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
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
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
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,
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
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
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
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
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
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
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
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
Zhou Xiaochuan said China’s gross domestic product would pick up from the
6.9 per cent figure recorded in the first six months of the year thanks to
a boost from household spending, according to a synopsis of his comments
at the G30 International Banking Seminar posted to the People’s Bank of
China website on Monday.
Mr Zhou’s comments come ahead of official third quarter GDP figures set to
be released on Thursday.
China Money Report
The World Bank, run from Washington D.C.,is not immune from becoming completely
out of touch. Staffed by academics who have spent entire careers inside Ivory
Towers they are currently pushing the U.S. administration for more funds to
expand World Bank Lending. The global media are castigating the Trump
administration for demanding changes at theWorld Bank.
Jim Yong Kim, the World Bank’s president, has been pushing for extra financial
resources and had hoped that shareholders would agree on at least a timetable
for the increase at this week’s annual meetings in Washington.
The problem…the World Bank’s largest borrower is China. Yes, China, the same
country that has 3 trillion in currency reserves. China is the biggest recipient
of development loans borrowing $2.4b annually.These are fund thats could be going
to small developing countries in Africa to alleviate poverty or how about areas
in the U.S. that now more closely resemble 2nd and 3rd word countries than they
do the lush, wealthy confines of the Washington D.C.area.
China has become the world’s largest creditor.The China Development Bank and
the Export-Import Bank of China (CHEXIM) together lent some US$684 billion
between 2007 and the end of 2014. The next six biggest lenders, which include
the World Bank, the Japan-led Asian Development Bank and the Inter-American
Development Bank,have provided finance worth US$700 billion. These are
2014 numbers, China is lending more than the World Bank and Asian Development
Bank combined and that is before we even start to take the Belt-n-Road projects
China also has the world’s largest bank system. Chinese bank assets hit $33tn
at the end of 2016, versus $31tn for the eurozone, $16tn for the US and $7tn
The World Bank has clearly become yet anther D.C. institution surviving solely
to keep themselves employed.
National Day holiday has come and gone and, now that the crowds and traffic have
dispersed, the China National Tourism Administration has released statistics
indicating this year’s October ‘Golden Week’ was a record-breaker, with
705 million trips made domestically.
This year’s trip numbers are up 12 percent from last year, according to GRT Radio,
and stand in stark contrast to the 428 million trips made during the National Day
holiday five years ago.
Normally a seven-day holiday, this year’s National Day holiday was extended to eight
days, as it overlapped with the Mid-Autumn Festival. The extra day has been credited
with allowing more people to vacation than in past years.
Other factors responsible for the tourism boom include the ‘free-of-charge policy’
that China implements on its vast highway system during public holidays (read: no tolls)
and the nation’s ever-expanding rail network, according to People.cn.
According to estimates by China Railway Corp, 40 percent of this year’s holiday trips
were made by train. Yesterday, October 8, an additional 920 trains were put into service
by railway authorities to cope with a projected 14 million passengers.
As one would expect, the record number of travelers last week meant big bucks for the
tourism sector, with vacationers estimated to have spent RMB583 billion.
The southern Chinese province of Guangdong received a total of 48 million visitors over
the holiday, an increase of 11 percent, according to GRT Radio. The province also added
RMB38 billion in tourism revenue to its coffers.
In Shanghai, 10.6 million visitors descended on the city, according to Shine, with those
who spent the night spending an average of RMB1,023 per day during their stay – up 2.4 percent.
It’s fake news but the picture is real. Its not uncommon to see groups of Chinese women
in the South Korean airport having just come out of plastic surgery.
This Week in Asia
Japan has announced that it is planning to invest billions of yen to fund next-
generation semiconductors and other technologies critical to AI development.
Unfortunately, analysts believe, parts of Japan’s AI sector are far behind
China, and there is little that can be done that will enable Japan to regain
The cost of developing new chips has become cost-prohibitive for many Japanese
firms, one of the root causes of Japan’s lacklustre performance. To address this,
the Ministry of Economy, Trade and Industry (Meti) said it will fund start-up
companies and researchers, enabling them to devise new technologies and
simultaneously develop world-class AI experts. It plans to request up to
10 billion yen (HK$690 billion) from the government’s fiscal year 2018 budget
for its initiative.
