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
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
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
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
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
Beijing: Chinese military has unveiled a range of new weapons, including long-range missiles, amid calls by its top officials to be combat-ready following a landmark verdict by a UN-backed tribunal that struck down China’s “historical rights” in the South China Sea.
The Southern Theatre Command of the People’s Liberation Army (PLA) which looks after the South China Sea front has unveiled a series of new weapons for sea and air combat during a visit by top military officers
The weapons were shown on state television in the wake of a landmark international tribunal rejecting Beijing’s claims to almost all of the South China Sea and upheld the claim of the Philippines.
Military experts said the rare public display was intended to show that the newly formed Southern Theatre Command, was well- prepared for any potential military confrontation with the US, Hong Kong-based South China Morning Post reported today.
The display conceded with the visit to the centre by General Fan Changlong, vice chairman of the Central Military Commission (CMC), China’s highest military official after President Xi Jinping. Xi heads the CMC and the overall high command of the PLA.
General Fan has called on troops to be ready for combat and for improvements in equipment and logistical preparation.
Officers and soldiers need to be aware of current threats to China’s sovereignty, security and interests, state-run Xinhua news agency quoted him as saying in an official statement.
He asked the military to research combat methods and strategies pertinent to different situations and foster special forces reserved for key sions and scenarios.
“Air and sea patrols should be tightly organised to handle all kinds of emergencies and safeguard air and sea security in border areas,” General Fan said.
General Fan was accompanied by Gen Ma Xiaotian, commander of the PLA Air Force and General Wei Fenghe, chief of the army’s Rocket Force, which operates the country’s missile arsenal.
Beijing-based naval expert Li Jie said General Fan’s visit indicated that the southern command could carry out joint combat operations of land, rocket, naval and air forces as well as other strategic support forces.
“All the weapons showed on state media are defensive arms of short to medium range within 1,500 km, meaning China so far is using restrained deterrence to warn the US not to challenge Beijing’s bottom line in the South China Sea,” Li said.
State broadcaster CCTV showed footage of troops in the southern theatre handling the DF-16 missile, which has a range up to 1,000 km, the report said.
The missile, which was first displayed on September 3 last year in a military parade to mark the 70th anniversary of the end of the Second World War, could strike US military bases in Okinawa.
US Navy’s newest $12.9bn supercarrier doesn’t work: Most expensive warship ever built ‘struggles with jets taking off and landing’
We have been warning in our writing for the last several years not to pay
attention to military budgets. Just spending money does not guarantee
performance. Most of the U.S. very expensive war machine is a dud.
The nuclear fleet is still using floppy discs. The new F-35 Fighter
can’t fight. And now as China is developing more sophisticated equipment the
the U.S. is busy rolling out standards for transgendered soldiers.
US Navy’s newest $12.9bn supercarrier doesn’t work: Most expensive warship ever
built ‘struggles with jets taking off and landing’
$12.9 billion warship, the USS Gerald R. Ford, is not ready for combat, the
Department of Defense says the massive ‘supercarrier’ is the most expensive Navy
warship ever built and is due to be commissioned this year the ship delivery is
scheduled for November, more than two years late of its original date of
September 2014. A government memo says ‘poor or unknown reliability issues’ are
behind the latest roll out problems with the ship
The most expensive warship ever built has been delayed from hitting the front line
because it is reportedly not ready for battle.
The $12.9 billion USS Gerald R. Ford Navy supercarrier – the first of three in its
class with a total cost of $43 billion – could potentially struggle with planes
landing and taking off, moving military weapons and being able to successfully
defend itself, a memo obtained by Bloomberg News reads.
The memo allegedly states ‘poor or unknown reliability issues’ were identified in a
letter dated June 28. These four systems affect major areas of flight operations,’
Defense Department Director of Operational Test and Evaluation Michael Gilmore wrote
to Pentagon and Navy weapons buyers, according to Bloomberg News.
‘Unless these issues are resolved, which would likely require redesigning, they will
significantly limit the CVN-78’s ability to conduct combat operations.
China has surpassed the US and Japan to become the new leader in the game category of the iOS app market in the latest quarter, according to a report released by US-based analytics firm — App Annie on Tuesday.
It said with the iOS Games category taking home about 75 percent of all revenue, the country’s leap to the top is attributed to explosive growth for locally developed massively multiplayer online role-playing games (MMORPGs).
