Bamboo Innovator Daily Insight: 30 Jan (Fri) – 5 Leadership Lessons From Baseball Hall of Famer Ernie Banks

Life

  • 5 Leadership Lessons From Baseball Hall of Famer Ernie Banks: Forbes
  • Why You Should Strive For Mastery Instead Of Success: BI, YouTube
  • Muddy Waters’ Carson Block: How to Avoid Frauds in Investments, and Personnel Hires: NYT
  • 4 Ways To Break Free From Being ‘Too Busy': Forbes
  • The Christian Example for Modernizing Islam: Catholics and Protestants once killed in the name of God, but eventually liberal ideas took hold.: WSJ
  • Angels of change invest in better world; “Rather than buy a yacht, it might be more fun to see if you can change the world with young people who want to have a go.”: FT
  • This Tree Beautifully Reveals The Relationships Between Languages: BI
  • BILL GATES: Here’s What I Would’ve Done If Microsoft Didn’t Work Out: BI
  • Nathan Tinkler treats me ‘like a little bank’, says Gerry Harvey: TheAge
  • The art of printmaking: Largely ignored in the country, printmaking has a rich history and a long tradition of experimentation: Forbes
  • Investing in next generation of ideas for quality decision making: Forbes
  • How Do We Increase Empathy?: NYT
  • Why You Should Tell Your Children How Much You Make: NYT
  • Forbes 50 RIchest Australians: Forbes

Books

  • The Opposite of Spoiled: Raising Kids Who Are Grounded, Generous, and Smart About Money: Amazon

Investing Process

  • Penny Stock Pawnbroker Had a Clever Trick to Get Paid: Bloomberg
  • 62-Bagger and Counting: An E-commerce Business That Actually Makes MONEY But Almost Didn’t: Fundoo
  • Tocqueville’s Sicart: The Unintended Consequences of “Sophisticated” Performance Measurement: Tocqueville
  • The Secret to Getting a 99,766 Percent Return in the Art Market; Hint: Discover a hidden masterpiece: Bloomberg

Macro

  • Hasenstab Sees $3 Billion Vanish in Ukraine as One Big Bet Sours: Bloomberg
  • FASB Nearing Decision on Delaying Revenue Rule; Companies are telling FASB that they need more time to redesign their practices and systems to implement the revenue recognition standard. CFO
  • How a Two-Tier Economy Is Reshaping the U.S. Marketplace; The advance of wealthy households, while middle- and lower-income Americans struggle, is reshaping markets for everything from housing to clothing to beer. WSJ
  • Why Are so Few Companies Growing?: WSJ

Greater China

  • China: Overborrowed and overbuilt; Its economy has become the world’s largest but a credit-fuelled construction binge threatens growth: FT
  • The Twilight of China’s Communist Party; President Xi Jinping may be gathering unprecedented power in China-but perhaps it is more the flaring of a candle before it gutters.: WSJ
  • China moves to limit coal glut; China has slapped a moratorium on new coal mines in its eastern regions as it battles an enormous supply glut. FT
  • The pros and cons of China’s irrational exuberance; Creating a stock bubble to prevent a run on the yuan and deflate its credit bubble may result in China exacerbating the latter by stealth: SCMP
  • Is SAIC correct in calling Alibaba arrogant?: SCMP
  • Out of steppe: the $28bn plan to modernise Mongolia’s Ulan Bator; Project will seek to move former nomads living in poor areas of the capital out of their traditional tents and into modern flats: FT
  • Beijing stresses ‘One Belt, One Road’ in Taipei: AsiaOne
  • Alibaba’s Growth Spell Wears Off; Clash With Regulators Overshadows Improving Margins; Alibaba Clash Spotlights China Political Risk for Business: WSJ, Bloomberg
  • So Alibaba, How Do You Monetize Mobile, Asks the Bank That Guided Its IPO: Bloomberg
  • China Returning Five Times Hong Kong Makes Investing Choice Easy: Bloomberg
  • Politics, mobile overshadow Alibaba’s fairy-tale run: Reuters
  • Alibaba’s Lesson in Government Relations: NYT