Mitsuru Ishizuka, a professor emeritus at the University of Tokyo who specializes
in AI, confesses: “Frankly speaking, the situation in Japan at the moment is very
hard and we are slipping behind the research in this area that is being done in
“The government has set up two AI research centres, one under the Ministry of
Education and one under Meti, and there are many industries and companies that
are interested in AI, but there are a lot of obstacles,” Ishizuka told This Week
“For one thing, there aren’t so many AI researchers in Japan, certainly not in
comparison with those in this sector in China, which obviously has a far larger
population and a government that is investing very heavily in the sector,”
“The government’s efforts to promote research and development in the AI space are
a good step, but we are still behind the US and China seems to always be climbing
higher”, said Ishizuka.
China’s central bank chief makes reform appeal: please free up the yuan
In what may be one of his last major interviews in the job, Zhou Xiaochuan says
three liberalisations have been key to the country’s rise on the economic stage
China must press on with a “trinity” of reforms to fully realise an open economy,
Zhou Xiaochuan, the country’s central bank chief for the last decade-and-a-half,
told influential financial magazine Caijing in what could be one of his last major
interviews in the top job.Zhou, governor of the People’s Bank of China, said China
must embrace free trade and investment, let the market decide the yuan’s value,
and scrap capital account controls.
He said the three elements were interlinked and could not be separated.
It’s very clear that they are conditional on each other and none of the three
can be spared,” he was quoted as saying in an interview published on Monday night.
At 69, Zhou has designed and promoted a series of economic liberalisations over the
last 15 years, including freeing up interest rates at home and earning the yuan a
nominal international reserve currency status abroad.
But he has also reached the unofficial retirement age for Chinese officials and
could step down when the Communist Party convenes a five-yearly gathering in Beijing
Reflecting on China’s opening up since the early 1980s, Zhou said China’s position
in the global economy was the result of a combination of the three liberalisations.
“No country can create an open economy with heavy foreign exchange controls …
an exchange rate set under capital account controls won’t be a true market
equilibrium rate,” he said.
Zhou’s advocacy of economic liberalisation comes amid concerns at home about the
risks of a freer exchange rate and flow of capital in the aftermath of a stock
market rout and rapid capital outflows two years ago. As a result of those
concerns, the central government has imposed draconian capital account controls to
stem outflows and intervened in the yuan exchange rate through a “countercyclical”
factor.Zhou said China should not wait for “conditions” to be ripe to free up
the exchange rate system,nor should China drag its feet for fear of mistiming other
“If a few ministries have different views over the time frame or conditions, then
the likely outcome is to wait, to rely on others, and to request others to move
first, which in turn leads to irresponsibility and deadlock,” he said.
Unlike the US Federal Reserve and other central banks that are independent of the
administration in government, the Chinese central bank under Zhou is part of the
State Council, the cabinet. And that means Zhou has to persuade other ministers
and state councillors to come to a consensus on key reforms.
Ukhnaagiin Khurelsukh has been elected PM of Mongolia. He was selected by
the ruling Mongolia People’s Party (MPP), which took power in a landslide
election victory a little over a year ago.
In a speech following his victory, Khurelsukh pledged to “improve people’s
lives, declare discipline and rules, fight corruption and punish those who
“My cabinet… will declare justice again,” he said, adding, “don’t come to
me with illegal acts as well as my cabinet members and don’t pressure us to
act illegally.”Ex-premier Jargaltulgiin Erdenebat was ousted in early September
by legislators who accused him of granting 800 billion tugrik (US$328 million)
in concessions to eight companies related to his cabinet ministers.
Khurelsukh, 49, started his career in the army but joined parliament as a member
of the MPP in 2000. As well as his collection of photos inspired by Russian
president Vladimir Putin, last month he earned the nickname “Fist” after a
2012 video of him punching a fellow parliamentarian went viral.