In the mid of April, statistics released by App Annie predicted that China would surpass other markets around the globe in the coming quarters this year, highlighting that the growth was driven “almost entirely by games”.
The county’s iOS revenue more than doubled in the first quarter compared to the same period last year, according to the company.
Another mobile market monitor — Newzoo noted that China is set to reach a $10 billion mobile games market this year, saying Tencent and NetEase are by far the most dominant publishers in the nation.
According to Newzoo, NetEase ranked the top grossing publisher on domestic iOS game market this month while Tencent alone claimed about 45 percent of Chinese Android game revenues in May, publishing 23 of the top 100 titles.
Earlier this month, Tencent announced investment in Finnish mobile gaming company Supercell Oy, spending $8.6 billion to acquire up to 84 percent of the latter’s shares, which is believed by the industry as a strategy to accelerate the globalization of the company.
In a recent exclusive interview with China Daily, Bertrand Schmitt, CEO and co-founder of App Annie, said China accounts for about 20 percent of the world’s gross app store revenue and it is expected to take about 30 percent of total revenue by 2020.
The country’s gross app store revenue totaled $8.7 billion in 2015 and will reach $30.9 billion in 2020, according to App Annie.
According to GAAP accounting levels the U.S. debt is already over $100 trillion.
The $19.4 trillion and counting is only on the current account. $30 trillion here
(CNSNews.com) – The federal debt moved above $19,400,000,000,000 for the first time as of the close of business on Tuesday, according to the data released today by the U.S. Treasury.
At the close of business on Monday, July 18, the total federal debt was $19,391,094,247,028.26, according to the Treasury. By the close of business on Tuesday, July 19, it had risen to $19,402,361,890,929.46.
On Friday, Oct. 30, 2015, Congress passed the “Bipartisan Budget Act,” which suspended the legal debt limit until March 15, 2017. President Obama signed that bill into law on Monday, Nov. 2, 2015
At the close of business on Oct. 30, the federal debt stood at $18,152,981,685,747.52.
In the less than nine months since then, the federal debt has increased by $1,249,380,205,181.94
European Media Warns of Russia while their populace is being slowly exterminated by Radical Islamists
European media are warning against a recent NYT interview in which Donald Trump
was asked if he would back up Baltic States against a Russian invasion. We are
not sure if they are more afraid of Russians or actually having to pay the bills
for their own defense. We are also not sure why they were not asking him how he
could help Europe by destroying ISSIS. Last we checked, the European body count from
Russians in the last 60 years was exactly zero meanwhile the threat from Radical
Islam grows by the day as the bodies continue to pile up over these savage attacks.
Indeed, one must start to wonder if the Europeans are not feeling a bit of Stockholm
Syndrome from the attackers in their midst. You know Stockholm, the rape capital of
the world outside Sub-Saharan Africa.
Over the long term, demographics will turn Europe into the Middle East….but watch
out for those Russians!
The NYT Article as paraphrased is below
SANGER: I was just in the Baltic States. They are very concerned obviously about this new Russian activism, they are seeing submarines off their coasts, they are seeing airplanes they haven’t seen since the Cold War coming, bombers doing test runs. If Russia came over the border into Estonia or Latvia, Lithuania, places that Americans don’t think about all that often, would you come to their immediate military aid?
TRUMP: I don’t want to tell you what I’d do because I don’t want Putin to know what I’d do. I have a serious chance of becoming president and I’m not like Obama, that every time they send some troops into Iraq or anyplace else, he has a news conference to announce it.
SANGER: They are NATO members, and we are treaty-obligated ——
TRUMP: We have many NATO members that aren’t paying their bills.
SANGER: That’s true, but we are treaty-obligated under NATO, forget the bills part.
TRUMP: You can’t forget the bills. They have an obligation to make payments. Many NATO nations are not making payments, are not making what they’re supposed to make. That’s a big thing. You can’t say forget that.
BEIJING has sent the US a message in the skies above the South China Sea:
Anything you can do, we can do too. It’s just flown a nuclear-capable bomber
over Scarborough Shoal.
The United States has conducted several B-52 bomber ‘freedom of navigation’
flights over the contested waterway in recent months, along with flights by
surveillance and patrol aircraft.
Beijing on Friday returned the favour.