India

  • ‘India is a country obsessed with education': Harvard Dean: Forbes
  • Enterprise in India: Where ‘Angels’ fear to tread; Nine prolific names in the angel investing business talk about three common must-haves in their philosophies: Ideas, people and scalability: Forbes
  • In India, Low Wages Start at the Top; Top official pay at India’s five biggest state-owned banks averages less than $41,000 a year, excludes unofficial payments.: Bloomberg

Japan & Korea

  • Korea’s social mobility waning: KH
  • Korea eyes mandatory microchips for pets: AsiaOne
  • Elderly lose $200m from ‘Ore ore’ (It’s me) scam in which perpetrators swindle elderly victims by pretending to be family members: AsiaOne
  • Amazon breathing down G-Market’s neck: KT
  • Paying for the Privilege of Lending Japan Money: Bloomberg

ASEAN

  • Philippine economy defies Asian slowdown: FT
  • Thai tuna tycoon Dejphon Chansiri buys Sheffield Wednesday: FT
  • Thai govt unfazed for now by looming ‘currency wars': AsiaOne
  • Why Is Singapore Full Of Millionaires? Forbes
  • Ho Ren Hua, Banyan Tree Scion Stays On the Frontline: Forbes
  • Malaysia Short Sellers Target World’s Longest Rally on Oil: Bloomberg
  • Forest City: Healthy foreign investment or blight on Iskandar?: BT
  • A looming deadline to make a $560 million loan repayment is piling pressure on a heavily indebted Malaysian state investment fund and focusing markets’ attention on how it will handle its other, much larger liabilities.: WSJ

Macro

  • The US is still a subprime nation: Quartz
  • Risky loan deals hit post-crisis high: FT
  • The corporate miscreants who keep rock ‘n’ roll excess aloft; It is the ultimate expression of glamour and superhuman freedom: FT
  • Outlook for hedge funds is about to worsen; Hedge Fund Profits Declined 30% Last Year, Citigroup Says: Bloomberg
  • Former Hedge-Fund Managers Hit the Comeback Trail; Michael Karsch started a juice business after he shut down his investment firm in 2013. Now he is plotting a return to the hedge-fund: WSJ
  • Currency Tumult Attracts Big Bets: WSJ
  • Goldman Set to Be Largest Dow Member After Visa Stock Split: Bloomberg

TMT

  • Amazon Prime is becoming a juggernaut: Quartz
  • Apple Pay revives mobile wallet drive and triggers deals: FT
  • Democratising finance: mobile phones revolutionise access; Closer look at how technology has transformed Africa and LatAm: FT
  • It’s all about scale! Have traditional media agencies reached critical MaaS?: Forbes
  • How, and Why, Apple Overtook Microsoft: NYT
  • Amazon makes money; says little about it: Fortune
  • Metadata Can Expose Person’s Identity Even Without Name; New Analytic Formula Identifies People Without Names, Account Numbers: WSJ
  • SAP Looks to Xerox for R&D Inspiration: Bloomberg
  • Clients Can Monitor Legal Bills in Real Time: Bloomberg
  • Bill Gates on dangers of artificial intelligence: ‘I don’t understand why some people are not concerned': WaPo
  • Netflix And Amazon Will Have A Harder Time With Movies Than They Did With TV: Forbes

Energy & Commodities

  • UK micro dairies milk it as price drop hits big producers: FT
  • Cheap Oil Sours Big-Budget Energy Projects; Chevron Nears Goal of Producing More as Market Turn Pushes Payoff Further Out: WSJ
  • Falling Prices Spread Pain Far Across The Oil Patch; Companies Plan to Slash Spending Along With Thousands of Jobs: WSJ

