Shock…China wants a free market in gold not 6 guys locked in a back room deciding pricing. Global Times Foreigners now have access to China’s gold market after the Shanghai Gold Exchange (SGE) launched its international board on Thursday. The yuan-denominated board was opened in
The Fog of War Want China Times To defend its carrier battle group from a potential attack by Chinese supersonic cruise missiles such as the C-602 and the C-805, the United States Navy launched an exercise to test its new obscurant, Pandarra Fog, between June
Want China Times Rumors have circulated that the Chinese ambassador to Iceland, Ma Jisheng, was arrested along with his wife Zhong Yue earlier this year accused of being a Japanese spy and has already been executed, but Ma’s real fate has not yet been confirmed,
Washington Examiner The Centers for Disease Control and Prevention, warning hospitals and doctors that “now is the time to prepare,” has issued a six-page Ebola “checklist” to help healthcare workers quickly determine if patients are infected. While the CDC does not believe that there are
Want China Times China has inadvertently revealed that it is in possession of a DF-26C medium-range intercontinental ballistic missile, informally known as the “Guam killer,” designed to allow China to attack US military facilities in the Pacific in a potential conflict, according to a Sept.
CNBC China created 40,000 new millionaires in 2013, bringing the total to 1.09 million, according to a new study. The growth of 3.8 percent is a bit of an improvement from last year’s 3 percent gain. But it’s still only about half the growth rate
Dan Collins CMR Economy A is sinking in debt with massive government and trade imbalances. Its private Central bank is printing trillions,giving it to their member banks,propping up the stock market, and funding up to 80% of the government debt at each auction. Its labor
If China goes forward on the shale gas revolution…they may need to relocate 1 billion people. Africa here we come.
Dan Collins CMR China has only 2% of the water resources per capita as does the United States. The environment today in China is killing people. After decades of under-pricing the RMB and absorbing the world’s manufacturing capacity it has turned the country into an
Want China Times War won’t end by Xmas if US and China face off: commentary Staff Reporter 2014-09-10 09:09 (GMT+8) In the event of a conflict breaking out between the United States and China, there is not likely to be any quickly won victory, according
The year …1974. Swedish leftists pressure the Swedish government to support North Korea with the purchase of 1,000 Volvo 144 vehicles. But, 40 years later, the cars have never been paid for. Since the 1974 fiscal year, the Swedish Trade and Investment Committee each fiscal
D.Collins CMR Its not just in Russia and China where real economic growth is taking off, in the U.S. today, Twitter has just launched a “buy” button. Want China Times Russia’s state-owned Rostec and China’s Shenhua Group signed a contract on Sept. 4 in China,
Associated Press TOKYO (AP) — Japan’s economy shrank more sharply in the second quarter than first estimated and the latest indicators suggest only a modest bounce back since then. The world’s third-largest economy contracted at an annualized rate of 7.1 percent in the April-June quarter,
As reported this week, Americans not working reached a new record as labor force participation hit its lowest number since 1978 with 92 million Americans no longer working or looking for a job. In addition, full-time employment in the U.S. continues to plummet due to
D.Collins CMR China has ruled over Xinjiang for hundreds of years despite the province being filled with mostly a European-Turkic peoples whom have over the generations acquired a combination of Han and European features. There has been little conflict over the centuries as frankly no
First you outsource the plastic injection parts and metal stampings. Then you outsource the whole part…eventually the final product. Engineering and finally design is also outsourced. What you are left with is a entire country such as the United States which has no machine tool
Shock…China wants a free market in gold not 6 guys locked in a
back room deciding pricing.
Foreigners now have access to China’s gold market after the Shanghai
Gold Exchange (SGE) launched its international board on Thursday.
The yuan-denominated board was opened in the China (Shanghai) Pilot Free
Trade Zone (FTZ), a move to encourage foreign participation in China’s
tightly controlled gold market. The launch will mark the first time China
has allowed foreign investors to participate in the country’s gold trade.
Despite being the world’s largest producer and consumer of the precious
metal, China has little say over the pricing of gold in the global market.
Authorities hope to gain greater influence over pricing by granting global
investors access to the country’s 3.2 trillion yuan (522.8 billion US dollars)
gold trading market.
The new international board hopes to challenge current gold market leaders
London and New York. So far, it has attracted dozens of foreign members,
including renowned international commercial and investment banks but it did
not release their names.