The People’s Liberation air force (PLAAF) at the weekend released photographs of
one of its newest H-6K long-range nuclear-capable bombers overflying Scarborough
Shoal on China’s Weibo social media service. The aircraft, based on a 1950s Russian
design, is capable of delivering nuclear weapons throughout Asia.
The shoal is occupied by the Philippines, but China claims the outcrop as part of
its ‘Nine-Dash Line” territory under the name of Panatag Shoal.
On Friday, the same day as the bomber overflight, four Chinese Coast Guard vessels
blocked Filipino fishermen from accessing Scarborough waters.
The incidents came just days after an international arbitration court in The Hague
rejected Beijing’s claim to territorial sovereignty over the vast majority of the
South China Sea. The challenge, issued by Manila, had been rejected as invalid by
China which refused to take part in proceedings..
It also comes after an April overflight of Scarborough Shaol by US air force A-10
antitank attack aircraft.
It’s full-on open season on the West as its major cities are turned into
refugee camps by the New World Order. The population replacement is in full
gear as the dying West is in the twilight of their existence. If you need any
more evidence to this fact just observe Western backlash against the most
recent terror attacks…hunting invisible characters.
SHANGHAI shares closed above 3,000 points yesterday as state-owned companies performed strongly amid an upbeat sentiment in the post-Brexit period.
The Shanghai Composite Index gained 0.6 percent to end at 3,006.39, above the 3,000-point level for the first time since mid-April.
“Asian shares dismissed earlier losses and ventured higher following the renewed risk appetite, as a strong sense of relief elevated the global markets with major stocks showing stability in the post-Brexit era,” Lukman Otunuga, research analyst at FXTM, wrote in a note yesterday.
State-owned enterprises gained after President Xi Jinping said they are an important foundation for national development and guarding people’s interests.
He demanded efforts to enhance their vitality, competitiveness and risk resistance capacity, according to a statement released after a symposium on SOE reform.
Luoyang Glass Co jumped 3.99 percent to 28.42 yuan (US$4.27). Yueyang Forest and Paper Co added 3.38 percent to close at 6.43 yuan.
Beijing must prepare to make the US “pay a cost it can’t stand” if it intervenes in the South China Sea dispute by force, a state newspaper editorial has warned, days before a court at The Hague rules on the territorial row between China and the Philippines.
The American military build-up in the South China Sea, including the deployment of two carrier strike groups, comes in defiance of China’s vital interests and represents “a direct threat to national security,” the state-run Global Times said in strongly-worded editorials in its Chinese and English editions on Tuesday.
Beijing should accelerate developing its strategic deterrence capabilities to contain the United States, the newspaper added.
“Even though China cannot keep up with the US militarily in the short-term, it should be able to let the US pay a cost it cannot stand if it intervenes in the South China Sea dispute by force.”
China is a peaceful country that welcomes dialogue on the disputed region, the influential newspaper wrote, “but it must be prepared for any military confrontation.”
The Global Times is believed to have close ties with the government as it operates under the auspices of the Communist Party’s official newspaper, the People’s Daily.
The Tuesday editorial went online a week ahead of a ruling by the International Court of Arbitration in The Hague on the South China Sea dispute between China and the Philippines. In 2013, the Philippines filed a complaint with the court, asking it to rule on who owns the Spratly Islands, which lie at the heart of economically important shipping routes in the area.
China sees the ruling – which is due to be announced on July 12 – as “posing more threat to the integrity of China’s maritime and territorial sovereignty,” the Global Times stated, claiming “the arbitration becomes nothing but a farce.” Beijing has said it will not recognize the ruling.
China has taken a lessonfrom arch Bond villain Ernst Stavro Blofeld whom in the
movie You Only Live Twice decides to launch a rocket ship which had the
ability to capture space capsules. Its a genius move to launch a program with
good intentions, in this case cleaning up space debris but in a time of conflict
could be used to gobble up American Military satellites. With such a small payload
they could be produced in “Swarm” like numbers leaving a highly technologically
dependent U.S. military with virtually zero command and control of its defense
Diplomacy and Defense
Is China militarising space? Experts say new junk collector could be used as
Craft could be used to attack satellites, according to some researchers.
A small spacecraft sent into orbit by the Long March 7 rocket launched from Hainan
in southern China on Saturday is tasked with cleaning up space junk, according to
the government, but some analysts claim it may serve a military purpose.
