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China offers $3 billion in aid and loans to neighbors: Xinhua

BANGKOK/SHANGHAI (Reuters) – China has offered more than $3 billion in loans and aid to neighbors Cambodia, Vietnam, Myanmar, Thailand and Laos to improve infrastructure and production, and to fight poverty, state media reported on Saturday. Chinese Premier Li Keqiang said the offer included $1

Asia Hedge Funds Survive In Year Of Pain For Global Industry

This about says it all as to why global wealth has flown East. “In Asia, there is less hot money than in Europe and the U.S.,” he said. “It’s a cultural thing. Asia is about safe money; Americans and Europeans are big borrowers.” Dec 16

American Power Grid: Worst in the developed world

Dan Collins CMR With the power going outLights Go Out (Briefly) at White House this week it makes one wonder what exactly is going on. Growing up in the U.S. the only power outages I remember were when my Dad didn’t pay the electric bill.

Chinese nuclear weapon growth stuns US, Russia

Want China Times The growth of China’s nuclear capabilities has threatened the United States and Russia with the potential of its intercontinental ballistic missiles (ICBMs), equipped on the country’s latest guided missile nuclear submarine Type 094, to strike US coastal regions, reports Sina’s military news

Chinese Global Property Investment Hits $15 Billion in 2014, Miami Newest Target

With the new 10 year visa, Chinese property investment in the U.S. is set to explode. Get ready to be priced out of homes in your area. World Property Journal According to a new report by Knight Frank, Chinese outward investment in overseas real estate

Concrete Facts

 

72 year old Former CPC Politburo member embezzled billions, raped hotel staff, killed wife, and had 29 regular lovers

In other news, Zhou Yongkang has recently signed an advertising deal for knockoff Chinese Viagra producer “Heng Da” Want China Times Former CPC Politburo Standing Committee member Zhou Yongkang has been accused of “committing adultery and engaging in transactions involving the exchange of power and

American money to support Chinese military presence on the African continent

Want China Times China is ready to help the African Union establish five rapid response forces, President Jacob Zuma of South Africa said after his visit to Beijing ended on Dec. 7. The plan, formulated in 2003, would be five contingents stationed in the northern,

Mobius Says China’s Bull Market Is Just Getting Started

Bloomberg By Weiyi Lim – Dec 11, 2014 Mark Mobius says the bull market in Chinese stocks is just getting started and he’s using the biggest price swings in five years to boost holdings. “We are buying more in China because we think this is

China slowdown isn’t disturbing: Expert

Peter Alexander, Managing Director at Z-Ben Advisors, is an actual expert who lives in China. He can tell you the real deal on the Shanghai markets.  

China to promote development of interbank forex market

BEIJING – China’s foreign exchange regulator announced on Wednesday that it will facilitate financial institutions to enter the interbank foreign exchange market. China’s State Administration of Foreign Exchange (SAFE) said the regulation would promote a market-oriented and more transparent interbank foreign exchange market. The advance-access

Beijing’s maritime encirclement strategy compared to Go

Alexander Vurving from the Honolulu-based Asia-Pacific Center for Security Studies takes the Chinese board game of weiqi or Go to describe the country’s grand strategy in the disputed South China Sea in an article written for the website of National Interest magazine on Dec. 8.

L.A. ON FIRE

In a separate announcement , American economists are thrilled with the fire as it is “sure to add to GDP in the 4th quarter”.  

Zuckerberg can’t speak Chinese and A/P’s mind games

The AP has published an article (below) which seems to be written by a child. She starts off the article assuming Zuckerberg’s curiosity about China must all revolve around his pursuit to get Facebook unblocked in China. She then goes on to interview exiled dissidents,

IEA Offical: Oil to be back at $100 in a few years

Reuters Stockholm December 5 As oil markets continue to crash, the International Energy Agency (IEA) chief economist Fatih Birol said on Friday that the next few years oil prices will rise to nearly $ 100 a barrel, about 40% higher than the current price. Birol

China offers $3 billion in aid and loans to neighbors: Xinhua

BANGKOK/SHANGHAI (Reuters) – China has offered more than $3 billion in loans and aid to neighbors Cambodia, Vietnam, Myanmar, Thailand and Laos to improve infrastructure and production, and to fight poverty, state media reported on Saturday.

Chinese Premier Li Keqiang said the offer included $1 billion for infrastructure, $490 million for poverty alleviation and $1.6 billion in special loans for China’s production capacity export, Xinhua news agency said.

During a speech to the fifth summit of the Greater Mekong Subregion (GMS) Economic Cooperation in Bangkok, Li also pledged $16.4 million to dredge waterways along the Mekong River to prevent natural disasters.

