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Archive for the ‘China’ Category

Xi the real global polluter

In China on 02/12/2018 at 10:47 am

In When Trump is right about lying media, I mentioned that Trump loves “beautiful, clean” coal. Well here’s why Xi’s the real coal lover

For years, the increase in the number of Chinese coal-fired power stations has been criticised.

Now environmental groups say China is also backing dozens of coal projects far beyond its borders.

https://www.bbc.com/news/science-environment-46310807

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Real reason why Tun doesn’t want Chinese money?

In China, Malaysia on 01/12/2018 at 5:47 am

Further to What Tun doesn’t say about Chinese money if he can use his own contractors he’ll embrace Chinese money, no matter what the cost? As fatcat abc points out, to get Chinese money condition must be to “use Chinese contractors & companies for the infrastructure jobs”.

What Tun doesn’t say about Chinese money

In China, Malaysia on 30/11/2018 at 6:33 pm

Xi should ask this guy to call Tun and explain things to him. LOL

Tanzania’s President John Magufuli has said he prefers Chinese to Western aid as it comes with fewer conditions.

Mr Maugufuli has been under intense pressure from Western nations over his controversial policies.

On 15 November, Denmark said it had suspended $9.8m (£7.5m) in aid because of “unacceptable homophobic comments” by a Tanzanian politician.

China has become a major investor in Africa, challenging Western influence on the continent.

It has promised to spend $60bn in investment, aid and loans in Africa over the next three years, mostly in infrastructure development.

“The thing that makes you happy about their aid is that it is not tied to any conditions. When they decide to give you, they just give you,” Mr Magufuli said.

https://www.bbc.com/news/world-europe-46364342

What’s gd for GM is gd for China

In China on 27/11/2018 at 11:03 am

In an interview with The Wall Street Journal, Mr Trump said GM should stop making cars in China.

So no longer true that “What’s good for the country is good for General Motors, and vice versa.”? This statement was made by Charles E. Wilson while president of the General Motors Corporation, a leading United States automobile manufacturer in 1953. Wilson later became secretary of the federal Department of Defense.

The statement has frequently been misquoted as “What’s good for General Motors is good for the country.”

 

M’sia will benefit from Sino US trade war

In China, Malaysia on 18/11/2018 at 10:38 am

M’sia is smiling:

“We’ve got so many inquiries that our greatest problem is how to ramp up capacity,” including in electronics, steel production and automation from both China and the U.S., Malaysian Finance Minister Lim Guan Eng told reporters Sept. 13 in Hong Kong. “Once they come in it is very hard to pull out.”

https://www.bloomberg.com/news/articles/2018-09-18/u-s-china-trade-tussle-is-creating-winners-in-southeast-asia

Because

Vietnam and Malaysia stand to attract the lion’s share of ICT capacity that leaves China for two main reasons, the EIU said. The first is that an ICT supply chain already exists in these countries, with Samsung and Intel having a significant presence in Vietnam and Dell, Sony and Panasonic having plants in Malaysia. The other factor in their favour is that both Malaysia and Vietnam are signatories of free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which also includes Mexico, Canada and several Asian countries (but not China).

FT

And because

For the car parts industry, the main country beneficiaries of an expected shift in capacity outside China are Thailand and Malaysia.

FT

No wonder George Yeo (Remember him?) is looking at his bank statement and smiling

Malaysian billionaire Robert Kuok’s Kerry Logistics Network Ltd. is seeing “numbers are looking up a bit more” as companies divert distribution centers from mainland China and into places like Hong Kong and Taiwan, and parts of Southeast Asia, according to the company’s chairman, George Yeo.

“They’re thinking of the next factory, and they’re less likely to put it in China,” Yeo, a former trade and foreign minister in Singapore, told Bloomberg Television Sept. 14. He acknowledged that some firms already were planning to move business to lower-cost manufacturing sites outside of China.

Bloomberg

Finally

Malaysia could see the benefits both as a  trans-shipment point and because it’s a neutral country in which Chinese and American companies both would have an interest in investing.

Bloomberg

Ang moh special forces to protect Xi

In China on 15/11/2018 at 11:16 am

Where are the Red Guards? Skivving isit? Or not trusted?

Port Moresby is hosting the Asia Pacific Economic Co-operation (Apec) summit this week,

Australia, the US and New Zealand have sent special forces to make sure that attendees (including one Grandpa Xi) will be safe given the place’s reputation for violence.

Grey Rhinos, Chinese Puzzles Galore

In China on 10/11/2018 at 9:36 am

Further to China afraid of Black Swans and Grey Rhinos here’s where the Chinese first used the term “grey rhinos”

From NYT Dealbook over a yr ago (Btw, all the three cos mentioned below are in Grandpa Xi’s doghouse)

“Risks in the financial sector are sophisticated. Therefore, precautionary measures should be taken to prevent not only ‘black swan’ but also ‘gray rhino’ events.”
— Unsigned commentary in People’s Daily, the main newspaper of the Chinese Communist Party.

 

While the West may worry about unexpected events, sometimes called black swans, the focus in China is on problems that are large and very visible: gray rhinos.
You’ll recognize some gray rhinos because, until recently, they’ve been on buying sprees: Anbang, Fosun, HNA and Dalian Wanda.

Worth remembering: The recent crackdown on China’s once-celebrated international deal-makers comes straight from the top, from President Xi Jinping.

The Ups and Downs of Chinese Deal Making

 Enthusiasm for big deals with Chinese conglomerates is starting to cool.
Bank of America has decided not to do business with HNA, the huge conglomerate that The New York Times found had been giving business to relatives and associates with little disclosure to investors.
The problem? Bank of America is concerned about HNA’s shareholding and corporate structure, its complex business model, allegations concerning political connections, and Chinese regulatory interest in the company.
“We simply don’t know what we don’t know, and are not prepared to take the risk,” Matthew M. Koder, Bank of America’s president for Asia Pacific, wrote in an email.
Bank of America had been talking to HNA about new lending partnerships, according to a person with direct knowledge. It has also been among the banks helping HNA to take at least one of its many companies public.
 The beleaguered Dalian Wanda tore up a $9.3 billion agreement to sell a portfolio of hotels and theme parks and found a new buyer for the hotel properties.
After reaching a deal last week to sell the whole lot to the property firm Sunac China Holdings, Wanda announced that it would sell Sunac only the theme parks. The hotels will instead go to the Guangzhou-based R&F Properties — but for $3 billion, where the deal last week valued them at $5 billion.
The hasty reorganizations have raised concern about the due diligence being conducted. It also highlights the pressure that the Chinese government is putting on the country’s deal makers to reduce their piles of loans.
 The retail giant Suning has come under attack on Chinese state television over “irrational” foreign acquisitions, The Financial Times and Reuters reported.
In a program focused on risky overseas deals, China Central Television referred to Suning’s purchase of a 70 percent stake in the Italian soccer club Inter Milan as an example of a move that potentially raised concerns.
“This famous club has been loss-making for five years, with total losses of 275.9 million euros,” said the narrator. “What is the purpose of acquisitions like this?”

PAP’s thinking is Xi’s thinking

In China, Political governance on 09/11/2018 at 10:05 am

Further to What next? Senior civil servant saying that those who don’t vote PAP don’t wish S’pore well? where I quoted our London ambassador sneering at the ang moh way of alternating opposing parties in power

The alternative—a constant merry-go-round of contending parties—does not necessarily produce better outcomes. Politicians fail to keep the promises they make, the people become disillusioned, and eventually lose faith in democracy. Witness the low voter-turnouts in many Western democracies.

Doesn’t this sound like u/m?

Chinese leaders are too cynical about elections in the democratic West, and about the lessons that even messy campaigns can offer. They are not cynical enough about their own authoritarian system, refusing to see how it induces a sort of democracy-blindness. Even well-informed officials and scholars misread political dynamics around the world.

https://www.economist.com/china/2018/10/20/china-is-misreading-western-populism

Related posts:  Keeping power in a one-party state and Would this happen in a one-party state?

 

 

China afraid of Black Swans and Grey Rhinos

In China on 09/11/2018 at 4:14 am

Black swans, and grey rhinos, are likely to occur this year with adverse consequences, Fan Hengshan, vice secretary general of the National Development and Reform Commission (NDRC), wrote in a commentary in the state-controlled newspaper, Reuters reported recently.

Black swans are unforeseen occurrences. Grey rhinos are highly obvious yet ignored threats. China’s debt problem is a huge grey rhino.

PAP needs strong Chinese economic growth

In China, Economy, Indonesia, Malaysia on 07/11/2018 at 10:54 am

Looking at chart, it’s no wonder our finance minister is really worried if Trump paks China really hard. S’pore’s very dependent on Chinese growth because China is an integral part of Asian supply chains.

South Korea, Taiwan, S’pore, M’sia, Indonesia, Thailand and the Philippines have all benefited from the rise of China as a manufacturing power, especially since the global financial crisis.

Singapore assessing 2019 forecasts amidst escalating trade spat: Finance minister

Singapore has already witnessed a slash in business investments amidst the looming trade wars.

Finance minister Heng Swee Keat thinks that Singapore may have to look out on its economic growth projects for 2019 amidst the escalating US-China trade tensions that have pumped up uncertainty for business investments.

“In the short run, the impact is not fully felt yet,” with Singapore retaining its growth forecast for this year at 2.5% to 3.5%, Heng said in an interview with Bloomberg Television. “But any trade tension that sets back globalization will affect everyone, including the countries that are directly involved, but also collateral damage right across all economies.”

Heng acknowledged that the Lion City had already witnessed the effects of the trade war through increased uncertainty and reduced investment by businesses, noting that next year’s situation will depend on how the situation will unfold in the next few months.

The ‘global production frontier’ being diminished could allow a prolonged trade war to severely disrupt the global supply chain thereby hitting countries with long-term growth challenges, the minister said.

“Our priority areas remain for economic restructuring,” Heng explained. “The other big area is looking at infrastructure development” with urbanization being a major trend in Asia.

Here’s more from Bloomberg.

 

S’pore, Asean in trouble if Renminbi collapses below 7 to US$

In China, Currencies, Economy, Emerging markets on 27/10/2018 at 1:29 pm

Further to Trump’s US$ trumps Xi’s Renminbi

if the renminbi breaks thru  7 to the US$, this has

broader repercussions for other emerging market countries, already under pressure. This includes the likes of Indonesia, India and the Philippines. India’s rupee has slumped some 15 per cent to a record low versus the dollar this year. Other China-linked exporters such as Singapore, South Korea, Thailand and Malaysia would also see their currencies come under pressure. Then there’s the Australian dollar, seen as a more liquid proxy to play China and its economic outlook along with copper and other industrial metals — today the Aussie dropped to a new two-year low just above $0.70.

FT’s Market Forces

Trump’s US$ trumps Xi’s Renminbi

In China, Currencies on 27/10/2018 at 9:57 am

Yesterday, the renminbi touched Rmb6.9462 to the dollar, its weakest level since 2008 on Friday.

The cont’d rise and then collapse of renminbi during Xi’ reign (starting in Nov 2012). When Trump became president the renminbi rose, then collapsed.

S’pore invited to WTO reform meeting: US and China not

In China on 07/10/2018 at 6:10 am

No, not fake news, but Canadian politics and diplomacy at work.

Canada has not invited the US or China to a high-level meeting on reforming the World Trade Organisation (WTO).

The country will host a “small group of like-minded” trade ministers in Ottawa in late October to discuss the global trade body.

Officials say countries like the US and China will be included at a later date in the reforms discussion process.

The European Union, Australia, Japan, Singapore, and South Korea are expected to attend.

