Archive for Uncategorized

Tencent now worth half-a-trillion dollars.

Tencent has became the first Chinese company to be valued at more than $500 billion.

Shares of the 19-year-old company, which is listed on the Hong Kong Stock Exchange, rallied to reach HK$418.80 to give it a market cap of HK$3.99 billion which takes past the $500 billion mark. Close rival Alibaba is Asia’s second-highest-valued firm at $474 billion.

Entry to the half-a-trillion-dollar club — which includes Apple, Alphabet, Facebook, Microsoft and Amazon — comes a week after Tencent posted a profit of 18 billion RMB ($2.7 billion) on revenue of 65.2 billion RMB ($9.8 billion) for Q3 2017. Overall profit was up 69 percent year-on-year and revenue rose by 61 percent thanks to Tencent’s games business

As SCMP pointed out, a US$9,000 investment in the company’s 2004 IPO would now be worth US$1 million.

Just looking at the last twelve months alone, Tencent’s share price has doubled thanks to impressive earnings reports like Q3.

Wired Cover -U.K. Edition

35 Chinese Cities with GDP’s the size of Countries

China’S 11.11 (Singles Day) spending goes over $25 Billion

In case your still pushing that tired meme around how the only thing
China does is export goods the truth is they can consume also. And they
like to consume big. China is an import powerhouse, and will claim the
#2 spot globally for imports.

(U.S. will always be number #1 in the category as they no longer can
produce anything with 40% corporate tax rates and a drugged out
workforce.)

Singles day spending was only $9 billion in 2014. We are seeing massive
growth in China in the e-commerce area. Like so many new economic trends
such as EV vehicles the true power of e-commerce is showing itself in
China first.

Trump is gone but the impact has been felt. A $500 Billion Dollar Trade Deficit must be addressed.

More than 10 Chinese cities to compete to host the World Cup

China now Dominating World Trade

Hollywoods China Financing Disappearing

Goldman Sachs, China’s CIC to launch up to $5 billion fund

Kyle Bass becoming more unhinged by the day.

Kyle Bass, famed Hedge fund investor is seeing his losses pile up in his
bets against China. His commentary on China looks increasingly unhinged
without facts or reason behind them.

After becoming famous for his subprime mortgage bets his fund went on to
massively underperform the markets averaging only 1.5% over the next 8 years.
He then was on the wrong side of predicting a crash in Japan and as now moved
onto China. His fund, has now become a small shadow of its former self as
investors look for returns elsewhere.

Like a modern day Captain Ahab, the white whale in the mind of Bass was
Japan and now its China. And we all know what happened to Captain Ahab.

The whale returns to Ahab, who stabs at him again. The line loops around
Ahab’s neck, and as the stricken whale swims away, the captain is drawn with
him out of sight.

From the mobile payments markets, high-speed rail,to Quantum communication.
China now has 71 unicorns valued at over $1b each.

The writing is on the wall if your smart enough to pay attention.
http://www.chinadaily.com.cn/china/2017-10/20/content_33476260.htm

China’s economy to continue blistering pace of 7% in second half of 2017

Zhou Xiaochuan said China’s gross domestic product would pick up from the
6.9 per cent figure recorded in the first six months of the year thanks to
a boost from household spending, according to a synopsis of his comments
at the G30 International Banking Seminar posted to the People’s Bank of
China website on Monday.

Mr Zhou’s comments come ahead of official third quarter GDP figures set to
be released on Thursday.

World Bank Incompetence Shows Madness of D.C. Beltway

China Money Report

The World Bank, run from Washington D.C.,is not immune from becoming completely
out of touch. Staffed by academics who have spent entire careers inside Ivory
Towers they are currently pushing the U.S. administration for more funds to
expand World Bank Lending. The global media are castigating the Trump
administration for demanding changes at theWorld Bank.

Jim Yong Kim, the World Bank’s president, has been pushing for extra financial
resources and had hoped that shareholders would agree on at least a timetable
for the increase at this week’s annual meetings in Washington.

The problem…the World Bank’s largest borrower is China. Yes, China, the same
country that has 3 trillion in currency reserves. China is the biggest recipient
of development loans borrowing $2.4b annually.These are fund thats could be going
to small developing countries in Africa to alleviate poverty or how about areas
in the U.S. that now more closely resemble 2nd and 3rd word countries than they
do the lush, wealthy confines of the Washington D.C.area.