“”These are important parts of our efforts to upgrade China- ASEAN cooperation … we are ready to work with the five countries to build a new framework to deepen cooperation and bring the GMS comprehensive partnership to a new level,” Li said.

He said China planned to export high-level production capacity in electricity, telecommunications, steel and cement to its neighbors on regional transportation routes, Xinhua reported.

Li is in Thailand attending a two-day summit of leaders of Mekong River region countries, the biggest international gathering in Thailand since its military seized power.

China will finance projects by offering special loans, currency swaps in cross-border transactions and by allowing a role for private enterprises, Li said.

On Friday, China said it would build an 867-km rail network in Thailand and buy two million tonnes of its rice..

Li offered $20 billion in loans for Southeast Asia during a regional meeting in Myanmar last month. It is not clear if the money announced in Bangkok was part of that figure or represented new funds.

More than $120 billion has been promised by China since May to Africa, Southeast Asia and Central Asia as Beijing tries to present a softer, more cooperative side to the world following months of tension over territorial issues and other problems.

“We’ll create new levels of industrial cooperation. China has become the most important trade partner in the sub region and our investment will increase. . . We have every reason to draw on each others’ strengths,” Li added.

China has set nerves of edge in Southeast Asia with its claims to the South China Sea, which have rankled Vietnam and the Philippines in particular.

Southeast Asia has also emerged as a new area of strategic competition between China and the United States, and China has been keen to present a softer side to the region, partly though offering massive new funding for infrastructure projects.

(Reporting by Engen Tham and Martin Petty; Additional reporting by Ben Blanchard; Editing by Jeremy Laurence)

 

Asia Hedge Funds Survive In Year Of Pain For Global Industry

This about says it all as to why global wealth has flown East.

“In Asia, there is less hot money than in Europe and the U.S.,” he said. “It’s
a cultural thing. Asia is about safe money; Americans and Europeans are
big borrowers.”

Dec 16 2014 | 6:33am ET
By Klaus Wille (Bloomberg) — In a punishing year for global hedge funds,
those investing in Asia are the survivors.

Stung by poor returns and large redemptions, 889 hedge funds worldwide shut
in the first 11 months of the year, above the annual average of 810 in the
five years since the global financial crisis of 2008, according to figures
from research firm Eurekahedge Pte. In contrast, 56 Asia-focused funds had
closed by the end of November, less than half the average 135 closures in
the previous five years.

“Asia’s hedge funds, on average, are more resilient than those in Europe
and the U.S.,” said Brian Thung, who advises hedge funds as a Singapore-
based partner at Ernst & Young Global Ltd. “In addition to better
performance, they have a lower cost base, which helps them survive with
lower assets under management.”

Bolstered by rallies in equity markets such as India and China, Asian
funds are set to outperform their peers in Europe and the U.S. for a third
year, even as their inflows slowed. Funds investing in the region, which
on average are two-thirds the size of their U.S. peers, have returned
6.1 percent this year to the end of November, compared with a 5.7 percent
return for North America and 1.2 percent for Europe, according to data
from Singapore-based Eurekahedge.

Running a hedge fund in the Asia-Pacific region can be as much as
42 percent cheaper than in the U.S. and Europe, helped by lower salary
costs, according to a survey by Citigroup Inc. published in November 2013.

Smaller Funds

Small and mid-sized funds in Asia have received a greater proportion of
reduced inflows compared with similar-size funds elsewhere, which has
helped the region’s many minnows stay alive, according to Mohammad Hassan,
a Singapore-based analyst at Eurekahedge.

Hedge funds investing in Asia, which may be based outside the region, on
average have $223 million of assets under management, compared with $357
million in North America and $294 million in Europe, Eurekahedge said.

In Asia, funds with assets of $500 million or less had net inflows
amounting to 8 percent of the region’s total flows since January 2013,
according to Eurekahedge. By comparison, investors withdrew money from
same-sized funds focusing on other regions, with outflows making up 9
percent of total flows, according to the data provider. Globally, smaller
funds have suffered as institutional investors have focused on the bigger
managers, such as Citadel LLC and Millenium Management LLC.

Sticky Allocations

In the U.S., the $37 billion Brevan Howard Asset Management LLP decided
to shut its $630 million commodity fund after it had tumbled 4.3 percent
this year through the end of October, according to a person with knowledge
of the firm. Woodbine Capital Advisors LP closed down after assets dwindled,
while Anderson Global Macro LLC and Kingsguard Advisors LP both shut after
less than three years in business.

