PRC Economy - New Reflections : April 20 2015

panduranghari · Post by **panduranghari** » 06 Nov 2015 16:56

I had a thought. China like Japan before drove its own economy based on manufacturing for outsiders. They essentially aspired for standards which were already set by the west and then try to get better at them. Japan have big manufacturers whose names can roll of our tongues. China might get there too. But there is no service sector name from either China or Japan. India might be poor and we have lost a great deal by the mediocrity that recent congress governments promoted. But when Air India was formed, it was still the airline standard most of the world aspired for. We still have the Taj Mahal Chain of hotels. We have a few service sector performers and we will potentially get many more as our internal economy is already geared towards value addition in the service sector. PM policies will improve the manufacturing in due course. China will find it tough to transition from manufacturing to service sector. Japanese could not do it. And they still cant answer why they could not.

Singha · Post by **Singha** » 06 Nov 2015 19:53

NDTV

A state-owned Chinese company said Friday it plans to pour nearly $15 billion (roughly Rs. 98,650 crores) into a giant memory chip factory, as Beijing seeks to create homegrown semiconductor champions to reduce reliance on foreign technology.

Tongfang Guoxin Electronics Co. aims to invest CNY 93.8 billion (roughly Rs. 97,334 crores) in the plant, it said in a filing with the Shenzhen stock exchange.

Tongfang Guoxin is controlled by Tsinghua Holdings Co., the commercial arm of Tsinghua University in Beijing, and ultimately China's education ministry.

China is regularly accused of cyberspying by the West but says it is a victim of hacking, and it has been encouraging research and development of homegrown semiconductor technologies as part of its "national information security strategy".

China needed to overcome "long-time restrictions imposed by the United States, Japan and Europe" over semiconductor materials and equipment, the ministry of industry and information technology said in a statement in June.

In the stock exchange filing, Tongfang Guoxin said: "China will only be able to effectively guarantee its information security by making its own... integrated circuits."

The company will raise up to CNY 80 billion by selling new shares to eight companies and employees, it said, in what could be one of the world's biggest private placement deals.

Six of the eight corporate buyers in the placement are themselves affiliates of Tsinghua Holdings, according to the statement.

Most of the proceeds will go towards the new plant which will take two years to go into trial operations while 25 percent will be used to acquire firms in the semiconductor industry, it added.

Austin · Post by **Austin** » 10 Nov 2015 15:04

Beijing allows free conversion between yuan & Swiss franc

ArmenT · Post by **ArmenT** » 12 Nov 2015 13:48

Baidu data research reveals China's ghost cities.
Interesting approach by the researchers here. They used location info from the users' phones and cross referenced it with mapping and building data, to find the areas with heavy construction activity, but lower population.

The Chinese Ministry of Housing and Urban Rural Development defines an urban region as an area where 1 sq.km houses over 10,000 people. A ghost city, according to Baidu, only houses half of this figure.

The Baidu Big Data team discovered 50 ghost cities by employing this method, although only 20 of these were revealed in the report to avoid potential harm to the real estate market in these areas.

Lead researcher, Guanghua Chi hopes that the study will help the Chinese government to improve city planning processes in the future, as well as supporting individuals thinking about moving to the areas.

Suraj · Post by **Suraj** » 13 Nov 2015 12:34

China's Troubled Credit Swells to Sweden-Sized $628 Billion

Chinese banks’ troubled loans swelled to almost 4 trillion yuan ($628 billion) by the end of September, more than the gross domestic product of Sweden, according to figures released by the industry regulator.

Banks’ profit growth slumped to 2 percent in the first nine months from 13 percent a year earlier, according to data released on Thursday night by the China Banking Regulatory Commission.

The numbers come as a debt crisis at China Shanshui Cement Group Ltd. prompts lenders including China Construction Bank Corp. and China Merchants Bank Co. to demand immediate repayments and as weakness in October credit growth shows the risk of a deeper economic slowdown.

While the official data shows non-performing loans at 1.59 percent of outstanding credit, or 1.2 trillion yuan, that rises to 5.4 percent, or 3.99 trillion yuan, if “special mention” loans, where repayment is at risk, are also included.

