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Chinese Fund Managers Sentenced to Death after Cheating Investors out of 1 Billion USD

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

Gold at $7,000 article goes viral in Chinese media

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

Western paper markets manipulate gold prices lower as China takes the real stuff off the market.

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….This is getting sad

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

“American Collapse Theory” Gaining Ground in China

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

China Car Sales Up 22.6% -The Chinese economy is collapsing?

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,

Cloud Computing in China booming as American giants are pushed out

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

Oil rig dispute could see repeat of Sino-Vietnamese War: report

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

France relents to China, Chinese police to help patrol Paris streets

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

People’s Bank of China will take down global gold price manipulation

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

China to lower reserve requirement ratio

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

Chinese Officials Falsify Data To Mask Slowdown, NYT Says

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 Learning the Hard Way, Destroying your Currency is Not an Economic Strategy

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

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

Government tells Huawei that they are not allowed to spy on Americans. Only they can do that.

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,

Guiyang becomes China center for Big Data

The Global Big Data Exchange (GBDEx), will be established in Guiyang in China’s southwestern province of Guizhou with registered capital of 50 million yuan (US$8.05 million)

The exchange will provide various services, including data cleaning, modeling, and data platform development. Trading of big data services on the exchange will be conducted electronically, matching clients’ requests with offers.

Meanwhile, the Guiyang government has been ramping up its efforts to develop the city as a base for China’s big data industries, signing 138 development deals totaling 132.61 billion yuan (US$21.33 billion) last year, the reports said. An additional 61 investment deals valued at 50.64 billion yuan (US$8.14 billion) are reportedly set to be finalized before 2017.

As a participant in the city’s big data technology drive, Hon Hai investments there include joint construction of technology and science parks for cloud computing and semiconductor production, and research centers for nanotechnology.

Known as the green tunnel, a data center in Guizhou built by Hon Hai uses the region’s geological features to achieve energy-efficient cooling.

The company has also secured agreements with the local governments in Guizhou and Guiyang to develop new applications for cloud and mobile computation technologies across the province in collaboration with Alibaba and 21Vianet Group.

guiyang

Meet the Man Building Elon Musk’s 760MPH Hyperloop: Interview with Dirk Ahlborn

HK Bull Run: Structural or Stimulus Driven

China equity advance creates new corporate giants

FT

China Construction Bank (CCB) has overtaken JPMorgan, Facebook and Chevron
in terms of size,underlining how a dramatic stock market rally in Hong
Kong is reshaping the league table of the world’s largest companies.

CCB, China’s second largest lender by assets, has risen by a fifth in the
past month,giving it a market capitalisation of $248bn. It is now the 15th
biggest company on the FTSE All World index, and the third ranked bank
after local rival ICBC and US-based Wells Fargo.

China Merchants Bank rose by 25 per cent on Monday alone, putting it ahead
of Barclays, Mitsubishi UFJ, and Royal Bank of Canada, with a market cap
of $91bn.

Online games maker Tencent — up 27 per cent over the past month — is now larger
than Amazon, Oracle, and Samsung Electronics, while Air China has a bigger
market cap than Singapore Air and Cathay Pacific combined, following a
42 per cent rise.

Hong Kong Exchanges & Clearing, the stock market operator, has seen the most
dramatic change. Its 65 per cent rise during April has given it a market cap
of $44bn, higher than CME and London Stock Exchange put together, and
comfortably the world’s top listed exchange group.

Citic Securities, China’s leadering brokerage, has gained 45 per cent over
the past month. At $61bn, it now has a significantly larger market cap than
either Blackstone or Credit Suisse. China Construction Bank market capitalization.

On Monday the Hang Seng rose for an 8th consecutive day, with a 2.7 per cent
gain giving the index its first close above 28,000 points since late 2007.
The total capitalization of all listed shares in Hong Kong topped HK$30tn for
the first time ever, while turnover continued to be strong after setting new
record last week. The market has risen 17.6 per cent in the past month, and
is now the best performer in the world this year outside the Chinese mainland.

UK’s risky obsession with US decline

FT
Gideon Rachman

Many policy makers seem to see the rise of China as inevitable

Rome fell. Babylon fell. Hindhead’s turn will come.” George Bernard Shaw’s bon mot in Misalliance was a reminder to British theatre audiences in 1910 that all empires eventually decline and fall. The fact that Hindhead is an English village was a light-hearted cloak for a serious point.

