HANGZHOU – Two brothers and their father were sentenced to death on Monday for cheating 15,000 investors out of over $1.1 billion in east China’s Zhejiang province. Ji Wenhua, president of the Yintai Real Estate and Investment Group, was sentenced to death for the crime
Dan Collins CMR “Gold going to $7,000”, an article today in the Chinese media is going viral and one of the most viewed articles in the financial press. The article references American Jim Rickards and his concept of comparing inflation-adjusted gold prices. Most Chinese economists
Dan Collins CMR When I moved to China back in 1998 I was surprised to learn how highly the Chinese thought of America. Of course China was a much poorer place back then but coming from the Detroit area I couldn’t fathom where was all
It’s not uncommon for the large Wall Street banks to combine in shorting an entire years supply of minded silver in a single day.The same goes for all commodities. Endless paper printing getting funneled to Wall Street has destroyed all real price discovery. Capitalism fails
You have to laugh at the whole “China will collapse crowd” on CNBC and even respected sites like Zero Hedge. Personally, I love the Zerohedge stuff. They understand the ponzi-financial fraud-money printing-welfare state economy that now envelops the West. But China is a real economy,
Chanos is back! His short China thesis is very long in the tooth but as it goes with most ego maniacs he cannot accept failure or that fact that he might be wrong. Being wrong on an entire country where you have never visited and
Breaking News today that a Chinese vessel as rammed and sunk a Vietnamese fishing boat. All countries in the South China Sea and East China Sea are using fishing boats in a game of cat-and-mouse to challenge each other on their respective areas. This time
Stockswatch China has become a banking powerhouse. Four of the five largest banks in the world are Chinese, according to SNL Financial’s latest global bank rankings. It’s a big change from the past few years when only two Chinese banks made the top five. Beijing-based
Scared of losing the Chinese tourist dollar, France has relented to China and will allow Chinese police on the streets of Paris. More signs of the benefits of third-world immigration into the West to the point where cultural breakdown has occurred and law and order
D.Collins CMR China’s cloud computing market is expected to be worth 37.2 billion yuan (US$6 billion) in 2017 as demand for the service grows, the Chinese-language China Securities Journal reported on Friday. Some American tech companies are watching the largest and fastest I.T. market in
Gold has been flowing East for a decade. When the West wakes up to the fact that their gold is gone, they will no longer have sound money with which to back a currency. The world has only been off a gold standard since 1971
From the China Daily… BEIJING – China will lower banks’ reserve requirement ratio (RRR) by 0.5 percentage points starting May 18, the country’s central bank announced Saturday. The cut, the second of its kind this year, will drop the RRR for the country’s large financial
One year after the launch of direct trading between the renminbi and Japanese yen, the daily trading volume between the two currencies has reached 50-100 billion Japanese yen on the Shanghai market and 15 billion yen on the Tokyo market, a combined volume double that
Japan will learn the hard way that destroying your currency is not an viable economic strategy. Shanghai Daily JAPAN posted a record 1.63 trillion yen (US$17.4 billion) trade deficit in January as rising exports trailed surging imports of crude oil and gas due to rising
Is China tweaking its numbers on GDP? Probably. For twenty years Chinese GDP roughy came in right on the governments target. This would be an almost magical performance record considering economists in the West can predict absolutely nothing. For years, China most likely lowered GDP
Number of rich Chinese rises nearly nine-fold in decade, survey suggests
Chinese with at least 10 million yuan in investable assets hit 1.6 million
in 2016, but growth in the private wealth market will slow this year,
according to report
The number of rich people in China has risen nearly nine times in a decade,
a private survey released on Tuesday showed, as strong growth in the world’s
second-largest economy spurred wealth creation.
Chinese with at least 10 million yuan (US$1.47 million) of investable assets
hit 1.6 million in 2016, up from 180,000 in 2006, according to the 2017 China
Private Wealth Report by Bain Consulting and China Merchants Bank.
The overall value of the private wealth market increased to 165 trillion yuan
last year, growing 21 per cent annually from 2014 to 2016.
But the growth rate of China’s private wealth market is expected to decline
to 14 per cent in 2017 to a total size of 188 trillion yuan.