Allocations in Asia are “stickier” and less likely to be withdrawn in times
of trouble, said James Luong, the Singapore- based manager of the Thetis
Macro Opportunities Fund, which started this year with assets of less than
$20 million.

That’s because Asia-mandated funds get more money from the region’s wealthy
individuals and family offices, and less from institutional investors than
funds investing elsewhere, Luong said. Many of those Asian investors “were
entrepreneurs at one point in time. So they are more comfortable with
volatility and risk taking,” he said.

Underweight Asia

Among closures in Asia this year, PCA Investments, based in Hong Kong,
shut a multistrategy hedge fund after China’s sovereign wealth fund, its
only major outside investor, indicated it would pull its money because
of a strategy change, two people familiar with the matter said in January.

Despite those shutting down, Asia’s fund industry is more “robust” because
investors’ allocations have been less volatile, said Gordon Russell,
Singapore-based global head of risk at hedge-fund service provider
Broadridge Financial Solutions Inc.

“Asia has been underweight by global allocators for years,” Russell said.
“So when institutional investors and funds-of-funds are looking to pull
their money, they are going to pull less from Asia because they are
underexposed already.”

Inflows Slow

Russell also said that Asia’s investors have borrowed less than those
elsewhere and consequently are under less pressure to withdraw money when
their investments decline in value.

“In Asia, there is less hot money than in Europe and the U.S.,” he said.
“It’s a cultural thing. Asia is about safe money; Americans and Europeans
are big borrowers.” Asia, especially emerging markets in the region, makes
for good diversification in investors’ portfolios at a time when Europe
is struggling to recover and the U.S. is just starting to pick up,
Eurekahedge’s Hassan said.

“That means investors are less inclined to withdraw money from the region,
which stabilizes Asia’s hedge-fund industry,” he said. Net flows into funds
investing in North America were at $28.6 billion this year through October,
according to Eurekahedge. That’s less than half the $63.2 billion collected
last year.

Inflows into Asia fell to $5.3 billion this year through October, from $11
billion last year, the data show. Gains in Asian stock markets this year have
helped equity long-short funds, the dominant strategy among hedge funds focused
on the region. India’s S&P BSE Sensex benchmark index has gained 36 percent and
China’s CSI 300 Index has advanced 21 percent to the end of November,
outperforming the 12 percent gain of the Standard & Poor’s 500 Index and the
5.8 percent advance of the Stoxx Europe 600 Index over the period.

More fund managers in Asia start with their own money, giving them more of an
incentive to perform and stay in business, said Thung at Ernst & Young. “There
is a deep keenness of managers here who want to try to continue as long as
they can, even by funding their own operations themselves,” he said.

europes-old-wealth-seeks-new-home-in-asia

 

American Power Grid: Worst in the developed world

Dan Collins
CMR

With the power going outLights Go Out (Briefly) at White House this week
it makes one wonder what exactly is going on. Growing up in the U.S. the
only power outages I remember were when my Dad didn’t pay the electric bill.
Living in other (developed) countries around the world it is not something
that ever comes up. So what is going on?

Simply speaking, the country is devolving, like Rome the country is devolving
so fast that the younger generation can not keep on the power systems. Much of
the same systems that were put in by their grandparents generation. Makes one
wonder how a countries GDP grows from $1 trillion to $16 trillion over a few
decades yet the roads, airports, bridges, and electrical infrastructure is
allowed to rot slowly.

The power grid in the United States has more blackouts
than any other country in the developed world. Americans face more power grid
failures lasting at least an hour than residents of other nations, according
to statistics provided by the Department of Energy (DOE) and the North American
Electric Reliability Corporation — NERC.

From a recent article in The Inquistr

Recent power grid reports indicate that the electrical system loses power more
than 285 percent more often that it did in 1984 — when blackout record keeping
began. The power outages cost businesses in the United States as much as
$150 billion per year, according to the Department of Energy.

In 2013, the power grid received a “D+” grade on its report card from American
Society of Civil Engineers — ASCE. The power grid grade card rating means
the energy infrastructure is in “poor to fair condition and mostly below
standard, with many elements approaching the end of their service life.”
It further means a “large portion of the system exhibits significant
deterioration” with a “strong risk of failure.”

“America relies on an aging electrical grid and pipeline distribution
systems, some of which originated in the 1880s. Investment in power
transmission has increased since 2005, but ongoing permitting issues, weather
events, and limited maintenance have contributed to an increasing number of
failures and power interruptions. While demand for electricity has remained
level, the availability of energy in the form of electricity, natural gas,
and oil will become a greater challenge after 2020 as the population
increases. Although about 17,000 miles of additional high-voltage transmission
lines and significant oil and gas pipelines are planned over the next five
years, permitting and siting issues threaten their completion. The electric
grid in the United States consists of a system of interconnected power
generation, transmission facilities, and distribution facilities.”