Brazil, Chile, Kenya, Mexico, New Zealand, Norway, and Switzerland are also invited to the 24 and 25 October meeting.

https://www.bbc.com/news/world-us-canada-45674264

The hero of the progressives and femnists around the world, PM Trudeau, must still be feeling upset, hurt and confused over having to lick Trump’s ass. Canada had to make concessions to the US in trade talks.

Jack Ma warns Sino US “war” could last 20 years

In China on 19/09/2018 at 7:08 am

Trump’s serious about a trade war and Alibaba’s Jack Ma warns trade war could last 20 years.

“It’s going to be a mess.  It’s not a trade war, it’s about competition between two countries.”
,

Africans vote, Chinese mint money

In Africa, China on 11/09/2018 at 4:36 am

A rainbow of flags, posters, T-shirts and scarves emblazoned with the names and faces of dozens of African politicians on display in the windows of more than a dozen shops make for a startling sight in the middle of the southern Chinese city of Guangzhou, writes Tom Hancock.

From presidential contenders from the Republic of Congo and Ghana to Nigerian senators and Kenyan members of parliament, Guangzhou’s Tongxin Road has found a niche in the global economy: exporting campaign products to candidates on the continent seeking an edge over their rivals.

The vibrant picture of democracy on display is evidence of Africa’s reliance on Chinese manufacturing: something that African leaders want to change. The sheer volume of the voting — this year will see at least 30 regional or national polls in 24 African countries, according to the Electoral Institute for Sustainable Democracy in Africa — and their demand for products makes for a booming business for Chinese factories selling paraphernalia for African elections.

“Usually for an election we will have tens of thousands of items,” said Amy Zhang of Xu Yang Advertising and Printing, which supplied candidates in Kenya and the Republic of Congo. “Customers don’t choose high-end products. For a normal election we will sell T-shirts for less than Rmb12 [$1.90] each” she added, picking up a 2016 election scarf bearing the name of Gabonese President Ali Bongo Ondimba.

FT

Let’s thank Trump and Xi for rowing

In China, Tourism on 01/09/2018 at 5:29 am

Big league conference moved here from Beijing

Fallout from the trade war between the United States and China has prompted billionaire media executive Michael Bloomberg, the former mayor of New York City, to relocate a conference of global business and political leaders from Beijing to Singapore.

The event, touted as a rival to Davos, the elite annual conclave in Switzerland, is to take place in Singapore over two days in the first week of November.

Mr Bloomberg made the decision after a Chinese partner last week asked the organisers in New York to postpone the event, according to people with knowledge of the planning.

PAP govt must be doing shumething right, right?

SME caught in Sino Trump tarrif war

In China on 27/08/2018 at 10:25 am

Joyce and her dad have only recently found that the speakers they make in their Chinese factory could see a 25% tariff placed on them when they are sold in the US. Speakers are on the most recent list issued by Washington that targets $200bn worth of Chinese goods.

The tariffs have yet to come into effect – in fact, they are currently only under consideration – but both Joyce and her dad are extremely worried about the impact on their company. More than half of their business in China consists of producing speakers for the US market.

https://www.bbc.com/news/business-45247000

Fortunately they have a plant in Vietnam:

they are already thinking of moving their production to Vietnam to mitigate the Chinese tariff threat.

Still they’ll suffer as these things take time.

Let’s wish them all the best.

Still game to buy into Chinese mgt?

In Casinos, China, Corporate governance on 26/08/2018 at 4:31 am

Landing International Development, a Chinese casino operator on Jeju island, South Korea
slid 19% last Friday after company told HKSE that it was unable to contact its chairman. Insiders must have been selling on Thursday because the price fell by a bigger %age that day: before the announcement.

 

Two-face Tun/ Why vote PAP

In China, Malaysia on 21/08/2018 at 7:09 am

While KPKBing about China raping M’sia, he said in a joint statement with Xi that M’sia would continue to be part of the Belt and Road Initiative — despite its reservations about the programme.

And so like Trump who he criticises: “I agree free trade is the way to go, but, of course, free trade should also be fair trade.”

PAP govt is right to insist that M’sia lives up to its legal obligations what with two face Tun as PM in KL.

The quisling who wanted us to sell our backsides to Tun has gone back to talking about food on social media. As for those Oppo figures who cheer on Tun, with enemies like them the PAP doesn’t need friends.

Our fragile neighbours

In China, Emerging markets, India, Indonesia, Malaysia on 18/08/2018 at 11:31 am

Think the woes in Turkey are irrelevant to us? Far away Muslim country.

Well look at this table https://fingfx.thomsonreuters.com/gfx/breakingviews/1/951/1238/index.html

If Turkey goes, M’sia (6th with Turkey as Number 1) and Indonesia (8th) are likely to get into trouble.

As could Thailand (15th), India (10th), China (12th) and S Korea (14th)

Xi swallows Trump’s sperm

In China, Commodities on 17/08/2018 at 4:59 am

OK, OK it’s Ownself pay Ownself’s Fees.

China imposed a 25% tariff on US soya beans as part of the trade war, and a ship carrying soya beans from the US failed to dock in time to beat the tariff imposition.

One for the Xi?

Well a few weeks later, with the ship still hanging round the Chinese coast, the Chinese customer, state-owned conglomerate Sinograin is paying the US$6m tariff bill so it can get the beans.

More ships are on the way from the US.

FT

One for the Trump.

Trump wins bigly

In China on 07/08/2018 at 4:49 am

Last night, S&P 500 gained 0.4%, eyes record high

Earlier in the day Trump ramped up trade rhetoric, and Chinese stocks slid (the CSI 300 index of big stocks in Shanghai and Shenzhen fell 1.3%). Yuan kept falling.

Meanwhile reports keep coming out from Beijing that Xi is being criticised for going against a former principle of Chinese statecraft

Maintain a low profile. Never take the lead – but aim to do something big.

Deng Xiaoping

US winning big against China

In China on 06/08/2018 at 4:32 am

In a series of tweets on Saturday, Trump said the US market was “stronger than ever”, while the Chinese market “has dropped 27 per cent in last 4 months, and they are talking to us”.

He’s wrong about the “4 months” though: Chinese stocks have lost $2.29tn in value since their high in January, falling 27%.

US elite education and AI

In China on 04/08/2018 at 4:19 am

Big advances in AI research are more likely to come from the US due to our education system which needs improvement. But in use of AI in everyday life, China will lead

Cheetah Mobile’s Fu Sheng

HoHoHo: StanChart disappoints, again

In Banks, China, Emerging markets, Hong Kong, Temasek on 02/08/2018 at 3:56 am

On Tuesday (London time), StanChart reported half-year operating income of US$7.6bn, 6% more than in the same period last year. The stock dropped 3.5% trading because operating income was below expectations. Blame higher IT spending: costs in general have outgrown revenues by a whole percentage point. Not good.

FT’s Lex

StanChart investors must be counting on costs soon falling, relative to revenues. The hope should be for a leaner and cleaner bank ready to grow at the bottom of the next cycle.

adding

Shares in HSBC, another London-listed bank with an Asian focus, have climbed 63 per cent in the past two years, compared to 13 per cent at StanChart.

 

 

S’poreans and mainlanders are the real Chinese

In China, Hong Kong, Property on 29/07/2018 at 5:12 am

Honkies and Taiwanese are not,

We and mainlanders don’t believe in renting short term (99 yr leases are not short term rental leases no matter what Goh Meng Seng and other cybernuts think)

Made in China

In China on 27/07/2018 at 5:20 am

the ARJ-21, a disaster of an aircraft that the country’s own regulators forbid from flying in the rain for safety reasons.

Economist

Lucky we only bot PRC railway carriages, not trains. For once Hard Truth that ang moh tua kee is betterest turned out well, even if ang moh is French, not German.

Prosperity with S’porean, Chinese characteristics

In China, Media on 26/07/2018 at 10:56 am

Unique to both China and S’pore

Further to Bang yr balls ang moh tua kees

The case for a free press rests not only on classical liberal principles but also on hard data. Cross-country studies show strong and consistent associations between unfettered media, vibrant democracies and limited corruption. China, which has a tightly controlled media and perhaps the world’s most sophisticated censorship scheme, thinks it has proven that prosperity can be achieved without a free press. In less extreme fashion, Singapore shares similar authoritarian attitudes. Politicians everywhere do not much like to be criticised. To a worrying number of them, this Singapore model—or Beijing model, depending on preference—can prove more attractive than the Western approach of putting up with a pesky press.

https://www.economist.com/graphic-detail/2018/07/23/the-global-slump-in-press-freedom

Related posts

PAP’s bible challenges “market-based solution”

The PAP way is the American corporate way

Keeping power in a one-party state

Chinese tariffs on US soya backfiring

In China, Commodities on 21/07/2018 at 4:28 am

US soyabean prices plus the tariffs and freight to China were approaching parity with Brazilian soyabeans and shipping costs, limiting a further move upwards on the premium unless there was a dramatic shift in Chinese demand.

FT on Thourday

Chinese will be paying a lot more for soya and meat.

M’sia right to fear Chinese gifts

In China, Malaysia on 20/07/2018 at 4:05 am

Because they are Indian givers, as this highway to nowhere proves https://www.reuters.com/article/us-china-silkroad-europe-montenegro-insi/chinese-highway-to-nowhere-haunts-montenegro-idUSKBN1K60QX

Bringing in Chinese companies to build billions of dollars worth of freeways never seemed like a good idea in Montenegro, a southern European country of just over 600,000 people. But now the debt load of one such project has forced the country to freeze some public sector wages and even end a government benefit for mothers.

 

Right time for Trump to declare economic war?

In China on 07/07/2018 at 11:15 am

Think about it.

The EU is really having problems getting its economy to fire.

The Chinese are trying to deleverage the economy (all those debts) but afraid that moving too fast could cause a really bad economic slowdown or recession leading to riots.

Meanwhile the US economy is firing on all cylinders, rocket-boosted by tax cuts. It might overheat.

So a trade war now for the US could cause the US to cool down while causing serious damage to Europe and China.

What better time then now for the US to start a war that damages everyone but affects it least?

Trump’s not a dotard after all?

US beats s*** out of China again

In China, Currencies on 29/06/2018 at 5:10 am

The renminbi fell for a fourth successive session, hitting its lowest point against the dollar of 2018. The US dollar is heading for its biggest monthly rise against the offshore renminbi since the early 1990s.

And yesterday, Wall St recovered from a really sharp fall the previous day which was a wild ride: on Wednesday market was up strongly, then reversed sharply, losing its initial gains and a lot more.

But

there was no respite for Chinese stocks, as the CSI 300 index closed at a fresh one-year low, taking it deeper into bear market territory.

FT

America is Great Again.

 

Why Trump thinks he’ll win trade war with China cont’d

In China on 27/06/2018 at 5:06 am

Further to the equity mkt falls referenced in Why Trump thinks he’ll win trade war with China,a 0.5% fall in the Shanghai Composite Index yesterday left it more than 20% from a two-year high hit in January. it’s now officially in a bear market.

Meanwhile, last night, US equity indices recovered some of the previous day’s sharp falls.

And the Chinese currency also weakened to a fresh six-month low while the US$ is up.

Trump is making Making America Great Again.

S$ currencies tua kee

In China, Currencies, Indonesia on 26/06/2018 at 4:09 am

As emerging mkts currencies are sold off, Sino and Indo currencies remain steady versus Trump’s $.

Next mkt China wants to corner

In China, Infrastructure on 25/06/2018 at 4:24 am

Global electricity suppy via ita Global Energy Interconnection initiative.

The first stage, set to run until 2020, involves investment in domestic grid assets within other countries. The second phase would see the knitting together of some of those grids and that generation capacity.