Healthcare

  • Golden triangle of mutual gain that blights the science industry; Low-level corruption is disturbingly common in health and medicine: FT
  • Too Bad Biotechs Can’t Cure Tort Abuse; Patients see startups and hope for a cure. Too many lawyers see them and hope for a payday.: WSJ

Consumer & Others

  • One in five luxury handbags are man bags: Quartz
  • The World’s Largest Soup Maker Isn’t Making Soup Anymore: BI
  • McDonald’s and its challenges worldwide: a market-by-market look: FT
  • ‘Suppliers are fed up with Coles and Woolies': David Shafer on the opportunity behind Kogan Pantry: BRW
  • Sanitarium takes on Weetabix in bet that Brits will want liquid breakfast: BRW
  • Hershey gets a Krave-ing for beef jerky; Chocolate maker in deal to buy the maker of jerky and other high-protein snacks.: Fortune
  • On McDonald’s Menu: CEO With a Fresh Perspective; As a Company Veteran, Incoming Chief Executive Easterbrook Faces Skepticism: WSJ
  • The Lessons McDonald’s Can Learn From Chipotle: Bloomberg

Why You Should Strive For Mastery Instead Of Success

http://www.businessinsider.sg/jennifer-nichols-ted-talk-on-mastery-2015-1/#.VMsZA2iUeCk

Why You Should Strive For Mastery Instead Of Success

RICHARD FELONI STRATEGY  JAN. 30, 2015, 4:02 AM

For her first job, art historian and criticSarah Lewis curated a retrospective of the late painter Elizabeth Murray at the Museum of Modern Art in New York. She was taken aback by how undeveloped Murray’s early work looked and asked the artist what she thought about it. Murray said many of the first works on display had “missed her mark,” and she had even thrown one of the pieces in the trash before a neighbor convinced her to keep it. “In that moment, my view of success and creativity changed,” Lewis says in her TED Talk “Embrace the near win.” “I realized that success is a moment, but what we’re always celebrating is creativity and mastery.” She began to understand this concept more when she sat in on the Columbia University women’s archery team’s practice. She observed how each of the archers spent hours repeatedly missing their targets, making subtle adjustments to their form after every “near win.” Lewis realized that true fulfillment can only be achieved when we pursue mastery, embracing everything deemed a success and failure along the way, rather than dwelling on fleeting moments of victory. “Mastery is not the same as excellence,” she says. “It’s not the same as success, which I see as an event, a moment in time, and a label that the world confers upon you. Mastery is not a commitment to a goal but to a constant pursuit. What gets us to do this, what gets us to forward thrust more is to value the near win.” More valuable than first place is taking second place when gold was in your grasp, Lewis argues. The near win should be something to inspire and not crush us. “It gets us to focus on what, right now, we plan to do to address that mountain in our sights. “We build out of the unfinished idea, even if that idea is our former self. This is the dynamic of mastery. Coming close to what you thought you wanted can help you attain more than you ever dreamed you could,” Lewis says.

Bamboo Innovator Daily Insight: 29 Jan (Thurs) – 15 Successful Entrepreneurs Share The Most Important Lesson They Learned In Their 20

Life

  • 15 Successful Entrepreneurs Share The Most Important Lesson They Learned In Their 20s: BI
  • Such a Stoic: How Seneca became Ancient Rome’s philosopher-fixer. NewYorker
  • This Is Bill Gates’ Biggest Regret In Life: BI
  • This Mental Bias Explains Why Investing Is So Scary: BI
  • Six Essential Productivity Tips For Introverts: Forbes
  • Storytellers find versatile medium in podcasting; The extraordinary success of the program “Serial” has commentators tipping a big year ahead for podcasting. TheAge
  • Laser’s co-inventor, Nobel laureate Charles Townes, dead at 99: Reuters
  • Review: Act Like a Leader, Think Like a Leader by Herminia Ibarra: FT
  • Flight Centre’s Graham Turner and Cofounders Are Flying High: Forbes
  • “The key to financial success isn’t saving, but investing in your own future production.” Cullen Roche: Link
  • What sort of face do you need to have to become a FTSE 100 chief executive?: Telegraph
  • Billionaire Ananda Krishnan in foundation to promote study of Mandarin and English: TheStar
  • Guanxi in China ‘can be a double-edged sword'; a relationship of trust could lead one to overlook fraud or other undeclared issues: BT