As an Irishman, Shaw may have found it easier than the English to joke about the decline of the British empire. But, these days, it often falls to British academics based in America to play the role of the insider-outsider, commenting on the decline of today’s pre-eminent global power, the US. In the long-running debate about the future of American power, some of the most influential “declinists” are British historians working at American universities: Paul Kennedy at Yale, Nial Ferguson at Harvard and Ian Morris at Stanford.

This British tendency to believe that America’s “empire” will decline is more than just a curiosity of intellectual debate. It also has real-world effects. Behind the scenes,
many British policy makers also seem to be operating on the assumption that the continuing rise of China and the relative decline of America are both inevitable. As a result, they are making decisions that reflect a cautious adaptation to this wind of change. Britain’s recent decision to defy Washington and join the China-led Asian Infrastructure Investment Bank is one straw in that wind.

The British “declinists” have also had a big impact on America’s own debate about the future. Mr Kennedy’s The Rise and Fall of the Great Powers was a best-seller in the US when it came out in 1987 and has shaped the discussion ever since. In the late 1980s, an era of high budget deficits and industrial decline, his argument that America — like Spain and Britain before it — would succumb to “imperial overstretch” seemed particularly persuasive. Paraphrasing Shaw, he predicted: “Rome fell; Babylon fell; Scarsdale’s turn will come.”

Mr Ferguson, a historian of the British empire and much else, has also become a public intellectual in the US. His Colossus: Rise and Fall of the American Empire, came out in 2004, just as America was becoming bogged down in Iraq. Subsequently, Mr Ferguson has argued: “The 21st century will belong to China.”

The third member of this triumvirate of declinist Brits, Ian Morris, caused a stir with his book Why the West Rules — For Now (2010). He too is preoccupied by the rise and fall of empires, and draws parallels between modern America and Edwardian Britain.

It is possible that British professors based in America have the right combination of knowledge and detachment to have an unclouded vision of America’s future. Alternatively, it is also possible that they may be over-projecting the fate of the British empire on to its rather more robust American successor. Joseph Nye, a professor at Harvard (and an American) points out that: “By the outbreak of World War I, Britain ranked only fourth among the great powers!.!.!.!in GDP, and third in military spending.” By contrast, America still has the largest or second-largest economy in the world (depending on the measure you choose) and easily the biggest military budget.

What is more, the collapse of the British empire was precipitated by the draining effects of two world wars, which left the UK close to bankrupt. If the US can avoid being sucked into a similar global conflict, it should do a better job of preserving its power.

Chinese markets up 23% in 1 month!

China’s CSI 300 Index hits 4,344 up an astonishing 23.26% in 1 month alone.

Here are some other recent data from the week.

Apr 6, 2015 – China’s corporate bond market would have its second default after Internet company Cloud Live Technology Group Co. said it will miss payments.

Apr 7, 2015 – The PBOC conducted 20 billion RMB of 7-day reverse repo operations at 3.45%, 10bps lower than the last same contract. There were 50 billion RMB of repo contracts maturing this week.

Apr 9, 2015 – The PBOC offered 15 billion RMB of 7-day reverse repo contracts at 3.45%. The central bank drained 15 billion RMB liquidity from the banking system this week.

siren

PetroChina overtakes ExxonMobil to become world’s biggest energy company

The capitalization of China’s biggest oil producer PetroChina reached $352.8 billion during Thursday trading in Shanghai, surpassing ExxonMobil as the world’s most valuable energy company for the first time since 2010.

The market cap of America’s Exxon reached $352.6 billion in Shanghai Thursday trading, Bloomberg reports. PetroChina’s market cap has gone up 13.81 percent in the last 12 months while Exxon’s market value has fallen by 14 percent, following the slump in oil prices. Moreover, the Chinese company’s Class-A shares have gained 61 percent since last April.

Asian PE Deals Hit Record High in 2014

Private equity activity in the Asia-Pacific region hit a record in 2014.

