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Chinese government bans Windows. 15% of Windows OS to be replaced per year in China

Want China Times China has decided to replace 15% of the Windows operating systems on its government computers with domestic operating systems each year, hoping to have made a significant impact by 2020, reports Duowei News, a media outlet operated by overseas Chinese, citing the

SH-H.K. Connect creating second largest equity mkt in the world

 

$20 million hoard found in Chinese official’s home: Report

CNBC A minor Chinese official rose to infamy after anticorruption detectives discovered more than $20 million worth of renminbi in cash, 37 kilograms of gold bars and 68 property ownership documents in his family home, according to The New York Times’ Sinosphere blog. Ma Chaoqun

Chinese Markets- 14NOV2014

 

The Russians Have Persuaded The Chinese To Bail Out Their Oil Industry

Yahoo Last month Russian Finance Minister Anton Siluanov announced that Rosneft, Russia’s largest oil company, had requested 2 trillion roubles (then $49 billion) from the state’s National Wealth Fund (NWF) to help it meet its funding requirements. The request was refused but it left questions

Qatar to become Middle East clearing hub

(Reuters) – Qatar will become the Middle East’s first hub for clearing transactions in the Chinese yuan, in a step that could over the long run help Gulf oil exporting countries reduce their dependence on the U.S. dollar. Industrial and Commercial Bank of China’s Doha

South Korea unveils plans to become Yuan clearing hub

South Korea unveils plans to grow as global yuan hub
South Korea will launch direct trading between the yuan and the won in December and adopt a series of measures to make the country an international hub for growing yuan businesses, the government said on Friday.

Alipay in challenge to Union Pay

Reuters Online threat to China’s UnionPay outweighs foreign card rivals Chinese bank card operator UnionPay, which may soon have to defend its near monopoly against Visa and MasterCard, faces a much bigger threat from online payment providers such as Alipay, and is upgrading its systems

Alibaba praised for helping raise Chinese spending

Consumption rose to 48.5 percent of GDP in the first nine months of 2014, up from 45.9 percent a year earlier. Top leaders are praising Ali Baba for unleashing the inner-sprendthrift of Chinese consumers.  

Qatar Investment Authority joins forces with CITIC Group

Qatar’s sovereign wealth fund is displaying new prudence in its pivot to Asia. The Qatar Investment Authority has announced it will join forces with China’s CITIC Group to invest $10 billion in the country over five years. The tie-up reflects the challenges of putting large

Chinese, Canadian central banks agree to 200 bln yuan currency swap

BEIJING (Reuters) – The central banks of China and Canada have agreed to a currency swap worth 200 billion yuan ($32.67 billion) or C$30 billion, according to a Canadian government statement issued at a meeting of Asia Pacific nations on Saturday.  

Japan’s new QE policy to boost China’s stock market: economy

The stars are aligning for Chinese equities in 2015. First you have the H.K.-Shanghai Connect scheme which will allow foreigners to directly invest in A-Shares in the Chinese market but you also have global QE and in this case Japanese QE which will of course

Swarms of Chinese J-31′s will hand military control of Asian Airspace to China

If you think only the financial and governmental systems are the ones in the U.S that are rotting think again. Military contracting firms have been living high-off-the hog for way too long and have fallen behind. Want China Times The J-31, China’s second fifth-generation stealth

Dan Collins on the Keiser Report

 

Chinese media: “We are the Gold Consumption Super-Power.” Chinese citizens now holding over 6,000 tons

Dan Collins CMR – China officially imported over 1,500 tons in 2013 with some estimates as high as 2,200 tons. This is in addition to the 400 tons they produce annually which is never leaving the Mainland. – China has now declared that its citizens

Chinese government bans Windows. 15% of Windows OS to be replaced per year in China

Want China Times

China has decided to replace 15% of the Windows operating systems on its
government computers with domestic operating systems each year, hoping to
have made a significant impact by 2020, reports Duowei News, a media outlet
operated by overseas Chinese, citing the Chinese-language Beijing Times.

Ni Guangnan, a researcher from the Chinese Academy of Engineering, was cited
as the source of the report. The report is said to have won approval from the
leadership of the government who have instructed government organs to implement
it, the Beijing Times said. Sources said alternative operating systems have not
yet been finalized, however a timetable is in place for the large scale
replacement, which will extend to servers, chips and software.

The China Banking Regulatory Commission (CBRC) has informed banks to adopt
domestic operating systems, said Zhang Long, president of Yunnan Sipu Investment
Group, who developed the SPGnux OS.