About 120,000 “high net worth individuals” had at least 100 million yuan worth
of investable assets, up from less than 10,000 people in 2006.
The percentage of rich with overseas investment increased to 56 per cent in 2017,
up from 19 per cent in 2011, but the overall percentage of assets invested
overseas has stabilised since 2013.
The top five destinations for investment were Hong Kong, the United States,
Australia and Canada although Hong Kong’s popularity fell 18 per cent and the
US dropped three per cent from 2015 to 2017.
People surveyed said their top three reasons for investing overseas were to
diversify investment risks, to capture market opportunities of overseas investments
and to migrate.
China’s wealthy are concentrated in major cities and coastal areas, the survey
found, but now 22 Chinese provinces have at least 20,000 high net worth individuals .
Most of the people surveyed said their top priorities. were “wealth preservation”
and “wealth inheritance”, in contrast to 2009 when nearly half polled said “wealth
creation” or “quality of life” were their main goals.
China appears to have failed at containing the missile launches from the
Hermetic, despotic Gulag-state known as North Korea. “Fatty Kim” as he is
known in China has most likely crossed the line with sending back an American
student who was jailed and beaten for a year for trying to steal a poster.
That student died of his injuries.
If we know anything about Trump is that he is a man of action. North Korea
can no longer be coddled. Trump today sent out a tweet that carries an
Fatty Kim’s regime will fall. The only question is will China preempt a
U.S. strike with an invasion or will the U.S. send a Tomahawk into one of
Kim’s pleasure gardens. This is probably what he wants, he needs a war to
keep power. Expect Trump to give him one.
The field of quantum cryptography, which seeks to transmit encrypted information using entangled quantum particles like photons, could help lay the groundwork for tomorrow’s quantum networks but it faces a significant physical hurdle: entangled photons are crazy hard to transmit long distances. Even in fiber optic cables, they can only go about 150 miles before completely degrading. But a team of researchers from the Chinese Academy of Sciences may have the solution. You just have to send the photons 745 miles into space.
Though the idea of using satellite relays to shunt entangled photons into space and back has long been considered, it wasn’t until last August that the nation sent up its first such orbiter, the $100 million Quantum Experiments at Space Scale. It is reportedly equipped with a laser-and-mirror system as well as a special crystal that can encode data and encryption keys onto photons as they travel back to Earth.
Even without the ground-based obstacles that conventional quantum networks and experiments have to contend with, spotting these photons on their way back from orbit is no easy feat. The crystal can generate as many as 6 million pairs of photons at any given time however the two designated ground stations, which are located 750 miles apart, are only able to detect around one par per second. “It’s a challenging task,” physicist Chao-Yang Lu, told Wired. “It’s like you have to clearly see a human hair from 300 meters away.”
Lu and his team hope that this successful experiment, which has recently been published in the Journal Science (paywall), could pave the way for more secure encryption systems. In theory, you’d first encode an encryption key based on the characteristics of a photon stream and send that to your message’s recipient. You’d then encrypt your message with that key and send it on as well.
If someone tries to intercept, decode or even observe the key while in transit, the laws of quantum mechanics dictate that the key itself would change. So even if they intercepted the key and the message, both would be useless. The current state of the technology isn’t quite sensitive enough to do that yet but that’s essentially the goal.
If your looking for reasons why the RMB has strengthened this year look
no further than the European Central Bank whom is now buying the currency
The ECB invested €500m of its reserves in renminbi- denominated assets
during the first half of this year, reflecting China’s importance as one
of Europe’s largest trading partners, the bank said on Tuesday.
While the €500m amount is just a sliver of the ECB’s €68bn forex reserves,
the purchase of renminbi assets reflects the growing acceptance in Europe
of China’s status as a global economic superpower. That number is sure to
grow in the future and could one day
The ECB is the most powerful central bank to date to invest in renminbi.
The central parity rate of the renminbi has continued to rally, hitting
a seven-month high on Friday, up 0.03 percent to 6.807 against the greenback.
The rise comes after the onshore yuan reached a peak of 6.78 against the
US dollar on Thursday and offshore yuan reached its highest level since
October at 6.72 per dollar.
Investment bank UBS raised its year-end forecast for the renminbi exchange
rate from 7.15 to no more than 7, while projecting a mild slump of the
currency back to no more than 7.1 by 2018.
