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
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
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
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
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
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
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
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
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
American GDP: The Fantastic Fiction of American Economic Strength By Dan Collins Is the U.S. economy still the most powerful in the world? That is what we are told as the United States does have by far the world’s largest Gross Domestic Product (GDP). In
Youtube, Facebook, and Twitter are all blocked in China. They have algorithms in place to disrupt Google service as well which makes it very annoying even using Google here. You get many dead links when the algo’s are working. Despite blocking American companies in China,
HAITONG SEC (06837.HK) -0.500 (-2.037%) Short selling $254.74M; Ratio 31.600% announced the unaudited and unconsolidated data, with operating revenue of RMB3.073 billion and net profit of RMB1.495 billion in April, representing a surge of 2.8 times and 2.9 times from a year ago.
(Reuters) – China conducted trial runs for the planned launch of a yuan-denominated gold fix last month, three sources familiar with the matter said, in a sign the world’s second-biggest bullion consumer was moving closer to creating a benchmark price.
The state-run Shanghai Gold Exchange (SGE), on whose international platform the fix will be launched, conducted the trial with major Chinese banks and a few foreign banks, the sources said this week.
The SGE could not be immediately reached for comment.
China, also the top gold producer, feels its market weight should entitle it to be a price-setter for bullion and it is asserting itself at a time when the established benchmark, the century-old London fix, is under scrutiny because of alleged price-manipulation.
The London Bullion Market Association said last week it was considering the possibility of creating an exchange for gold trading in the city, a shift away from the over-the-counter system.
China plans to launch a yuan gold fix this year through trading of a 1 kg contract on the SGE, Reuters reported in February.
“The launch of the fix is towards the end of the year … Banks were invited in April to test the fixing process,” said one of the sources directly involved in the process.
The SGE will act as the central counterparty, unlike the London fix where the bullion banks settle trades amongst themselves, the source said.
“No final proposal on the fix has been given yet. This was like beta testing and there is still some room for discussion,” said a second source, a bullion trader who participated in the testing.
Participation for the fix will be open to members of SGE’s international board and more trial runs are expected to be conducted later, the sources said, speaking on condition of anonymity as the plans are still in initial stages.
The SGE, which has been at the forefront of China’s pricing efforts, opened an international bourse last year, allowing foreigners to trade yuan-denominated gold contracts for the first time.
Top Chinese banks including Industrial and Commercial Bank of China and Bank of Communications are members of the exchange, along with foreign banks Australia and New Zealand Banking Group, Standard Chartered and HSBC, among others.
If the Chinese fix becomes a success, it could add to the pressure on the London benchmark, which is used worldwide by producers, refiners and central banks to price holdings and contracts, although the two could exist side-by-side.
The US trade deficit exploded in March to $51.4 billion, a six-year high.
This was much more than the $41.7 billion economists had expected, according to Bloomberg. It’s the largest deficit since October 2008.
The deficit rose by 43.1%, the largest in 18 years, Bloomberg noted.
China’s Type 99 main battle tank ranks third among a list of nine of the world’s most powerful tanks from the official website of Focus magazine based in Munich on Apr. 30.
The Focus piece said a modern tank most be able to face attacks from different directions. The experience of fighting local insurgencies in Afghanistan and Iraq also demonstrates that tanks must be able to engage the enemy in urban environments, it said.
Germany’s Leopard 2 was considered the best tank on the list, with its 120 mm Rheinmetall L55 smoothbore gun and two 7.62 mm MG3A1 machine guns.
The No. 2 tank in the world is the US Army’s M1A2 Abrams which has depleted uranium mesh-reinforced composite armor that protects its crew from the majority of munitions. The tank’s turret can rotate through 360 degrees is nine seconds and it takes only two seconds for the M1A2 to reload its 120 mm L/44 M256A1 smoothbore gun. When threatened by anti-tank missiles, it can release smoke, flare and chaff decoys to disorientate the missile.
China’s Type 99 was recognized as the world’s third most powerful tank, packing a 125 mm smoothbore gun. The tank also has a liquid-cooled diesel engine with 1,500 hp.