The amount of bad debt piling up in China is at the center of a debate about whether the country will continue as a locomotive of global growth or sink into decades of stagnation like Japan after its credit bubble burst.

subhamoy.das · Post by **subhamoy.das** » 13 Nov 2015 21:47

panduranghari wrote:I had a thought. China like Japan before drove its own economy based on manufacturing for outsiders. They essentially aspired for standards which were already set by the west and then try to get better at them. Japan have big manufacturers whose names can roll of our tongues. China might get there too. But there is no service sector name from either China or Japan. India might be poor and we have lost a great deal by the mediocrity that recent congress governments promoted. But when Air India was formed, it was still the airline standard most of the world aspired for. We still have the Taj Mahal Chain of hotels. We have a few service sector performers and we will potentially get many more as our internal economy is already geared towards value addition in the service sector. PM policies will improve the manufacturing in due course. China will find it tough to transition from manufacturing to service sector. Japanese could not do it. And they still cant answer why they could not.

Oriental culture cannot deal with making in-tangible things. They must produce tangible things and hence the excellence in manufacturing only. This is what my ex-bosses, who were chinese and japanese, told me several years ago. Having said that Japan has 73% of is economy in service sector. Also, China, Japan and India , are neck to neck when it comes to service export.

Austin · Post by **Austin** » 14 Nov 2015 22:34

China's yuan takes leap toward joining IMF currency basket

TSJones · Post by **TSJones** » 16 Nov 2015 12:48

.....some rather uncertain news......

http://blogs.barrons.com/asiastocks/201 ... s&ru=yahoo

“Given the potential damage to the PBoC’s and RMB’s reputation, economic growth and long-term financial system stability, we think it unlikely that the government has the resolve to keep buying if heavy selling pressure in the A-share market resumes at certain point,” wrote Cui. Last Friday after the market close, China’s two stock exchanges doubled their margin requirements to 100%. Beijing certainly does not want another multi-billion dollar bailout for liquidity-inspired bull run.

Liu · Post by **Liu** » 17 Nov 2015 07:43

well, one CHinese wrote one article, comparing the standard of living in different countries ,with per capita auto sale, instead of per capita GDP.

the conclusion is quite amazing...
1. Generally speaking, per capita auto sale is corelated to per capita GDP.
the higher per capita GDP is , the more per capita auto sale is .

2. China is a exception, its per capita auto sale is more than many countries with higher per capita GDP( Poland, Turkey, Greece, Mexico,Romania..etc), because RMB is serioulsy undervalued.

3. USA, German.Japan are the Tier1 countries , they are "real high-income countries", their per capital auto sale is 2+ times of CHinese.

4, Italy and Spain is the tier2 countries. their per capita auto sale is more than CHinese one.

5. poland, Czech, Brazil ,Portugal and CHina are Tier 3 Countries. their per capita auto sale is in the same league.

6. Turky,Mexico are Tier 4 countries. their per capita auto sale is only 50% or so of Chinese.

7. Romania is the poorest one, its per capita auto sale in only 25% of CHinese one.

8. the GDP data of Greece is cooked and fake!

-------------------------------------------------------------------------------------------------
1. China VS Brazil
in 2014,1.36 billion CHinese bought 23.5 M autos while 200M Brazilian bought 3,5 M autos.
the per capita auto sale in CHina is almost equal to that in Brazil,while CHina's per capita GDP (7500 USD) is only 2/3 of Brazil per capita GDP(11600 USD)...
it might prove that RMB is serioulsy undervalued ,and suggest that ordianary Brazlian's real life standard might be almost equal to ordiarny CHinese.

2. China VS Mexico
in 2014,1.36 billion CHinese bought 23.5 M autos while 120M mexican bought 1.1 M autos.
Chinese per capita auto sale is almost 2 times of Mexican's while CHina's per capita GDP(7500) is lower than Mexican per capita GDP(10700 USD)...
it might prove that RMB is serioulsy undervalued ,and suggest that odrdianry Mexican's real life standard is lower than ordinary CHinese.

3. China VS Turky
in 2014,1.36 billion CHinese bought 23.5 M autos while 77M turks bought 0.77 M autos.
Chinese per capita auto sale is almost 2 times of Turkey,while CHina's per capita GDP( 7500 USD ) is less than Turks' per capita GDP(10300 USD.)..
it might prove that RMB is serioulsy undervalued ,and suggest that odrdianry Turks' real life standard might be lower than ordinary CHinese.

