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
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
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
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
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,
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
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
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
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
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
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
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
China’s government has announced plans to build a USD 2 billion film studio as part of a national push to expand its cultural influence. The studio in the southwest municipality of Chongqing will include a theme park and tourist attractions, state media reported late Sunday. Construction will begin early next year and is expected to cost 15 billion yuan (USD 2.18 billion).
Officials say they have operating agreements already with several foreign partners. The official Xinhua News Agency said the park would include tie-ins with gaming and online entertainment.
The park will be named after President Xi Jinping’s signature “One Belt, One Road” program, a multibillion-dollar effort to deepen China’s economic and cultural ties with its western and southern neighbors reaching as far as east Africa.
China is already the world’s second-largest film market and home to the world’s largest theater operator, Dalian Wanda, which has purchased American media companies AMC Theatres and Legendary Entertainment. Its signature film studio, Hengdian World Studios, spans almost 3,000 hectares (7,000 acres).
Facing growing domestic demand, Chinese officials and companies have sought to fend off Western film imports by producing more competitive films locally. A national quota permits just 34 Hollywood films to be shown each year in domestic theaters.
Turkish president responds angrily to parliament vote to suspend membership talks
Turkey’s president Recep Tayyip Erdogan ramped up his dispute with Brussels warning he would allow 3m refugees into Europe at a time of mounting political anxiety over the advance of rightwing populists in Austria, Germany and France.
As tension escalates with Mr Erdogan over his clampdown on opponents after a failed military coup in July, officials in Brussels are examining the allocation of €600m in annual financial aid to Ankara as a result of the purge.
Mr Erdogan has previously warned that he could put refugees “on buses” to Europe
WUHAN, Nov. 28 (Xinhua) — China’s 2016 box office sales are expected to exceed the 2015 total of 44 billion yuan (6.38 billion U.S. dollars), the country’s film watchdog said.
By the end of October, box office takings had exceeded 38 billion yuan.
Box office sales in the world’s second largest film market have posted average growth of 35 percent year on year since 2003, said Tong Gang, deputy head of the State Administration of Press, Publication, Radio, Film and Television (SARFT).
In 2015 alone, it grew a whopping 48.7 percent, according to the SARFT.
Tong said that although this year’s growth will be slightly lower than 35 percent due to the Chinese currency’s depreciation, the film market will still see growth.
The country’s film output ranks third in the global market and is expected to exceed 700 by the end of 2016. Sales of film rights to online video sites have raked in 4 billion yuan (560 million U.S. dollars) so far this year.
China’s box office sales have increased from 1 billion yuan to 40 billion yuan in the past decade as the industry has adopted more market-oriented reform measures.
By 2020, annual box office sales are expected to reach 100 billion yuan, according to industry estimates.
Western and NATO allies are falling like domino’s across the world.
First came the Philippines, then Malaysia, and Indonesia and now the
contagion has spread to Turkey with the Turks now looking East and
being drawn into the most dominant economic sphere on the planet.
Fed up with EU, Erdogan says Turkey could join Shanghai bloc
President Tayyip Erdogan was quoted on Sunday as saying that Turkey did not
need to join the European Union “at all costs” and could instead become
part of a security bloc dominated by China, Russia and Central Asian nations.
NATO member Turkey’s prospects of joining the EU look more remote than ever
after 11 years of negotiations. European leaders have been critical of its
record on democratic freedoms, while Ankara has grown increasingly exasperated
by what it sees as Western condescension.
“Turkey must feel at ease. It mustn’t say ‘for me it’s the European Union at
all costs’. That’s my view,” Erdogan was quoted by the Hurriyet newspaper as
telling reporters on his plane on the way back from a visit to Pakistan and
Uzbekistan. “Why shouldn’t Turkey be in the Shanghai Five? I said this to
(Russian President) Mr Putin, to (Kazakh President) Nazarbayev, to those who
are in the Shanghai Five now,” he said.
“I hope that if there is a positive development there, I think if Turkey were
to join the Shanghai Five, it will enable it to act with much greater ease.”