Britain’s Challenger II, Israel’s Merkava 4, Russia’s T-90, France’s AMX-13, Japan’s Type 90 and South Korea’s K2 were the other tanks on the list, ranked in order.
On April 29, China’s Gold Association laid down some of the firmest hints that in the future, gold will be used as a primary form of money in the myriad of free trade zones and along the new Silk Road that they are constructing through the Far East and Central Asia. And in a report issued on Wednesday regarding expected gold consumption for the 4.4 billion people living within the 65 countries along the designated trade route, the accumulation of gold as both money and wealth protection has caused Eastern and Eurasian countries to purchase the metal in record amounts, and pave the way for a more secure form of trade currency after decades of using devaluing fiat scripts.
Additionally, as the center of power over the global financial system shifts from the West to the East, China and their fellow BRICS partners believe economic stability rests in a combination of free trade, and through the use of gold or other resource backed money.
South China Morning Post
A large number of affluent men in China want to be “sugar daddies”, keeping
younger women as mistresses or girlfriends, according to a matchmaking website.
SeekingArrangement.com, a site that specialises in hooking up wealthier men and
women with younger partners, said about 100,000 men on the mainland had joined
its service in recent months.
The US-based website launched its Chinese version in September last year and
said membership had increased rapidly. About a quarter of the men are married.
Media in China have dubbed the site a “broker for gold diggers” and it has
created controversy on the mainland since its launch.
Some media suggested it would encourage young women to follow the example of
the internet celebrity Guo Meimei, a 23-year-old who enjoyed publicly flaunting
her luxury lifestyle which was later revealed to have been funded by a married
businessman from Shenzhen.
The Chinese matchmaking service says on its website its members are “successful”,
“charming”, financially stable men with a mature character who will “share life
experiences with you and take you shopping, for expensive dinners and overseas
Beijing has the largest number of would-be “sugar daddies” on the mainland with
about 10,000 site members, according to SeekingArrangement.com.
They each have an average of about 12 million yuan (HK$15 million) in assets,
based on the figures they supplied when registering. Shanghai follows with nearly
8,000 members, with claimed average assets of 15 million yuan.
Most members on the mainland are in their early 30s and give their partners
between 10,000 yuan and 20,000 yuan a month, according to the website.
There are two women for every man using the Chinese site, as women can join free.
Website founder Brandon Wade said the platform aimed to help poorer women, mostly
college students, ease their financial burdens. It also helped businessmen find the
right date and emphasised that sex was not a necessary condition for any
relationships, he said.
“The average age of sugar daddies has been decreasing each year, suggesting that
professionals today have no time for traditional dating and so they want to find
high-quality dates quickly via an effective method,” he said.
Chinese patents last year were double the United States. We are entering a
time period for the next decade plus you will continue to see new science coming
out of China. If you think China is all about cheap plastic toys, wake up…your
Want China Times
China is leading the global race in the development of metamaterials, spearheading a new trend that is revolutionizing technology in fields ranging from telecommunications to aerospace, reports the overseas edition of the Communist Party mouthpiece People’s Daily.
Metamaterials are defined as materials engineered to have properties that have not yet been found in nature. They are made from complex assemblies of multiple elements fashioned from conventional materials and derive their properties from their designed structure — such as shape, geometry, size, orientation and arrangement — as opposed to the properties of the base materials.
Appropriately designed metamaterials are capable of affecting light, radar, electromagnetic waves, sound waves and seismic waves. The diverse range of areas where metamaterial has potential applications include military, aerospace, ultrasonic sensors, infrastructure monitoring, public safety, telecommunications, high-gain antennas and minimizing earthquake damage.
Metamaterials rose to prominence in 2000, when a group of physicists led by David Smith from the University of California, San Diego used the technology to create an imperfect “invisibility cloak.” However, explorations of artificial materials for manipulating electromagnetic waves actually began as early as the end of the 19th century, with Soviet physicist Victor Veselago achieving a breakthrough in 1968 for being being the first to theoretically describe negative index materials.
