administrative office will continue to stay in Wuhan.

GC China’s current assembly facility is located in East-Lake Development Zone in Wuhan, with land coverage of 36,000m2. The facility was originally designed to produce accessories for small aircrafts. Given that the Company is the only wind power equipment manufacturer in Hubei Province, in support of the Company, the Wuhan Municipal Government provided such facility for at no cost to the Company in 2006 for the production and assembly of wind turbine products.

GC China has previously announced plans to expand its portfolio of wind turbines to produce 2.5MW turbines, which it believes will broaden its sales opportunities both into the domestic Chinese market and into other high growth wind power markets including Europe and North America. The East-Lake Development Zone facility is designed to withstand small tonnage cranes but is not sufficient to meet assembly requirements of the 2.5MW wind turbine.

The Company, through consultation and discussions with the Wuhan Government, will move from the current assembly facility, to an interim facility provided by the Wuhan Government at favorable costs, which is located in Jiangxia District of Wuhan.

Mr. Hou Tiexin, Chairman of GC China, stated that, “The interim facility satisfies all existing assembly requirements of the Company for 1MW and 1.1MW turbines. It is important to note that this move will not create any delays or impediments to fulfilling current business and production of 1MW and 1.1MW turbines. Upon the completion of the Taonan assembly facility, we plan to relocate production to Taonan so as to satisfy the production requirement of larger 2.5MW wind turbines. We expect to make this relocation to Taonan in the first quarter of 2012. Furthermore, the Taonan assembly facility is strategically located close to current key markets of the Company, which will help to reduce transportation costs. The relocation is not expected to have significant impacts to the Company’s production and operation.”

The Company intends to move all wind turbine production to the Taonan assembly facility before the end of 2011.

“In order to meet the needs of the overall economic development of Wuhan City, the contribution by GC-Nordic (the wholly owned subsidiary of GC China) is noteworthy. The Wuhan Municipal Government will continue to support GC-Nordic’s development, eventually making it one of the most successful enterprises in renewable energy industry in Hubei Province,” said by the leadership of Wuhan Municipal Government.

About GC China Turbine Corp.

GC China is a leading manufacturer of state-of-the-art 2-blade and 3-blade wind turbines based in Wuhan City of Hubei Province, China. The Company holds a license to manufacture a groundbreaking technology which meets rigorous requirements for low-cost and high reliability. For more information visit: www.gcchinaturbine.com

Notice Regarding Forward-Looking Statements

This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, completion of definitive agreements with local and provincial governments, wind farms and utility companies, number of wind turbine systems ordered, manufactured, delivered and installed, the Company’s future strategic plans, the outlook for the Company’s markets and the demand for its products, estimated sales, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

For those of us with the interest and intestinal fortitude to want to invest in the great small cap growth companies of this China juggernaut, having April behind us is heaven sent.

March was the month of revelation. The month we, in fact, learned there is widespread fraud amongst China small cap companies.

When I launched this publication last October, I was confident I could uncover some great opportunities for subscribers and for myself. The first six weeks were a cake walk. I had 4 or 5 huge short term wins on my list.

It started to get a bit tougher in late November when the Shanghai A shares index fell 11% in four trading days as the market priced in the inflationary cycle in China. About 4 interest rate increases and a number of other tightening measures haven’t slowed inflation enough quite yet.

Then February and March came, and short sellers stated their case in a very public way- they very cleverly identified a few companies they believed were committing fraud, and the sector became a blood bath akin to a Freddy Krueger movie.

I knew they’d likely be right in a few instances, but thought I had the right move on the highly controversial China Media Express (Formerly NASDAQ and still halted CCME). Despite all the evidence the company’s numbers were on the up and up, the short sellers proved out, and I was dead wrong. Plain and simple- I blew it, and it cost me plenty in cash and credibility.

In 23 years of trading in the small cap environment, I’ve never wondered if I should invest over concerns the company was publishing fraudulent numbers. That’s a whole new arena for me.

I’m an journeying to the heart of NY- Times Square, to attend an all day seminar next Friday, hosted by a panel of experts, to teach me how to identify fraud in China companies. Never too late.

At one point I was so demoralized I was almost ready to abandon this service. However, a little perspective saved the day. 23 years of actively trading the market can teach you a lot.