Gold contracts listed on the SGEI will include a 99.5 percent 12.5 kg contract
widely traded among central banks and bullion investors on the global market,
a 99.99 percent 1 kg contract traded in China’s domestic gold market and
100 gram contract of the same purity. Daily price volatility will be capped
at 30 percent on either side of the closing price from the previous day.
“The international board has made China’s opening up of the gold market a
reality,” said Xu Luode, the SGE Chairman, adding that growing participation
and rising trading volume will make China a real international market for gold.
“For years, the gold price in the Chinese market has been shadowing that in
the west. Overnight trading in the New York and London exchanges would weigh
on gold prices in China the next day,” Xu said. “If China wants to have greater
pricing power over the bullion, it has to first expand the trading market,” said
Zhao Qingming, chief macroeconomic researcher with China Financial Futures Exchange.
The international board is the first step for China to transform its gold trading
exchange into a regional trading center for precious metals, Zhao added. Gold contracts
denominated in Chinese renminbi will allow gold pricing to better reflect trading
activities and demand in China
The SGE has been the top spot gold trading location in the world for 7 consecutive
years with trading volume reaching 11,600 tons in 2013.”A benchmark price for gold
could emerge from trading in the Shanghai FTZ and become a potential factor, along
with prices in established regional trading centers, to shape global price for
bullion in the future, “said Zhou Hao, China economist with Australia and New
Yuan-denominated gold contracts also add a new investment option for offshore
investors holding Chinese currency. Global use of the Chinese currency has experienced
exponential growth in recent years, as renminbi assets, including deposits, bonds and
loans, have reached 1.88 trillion yuan as of the end of last year. It was virtually
nothing four years ago, according to the Asia Securities Industry and Financial
Markets Association (ASIFMA).
Launching an international board for yuan-denominated gold contracts, is part of a
broader effort by Chinese authorities to broaden the range of financial products and
increase the renminbi’s appeal as an investment currency, according to Zhou.
“When there is more viable renminbi investment options available in the market,
investors will be more willing to hold renminbi assets.” Zhou said.
The Fog of War
Want China Times
To defend its carrier battle group from a potential attack by Chinese
supersonic cruise missiles such as the C-602 and the C-805, the United
States Navy launched an exercise to test its new obscurant, Pandarra Fog,
between June 21-25 this year near the island of Guam according to National
Defense, a monthly magazine operated by the Russian defense ministry.
The USS Mustin and the USS Wayne E Meyer, two Arleigh Burke-class guided
missile destroyers, were tasked with protecting the USS Frank Cable, an
Emory S Land-class submarine tender, which was to be disguised as an
aircraft carrier or some other large vessel of the United States Navy
during the exercise. The destroyers released the carbon fiber clouds known
as Pandarra Fog to defend the submarine from simulated incoming enemy
anti-ship cruise missiles.
Pandarra Fog was developed by the US Navy with the threat of Chinese missiles
in mind to defeat the guidance systems of missiles aimed at its ships.
The Russian military magazine stated that one advantage of Pandarra Fog is
that it is very cheap compared to the other ways of intercepting missiles.
The obscurant’s weakness is that it can’t be used in bad weather.
The magazine stated that another weakness of Pandarra Fog is that it can
damage the radar systems of the destroyers releasing it as well. Generating
Pandarra Fog also produces enough heat for infrared homing missiles to track
targets. The Chinese PL-16 anti-radiation missile is also capable of
paralyzing US warships before they have a chance to release the fog.
Want China Times
Rumors have circulated that the Chinese ambassador to Iceland, Ma Jisheng,
was arrested along with his wife Zhong Yue earlier this year accused of
being a Japanese spy and has already been executed, but Ma’s real fate has
not yet been confirmed, according to the Hong Kong-based Mingjing News.
A source said Ma was recalled from Iceland on Jan. 23 and that he and his
wife were immediately arrested by the authorities. The Chinese government
is said to believe that he shifted his loyalties to Japan when he served
at China’s embassy in Tokyo between 2004 and 2008.
Ma did not return to Iceland from China in March as originally expected
and his name has been deleted from the official website of the embassy,
although his most recent article, in which he condemns Japanese prime
minister Shinzo Abe for visiting the Yasukuni Shrine, which commemorates
14 A-Class Japanese war criminals along with other war dead, can still be
seen on the site. This has fuelled rumors of his arrest and ongoing
detention, as well as suggestions that he may already have been executed.