With the traditional reliance on high-performing materials becoming increasingly strained due to scarce resources, governments, scientific communities and industrial sectors of developed countries around the world have begun to attach great importance on the development of metamaterial technology.
Want China Times
A murder case involving the execution-style slaying of a family of four in the US may finally have been solved thanks to the corruption case against disgraced former top Chinese politician Zhou Yongkang, reports the Chinese-language news portal of Radio France Internationale.
Zhou, the retired Politburo Standing Committee member with heavy influence over the country’s oil sector, has admitted sending an assassin to kill the family, the website reported.
The website cited a report in Hong Kong’s Sun newspaper stating that Sun Maoye, an engineer living in Houston, was shot along with his wife and two children last year. The case remained unsolved, the Sun reported. The latest issue of Boxun magazine revealed however that there had been a break in the case that shook the Chinese community in the US, related to China’s ongoing anti-corruption campaign, the website stated. While in detention Zhou is said to have admitted to sending an assassin to murder the family, the website added.
I can tell you from personal experience, Fortune 500 are using RMB at an
alarmingly rate. New policies have emerged in the last several years where
of those companies buy from China, the contracts should be in RMB. With China
supply virtually all of America’s consumer goods the RMB could quickcly replace
the Dollar. So we have Oil switching to RMB and the global consumer goods market
switching to RMB. Goodnight Greenback, this is your swan song.
Non-Chinese companies are increasingly using the renminbi as an international currency and expect to more than double the volume of transactions in the next five years, despite several obstacles, according to research.
The renminbi is the second most-used currency for European and US carmakers such as Volkswagen, Daimler, Ford and General Motors, which have big markets in China.
But a survey of 150 senior executives from multinational companies found that more than half of non-Chinese companies had used the renminbi for payments outside mainland China, mainly to benefit from lower transaction and funding costs.
China is shaking up the US-dominated international finance system by inviting western countries such as the UK to join its Asia Infrastructure Investment Bank, to the dismay of Washington.
The renminbi was ranked the fifth most-used global currency, with payments doubling in 2014 on the previous year, albeit with a modest 2.2 per cent of the world’s payments, and well behind the dollar and the euro. It has since slipped back to seventh.
But the renminbi’s global standing will be enhanced in October if the International Monetary Fund decides to accord it special drawing rights, thereby giving it automatic status as an official reserve currency — although it does not meet IMF conditions on convertibility.
The study by the Economist Intelligence Unit for the law firm Allen & Overy highlights how multinational companies in the US, Europe and Asia-Pacific are expecting to increase their handling of transactions in the renminbi.
Nearly two-thirds of those surveyed who already used the renminbi said they expected the volume of cross-border transactions to more than double over the rest of the decade.
It looks like America is looking now to import productive immigrants to pay
for the native population that have largely been put on social services
and disability. America the Strong.
China has become the largest source of immigrants to the United States, according
to the most recent US Census Bureau data.
“Whether these recent trends signal a new and distinct wave of immigration is yet
to be seen,” Census Bureau researchers said.
China sent 147,000 immigrants to the US in 2013, followed by India with 129,000 and
Mexico with 125,000, according to a Census Bureau study by researcher Eric Jensen and
others released during the Population Association of America annual meeting in San
Diego on May 1.
Bill Gross’ latest monthly investment outlook for Janus Capital investors is incredibly grim.
The first two paragraphs are about how Gross has started thinking about his own death now that he is 70 years old.
“I have a sense of an ending,” he wrote. “Death frightens me.”
“Turning 70 is something that all of us should hope to do but fear at the same time,” he added. “At 70, parents have died long ago, but now siblings, best friends, even contemporary celebrities and sports heroes pass away, serving as a reminder that any day you could be next. A 70-year-old reads the obituaries with a self-awareness as opposed to an item of interest.”
And then he applied the same sense of mortality to the “great Bull Run” in stocks and bonds that began in 1981.