4. China VS Poland
in 2014,1.36 billion CHinese bought 23.5 M autos while 39M Poles bought 0.32 M autos.
Chinese per capita auto sale is almost 2 times of Poland,while CHina's per capita GDP(7500 USD) is only 50% of Poland(14300 USD)...
it might prove that RMB is serioulsy undervalued ,and suggest that odrdianry Poland' real life standard might be lower than ordinary CHinese.

5. China VS Romania
in 2014,1.36 billion CHinese bought 23.5 M autos while 21M turks bought 0.1 M autos.
CHinese per capita auto sale is almost 4 times of Romania,while CHina's per capita GDP(7500USD) is less than Romanian one(10000 USD)...
it might prove that RMB is serioulsy undervalued ,and suggest that odrdianry Chinese' real life standard might be much higher than ordinary Romanian.

6. China VS The Czech republic
in 2014,1.36 billion CHinese bought 23.5 M autos while 11M Czechs bought 0.2 M autos.
Chinese per capita auto sale is equal to the Czech Republic,while CHina's per capita GDP( 7500 USD) is only 40% of Czech one ( 19500 USD)...
it might prove that RMB is serioulsy undervalued ,and suggest that odrdianry Chinese' real life standard might be close to ordinary Czech.

then ,let's compare China with PIGS
7. China VS Portugal
in 2014,1.36 billion CHinese bought 23.5 M autos while 10M Portuguese bought 0.17 M autos.
CHinese per capita auto sale is almost equal to protugal,while CHina's per capita GDP (7500 USD) is only 1/3 of Portuguese one (20000 USD)...
it might prove that RMB is serioulsy undervalued ,and suggest that odrdianry Chinese' real life standard might be close to ordinary Portuguese.

8. China VS Italy
in 2014,1.36 billion CHinese bought 23.5 M autos while 60M Italian bought 1.5 M autos.
Italian per capita auto sale is 1.5 times of Chinese,while Italian per capita GDP(35500USD) is 4 times of CHinese one(7500USD)
it might prove that RMB is serioulsy undervalued again ,while prove that odrdianry Chinese' real life standard is indeed lower than ordinary italian.

9. China VS Greece
in 2014,1.36 billion CHinese bought 23.5 M autos while 11M Greeks bought only 0.08 M autos.
Greek's per capita auto sale is only 50% of Chinese ,while Greek's per capita GDP(22300USD) is 3 times of Chinese one(7500USD).
it might prove that RMB is serioulsy undervalued again ,while prove that odrdianry Greek' real life standard might be indeed lower than ordinary Chinese.
it proves how cooked and unreliable Greek's GDP is!

10. China VS Spain
in 2014,1.36 billion CHinese bought 23.5 M autos while 47M Spainian bought only 0.99 M autos.
Chinese per capita auto sale is just a bit less than Spain ,while Spain's per capita GDP(29200SD) is almost 4 times of Chinese one(7500USD).
it might prove that RMB is serioulsy undervalued again ,while prove that odrdianry Spainian' real life standard might be just a bit higher than ordinary Chinese.

OK, now ,let compare china with the most developed countries

11. CHina VS Japan
in 2014,1.36 billion CHinese bought 23.5 M autos while 127M Japanese bought 5.5 M autos.
Japanese per capita auto sale is 2 times of Chinese ,while Japanese per capita GDP(36300USD) is almost 4 times of Chinese one(7500USD).
it might prove that RMB is serioulsy undervalued again ,while prove that odrdianry Chinese' real life standard is still much lower than ordinary Japanese.

12. CHina VS German
in 2014,1.36 billion CHinese bought 23.5 M autos while 81M Japanese bought 3.3 M autos.
Germany per capita auto sale is 2 times more of Chinese ,while Germany per capita GDP(41500USD) is almost 5 times of Chinese one(7500USD).
it might prove that RMB is serioulsy undervalued again ,while prove that odrdianry Chinese real life standard is still much lower than ordinary Germany.

13. CHina VS USA
in 2014,1.36 billion CHinese bought 23.5 M autos while 300M Yankees bought 17.5 M autos.
Yankee's per capita auto sale is 3 times of Chinese ,while yankee's per capita GDP(50000USD) is almost 6 times of Chinese one(7500USD).
it might prove that RMB is serioulsy undervalued again ,while prove that odrdianry Chinese real life standard is still much lower than ordinary Yankee's.