Hong Lei, the spokesperson of the Chinese foreign ministry said that he
had no information on the matter.
Zhu Jianrong, a Chinese professor from the Tokyo-based Toyo Gakuen University
was also arrested in China last July on suspicion of being a Japanese spy,
despite Zhu’s reputation as a fervent Chinese nationalist who was opposed to
the Japanese move to nationalize the disputed Diaoyutai (Diaoyu or Senkaku)
islands which China and Taiwan also claim.
Zhu was eventually released this January, however several Japanese newspapers
believe that the political struggle that has been taking place in Beijing
since Xi Jinping became the president of China is the key reason why so many
well-known Chinese diplomats and scholars have been arrested. People with a
Japanese background have been arrested not because they are really working
for Japan, but because their loyalty to the new Communist leadership is in
question, the report said.
The Centers for Disease Control and Prevention, warning hospitals and doctors
that “now is the time to prepare,” has issued a six-page Ebola “checklist”
to help healthcare workers quickly determine if patients are infected.
While the CDC does not believe that there are new cases of Ebola in the
United States, the assumption in the checklist is that it is only a matter
of time before the virus hits home. For example, one part reads: “Encourage
healthcare personnel to use a ‘buddy system’ when caring for patients.”
Another recommends a process to report cases to top officials:
Plan for regular situational briefs for decision-makers, including:
– Suspected and confirmed EVD patients who have been identified and
reported to public health authorities.
– Isolation, quarantine and exposure reports.
– Supplies and logistical challenges.
– Personnel status, and policy decisions on contingency plans and staffing.
The checklist has been distributed to major hospitals and even little ones,
including an urgent center in Leesburg, Va.
“Every hospital should ensure that it can detect a patient with Ebola,
protect healthcare workers so they can safely care for the patient, and
respond in a coordinated fashion,” warns the CDC.
Want China Times
China has inadvertently revealed that it is in possession of a DF-26C
medium-range intercontinental ballistic missile, informally known as the
“Guam killer,” designed to allow China to attack US military facilities
in the Pacific in a potential conflict, according to a Sept. 8 article
on Strategy Page, a Washington-based website covering global military
The website stated that the DF-26C missile appears to have a range of
3,500 kilometers. It is designed based on the earlier DF-21 missile.
The DF-26C is considered a threat to US national security because it is
capable of hitting US military facilities in Guam. Even though China has
a tradition of keeping its weapons secret, overseas governments and media
outlets are able to discover them through satellite photos or curious
Chinese military enthusiasts taking cell phone photos and posting them
on the internet.
The United States was able to monitor China’s test of the DF-41 ICBM,
which can carry multiple warheads, with satellites and other air, land,
and sea-based sensors back in 2012. The People’s Liberation Army never
displays the DF-41 missiles in public but photos of them have been
circulating on the internet.
Strategy Page said China, which is believed to have more than 400 nuclear
warheads, has very few ballistic missiles with the ability to reach the
continental United States. The website also said that about two thirds
of China’s warheads are believed to be in missile warheads, most of them
DF-21s and these will be replaced by DF-26Cs. For this reason, a nuclear
strike against Guam in a potential war between China and the United States
over the Western Pacific is a distinct possibility, the report said.
China created 40,000 new millionaires in 2013, bringing the total to
1.09 million, according to a new study.
The growth of 3.8 percent is a bit of an improvement from last year’s
3 percent gain. But it’s still only about half the growth rate of 2010
and 2011, suggesting that China’s economic slowdown and the government’s
crackdown on corruption is slowing its millionaire manufacturing machine.
According to the Hurun Research Institute, the number of people in China
with personal wealth of 10 million yuan—or $1.6 million—in mainland China
reached 1,090,000, up from 1,050,000 in 2012. The number of people in
China worth 100 million yuan, or $16 million, increased by 2,500 people
The slower millionaire growth comes as sales of high-end luxury goods in
China—everything from watches and wine to handbags and Lamborghinis—have
also cooled. But Rupert Hoogewerf, chairman and chief researcher of the
Hurun Report, said this year’s millionaire growth was still solid.
“Although we have been seeing a slowdown in spending, the money is still
very much there,” he said in the report. The report said 55 percent of
the millionaires are private business owners. One in 5 are senior executives
at large companies and 15 percent are listed as “real-estate investors.”