FT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Some Western observers see a geopolitical strategy on a par with China’s Belt and Road Initiative, a grand design that seeks to boost Chinese-led infrastructure investment in more than 80 countries around the world.

 

 

 

 

 

Why Trump thinks he’ll win trade war with China

In China on 24/06/2018 at 4:39 am

On June 19th Mr Trump said he would slap a 10% tariff on an additional $200bn worth of Chinese goods. The new policy, which followed an announcement by the White House on June 15th that it would push forward with the original tariffs announced in March, sent markets plummeting. Stock exchanges fell around the world, from Tokyo to London to New York. Unsurprisingly, the losses were most acute in China, where the Hang Seng share index closed down 3% and exchanges in Shanghai and Shenzhen fell by 4% and 5%.

https://www.economist.com/graphic-detail/2018/06/20/americas-trade-spats-are-rattling-markets

Falls in US were peanuts compared to Chinese, HK because as Reuters Breakingnewsputs it

Any [Chinese] reprisals probably would have a limited effect on the Dow Jones Industrial Average and other stock indexes. Though Apple generates about a fifth of its top line in China, listed U.S. companies overall find only about 4 percent of their revenue in the People’s Republic, according to Morgan Stanley research. And it’s far-fetched to think China will stop buying Boeing aircraft or Intel chips.

M’sia: Time to buy?

In China, Emerging markets, India, Indonesia, Malaysia on 21/06/2018 at 4:28 am

M’sian mkt being ignored. One of least crowded emerging markets. Thailand and China look vulnerable because everyone’s there. Indonesia, Pinoy Land, Taiwan, Korea and India are in between. 

HoHoHo: Another great Temasek investment?

In China, Temasek on 16/06/2018 at 10:30 am

When Hainan Airlines, HNA’s flagship carrier and HNA’s main cash generator, earlier this week, said it would sell up to 20% of its Shanghai listed shares to 10 investors among whom was one Temasek Holdings, cybernuts were screaming “Sure to lose money”.

Well they might like to know that China is leaning hard on its banks to support troubled HNA’s refinancing activities.

A person familiar with HNA’s investment in Deutsche Bank said the German lender saw the call to support the bond issue as positive. “It’s not a bailout but support in financing, absolutely different to Anbang.”

FT

So a stake in HNA’s crown jewels, Hainan Airlines, sounds a good deal.

Whatever, with enemies like Phillip Ang (cybernuts go-to person for financial advice and analysis on our SWFs) and Uncle Leong, the PAP govt doesn’t need friends like Fabrications About the PAP or Calvin Cheng. Sad.

Einstein didn’t like us yellow slit-eyes

In China on 16/06/2018 at 4:05 am

According to a piece in the Guardian about the diaries, he describes Chinese children as “spiritless and obtuse”, and calls it “a pity if these Chinese supplant all other races”.

In other entries he calls China “a peculiar herd-like nation,” and “more like automatons than people”, before claiming there is “little difference” between Chinese men and women, and questioning how the men are “incapable of defending themselves” from female “fatal attraction”.

https://www.bbc.com/news/science-environment-44472277

But “Chinese defend Einstein’s portrait of their people as ‘filthy’ and ‘obtuse'”: https://www.theguardian.com/world/2018/jun/15/chinese-defend-einsteins-diaries-filthy-obtuse

Jack Ma is a patriotic parrot

In China on 15/05/2018 at 4:29 am

From NYT Dealbook sometime back. He should remember that Xi had to beg Trump not to kill ZTE.

Jack Ma on what a trade war would cost the U.S.
The Alibaba Group co-founder asserted in a WSJ op-ed today that the U.S. risked throwing away a huge opportunity to make money in China, because his home country may soon become an enormous consumer. From his piece:
“It is therefore ironic that the U.S. administration is waging a trade war at a time when the largest potential consumer market in the world is open for business.”
Yet economists point out that China is still an offender on intellectual-property theft and restricting its market to foreign companies — even as they worry that tariffs will backfire. (The Fed is worried, too.) But Larry Kudlow has urged calm, even as he didn’t rule out tariffs coming before negotiations with Beijing.
Elsewhere in trade: While the U.S. wants a Nafta deal by next month, Mexican negotiators are still balking at some Washington demands.

Trump’s Chinese allies in China trade war

In China on 03/05/2018 at 4:19 am

His fifth column in China, juz as China has US retailers and MNCs as their fifth column in the US (Don’t know what fifth column is? Think of what the PAP thinks of our ang moh tua kees esp one PJ Thum.).

Or how a Chinese boycott of U.S. goods could backfire.

Beijing is aware of the importance of American companies to China’s economy. Ernan Cui, a consumer analyst at the research firm Gavekal Dragonomics, said a boycott could have many victims.

“Due to the integration of the economies, whatever China does to the U.S. will end up hurting itself,” Ms. Cui said.

Lots of Chinese work for US MNCs directly and a lot more indirectly.

And notably, many of those products are made by Chinese workers. Factories in China assemble iPhones, stitch up Nike apparel and footwear and make Chevrolets and Fords. It isn’t clear how many jobs this creates, but the American Chamber of Commerce in China said that more than one-third of its 800-plus member companies have more than 1,000 employees in the country.

“China needs the U.S., the U.S. needs China,” said Max Baucus, a former United States ambassador to China. “We are joined at the hip economically.”

US cos are big investors

The United States has also supplied much of the investment underpinning China’s economic growth. Between 1990 and 2017, America pumped more than $250 billion into China, according to a report by the Rhodium Group and the National Committee on United States-China Relations.

“The U.S. multinationals have been playing a very critical part of China’s development story, providing investment, technology, brands,” said Erlend Ek, trade research manager of China Policy, a Beijing-based advisory firm.

“They have a very good relationship with each other.”

Then US cos help China become great.

There’s another reason that Beijing may be reluctant to try a boycott: American multinationals are aiding the Chinese government in some important projects. IBM and Walmart, for example, are collaborating with the e-commerce company JD.com and Tsinghua University to improve food safety in China, a priority for Beijing.

Thewn Chinese love US products like iPhones, McDonalds (edible),Starbucks coffee (even if it’s crap), KFC congee and chicken (both rubbish), and Nike shoes (made in China).

And finally they eat lots of meat. Cattle, chickens and pigs need imported feed and if US feed is banned or taxed heavily, feed (and meat) will be a lot more expensive.

U.S.-China trade war’s time line/ EU is US ally

In China, Economy on 23/04/2018 at 4:17 am

 

Remember a trade war will hurt property prices badly: Why en-blocers could be in for a nasty surprise.

From NYT’s Dealbook

The timeline for a potential U.S.-China trade war

As the U.S. and China continue to posture over trade — alarming U.S. farmers, many of whom are in key electoral districts in the Midwest — it’s worth noting three upcoming dates, Peter Eavis writes.

On May 1, exemptions to the tariffs on imported steel and aluminum expire.
On May 22, the public comment period ends for another $50 billion worth of tariffs, and the Trump administration can announce a final list of targets.
And Aug. 18 is potentially the deadline for the administration to act on an investigation into Chinese trade practices. But there’s a provision for a 180-day delay after that.
Key caveats: President Trump has the power to pursue trade policy almost at whim. And a W.T.O. proceeding against China could take years.

Is the E.U. bending to Trump on trade?
With its $16 trillion economy and reputation for tough negotiating, the E.U. could have been the immovable object in President Trump’s trade fight. But that is looking less likely, Peter Eavis writes.
Why? The WSJ reports that the E.U. is prepared to offer concessions to avoid Mr. Trump’s threatened tariffs on imported steel and aluminum that Mr. Trump has threatened — perhaps reducing tariffs on American cars and industrial parts, and joining the U.S. in pressuring China on trade and investment rules.
Among the lessons if the E.U. concedes: The U.S.’s large trade deficits can give it leverage.
Beijing appears keenly aware of the risks here and is sure to press its case at a China-E.U. summit in July.

 

China: Paper tiger in South China Sea

In China on 31/03/2018 at 4:56 am

A Chinese academic (The Chinese equivalent of brown noser Eugene Tan and other local academics?) said “The aircraft US carrier has stayed long within this region. China now is showing that it’s not afraid.”

He was referring to the USS Carl Vinson, a US supercarrier that sailed very slowly through the waters in the South China claimed by China in February and the massive naval China exercise now on the way.

If the Chinese had balls, they’d have carried out their exercise when the carrier group was sailing in waters claimed by China. They most probably were afraid that the US were trying to get them into a Gulf of Sirte incident.

In 1981, the Libyans flew two planes near a carrier group that it claimed infringed their territorial waters. The US shot them down claiming it had fired on their aircraft.

Then as now the US had a president that was no talk cock sing song artiste like Obama, a Democrat. Not only is Trump president but Mad Dog Mattis (Military call sign “Chaos”) is his defence secretary.

 

More on Meng Seng’s ignorance of Chinese history

In China on 30/03/2018 at 11:32 am

Further to Meng Seng doesn’t know his Chinese history, here’s more evidence that he was BSing about Chinese history: that China is a really peace-loving nation. It’s like any other major nation: expanded from one area by conquering and killing the neighbours. No difference from US of A, UK, France, Russia, Germany, Iran etc

From Quora

We have an example of what happens when large amounts of Chinese take over another land already occupied by non-Chinese people. In the 16th century, the Qing dynasty defeated the Ming dynasty, so 30,000 Ming dynasty remnants retreated to Taiwan (where the native population was believed to be about 100,000) and formed the Kingdom of Tungning. The Dutch were already there though but were kicked out by the Chinese/Japanese Ming loyalist Koxinga in history’s first seige between gunpowder armed Europeans and East Asians.

The Dutch may have already set an example for the Chinese on how to ‘deal’ with the native Taiwanese, as many had already been converted to Christianity. When Chinese forces won they went about re-educating natives from Christian to Confucian beliefs and replaced Churches with Confucian temples. The Dutch had already set a system of trade/exploitation of native resources too, which the Chinese continued. When the Qing dynasty took over Taiwan, they basically maintained the same system.

[I highlighted the bit about SE Asia yesterday in Oversea Chinese not real Chinese]

The writer ends

From these two different examples of Chinese colonies you can see how they might have interacted with the Americans. Taiwan gives an example of how Chinese attempted to assimilate/conquer the natives, Southeast Asia gives an example of how Chinese were assimilated by the native culture.

Oversea Chinese not real Chinese

In China, Indonesia, Malaysia on 29/03/2018 at 8:55 am

And when the Javanese helped the Chinese in Java

When the Dutch took over Indonesia in the 1700’s, they segregated Chinese merchants and workers that otherwise lived among the Indonesians, culminating in the 1740 Batavia massacre where Chinese were targeted for death. While the Dutch embassy to the Qing dynasty apologized for the East India’s company’s murder of ethnic Chinese, the Qing Emperor told them that any Chinese who leaves Qing territory is no longer Chinese, so he didn’t care. The only people willing to help the Chinese were the Javanese they lived with, leading to the Java War (1741–43) against Dutch rule.

The rest of the Quora article which talks about the Chinese coming in SE Asia before the 19th century migrations.

Ask the Indonesians/Malaysians


In the 1200’s, the Yuan dynasty’s fleet invaded Java but was repelled by the Singhasari kingdom, which in turn benefited from captured Chinese technology such as better ships. A century later the Ming dynasty would send their treasure fleets through Southeast Asia in a mission of peaceful trade, with some Chinese muslims staying behind to join the Muslim communities of Southeast Asia.

The Ming dynasty eventually established a peaceful relationship with the Muslim Malacca sultanate, with thousands of Fujian Chinese immigrating there. When Malacca fell to Portugal, the Ming dynasty responded with a boycott of Portuguese goods (only trading with Malaysians), even executing Portuguese envoys/bandits (sources vary), the Ming dynasty already had previous problems with Portuguese pirates. Relations with Portugal would improve over time though.