Read more at http://www.inquisitr.com

lowman-step-up-sub

 

Chinese nuclear weapon growth stuns US, Russia

Want China Times

The growth of China’s nuclear capabilities has threatened the United States and Russia with the potential of its intercontinental ballistic missiles (ICBMs), equipped on the country’s latest guided missile nuclear submarine Type 094, to strike US coastal regions, reports Sina’s military news portal.

The submarine, scheduled to be launched at the end of this year, was spotted by a US satellite in the waters near the coast of Dalian. The 16 JL-2 ballistic guided missiles have a range of 8,000 to 12,000 kilometers.

It is China’s first reliable submarine-launched nuclear intimidation measure and the first time that “China’s nuclear arsenal will be invulnerable to a first strike,” said Nicolas Giacometti, an independent strategist who has written analysis for the Center for Strategic and International Studies. The country has solidified its ability to retaliate with nuclear force on the submarine.

The US parliament does not have the exact figures on the number of China’s intercontinental guided missiles and nuclear warheads since the figure was last collected in 2006. Washington has been trying to find out the length of an underground tunnel China uses to store nuclear weapons and the number of its nuclear warheads. United States Strategic Command has compiled a report on China’s underground “nuclear Great Wall” and recommended US military destroy these underground facilities and China’s nuclear weapons.

The JL-2 ballistic missile on the latest nuclear submarine suggests that China has developed a well-rounded missile that can be fired from both land and sea, given that the JL-2 was reportedly modified from the land-based DF-31 missile. The Chinese missile has a launch speed faster than other ballistic missiles, making satellites difficult to detect its launch.

On land, more trouble for the US on the move in the form of China’s mobile ballistic missiles. The weapon is extremely difficult to detect since it can be launched from a wide range of areas, including highways. Washington was stunned when China launched its first mobile ballistic missile in September, a move that put China’s nuclear capabilities in competition with Russia and the US and proved that Beijing now has the ability to counterstrike invaders with nuclear weapons. The US government has attempted to monitor mobile ballistic missiles around the world, 24 hours a day, for years to no avail. It plans to launch 21 satellites between 2015 and 2020 in attempt to reach this target.

20141214nusub-164848_copy1

 

Chinese Global Property Investment Hits $15 Billion in 2014, Miami Newest Target

With the new 10 year visa, Chinese property investment in the U.S. is set to
explode. Get ready to be priced out of homes in your area.

World Property Journal

According to a new report by Knight Frank, Chinese outward investment in overseas
real estate is estimated to hit $15 billion by the end of 2014.

So far the majority of this investment has been focused in gateway cities of
Australia, the US and the UK. In 2014; Australia has seen the strongest growth
in inbound real estate investment from China at over 60% increase year on year.
But Chinese high net worth investors are looking to new destinations offering
discounts on prime property such as Miami in the U.S. and Australia’s Gold Coast.

According to Knight Frank research, only four out of the top 20 Chinese insurance
companies have made significant offshores investment, while 40% of them are
considering overseas expansion.

Neil Brookes, Head of Capital Markets for Asia Pacific at Knight Frank, commented,
“Investors today are shifting their focus towards sustainable returns in the long
term. The key factors for Chinese investors are the policy push from the Chinese
government to diversify into other countries; a softening domestic market; and
the pull from higher returns achievable in overseas markets.

“Australia, the US and the UK are the top three markets most Chinese investors are
looking at. We saw five times as much capital outflow from China into these three
markets in 2013 alone compared to the previous year. We expect the transaction
volumes from Chinese investors into these three markets this year will match or
even exceed that of last year.”

The key drivers and new development for the Chinese investments include the softening
of Chinese market conditions; its low yield, lack of investable stock and depressed
residential markets continue to impact Chinese investors and developers. With Government
policy encouraging firms to expand overseas, we continue to see active investment
activities by Chinese institutional investors, banks and developers. However, due to
the policy-driven nature of the Chinese market, there remains a risk that China’s
outward investment could be impacted by policy adjustments.