I thought back to the two great cataclysmic events of the first decade of the 21st Century. Stock market devotees are describing it as the “lost decade”. Large caps were dead money for 10 years.

But, was it really a lost decade? Not if you played your cards right. Consider the first cataclysmic decline- the demise of the Internet stocks- that period of 2000 to early 2002 when all the rah rah boom Dot Coms turned into Dot Bombs. Stocks traded down from $100 to $1. 911 didn’t help, which was closely followed by Enron, World Com, and a host of the companies that shook the confidence of the American investor.

If you had the discipline when stocks traded below the value of the cash they had in the bank, and had the capital and courage to step in, you could have made a fortune investing in any surviving dot com in late 2001 and early 2002. The values were remarkable.

Then in 2008 we had a once in a century financial melt down. Overleveraged banks were dropping like flies, and our Government helped in a rather distasteful manner by bailing out the perpetrators of the biggest pyramid scheme in history- the sub prime mortgage meltdown. The Goldman Sachs, Lehman Brothers, and AIGs of the world made Bernie Madoff look like a carnival barker.

The market went into a free fall for months and commerce in the US economy came to a screeching halt.

However, once again, if you had courage and cash, the fortunes of a lifetime were there to be had. I can’t say I was personally clever enough, but I have friends who own Ford (NYSE: F) at $1.80, and Apple (NASDAQ: AAPL) under $100.

Fast forward to today’s China small cap market. Short sellers, to their credit, forced the issue, and I can count 9 China small caps halted for trading on my screen.

There has been a bloodbath in the sector, but I’m learning from the past, and realizing many of these will prove out to be the buys of a lifetime.

We haven’t completed the bottoming process quite yet, but some of the cream is starting to rise to the top.

With the month of April behind coupled with a little perspective, I now believe we can tip toe through this minefield and find a Shangri- La of profits on the other side. Again- those with the cash and courage can make the fortunes of a lifetime as the loud noise of fraud gives way to the more consistent sound of corporate achievement, and a return to more reasonable valuations.

This will happen with time, insider buying, cash dividends, tender offers, corporate performance, and the inevitable unmasking of the remaining offenders.

To summarize my thoughts- hang in there- we’re going to make a fortune as we get past this unfortunate period in time and the bargain hunters start to get emboldened.

Big Picture: The Shanghai A Shares

The first thing I do every morning is look at a chart of the Shanghai “A” shares. This is the index in China which mostly closely mirrors our S&P 500. These are the China large cap stocks most of which are partly government owned.

Here’s a long term look.

This chart looks a lot like our NASDAQ Composite. Our peak at 5,400 was March of 2000.

The Shanghai A shares attracted all the hot money in late 2007. In 2008, the China large caps followed our market down the toilet.

In Q1 of ’11 we’ve recovered nicely. China is behind, mostly due to inflation and tightening, the arch enemies of stock appreciation.

Until this market really breaks above those green trend arrows, the China stocks will struggle a bit. I thought we might be in for a breakout last month, but high fuel prices sabotaged the inevitable.

It’s going to happen as soon as the market perceives China has beaten inflation. Despite their red hot economy, growth will slow, inflation will go away, and this market will to go back to Goldilocks and off we’ll go- it will happen later this year.

Playing the Yuan

Here’s the deal. The dollar has been going lower down, and the Yuan- the Chinese currency, has slowly crept up.

Global economists, the US in the lead, have long complained the Chinese have artificially held down the value of their currency to make their exports cheaper and therefore more in demand.

However, the Chinese have a big problem exacerbated by this policy, and most China watchers believe the YUAN is finally going to be allowed to appreciate more rapidly.

China is now importing a lot of food and fossil fuels. Those prices are going up. In the month of February China had a trade deficit for the first time in decades.

One way to combat this problem is to allow the YUAN to appreciate more rapidly. If there currency strengthens, their imports become cheaper.

If you want to bet on the appreciation of the YUAN, CYB- the Wisdom Tree Dreyfus Chinese Yuan Fund is a way to do it. This ETF is designed to provide a total return by being long both Chinese super safe debt and the YUAN relative to the US dollar.

This ETF is about very stable, and should appreciate very slowly over a long period of time

If you want to place a bet on the Chinese YUAN with a pile of your “safe” money, CYB is the way to do it.