When the Dutch took over Indonesia in the 1700’s, they segregated Chinese merchants and workers that otherwise lived among the Indonesians, culminating in the 1740 Batavia massacre where Chinese were targeted for death. While the Dutch embassy to the Qing dynasty apologized for the East India’s company’s murder of ethnic Chinese, the Qing Emperor told them that any Chinese who leaves Qing territory is no longer Chinese, so he didn’t care. The only people willing to help the Chinese were the Javanese they lived with, leading to the Java War (1741–43) against Dutch rule.

 

Outline of Trump, China deal cheers mkts

In China on 28/03/2018 at 4:38 am

The US last week announced proposed tariffs against China, which sent US and Asian markets tumbling.

But China’s premier Li Keqiang said on Monday that China and the US should maintain negotiations.

Mr Li’s comments followed those made earlier by US Treasury secretary Steven Mnuchin, who told US media on Sunday he was “cautiously hopeful” that the US and China could come to an agreement on trade issues.

NYT Dealbook reported on Mon morning NY Time as mkts cheonged (Tuesday NY mkts recovering from Monday’s rise)

Behind Washington and Beijing’s back-channel tariffs talks
After a Friday that saw the markets sink amid fears of a trade war, the U.S. and China are holding high-level talks to defuse tensions, the WSJ reports. Leading them: Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and Liu He, Beijing’s economic czar.
Among Washington’s requests, in a letter to Mr. Liu, were lower Chinese tariffs on American cars and more freedom for Wall Street firms to expand in China.
Mr. Mnuchin told “Fox News Sunday” that he believed the recent rate increase by the Federal Reserve was to blame for recent market declines, not tariffs. He added, “We’re not afraid of a trade war, but that’s not our objective.”
News of the talks have lifted markets in Asia and Europe, while S.&P. 500 futures jumped this morning. It will also undoubtedly ease the fears of C.E.O.s, economists and foreign leaders and allies who have openly fretted about the prospect of a trade war. A sample quote, from Larry Fink of BlackRock: “The world does not need a public fight in which we reduce future opportunities.”

Cybernuts’ Guide to Trump pak China

In China, Economy on 26/03/2018 at 4:48 am

Summary: Be happy because global trade will suffer and thus S’pore very dependent on global trade (Why S’pore’s growth is so gd this year) will suffer.

Chief cybernut, Oxygen, already sending out invitations to his “PAP will collapse soon” party

Alternative view from EDB: Really? “Singapore Says Asian Growth Helps Offset U.S. Trade Threat”(From early last year)

From NYT’s Dealbook

Will the U.S.-China trade fight be a flicker or an inferno?
They’re here. President Trump imposed $60 billion worth of tariffs and penalties on Chinese goods. China is threatening tariffs on $3 billion worth of U.S. goods like nuts, wine and pork. Now S.&P. 500 futures and markets in Asia and Europe are down this morning, following yesterday’s steep sell-off (which was driven in large part by Boeing).
The context: Mr. Trump has made subtext — China is the U.S.’s main economic rival and must be treated as a strategic competitor — text. Few in the U.S. are happy with Beijing’s trade and intellectual property policies. But the world is now watching to see whether the fight turns out to be a spat, or a prolonged and damaging conflict.
Peter Eavis’s take: A trade fight that eventually relaxes some of China’s disadvantageous conditions could bolster the long-term prospects of U.S. firms. And if the U.S. is able to recruit other countries to its cause, China may relent. Still, much could go wrong.
On the other tariffs: The E.U. is still waiting for confirmation of exemptions from the imported metals tariffs. They may get quotas instead. Meet Century Aluminum, the tiny manufacturer that pressed for those penalties.
Critics’ corner
Stephen Gandel of Gadfly writes, “Trump’s tariffs and especially his protectionist rhetoric threaten to cut more and more of the world off.”
Paul Krugman writes, “America has much less trade leverage over China than Trump imagines, and a trade war with ‘China’ will anger a wider group of countries, some of them close allies.”
The WSJ editorial board writes, “A rising and aggressive China poses considerable risks to world order, but persuading its leaders to conform to trading norms requires more than scattershot tariffs.”

 

Meng Seng doesn’t know his Chinese history

In China on 21/03/2018 at 10:04 am

Our very own Wu Sangui (Silence of Goh Meng Seng) who wants us to kowtow to Xi because China’s a peaceful nation doesn’t know his Chinese history because he doesn’t know how China was created: by emperors who waged war. And he was from a Chinese-language school?

Or he is a lackey of Xi?

From Quora

The first great conqueror of China was Ying Zheng, the king of Qin. Roughly contemporaneous with Alexander of Macedon, he conquered all the states of the North China Plain by 220 BC at age 38 and proclaimed himself Qin Shihuang. In the next few years, he campaigned southwards and expanded the Chinese world further than it had ever reached. By the time he died, the Qin Empire stretched from the edge of the Eurasian steppe into the jungles of Vietnam. This realm was similar in size to Alexander’s empire and had a similar aftermath. Neither empire outlasted its founder’s death for long, but although the expanded Hellenic world created by Alexander collapsed within 300 years, the Sinosphere continued to expand over millennia.

Later emperors would rule even larger polities. For example, Li Shimin, who founded the Tang Dynasty alongside his father whom he would go on to depose went on to rule an empire even larger than Rome’s. Tang soldiers occupied swathes Korea, the jungles of Vietnam, and even marched across thousands of miles of desert and mountains to subjugate territories in Afghanistan and Central Asia. Although the Tang never settled the Mongolian steppe to their north, they succeeded in annihilating the Eastern Turkic Khaganate that ruled it, eliminating the nomad threat for generations. All of this was accomplished in a single lifetime.

The Tang are in yellow while the subjugated polities on their borders are in brown

.

And the above left out Han Wu-ti. More from another Quora contributor

And several Qing emperors

China’s friends in the US

In China on 21/03/2018 at 4:10 am
The enemies within?

U.S. companies warn the White House on China tariffs

Forty-five trade groups, including the U.S. Chamber of Commerce, urged President Trump not to move forward with sweeping tariffs on Chinese goods.

Here’s what Thomas Donohue, the C.E.O. of the chamber, said:

“The livelihood of America’s consumers, businesses, farmers, and ranchers are at risk if the administration proceeds with this plan.”

NYT Dealbook

India thinks it’s China’s rival?

In China, India on 20/03/2018 at 4:14 am

More like vassal.

India is the biggest beneficiary of the Chinese-led Asian Infrastructure Investment Bank. India takes a quarter of all its investment commitments to date despite India thinking China is its rival

India benefits from AIIB loans despite China tensions

Delhi overlooks security concerns to pick up $1bn in infrastructure funding
FTY headline

Chinese fraud in US executed from S’pore

In Banks, China on 17/03/2018 at 4:42 am

Bank of America Merrill Lynch recently agreedto pay US$1.4 million to settle S.E.C. allegations that it didn’t do enough to investigate red flags at a Chinese company Longtop Financial Technological, a Chinese software company accused of fraud in 2011 whose unregistered securities it sold.

The sales occurred in a brokerage account opened in a Singapore branch of BofAML and were executed by traders in New York at the direction of the Singapore office, according to the SEC. In 2013, BofAML sold Merrill Lynch’s international wealth management business, including the Singapore branch office.

Trump can’t count

In China on 13/03/2018 at 5:40 am

Doesn’t know difference between US$1bn and US$100bn.

Mr. Trump tweeted that he has asked Beijing to reduce its trade deficit with the U.S. by $1 billion, adding, “We must act soon!”

NYT’s Dealbook

US$1bn is “peanuts” in the context of a trade deficit with China of more than US$500bn.

Seems he meant US$100bn.

Maybe taz why although he’s worth slightly more than US$3bn, he thinks he’s worth a lot more. He can’t count.

Meng Seng wants us to kowtow to Xi

In China on 07/03/2018 at 10:17 am

Actually I’m just being polite: the guy who helped (Was he paid? Or did he do it out of the goodness of his heart because he loved the PAP?) the PAP’s preferred candidate to win in PE 2011 by

— persuading TKL to run;

— then running a shambolic campaign for TLK;

— and then saying he had to go to HK for a job interview,

wants us to lick Xi’s ass, suck his [expletive deleted] and get screwed by Xi, all at the same time. Image result for Goh Meng Seng

Don’t believe me? Here’s what he wrote:

Although we might not want to subject ourselves totally to China’s dominance but it would be naive to think that we could go head on against it, thinking that we should be more superior in any context.

Notice the dog whistles he’s sending that we must kowtow to Xi.

Lest I be accused of taking his statement out of context, here’s his piece telling us that China is the nice guy, not a bully. Everything that China did wrong should be blamed on the Mongols and Manchus who were not Chinese: not the Chinese. Btw, /www.quora.com/Do-Chinese-people-consider-the-Manchu-Qing-dynasty-to-be-Chinese-or-do-they-consider-it-to-be-an-invasion-like-the-Yuan-Dynasty.

Imperialism of the Day

I was a bit curious when I read about PM Lee’s praise of LTK’s speech. I actually bother to do a search and listen to his speech.

I was a bit shock when I heard him saying that China might become an “Imperialist Power” and behave like Japan during the Second World War! It cannot be the case that the negative nuance of such provocative suggestion could escape a seasoned Chinese educated politician like LTK!

Curiously, LTK didn’t mention much about European’s Colonialism nor the “Imperialist Dominance” of the Americans in the last century over Vietnam up till today’s world.

Imperialism exists throughout history and even in modern times, it still exists in many different forms.

But to use Japan as a corresponding example to China is basically an attempt to add salt to past wounds and mockery aimed at the Chinese government.

If these words come from some American or Western educated person, I would have just smiled or laughed away but for a person who is well verse in Chinese history, both modern and ancient history, to utter such words, is really socking and provocative.

The Chinese hated the Japanese for the invasion and atrocities done in WW II. To make comparison of China between them as potential Imperialist, is considered as a rude attempt to mock China. Such sensitivity should not escape a Chinese educated mind.

Japanese Imperialism started long before WWII when it annexed Korea. Due to geo-political reasons, Japanese had always harbor the intention of attacking and conquering China. Throughout history, many of the Chinese dynasties have been fighting off Japanese invasions or piracy along the eastern coast.

Except for the Mongolian Yuan Dynasty, which was considered as a foreign dynasty set up by foreign invaders, most of the 5000 years of ancient Chinese dynasties were contended with their own immediate territories.

There were tributary systems set up in Chinese history but basically, these states were just left alone. Interesting enough, on the contrary, quite a number of Chinese dynasties were formed by “Foreign invaders” like the Mongolians, Manchurian and they were constantly invaded by the Western and Southern tribes.

To suggest China having Imperialistic tendency is basically a hypothesis without any basis or historical backing. Unlike Japan, historically speaking, Chinese has not shown any such ambition to rule the world. Chinese dynasties are mostly inward looking and sometimes, even Xenophobic which resisted interaction with foreign states. Chinese dynasties might have requested tributes from other states but that’s basically out of Imperial Egos more than anything else.

Westerners were the ones who created colonialism out of their Imperialism. Japanese learned from the Western powers. But China? Most of the time it was the victim of such Imperialist Colonialism.

I do not like one party rule in China as well as Singapore. I do not like Communist rule in China as well. [Err so how come he telling Honkies that they should kiss China’s ass? He’s making himself really unpopular among the progressives in HK.] But we have to look at the REAL ACTUAL context and refrain from direct agitation or provocation against the emerging powers like China.

When we recognize ourselves as just a small little tiny city state, then it would only be wise to stay focused on the balance.