The lowered risk of China-US trade friction has contributed to the renminbi’s
rally, UBS economist Wang Tao said, adding that the foreign exchange reserve
will “likely remain above the $3 trillion mark this year”.
The improvement also comes on the heels of a tweak to the formula used to
calculate the renminbi central parity rate, announced last Friday by China
Foreign Exchange Trade System. The new formula allows a dealer to incorporate
a “counter cyclical factor” into the existing formula to hedge against
fluctuation in market sentiment.
The move will “alleviate the potential for herd behavior in the forex market,”
according to a statement by the CFETS. Details remain unclear as to when and
how the “counter cyclical factor” will be used.
Under China’s market-based, managed floating exchange rate system, renminbi’s
daily trading band against the dollar has been widened to 2 percent around the
central parity rate.
Soon enough, proud Chinese parents may have a new way to brag about their
children. This time, the “achievement” can be found in children’s genes,
and a genetic test to locate that talent is growing more and more popular
across the country.
Many Chinese parents see the test as an advanced version of “zhua zhou,” or
“1-year-old catch” – a traditional blessing ceremony for children when they
turn 1 year old. Usually, a child is presented with several objects, such as
a pen, some cash and some food. The first thing the child grabs is said to
be representative of the child’s future.
The genetic test has recently become a hot topic, after Chinese boxing
champion Zou Shiming had his sons tested for the “talent gene.” The results
surprised many, as Zou’s sons were found to have more potential talent as
TV hosts than boxers.
In Nanjing, a genetic testing company organized a public test at a park on
May 29, which a crowd of anxious parents attended in order to find out about
their children’s futures. Each child was tested using saliva only. According
to a company employee, each child’s results are compared to the company’s
gene database, and a final report can be ready within one month, Yangtze
Evening News reported.
Apart from identifying genes indicative of potential diseases, the test also
claims to determine whether a child is particularly gifted in any area, from
academics to sports.
While many parents have expressed the desire to know more about their
children’s futures, Professor Li Rui at Beijing Institute of Genetics suggested
that parents view the test as nothing more than a fun experiment, leaving
space for their children to develop along their own paths, the report stated.
A man from southern China has been jailed after he stole 13 million yuan
(US$1.9 million) from a video website and spent nearly a third of it tipping
hostesses live-streaming programmes on the internet, Chinese media reported.
The man from Qianxi county in Guizhou province took advantage of a bug in
the payment system to claim huge numbers of refunds from the video website
Youku Tudou he was not entitled to, the news website.
The 21-year-old ran an online software store and pleaded guilty to theft at
a hearing in Beijing, according to the article. He was sentenced to 15 years
in prison.The man, who was only identified by his surname Hu, spent four
million yuan of the money he took tipping hostess on live-streaming sites.
He was quoted as telling the court he did not regret his actions as he had
learned from his mistakes.“I’m sorry [for what I did] to the Youku company,
but I don’t regret this. I have learned so much about life,” he said.
He took advantage of the bug in the payment system between November 2015 to
April 2016, making more than 100,000 fraudulent transactions, the report said.
Host on popular Chinese live-streaming website unmasked for faking acts of
He lavished cash on more than 40 online hostesses who host programmes on the
internet. He was left with about three million yuan after also spending some of
the money to repay debts owed by his father and to cover his personal
Chinese internet giant Baidu says it plans to leverage advanced cloud computing to analyse the online data of millions of its users to help companies improve their marketing campaigns.
The Chinese search engine giant, which has real-time search data on more than 700 million internet users, is able to analyse individual users through its cloud arm’s artificial intelligence (AI), big data and cloud computing technologies, Yin Shiming, vice-president and general manager of Baidu Cloud Computing, said in Shenzhen.
“AI is bringing in new ways of thinking for many traditional industries,” said Yin, who cited the recent battle between Google DeepMind’s AlphaGo computer program and Chinese Go master Ke Jie as supporting his view that the development of AI technology has stepped up.
“Our Marketing Cloud, backed by Baidu Cloud’s data and technology, is not just saving resources and costs, but making marketing easier,” Yin said.