China has become the world’s largest creditor.The China Development Bank and
the Export-Import Bank of China (CHEXIM) together lent some US$684 billion
between 2007 and the end of 2014. The next six biggest lenders, which include
the World Bank, the Japan-led Asian Development Bank and the Inter-American
Development Bank,have provided finance worth US$700 billion. These are
2014 numbers, China is lending more than the World Bank and Asian Development
Bank combined and that is before we even start to take the Belt-n-Road projects
into account.

China also has the world’s largest bank system. Chinese bank assets hit $33tn
at the end of 2016, versus $31tn for the eurozone, $16tn for the US and $7tn
for Japan.

The World Bank has clearly become yet anther D.C. institution surviving solely
to keep themselves employed.

Record Breaker: 705 million vacation trips happened over Golden week.

That’s Shanghai

National Day holiday has come and gone and, now that the crowds and traffic have
dispersed, the China National Tourism Administration has released statistics
indicating this year’s October ‘Golden Week’ was a record-breaker, with
705 million trips made domestically.

This year’s trip numbers are up 12 percent from last year, according to GRT Radio,
and stand in stark contrast to the 428 million trips made during the National Day
holiday five years ago.

Normally a seven-day holiday, this year’s National Day holiday was extended to eight
days, as it overlapped with the Mid-Autumn Festival. The extra day has been credited
with allowing more people to vacation than in past years.

Other factors responsible for the tourism boom include the ‘free-of-charge policy’
that China implements on its vast highway system during public holidays (read: no tolls)
and the nation’s ever-expanding rail network, according to People.cn.

According to estimates by China Railway Corp, 40 percent of this year’s holiday trips
were made by train. Yesterday, October 8, an additional 920 trains were put into service
by railway authorities to cope with a projected 14 million passengers.

As one would expect, the record number of travelers last week meant big bucks for the
tourism sector, with vacationers estimated to have spent RMB583 billion.

The southern Chinese province of Guangdong received a total of 48 million visitors over
the holiday, an increase of 11 percent, according to GRT Radio. The province also added
RMB38 billion in tourism revenue to its coffers.

In Shanghai, 10.6 million visitors descended on the city, according to Shine, with those
who spent the night spending an average of RMB1,023 per day during their stay – up 2.4 percent.

China will ‘compel’ Saudi Arabia to trade oil in yuan — and that’s going to affect the US dollar

Yuan pricing of oil is coming, economist says from CNBC.

Chinese Women stuck in South Korean Airport over Holiday due to Plastic Surgery

It’s fake news but the picture is real. Its not uncommon to see groups of Chinese women
in the South Korean airport having just come out of plastic surgery.

Air BnB Competitor Raises $300m @ $1.5B valuation to go global.

Japan fears China’s lead in Artificial Intelligence

This Week in Asia

Japan has announced that it is planning to invest billions of yen to fund next-
generation semiconductors and other technologies critical to AI development.

Unfortunately, analysts believe, parts of Japan’s AI sector are far behind
China, and there is little that can be done that will enable Japan to regain
its predominance.

The cost of developing new chips has become cost-prohibitive for many Japanese
firms, one of the root causes of Japan’s lacklustre performance. To address this,
the Ministry of Economy, Trade and Industry (Meti) said it will fund start-up
companies and researchers, enabling them to devise new technologies and
simultaneously develop world-class AI experts. It plans to request up to
10 billion yen (HK$690 billion) from the government’s fiscal year 2018 budget
for its initiative.

Mitsuru Ishizuka, a professor emeritus at the University of Tokyo who specializes
in AI, confesses: “Frankly speaking, the situation in Japan at the moment is very
hard and we are slipping behind the research in this area that is being done in
China.

“The government has set up two AI research centres, one under the Ministry of
Education and one under Meti, and there are many industries and companies that
are interested in AI, but there are a lot of obstacles,” Ishizuka told This Week
in Asia.

“For one thing, there aren’t so many AI researchers in Japan, certainly not in
comparison with those in this sector in China, which obviously has a far larger
population and a government that is investing very heavily in the sector,”
he added.

“The government’s efforts to promote research and development in the AI space are
a good step, but we are still behind the US and China seems to always be climbing
higher”, said Ishizuka.