Investing Process

  • Why factor investing is flavour of the month; But four-decade run of outperformance may not last: FT
  • A Revelation For Small-Cap Investing Strategies; Yes, Virginia, there is a small-cap premium, but to harvest it in a meaningful way we’ll have to rethink how we invest in these companies. CS
  • A Dozen Things I’ve Learned from Joel Greenblatt about Value Investing: 25iq

Greater China

  • Debt That Once Boosted Its Cities Now Burdens China; Behind Nation’s Debt Load: Rampant Local Borrowing for Roads, Housing, Airports: WSJ
  • Regulator releases damning report on Alibaba over fake, substandard goods on Taobao: SCMP
  • Democratising finance: China’s P2P industry attracts scammers: FT
  • 1001 Fights: Wuxia chivalry took Alibaba’s Jack Ma to the top: WCT
  • Kaisa saga puts focus on investor Sino Life Insurance: SCMP
  • New Rules in China Upset Western Tech Companies: NYT
  • China regulator to inspect stock margin trading at 46 firms: Reuters

India

  • Modi’s Reform Push; India’s leader takes some risks to clear obstacles to growth. WSJ
  • With India Bulls Everywhere, a Rare Look at the Risks: Bloomberg

Japan & Korea

  • 26 Korean firms caught having disguised themselves as SMBs to clinch deals: Maeil
  • The creative economy dilemma in Korea: JA
  • 90 industrial complexes nationwide in Korea house just 1 company: Maeil

ASEAN

  • ‘Zombies’ haunt Vietnam’s trade bonanza bid: Reuters
  • Editorial: First, We Must Teach Indonesia’s Teachers: JG
  • Leaders Say Graduates in Indonesia Don’t Make the Grade: JG
  • Storm Warning For Keppel, Sembcorp Marine; Weak oil prices and tighter spending budgets means investors should be wary of Singapore’s rig builders. Barron’s
  • Singapore bourse hopes Southeast Asia will copy HK-Shanghai stock link: Reuters
  • Philippine Growth Rises for Best Three Years Since Mid-1950s: Bloomberg

Macro

  • Sweden’s Wallenberg family shake up Investor: FT
  • Bonds: Caught in a debt trap; The markets’ verdict on central bank policies is that they are failing on inflation and growth: FT
  • Currencies Hit as Monetary Policies Shift; Central Banks’ Moves Are in Response to Stronger U.S. Dollar, Threat of Deflation: WSJ
  • ‘Fake margin calls': Forex traders furious after losses: TheAge

TMT

  • Lesson Learned: How An Apple Contractor, Taiwan’s second-largest touch panel manufacturer, Went Bankrupt: Forbes
  • Apple’s massive market cap still trails these historical giants: Quartz
  • Samsung’s $100 Million Internet of Things Bet Is Even Crazier Than You Think: FastCo
  • Alibaba given little advance warning of Yahoo split decision: FT
  • The Next Front Of Wearables: Techcrunch
  • How Tim Cook’s Apple conquered the world: Telegraph
  • The Technology that Unmasks Your Hidden Emotions; Using Psychology and Data Mining to Discern Emotions as People Shop, Watch Ads; Breeding Privacy Concerns: WSJ
  • Apple’s World Domination Shows No Sign of Stopping: Bloomberg
  • Samsung’s $100 Million Internet of Things Bet Is Even Crazier Than You Think: FastCo
  • To Buy or Not to Buy: How Increased TV Watching Impacts E-commerce: K@W