Despite challenges from other local search brands such as Sogou and Qihoo 360, Baidu’s dominance in online search has hardly swayed over the years, accounting for about 75 per cent of the search market.
Baidu’s mobile app is ranked as the seventh most popular in China, with 244.3 million active mobile users as of the end of March, according to Beijing-based research agency Analysys.
The authors of the WannaCry malware, which infected computers in 150 countries two weeks ago, are probably from the southern mainland, Hong Kong, Taiwan or Singapore, according to a US intelligence company.
Forensic linguistic analysis on the malware suggested it was written by native Chinese-speaking people with southern accents, said Flashpoint.
In a report on its website, Flashpoint, which provides global business-risk intelligence, said it came to the conclusion with “high confidence”. Earlier reports based on code analysis suggested North Korean programmers at work.
The WannaCry malware locked up data on infected computers and displayed a message in 28 languages demanding a ransom for restoration of the data.
The hackers drafted the note in Chinese first, Flashpoint said. Based on the Chinese text, they manually produced an English version, then converted that into other languages using Google’s translation software.
“A typo in the note, bang zu (幫組) instead of bang zhu (幫助), which means ‘help’, strongly indicates the note was written using a Chinese-language input system rather than being translated from a different version,” the report said.
China poses a threat to US dominance in semiconductor industry
US Commerce Secretary Wilbur Ross sees the US semiconductor industry
as still dominant globally but said he is worried that it will be
threatened by China’s planned investment binge to build up its own
chip making industry.
Ross said in an interview this week that his agency is considering a
national security review of semiconductors under a 1962 trade law because
of their “huge defence implications” including their use in military
hardware and proliferation in devices throughout the economy.
He has launched similar “Section 232” reviews of the US steel and aluminium
sectors, where a flood of imports especially from China has depressed
prices, threatening the industries’ long-term health.
The probes could lead to broad import restrictions on the metals, and the
Trump administration could potentially take similar actions based on the
findings of a semiconductor investigation. “Semiconductors are one of our
shining industries, but they have gone from substantial surplus to the
beginnings of a deficit,” Ross said. “China has a US$150 billion program
to take that much further between now and 2025. That is scary.”
The 79-year-old billionaire investor was referring to China’s plans for
massive state-directed investments in semiconductor manufacturing capacity
under its “Made in China 2025” programme, which aims to replace mostly
imported semiconductors with domestic products.
Ross’ predecessor at Commerce, Penny Pritzker, warned last November about
looming market distortions if China builds too much semiconductor capacity
Ross added that while he understands Beijing’s logic in developing its
domestic chip industry, “that’s going to be a struggle” from a US trade
US semiconductor makers, meanwhile, have other ideas about how to secure
their future. Their major trade group, the Semiconductor Industry Association
(SIA), advocates open trade and increased access to international markets,
which now buy 80 per cent of US-made semiconductors.
US chip makers also depend on a complex global supply chain and have nearly
half their production capacity located overseas. “So while we fully support
efforts to ensure trade in semiconductors is fair and market-based, we do not
believe a Section 232 investigation is the right tool to be applied to our
industry” SIA President John Neuffer said. China hits milestone in developing
quantum computer ‘to eclipse all others’
One area where there appear to be some differences is how to define the industry’s
trade balance. Commerce Department trade data showed that “Semiconductors and
related device manufacturing” had a trade deficit of US$2.4 billion in 2016,
with exports of US$43.1 billion and imports of US$45.6 billion.
But that category includes rapidly growing imports of non-semiconductor devices
including solar cells and light-emitting diodes (LEDs) as well as some raw
materials. In a new submission late on Wednesday to Commerce for a study on trade
deficits, SIA said that excluding the non-semiconductor products shows the sector
had a US$6.4 billion trade surplus last year, with exports of US$41.3 billion
and imports of US$34.9 billion.
Neuffer said the industry was ready to work with the Trump administration to
find ways to persuade China to allow its semiconductor industry to develop in a
market-driven way and not discriminate against foreign firms.
He added the government could make the United States a more competitive environment
for semiconductor output through tax reform that does not penalise overseas earnings, immigration reform that allows the industry to attract new talent, improvements to
US education and more spending on basic research.
“The Chinese are determined to build a semiconductor industry,” Neuffer said.