We had subjected ourselves to British and American Imperialism before and we had swallowed it while maximizing every opportunities we could find in between. That’s the cruel reality we face throughout history.

The problem of Economic-Political dominance by any huge country or Super power is a common problem that small countries face throughout history. But very few will stick their heads out and get slammed in the end.

I would say that the problem lies with the stubborn mindset of “superiority” of the past which doesn’t want to change according to the dynamic change and shift of geo-economic and political balance.

Those in powers must realize that we are no longer “superior” in any terms over the “long backward China”. The feeling of uneasiness and threats is the result of the dissonance between past egoistic superiority mindset entrapped in current awe of a rapid emerging power in China.

Although we might not want to subject ourselves totally to China’s dominance but it would be naive to think that we could go head on against it, thinking that we should be more superior in any context.

For a start, such provocative speech by politicians should be avoided. We can show concern, worries or even urge for more effective strategies to deal with an emerging giant at our doorstep, but the last thing we need is to provoke it.

Goh Meng Seng

Btw, do remember that he’s a fan of Amos who says sex with children is OK. The above pix of Bozo’s brother was taken at a “Support Amos” do.

Want to slime WP Low, but kanna sai instead by TRE readers. I’m on their side.

Bearing gifts to the White Hse?

In China on 03/03/2018 at 5:48 am

Liu He, Beijing’s top economic adviser, met with American business leaders like Jamie Dimon of JPMorgan Chase and David Solomon of Goldman Sachs amid heightening trade tensions between China and the U.S.

NYT Dealbook

He’s on his way to Washington. Well Trump and his officials by imposing tarrifs on imported steel and aluminium on nation security grounds are telling China that BS is no longer an option as it was when Obama was POTUS.

So will he be bearing gifts from one empewror to another?

The US wants China to buy US gas and oil, lots of it. And China does need energy though having the US as a major supplier, is like putting a noose round its neck. Before Pear Harbour, the Americans had just stopped selling steel (scrap I think) to the Japs. It would have caused economic problems for the Japs.

Noble is crap to be flushed away

In China, Commodities, Corporate governance, Emerging markets, Energy on 01/03/2018 at 7:32 am

I’ve been taking a keen interest in the once Noble House because I tot it might look interesting post restructuring even if it would have a very high debt burden after swapping debt for equity.

Well its warning of bigger losses (now confirmed*) put paid to my interest because the latest losses were coming from coal trading the business it was going to focus on post restructuring, and which was the basis of it being nubbed “Noble House”

I’ll let the FT do the talking:

One of Noble Group’s biggest shareholders has said senior management has yet to show it can turn round the commodity trader after it reported a $5bn annual loss, one of the largest ever in Singapore.

Goldilocks Investment, which took an 8.1 per cent stake in the crisis-hit company last year, said the fact the core business of coal trading continued to lose “millions every month” raised doubts about a rescue plan involving a massive debt-for-equity swap.

*https://www.reuters.com/article/us-noble-grp-results/noble-group-plunges-to-4-9-billion-loss-in-talks-to-wrap-up-debt-deal-idUSKCN1GC172

HoHoHo: More money for Budget

In Banks, China, Emerging markets, Hong Kong, Temasek on 28/02/2018 at 5:50 am

Soon, Temasek will be contributing a bit more to the Budget.

“StanChart restarts dividends as profit returns” is the FT’s headline on the turnaround in StanChart. It stopped paying dividends several years ago.
And there’s still plenty of room for it to improve
[D]espite stellar economic growth in Asia, which accounts for over two-thirds of underlying pre-tax profit, the group is still destroying economic value. Return on equity, at 1.7 percent or 3.5 percent excluding exceptional items, is still far below the group’s cost of equity, which is probably more like 10 percent. Costs are rising, even as the group clamps down on loan losses.

After years of retrenchment, Winters needs turbocharged revenue growth and restraint on costs to hit his modest medium-term target for an ROE of 8 percent. Suppose operating costs grow just 2 percent annually, with flat loan losses and restructuring charges and taxes at 30 percent. StanChart would need 7 percent annual revenue growth to fulfil its aim by 2020, according to a Breakingviews calculation. That is more than double last year’s rate and at the top of the bank’s projected 5 to 7 percent range.

https://www.breakingviews.com/considered-view/stanchart-shareholders-pay-winters-a-compliment/

If things work out at StanChart (and elsewhere), maybe GST increase can be delayed? Dream on, pigs will fly first.

Update at 7.30am Chris K responded:

News like this does not impact the NIR Temasek delivers the budget becos the contribution is based on expected real returns over the long run.

I responded:

So long as no transparency shows how flakely is NIR. It’s want the PAP administration says it is.

New Chinese way of screwing employees

In China on 17/02/2018 at 4:08 pm

From NYT Dealbook

HNA’s new money source: its workers
The Chinese conglomerate has about $90 billion in debt from splashing out on things like Deutsche Bank and Hilton Hotels. Its borrowing costs are going up, and asset sales are becoming necessary — it’s under the gun to find more money.

Which is why it appears to be asking employees for cash, according to Alexandra Stevenson and Cao Li of the NYT:

In an email dated Jan. 4, one HNA unit told employees that it needed nearly $8 million to fund a duty free business. It advertised a 9.8 percent annualized interest rate. One week later, HNA’s media and entertainment arm said it was looking to raise nearly $80 million from employees, pledging strong returns and a plan to build up the business.

Hellish journey: PRCs returning home for CNY

In China on 15/02/2018 at 5:38 am

As most PRCs take the slow train home for the reunion dinner, they have themselves to blame for the smelly part of the ordeal.

Unilever brought deodorant to China dreaming of a market with 2.6 billion armpits, but struggled against beliefs that it’s healthy to sweat. Other companies have hit similar cultural difficulties. (NYT)

NYT Dealbook

If only they didn’t love smelly armpits, the journey home would be a little more pleasant.

Trump has point on free trade

In China on 11/02/2018 at 5:28 am

Trump doesn’t believe in free trade and decries that China is a beneficiary of US free trade policies.

China juz following US’s playbook of overtaking the UK in the late 19th century, early 20th century.

China’s economic success lays bare an uncomfortable historical truth: No one who preaches “free trade” really practices it. (NYT)

NYT Dealbook

Trump not that stupid. Btw, he went to Wharton.

HO HO HO: How Shi**y is StanChart?

In Banks, China, Emerging markets, Hong Kong, India, Temasek on 30/01/2018 at 6:11 am

In 2016, when China as a country grew at close to 7 per cent, StanChart’s revenue across greater China and north Asia declined by 15 per cent. While Southeast Asia GDP grew by nearly 5 per cent, StanChart’s revenue there shrank by 5 per cent. And in Africa and the Middle-East, another fast-growing region, the bank’s revenue was down 4 per cent. StanChart’s full-year numbers for 2017 have yet to be published, but at the last count its ROE was running at about 5 per cent …

Today’s FT

India and China not walking the talk

In China, India on 25/01/2018 at 6:48 am

India can “pak” China. US cannot. India should remember it’s sua kee, not tua kee like US and China.

India’s Prime Minister Narendra Modi spoke against tariffs at the World Economic Forum in Davos in an apparent reference to the US measures, although India’s own finance ministry is planning a 70% tariff on Chinese solar panels.

“Forces of protectionism are raising their heads against globalisation. Their intention is not only to avoid globalisation themselves but they also want to reverse its natural flow,” Mr Modi said.

BBC report

But he’s most probably apeing Xi. Last yr at Davos Xi espoused global trade but his policies since then showed he was not walking the talk. Latest example:

Of the contractors working on China-funded transport infrastructure projects in 34 Asian and European countries, 89 per cent were Chinese, leaving 11 per cent from elsewhere, according to the study by the Center for Strategic and International Studies, a Washington-based think-tank.

FT

 

Tomorrow China, The Day After S’pore

In China, Internet, Political governance, Public Administration on 19/01/2018 at 6:46 am
Further to

Why does PM wants a cashless payments system?

Because no-one can hide from Big Brother when the banks are at the centre of the system.

Why PM wants a cashless payments system

from NYT Dealbook late last yr

The tech that will power China’s police state in the future.

The World Internet Conference in Wuzhen wasn’t just a gathering to show off the latest in Chinese gizmos, like a version of the Consumer Electronics Show. It also offered a glimpse of how new advances in artificial intelligence and facial recognition can be used to track citizens, and how they have become widely accepted.

From Paul Mozur of the NYT:

Investors and analysts say China’s unabashed fervor for collecting such data, combined with its huge population, could eventually give its artificial intelligence companies an edge over American ones. If Silicon Valley is marked by a libertarian streak, China’s vision offers something of an antithesis, one where tech is meant to reinforce and be guided by the steady hand of the state.

Big Brother is watching you. thanks to the the internet and other technology.

Related post: Coming here, China’s new tool for social control?

 

Noble House rebuilding

In Accounting, China, Commodities on 18/12/2017 at 2:58 pm

Commodities trader Noble Group Ltd is negotiating a debt restructuring program with its creditors to stay out of an insolvency process and expects to receive proposals soon, its chairman said on Friday.

https://www.reuters.com/article/us-noble-grp-debt/noble-group-locked-in-talks-with-creditors-to-restructure-debt-idUSKBN1E9180

What is interesting is that FT reports that the creditors may swap their debts for equity. Should that happen present shareholders including sovereign wealth fund China Investment Corp, one of its its biggest shareholders, will be heavilt diluted.

Could be an interesting play then for the brave as there’ll be leverage and the new shareholders will have an incentive to keep the credit lines open. I’m looking at what assets remain.

The Noble House is dead. Long live the Noble House.

 

HNA: From hero to zero

In China on 17/12/2017 at 5:50 pm

But China Inc helps out prodigal son.

From NYT Dealbook

A beleaguered Chinese conglomerate soldiers on
Goldman Sachs and Bank of America won’t work with it anymore. Investors are starting to feel spooked. But HNA is still doing deals — with help from its country’s lenders.
Several Chinese lenders have indicated that they could extend HNA’s credit lines despite concerns that the conglomerate has spent too much on foreign acquisitions, at least according to HNA.

Doing biz with PRCs

In China on 25/11/2017 at 4:56 am

No wonder, S’poreans get taken to the cleaners when dealing with PRCs.

A Chinese conglomerate paid millions of dollars in bribes to officials in Chad and Uganda in exchange for oil rights in their countries, according to a criminal complaint filed in Manhattan. (NYT)

Hedge funds are demanding better terms from multibillion-dollar buyouts involving Chinese firms. (Bloomberg)

From NYT Dealbook

Only the Taiwanese outsmart them. Even the Hongkies just manage to avoid getting outsmarted.

The PAP way?

In China, Media on 21/11/2017 at 5:52 am

The government doesn’t refute critics or defend policies; instead, it overwhelms the population with positive news (what the researchers call “cheerleading” content) in order to eclipse bad news and divert attention away from actual problems.

This has allowed the … government to manipulate citizens without appearing to do so. It permits just enough criticism to maintain the illusion of dissent and only acts overtly when fears of mass protest or collective action arise.

Sounds like the way the PAP does things with the help of the constructive, nation-building media.

No leh. It’s supposed to be the Chinese way: https://www.vox.com/world/2017/8/2/16019562/china-russia-internet-propaganda-media


“Why CCP’s fears are PAP’s fears”

Keeping power in a one-party state

————————————————–

But maybe the CCP learnt from the PAP? It was one of the things that Deng learnt from LKY? After all when LKY came into power, he made sure that the local newspapers, tv and radio all became part of the PAP’s constructive and nation-building team.