Total deal value in the region reached $81 billion, compared to $50 billion in 2013,
according to a new report from Bain & Co. The previous high was $77 billion reached in 2007.
Exits, including IPO and trade sales, also hit an all-time high in 2014, reaching $111 billion. This was more than twice 2013’s level of $51 billion, according to the report. Bain cited China’s decision to reopen its IPO market as a primary driver of the increase.

In terms of location, the Bain report noted that China, Hong Kong and Taiwan were responsible for more than half the deal value during the year, inking $40 billion worth of transactions. Korea was next, with more than $10 billion in deals. The two totals represent year-over-year increases of 182% and 34%, respectively, over 2013.

China Life, Ping An take majority stake in $500 million Boston property project

BEIJING (Reuters) – China’s two biggest insurers are funding the majority of a $500 million commercial real estate project in the United States, a person with knowledge of the deal said, in the latest offshore property investment by China’s cash-rich financial institutions.

China Life Insurance Co Ltd (601628.SS)(2628.HK) and Ping An Insurance Group Co of China Ltd (601318.SS)(2318.HK) have partnered New York developer Tishman Speyer Properties LP in a deal that will see each party invest about $167 million in the first phase redevelopment of Boston’s Pier 4, the person said.

Tishman Speyer declined to provide immediate comment, while China Life declined to comment and Ping An could not be reached. The Wall Street Journal reported the tie-up early on Wednesday.

Chinese insurers have been on a shopping spree over the past three years since a ban on foreign property investment was lifted. They are permitted to invest abroad up to 15 percent of their roughly 10.5 trillion yuan ($1.69 trillion) in assets.

China Life and Ping An have invested in property in London, and Boston would be their first project in the United States.

“Insurance companies tend to look for large, trophy buildings in key gateway cities,” said David Ji, Knight Frank head of Greater China research and consultancy. “It’s only a matter of time before they shift their focus from the U.K. and Australia to the U.S., because that’s where the volume is.”

Chinese overseas property investment grew 46 percent in 2014 to $16.5 billion, with London and Sydney the top destinations and nearly 70 percent going into commercial real estate, showed a January report by consultancy Jones Lang LaSalle. The amount is likely to reach $20 billion this year, the consultancy said.

In February, unlisted Anbang Insurance Group Co completed a $1.95 billion purchase of New York’s Waldorf Astoria Hotel.

China Life and Ping An’s transaction closed in March, said the person with knowledge of the deal, who was not authorized to speak with media on the matter and so declined to be identified.

In an earlier statement, Tishman Speyer said the Boston project would comprise a 13-storey office block and nine-story, 100-apartment luxury condominium tower.

Tishman Speyer, which has offices in Beijing and Shanghai, has been seeking Chinese partners to co-fund U.S. projects. In 2013, it partnered China Vanke Co Ltd (000002.SZ)(2202.HK) to build two condominium towers in San Francisco.

Japan could turn Izumo into full carrier facing China threat: expert

China’s development of fifth-generation stealth fighters such as the Chengdu J-20 and Shenyang J-31 may eventually force the Japan Maritime Self-Defense Force to adapt its recently commissioned Izumo helicopter destroyer into a full aircraft carrier, American defense expert Kyle Mizokami writes for the Week magazine based in New York.

Mizokami said the Izumo was designed originally as a destroyer that could carry helicopters. However, it is not an ordinary destroyer. “Destroyers are not 800 feet long nor do they displace 24,000 tons,” Mizokami wrote. “They also don’t have a flight deck that runs the entire length of the ship, aircraft hangars, and the capability to embark up to 14 helicopters.” He said this is the reason most countries in the world, particularly China, consider the Izumo to be an aircraft carrier.

Before it was destroyed in World War II, Japan had one of the world’s most powerful fleets of aircraft carriers. Mizokami said that the Imperial Japanese Navy sent six aircraft carriers to attack the US naval base at Pearl Harbor. They convinced the world that the days of the battleship were over, Mizokami said. After losing nearly all of its aircraft carriers by the end of Pacific War, Japan vowed never to produce offensive weapons again in its postwar peace constitution.

Under the constitution as it stands, Japan is not allowed to possess aircraft carriers and marine infantry to carry out military operations abroad. Mizokamu said this is the reason Izumo is called a helicopter destroyer rather than a carrier. But the second ship in the Izumo class will be commissioned in 2017 and the vessels givew Japan the ability to make war on other countries, the piece said.