“I think the strongest pillar of any strategy going forward has to be our government
helping to create an environment where we can pedal faster and stay as far ahead as
Many Chinese university students were found to have used their nude
pictures as IOUs on some online lending platforms, putting themselves at
the risks of having everybody – including their parents – see them naked.
Such risky methods of IOU is found usable on several online lending
platforms, but it is usually more often accepted within the QQ group chats
connected to such platforms. Borrowers are also required to upload pictures
of their ID cards and report their family information, including their
address and cell phone numbers.
Once a clear photo of a naked borrower holding his or her ID card is
uploaded to lenders, he or she can get up to 15,000 yuan ($2,277) credit
with a maximum of 36 month installments, the Nandu Daily reported.
The credit varies based on the borrower’s education background. Usually an
undergraduate student can receive 15,000 yuan in credit, while those studying
at famous universities as well as doctorate students can receive even
What comes with the seemingly easy business transaction is costly overdue
repayment. According to a self-claimed former borrower Li Li (pseudonym), the
weekly interest rate was 30 percent for her 500 yuan borrowed from an online
platform in February. As she kept failing to pay back on set payment due dates,
she borrowed more money from the platform with the same weekly interest rate
until the overdue payment grew to 55,000 yuan, which then led to a threat
with her naked pictures, the Nandu Daily reported.
Li told the newspaper that many of her fellow students have borrowed money in
this way, but most were too ashamed to talk. Snapshots of similar threatening
collection messages have also gone viral, with a photo of a female borrower and
a message reading how the lender would send the photo and her naked video footage
to her family members if she could not pay back her 10,000 yuan borrowed on an
annual interest rate of 24 percent within a week.
“Naked IOUs started long ago. Not only university students but many others
also borrowed money with nude pictures,” an insider surnamed Zhang told Nandu
Another Chengdu-based insider said naked pictures are often acceptable as IOUs
in underground private loans companies and borrowers – who are usually loaded
with debt – are ineligible at standard companies, but they can get tens of
thousands from such underground sources.
By Monday evening, several online lending platforms that secretly offer naked
IOUs have issued notices on their QQ group chats to stop receiving nude pictures
as IOU, Nandu Daily reported.
By Deng Xiaoci Source:Global Times Published: 2017/5/14 23:33:40
Mutated ransomware has overridden kill switch.
Beijing authorities announced on Sunday that they have detected a new
mutated version of the malicious ransomware WannaCry, and have urged
all departments to take measures to prevent attacks.
The malware was first detected on Friday, and has so far affected
institutions in more than 100 countries.
Beijing Cyberspace Administration, Beijing Public Security Bureau and
the Municipal Commission of Economy and Information Technology jointly
issued a notice on Sunday,saying that the mutated version, dubbed
WannaCry 2.0, has managed to override its previous kill switch and can
no longer be prevented from spreading. It is likely to spread faster,
reported qianlong.com, a news portal affiliated with the Beijing municipal
The notice urged departments to take measures to stop the virus attack,
including updating operating systems and disconnecting affected computers
from the Internet.
There was concern about the level of potential attacks from new versions
that would hit on Monday morning, the BBC reported.
WannaCry, a new type of “worm” ransomware virus, broke out on Friday
evening. Europe’s police agency, Europol, called the attack “unprecedented,”
and warned a complex international investigation was needed to identify
the culprits. The virus took control of users’ files, demanding payments.
According to a release by the China National Petroleum Cooperation on Sunday,
the company has recovered more than 80 percent of its network. The virus
affected gas stations, preventing customers from using cards to pay, but
now the company is recovering payments for gas filling cards, bank cards
and third-party payments.
The virus has affected several thousands of computers from 29,372 domestic
agencies. Among them, 4,341 education research agencies were the worst hit,
said a report from the Threat Intelligence Center of the leading Chinese
anti-virus software firm Qihu 360 on Sunday.
The report said that East China’s Jiangsu and Zhejiang provinces are the most
affected regions in China. Affected agencies cover universities, train stations,
post offices, hospitals and government terminals, and the number is on the rise.
WannaCry is believed to use the EternalBlue exploit, which was developed by
the US National Security Agency to attack computers running Microsoft Windows
The virus poses serious challenges to international collaboration and demands
a buildup of a cyberspace security community, Qin An, director of the China
Institute of Cyberspace Strategy, told the Global Times.