Sovereign wealth funds are investing in trophy assets and banks are acquiring property
for owner occupation; large developers followed, looking to diversify with an overseas
presence. In this current third wave equity investors and insurance firms are seeking
core and yield-driven opportunities. We are now seeing the formation of fourth wave of
investors who are harder to predict and track. These investors consists of ultra-high
net worth Individuals (UHNWIs), small- to mid-cap state-owned enterprises (SOEs) and
private developers who are increasingly evaluating their overseas strategy and
exploring overseas growth.

http://www.worldpropertyjournal.com/

South-Beach-Miami-Beach-keyimage

 

Concrete Facts

10850192_10152558118091961_2513545064237064585_n

 

72 year old Former CPC Politburo member embezzled billions, raped hotel staff, killed wife, and had 29 regular lovers

In other news, Zhou Yongkang has recently signed an advertising deal
for knockoff Chinese Viagra producer “Heng Da”

Want China Times
Former CPC Politburo Standing Committee member Zhou Yongkang has been accused
of “committing adultery and engaging in transactions involving the exchange
of power and money for sex with many women,” in addition to four other crimes.

After Zhou’s party membership was revoked, his role in the “oil gang” and
“Sichuan gang” has gradually been made public, along with revelations about
his sex life.

Zhou’s downfall has been widely anticipated after he retired from China’s top
circle of power at the end of 2012 but public discussion and speculation has
been blocked in the interim. It is only now that the Communist Party has
appeared to decide his fate that floods of information about his alleged crimes
during his career are being deliberately brought into the public eye.

Zhou was born in 1942 and is now 72 years of age. He is rumored to have had around
29 regular lovers, including several news anchors from the state broadcaster Chinese
Central Television (CCTV) and army officers, as well as alleged one-night stands with
over 400 singers, models, actors and university students. Media reports suggest that
he had six residences in Beijing for the purpose of meeting the women.

As chairperson of China National Petroleum Corporation (CNPC), he is said to have
been given the title “the rooster with 100 chickens” and he is said to have raped
several women while he was Communist Party secretary of Sichuan province, including
hotel staff.

On Nov. 29, just as authorities were gearing up to arrest him, Zhou is suspected of
having sex with CCTV 4 anchor Ye Yingchun in a car in a parking lot at Beijing’s
Parkson Department Store, after the car was said to have been “rocking” in
surveillance footage taken by graft authorities.

Two days after this incident, Zhou was placed under house arrest. Ye and her fellow
CCTV anchor Chen Bing, both suspected to have been in relationships with Zhou, have
also been detained by authorities. PLA singer Tang Can is also suspected to have had
a relationship with Zhou, which might explain why she has disappeared from the
public eye, reports Duowei News, a media outlet run by overseas Chinese.

Former public security vice minister Li Dongsheng, who is also under a graft probe, is
said to have been a matchmaker for Zhou during his time as CCTV vice president. Not
only Li said to have engaged in sexual relations with several journalists and anchors
at CCTV, but he is also said to have offered them up to the top leadership of the CPC.
Zhou’s second wife Jia Xiaoye was a journalist at the state-run broadcaster at the
time and is also said to have been involved in Li’s sexual transactions with the top
leadership of the party.

Duowei News also reported on rumors that Zhou had “done away” with his first wife by
arranging a car crash to tie up loose ends before his marriage to his second wife.

Shortly after divorcing Zhou, his first wife Wang Shuhua was killed in a car crash in
Beijing. At least one of the vehicles said to have caused the crash had military plates.
Zhou reportedly married Jia shortly after the tragedy. Two military police were given
15-20 years for causing the crash but they reportedly only served three to four years
and were given posts at CNPC after they were released.

A report in the Beijing-based Global People magazine also stated that when Zhou was
working in Liaoning he and his brothers rarely returned to his hometown, leaving his
aging mother without anyone to care for her. Later Zhou took her to live with him in
Liaoning, but his mother was unhappy living with him and hanged herself.

images

 

American money to support Chinese military presence on the African continent

Want China Times

China is ready to help the African Union establish five rapid response forces,
President Jacob Zuma of South Africa said after his visit to Beijing ended on
Dec. 7.

The plan, formulated in 2003, would be five contingents stationed in the northern,
eastern, western, central and southern parts of Africa to deal with crises as they
arise. France, Russia and the United States have since agreed to provide US$100
million to the African Union for the establishment of the task forces but more
support is needed.

Security cooperation was among the topics discussed by Zuma with President Xi
Jinping of China. Zuma said Xi agreed to provide assistance to the African Union
for peacekeeping operations. Economic support would also be given to the African
Union for the creation of the five rapid response forces it needs to maintain
regional stability.

The rapid response force in eastern Africa is currently growing much faster than its
counterparts, according to the state-run Global Times. It consists of 5,000 military
and police officers from 10 nations who would be deployed with 14 days to protect
civilians in an outbreak of civil war or unrest. The headquarters of the response
forces is in Addis Ababa, the capital of Ethopia, with the logistics base set in
Douala, the largest city in Cameroon.