The Aolong-1, or Roaming Dragon, is equipped with a robotic arm to remove large
debris such as old satellites.
Tang Yagang, a senior satellite scientist with the China Aerospace Science and
Technology Corporation, said the Aolong-1 was the first in a series of craft that
would be tasked with collecting man-made debris in space.
For instance, it could collect a defunct Chinese satellite and bring it back to earth,
crashing it safely into the ocean, he said.China on schedule to launch second space
station this year after recovery of probe
“China, as a responsible big country, has committed to the control and reduction of
space debris. In order to fulfil the obligations and responsibilities, our country is
[working endlessly towards] achieving a technological breakthrough in space debris
removal technology,” Tang says on the website of the China National Space
But the question is: did China develop the cutting-edge technology only to clean
up space junk?
It is unrealistic to remove all space debris with robots. There are hundreds of
millions of pieces drifting out there,” said a researcher with the National
Astronomical Observatories in Beijing.
To the military, the robot had potential as an anti-satellite weapon, the researcher
said.The Roaming Dragon is small, weighing only a few hundred kilos, so the prototype
could be produced and launched in large numbers.
During peacetime, the craft could patrol space and prevent defunct satellites from
crashing into big cities such as Shanghai or New York.
During wartime, they could be used as deterrents or directly against enemy assets
in space, said the researcher.
U.S. Vice President Joe Biden, never one for a loss of words, told Chinese President Xi Jinping that Japan has the capacity to acquire nuclear weapons “virtually overnight.” Biden made his disclosure while giving a speech at a Public Broadcasting Service program aired on Monday. Biden said he had urged Xi to exert influence on North Korea so it will abandon its missile and nuclear weapons developments. Referring to North Korea’s recent nuclear test and missile launches in violation of U.N. Security Council resolutions, Biden said that if China and the U.S. fail to take effective action against North Korea, “What happens if Japan, who could go nuclear tomorrow? They have the capacity to do it …
Biden made his disclosure while giving a speech at a Public Broadcasting Service program aired on Monday. Biden said he had urged Xi to exert influence on North Korea so it will abandon its missile and nuclear weapons developments.
Referring to North Korea’s recent nuclear test and missile launches in violation of U.N. Security Council resolutions, Biden said that if China and the U.S. fail to take effective action against North Korea, “What happens if Japan, who could go nuclear tomorrow? They have the capacity to do it virtually overnight.” Biden did not say when his conversation with Xi took place.
Biden said that China had the single greatest ability to influence North Korea, adding that North Korea is building nuclear weapons that can strike as far away the U.S. mainland.
“And I say, so we’re going to move up our defense system,” the vice president added, referring to the U.S. plan to deploy THADD (Terminal High Altitude Area Defense), an advanced missile interception system, in South Korea.
Biden quoted Xi as saying, “Wait a minute, my military thinks you’re going to try to circle us.” Earlier this month China said that deploying THADD infringes on China’s strategic interests.
Yu Tang Sports
It is rumoured that the $4.2billion sale of Ultimate Fighting Championship
(UFC) is “done”. According to a report by FloCombat.com, it does not mean
the company is officially sold but there is “a strong likelihood that the
sale will be completed shortly.”
According to earlier reports, the winner is said to be a consortium
comprising WME-IMG, the Dalian Wanda Group, The Kraft Group and Tencent
Holdings. China Media Capital (CMC), the rumoured opposing group, fell
well short of the asking price.
UFC President Dana White is expected to remain following the sale, while
UFC CEO Lorenzo Fertitta would relinquish his role with the organization.
However, UFC representatives have repeatedly denied claims that the mixed
martial arts organization was for sale.
“FloCombat.com’s report indicating that the UFC has been sold is false,”
a UFC spokesperson said, “We’ve communicated that to our staff members
via an internal memo.”
A new supercomputer from China has topped the latest list of the world’s
most powerful machines.
The 93 petaflop Sunway TaihuLight is installed at the National Supercomputing
Centre in Wuxi. At its peak, the computer can perform around 93,000 trillion
calculations per second.
It is twice as fast and three times as efficient as the previous leader
Tianhe-2, also from China, said Top500 which released the new list on Monday.
Its main applications include advanced manufacturing, weather forecasting and
big data analytics, wrote Jack Dongarra in a paper about the new machine.