The YUAN broke through the 6.50 level to the dollar on Friday, matching it’s highest valuation since 1993. Analysts expect the YUAN to appreciate about 7% in 2011, and there’s still nearly 6% to go.

I’m adding it to the currently unpopulated Large Cap section on the site.

Warmest Regard,
Larry Isen
Emerging China Stocks
www.emergingchinastocks.com

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, with clients similar to companies like Chinacast Education Corporation (Nasdaq: CAST) and China Education Alliance, Inc. (NYSE: CEU), recently reported a significant increase in revenues in FY2010 as it enters its commercialization phase.

EastBridge Investment Group, Inc. (OTCBB: EBIG), a provider of financial services to emerging public companies in Asia, recently reported revenues that increased from $50,000 to $1,741,682 in its 10-K annual report filing with the SEC. With several of its clients on the verge of going public, the company is at the tipping points of commercialization and ready to unlock significant value for shareholders.

The Tipping Point of Commercialization

EastBridge’s long-term business model is now approaching a crucial tipping point as the first of its clients prepare to list on U.S. exchanges. With 10 current clients and several other potential clients in various stages of negotiation, the company’s current $1.7 million in revenues from just one of its clients represents just the beginning of its commercialization phase.

Wonder Education is one of the closest of its client to unlocking significant value with plans to list on a U.S. stock exchange in the near future. EastBridge received 2,512,310 shares of Wonder for its consulting services in March of 2011 and declared a stock dividend of these shares for shareholders on record as of July 31, 2009, and this dividend is currently being distributed.

EastBridge has also received shares and declared dividends for two other clients. The company received 1,142,350 shares of Alpha Lujo in December 2010 and declared a dividend for shareholders on record as of March 31, 2011. Meanwhile, it also received 2,079,740 shares of Tsingda Education that will be distributed in part to shareholders on record as of March 15, 2010.

Some Clients Delayed, Progress in Others

One of the key issues addressed in its earnings conference call was the delay in the initial public offerings of Wonder and Tsingda Education. Despite EastBridge’s disappointment with the delay, the decision could result in significantly higher valuations with the attitude towards Chinese public companies a bit sour on Wall Street in recent months, and could prove a positive.

And while some clients have faced delays, EastBridge indicated that other clients are drawing closer to commercialization. Dwarf Technologies completed is audit and plans on filing its S-1 with the SEC in about two weeks, while it is still AREM Pacific and Alpha Green audits are nearly complete with S-1 filings slated for June.

EastBridge is also making progress with several newer clients, including Fizza, StrayArrow and Golden Eagle. Fizza and StrayArrow are in the process of raising seed capital and eventually seeking a listing on a U.S. exchange, while Golden Eagle was recently signed as a new client. Combined, these clients could provide a future pipeline of value for shareholders.

Conclusions

EastBridge recently reported strong financial results, despite some small setbacks, with a strong pipeline of deals set to unlock shareholder value over the long-term. As a result, this is one stock that investors may want to take a closer look at in the near future.

It’s a road map to profits. It’s Hansel and Gretel bread crumbs. It’s a chance to read the tea leaves.

With all the turmoil in the China Small Cap world right now, let’s focus some attention on the longer term.

At some point all the issues will be resolved, and China equities will become the superstars of past years. From these valuations, it’s really a no brainer. It’s just a question of time.

So, when it’s time to pick up the pieces and dive back in, where should we look? Luckily for us we have a Google map, complete with our car nav audio instructions, on where to invest. It’s called the 12th Five Year Plan, and it was ratified by the National People’s Congress on March 14th 2011,

A Look Back

China’s move to an industrial nation started taking place in the 70’s. However, when you think about it, if this is the 12th five year plan, then there’s 55 years in the rear view mirror.

The first five year plan spanned 1953-57. For some reason, they skipped ’62-’66, and got on even 5 year increments from there. The 12th Five Year Plan covers 2011 to ’15.

The 1st Five Year plan was based on the Soviet economic model. During this period of time, 595 large to medium size projects were completed and put into production- 694 were targeted in the plan. The Soviet Union helped. It laid the foundation for industrial growth in China.

Out of the green shoots of China’s industrialization in the 50’s grew a new problem- agricultural production could not keep up with industrial production. Guess what- China has the same problem today, which has led to inflating food prices, and problem they can’t seem to get under control. That’s why one of the key features of the 12th Five Year plan is the modernization of their agricultural industry.