Many prominent investment managers have been sounding similar alarms, some, perhaps a little too soon as with my Investment Outlooks of a few years past titled, “Man in the Mirror,” “Credit Supernova” and others. But now, successful, neither perma-bearish nor perma-bullish managers have spoken to a “sense of an ending” as well. Stanley Druckenmiller, George Soros, Ray Dalio, Jeremy Grantham, among others warn investors that our 35 year investment supercycle may be exhausted. They don’t necessarily counsel heading for the hills, or liquidating assets for cash, but they do speak to low future returns and the increasingly fat tail possibilities of a “bang” at some future date. To them, (and myself) the current bull market is not 35 years old, but twice that in human terms.
“Asset prices may be past 70 in ‘market years,'” he added.
Gross slammed the idea that central banks could continue to sustain their economies and fix debt crises with more debt. He noted that the US had not seen real growth above 2% since the crisis, despite the Fed’s “trillions of dollars of monetary lighter fluid.” And that’s bad news for Japan and the eurozone.
For money managers, their tactics for the past 35 years — focusing on areas where the most capital gains can come from — will no longer work.
“This is all ending. The successful portfolio manager for the next 35 years will be one that refocuses on the possibility of periodic negative annual returns and minuscule Sharpe ratios and who employs defensive choices that can be mildly levered to exceed cash returns, if only by 300 to 400 basis points.”
China’s Fosun Offers $1.8 Billion for 80 Percent of US Insurer Ironshore
Sunday, May 3, 2015 11:03 AM
Fosun International Ltd., an investment company controlled by Chinese billionaire Guo Guangchang, said it had offered to buy the 80 percent it does not already own in U.S.
insurer Ironshore Inc. for $1.8 billion.
The move follows Fosun’s decision to buy a 20 percent stake in the casualty and property insurer for $464 million in August 2014 in a bid to expand its global insurance network.
“This acquisition will bring synergies for both parties in the prevention of currency risks, expansion of assets allocation and cooperation in reinsurance business,” Fosun said in an announcement to the Hong Kong stock exchange on Sunday.
Fosun has identified insurance has a major growth area for the group. Last year it bought the insurance arm of Portuguese state bank Caixa Geral de Depositos SA for 1 billion euros ($1.1 billion).
Ironshore had total assets of $6.7 billion at end-December 2014, although net profit after tax fell 13.3 percent to $84.5 million from a year ago, the Fosun statement said.
Gou’s conglomerate is emerging as one of China’s most acquisitive and aggressive private-sector companies as it buys a wide range of global assets.
Fosun has launched about $6 billion worth of deals in 2014 and in 2015, excluding this latest deal.
Moody’s Investors Service has estimated that these investments have largely been funded with debt, increasing its gross debt by around 40 percent.
Nevertheless, Moody’s last month upgraded Fosun’s senior unsecured debt rating, citing sizeable cash and liquid assets, and said it expected Fosun to continue to “engage in aggressive investments.”
Deals so far include the purchase of French resorts operator Club Mediterranee in a bitterly contested takeover battle.
The Ironshore deal is subject to regulatory approval, and both parties could call off the transaction if it is not consummated by March 31, 2016, the statement added.
Fosun was founded in 1992, and its core businesses comprise insurance, steel, property, pharmaceuticals and mining.
During a Politburo meeting on April 30, Communist Party chief Xi Jinping emphasized the importance of deepening reform and expanding targeted economic controls to counter downward pressure on the country’s economy and stabilize growth.
At a time when China is experiencing an economic slowdown, many manufacturers in southern China are facing possible shutdowns. In the manufacturing capital of Dongguan, for example, two subsidiaries of Taiwan-based touch panel maker Wintek Corporation have recently suspended production and a Nokia factory has also closed.
Yuan Ming-jen, an adviser to the Taiwanese Business Association in Dongguan, said the mobile phone manufacturing sector in particular is having a difficult time at present.
Intense price competition in the smartphone market is squeezing the profit margins of contract makers, leaving many small and medium-sized manufacturers in China struggling to survive, according to industry insiders.