Only 10 percent are described as “professional stock market investors,”
or those whose main source of income is stocks and financial investments.
Beijing and Guangdong have the most millionaires, with 192,000 and 180,000
respectively, followed by Shanghai with 159,000. Yet Shanghai had the fastest
growth of millionaires, adding 12,000 millionaires in 2013. Beijing and
Guangdong each added 8,000 millionaires, and Shenzhen added 4,000.
Read MoreCities with the most millionaires per capita
Estimating people’s private wealth in China is a difficult task, given the
lack of transparency and unreported wealth and income. Hurun Report said it
uses a “bottom-up” and “top-down” approach, looking at sales of high-end
real estate, sales volume of luxury cars, income-tax returns, the registered
capital of companies and other high-end consumer indicators. It also uses
measures of gross domestic product and gross national product.
Economy A is sinking in debt with massive government and trade imbalances.
Its private Central bank is printing trillions,giving it to their member
banks,propping up the stock market, and funding up to 80% of the government
debt at each auction. Its labor force participation rates are down to 62%.
Half of the countries homes require a check from the government to sustain
themselves. It’s once proud industrial centres look like they have been
bombed and are littered with “check cash now” and liquor stores.
Half the country is on drugs.
Economy B is hitting new records on their trade surplus which in August rose
9.4%, while imports fell 2.4%. Country B’s monthly trade surplus reached
$ 49.83 billion, once again rewriting their July record of $ 47.3 billion.
The economy is growing at a sluggish “7%” and the country is barely keeping
up with placing all of the engineering graduates each year. Their factories
struggle to find workers as their pay checks are rising each year by up to 15%.
The country has put restrictions in place to stop people from buying homes
and cars with cash.
If anyone had bothered to watch CNBC anymore they would of course know…
you put you money in Economy A.
If China goes forward on the shale gas revolution…they may need to relocate 1 billion people. Africa here we come.
China has only 2% of the water resources per capita as does the United
States. The environment today in China is killing people. After decades
of under-pricing the RMB and absorbing the world’s manufacturing capacity
it has turned the country into an environmental wasteland. People with
money are fleeing…and others may follow if China does not stop oil
companies in China from extracting shale gas in China.
According to the World Energy Council’s latest report, the lack of
water may severely limit the development of China’s shale gas. China
has the world’s largest recoverable shale gas reserves, but 61% are
located in the highly drought and facing water stress areas.
Shale resources require huge amounts of water in the extraction process
including the exploitation of clean water. The water resources of China
are under extreme pressures as agriculture, families, and industry compete
for the water that is left.
Huge areas of the country are drying up and turning into desert. The North
China industrial-intensive areas have the largest problems with water
shortages more than half of China’s water resources are used in industry.
Despite the environmental concerns, Chinese energy giants PetroChina and Sinopec
are talking up shale potential in the country and making huge forecasts on
bringing new shale oil out of the ground in China. If that happens the population
pressures in China may be completely untenable, at that point…the large
uncultivated, fertile countries of Africa are going to start to look real
nice for emigration.
Want China Times
War won’t end by Xmas if US and China face off: commentary
Staff Reporter 2014-09-10 09:09 (GMT+8)
In the event of a conflict breaking out between the United States and China,
there is not likely to be any quickly won victory, according to Chris Dougherty,
a research fellow from the Washington-based Center for Strategic and Budgetary
Assessments, in an article written for The National Interest magazine on
Sept. 5, citing the premature predictions that World War I would end by
Christmas 1914, over in a few short months.
As well as making reference to the frequent comparisons of the network of
connectedness in the world in 1914 and in 2014 in the centenary of the outbreak
of World War I, Dougherty said that there is another more worrying similarity
between the world then and now, which is the failure of both sides to prepare
for the possibility of a protracted conflict based on the flawed belief that
conventional war between major powers will be brief and decisive.
Dougherty said that the United States today is not the only major power that
believes modern conventional war is short and decisive, as opposed to its
experience with “irregular” warfare in Iraq and Afghanistan. According to
Dougherty, China has spent at least 20 years developing its “anti-access/area-
denial” strategy, designed to hold US forces at bay while the People’s
Liberation Army takes action to invade Taiwan or seize disputed territories
from its neighbors in the South China Sea.