China, Russia and four Central Asian nations — Kazakhstan, Kyrgyzstan,
Tajikistan and Uzbekistan — formed the Shanghai Cooperation Organisation
(SCO) in 2001 as a regional security bloc to fight threats posed by radical
Islam and drug trafficking from neighboring Afghanistan.
Turkish membership of the SCO, which had initially not included Uzbekistan
and been known as the Shanghai Five, would be likely to alarm Western allies
and fellow NATO members.
Kazakhstan, Kyrgyzstan and Uzbekistan speak Turkic languages, and Ankara
signed up in 2013 as a “dialogue partner” saying it shared “the same destiny”
as members of the bloc.
Mongolia, India, Iran, Pakistan and Afghanistan are SCO observers, while
Belarus, like Turkey, is a dialogue partner.
Dialogue partners are entitled to take part in ministerial-level and some
other meetings of the SCO, but do not have voting rights.
Erdogan last week urged Turks to be patient until the end of the year over
relations with Europe and said a referendum could be held on EU membership
AFTER three years of construction, a 712-kilometer quantum communication line has opened in east China, making it the world’s longest secure quantum telecommunications network.
The new quantum communication line links Hefei, capital of Anhui Province, to Shanghai. It is part of a 2,000km quantum communication line connecting Beijing and Shanghai, according to Chen Yu’ao, professor at the University of Science and Technology of China in Hefei and chief engineer of the Beijing-Shanghai quantum communication line. The 712km line has 11 stations.
Quantum communication lines boast ultra-high security. It is impossible to wiretap, intercept or crack the information transmitted through them.
The Beijing-Shanghai quantum communication line is expected to be completed at the end of this year. In August, China launched the world’s first quantum satellite. It was nicknamed “Micius” after a fifth century BC Chinese philosopher and scientist. That line will be connected to the satellite through a station in Beijing, enabling the space-to-Earth quantum communication network.
A Chinese team on Friday won the 2016 ACM Gordon Bell prize, a top honor in high-performance computing, for an application running on China’s fastest supercomputer.
It is the first time a Chinese team has won the award.
The project, named “10M-Core Scalable Fully-Implicit Solver for Nonhydrostatic Atmospheric Dynamics,” presents a method for calculating atmospheric dynamics, according to the Association for Computing Machinery, which presented the award at the International Supercomputing Conference in Salt Lake City in the United States.
“The application can help improve global climate simulation and weather prediction,” said Yang Guangwen, director of the National Supercomputing Center in Wuxi.
The center, also one of the application developers, is home to Sunway Taihulight, the supercomputer that runs the application.
The award shows that Taihulight not only excels in terms of speed, but can also be a powerful platform for a wide range of applications, said Yang.
Since its launch on June 20, Sunway Taihulight has helped research teams in both China and abroad make over 100 achievements in 19 different fields, including meteorology, oceanography, aerospace and biology, Yang said.
According to the International Supercomputing Conference, China has 171 of the world’s top 500 supercomputers, tied for first place with the United States.
Established in 1987, the Gordon Bell Prize is awarded each year at the annual supercomputing conference. It recognizes outstanding achievements in high-performance computing applications.
INVESTMENT bank CICC believes there is limited room for China’s central bank to use further monetary easing, saying focus would shift to curbing asset bubbles and guarding against financial risks.
Room for further monetary easing is limited because real interest rates have fallen significantly on the back of continued economic reflation, while ample policy tools and accumulated monetary and fiscal loosening since 2015 would ensure stable economic growth this year, a CICC report said.
To stabilize growth, which fell to 6.9 percent in 2015, China cut the benchmark interest rate five times last year. However, it has cautiously refrained from doing so this year over concerns about asset bubbles and the depreciation of the yuan.
China’s economy expanded 6.7 percent in the third quarter of 2016, holding steady with the first and second quarters and boosting sentiment that this year’s annual GDP target of 6.5 percent to 7 percent is achievable.
CICC forecast that the central bank would not cut benchmark interest rates in 2017 and it may also leave the commercial banks’ reserve requirement ratio unchanged in the first half of 2017.