While the vessels are officially designated for self-defense, the new challenge brought by China’s stealth fighters may force Tokyo to modify them into actual aircraft carriers, Mizokami wrote. “If China continues to test Japan’s airspace by flying fighters nearby, increases its holdings of modern, fifth generation fighters like the J-20 and J-31, then it will give the Japanese government all the justification it needs,” he wrote.

Mizokami said Japan does not have a great deal of money to spend on defense even though it is the third-largest economy in the world. “She is also deeply in debt, with a public debt approaching 230% of GDP. Any steps to match China’s growing military power must be carefully considered,” said Mizokami. If Izumo only has helicopters on its flight deck, the situation in East Asia will be relatively peaceful and optimistic, he said.

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BOOM! Hong Kong Stocks up 9% in 2 days.

HKEx Press release

Hong Kong Exchanges and Clearing Limited’s (HKEx) securities market turnover rose to an all-time high of $252.4 billion today (Wednesday), exceeding the previous record of $211 billion set on 3 October 2007, as trading through Shanghai-Hong Kong Stock Connect surged to its best level since launch. The market capitalisation of Hong Kong-listed shares also reached a record high, climbing to $28.6 trillion.

Today’s other single day records included:

– Highest Southbound Stock Connect turnover: $21 billion (RMB16.8 billion)
(previous high was RMB4.8 billion on 2 April 2015).

– Highest Northbound Stock Connect turnover: RMB13.2 billion (previous high was
RMB12.1 billion on 17 November 2014).

– Highest combined Northbound and Southbound Stock Connect turnover: RMB29.9
billion (previous high was RMB13.9 billion on 17 November 2014).

– RMB10.5 billion Daily Quota for Southbound trading was reached in the afternoon
trading session,the first time ever.

– A record 3,105,978 trades in the securities market were concluded today
(previous high was 1,935,113 on 31 March 2015).

“Stock Connect was one of the catalysts for today’s record high securities market turnover,” said HKEx Chairman C K Chow. “The programme has given us another source of market liquidity that was enhanced by the Mainland authorities’ recent clarification of policies regarding institutional investor participation in Stock Connect.”
“Investors should always be cautious, especially in times of very positive market sentiment, because it can come and go,” Mr Chow said.
“We’re excited about today’s records, including the Southbound record,” said HKEx Chief Executive Charles Li. “Our securities market provides a good investment outlet for Mainland funds and is an excellent way for Mainland investors to diversify their portfolios with offshore exposure.”

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Four more PLA weapons to worry the US Navy: report

The website of the US-based National Interest magazine published an article on April 4 laying out four more Chinese weapons that the US Navy should be concerned about, following a previous piece published in March detailing three weapons.

The three weapons listed in March were the DF-21D “carrier killer” anti-ship missile, combined missile strikes and sea mines.

The first weapon mentioned in the April piece, penned by freelance defense-aerospace reporter and consultant Dave Majumdar, was the J-20 fighter. The fighter, developed in Chengdu, is China’s first attempt at building a fifth generation stealth fighter and could challenge US control over Pacific airspace, the article said. Although many details about this new fighter are unclear, the little that has been revealed so far may concern the US Navy, the piece stated.

J-20 Stealth Fighter

The J-20 is a large twin-engine jet and is likely equipped with active electronically scanned array radar and a nose-mounted electro-optical targeting system (EOTS) similar to that of the US F-35, according to the article.

The article stated that the J-20 will likely use a Russian engine, as China does not yet have the technology to create a powerful enough engine itself.

YJ-12 Anti-ship Cruise Missile

In the article Majumdar said that despite the focus on the threat of the DF-21D missile mentioned in the March article, the supersonic YJ-12 anti-ship missile also poses a significant risk to the US Navy in the Pacific region. The missile has a range of 320 km, which would allow the PLA Navy to attack US carrier fleets from beyond the range of the US Standard Missile-2 Block IV terminal-phase interceptors developed by Raytheon.

Different versions of the YJ-12 have been developed for fighters, warships and subs, according to the article.