Address to the General Assembly of the International Press Institute at Helsinki on 9 June 1971

“What role would men and governments in new countries like the mass media to play?… The mass media can help to present Singapore’s problems simply and clearly and then explain how if they support certain programmes and policies these problems can be solved. More important, we want the mass media to reinforce, not to undermine, the cultural values and social attitudes being inculcated in our schools and universities.

[Several paragraphs later] Freedom of the press, freedom of the news media, must be subordinated to the overriding needs of the integrity of Singapore, and to the primacy of purpose of an elected government.”

——————————————————-

Their job was (and is) not to critick LKY’s govt but to be its cheerleaders.

Example from MediaCorp’s reporting (Might was well juz publish the speech):

The trust between the People’s Action Party (PAP) and Singaporeans will be tested in the coming years amid social and economic disruptions afflicting the world, party secretary-general Lee Hsien Loong warned activists on Sunday (November 19) at the PAP convention.

And it is during this period, that the trust built by the ruling party “painstakingly over more than 60 years” will be more important than ever, said Mr Lee, who is also the Prime Minister.

Stressing the need for good policies to help Singaporeans cope with the challenges, he also urged Members of Parliament (MPs), activists and “key people throughout our society” to preserve the “good politics”.

He noted that in western democracies, the trust between mainstream political parties and the people has essentially broken down, and the parties “no longer seem to represent the common man’s interests”.

“We must never let this happen in Singapore. The PAP must always pursue policies which benefit the broad majority of Singaporeans,” he said.

“The PAP must always hold the ground, stay close to Singaporeans and maintain their trust and confidence.”

Adding that it will not be an easy task to achieve goals such as upgrading the economy, creating good jobs, building world class infrastructure and preparing for an ageing society, Mr Lee said that in order to implement the policies, “we must get our politics right”.

The people must support the PAP, he said.

“Most of all, they must trust the PAP,” he added.

“They must know that the party cares about them, and is working to improve their lives.”

Mr Lee said this does not mean the government should do only popular things. From time to time, it also has to make hard choices and take difficult decisions.

“And when we do so, we must be upfront with Singaporeans” in explaining the rational and getting their support, he said.

“Even if people may not like the specific policy, we must convince them that we are doing it with good intentions, and for good reasons,” he said.

He reiterated the people “must know the PAP not as a remote, impersonal government, but as their team, as a human, personal preference – your caring MP, your friendly branch secretary, people whom you know, people who have shown that they can get things done, and will help you through difficulties and improve your lives,” he said.

 

Got KFC outlet like this here meh?

In China, Uncategorized on 07/11/2017 at 5:45 pm

I’m not a fan of KFC food, so not been in or near outlet for years. From NYT Dealbook

Fast food gets a reboot in China: tuna-pesto paninis, paid for by facial recognition. When Michelle Xian wandered into one of the fast-food restaurants at a shopping mall here on a recent weekday, she didn’t realize it was a KFC. The modern décor featured an open kitchen and hanging plants, and the menu included tuna-and-pesto paninis and quinoa-and-corn salads. Customers were busy placing orders via smartphone, using QR codes printed on tables, or through a facial-recognition system that matches their images to their Alipay digital wallets.
“I don’t normally go to KFC because it’s not that healthy,” said Ms. Xian, 30 years old, who ordered a chicken sandwich before being told where she was. “This is more aligned with new trends.” – The Wall Street Journal

Xi’s an interner sui kee

In China, Internet on 25/10/2017 at 4:29 pm

Mr Xi has

more power than any Chinese leader since Mao Zedong. He is the first living leader to be mentioned in the party’s charter since Mao.

https://www.economist.com/news/china/21730590-does-mean-no-one-can-challenge-him-xi-jinpings-thinking-ranked-alongside-maos

But he and China were nowhere to be found last week when

Tech giants Microsoft, Facebook, Twitter and Google have agreed to do more to remove extremist content within hours of it being posted.

The accord was decided at a two-day meeting between the G7 nations and the tech firms, hosted on the Italian island of Ischia.

http://www.bbc.com/news/technology-41693777

Where’s China, Alibaba and Tencent? Not tua kee enough isit?

Xi and Jack Ma and the head of Tencent must be banging their balls balls that despite China’s billions of internet users it and its  leading cos are not an internet super power, unlike Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, and Microsoft, Facebook, Twitter and Google.

They just like Putin and Russia: internet pygmies.

Temasek into PAPpy food

In China, Temasek on 25/10/2017 at 10:05 am

FT reports that Hosen Capital, New Hope (a Chinese agricultural group) and Temasek have bought the Real Pet Food Company. They paid A$1bn for the Australian pet food group.

The plan to is to sell dog food in China.

And it’s not juz ordinary dog food that this company produces. It’s gourmet dog food.

In the S’pore context, it’s food meant for PAPpy dogs like ST and Mothership journalists, not the pariah dogs that pee, crap and bitch on TRE.

When China refuses to take FTs from the West

In China on 20/10/2017 at 4:21 pm

The West has a problem.

Imagine the world as a global waste disposal system. Now imagine it with a blockage.

And what if that waste is backing up around the world, reappearing in places where you really don’t want it to be.

That blockage is about to happen in China and the flood is going to start seeping out into waste disposal operations around the world.

Three months ago, China decided to ban 24 different grades of rubbish as part of its “National Sword” campaign against foreign garbage.

Until now China has been importing millions of tonnes of the world’s waste every year to feed its recycling industry.

http://www.bbc.com/news/business-41582924

Indians love Chinese smartphones

In China, India on 02/10/2017 at 7:21 am

In the latest quarter, it was reported that almost half of all smartphones sold in India were from Chinese brands, such as Xiaomi, Vivo and Oppo.

Cheap and good.

Indian govt is not happy.

RSN and RSAF have global reach/ Why PM is still in Xi’s doghouse

In China on 05/09/2017 at 5:59 am

Our navy is not just a coastal maritime defence force. While it isn’t a blue water navy, its ships can sail to the Pacific island of Guam and back:

The Republic of Singapore Navy (RSN) and the United States Navy (USN) have completed the inaugural bilateral Exercise Pacific Griffin in the waters off Guam, the Ministry of Defence (MINDEF) said on Monday (Sep 4).

Read more at http://www.channelnewsasia.com/news/singapore/singapore-us-navies-complete-inaugural-exercise-off-guam-9182794

Sailing there and back were two frigates, RSS Stalwart and RSS Supreme, and an Endurance-class landing ship tank RSS Endurance.

Meanwhile,

The RSAF’s KC-135R Stratotanker completed a three-month deployment to the region, “performing more than 50 missions, refuelling US and Coalition aircraft in the USAF Central Command’s area of responsibility”, the RSAF said in a Facebook post on Sunday (Sep 3).

Read more at http://www.channelnewsasia.com/news/singapore/rsaf-brought-fuel-to-the-fight-for-us-led-coalition-against-is-9182630

Time to start training with and helping out China? But then the US would be upset. But then PM can expect to be invited to Xi’s OBOR parties for friends only.

Will we offer help to China?

In China on 02/09/2017 at 6:59 am

If there’s a natural disaster in Fujien or anywhere else along the coast?

The four Republic of Singapore Air Force (RSAF) CH-47 Chinook helicopters from its Peace Prairie detachment in Grand Prairie, Texas have arrived on site to assist in the US’ Hurricane Harvey disaster relief operations, Singapore’s Ministry of Defence (MINDEF) said on Thursday (Aug 31).

According to the ministry, the RSAF’s Peace Prairie detachment has worked together with the Texas Army National Guard in the past, including relief operations after Hurricane Katrina in 2005, fire-fighting and flood relief operations in Texas in 2000, and Hurricane Floyd relief operations in North Carolina in 1999.

Read more at http://www.channelnewsasia.com/news/singapore/rsaf-chinooks-arrive-to-assist-in-hurricane-harvey-disaster-9172930
Read more at http://www.channelnewsasia.com/news/singapore/rsaf-chinooks-arrive-to-assist-in-hurricane-harvey-disaster-9172930

So if China has a natural disaster will S’pore offer China our help? After all we have military assets in Taiwan.

Cashless payments system are passé for really smart nations

In China on 01/09/2017 at 11:21 am

Smart nations are moving on to blockchain-based currencies.

Estonia, a country that prides itself on being at the cutting edge of digital technology, is floating the idea of a currency called estcoins.

http://www.bbc.com/news/technology-41047744

And China’s central bank has declared its intention to issue its own blockchain-based currency.

Pak China, destroy Taiwan

In China on 27/08/2017 at 4:58 am

The top eight exporters from China to the US are not PRC-owned but are ultimately Taiwanese-owned, according to Nomura.

So if Trump imposes sanctions on China, Taiwan is really in trouble.

 

NYT discovers that Chinese internet firms are big

In China, Internet on 22/08/2017 at 2:16 pm

Can’t stop laughing that this fan of Hilary Clinton and hater of The Donald (he returns the hate) has only just discovered the existence of big Chinese internet firms.

From NYT Dealbook

The new Silicon Valley may be in China.
America’s technology giants have new neighbors as the Chinese companies Alibaba Group and Tencent Holdings have quickly become darlings of global investors by dominating their home market.
Alibaba and Tencent are among the world’s most highly valued public companies, with market capitalizations twice as big as the longtime tech leaders Intel, Cisco and IBM.
They have joined an elite club of tech companies worth $400 billion and up that has been dominated by American businesses: Apple, Amazon, Facebook, Google and Microsoft.
“We’ve come to the point where China has finally caught up with the U.S. in the internet space,” said Hans Tung, a managing partner at the venture capital firm GGV Capital.
Alibaba and Tencent have grown to prominence by dominating e-commerce and online life in China, the world’s largest internet market. Their growth has come as Western companies, such as Facebook, have been blocked by the country’s tight internet controls.
This week, Alibaba and Tencent reported financial results that were well ahead of analysts’ expectations and point to the growing influence of technology on the Chinese economy.
Tencent is expected to soon become the only company other than Facebook to have a social network with more than a billion users, while Alibaba has more than 500 million monthly active users for its online shopping apps. The Chinese companies’ revenue also grew at a faster pace in the past three months than at Facebook and Alphabet, the parent company of Google.

Go to tech city: No masterplans or highly paid technocrats

In China, Hong Kong on 20/08/2017 at 6:23 am

It juz has smart entrepreneurs that want to make money.

A few days later than promised because the temptation to pour scorn on Hali’s BS was too great. I had promised to talk about a place that even Silicon Valley envied; a place that grew without master plans drawn up by highly paid “technocrats”.

The “predominant epicenter of high-tech design and manufacturing in the world” is Shenzhen http://www.bbc.com/capital/gallery/20170809-inside-chinas-skyscraper-capital Shenzhen shows how a high-tech hub can develop without master plans or MNCs . It was a low-cost manufacturing centre for HK businesses that juz kept on moving up market without master plans being drawn up by bureaucrats. Granted its economic zone status was granted by fiat but then HK and S’pore were similarly kick started.

Shenzhen has risen to become the predominant epicenter of high-tech design and manufacturing in the world. Variously called the “world’s factory,” “the new Silicon Valley,” and the “maker’s dream city,” Shenzhen has a complete ecosystem that contains everything needed for all stages of electronics production all in one place. This has turned the city into a staging ground for large high-tech companies, rising startups, and independent innovators from all over the world looking to get their stuff made as efficiently as possible. Tech giants like Huawei, ZTE , and Tencent all got their starts here, and many more companies seem to be on the way up.

https://www.forbes.com/sites/wadeshepard/2016/07/14/a-look-inside-shenzhens-high-tech-empire/

And Shenzhen’s growth has benefited HK which despite its political problems outperforms S’pore. Once Shenzhen provided HK manufacturers with low-cost facilities, now Shenzhen’s manufacturers use HK to provide services like finance, insurance etc.

 

McDonald’s read Sun Tzu?