The Windows 8 operating system has been banned by the Chinese government,
according to a notice on its official procurement website in May. The notice said
Windows 8 is no longer permitted to be installed on central government computers.
Windows 8 has a function that scans users’ computers regularly, which makes
monitoring of information easier. In other words, Windows systems exert a lot
of control over users’ PCs, Ni Guangnan said.

Cyber security has been an issue of contention between China and the US. China’s
Ministry of Industry and Information Technology said the smartphone dominance of
Google’s Android system was out of control in March 2013. Windows 8 was banned in
May 2014 and after Microsoft was investigated for monopolistic behavior, raising
tensions between the two. Duowei stated that these moves demonstrate China’s
elevation of cyber security to an issue of national security.

 

SH-H.K. Connect creating second largest equity mkt in the world

Number of companies with greater market cap

 

$20 million hoard found in Chinese official’s home: Report

CNBC
A minor Chinese official rose to infamy after anticorruption detectives discovered more than $20 million worth of renminbi in cash, 37 kilograms of gold bars and 68 property ownership documents in his family home, according to The New York Times’ Sinosphere blog. Ma Chaoqun was arrested with his brother in February, and five other family members also have been apprehended, the blog said. But the official’s mother, Zhang Guiying, said her son is honest and that the bounty belonged to her deceased husband, a doctor who accrued the wealth by dabbling in side business ventures. She told reporters in the port city of Qinhuangdao that her son was the victim of a vendetta plot, planned by his boss to prevent Ma Chaoqun from exposing an alleged embezzlement scheme.
Zhang said she packed the cash into more than 40 boxes after her husband died in 2012 and stored them in a closet in the family home. “My husband thought it was too much trouble going to the bank to get money,” Zhang said, according to Beijing tabloid The Mirror. “Some of the money hadn’t been touched for years and was growing moldy,” she said, according to The Beijing News.

 

Chinese Markets- 14NOV2014

chinese markets

market

 

The Russians Have Persuaded The Chinese To Bail Out Their Oil Industry

Yahoo

Last month Russian Finance Minister Anton Siluanov announced that Rosneft, Russia’s largest oil company, had requested 2 trillion roubles (then $49 billion) from the state’s National Wealth Fund (NWF) to help it meet its funding requirements. The request was refused but it left questions over how the oil company planned to meet its $30 billion in debt repayments due over the next year after the oil price collapse of recent months.

We now have the answer — a large part of it will be paid by China.

As part of the deal struck between China and Russia at the Asia-Pacific Economic Cooperation (APEC) Forum in Beijing, Rosneft has agreed to sell a 10% stake in a Siberian unit to state-owned China National Petroleum Corp. The news was seen as evidence of Moscow seeking to deepen ties with Beijing as Western sanctions over Ukraine have left it isolated from European and American markets.

It is the second such deal to have been struck this year after a $400 billion agreement was reached in May between state-owned gas companies Gazprom and CNPC (China National Petroleum Corporation).

Not only have the deals helped in part to sooth fears over Russia’s stagnating economy but they now also appear to have backstopped Russian companies that have been frozen out of international capital markets.

A combination of the oil price falling from $115 a barrel in June to below $82 on Wednesday and the collapsing rouble had compounded pressure over recent months. Rosneft’s $30 billion bill went from being worth around 1 trillion roubles in June to around 1.4 trillion as at Wednesday’s exchange rate, while lower oil prices squeezed its revenues.

The Russian business daily Vedomosti quotes Moody’s investor services as saying:
“Rosneft is set to repay $21 billion of debt, which expires between the fourth quarter of 2014 and the first quarter of 2015 [primarily] from its own reserves, which are worth more than $20 billion, and with the help of backup lines of credit from Russian banks of $6 billion.”

Draining the companies capital buffers in this way might seem foolhardy given that the company will still have around $9 billion worth of repayments outstanding and ongoing spending commitments. Here China’s role becomes clear. According to Moody’s, Rosneft “can get significant advances from Chinese state-owned CNPC on account of oil supplies” in 2015, and that should be sufficient to cover the remainder of its debt payments.

The deals have helped bind the corporate liabilities of the two countries together. In essence China is promising to provide the dollar credit line that Russian companies sorely need, and which the Russian state is increasingly withholding, in exchange for increased control over the commodity supplies that its growing economy will require.

However, unlike China’s state-backed firms, Russia’s quasi-state-owned national champion companies are not in as good health as they ought to be.