HQ-9 Anti-aircraft Missile

Although China sources many of its anti-aircraft missiles from Russia, some of its domestically developed weapons, such as the HQ-9 anti-aircraft missile, are also worthy of the US Navy’s attention, according to the article.

With a range of 200 km, the HQ-9 can hit targets at an altitude of 30,000 m, the article said. The missile has a speed of Mach 4.2 and is equipped with active radar homing for terminal guidance, the article stated. China’s 052D destroyer can carry the missile, according to the article.

The article also stated that interest in the missile from Turkey, despite the country’s NATO membership, points to the quality and value of the missile system compared to the US MIM-104 Patriot and other anti-aircraft weapons developed in the West.

Type 039A Diesel-electric Submarine

The article pointed to the Yuan-class Type 039A diesel-electric submarine as the fourth major Chinese weapon that poses a threat to the US Navy. The submarine is China’s first diesel-electric submarine to incorporate an air independent propulsion system, which gives it a longer range under water, according to the magazine.

The article stated that the submarine itself is not particularly threatening and said that China’s submarine fleet is relatively weak compared to Western counterparts, but that the threat lies in the progress the submarine represents.

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China is estimated to have 1,200 billionaires

China is now estimated to have 1,200 billionaires.

The video below, in summary, is 2 poor white guys discussing
how bad it sucks to be a Chinese billionaire.

Why Gold Ownership Continues to Grow in China

openmarkets.cmegroup.com

The attention of the global gold market shifted decidedly eastwards in 2013 when China passed India as the world’s biggest buyer of physical gold after bargain prices sparked a buying spree. Although sales were hit last year by Beijing’s anti-corruption campaign, it does not appear to have dulled the precious metal’s historic appeal to the Chinese as a store of value.Part of this enthusiasm is down to property and alternative investment products becoming less attractive, which has prompted Chinese households to increase holdings of gold in their portfolio allocation. The steep fall of currencies that have been popular with Chinese venturing overseas – from Australian and Canadian dollars to even the Euro – has further burnished gold’s appeal as a safe haven.Meanwhile, another reason China’s influence on gold is set to grow comes from its ongoing financial liberalization. Financial institutions are widening the limited domestic savings choices to include gold-linked investment products. Ongoing efforts to open the capital account mean that Chinese gold demand will increasingly feature in determining international pricing.CME Group is positioned for this market shift after launching its first physically delivered Gold Kilo futures contract in January 2015. To understand more about this new product and the appeal of gold to Chinese and Asian investors, we sat down with Harriet Hunnable, Executive Director, Precious Metals and Yvonne Zhang, Director, Metals Products, Asia, at CME Group. In 2014, China lost its number one spot to India as the biggest physical gold consumer. How would you assess the long-term outlook for Chinese gold demand?Yvonne Zhang (YZ): In the current climate of slower economic growth, Chinese demand is driven by disposable income rather than the investment-driven euphoria witnessed in 2013. While demand has stalled for the high-end ostentatious spenders, gold is still popular with Chinese households who practice a “buy and hold” mode of saving, particularly given the prevalent anxiety about the property market. We should take note that outside of China, the appetite for gold has grown strongly in 2014 with a surge in demand across Thailand, Korea and Singapore. Given this demand in the rest of Asia and especially India, how important is it to have a gold contract in this region?Harriet Hunnable (HH): – I think gold demand volumes are now so significant in China and Asia that it is important to capture these specific price signals. There is certainly a need to have a futures contract that better reflects China, is locally relevant and accessible, and provides a valid reference point.There have also been more moves by China to open its capital markets, such as with the establishment of the Shanghai Gold Exchange International Board last year. We want to be part of this by providing a regional contract that can be traded on our global platform. Any developments that provide more information and price indicators to the market are a good thing. Why did you decide now was the right time to launch your gold contract? HH: As well as the physical growth of demand in Asia, we also had to make sure it was feasible to set up the vault infrastructure in the region. This took a lot of preparation. This is our first deliverable gold contract outside the United States and COMEX requirements are strenuous and quite significant.We always knew a paper gold contract would not work here because it needed to have the attributes of a physical contract, with price convergence with the physical market. In 2012-13, we saw huge movements in the premium in this region, and last year much more physical inventory became available. What type of participants do you expect for this new contract?YZ: Our early adopter clientele are banks, proprietary trading houses and commercial traders. As the contract gains momentum, we expect participation from asset managers, funds and high net worth individuals. The steep correction in gold from its 2011 all-time high ended some investment interest in the yellow metal. But now with gold stabilizing between $1200-$1300, are there signs of interest returning? HH: Recent activity shows that there is still significant interest to trade gold as it is very useful if you are looking to trade around risk events. It can be a good proxy for hedging against say the Euro decline, or perhaps for those looking to trade the local currency complexion of the RMB. There was inevitably a shake-out of highly speculative investment after the gold correction, but we have seen some major players back in the gold market in the past one to two months.YZ: For the China market there was an overhang of supply after the voracious buying in 2013, which was a factor keeping purchases subdued. On the other hand, because gold funds and ETFs are less developed in China, there was not the same fallout from the gold price correction. But we can expect gold related financial products to be a source of growth in China. There has recently been a surge in Chinese banks, insurance companies and investment trusts offering innovative gold savings products, such as physical gold funds and even ETFs. Looking forward, with pivotal reforms such as gold trading in the new Shanghai Free Trade Zone with plans announced to launch a yuan-denominated gold fix this year, can we expect to see China setting global price benchmarks? YZ: A global benchmark is very much a democratic concept. It is defined by market wide acceptance and active usage. To achieve benchmark status, you need international players to gain unfettered access to onshore markets, and domestic players to freely trade with overseas counterparties and do so with reasonable efficiency.The moves by China to liberalize its capital account with the launch of three additional free trade zones modeled after Shanghai, and RMB internationalization plans, are clearly moves in the right direction. 2015 is an important year as many of these policy initiatives will be implemented, and the winds of change are certainly coming.