In China on 13/08/2017 at 2:56 pm

Supersizing that Big Mac order in China the Sun Tzu way: becoming great in China by reducing ownership of the Chinese biz:

On Tuesday, the $126 billion burger giant said it planned to open 2,000 mainland stores by 2022. That will nearly double its footprint from 2,500 outlets now. That target is up one-third from a previous goal of 1,500 restaurants in five years, a goal that also originally included Hong Kong.

This underlines how the $2.1 billion sale of McDonald’s China business, which was agreed in January and closed last week, was not really a retreat. It now holds one-fifth of the business, which has the rights to run McDonald’s operations in China for 20 years, with the rest owned by Chinese conglomerate CITIC, CITIC’s private equity arm, and U.S. buyout firm Carlyle.

http://www.reuters.com/article/us-mcdonalds-china-breakingviews-idUSKBN1AP0AI

M’sia, not S’pore is the real Third China

In China, Malaysia on 09/08/2017 at 7:08 am

As today is our National Day, I tot readers should read https://www.bloomberg.com/news/articles/2017-07-31/chinese-money-pouring-into-malaysia-could-help-najib-razak-with-votes

Investment in infrastructure is good for Malaysia whether it comes from China or the U.S., according to Xu Bu, China’s ambassador to the Association of Southeast Asian Nations.

“Whoever comes to power that really doesn’t matter,’’ he said in a July interview. “Whoever comes to power in Malaysia, the leaders or the people in Malaysia they need investment.’’

Remember all the Chinese in M’sia: a biggish minority. 

The real reason China snubbed PM over OBOR party?

In China on 07/08/2017 at 1:09 pm

The cybernuts KPKB that PM’s criticism of China’s actions in the South China Sea led to him being excluded from China’s big OBOR party.

Taz not the real reason. China thinks S’pore is the US of A’s running dog par excellence.

——————————————-

MHA said that Prof Huang had co-operated with foreign intelligence organisations and agents to “influence the Singapore Government’s foreign policy and public opinion in Singapore”.
Read more at http://www.channelnewsasia.com/news/singapore/mha-s-statement-on-huang-jing-lky-school-professor-who-tried-to-9093570

—————————–

China routinely criticises the US for conducing spy missions over the South China Sea and East China Sea. Guess who is helping the US conduct spy missions over the South China Sea?

S’pore.

The BBC reported in Dec 2015

The United States has deployed a P-8 Poseidon spy plane to Singapore for the first time.

It is the latest in a series of US military actions seen as a response to China’s increasingly assertive claims over territory in the South China Sea.

The US says it will also base a military reconnaissance plane at Singapore’s Paya Lebar air base.

US P-8s already operate from Japan and the Philippines, and surveillance flights have taken off from Malaysia.

The P-8 was deployed on Monday, and will remain in Singapore until 14 December.

In addition to the P-8 deployment, the US says it will operate a military plane, either a P-8 Poseidon or a P-3 Orion, from Singapore for the foreseeable future, rotating planes on a quarterly basis.

http://www.bbc.com/news/world-asia-35036220

The flights from S’pore unlike that from M’sia and PeenoyLand are regular, not ad hoc.

The flights have one primary aim, monitoring the movements of Chinese nuclear subs based in Hainan.  They also are intended to show the finger to Chinese claims over the South China Sea.

Three littoral combat ships have also been deployed to Singapore since 2013. Now there are none, but two are going to be based here from next year http://thediplomat.com/2017/06/us-navy-plans-to-deploy-two-littoral-combat-ships-to-singapore-in-2018/

So of course China upset.

Btw, here’s serious money to be made from OBOR.

 

OBOR: Ang mohs laughing all the way to the bank

In China, Economy on 06/08/2017 at 5:52 pm

Western multinationals, spotting a bonanza, are selling billions of dollars of equipment, technology and services to Chinese firms building along it.

America’s General Electric (GE) made sales of $2.3bn in equipment orders from OBOR projects in 2016, almost three times the total for the previous year. John Rice, the firm’s vice-chair, expects the firm to enjoy double-digit growth in revenues along OBOR in coming years. Other firms, such as Caterpillar, Honeywell, and ABB, global engineering giants, DHL, a logistics company, Linde and BASF, two industrial gas and chemicals manufacturers, and Maersk Group, a shipping firm, rattle off lists of OBOR projects. Deutsche Bank has structured eight trade deals around it and has an agreement with the China Development Bank, one of China’s policy lenders, to fund several OBOR schemes.

https://www.economist.com/news/business/21725810-general-electric-got-23bn-orders-infrastructure-project-last-year-western-firms

Too bad for Keppel and SembCorp groups (they have the skills for many OBOR projects) that Xi snubbed S’pore by not inviting Pinkie to his grand party, inviting only Lawrence Wong.

Starbucks wants to be Great in China

In China on 05/08/2017 at 6:00 pm

Looks like Starbucks is running out of suckers in the rest of the world. Still it could be a great play on China as Yum and MacDonalds once were.

Last week BBC reported

Starbucks is to take full ownership of all its China outlets, after agreeing to buying out its joint venture partner for $1.3bn (£994m).

The deal will see it acquire the 50% stake it does not already hold in 1,300 stores in Shanghai and the provinces of Jiangsu and Zhejiang.

Starbucks already fully owns the other 1,500 outlets in China – its fastest-growing market outside of the US.

http://www.bbc.com/news/business-40749055

NYT Dealbook gives more info

China may be clamping down on its homegrown deal-makers. But DealBook’s Andrew Ross Sorkin notes that one American company is making a big move in that country: Starbucks.
Last week, the coffee giant bought out its local partner. It’s part of an eye-opening expansion campaign there, where it’s opening 500 stores a year. Starbucks is even planning a 30,000-square-foot emporium that the company’s chairman, Howard Schultz, thinks could have more significance for Chinese consumers than Shanghai Disney.
“When people ask me how much can you really grow in China, I don’t really know what the answer is, but I do believe it’s going to be larger than the U.S.,” Mr. Schultz told Mr. Sorkin.

Wow! China rules OK

In China, Commodities on 21/07/2017 at 1:32 pm

USA Rice said China consumes the equivalent of the entire US annual output every two weeks.

http://www.bbc.com/news/business-40678191

China has agreed to allow imports of rice from the US for the first time.

The agreement gives US farmers access to the world’s biggest rice consumer, with China importing about 5 million tonnes last year.

 

 

 

What China did to Korea, it can do to us

In China, Tourism on 12/07/2017 at 1:51 pm

Our PM should be careful of upsetting the Chinese. They’ll stop sending tourists to our casinos and S’pore generally. This year

China is on track to becoming Singapore’s top tourist market, latest figures from the Singapore Tourism Board (STB) show.

Arrivals from China jumped 36 per cent to some 2.64 million visitors from January to November last year, compared with the same period in 2015.

ST in January

If the numbers keep up 18% of tourists will be from PRC.

But Korea shows what happen when China is angry

The Korea Tourism Organisation (KTO) predicted there could be 4.7 million fewer foreign tourists this year than in 2016 – a drop of about 27%.

China has banned travel agencies from selling package tours to Korea in protest at Seoul allowing a US missile defence system.

Visitors from China made up 46.8% of tourists in South Korea last year.

http://www.bbc.com/news/business-40565119

Shumethings never change in M’sia:

In China, Malaysia on 08/07/2017 at 5:52 am

Malays are “hewers of wood and drawers of water”

In Xiamen University Malaysia

The students study in English and mostly converse in Chinese languages. For now, Malay – the language of around 60% of the population – is confined mostly to campus staff working in convenience stories and serving student meals in cavernous dining halls, but officials hope to attract more Malay students as time goes on.

https://www.theguardian.com/world/2017/jul/07/going-global-china-exports-soft-power-with-first-large-scale-university-in-malaysia

Waz this BS about China’s influence growing?

In China, Hong Kong on 29/06/2017 at 8:06 am

Uncle Redbean, Goh Meng Seng (Remember this adviser of wannabe-president TKL?) and other China tua kee nuts keep dissing the PAP administration for not kow-towing to Xi. They say S’pore should lick China’s ass because China is the coming hegemon. After all PM’s dad licked US’s ass and more.

To put things in perspective: if Hongkies are not happy with China, what does this show about China’s influence in the wider world? It can’t even influence opinion in HK to like it.

Hong Kong finds Beijing flunking soft-power test

China is flunking the soft-power test with Hong Kong. President Xi Jinping will visit the city to commemorate the 20-year anniversary of its triumphant return to Chinese control. But Beijing’s grip over hearts and minds in Hong Kong is weakening. That is a problem, since this a primarily ethnically Chinese, ruthlessly pragmatic city – people who one would expect to be sympathetic.

In Hong Kong, China has revealed an unfortunate pattern duplicated in other countries: a preference for working with elites, popular or not; a willingness to use money – or force – to silence criticism; disregard for the rule of law when it doesn’t suit current needs; and a general disdain for the carrot when the stick will do.

The irony is that Beijing is spending as never before on “soft power,” a phrase best simplified as “convincing other people to like you, and to want what you want.” It is rolling state television stations out across Africa, buying newspapers in Australia and radio stations in the United States. The Confucius Institutes, an unapologetic propaganda effort, subsidize pro-China education around the world.

But this hasn’t drowned out headlines from Hong Kong. For all the spending, Pew Global Research polls show negative views of China have increased in recent years. Beijing can throw money around all it wants, but if even Hong Kong won’t buy the message China is selling, it is hard to see it travelling well elsewhere.

http://www.reuters.com/article/us-hongkong-politics-breakingviews-idUSKBN19J0C3

Charts that show Hongkies are getting, feeling “less Chinese”. http://fingfx.thomsonreuters.com/gfx/rngs/HONGKONG-POLL/010020KY1EB/index.html

Why China beats up S’pore

In China on 22/06/2017 at 10:09 am

Nothing to do with PM or him sakaing ang mohs or being their running dog.

Go to https://www.facebook.com/sgdaily/. There’s an excellent article there from FT explaining that China expects overseas Chinese to toe Beijing’s line unthinkingly. As S’pore is 70% Chinese, this explains why S’pore is expected to behave like a province of China.

Peenoy presidente called for US help

In China on 11/06/2017 at 4:37 pm

How come he no call for help from China, Uncle Redbean?

US special forces are helping the Philippine military retake the southern city of Marawi from IS-linked militants, the Philippine army says.

The forces are providing technical help and are not fighting, it said.

President Rodrigo Duterte had earlier threatened to throw out US troops amid strained relations since taking office.

http://www.bbc.com/news/world-asia-40231605

Reuters news agency earlier quoted the US embassy in Manila as verifying the presence of US forces. It would not go into operational details but said the US forces were helping at the request of the Philippine government.

Ah Loong right to see China no ak isit Uncle Redbean?

 

S’pore not part of Sinosphere

In China on 11/06/2017 at 10:42 am

A “blogger” posted when defining “Sinosphere”:

Notice I don’t have Singapore in any of them , simply because Singapore is a highly Westernized country that aims to have blends of multiple cultures, so while Han Chinese is the largest population, that doesn’t mean Singapore is culturally Chinese. In fact, it’s a very big mixture between British, Chinese, Indian, and Malay cultures.

Eat yr heart out Uncle Redbean and that guy that lives in HK but lectures us on how to do things here.

He described the Sinosphere as

… Han Chinese, Yamato Japanese, Koreans, and Kinh Vietnamese. Namely, Mainland China/Taiwan/foreign Chinese, Japan/foreign Japanese, North/South Korea/foreign Koreans, Vietnam/foreign Vietnamese. Unsurprisingly, they’re the only ones with Chinese-derived names in English: Chin(ese) 秦, Japan(ese) 日本, Korea(n) 高麗, Vietnam(ese) 越南. In short, they’re collectively called the Sinosphere, or nations within Chinese cultural sphere of influence.

https://www.quora.com/What-country-is-culturally-closest-to-China/answer/Tim-Tran-14

 

Thinking of buying IgNoble?