Chinese Central Bank to Develop Digital Currency
CHINA’S central bank is recruiting blockchain experts to step up efforts to develop an official digital currency.
The People’s Bank of China’s institute of printing science is offering six positions for the design and development of digital currency-related software and hardware framework, a recruitment notice said, adding that candidates with experience in blockchain and Big Data technologies will be preferred.
The candidates must hold master’s or doctoral degree in computer science, information security and cryptography, according to the notice.
PBOC set up a special team in 2014 to look into digital currencies, research the legal, monetary and technological framework, and study the impact of digital currency on the economy and financial systems.
However, PBOC Governor Zhou Xiaochuan said in a previous interview with Caixin magazine that there’s no timetable for the launch of the digital currency.
Central banks in UK, Russia, Canada and Australia have also showed interests in developing blockchain-based digital currencies.
Blockchain technology is not just useful for creating digital currencies or developing new financial technologies. They can be used for a wide variety of applications, such as tracking ownership or the provenance of documents, digital assets, physical assets or voting rights.
Alibaba’s gigantic online shopping holiday saw another record-smashing year in China, with mobile continuing to become an even more dominant shopping platform.
For the November 11 Singles’ Day shopping event, sales reached US$17.8 billion (RMB120.7 billion) on Alibaba platforms alone, rising from last year’s $14.3 billion. This marked a growth rate of 32 percent, down from over 60 percent last year. The total number of transactions hit the 1 billion mark this year (1.04 billion to be exact), up from 710 million last year.
While the day is known as a significant discount holiday, luxury brands also got in on the action after Tmall held a special live-streamed fashion show to promote its Singles’ Day luxury sales. Beauty brands were especially active, as Clarins sold face masks at discounts of 59 percent and Lancôme had the largest total number of beauty product promotions, according to analysis by Clavis Insight. Other premium and luxury brands with promotions for the event included Sephora, Burberry, Apple, and Maserati.
PRESIDENT Xi Jinping congratulated Donald Trump on becoming president-elect of the United States, and said he hoped they could work together to boost China-US relations for the benefit of people around the world.
Xi said China, the world’s largest developing country, and the US, the largest developed power, had a special responsibility to maintain world peace and boost global prosperity. The world’s top economies, Xi said, shared extensive interests.
To develop a long-term, healthy and stable China-US relationship is in line with the fundamental interests of the people of both countries as well as the general expectations of the global community, Xi said in his message.
“I highly value the relations between China and the United States, and I am looking forward to working together with you to expand China-US cooperation in every field, at the bilateral, regional and global levels, on the basis of the principles of non-conflict, non-confrontation, mutual respect and win-win cooperation, with differences controlled in a constructive manner, so as to push China-US relations further forward from a new starting point, better benefiting the peoples of the two countries and other countries.”
Chinese Vice President Li Yuanchao sent a message to Mike Pence, congratulating him on becoming US vice president-elect.
Can the U.S.S. Economy actually be course-corrected at this late stage or
are we just arranging deck chairs on the Titanic?
THE National Bank of Canada issued 3.5 billion yuan (US$517.8 million) worth of ‘panda bonds’ in China on Wednesday, the first issuance of such bonds by a foreign financial firm, Xinhua learned from an underwriter on Thursday.
The three-year yuan-denominated bonds, issued on China’s interbank bond market, were priced to yield 3.05 percent annually, said the Bank of China (BOC), which was a lead underwriter of the bonds.
Panda bonds are yuan-denominated debts sold by foreign issuers in China. Analysts expect the market to expand as China pushes internationalization of its currency.
Early this year, the Canadian province of British Columbia issued 3 billion yuan worth of panda bonds in China.
The BOC said it has so far helped 15 overseas issuers sell panda bonds on China’s interbank market since 2015.
The panda bond market is expected to surpass 320 billion yuan in the 2016-2020 period, according to the World Bank’s International Finance Corporation.