Austin · Post by **Austin** » 21 Nov 2015 09:52

Bloomberg

China Has a $1.2 Trillion Ponzi Finance Problem

Suraj · Post by **Suraj** » 26 Nov 2015 05:49

Lies, damned lies and Shanghai statistics:
China's biggest brokerage overstated derivatives business by $166 billion

As errors go, it's a big one.

Citic Securities, the biggest financial brokerage in China, overstated its derivative business by $166bn (£110bn) from April to September, according to a BBC report that cites figures from the Securities Association of China.

Citic blamed the error on a "system upgrade" and said it has been corrected.

The error occurred in data for Citic's equity swaps business, which is closer to $6.2 billion in size, according to the report.

Investors shrugged off the news, and Citic shares fell less than 1%.

ArmenT · Post by **ArmenT** » 28 Nov 2015 08:44

Hold on to your hats folks. Looks like interesting times ahead.

First we have this news:
China Calm Shattered as Brokerage Probe Sparks Selloff in Stocks

China’s stocks tumbled the most since the depths of a $5 trillion plunge in August as some of the nation’s largest brokerages disclosed regulatory probes, industrial profits fell and two more companies said they’re struggling to repay bonds.
The Shanghai Composite Index sank 5.5 percent, with a gauge of volatility surging from the lowest level since March. Citic Securities Co. and Guosen Securities Co. plunged by the daily limit in Shanghai after saying they were under investigation for alleged rule violations. Haitong Securities Co., whose shares were suspended from trading, is also being probed. Industrial profits slid 4.6 percent last month, data showed Friday, compared with a 0.1 percent drop in September.

and then followed by this news:
China Stock Bulls Hit Breaking Point as State Dials Back Support

For three weeks, China’s stock investors have kept their cool as the government dialed back an unprecedented campaign to prop up share prices. On Friday, they suddenly decided to head for the exits.
While the Shanghai Composite Index had barely flinched since Nov. 6 as authorities lifted a freeze on initial public offerings, raised margin requirements and scrapped an order for securities firms to hold net-long positions, news of a widening regulatory probe into the brokerage industry sparked a 5.5 percent tumble on Friday.

and it is affecting the markets elsewhere as well:
FTSE 100 pressed lower after China market rout, but posts weekly rise

Miners are sensitive to developments in China as the country is a major importer of metals.

Anglo American PLC AAL, -8.18% tumbled 8.2% and BHP Billiton PLC BLT, -3.07% dropped 3.1%.

The sector has “been in retreat for almost the whole of 2015,” said Beauchamp “but fresh lows were seen today in the likes of Anglo American and BHP Billiton, as expectations of further cuts in demand and a hit to dividend payments caus[ing] more investors to abandon ship.”

Miners are sensitive to developments in China as the country is a major importer of metals.

Precious metal miner Fresnillo PLC FRES, -4.54% fell 4.5%, copper producer Antofagasta PLC ANTO, -4.02% ended 4% lower, and 4.2% was lopped off the value of Randgold Resources Ltd. RRS, -4.29% shares.

Rio Tinto PLC RIO, -3.17% RIO, -1.66% gave up 3.1%. On Friday, the resources company said it’s approved a $1.9 billion bauxite development in northeastern Australia.

Shares of HSBC PLC HSBA, -0.94% and Standard Chartered PLC STAN, -1.26% , banks with considerable exposure to China, were shoved down 0.9% and 1.3%, respectively.

A_Gupta · Post by **A_Gupta** » 01 Dec 2015 21:05

Cautious opinion on the end of Chinese super-growth:
http://equitablegrowth.org/chinas-marke ... rs-to-run/

VinodTK · Post by **VinodTK** » 07 Dec 2015 17:56

China's capital outflows set to hit record: Expert

The constant stream of capital outflows from China that have bedeviled global financial markets look set to reach a record in November, according to estimates from Capital Economics.

Julian Evans-Pritchard, China economist at the Singapore office of Capital Economics, has estimated that net capital outflows totaled $113 billion last month, accelerating from $37 billion in October.