It has more than 10.5 million locally-made processing cores and 40,960 nodes
and runs on a Linux-based operating system. For the first time since the list
began, China has overtaken the US with 167 computers in the top 500 while
the US has 165.
“Considering that just 10 years ago, China claimed a mere 28 systems on the list,
with none ranked in the top 30, the nation has come further and faster than
any other country in the history of supercomputing,” said Top500.
The US has four supercomputers in the top 10 of the Top500 list, while China
has two which currently occupy the top two places.
The other positions in the top 10, published twice a year, are occupied by
machines from Japan, Switzerland, Germany and Saudi Arabia.
“As a computer scientist it’s difficult writing software that can take advantage
of and control large numbers of computer cores,” said Professor Les Carr from
the University of Southampton.
“This is why supercomputers are restricted to specialised applications –
you need very specialised computing needs to take advantage of them.
“They are like extremely high-spec Grand Prix racing cars – they are fantastic
for racing on circuits but they’re not great for travelling from London to
The growth of outbound direct investment from China is remaining steady this year, leaving the world’s second-largest economy on track to exceed last year’s record figure, experts said on Friday.
“The robust growth of China’s outbound direct investment will not change in the short term. The economic situation demands that domestic companies deploy more people and resources to fuel their growth in overseas markets,” said Li Guanghui, vice-president of the Chinese Academy of International Trade and Economic Cooperation.
China’s non-financial outbound direct investment surged almost 62 percent year-on-year to 479 billion yuan ($74 billion) between January and May this year, data from the Ministry of Commerce show.
Major investment destinations were members of the Association of Southeast Asian Nations, Australia, the European Union, Japan, Russia and the United States, which received $59 billion, about four-fifths of the total.
Ministry spokesman Shen Danyang said Chinese companies invested in 151 countries and regions in the first five months of this year, with countries and regions along the Belt and Road Initiative remaining the hot spots as companies deployed their financial resources.
The trade and infrastructure network proposed by China in 2013 envisions a Silk Road Economic Belt and a 21st Century Maritime Silk Road, covering about 4.4 billion people in more than 60 countries and regions in Asia, Europe and Africa.
China invested $5.63 billion in 49 countries and regions along these two trading routes during the five-month period, up 16 percent on a year-on-year basis.
“Many opportunities come from the growing demand in these countries for improved infrastructure facilities, power stations, services and regional connectivity, as well as their desire to create jobs and new commercial areas,” said Shen.
In the meantime, ODI to North America, Oceania, Asia and Latin America rose 208 percent, 72 percent, 63 percent and 51 percent, respectively.
Besides that, the first batch of investments by the Asian Infrastructure Investment Bank will also be announced on June 24 during its third board meeting, which is expected to stimulate more outbound capital from China and its partners to invest in quality big-ticket projects.
Lin Guijun, a professor of international business at the University of International Business and Economics in Beijing, said that the persistent drag of the global economic downturn on the European and US economies has helped create an “ideal external investment environment”, especially for the emerging markets.
Foreign investors sold a record amount of U.S. Treasury bonds and notes for the month of April, according to U.S. Treasury Department data on Wednesday, as investors priced in a few more rate increases by the Federal Reserve this year.
Foreigners sold $74.6 billion in U.S. Treasury debt in the month, after purchases of $23.6 billion in March. April’s outflow was the largest since the U.S. Treasury Department started recording Treasury debt transactions in January 1978.
Private offshore investors sold $59.1 billion in U.S. government bonds, while foreign official institutions, which include central banks, sold $12.3 billion.
U.S. economic data in April included a decent non-farm payrolls report for March, along with strong manufacturing as measured by the Institute for Supply Management. That prompted investors to sell Treasuries in April, as did an upswing in risk appetite, with buoyant global stocks and rebounding oil prices.
Yields on U.S. 10-year Treasury notes at the beginning of April were 1.7910 percent, and they hit a high of 1.9410 late in the month.
China remained the largest foreign holder of U.S. government debt, although its holdings in April declined to $1.2443 trillion, from $1.245 trillion in March. U.S. Treasury holdings of the world’s second largest economy declined for a second straight month.
Japan, the No. 2 foreign U.S. Treasury debt holder, posted higher U.S. government debt holdings of $1.143 trillion from $1.137 trillion in March. Japan raised its U.S. Treasury holdings for a fourth straight month.