Hong Kong is well-known now for having the world’s highest property prices.
What is less well known are the massive surpluses the government has built up.
As the most of the world begins to drown in debt,Hong Kong’s surpluses are near
spinning out of control to the point of embarrassment.
Hong Kong is now promising to reduce its tax rate from the current 16.5 per cent
to below 10 per cent for all businesses.Unlike the U.S.,however, Hong Kong does not
even need to consider cutting on the expenditure side. The city-states fiscal
surplus is now so large the government doesn’t know what to do with all the money.
Hong Kong now as a surplus running at HK$185 billion a year as of the latest figures.
That is the equivalent of 7.1 per cent of gross domestic product. It comes to
HK$72,800 ($9,454) for every household in Hong Kong.
These surpluses are annual surpluses,the total government surplus is now so large
the government now tries to keep the number hidden. Officially, the figures given
by the Hong Kong Monetary Authority report show direct government deposits of
HK$ 1 trillion. These numbers do not include the savings of statutory bodies in the
government which when included takes the Hong Kong governments savings up to
HK1.98 trillion which is equivalent to 77% of GDP.
In Hong Kong,the city-state has a comprehensive social security system, with roughly
50% of apartments in the city being public and given at low or no rent to citizens.
The city-state has full medical care at only small charge to the user and one of the
world’s best and cheapest public transport systems. These are just the start of the
benefits to Hong Kong citizens.
The government in fact no longer even needs to collect personal income taxes.
What can the Hong Kong teach the rest of the world? Good governance, including low
taxes, free markets, a pegged currency to the Dollar,and good fiscal management.
Hong Kong’s riches now boggle the mind.
China will continue to lead the world in disruptive business-to-consumer technologies
as it mines the commercial benefits of its vast e-commerce and social media platforms,
according to UBS.
The country’s investments in research and development in those fields and other
disruptive technologies are on track to surpass spending by the United States
next year, analysts at the Swiss global financial services firm said.
“In a lot of these consumer-based technologies, China is far better than the West,
” said UBS equity analyst Sundeep Gantori at a briefing on the sidelines of the
company’s Disruptive Technology CEO Summit on Tuesday.
“Look at the way Chinese companies have monetised social networking apps, which is
something that global companies are still struggling with.”
Tencent Holdings, the world’s largest video game company by revenue, provides the
best example of such commercial success with its social media and messaging platforms,
WeChat and QQ, which had a combined 963 million monthly active users in the quarter
ended June 30.
Since its launch in 2011, WeChat has evolved into a must-have mobile app on the
mainland, used for an array of activities, from shopping and getting food delivered
to booking a doctor’s appointment and paying bills.
Gantori pointed out that China’s e-commerce market leads that of the United States
in the fast-growing online grocery segment.He estimated that China’s online grocery
sales have penetrated about 5 per cent of the domestic market, compared with around
1 per cent in the US.
Odds of Chinese invasion grow as China warns ‘will not accept North Korea as nuclear weapons state.’
China ‘will not accept North Korea as nuclear weapons state’, ambassador warnsChina has warned that it will never accept North Korea as a nuclear weapons state, Beijing’s ambassador to the US warned, just hours after Kim Jong-un said his country was on course to achieve that “final goal”.
Speaking at a Chinese embassy event in Washington DC, Cui Tiankai also called on Donald Trump’s administration to stop sabre-rattling against the secretive communist state.
Instead the US should “resume dialogue and negotiation” over the stand-off, he said.
“Honestly, I think the United States should be doing much more than now, so that there’s real effective international cooperation on this issue,” he told reporters.
“They should refrain from issuing more threats. They should do more to find effective ways to resume dialogue and negotiation,” he said, while adding that China would never accept North Korea as a nuclear weapons state.
His comments came within days of North Korea firing another ballistic missile over Japan that landed in the Pacific Ocean.
It came despite threats by US President Donald Trump that the communist state would feel the “fire and fury” of his armed forces unless it halted its nuclear weapons programme.