Highlights From The 12th Five Year Plan

The 12th Five year plan is focused on creating an environment for steady and sustainable growth, and addressing rising economic inequality.

I have read both favorable and unfavorable reviews of the plan. Many feel the plan, while widely expected to be focused on internal development, still remains too export driven.

It’s actually a rather modest plan, and it’s goals would appear to be easily attainable. Here’s some specifics:

• GDP growth from $39.9 Trillion in ’10 to $55.8 trillion in ’15.
• Service as a percentage of GDP: 51.5% up from 47.5%
• Urban income: $26 trillion, up from $19 trillion
• Rural income: $51.5 trillion, up from $47.5 trillion
• New Jobs: 51 million (’10) to 45 million (’15)

Most observers consider these goals fairly moderate, and wish the government were more focused on the “unleashing” of domestic consumption.

Here’s a list of specific goals spelled out in the plan:

• GDP Growth: 8%
• Income Growth: 7%
• 2.2% of GDP spent on R&D
• Keep population below 1.39 billion
• adjust and redistribute income gap
• firmly curb and excesses in housing prices

In either case, China has a history of obtaining its goals on the 5 year plans, and if so, China still represents one of the premier growth investment opportunities in the world.

Specific Structure

I don’t want to go into too much detail, because frankly, it’s really kind of boring. For our purposes as investors, we want to focus on the industries the government will be prioritizing. These 5 year plans are considered blue prints for businesses.

There are 16 sections to the plan, and within each section are several subsections, so you can see how long this could go on. Let me focus on some of the highlights.

Article 10 focuses on the development of strategic new industries. Here are the specific groups:

Energy saving and environmental protection, Next gen IT, Biotech, Hi end equipment (planes, satellites, etc), New or Renewable energy (nuclear, wind, solar), New Materials (rather earth, nano tech), and new energy transportation (like electric cars).

In the energy section alone, there are specifics targets placed on coal, crude oil, nuclear, Renewable (Hydro, wind, solar), and importing oil and gas.

Section 12 is all about transportation infrastructure. Goals: 9,000 KM of new highways; 300 billion RMB on hi speed rails, 45,000 KM of new passenger rails, new coal rails from Shanxi to Inner Mongolia, six new ports for heavy materials, adding 10,000 new berths, and new Beijing airport along with 11 new regional airports.

On the housing front, the 12th 5 year plan calls for the construction of 36 million affordable apartments for low-income people.

Expectations

The 12th 5 year plan was disappointing to many China devotees- the early indications on the plan set expectations it would focus on unlocking the enormous power of the largest emerging consumer class in the history of the world, and I still believe this is a sound growth area for at least the next decade.

Looking back at the 11th 5 year plan, it called for 7.5% GDP growth, 45 million new job creation, and discharge of major pollutants down 10%.

GDP growth over the last five years far eclipsed 7.5% to an average of 10.5%, and China beat its targets in nearly every other category.

Therefore, while the 5 year plans do serve as a guideline for business, the bar is set rather low on the targets, and easily attainable. We can assume the Chinese economy will under promise and over deliver.

Where To Invest

From reading the plan, I believe there will be several great investment themes in China stocks for the next 5 years.

There will still be major growth on the infrastructure front. Cement, steel, chemicals, construction- all of these sectors will continue to prosper in the next five years.

I also believe the modernization of agriculture will be a major theme for the next five years. Food costs are a major component of China’s inflation problem, and China is a net importer of food.

Farmers are the single largest group of people in China, but the rights they have to their land can be easily infringed on, thus discouraging investment, modernization, and expansion. I’ll be looking for opportunities in the agricultural sector as the China small caps start to come back. China has to encourage more food production to lower costs to consumers and curb inflation.

Despite the plan’s lack of focus on the emerging consumer class, I believe there will be fortunes made investing in companies who cater to China’s massive emerging consumer class.

In the past 10 years, the Chinese consumer class has grown 10 fold. 1% of the population could afford a Western life style- today’s its 10%. That’s over 200 million consumers- roughly the size of the US consumer population.

There’s still 90% to go. I’m not assuming all 1.1 billion people will become westernized by 2020, but if the number simply doubles, it’s still only 20% of the population.

Look for a new idea on Tuesday.

Larry Isen
http://www.emergingchinastocks.com/