Greenspan_GoldenRule_0

Chinese Foreign Minister: China and Russia will link up

Want China Times
China and Russia are facing a historic opportunity to link the development strategies of the two countries for deeper bilateral cooperation, the visiting Chinese foreign minister, Wang Yi, said Tuesday after meeting with his Russian counterpart Sergei Lavrov in Moscow.

“Russia is not only a major European country but a great power in the Asia-Pacific region,” Wang said. “As Russia has decided to develop its Far East, China is stepping up its efforts for further opening its west while pursuing an all-round opening up to the outside world. This has brought a rare historic opportunity to link the two countries’ development strategies.”

According to the Chinese foreign minister, a major step to grasp the opportunity is to link China’s Silk Road Economic Belt initiative with Russia’s idea of creating a cross-Eurasia passage and speeding up its Far East development, along with more cooperation with the Eurasian Economic Union.

“This will not only give new weight to the China-Russia comprehensive strategic partnership, but also open up new sphere for pragmatic cooperation and inject fresh impetus into the overall development and rejuvenation of Eurasia,” he added.

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Jack Ma Demonstrates Face Recognition Payment Tech

Chinese investment in EU

IMG_4572

Chinese-backed fund steps up investments in central and east Europe

FT

With $1.5bn worth of Chinese money burning a hole in his pocket, Rafał Andrzejewski
is in a hurry. From Tallinn in the north to Tirana in the south, the investment
director of CEE Equity Partners is racing to find opportunities across central and
eastern Europe in which to spend his Chinese backer’s cash.

Successful in Africa but lagging behind rivals including the South Koreans in Europe,
Chinese investors are hungry for major assets and projects. Mr Andrzejewski finds
himself at the vanguard of a shopping spree in the continent’s emerging east.

“This is, if you would, a fund of goodwill to begin with. To show that the Chinese,
when they invest, they do good things,” he says. “We are at the forefront, perhaps,
of a larger investment stream in the region.”

Although Chinese investment in Europe has risen dramatically, it is still dwarfed by
major funders such as the US. It is also behind Asian rivals such as Japan and South
Korea, which have already built significant investment partnerships with eastern Europe.

South Korean carmakers Hyundai and Kia, for example, have pumped billions of euros
into Slovakia and Czech Republic and a South Korean investor has acquired a stake
in the Czech national airline and struck a joint ventures deal with Prague airport.