Network weapons deployed by the US government have served as a core factor of
the virus rampage, which again reminds the world of the great harm the US’
network hegemony and its network weapons can bring about, Qin noted.
Chinese President Xi Jinping has stressed the importance of upholding cyberspace
sovereignty, calling on all nations not to engage in “Internet hegemony.”
In its report published this week on Tuesday, IHS found that more than half
of the global esports audience is in China, accounting for 57 per cent of
all viewing in 2016.Games were watched more than 11bn times online in China last
year, more than four times as many as in North America, the second-largest
The amount of time people around the world watch competitive video games as
a spectator sport continues to rise at a rapid pace, up 19 per cent last
year to more than 6bn hours.
IHS analysts expect annual esports viewing to exceed tournaments, such as the
League of Legends world championship, hosted by Tencent-owned Riot Games, and
the Dota 2 international, held by US games group Valve, attract multimillion-
dollar prize funds, often contributed by fans through crowdfunding campaigns.
It is now apparent that the traditional banking system is like the
former telecom monopolies in the States. They are big, bureaucratic
slothful like institutions who literally live by sucking the prosperity
The over-gorged New York City and London elite take your money, pay you
no interest, then print money based off of your deposit.(fractional
reserve banking system) In addition to that they have a license to receive
money at near zero interest from the private Central Bank (The Fed) that
they own and then buy up government debt shackling the very governments
with debt that gave them the right to print the funds in the first place.
All of this fictionally created cash then washes into the market to compete
with normal investors in buying stocks, commodities, and other assets.
Prices and bubbles get created with so much new freely printed currency.
Normal people then have to imprison themselves with life-long debt to purchase
a house or pay for college tuition as costs explode all the while the Fed
themselves tell you there is no inflation. When the gambles on currencies and
commodities go bad as they do every decade or so…no problem,print more money
and expand the Fed balance sheet and devalue your life-long earned savings.
More supply of dollars equals less value, its simple supply and demand.
Now, there is a light at then end of the tunnel in this banker induced serfdom
for people around the global. Digital currencies and Fintech are threatening
the very existence of this 19th century banking infrastructure. Some Fintech
company will become the Amazon that blows up the retail sector or the Netflix
that blows up Blockbuster or even the Skype type company that blew up the
long-distance telephone scam on American consumers. Big Banking brands may not
be around in twenty years as they fail to cope with the digital challenge in
The Chinese banking system on the other hand has been nationalized and held into
strict types of businesses,by law not allowed to invest in exotic financial
products. And if you put your cash into a Chinese savings account, you actually
receive interest,at current rates about 4%.
Recently, an article has appeared showing the the PBOC is exploring digital
currencies and even the idea of allowing citizens to set up accounts with the
PBOC directly.Combined with Fintech companies such as Ant Financial will allow
frictionless, low cost banking to proliferate across the globe.
The original Chinese article (http://mp.weixin.qq.com/s/H0wDjzUL2Nn6mU42e2Dk8Q)
is written by YAO Qian of the Technology Department of People’s Bank of China
This article discusses the relationship between digital currency and bank
account and proposes a design concept where bank accounts and digital currency
wallets coexist and operate at different layers. This article also demonstrates
a use case of earmarked subsidy distribution and suggests focus areas for further
It says,digital currency can leverage existing IT infrastructure with a variety
of applications and services, the costs of promoting digital currency would be
significantly reduced and its usage would be more convenient and flexible,
which would facilitate the wide adoption of digital currency by the public.
In addition, the incorporation of digital currency into existing applications
would generate more diversified scenarios, which would in turn contribute to
greater competitiveness of digital currency and enable it to provide better
The most straightforward way to leverage the bank account system is to expand
the scope of central bank’s balance sheet. In fact, claims on central bank of
commercial banks and other financial institutions in the form of central bank
deposits have already been digitized. However, should the central bank provide
such services to broader counterparties? Should non-financial institutions such
as households be allowed to open accounts at the central bank?
If that happens, the middleman standing in the way of people and credit creation
will disappear.If you own a Lamborghini dealership in NYC it may be time to sell.