Energy & Commodities

  • Big Oil Faces Time of Reckoning; Shell, BP and Others to Report Earnings, Reveal What Role Lower Crude Prices Played On Results: WSJ
  • Consumer-goods firms and advertising: The dangers of cut-price soap; Why the likes of Unilever should think twice before discounting their wares: Economist
  • ‘We have all seen this before': In Calgary, end of the oil boom has yet to sink in: FP
  • Cocoa, Once Hot, Is Facing a Chill; Weaker Economic Prospects in Many Markets, Higher Candy Prices Hit Demand: WSJ

Consumer & Others

  • McDonald’s CEO Steps Down; Move Comes Amid Declining Sales, Menu Changes: WSJ
  • Who’s Driving World Wine Consumption? A new industry report has revealed how much wine is being produced each year—and who’s drinking it. The findings may surprise you. WSJ
  • Why Target’s Big Canadian Expansion Went South: K@W
  • Why It’s So Hard for McDonald’s to Change; “The system” McDonald’s holds dear is what’s holding it back: Bloomberg

Bamboo Innovator Daily Insight: 28 Jan (Wed) – TED Talks: Carol Dweck says you need to adopt a “growth mindset.” Young-ha Kim says you should never abandon your creativity. Kathryn Schulz says you should embrace your regrets. Sarah Lewis says you should strive for mastery, not success.

Life 

  • Carol Dweck says you need to adopt a “growth mindset.” Young-ha Kim says you should never abandon your creativity. Kathryn Schulz says you should embrace your regrets. Sarah Lewis says you should strive for mastery, not success. BI
  • This Might Be The Easiest, Most Effective Way To Relieve Stress And Clear Your Mind: BI
  • A farewell after eight years championing founders; There has been relentless upheaval in almost all industries in my time writing for the FT: FT
  • Why Entrepreneurs Should NOT Buy Homes: LinkedIn
  • Ask These 5 Tough Questions To Turn Around A Struggling Business: BI
  • City Link owner tells of sincere regret at failure: FT
  • How to develop your marketing as your start-up grows: SpotJobs co-founder Lewis Romano: BRW
  • 13 Habits of Exceptionally Likeable People: Forbes
  • Be Honest About Whether Your Product Really Makes A Difference: Techcrunch
  • On-Demand Workers: ‘We Are Not Robots’; Is Technology Liberating or Squeezing the New Class of Freelance Labor? WSJ
  • The do-or-die struggle for growth; The largest corporations rarely sustain strong growth unless they compete in the right places at the right times.: McKinsey

Investing Process

  • Vocation chief Mark Hutchinson ‘should have been axed earlier’ after a damning audit review into the quality and practices of two of its businesses; How hedge funds predicted Vocation’s collapse: TheAge
  • What entails investing in a brave new world: Forbes
  • Warren Buffett Case Study Of Sanborn Map: VW

Greater China

  • Breakneck growth of Hanergy raises questions: FT
  • Loaded Long Johns: What This Central Banker’s Undergarments Have to Do with China’s Economy: WSJ
  • Tencent’s Latest Investment: Food Delivery Service: WSJ
  • Why The Chinese Are Obsessed With Korea Culture: BI
  • Imported dairy threatens Chinese producers via e-commerce: WCT
  • Hong Kong market regulator sees more enforcement actions in 2015; SFC issued 56 per cent more disciplinary and criminal actions against companies and individuals last year than in 2013: SCMP
  • Wheelock Could Follow Li Ka-Shing’s Plan; If Wheelock & Co. was restructured the way that Cheung Kong was, its stock could surge by 30%.: Barron’s
  • JD.com Beefs Up Its Imported Food Business To Compete Against Alibaba: Techcrunch
  • How China’s Draft Rules May Affect Foreign Investors; Proposed Rules Target Structure Known as Variable Interest Entity: WSJ
  • China’s Chip Makers Explained: WSJ
  • A Crackdown on Shadow Banking May Be Needed to Tame China’s Volatile Stocks: Bloomberg
  • China Looks to Prop Up Domestic Chip Makers; Cybersecurity Concerns Give New Impetus to Country’s Effort to Cut Reliance on Foreign Components: WSJ