But getting an accurate picture of how much money is actually fleeing China is somewhat tricky.

Data released Monday showed China's foreign exchange reserves fell by $87.2 billion in November to $3.44 trillion. Evans-Pritchard's calculations suggest that fluctuations in exchange rates accounted for $30 billion of that reduction, leaving $57 billion in foreign exchange sales by the central bank.

Combining the foreign exchange sales with Capital Economics' trade surplus estimate of around $55 billion for November (official data are out Tuesday) leaves net capital outflows at $113 billion.

It is worth noting that these estimates can vary. Capital Economics reckons that net capital outflows stood at $86.3 billion in August, the month when China rocked financial markets by devaluing the yuan. In contrast, the U.S. Treasury believes capital outflows were closer to $200 billion during the month.

Despite the differences, observers note that the outflows reflect expectations for the yuan to weaken further as China's economy slows. Yuan traded offshore is currently at its weakest level against the more tightly controlled onshore counterpart, suggesting traders expect further declines.

"A rise in offshore interest rates due to the increased likelihood of a December Fed rate hike will also have added to outflow pressures," said Evans-Pritchard.

The inclusion of the yuan as a reserve currency in the International Monetary Fund's (IMF) Special Drawing Rights basket last week represented a nod from the IMF that Beijing's reforms were moving in the right direction.

But a disappointing result from the official manufacturing Purchasing Managers Index (PMI), a measure of factory activity, for November sent investor confidence tumbling once again.

archan · Post by **archan** » 11 Dec 2015 10:16

Guo Guangchang, 'China's Warren Buffett', goes missing amid corruption crackdown
Apparently he's not the first. You just "disappear"!

At 48, Guo is one of China’s most powerful tycoons. This year’s Hurun rich list named him as the country’s 17th richest person with an estimated wealth of 50bn yuan ($7.8bn)

The guy's Weibo posts have also been emptied. Such is the degree of state control.

ArmenT · Post by **ArmenT** » 12 Dec 2015 05:08

^^^
BBC reports that his company has confirmed that he's detained by the police because of an investigation. Apparently, he's not the target of the investigation, but is being questioned by the authorities to get his co-operation.
Chinese tycoon Guo Guangchang detained by police

zengerl · Post by **zengerl** » 15 Dec 2015 05:42

The author might be lucky to give a successful prediction this time, but he still does not know China, at all. Many "china experts" in US and Europe, they don't know China.

A_Gupta wrote:Cautious opinion on the end of Chinese super-growth:
http://equitablegrowth.org/chinas-marke ... rs-to-run/

zengerl · Post by **zengerl** » 15 Dec 2015 05:47

They are no more than fortune tellers, casting curses on persons they don't like :" I see bad omens", with the subtext:"that is all because you don't respect my authorities and I don't like you".

zengerl wrote:The author might be lucky to give a successful prediction this time, but he still does not know China, at all. Many "china experts" in US and Europe, they don't know China.

A_Gupta wrote:Cautious opinion on the end of Chinese super-growth:
http://equitablegrowth.org/chinas-marke ... rs-to-run/

sudarshan · Post by **sudarshan** » 15 Dec 2015 06:56

zengerl wrote:They are no more than fortune tellers, casting curses on persons they don't like :" I see bad omens", with the subtext:"that is all because you don't respect my authorities and I don't like you".

And this is different from the Communist Party because...? The CPC is more like "fortune maker" than "fortune teller," but they still cast curses on persons they don't like. "I see bad people," with the subtext: "you will disappear, that is all because you don't respect my authorities (sic) and I don't like you."

Just like in the South Park episode.... "Wespect my autharitaay...."

zengerl · Post by **zengerl** » 15 Dec 2015 11:03

Well, that is not the case in China, it might be true in other countries, such as US, where the police deal with people (especially African American) they don't like with shooting.

sudarshan wrote:
zengerl wrote:They are no more than fortune tellers, casting curses on persons they don't like :" I see bad omens", with the subtext:"that is all because you don't respect my authorities and I don't like you".
And this is different from the Communist Party because...? The CPC is more like "fortune maker" than "fortune teller," but they still cast curses on persons they don't like. "I see bad people," with the subtext: "you will disappear, that is all because you don't respect my authorities (sic) and I don't like you."