The article said that China relies heavily on conventional cruise and ballistic
missiles to strike at US air bases and naval forces as well as those of its
regional allies and partners. He added however, that China is unlikely to win
a short and decisive conflict before the United States can bring its full
military power to bear as it predicts. “China’s arsenal of missiles is prodigious,
but their high cost and the length of their production process make these
weapons a poor instrument for protracted warfare,” said Dougherty.
The article goes on to say that the United States is entering an era in which
its conventional military dominance may be increasingly challenged by a host of
rivals such as China, Iran, and a resurgent Russia. Dougherty suggests that
Washington and its allies prepare for a long and destructive conflict. “China
likely poses the greatest long-term threat.”
The year …1974. Swedish leftists pressure the Swedish government to
support North Korea with the purchase of 1,000 Volvo 144 vehicles. But,
40 years later, the cars have never been paid for. Since the 1974 fiscal year,
the Swedish Trade and Investment Committee each fiscal year has sent the bill
to North Korea but has never gotten paid. Interest alone has now reached
300 million euros.
Sweden is not alone in falling into the North Korean “order” trap with bills
from many countries going uncollected. Reports of unpaid Rolex watch orders
and Benz taxi’s have also surfaced.
Its not just in Russia and China where real economic growth is taking off,
in the U.S. today, Twitter has just launched a “buy” button.
Want China Times
Russia’s state-owned Rostec and China’s Shenhua Group signed a contract on Sept.
4 in China, planning to jointly develop the Augustine gold mine area in Siberia
and the Russian Far East, as well as construct a coal harbor on site. It is
the latest deal in furthering cooperation between the two nations over energy
production, the Shanghai-based Yicai.com reports.
The total investment will reach around US$8-10 billion, including the joint
development of the coal mine area, infrastructure, power generation facilities
and high-voltage transmission lines that can export electricity to China, the
report said, citing Rostec. They plan to start building the project by the end
of this year, and will begin production in 2018.
Sergey Chemezov, Rostec’s CEO, said his company and Shenhua will each take a
stake of 50% of the joint venture, which is expected to have a return rate of
But its not just in Russia and China where real economic growth is taking off,
in the U.S. twitter has just launched a “buy” button.
TOKYO (AP) — Japan’s economy shrank more sharply in the second quarter
than first estimated and the latest indicators suggest only a modest
bounce back since then.
The world’s third-largest economy contracted at an annualized rate of
7.1 percent in the April-June quarter, according to updated government
figures Monday. The initial estimate released earlier this month said
the economy contracted 6.8 percent. Business investment fell more than
twice as much as first estimated.
The economy’s contraction was expected after Japan increased its sales
tax from 5 percent to 8 percent on April 1. So far, data for the current
July-September quarter suggest any rebound in growth is likely to be
modest and slow in materializing.
A government survey of “economy watchers” released Monday showed confidence
in the economy’s prospects deteriorated in August. Business activity surged
early in the year, with the economy growing 6 percent in January-March, as
consumers and businesses stepped up purchases to avoid paying more tax.
Prime Minister Shinzo Abe has championed an aggressive stimulus program
aimed at ending chronic deflation that has discouraged corporate investment
and dragged on growth. A sustainable recovery will require strong corporate
and private spending, since exports and public spending have so far done
little to lift growth.
Abe will be watching data from the current quarter as he decides later in
the year whether to go ahead with a further 2 point increase in the sales
tax to 10 percent in 2015. Surveys show the public opposes a further tax
increase, though increases are needed to counter ballooning public debt,
which now is more than twice the size of the economy. The revised data
Monday show business investment fell more than twice as much as estimated
before, or 5.1 percent, while private residential spending sank 10.4
percent in annual terms.
“Theoretically, there should be no impact from the consumption tax
increase on corporate spending or long-term corporate planning, but a
large number of Japanese corporations seemed to see a large impact from
the hike on final demand,” said Junko Nishioka, an economist at RBS
Japan Securities in Tokyo.
“We are not that pessimistic for the future picture of the Japanese
economy,” Nishioka said, forecasting a “V-shaped recovery,” supported
by stronger wage growth. Conditions remained weak in July. Real incomes
fell 6.2 percent from a year earlier and household spending dropped.
The survey of economy watches, a grassroots assortment of service
industry workers and others thought to have a good real-time sense
of business activity, was at 47.4 in August, down from 51.3 in July
and the first drop in five months. “Industrial production was still
2 percent below the second quarter average in July, and we have yet
to see a turnaround in capital spending,” Marcel Thieliant of Capital
Economics said in a commentary.