The report also showed for a second consecutive month U.S. Treasury holdings of Saudi Arabia and other oil-producing countries. Saudi Arabia has the largest Treasury holdings among the Gulf oil exporters with $113.0 billion, down from $116.8 billion the previous month.
Overall, foreign central bank holdings of U.S. Treasuries contracted to $6.239 trillion in April, from $6.287 trillion in March.
Data also showed that foreigners sold long-term U.S. securities in April after buying them for the previous two months.
Offshore investors unloaded $79.6 billion in long-term U.S. assets, after purchasing $78.1 billion the previous month. Including shorter-dated securities, however, overseas investors bought $80.4 billion in April after selling $98.1 billion in March.
U.S. stocks, meanwhile, showed outflows for a third straight month, with foreigners selling $2.8 billion in April from $16.5 billion in March. Foreigners have sold U.S. equities in eight of the last nine months.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Alan Crosby and David Gregorio)
China to maintain growth in entertainment, media: report
By Agenceis Source:Xinhua Published: 2016-6-13 23:02:04
China is likely to maintain its growth in entertainment and media (E&M) industries, a PwC report showed Monday.
The accounting firm predicted China’s E&M revenue will amount to 258 billion U.S. dollars by 2020 with a compound annual growth rate (CAGR) of 8.9 percent, markedly higher than the world average of 4.4 percent.
Internet advertising, cinema and video games are projected to see CAGRs of 13.9 percent, 18.9 percent and 7.4 percent respectively over the 2015-2020 period.
The rapid growth will be a good for the wider economy, according to PwC China’s Sandy Xu.
Xu believes E&M has become a significant segment of China’s tertiary sector, a new economic driver that has been on the rise after the falling of exports and heavy industry.
The PwC’s report on global E&M outlook covered 13 related industries in 54 countries.
China is comfortably Asia’s largest Internet advertising market and the second largest in the world, accounting for 29 percent of the world’s total in 2015. PwC forecast the share will increase to 31.9 percent by 2020.
“Stable economic performance and a growing middle class with an appetite for technology underpin China’s Internet advertising,” Xu said, “The large population and limited broadband access are strong indicators for further growth.”
Cinema will be another growth area, said the report. China will overtake the United States as the country with the largest box office revenue by 2017, reaching 10.3 billion U.S. dollars. The figure is expected to hit 15 billion U.S. dollars by 2020.
The PwC attributed the boom to the fact that China’s population remain relatively under-served due to the limited number of cinemas. The country’s movie screens per 1 million people (23) is still dwarfed by the United States (125).
The world’s third largest video game market, China will see the sector’s total revenues jump to 12.8 billion U.S. dollars by 2020 from 8.9 billion in 2015, helped by virtual reality and online payment models.
The report said China will outperform most of the world in music and magazines, but will stay slightly lower than world averages in TV ads and book publishing.
Jackie Chan: This has scared the Americans. People from all over the world who study film will learn Chinese, instead of us learning English.”
Jackie Chan: Warcraft’s success in China scares Americans
Actor says fantasy adventure’s £156m gross during its first week will cause an influx of Chinese-language blockbusters
The $160m (£113m) film, which grossed a mere $24.4m in the US its opening weekend, surprised analysts with $156m at the Chinese box office from its first five days in cinemas.
Speaking this weekend at the Shanghai film festival, Chan said the result will worry Hollywood execs. “Warcraft made 600m yuan [£64m] in two days. This has scared the Americans. If we can make a film that earns 10bn [£1bn], then people from all over the world who study film will learn Chinese, instead of us learning English.”
The annual gross of China’s box office is expected to surpass North America, according to the Hollywood Reporter. The popularity of blockbusters in China and financing from companies there have influenced both where some blockbusters are filmed and who stars in them. Transformers: Age of Extinction, for example, was partly funded by the China Movie Channel, which led to Li Bingbing joining the cast and part of the film being set in Hong Kong. Iron Man 3, meanwhile, added footage for Chinese audiences that included the Chinese actor Fan Bingbing.
A sequel to Pacific Rim, which underperformed in the US, was greenlit after it became a hit in China. Pacific Rim and Warcraft were produced by Legendary Pictures, which the Chinese company Dalian Wanda Group bought in January for a reported $3.5bn.