The African Union is looking to form an intergovernmental military alliance similar
to NATO, starting with the proposed peacekeeping forces. The force was proposed in
the first place because of the African Union’s dissatisfaction with the US African
Command, according to the Beijing-based Sina Military Network.

Chinese influence in Africa will bring direct confrontation between the United States
and China in the region, said Vladimir Evseev, the director of Russia’s Center for Social
and Political Sciences. On the other hand, it will allow China to protect its interests
in the developing region, interests which have faced several threats over the years in
Libya, Egypt, Syria and Sudan.

 

Mobius Says China’s Bull Market Is Just Getting Started

Bloomberg
By Weiyi Lim – Dec 11, 2014

Mark Mobius says the bull market in Chinese stocks is just getting started and
he’s using the biggest price swings in five years to boost holdings.

“We are buying more in China because we think this is the beginning of a longer-
term bull run,” Mobius, who oversees about $40 billion as the executive chairman
of Templeton Emerging Markets Group, said in a phone interview yesterday
from Thailand.

The 78-year-old money manager, who’s been investing in emerging markets for
more than four decades, is stepping up his wager on China after correctly
predicting four months ago that the nation’s stock rally had further to run
amid low valuations and government efforts to open-up state-dominated industries.
The Shanghai Composite Index (SHCOMP)’s 51 percent jump from a four-year low
in June 2013 is still less than half the average 122 percent gain during
26 bull markets since 1990.

China’s rally has accelerated during the past month as the central bank
unexpectedly cut interest rates and mainland investors opened new stock accounts
at the fastest pace in five years. While the Shanghai gauge posted its biggest
one-day tumble since 2009 on Dec. 9, Mobius says increased volatility is creating
opportunities to buy mispriced shares.

The Shanghai Composite climbed 19 percent in the past month through yesterday,
the second-biggest gain among 93 equity indexes worldwide tracked by Bloomberg.
The gauge surpassed 3,000 for the first time in three years on Dec. 8, while a
measure of 10-day price swings reached the highest level since 2009 yesterday.

Mobius said he’s been buying Chinese stocks “across the board,” including oil-related
companies, on expectations that crude prices will recover from five-year lows.
PetroChina Co., the nation’s biggest energy company, has climbed 21 percent in
Shanghai trading during the past month.

Trading in mainland equities surged to all-time highs this week as investors
weighed the sustainability of gains that have sent valuations to the highest level
in three years. The rally is “irrational,” Ken Peng, a strategist at Citigroup
Inc.’s private bank in Hong Kong, said on Dec. 4. Andy Xie, a former World Bank
economist, called the advance a “bubble” driven by leveraged traders.

More Exposed

The People’s Daily, which is published by the propaganda department of the ruling
Communist Party, joined the official Xinhua News Agency and the Securities Times
with articles on Dec. 9 highlighting risks in stocks. They followed a similar
warning from the nation’s securities regulator at the end of last week.

While Chinese shares will experience “corrections along the way,” they won’t enter
a bear market any time soon, said Mobius, whose $13 billion Templeton Asian Growth
Fund has returned about 8.5 percent this year.

Such optimism puts Mobius in a camp with Morgan Stanley’s Hong Kong-based
strategist Jonathan Garner, who said on Dec. 2 there’s potential for an “ultra-bull”
rally where share prices double in 18 months. The Shanghai Composite is poised to
rally to 3,500, or 19 percent above the last close, Shenyin & Wanguo Securities
Co. wrote in a report yesterday.

“Generally speaking, these things last quite a long time,” said Mobius. “We are
getting more and more exposed in China.”

 

China slowdown isn’t disturbing: Expert

Peter Alexander, Managing Director at Z-Ben Advisors, is an actual expert
who lives in China. He can tell you the real deal on the Shanghai markets.

 

China to promote development of interbank forex market

BEIJING – China’s foreign exchange regulator announced on Wednesday that it will
facilitate financial institutions to enter the interbank foreign exchange market.

China’s State Administration of Foreign Exchange (SAFE) said the regulation would
promote a market-oriented and more transparent interbank foreign exchange market.

The advance-access permission for financial institutions to enter the interbank
forex market will be scrapped, further allowing the market to play a key role.

SAFE said that it would strengthen supervision over interbank forex and clarify
the trading rules. The regulation will take effect on Jan 1, 2015.