That predicament has compelled many contractors to move their operations to Southeast Asia in recent years, with Vietnam being the most popular destination. These manufacturers are mainly attracted to Vietnam’s cheap labor costs and the most-favored-nation treatment enjoyed by the country in the European market.
Chen Zhilong, an economist at Nanjing University of Finance and Economics, said efforts by the central government to deepen reforms are crucial to reinvigorating China’s manufacturing sector.
Don’t worry unemployed youth of the West. Just keep voting for
Republicans, Democrats, Labor, and Tories. There are plenty of jobs
to go around. For you young men out there, you can of course become a butler.
And for you young hotties out there, once you loose the babyfat from your
chemically processed foods you can find gainful employment…as a whore.
China is sending a signal, If you want to play in the South China Sea, we will play in the Mediterranean.
Next stop, the Caribbean.
BEIJING (AP) — “The purpose of the exercise is to strengthen the friendly exchanges between the two sides … and to improve the capability of the two navies to deal with maritime threats,” Geng said. He said the drills did not target any third parties and were not a response to fighting and instability in places such as Libya and Syria, he said.
China and Russia frequently align on major international issues and Beijing has refused to join in the condemnations and economic sanctions leveled against Moscow for its backing of the Ukrainian rebels.
In a further show of support, Chinese President Xi Jinping plans to attend commemorations of the 70th anniversary of the end of World War II in Moscow on May 9. Most Western leaders are staying away from the event featuring a massive military parade, in which a 112-strong honor guard from the Chinese army, navy and air force will also take part.
The two nation’s militaries have increased their joint training operations in recent years, sometimes under the aegis of the Shanghai Cooperation Organization, a regional grouping formed partly to counter U.S. influence in Central Asia.
China has also looked to Russia for support in its perpetual feud with archrival Japan over World War II history and the shifting balance of power in Asia.
In other remarks Thursday, Geng harshly questioned a revision of the U.S.-Japan defense guidelines that will allow Japan’s military to play a bigger role in global military operations and work more closely with U.S. forces.
“A military alliance is an outdated product that goes against the trend of the times characterized by peace, development, cooperation and win-win,” Geng said.
“What kind of impact will it have on world and regional peace and stability to beef up the U.S.-Japan military alliance and expand their defense cooperation to the whole world? This is a question that needs to be asked by all sides,” he said.
The latest drills with Russia are a further extension of China’s drive to build a true “blue water navy” able to operate for long periods and at vast distances from home ports.
China’s navy began expanding its reach toward the Mediterranean in 2008, when it first sent ships to join in the anti-piracy patrols.
In 2011, it took the unprecedented step of sending one of its most sophisticated warships together with military transport aircraft to help in the evacuation of about 35,000 Chinese citizens from Libya. Early this April, China detached three navy ships from the anti-piracy patrols to rescue Chinese citizens and other foreign nationals from fighting in Yemen.
After the April 27 release of new defense cooperation guidelines which discuss cooperation between the United States and Japan ranging from defense against ballistic missiles, to cyber and space attacks as well as maritime security, China believes that more advanced American weapon systems will be deployed to East Asia, reports Shanghai’s China Business News.
The guidelines stated that Japan will become the base for the most advanced weapon systems the US has. Washington had already deployed a P-8 patrol plane to Kadena Air Force Base located in Okinawa and the Global Hawk unmanned aerial vehicle to Misawa Air Base in Northeastern Japan. Later this year, the USS Ronald Reagen, the ninth of ten Nimitz-class nuclear-powered super aicraft carriers the US has in service, will be dispatched to Yokosuka naval base to replace the older USS George Washington, which was the sixth.
In 2017, the US Marine Corps will deploy Lockheed Martin F-35B fifth-generation stealth fighters with vertical take-off and landing capability to Japan. More destroyers equipped with Aegis Combat Systems are also planned to be stationed in Japan as well to improve the nation’s ability to resist ballistic missiles launched from North Korea. All this, coupled with the USS Ronald Reagen, will give the US one of the world’s most powerful naval fleets in Far East.