Chinese Cities You Have Never Heard of That Will Have 2 million or More “High Income” Residents by 2030
These Lower-Tier Chinese Cities Will Have 2 Million or More ‘High-Income’
Residents by 2030
Cities like Foshan, Wenzhou, or Changsha may not be considered to be among
China’s luxury epicenters, but a new study by The Economist Intelligence
Unit finds that by 2030, lower-tier cities like these will have more “high-
income” consumers than Beijing has now.
According to the “Chinese Consumer in 2030” report released this week,
35 percent of China’s population is predicted to be “upper-middle class” or
above by 2030. This will amount to about 480 million people, marking a massive
increase from the current estimate of 132 million upper-middle class people in
China. (10 percent of the population).
The Economist defines a concept of “upper-middle class” as anyone with disposable
income of at least US$10,000. Meanwhile, luxury retailers will be especially
interested in tracking the growth of “high-income” earners, which it categorizes
as those with RMB200,000 (almost US$30,000) in disposable income—a group that
will surpass 10 million people in Shanghai by 2030 (up from around 4 million now).
But it’s not just the staggering Tier 1 city growth in high-income consumers that
is especially of interest to luxury brands—it’s also their populations’ rapid
expansion in smaller cities across China. The report finds that Shanghai, Beijing,
Shenzhen, and Guangzhou will continue to dominate as the top four cities for
number of high-income consumers, respectively, in 2030.
But a staggering number of smaller cities will also have passed up where the top
tier is at now, which is set to have a dramatic impact on the ways retailers
target consumers in these cities.
Tianjin is expected to surge to fifth place by 2030 as the government works to
incorporate it into the “Jing-Jin-Ji” metropolis. Meanwhile, southern cities
Hangzhou and Suzhou will be sixth and eighth, while Sichuan powerhouses Chongqing
and Chengdu will come in seventh and ninth.
The 2030 high earner population projections for all of these cities are higher
than Beijing’s number as of 2015, which is about 2 million people. Many other
smaller cities ranking after Chengdu will surpass this 2 million benchmark,
including Wenzhou,Nanjing, Foshan, Changsha, Qingdao, and Ningbo. Rounding out
the list of top 20 cities for high-income individuals will be Wuhan, Wuxi, Jinan,
Xiamen, and Xi’an.
Growing incomes will lead to diversified spending and a demand to upgrade to more
premium brands and expensive options, says the report, which notes that the average
Chinese consumer must now allocate 30 percent of their income to food. It also notes
that even beyond the top 20 cities listed, there are prime options for growth,
including Zhuhai in Guangdong, which will have a population with 36 percent high-
income consumers by 2030, while Shaoxing in Zhejiang will have 26 percent.
Income growth will not take off in all cities equally, however, as the ones primed
for growth have specific advantages (for example Qingdao and Ningbo are port cities
while Foshan is part of the Pearl River Delta Economic Zone that also encompasses its
giant neighbors Shenzhen and Guangzhou). The report notes that “those undergoing
industrial restructuring risk being left behind,” and China will still suffer from
rampant income inequality geographically even as some cities reach the levels
Beijing and Shanghai are at now.
As we have written in the previous several weeks. Due to the geopolitical
stance the Philippine President has taken against the United States, by firmly
going under the protection of the Chinese economic umbrella,the resulting counter-
action would be the U.S. unleashing one of its most powerful,covert weapons
against any less developed nation which is to attack the currency.
As we speak, the Peso is now under coordinated attack in global markets and
nearing an eight-year low of 50 to $1 USD.
Credit Suisse Group AG and Rabobank Groep predict the currency will weaken past
50 per dollar next year, a level last seen in November 2008.
Global funds have pulled more than $600 million from Philippine stocks since
inflows already this year.
Expect the People’s Bank of China to have to start some Bank Swaps with the
Philippines Central Bank in order to try and shore up the currency. If they
have not already thought of this…they better get started.
I would expect the U.S. intelligence agencies will try and drive the currency
down all the way to the 75-100 range. It will drive up costs of everything in
the country and it will be the best attempt to polarize the people against the