 

Beijing’s maritime encirclement strategy compared to Go

Alexander Vurving from the Honolulu-based Asia-Pacific Center for Security Studies takes the Chinese board game of weiqi or Go to describe the country’s grand strategy in the disputed South China Sea in an article written for the website of National Interest magazine on Dec. 8.

Vurving said that while chess is a game of checkmate, Go is a game of encirclement. “There are no kings, queens or pawns as there are in chess, only identical stones whose power depends on where they are in the larger arrangement of the pieces. If chess is a contest of armies, weiqi is a struggle between configurations,” he wrote. While chess players focus on the destruction of the enemy’s physical power, Go players strive for control of strategic positions.

China’s land reclamation programs in the Spratly and Paracel islands is a symbol of the nation’s strategy to occupy strategic positions. The most powerful weapon China has in the region is its nuclear submarine base at Yuling on Hainan island. Vurving said however that the location of the submarine base remains far from the disputed waters. What China is most likely to do is to expand its influence in the region through the use of fishing boats and lightly armed government vessels, he said.

Quoting from a senior US diplomat, Vurving said great powers do not to go to war with each other over rocks. A leading scholar of Chinese naval development said that an international incident in the South China Sea will not bring major danger to the global balance of power nor even to the normal functioning of the international system. From the perspective of Go players, China’s strategy in the disputed waters is a masterclass in how to play the game, according to Vurving.

The goal of this strategy is to gain control of the region through creeping expansion instead of major battles. With its land reclamation, China can slowly expand the territory it controls in the South China Sea. Vurving said the first step for China is to avoid open armed conflict as much as possible. Second, China must try its best to control the most strategic positions over the disputed region.

Third, Vurving said China has to develop these strategic positions into strong points of control. The People’s Liberation Army must establish important logistics and military bases in the region for power projection in the future, he said. China’s grand strategy is basically trading quantity for quality, according to Vurving. Five of the six reefs of the Spratly islands currently under Beijing’s control are among the most strategic features in the archipelago, the author said.

Go_Board,_Hoge_Rielen,_BelgiumEdit_Fcb981

 

L.A. ON FIRE

In a separate announcement , American economists are thrilled with the fire
as it is “sure to add to GDP in the 4th quarter”.

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Zuckerberg can’t speak Chinese and A/P’s mind games

The AP has published an article (below) which seems to be written by a child.
She starts off the article assuming Zuckerberg’s curiosity about China must
all revolve around his pursuit to get Facebook unblocked in China. She then
goes on to interview exiled dissidents, often on the payroll of the American
government, that slam Zuckerberg for reading a book.

It is then followed up about nonsense that Zuckerberg actually speaks Chinese.
I saw Zuckerberg’c “30 minute chat” and even the most basic sentences were
unintelligible. He could barley say, ” Hello , How are you”. That’s a far cry
from a “30 minute chat” in Mandarine, or a “giving someone a tour of the offices
in Mandarine. I am sure Zuckerberg would agree with me on these points. The real
question is why are the AP trying to paint him as someone becoming brain-washed
by the Chinese party leadership?

Full Article here:

BEIJING (AP) — A Chinese government news portal released a photo Monday of Facebook founder Mark Zuckerberg with a copy of Chinese President Xi Jinping’s book on governance at his desk while hosting the country’s top Internet regulator.

Zuckerberg, who has long sought market access to China, where Facebook is blocked, was quoted by China.com.cn as saying he purchased several copies of Xi’s book so he and colleagues could learn about “socialism with Chinese characteristics.”

The California-based company did not immediately respond to inquiries regarding the visit to Facebook’s offices by Internet regulator Lu Wei.

The gesture, interpreted as an effort by Zuckerberg to court the government, disappointed and angered activists in China, who have long held the social networking company in high regard for its ability to share information beyond the tight controls of the ruling Communist Party.

“Mr. Zuckerberg is either ignorant of China’s politics or shameless,” said prominent dissident Hu Jia, who called Lu a top enemy of Internet freedom and expressed worry that technology giants such as Facebook were kowtowing to Beijing for their own business interests. “He is an Internet genius who should understand the power of technology for social change.”

China.com.cn, controlled by China’s Internet Information Office and another government agency, said the photo was taken at Facebook’s Menlo Park office and that Xi’s book “The Governance of China” was at Zuckerberg’s workstation when he hosted Lu.

“I bought this book for my colleagues as well,” Zuckerberg was quoted as telling Lu. “I want them to understand socialism with Chinese characteristics.”

The photo shows a beaming Lu sitting in Zuckerberg’s work chair, with the Facebook founder smiling and standing next to him.