Just like in the South Park episode.... "Wespect my autharitaay...."

A_Gupta · Post by **A_Gupta** » 15 Dec 2015 21:46

Increase in labor unrest in China:
http://blogs.wsj.com/briefly/2015/12/14 ... -in-china/

zengerl · Post by **zengerl** » 16 Dec 2015 05:12

Who said labor in China do not have the right to protest?

A_Gupta wrote:Increase in labor unrest in China:
http://blogs.wsj.com/briefly/2015/12/14 ... -in-china/

ManjaM · Post by **ManjaM** » 16 Dec 2015 05:16

zengerl, Having the right to protest is different from protesting.

ArmenT · Post by **ArmenT** » 16 Dec 2015 10:42

From marketplace.org:
Why can't China make a good ballpoint pen?

It seemed like an innocuous question: “Why can’t China make a good ballpoint pen?” But it carried a much deeper meaning thanks to the man who asked it: Chinese Premier Li Keqiang. At a seminar in Beijing earlier this month, Li complained to those gathered that Chinese pens felt “rough” compared to pens made in Japan, Germany, and Switzerland. Li said China’s manufacturers at the lowest levels should focus on innovating their technology.
...
...

Interesting read.

Odd thing was when I was a schoolboy in India, one of the things that the Chinese were known for, was a quality fountain pen called the Hero pen. It was a clone of a Parker and wrote real smoothly.

zengerl · Post by **zengerl** » 16 Dec 2015 11:04

So many unrest labors are exercising their rights. Everyday, there are workers marching in Chinese streets for their rights!

In China, people may even surround city hall and don't let the mayor go till he solve the problems.

I hope more Indians know Chinese, so that they can go to Chinese forum to see how "wild" the articles can be against the government, some of them even not tolerated in US.

ManjaM wrote:zengerl, Having the right to protest is different from protesting.

zengerl · Post by **zengerl** » 16 Dec 2015 11:06

To be honest, too many products of inferior qualities were and are made in China; this has always been a huge problem.

ArmenT wrote:From marketplace.org:
Why can't China make a good ballpoint pen?
It seemed like an innocuous question: “Why can’t China make a good ballpoint pen?” But it carried a much deeper meaning thanks to the man who asked it: Chinese Premier Li Keqiang. At a seminar in Beijing earlier this month, Li complained to those gathered that Chinese pens felt “rough” compared to pens made in Japan, Germany, and Switzerland. Li said China’s manufacturers at the lowest levels should focus on innovating their technology.
...
...
Interesting read.

Odd thing was when I was a schoolboy in India, one of the things that the Chinese were known for, was a quality fountain pen called the Hero pen. It was a clone of a Parker and wrote real smoothly.

zengerl · Post by **zengerl** » 16 Dec 2015 11:09

And pollution has become one of the most serious problem in China. Friendly reminder: air in New Delhi is even worse than that in Beijing.

hanumadu · Post by **hanumadu** » 28 Dec 2015 18:14

China's $1 Trillion Nuclear Plan

China, still the world's largest consumer of mineral and energy commodities despite lagging economic growth, appears to be have one foot in the past and another in the future as it embarks on an ambitious plan to install nuclear power stations while at the same time committing to over 100 coal-fired power plants that may never burn a single tonne of the widely-condemned fossil fuel.

China can do it because of the 600 billion dollar trade surplus it has. The rest of the world is subsidizing China. India has the capacity to upset their apple cart together with other south east asian countries.

TSJones · Post by **TSJones** » 28 Dec 2015 18:56

hanumadu wrote:China's $1 Trillion Nuclear Plan
China, still the world's largest consumer of mineral and energy commodities despite lagging economic growth, appears to be have one foot in the past and another in the future as it embarks on an ambitious plan to install nuclear power stations while at the same time committing to over 100 coal-fired power plants that may never burn a single tonne of the widely-condemned fossil fuel.
China can do it because of the 600 billion dollar trade surplus it has. The rest of the world is subsidizing China. India has the capacity to upset their apple cart together with other south east asian countries.