Rosneft’s third quarter profits were all but wiped out as falling oil prices and the cost of sanctions bit into its bottom line. In September the company pledged to cut up to 25% of the 4,000 staff based at its Moscow headquarters to reduce costs.

Igor Sechin, Rosneft president and close ally of Russian president Vladimir Putin, tried to dismiss fears over the firm on Wednesday saying the refusal of its request for state support was “neither critical nor dramatic” but was careful to leave the door open in case the state alters its position.

However, former finance minister Alexei Kudrin issued a warning to the company over applying for state funds.

“My advice to Rosneft is not to take from the Wellbeing Fund,” he said. “Even if the Wellbeing Fund became simply a source of anti-crisis financing instead of the principal insurance for the pension fund, that means that it will be judged that Rosneft is in crisis. That’s not in Rosneft’s interests.”

The Russian state has already burned through a large amount of its foreign currency reserves defending the rouble, so it may be unwilling to step in to cover corporate debt repayments, which are set to reach $140 billion in 2015.

With their access to Western capital markets blocked by sanctions it appears that Russian corporates will increasingly have to look towards trading partners in the east for support. The question now is whether Beijing will continue to view the deals it has struck as being to its own advantage — especially if commodity prices are set to remain at or below current levels.

 

Qatar to become Middle East clearing hub

(Reuters) – Qatar will become the Middle East’s first hub for clearing transactions
in the Chinese yuan, in a step that could over the long run help Gulf oil exporting countries reduce their dependence on the U.S. dollar. Industrial and Commercial Bank of China’s Doha branch has been appointed as the clearing bank for yuan deals in Qatar,
China’s central bank said on Tuesday.

 

South Korea unveils plans to become Yuan clearing hub

South Korea unveils plans to grow as global yuan hub
South Korea will launch direct trading between the yuan and the won in December and adopt a series of measures to make the country an international hub for growing yuan businesses, the government said on Friday.

 

Alipay in challenge to Union Pay

Reuters
Online threat to China’s UnionPay outweighs foreign card rivals

Chinese bank card operator UnionPay, which may soon have to defend
its near monopoly against Visa and MasterCard, faces a much bigger
threat from online payment providers such as Alipay, and is
upgrading its systems to meet the danger.

Shored up by a raft of protectionist measures, the state-backed
company has grown in just over a decade from an unknown name to
a true heavyweight, commanding 50.6 percent of all the global
cards in circulation in 2013, according to the Nilson Report
statistics newsletter.

China said last month it would open its credit card market to
foreign players following a World Trade Organization ruling in
2012 that it discriminated against U.S. card firms.

The prize for the foreign companies would be access to what is
projected to become the biggest card market in the world by
2020. Transactions were already around 32 trillion yuan
($5.22 trillion) in China in 2013, according to data from the
People’s Bank of China

 

Alibaba praised for helping raise Chinese spending

Consumption rose to 48.5 percent of GDP in the first nine months of 2014,
up from 45.9 percent a year earlier. Top leaders are praising Ali Baba
for unleashing the inner-sprendthrift of Chinese consumers.

 

Qatar Investment Authority joins forces with CITIC Group

Qatar’s sovereign wealth fund is displaying new prudence in its pivot to Asia.
The Qatar Investment Authority has announced it will join forces with China’s
CITIC Group to invest $10 billion in the country over five years.

The tie-up reflects the challenges of putting large sums to work on the
mainland compared with Qatar’s traditional hunting ground in Europe.
Creating value will be the tricky part.

The alliance with China’s top state-owned company is the latest move by the
Gulf fund as it ramps up its exposure to Asia. In October, Qatar bought a
near-20 percent in the Hong Kong operator of Sogo department stores for
$616 million. Earlier this year it picked up a stake in Chinese e-commerce
giant Alibaba and invested in new partner CITIC as the Chinese company
completed a backdoor listing on the Hong Kong stock exchange. Past investments
include stakes in Agricultural Bank of China (Agbank) and in privately-held
CITIC Capital.

 

Chinese, Canadian central banks agree to 200 bln yuan currency swap

BEIJING (Reuters) – The central banks of China and Canada have agreed to a currency swap worth 200 billion yuan ($32.67 billion) or C$30 billion, according to a Canadian government statement issued at a meeting of Asia Pacific nations on Saturday.