“There have already been investments from South Korea!.!.!.!They are a few steps
ahead of many Chinese companies,” said Wang Hongwei, deputy manager of
Export-Import Bank of China, which provided the $1.5bn to CEE Equity Partners.

The Chinese backers meet weekly with the Warsaw-based fund to review investment
opportunities. While Mr Andrzejewski says he has full control over how he spends
their money, he has been tasked with finding investments in infrastructure,
telecoms, energy and specialised production which it will hold for seven to
nine years.

It is a large area to scour: Mr Wang needs to find at least one project in each
of the 16 countries in the region, from the Baltics down through central Europe
and the states from the former Yugoslavia.

The fund, which since mid-September has made four investments, in Poland and
Hungary, is part of a wider effort by Chinese companies to generate better
returns in central and eastern Europe.

China has already invested more than $2bn in Serbia, and €1.5bn to upgrade
the railway between Belgrade and Budapest. New motorways in Montenegro
and Macedonia are being financed by more than €1bn from Beijing.

Writing in the Financial Times in December, Serbian prime minister
Aleksandar Vučić noted that the first character in the Chinese word for
Serbia translates as “place of strategic importance”.

A stronger investment relationship would benefit China and CEE countries.
Many countries on the EU’s eastern fringes are planning ahead for when
generous funding packages from Brussels for infrastructure development begin
to taper, while China is keen to diversify away from a dependence on
domestic growth. “The Chinese believe that this would be a good opportunity
for them to test the water,” says Mr Andrzejewski. Most of their investments
to date were in Africa, and now they are branching out into South America
and eastern Europe.”

Chinese Vehicles Sales up to 23.7 million units

China produced 23.72 million cars and sold 23.49 million cars in 2014, up 7.3%
and 6.9%, respectively, from a year earlier. Both figures set records and were
the highest for any country in the world for the sixth consecutive year.

The U.S. in contrast sold 16.5m vehicles in 2014 but produced only 11.5 million
of those. Many of those 11.5 million are vehicle kits from Japan and Korea.
If you want to know where your job went, its in now in a plant outside of Seoul.

Japanese won’t buy Korean vehicles and Korean’s won’t buy Japanese vehicles and
neither one will by American. China on the other hand has been open and they love
American cars. GM is selling close to 3 million cars annually in the country
and Ford is now going over 1 million.

US faces increasing challenge from PLA in Western Pacific: expert

Want China Times

A report published Saturday by the National Interest, a conservative American bi-monthly magazine on international affairs, suggests that backed by its economic might, advances in Chinese armaments are poised to elevate the People’s Liberation Army into a credible rival to US forces in the Western Pacific theater.

These weapons include stealth fighters, missiles and submarines, and are classified by the Pentagon as anti-access/area denial (A2/AD). They are designed to challenge the US presence in the Pacific, a domain seen by China’s leaders as their own turf.

The report said the Chengdu J-20 is China’s first attempt to build a fifth-generation stealth fighter that may be able to challenge the air power of the US in the Pacific. Although many details concerning the fighter remain murky, the J-20 is a large twin-engine jet believed to have stealth capability and capable of carrying bigger payloads. It boasts an active electronically scanned array radar and an electro-optical targeting system that provides similar combat capabilities to the US F-35 Joint Strike Fighter.

The report lists the YJ-12 supersonic anti-ship cruise missile as a “deadlier” threat to the US Navy in the Pacific. With a range of 320 kilometers, the missile can be launched from PLA aircraft, ships and submarines in large salvos at American carrier strike groups from outside the range of current Aegis ballistic missile defense systems and SM-2 interceptor missiles.

US aircraft also face potential threats from China’s HQ-9 active radar homing surface-to-air missiles, according to the report. With a range of 190 km and speeds of up to Mach 4.2, the missile can hit targets at altitudes as high as 27,400 meters. The capabilities of the HQ-9 have since garnered interest from Turkey, causing objections from the US and other European NATO members.

The article also notes that while the PLA has yet to establish a very threatening submarine force, it has made great progress in the form of its Yuan-class diesel-electric submarine. Diesel-electric submarines, while not on the leading edge of military hardware, are highly effective as their low acoustic signature makes them difficult to detect. The Yuan-class is also China’s first submarine to be fitted with an air-independent propulsion system, which gives it extended range underwater while running quieter

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