As reported this week, Americans not working reached a new record as labor force
participation hit its lowest number since 1978 with 92 million Americans no longer
working or looking for a job. In addition, full-time employment in the U.S.
continues to plummet due to insane tax laws and inflated health costs and regulations.
America is now practising ” NO CUP” economics. Hard-core Bro!
China has ruled over Xinjiang for hundreds of years despite the province
being filled with mostly a European-Turkic peoples whom have over the
generations acquired a combination of Han and European features.
There has been little conflict over the centuries as frankly no
one wanted to go to this desolate, desert province and the Uighur’s
of the region were largely left to themselves.
The original inhabitants as found in archeological remains were
of European origin with red and blond hair and sharing very similar
textile production processes as the ancient celts. Google “Xinjiang
Mummies” for more information.
Over the last decades with the rise of China, there has been an increasing
westward migration of Han Chinese into the province which has turned the
ethnic balance in the region to a majority Han Chinese and has left the
Uighurs at about 46% of the population. In order to encourage Chinese dominion
over the region the country has encouraged poor settlers into the province.
It was basically the same strategy the Mexican government is currently
using on the United States southern border.
What is stirring tensions more now is the fact that the Han Chinese are
better educated and harder working. They are pushing out the Uighur’s in
business ,schools, and generally marginalising the native group. In most
cases, the Uighur people cannot even speak decent Mandarin Chinese which
put them at an impossible disadvantage to compete for jobs in modern China.
The Uighur’s are resting now more than ever, launching terrorist attacks
against innocent people all over the country.
To deal with the threat.. China has implemented a new and controversial
plan to fix the problem once and for all. That solution is to dilute the
gene code and to encourage “Hanization” of the province.
Authorities are offering rewards of 10,000 yuan ($1,600) a year to promote
intermarriage in restive Xinjiang between ethnic minorities and China’s
dominant Han ethnic group according to the state media.
As reporting in the state media..
“We are advocating the intermarriage of Han and ethnic minorities to promote
positive energy,” local official Zhu Xin said in a media report postedlast
week on the website of the Bayingol Mongolian Autonomous Prefecture government.
The programme also provides health care, housing, employment, educational and
other benefits for intermarried households and would contribute toward the
realisation of the “Chinese dream”, he added, employing a favoured slogan of
Chinese President Xi Jinping.
Last month a renewed push by authorities in China’s Tibet region to encourage
intermarriage between Tibetans and Han Chinese similarly made headlines.
A years-long effort in the region had led to double-digit increases
in the intermarriage rate.
If you can’t get them out…breed them out.
First you outsource the plastic injection parts and metal stampings.
Then you outsource the whole part…eventually the final product.
Engineering and finally design is also outsourced. What you are left
with is a entire country such as the United States which has no
machine tool industry left to speak of. The country made more
steel in 1920 than it does today despite global steel production
being up over 100 times. What we are left with now, is a second rate
engineering power without an industry which will increasingly be reliant
on government protected, defence contractors that could not compete
in a free market. The results are shockingly clear…the new American
fighter the F-35 is not capable. Even in drone technology the U.S
is getting surpassed despite probably investing 100 times what the
Want China Times
The People’s Liberation Army’s CH-4 unmanned aerial vehicle (UAV) is
receiving high-profile publicity in China after being touted as being
superior in all key indicators to the American MQ-1 Predator.
The CH-4, otherwise known as the Cai Hong-4 or Rainbow-4 drone, was
developed by the China Academy of Aerospace Aerodynamics of China
Aerospace Science and Technology Corporation (CASC). The drone was most
recently on display at the 2014 Tianjin International UAV and Model
Exhibition on Aug. 29, just days after its use in the multinational
Peace Mission 2014 military exercise in Inner Mongolia featuring member
nations of the Shanghai Cooperation Organization.
PLA Air Force spokesperson Shen Jinke said on Aug. 26 that during Peace
Mission 2014 the CH-4 was “tasked with surveillance, reconnaissance,
and ground attacks, [and] will play a vital role in fighting terrorism.
” Feng Aiwang, commander of the exercise’s PLA Air Force battle group,
later said that the CH-4 hit every one of its targets in several missile
firings, with national broadcaster CCTV also airing rare footage of a
missile hitting a simulated enemy vehicle.