 

Japan’s new QE policy to boost China’s stock market: economy

The stars are aligning for Chinese equities in 2015. First you have
the H.K.-Shanghai Connect scheme which will allow foreigners to directly
invest in A-Shares in the Chinese market but you also have global QE and
in this case Japanese QE which will of course find its way to productive
enterprises which are growing…in China. The Mrs. Wantanabe’s of
Japan will continue to sell down their JGB holdings and invest in the
countries arch-rival…. China.

Want China Times

The Bank of Japan announced Oct. 31 that it will step up its purchase
of Japanese government bonds so that its holdings increase at an annual
pace of 80 trillion yen (US$706.1 billion), up from the original 60-70
trillion yen (US$529.5-617.8 billion).

The central bank also said it will triple its purchase of exchange-
traded funds (ETFs) and real-estate investment trusts (REITs). The
Government Pension Investment Fund will slash Japanese debt holdings to
35% from 60% and will double the amount of Chinese and overseas equities
in its investment portfolio to 50%.

All of these signal that Japan has embarked on another round of
quantitative easing (QE). Japan’s economy had stagnated for more than a
decade during the 1990s after the Japanese asset price bubble’s collapse.

In 2013, Japan launched a quantitative easing program, which helped
boost the economy and drive up the inflation rate. The Japanese government
raised the consumption tax rate from 5% to 8% in April and was expected to
hike the rate further to 10% in 2015, causing the country’s gross domestic
product in the second quarter of this year to shrink by nearly 2%.
The weak economic performance has continued in the third quarter.

These developments prompted the government to introduce the new round of
QE program to stimulate its economy. But the most important thing is to
spur domestic demand and investment. During the last two decades, from the
1990s to the present, Japan has experienced several sharp appreciations in
the yen, which has hurt Japanese enterprises’ competitiveness and its
overall national power and resulted in the return of massive Japanese
capital from major markets around the world.

That capital has ended up in the hands of a smaller number of Japanese
enterprises and the elderly. With the value of the yen rising, Japanese who
hold nearly US$20 trillion in personal wealth usually have little interest
in expanding their investment and lack the impetus to increase consumption.
At the same time, they are more willing to park their funds in banks and
buy national bonds to get high returns from the Japanese currency’s
appreciation. Therefore, the new round of QE program should aim to change
the debtor and creditor relationship between Japanese enterprises and
Japanese nationals through the yen’s depreciation and stimulate domestic
investment and consumption.

After the yen’s decline, interest rate swap markets for the yen and the
greenback are expected to do brisk business, which will greatly impact the
global financial markets, particularly the Chinese market. The yen’s
depreciation can also affect the international bulk commodity market,
resulting in huge fluctuations in their prices globally.

Given such a scenario, Chinese foreign trade companies’ costs and benefits
will be directly affected and they could be exposed to enormous risks
stemming from huge fluctuations in foreign exchange rates.

Some financial research companies predict that Japan’s QE monetary policy
will help boost China’s exports, economic growth and the stock market because
if the Japanese economy returns to the recovery track and its stocks start
rebounding, this will help drive its national consumption, restore
enterprises’ confidence in investment and raise Japanese demand for imports
from China.

A rising yen could also result in outflows of sizeable assets from Japan to
China’s assets and stock markets, giving rise to market liquidity.

 

Swarms of Chinese J-31′s will hand military control of Asian Airspace to China

If you think only the financial and governmental systems are the
ones in the U.S that are rotting think again. Military contracting
firms have been living high-off-the hog for way too long and have
fallen behind.

Want China Times
The J-31, China’s second fifth-generation stealth fighter designed by
Shenyang Aircraft Corporation, is capable of outperforming all US
fourth-generation fighters in aerial combat, according to a US fighter
pilot cited in our sister newspaper Want Daily.

With its appearance similar to the US F-22 and F-35 fighters, the J-31
was developed based on US technology stolen by Chinese spies, the pilot
claimed. He gave his view that all US fourth-generation fighters
including the AV-8, F-15 and F/A-18 would be unable to go head to head
against the J-31 in a dogfight. The plane will be the perfect fighter
for the People’s Liberation Army to carry out anti-access and area-denial
strategies in the Western Pacific, he said.

The Chinese fighter will also present a challenge to the F-35 in the
overseas export market, the pilot predicted. It may not be as advanced as
the F-35, but it is much cheaper than its US counterpart. Putting the J-31
on display during the Zhuhai Airshow may signal that China is trying to
attract attention from potential buyers, the pilot said. It will certainly
be more popular among developing nations, he added.