Well if that is so then India had better get busy......

http://www.thehindu.com/news/national/i ... 201545.ece

India-China trade deficit swells 34% to $48 billion

nandakumar · Post by **nandakumar** » 28 Dec 2015 20:41

ArmenT wrote:From marketplace.org:
Why can't China make a good ballpoint pen?
It seemed like an innocuous question: “Why can’t China make a good ballpoint pen?” But it carried a much deeper meaning thanks to the man who asked it: Chinese Premier Li Keqiang. At a seminar in Beijing earlier this month, Li complained to those gathered that Chinese pens felt “rough” compared to pens made in Japan, Germany, and Switzerland. Li said China’s manufacturers at the lowest levels should focus on innovating their technology.
...
...
Interesting read.

Odd thing was when I was a schoolboy in India, one of the things that the Chinese were known for, was a quality fountain pen called the Hero pen. It was a clone of a Parker and wrote real smoothly.

They were made in Taiwan. But those were the days they liked to call themselves as China!

kmkraoind · Post by **kmkraoind** » 30 Dec 2015 11:36

China Said to Suspend Foreign Banks' Cross-Border Yuan Business

Whoa, so much for SDR status for Yuan and its free convertibility status/limitations. How can one trust Yuan, at least PRC should have stopped Yuan manipulation for at least 6-12 months after it got SDR status.

China has suspended at least two foreign banks from conducting some cross-border yuan business until late March, according to people with direct knowledge of the matter.

p.s. This image is not from the above bloomberg article, but its from my twitter feed.

NRao · Post by **NRao** » 31 Dec 2015 08:30

Chinese the politicians are quite cheats. They take the best from the rest and force others when it does not work for them. The rest have not learnt from experience. Cheap = greed.

NRao · Post by **NRao** » 31 Dec 2015 08:30

A Chinese Company in India, Stumbling Over a Culture

uncouth.

Karan M · Post by **Karan M** » 01 Jan 2016 08:05

ArmenT wrote: Interesting read.

Odd thing was when I was a schoolboy in India, one of the things that the Chinese were known for, was a quality fountain pen called the Hero pen. It was a clone of a Parker and wrote real smoothly.

[/quote]

Ha!

Imagine my surprise when i first saw a Parker and thought, wow it looks just like a Hero.

Suraj · Post by **Suraj** » 04 Jan 2016 12:28

Chinese stock market starts the new year with a faceplant on the pavement:
Chinese markets halt trading for day after shares plunge 7%, triggering circuit breaker

Chinese stocks plunged Monday, spurring a trading halt for the rest of the session, and leading stock markets in Asia Pacific lower after feeble manufacturing surveys revived concerns over the mainland's economic slowdown.

The Shanghai Composite tumbled 6.85 percent to 3296.66 and the Shenzhen Composite plunged 8.1 percent. The CSI 300 briefly plummeted 7.02 percent; when that index rises or falls 7 percent, a trading halt in China's markets is triggered for the rest of the session.

Hong Kong's Hang Seng index was also down 2.48 percent at 21,370.62. Stocks in Australia, Japan, South Korea and India also fell. Energy plays, however, saw some gains after oil prices bounced during Asian trading hours.

Austin · Post by **Austin** » 07 Jan 2016 16:13

China spent $500 billion to prop up the yuan last year

http://money.cnn.com/2016/01/07/investi ... -stack-dom

TSJones · Post by **TSJones** » 07 Jan 2016 19:09

looks like China is on the verge of financial collapse.....

everybody wants their money out and their circuit breaker keeps kicking in....

.....and who will the Chinese blame?.......America of course......their Han nationalism won't let them blame themselves......

look for massive devaluations of the renminbi.......

TSJones · Post by **TSJones** » 07 Jan 2016 19:28

all these years of pondering the massive Chinese holdings of US treasury debt as a strategic threat to the US and now.....

the Chinese will have to use a lot of it to save their own a$$es,,,,, irony to the max.....

it's a good thing the Chinese started to diversify their foreign reserves so that it all won't fall on US treasuries....

Austin · Post by **Austin** » 07 Jan 2016 20:18

Wouldnt Renminbi devaluation would be a case of begger thy neighbour and set off competitive devaluation by its neighbours ?

TSJones · Post by **TSJones** » 07 Jan 2016 20:37

Austin wrote:Wouldnt Renminbi devaluation would be a case of begger thy neighbour and set off competitive devaluation by its neighbours ?

......in order to fight trade imbalances, yes. although they can't carry it too far or it will set off their own economies.