The CH-4 has been dubbed the Chinese version of the US MQ-1 Predator
developed by General Atomics, though Chinese state media is claiming
that the CH-4 is superior in just about every way. In recent television
interviews, CASC researchers Chen Hongxin and Li Pingkun revealed the
specifications and capabilities of the CH-4 to a wider audience, adding
that the drone was first developed in 2010 and conducted its maiden flight
in September 2011.
According to Chen, the CH-4 has a maximum takeoff weight of 1,330 kilograms,
a maximum payload of 345kg, a service ceiling of 8,000 meters, endurance of
38 hours and a maximum range of 3,500 km. The drone’s military applications
include reconnaissance, surveillance, targeting, intelligence gathering,
electronic warfare missions, border patrol, island defense and anti-
terrorism, while civilian applications include emergency communications,
geological mapping and exploration.
Li said that the CH-4 has a long wingspan of 18 meters to give the UAV more
lift, even though the length of the drone is less than 9 meters. The CH-4
is also extremely light as it is made with more than 80% composite materials,
Li also revealed that the CH-4, which can launch missiles from 5,000 meters
up in the air, could hit both land and sea targets with a margin of error
of less than 1.5 meters. The UAV is capable of carrying four guided missiles
or bombs, and up to six in emergency situations, he added.
By comparison, the MQ-1 Predator has a wingspan of 15 meters, weighs 1,020kg,
has an effective maximum payload of 204 kg, a service ceiling of 7,600 meters,
endurance of 24 hours and a maximum range of 1,100 meters.
China Investing – Everything Has Changed
Former CEO at An Zhong (AZ) Investment
Sep 4 2014
In the past week a friend from Singapore and my own father asked me
to put together some thoughts the “China” market for foreign investors.
The impetus for this request is undoubtedly the recent upswing in the
major market indexes in A-Share equities (about 14% this summer) and
to a lesser extent my years on the ground in Shanghai. First off,
everything has changed in the past few years.
Jim Chanos quipped back in Sept of 2012 that China is a classic
emerging market roach motel. I laughed as well, but not because I
agreed with his metaphor, but because he was missing outsized risk
adjusted returns in the fixed income and currency market during that
time. Once again, my favorite theme, asset allocation.
There’s been a rush to introduce a number of China ETF’s and while
more products is almost always better, there have been far too
few choices. The following chart summarizes the past two years using
two simple indexes, the CSI300 (dominated by banks and large SOE’s)
and Chinex (micro caps and new IPO’s).
Of course the usual caveats apply about past performance, but why hasn’t
any large ETF provider launched a pure A-Share micro cap ETF? There is
a DB product (ASHS) tracking the CSI500, but that is more of an SME product
and predictably, performance is just about in the middle of the above chart.
This is not an endorsement to run out and buy the first Chinex ETF, but it
is important to understand that the A-Share market has become more nuanced.
WHAT TO DO? My advice is to allocate money to pure A-Share ETF’s (PEK for
large caps and perhaps ASHS for small caps until a Chinex ETF becomes
available). Do not purchase hybrid funds that include H-Shares or Chinese
companies listed abroad since they introduce different systematic risks.
If your China allocation is 10% of your portfolio, I would not suggest
buying 5% PEK and 5% ASHS, as there is a much bigger asset class to
consider, fixed income.
My preference for the China Fixed Income market is well documented and I
continue to believe the asset class will perform, particularly if the dollar
remains strong, as the RMB should keep pace. Investors simply need to
understand a few rules: 1) Defaults are going to rise, 2) The waterfall
of recovery is not defined and has not been truly tested, 3) The yield pickup
in Corporate bonds is not satisfactory for professional investors, and 4)
There is no reason to take duration risk. This leads to a very narrow window
of government bonds and deposits. But make no mistake, this asset class has
been lucrative on a risk adjusted basis as the underlying assets are high
quality. CYB is a good example returning 2% annually for the past few years
and there are plenty of Dim Sum bond funds that offer almost twice this
with a bit more risk including CHLC and DSUM.
Back to asset allocation. With a bit of persistence and searching, gaining
low risk exposure to the China fixed income market should occupy a portion
of your China exposure if for nothing else to decrease the volatility of
the equity portion.