“In that photo, Lu Wei looks the part of a boss,” Hu said in a phone interview. “I feel ashamed for Facebook and sorry for Mr. Zuckerberg. When you yield to the executioners of the Internet, they will only become more arrogant.”

A cartoon posted online showed Zuckerberg in a Chinese military outfit holding a bayonet and clutching Xi’s book to his chest. Some commenters joked that he was close to joining the Communist Party of China, although others suggested that Zuckerberg might have placed Xi’s book on his desk merely for show.

It was not clear when the visit took place, but Lu was in the United States last week to attend a Chinese-American Internet conference at which Beijing pushed for a louder voice in the management of the Internet. China also argued in favor of the concept of “information sovereignty,” which could help justify its tight controls over Internet information.

Zuckerberg surprised Chinese college students in Beijing in October when he chatted with them for 30 minutes in Mandarin, in a move widely seen as an attempt to court Chinese good will.

China.com.cn said Zuckerberg gave Lu a tour of Facebook’s office in Mandarin.

 

IEA Offical: Oil to be back at $100 in a few years

Reuters Stockholm
December 5

As oil markets continue to crash, the International Energy Agency (IEA) chief
economist Fatih Birol said on Friday that the next few years oil prices will rise
to nearly $ 100 a barrel, about 40% higher than the current price.

Birol also said, “We should not be deceived by the scene in front of your eyes,
take a look at the geological conditions, and then look at economic developments
in the oil market. Oil prices will rebound again in the coming years.

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China’s gold reserves may be greater than official figure

Want China Times

Taking advantage of the slump in international gold prices, the People’s Bank of China may have purchased large amounts of gold in a bid to diversify its reserves, thereby lowering its share of US government bonds, inside sources say, according to Shanghai’s National Business Daily.

The People’s Bank of China released data recently that showed the nation’s official gold reserves stood at 1,054 tons as of the end of 2013.

Gold transactions at the Shanghai Gold Exchange has now hit 1,100 tons a quarter now and the monthly delivery volume of gold has risen to 212 tons from the respective amounts of 362 tons and 44 tons in January 2008, reported National Business News. The newspaper also added that the transaction volume has picked up rapidly since April 2013, when international gold prices began to plunge.

Alasdair Macleod, a columnist at goldmoney, an industry website, said gold demand in China doubled to 4,843 tons in 2013, which didn’t include gold purchased by the Chinese government for deposit overseas.

In an article publicized on his blog, industry analyst Koos Jansen said that based on gold withdrawal at Shanghai Gold Exchange, China’s gold reserves has been increasing at an annual clip of 1,761-1,746 tons in recent years, adding that the official amount of 1,054.1 tons for the nation’s gold reserves is a gross understatement. Jansen believed that China has become a major buyer on the global gold market, with its gold reserves having surpassed that of Russia. Jansen also said that China has imported 8,000-9,000 tons of gold since 1995, which, should they be put under the custody of the People’s Bank of China entirely, would have boosted the nation’s official gold reserves to a level on a par with that of the US.

 

BOOM ! Chinese Markets up 25% in 1 month

CSI 300 Index 3,124.885
Up 11.25% in 1 week
Up 24.82% in 1 month

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Nude photo club busted in Taipei; members nabbed

Want China Times

Four members of a Taiwan photo club, whose members photograph naked
people in public places and post them online, were arrested Wednesday.

The founder of online forum BeautyCLUB, a retailer of sex toys, and
a couple who recently took pictures on a Taipei Metro carriage, were
arrested on charges of offense against public decency, the police said.

The forum, which was set up three years ago, asks its members to take
part in a monthly themed nude photo competition, according to the police.

Winners are given sex toys, the police said, adding that the club now
has 30,000 registered members, mainly in Taiwan but also found in
mainland China and Hong Kong.

The founder, surnamed Hua, said he established the forum to facilitate
photo exchanges among fans, with the groups server set up in the United
States to avoid being tracked easily.

The club’s next move is to create a nudist camp in southern Taiwan, the
police found out, adding that it has targeted around 40 people who have
registered for the event.

Taking nude photos in public places is against the law, and people who
expose their bodies in public or break “good social norms” can be fined
up to NT$6,000 (US$193).

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Chinese markets rocking upward

 

ALEART: U.S. debt goes over $18 trillion

The last work day of November, total US public debt just surpassed $18 trillion for
the first time, or $18,005,549,328,561.45.

At what number does the world’s financial system wake-up and realise the U.S.
will never repay their debts? We are on our way to $30 trillion in debt most
likely before 2020. And this is just on-balance sheet debt. Off-balance sheet debt
already surpasses $100 trillion.

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