In Banks, China, Commodities, Energy on 07/06/2017 at 6:55 am

The reasom why the share price collapsed further yesterday was because Noble’s

main banks are locked in last-ditch talks over whether to give the crisis-hit commodity trader more time to find a white knight investor or force the company into a restructuring or liquidation, according to people with knowledge of the discussions.

FT

HSBC, Soc Gen, ABN Amro, Citigroup and ING are its main banks.

What Mad Dog Chee doesn’t say about S’pore’s major OBOR project

In China, Logistics, Shipping on 28/05/2017 at 4:51 am

(Yup it’s pak Mad Dog time: fourth Mad Dog piece in a row.)

Mad Dog and other anti-PAP nuts don’t tell us (Because they don’t know? Or they like PAP, like to “hide” inconvenient facts?) that there’s a 2016 Chinese agreeement to invest in three new megaberths here which will ensure S’pore maintains its position as a major port along One Belt One Road and global maritime routes.

Hong Kong-based COSCO Pacific and PSA Singapore have signed a new investment agreement in Shanghai, China today to co-invest in three new mega berths at the Phases 3 and 4 expansion of the Pasir Panjang Terminal which was opened last year.

The investment will be implemented through a joint venture Cosco-PSA Terminal (CPT) and allow for the arrival of mega container ships at the new container berths in anticipation of trade growth and growth in size of boxships plying the international waters.

The new mega berths are slated to begin operations from 2017. According to PSA, they will be fully integrated with PSA’s infrastructure and supported by the automated and intelligent port technologies.

The co-investment agreement is strategically important to both partners and will help them up their competitive game. It is also a clear demonstration of China COSCO Shipping’s confidence in Singapore as a well-connected transhipment hub. I believe the project will also contribute positively to China’s Maritime Silk Road initiative and “One Belt, One Road” vision,” said Singapore’s Senior Minister of State for Finance and Transport, Josephine Te0.

More

Not inviting S’pore to Xi’s big OBOR summit shows up the PAP claim that S’pore’s an old and valued friend of China, but the Cosco deal shows that the Chinese will do business that is mutually benefical, not juz when the other side licks China’s ass.
Got that Mad Dog and other anti-S’pore loonies? Mad Dog and other anti-S’porean S’poreans want S’pore to lick China’s ass to get OBOR biz. S’pore already licks US’s ass, but let’s not make ass licking a habit. It’s unhygenic.

HoHoHo: Why Alibaba chose KL not S’pore

In China, Logistics, Malaysia on 26/05/2017 at 4:30 am

Guess we now know why Jack decided to use M’sia, not S’pore, as a logistics base despite Alibaba owning a stake in SingPost. Alibaba knows who Beijing considers a friend.

Earlier this yr,

Alibaba kicked off its grand plan for global trade without frontiers with a bilateral deal designed to ease the passage of goods shipped by smaller businesses between China and Malaysia. The pact, established as a public-private partnership in Malaysia’s digital free trade zone, will focus on infrastructure, including a fulfilment centre and co-operation on electronic payments and financing. So far, it is strictly logistics: favourable tariffs are still under discussion.

FT

 

 

One Belt One Rd: PM “not invited”

In China on 17/05/2017 at 4:24 am

I was wrong. PM wasn’t invited to the summit meeting on the above, it seems, going by what Lawrence Wong is quoted as saying. He wasn’t aping Western leaders by declining the invitation and sending ka kiah instead.

When asked why Singapore Prime Minister Lee Hsien Loong did not attend the Belt and Road Forum, which was attended by 29 heads of state and government, including many from South-east Asia, Mr Wong said the invitation was decided by the Chinese.

ST

So reasonable to assume that the Chinese did not invite Prime Minister Lee Hsien Loong.

Dad must be spinning in his coffin. He tot of himself as an old friend of China. How China treats old friends. 

One Belt One Road: S’pore aping the West?

In China, Infrastructure on 15/05/2017 at 2:27 pm

Is S’pore the West’s running dog on the issue of One Belt One Rd?

Let me explain.

Delegates from more than 100 countries, including Putin and 27 heads of state, attended Xi’s recent summit on One Belt One Rd.

Mr Najib’s long-scheduled trip to Beijing next week, following President Xi’s personal invitation to his One Belt One Road summit …

(FT last week)

Myanmar, Cambodia, Laos, Vietnam and Indonesia sent their leaders. Thailand may not have been invited. Why, I don’t know.

But Lawrence Wong represented S’pore. So our PM not invited isit? Why lidatt China?

Or, as is more likely, he was invited, but like many ang moh leaders, declined theinvitations to attend? Why liddat then PM? FT reports “that the largest economies in Asia and the west sent lower-level representatives.”

PM and PAP administration another bunch of amg moh tua kee wankers isit?

Looks like in S’pore, PAP and anti-PAP got plenty of ang moh tua kees. Aping the West is the in-thing among the PAPpists and anti-PAPpists.

And yet S’pore keeps saying it wants S’pore and S’porean to participate in the One Belt One Rd projects. Think China that stupid isit?

Coming here, China’s new tool for social control?

In China, Political governance on 14/05/2017 at 1:54 pm

While our ang moh tua kees are KPKBing about hanging drug mules, detention without trial , LGBT rights and other ang moh preoccupations, they are missing something that will soon come here.

Beijing wants to give every citizen a credit rating for everything.  Citizens’ ratings are to be linked with their identity-card numbers. The rating will be based on behaviour such as spending habits, turnstile violations, filial piety and “assembling to disrupt social order”. These scores can be used to blacklist citizens from loans, jobs and air travel.

It’s experimenting with

a “social-credit system” (see article). It says the idea is to harness digitally stored information to chivvy everyone into behaving more honestly, whether fly-by-night companies or tax- and fine-dodging individuals. … But the government also talks about this as a tool of “social management”: ie, controlling individuals’ behaviour. This is a regime that already tries to police how often people visit their parents. How much further could it go? Citizens’ ratings are to be linked with their identity-card numbers. Many fear that bad scores might result in sanctions, such as being denied a bank loan or permission to buy a railway ticket, even for political reasons. They have reason to worry. The government decreed this year that the system should record such vaguely defined sins as “assembling to disrupt social order”.

Economist

Already about 30 cities are experimenting with this system (Let a hundred flowers bloom?) and providing feed back to Beijing.

I sure that the PAP administration is monitoring developments closely with a view to making this “social-credit system” part of the smart city. programme.

After all the PAP administration has traditions of coercion and paternalism. It feels that it has a right to intrude on citizens’ lives. Even TLCs think they have the right. In the early days of the internet here (circa 2000) SingTel was “testing” customers’ security.

Public resentment has made no difference to Chinese and S’porean attempts to control dissent, Hard Truths say must crack down. 

In China The routine succession of threats any government faces is more likely to lead to oppression than to a free, informed debate or a decision that the state should forsake the digital tools available.

Likewise here.

When “social credit” comes here, it will be a shock to the S’porean apers of the West.

UK education versus East Asian cont’d

In China on 14/05/2017 at 6:54 am

We kept getting told that we got to adopt the Finnish education system by progressives. Here’s why we can’t suka suka import practices from other societies. When a UK school tried Chinese methods using PRC teachers

[A]s early as the second day reports were coming in that the pupils were behaving badly – disengaged with the lessons, chatting and not listening to their teachers.

Chinese teaching methods were on a collision course with teenage British culture and values. Our pupils are used to being able to ask questions of the teacher – they expect their views to be considered with respect.

Furthermore, British pupils expect to have variety in their learning. They are not used to being incarcerated in a large group and in the same classroom studying a very narrow curriculum.

http://www.bbc.com/news/magazine-33735517

But after some tweaks and

Perhaps as a result of the amount of time spent together, teacher-pupil relationships got better and some pupils began to express a preference for the Chinese style.

They liked having to copy “stuff” from the board as they thought this would help them remember it. Some more able pupils also liked the lecture style of the Chinese classroom.

When S’poreans helped Chinese boycott US goods

In China on 07/05/2017 at 6:06 am

1905 Worldwide boycott of US products by Chinese merchants in opposition to discriminatory laws in the US. Action was taken by Chinese communities from Shanghai to Singapore and San Francisco

(FT)

In 1907, the US made it more difficult for everyone (not just Chinese) to immigrate to the US.

So in a way the boycott worked.

Forest City submerged/ Singkies in Johor drowning

In China, Malaysia, Property on 06/04/2017 at 10:51 am

Yesterday, the South China Morning Post reported that the Country Garden, the Hong Kong-listed developer behind Forest City, would refund payments on its Johor Forest City project to mainland Chinese buyers hit by a crackdown on capital controls.

Zhu Jianmin, vice-president of the Chinese developer told that investors who had made down payments but were now unable to make further payments could cancel their transactions without paying a forfeit fee. The Hong Kong-listed developer stopped sales of the Malaysian project in China amid tightening capital controls, imposed as Beijing seeks to curb outflows and limit downward pressure on the renminbi.

This 2016 article https://www.bloomberg.com/news/features/2016-11-21/-100-billion-chinese-made-city-near-singapore-scares-the-hell-out-of-everybody tells how hard Forest City was being sold to the PRCs.

For those Singkies investing in Johor and M’sia good luck:

“I am very concerned because the market is joined at the hip, if Johor goes down, the rest of Malaysia would follow,” said Shanker, at Axis-REIT Managers, who estimates that about half the units in Iskandar may remain empty. “If the developers stop building today, I think it would take 10 years for the condos to fill up the current supply. But they won’t stop.”

M’sian defence policy sounds like a bad joke

In China, Malaysia on 22/03/2017 at 9:54 am

Malaysia is buying naval vessels from China in order to better defend its islands in the South China Sea from China?

Malaysia is gunning for a revamp of its ageing naval fleet, as countries in the region prepare to face threats from the influx of Islamic State (IS) militants fleeing Mosul, and from rising tensions in the South China Sea.

Malaysia’s navy aims to replace all 50 vessels in its ageing fleet as the country cut its total defence budget by 12.7 per cent to RM15.1 billion (S$4.76 billion) this year.

That will be led by the procurement of four littoral mission ships (LMS) built in collaboration with China.

“The LMS are designed for many aspects of maritime security such as dealing with cross-border crime, piracy, anti-terrorism, and search and rescue operations,” Malaysian navy chief Admiral Ahmad Kamarulzaman Ahmad Badaruddin …

“These ships would be very capable of dealing with the threat posed by [IS] and other maritime security concerns,” …

Defence spending in the Asia-Pacific region is expected to hit US$250 billion (S$349.2 billion) from 2016-20, IHS Jane’s Defence Weekly said in December, and Malaysia intends to improve on its capabilities alongside other states in the hotly contested South China Sea even as its defence budget narrows.

Malaysia is expected to formalise the LMS deal with China at the Langkawi International Maritime and Aerospace Exhibition (LIMA) this week to build four LMS and acquire the technology to build more of the ships at home.

Today

Not afraid that the Chinese will embed malware to cause problems when RMN ships attack Chinese vassals?

M’sia boleh. So trusting.

Time for Super M to make a loud noise.

Eat yr heart out PAP ministers and MPs

In China on 04/03/2017 at 2:58 pm

The really rich

Chinese Lawmakers’ Wallets Give Sweden’s G.D.P. a Run for Its Money

The combined fortune of the wealthiest members of China’s Parliament, or the National People’s Congress, and its advisory body amounts to $500 billion.

NYT Dealbook