Final note on Fixed Income
There is about to be a massive shift in the availability of fixed income
securities as regulators continue to open up the market, in particular
giving foreign managers access to the inter-bank market. This will unleash
a new stream of (R)QFII products with access to a variety of securities that
heretofore were unavailable to foreign managers and their clients. For
example, while money market rates have been coming in on the mainland, the
7-day repo was quoted at 3.39% yesterday, a fine return for AA- risk and a
low volatility currency. While this is exciting for managers, investors
must be vigilant as the rules listed above still prevail and experienced
fixed income managers are few on the ground in China.
The St.Louis Fed this week, one of the most rational regional reserve banks
issued a report trying to figure out why their is no inflation. With medical
care and education costs up 10X in a decade and food prices reaching all time
highs, the very premise that there is no inflation is laughable. We live in
a global economy and inflation is everywhere across the world in countries
such as China, India, and Brazil. These are the countries that have jobs
and have benefited from global trade. While product prices have kept flat
in the U.S. thanks to low-cost global manufacturing, every other prices
inside the U.S. has skyrocketed. What did it cost to fix your care this
year compared to 10 years ago? Despite all of the evidence, the Federal
Reserve clings to the notion of low inflation as it allows them to continue
to print money and give it to their member banks.
The St. Louis Federal Reserve has issued a paper saying it has the answer to
why we have such low inflation which they believe to be in large part
consumers and their “willingness to hoard money.” They cite the following
statistics, that the during these “low inflation” years the Fed has had six
years of a zero interest rate policy and as has pushed its balance sheet to
nearly $4.5 trillion. Banks now have put away close to $2.8 trillion in reserves,
and households are sitting on $2.15 trillion in savings—about a 50 percent
increase over the past five years.
“So why did the monetary base increase not cause a proportionate increase in
either the general price level or (gross domestic product)?” economist Yi Wen
and associate Maria A. Arias asked in the St. Louis Fed paper. “The answer lies
in the private sector’s dramatic increase in their willingness to hoard money
instead of spend it. Such an unprecedented increase in money demand has slowed
down the velocity of money.”
More bonds were sold in the offshore renminbi market in the first half of 2014
than in the entire previous year, according to Thomson Reuters data. HSBC, the
top arranger of offshore renminbi debt offerings, expects sales of new bonds and
certificates of deposit to total Rmb520bn-Rmb570bn (US$84bn-$92bn), up from
about Rmb371bn in 2013.
China has stepped up efforts to promote the use of its currency overseas
in recent months, designating clearing houses for the renminbi in global
financial centres such as London, Frankfurt and Paris and relaxing restrictions
on cross-border flows both into and out of China.
This has helped stimulate demand for securities denominated in the Chinese currency.
“Compared to a few years ago, liquidity in the CNH market has improved a lot, the
pool of money available has increased, and the push for the internationalization of
the renminbi has intensified,” NAB’s Nip said. “More and more European funds, as well
as others, have expressed interest in CNH. The market is developing – I would say –
China now winning Nuclear power plant construction contracts
in Eastern Europe, traditionally the technological vassal states
of Germany and France.
As reported in the “China Daily”, China and Romania signed a
nuclear cooperation framework agreement, Romania sent on China
to help it revitalise its aging nuclear power plants.
With the Central European countries seeking to reduce energy
dependence on Russia, more and more Chinese nuclear power companies
are expected to enter the country and gain greater market share.
The agreement is in Premier Li Keqiang and after visiting Romanian
Prime Minister Victor Ponta talks signed the agreement “shows the
two governments to strengthen cooperation in the peaceful uses of
nuclear energy wishes.”
Taiwan is taking correct actions in bolstering their birth rate, however,
with such a large population on a tiny island one would think it might
make sense to let the population decline.
Meanwhile in America and Europe their solution is to tax the indigenous
European populations while bringing in people from third world countries
and putting them on welfare. Which solution is right? In a hundred years
Taiwan will still be Taiwan, however, Europe will more closely resemble
the Middle East, and the U.S. will be the northern state of Mexico.
From Want China Times…
Almost NT$1bn project to boost birthrate
By Stacy Hsu / Staff reporter
Thu, Aug 28, 2014 – Page 1
The Health Promotion Administration yesterday unveiled a long-awaited
subsidy scheme for couples seeking assisted reproductive technology
treatment, as part of its efforts to salvage the nation’s dismal
“The nation is faced with two grave challenges: a fast-aging population
and a dwindling birth rate. According to the UN’s world fertility patterns
report last year, Taiwan’s fertility rate ranked at the bottom among
193 nations,” Minister of Health and Welfare Chiu Wen-ta (