India

  • How Loney Antony cracked the payments market in India; How ATM industry veteran Loney Antony successfully turned entrepreneur with a disruptive outsourcing model: Forbes
  • Max India to split into three separate listed companies; Success in the life insurance business has led them to demerge the business into three clusters: Forbes
  • As Obama visits, President Pranab Mukherjee slams nation’s failures: Reuters
  • Nations will only succeed if women are successful, Obama tells India: Reuters

Japan & Korea

  • Japan Inc shuns seniority in favour of merit-based pay: FT
  • Struggling Naver renews its mobile shopping platform: KH; JA
  • Gloom envelops Ulsan, industrial heartland of Korea; Jobs are cut and top engineers find greener pastures – in China: JA
  • Korea’s financial regulator said it will open the door for non-financial companies to launch Internet-based banks, paving the way for conglomerates and portal sites such as Samsung and Naver to advance into the business.  KT
  • Samsung Might Be Going Shopping: Bloomberg

ASEAN

  • Singapore’s family-owned firms least ready for succession in S-E Asia: BT
  • Sea change in penthouse infinity pool views: Buyers of SIngapore property see red; “It turned out to be nothing. The pool is not an infinity pool. It’s ugly. There are horrible double-sided windows around it”: AsiaOne
  • Singapore faces challenges in growing talent for its economy; Formal education should be complemented by learning from experience to promote talent growth, and the country can learn from Scandinavian culture in this aspect: CNA
  • Singapore Adds to Global View Low Oil Here to Stay; Surprise Move Sent Singapore Dollar to Lowest Level in Over Four Years: WSJ
  • Catholic priest celebrated mass at the Philippine Stock Exchange; Philippine Stocks Add to a Hot Streak; Emerging Middle Class Hypercharges Growth; a Boost From Oil Prices: WSJ

Macro

  • In DuPont Fight, Activist Investor Picks a Strong Target: NYT
  • Investors Rethink Taking a Leap Into Junk Bin: WSJ
  • How Student Debt Harms the Economy; In 2010-13, the percentage of younger people owning part of a new business dropped to 3.6% from 6.1%. WSJ
  • Hedging Pays Off at Honeywell as Dollar Surge Punishes P&G: Bloomberg
  • “Equities Will Be Devastated” Crispin Odey Warns, Looming Recession Will Be “Remembered For 100 Years”: ZeroHedge
  • Stay-at-Home Small-Caps in Vogue as Dollar Roils Multinationals: Bloomberg

TMT

  • The Biggest Concern With The Apple Watch Has Nothing To Do With The Actual Watch: BI
  • The Apple Watch is coming in April, and Tim Cook says he “can’t live without it”: Quartz
  • Data And Commerce Elope, Birth Unicorns: Techcrunch
  • Nadella’s Charmed First Year as Microsoft CEO Comes to an Abrupt End: WSJ

Energy & Commodities

  • Glut feeling: The oil industry is struggling to cope with lower prices so what would happen if $50 per barrel became the new normal? FT
  • Troubled rare earths producer Lynas shareholders facing wipe-out on poor outlook: TheAge
  • Big Oil Faces Time of Reckoning; Shell, BP and Others to Report Earnings, Reveal What Role Lower Crude Prices Played On Results: WSJ
  • As oil slides, Singapore oilfield service firms struggle to refinance debt: Reuters

Healthcare

  • Scientists ask if Ebola immunizes as well as kills: Reuters

Consumer & Others

  • Growing market for kids’ spas in US raises concerns: AsiaOne

Bamboo Innovator Daily Insight: 27 Jan (Tues) – Munger: Art of Stock Picking; The Secret Sauce of Corporate Leadership: Splitting the CEO and chairman jobs is beside the point. What’s needed is a skeptical No. 2.