The key weakness of the J-31 and J-20 is that China is still unable to
design sufficiently powerful and reliable engines for them, however.
Until now, China has depended on purchasing engines from Russia. New
designs of Chinese aircraft are now replacing this dependency, though
they are still kept secret, the pilot said. What the United States should
worry about regarding the J-31 is quantity rather than quality, he added.
Though the US has better trained pilots, it will still find it difficult
to face a swarm of J-31s, he said.

J312-152046_copy1

 

Dan Collins on the Keiser Report

 

Chinese media: “We are the Gold Consumption Super-Power.” Chinese citizens now holding over 6,000 tons

Dan Collins
CMR

- China officially imported over 1,500 tons in 2013 with some estimates
as high as 2,200 tons. This is in addition to the 400 tons they produce
annually which is never leaving the Mainland.

- China has now declared that its citizens are privately holding more
than 6,000 tons of Gold turning China into the “Gold Consumption Super-Power”

- China will not release their Gold holdings as they want gold prices
to stay low. Acquiring gold is all part of China’s master plan which the
Chinese press refer to as “Secret Gold Holding Logic” to make Shanghai
the world’s financial centre with the RMB as its central currency.

As most informed individuals know, Gold has been dropping like a rock from
its previous highs of over $1900 an ounce. This has only encouraged more
buying from China, in paticular the fictional character called “Auntie Want”
which represents all of those middle-aged Chinese women with money to burn
that love buying real assets like houses and are gold are now being blamed
for buying over 200 tons in only a few months during the summer when prices
hit lows around $1,250.

Last year, in 2013, China took advantage of falling prices to import more
than $1,500 tons of Gold. This is in addition to the 400 tons they produce
annually which is never leaving the Mainland.

What has people really talking in China is why the government will not
release their holdings in the People’s Bank of China (PBoC).The last time
China released their official holdings was 2009 when they shocked the markets
by showing a massive increase in reserves to 1,054 tons. They have always
promised to release their official holdings numbers every five years. Those
of us that watch China and Gold closely have seen the PBoC’s Gold release
data dates come and go with no release of the banks holdings.
Chinese financial commentators are saying that this is because the PBoC would
spook markets showing that their holdings are now up near 5,000 tons.
This is the last thing the PBoC wants to do as they plan to buy more and
they want to buy as low as possible.

The Shanghai Gold Exchange is now the world’s largest physical bullion
market in the world and all part of the plan. They are set up in Shanghai’s
free trade zone and are opening up gold holdings to foreign investors who
want to keep bullion in China. The Gold contracts are of course priced in
Chinese Yuan. Shanghai has also recently opened a new vault with a
2,000 tons capacity to back up Shanghai’s bid to hold and control global
pricing of the commodity.

While traders in Chicago on the COMEX sit and trade each other paper
contracts all day with neither one actually owning any of the commodity
they are training, the traders in Shanghai will be well-at-ease to know
the physical bullion is actually there.

China’s continuing grip on the global gold market is all part of the plan
according to analysts in the Chinese media. Literally translated it is called
the “Secret Gold Holding Logic”. China needs Shanghai to become a global
financial center. It will surly become one as the RMB goes global, and China
will have the gold reserves to partially back the RMB with a hard asset.
This is the long term plan according to some state media sources in China.

There are some Gold holdings in China which are not secret. Recent numbers have
been released estimating that the Chinese population themselves are now holding
over 6,000 tons of Gold. China has long been trying to get its citizens to invest
in Gold. In fact going back to 2004, the PBoC governor, Zhou Xiaochuan, was nicknamed
“Golds best salesman in the media. The result is today, in China’s Big 5 banks you
can hold gold accounts both paper and physical as well as visiting their “GOLD VIP”
centres to purchase physical bars.

With China now importing more than 1,500 tons annually and the consumers holding
more than 6,0000 tons one commentator in the financial press refereed to China has
the “New Gold Consumption Super-Power”

goldcore_bloomberg_chart4_11-09-14

 

Chinaoil on buying spree as oil price drops

F.T. COM

Chinaoil on buying spree as oil price drops
Neil Hume, Commodities Editor

The trading arm of China National Petroleum Corporation has been on a
huge buying spree over the past month, snapping up millions of barrels
of Middle East crude as global oil prices slumped to the lowest level in
almost four years.

Price reporting data show Chinaoil has bought more than 20m barrels of
Dubai, Oman and Upper Zakum grades in October, many of them from Unipec,
the subsidiary of Chinese state oil company Sinopec.