Pyongyang shrugged off the rhetoric and launched another deadly Hwasong-12 in its goal to become a nuclear power and reach an “equilibrium” of military force with the US.
Mr Trump described the move as an act of “utter contempt for its neighbours and the entire world” and warned any US response would be “effective and overwhelming”.
North Korea on Friday launched its latest ballistic missile – which travelled past Japan’s northernmost island of Hokkaido before landing in the sea.
Its leader Kim Jong-un, who was quoted by the state news agency KCNA, later said: “Our final goal is to establish the equilibrium of real force with the US and make the US rulers dare not talk about military option.”
In response, President Trump warned that American military options were robust should they be required to respond to threats from Pyongyang.
Speaking at Joint Base Andrews, the Air Force installation outside Washington, Mr Trump said: “America and our allies will never be intimidated. We will defend our people, our nations, and our civilization, from all who dare to threaten our way of life.
“This includes the regime of North Korea, which has once again shown its utter contempt for its neighbours, and the entire world community.”
Centre could boost military’s code-breaking ability and navigation of stealth
submarines China is building the world’s largest quantum research facility to
develop a quantum computer and other “revolutionary” forms of technology that
can be used by the military for code-breaking or on stealth submarines,
according to scientists and authorities involved in the project.
The National Laboratory for Quantum Information Science will be located on a
37-hectare site next to a small lake in Hefei, Anhui province. Some time this
month developers will be invited to bid for a contract to construct the site,
according to an article in Hefei Evening News, a daily newspaper run by the city
government on Thursday.
Pan Jianwei, China’s lead quantum scientist who was playing a key role in the
project, told local officials at a briefing in May that technology developed in
the facility would be of immediate use to the armed forces, according to Anhui
Business Daily newspaper.
Quantum metrology, which measures small variations in physical parameters such
as gravity with unprecedented accuracy, could significantly improve submarines’
stealth operations. A submarine with a quantum navigation system could operate
underwater for more than three months without the need to surface for positioning
After operating for 100 days underwater the captain would still be able to pinpoint
the vessel’s position in the Pacific Ocean with a margin of error of just a few
hundred metres according to Pan, who could not be immediately reached for comment.
Another key mission of the laboratory is to build the nation’s first quantum computer
that could break an encrypted message in seconds.
“Our plan is that by 2020, or maybe as soon as next year, to achieve ‘quantum
supremacy’ with calculation power one million times to all existing computers around
the world combined,” Pan was quoted as saying by Anhui Business Daily, which is run
by the provincial government.
It was unclear whether the computer could be used for code-breaking. Construction work
is expected to finish in 2 ½ years with a budget of 76 billion yuan (HK$91.6 billion).
Ground-clearing work started with approval from the central government in February,
according to the website of the Chinese Academy of Sciences, the owner of the new
facility.Guo Guoping, a quantum information researcher at the Chinese Academy of
Sciences in Hefei, said
a large facility with centralised resources could accelerate this process by pulling
together the talents of scientists from all over the nation with knowledge and
experience of multiple scientific disciplines to overcome a wide range of technical
and engineering hurdles, he said.
Guo stressed that in the national laboratory, researchers’ performance should not be
evaluated by the scientific papers they published but by their contribution to specific
project targets,such as building a general-purpose quantum computer.
“This may sound a bit old-fashioned, even Soviet-style, but it can give China a chance
to win the race,” he added.China moved a step ahead with the launch of a quantum
satellite last year and conducted a series of cutting edge experiments such as quantum
entanglement and teleportation in space. Last month the world’s longest and most
sophisticated quantum key distribution network for ultra-secure communication between
Beijing and Shanghai was successfully tested and deemed ready for official deployment
in the military, government and financial sectors.
Guo said the field had advanced rapidly, but the delivery of a code-breaking machine
by 2020 was “highly unlikely”. Over the next few years, researchers from around the
globe may be able to develop primitive quantum computers to deal with some specific
tasks. They could, for example, simulate the movement of particles at a subatomic
level to solve some physical problems that might help develop new materials or drugs.
But these are not general-purpose computers capable of code-breaking, Guo added.