The purchases have fuelled speculation that China, the world’s largest
energy consumer, is taking advantage of the steep drop in crude prices
to fill its strategic reserves. They also show how state-owned Chinese
companies are taking a more active role in procuring crude oil rather
than relying on trading houses to do it for them.

Citing data from Platts, a leading price reporting agency, traders and
analysts said Chinaoil has bought a record 45 cargoes of the three Middle
East crudes in the past month for delivery in December.

Concerns about a global supply glut drove benchmark oil prices to their
lowest level in almost four years earlier this month. Since reaching
$115 in mid June, Brent, the international oil marker, has fallen
25 per cent, while West Texas Intermediate, the US equivalent, is down
by a similar amount.

On Wednesday they were trading at $87.21 and $82.26 respectively.
It is against that backdrop that Chinaoil started its buying spree.
Analysts say there are several explanations for the high level of crude
purchases.One is buying for China’s strategic petroleum reserve. Energy
Aspects, a London-based consultancy, estimates China has bought 87m barrels
of crude for its reserves this year, a figure that could rise by another
20m before all of its existing facilities are filled.

 

Why stocks are going up….Duh

B1GU6mGIEAAuJqx

 

Look for us on the Keiser Report

Just finished filming a new Keiser Report show for R.T.
Look for it this week!

images

 

China has stopped funding the U.S. debt, Fed has stepped in, China has bought Gold instead

51_201410270809528162

53_201410270809505769

monthly chinese gold imports form H.K

 

Chinese Hackers show off skills that will scare the crap out of you

D.Collins
CMR

First a little background on Chinese tech-heads. First off, they are highly
under-rated. While you hear so much about I.T. people from India or Eastern
Europe, China has a much stronger and deeper pool of tech talent. Chinese
techies you don’t hear much about spend their entire adolescent lives in
internet labs,even sleeping there, as they generally have no hope of getting
a girlfriend in a generation with an excess capacity of males.

I myself attended Tsinghua University, the M.I.T. of China, in the late 1990′s.
Even back then, when computers in China where not as mainstream as now, the
technical talent at Tsinghua was stunning. I remember walking the internet labs
at school and thinking…”Look at the size of the craniums on these dudes. ”
Of course, they couldn’t hold a conversation but they could probably hack
the Defence department, even back then.

What you are about to read now, is an evolutionary result from that time to
now of a society that is highly academically focused and driven and is now
far above the technical capability that is found in the U.S., a society that
relies on importing tech talent.

Now to the story…

Want China Times
GeekPwn held a hack-a-thon in Beijing last week on the 24th and 25th of October
in Beijing. GeekPwn is a platform for tech geeks with “extraordinary ideas” to
demonstrate how they “pwn” — that is, to conquer or to gain ownership over — smart
devices such as smartphones, smartglasses, smart bracelets and smart vehicles.

It was the first ever worldwide security geek contest for smart devices
as reported by Chinese internet services portal Tencent. GeekPwn organiser
Wang Qi showed how to hack into a Tesla smart vehicle with a smartphone.

Wang, formerly the first principal security researcher of Microsoft Asia Pacific
and founder of the China Microsoft Security Response Center, showed attendees how
to hack into a smartphone in under two minutes. He said his team has found similar
security vulnerabilities in as many as 70 mainstream handsets, including Google’s
Nexus 5 and Samsung’s Galaxy S5.

One of the highlights of GeekPwn was when Wang used a smartphone to hack into the
system of a smart vehicle made by US electric car company Tesla. After gaining
control of the car, Wang could use the phone to open or close the doors and trunk,
and could even switch off the engine while the vehicle is still moving. Wang said
it took him and his team of 10 staff only four months to discover this security
flaw and work out how to exploit it.

Tsinghua University professor Duan Haixin revealed how he could take advantage of
a security loophole to effectively turn an electronic banking account into his
personal ATM, without the need of a Trojan or traditional phishing techniques.

Other hacking demonstrations at the event involved the Mi Wi-Fi rounter developed
by Chinese low cost smartphone maker Xiaomi and the 360 Child Guard tracking
bracelet from web security company Qihoo 360.

Wang said awareness over internet security has been on the rise after CIA contractor
Edward Snowden blew the whistle on the wide-scale spying by America’s National
Security Agency last year. The controversial dispute over anti-competitive practices
between 360 and Tencent which erupted in 2010 has also made companies more willing
to spend money and resources on security, he added.

Monetary prizes drawn from an initial prize pool of 3 million yuan (US$490,000) were
handed out to those deemed “winners” from a panel of security experts, organizers said.

nextgov-medium

chinese hackers