Life 

  • The Secret Sauce of Corporate Leadership: Splitting the CEO and chairman jobs is beside the point. What’s needed is a skeptical No. 2.: WSJ
  • What Kind of Leader Do You Want to Be?: HBR
  • Is Your Brand Telling Meaningful Stories? Forbes
  • When to Sell with Facts and Figures, and When to Appeal to Emotions: HBR
  • Former executive shares the secrets to how Disney runs its empire: FastCo

Books

  • The Discomfort Zone: How Leaders Turn Difficult Conversations Into Breakthroughs: Amazon
  • The 15 Commitments of Conscious Leadership: A New Paradigm for Sustainable Success : Amazon
  • Why Motivating People Doesn’t Work . . . and What Does: The New Science of Leading, Energizing, and Engaging: Amazon

Investing Process

  • Munger: Art of Stock Picking: G&D
  • Small can be beautiful but quality is key; Avoid the urge to punt the riskiest small-cap stocks: FT

Greater China

  • China’s financing curbs raise credit crunch fears: SCMP
  • China Property Agony Deepens as Trust-Loan Lifelines Cut: Bloomberg
  • China Private Bond Faces Stress as LGFV Says No Pledge: Bloomberg
  • ICYMI, China’s credit buildup was pretty damn fast: FT
  • Death Threats and Dawn Raids: Welcome to China’s Anti-Graft Drive: Bloomberg
  • What’s behind Li Ka-shing’s corporate restructuring?: WCT
  • Dagong’s internet finance blacklist stirs up the industry: WCT
  • Overseas Hopes Lift China Manufacturing Family Into Billionaire Ranks: Forbes
  • Chinese tycoon sues local governments for late payment; Action over contracts highlights risks to financial system: FT
  • Shanghai first major Chinese region to ditch GDP growth target: FT
  • China Yuanbang Declines After Chairman Held in Custody Quits: Bloomberg
  • China’s Reform Stalemate: PS
  • China’s Twisted Logic: The People’s Bank of China has taken a different, if not bizarre, view of how global trade and currency markets work amid Europe’s €1 trillion stimulus. Barron’s
  • China’s Other E-Commerce Giant JD.com Follows Its Own Path: NYT
  • Foreign Law Firms Face Pressure in China; Lawyers Compete Not Only With Each Other, but Also 19,000 Chinese Firms: WSJ
  • What’s behind Li Ka-shing’s corporate restructuring?: WCT
  • Dagong’s internet finance blacklist stirs up the industry: WCT
  • Overseas Hopes Lift China Manufacturing Family Into Billionaire Ranks: Forbes
  •  China’s financing curbs raise credit crunch fears: SCMP

India

  • India: The next superpower?: Fortune

Japan & Korea

  • Japanese carmakers risk ceding self-driving car market to rivals: FT
  • Starting South Korea’s New Growth Engines: PS
  • Samsung Blind Faith Makes Cheil Expensive Revamp Bet: Bloomberg

ASEAN

  • Thai Junta Unloading Mountain of Rice Amid World Surplus: Bloomberg
  • The Financial Services Authority (OJK) plans to set a minimum capital requirement for entities to control their financial groups, ensuring sustainability amid risks faced by their subsidiaries. JP
  • Rising Vacancies and Default Auctions Show Singapore Property Is on the Decline: Bloomberg

Macro

  • Owners of Negative-Yield Sovereign Debt Say They’re No Fools: Bloomberg
  • For New Revenue-Recognition Rules, It’s Ready vs. Not: WSJ
  • Asia’s Richest Man Has Seen the Future and It’s in Europe: Bloomberg
  • Crispin Odey Sees Global Slowdown That Will ‘Devastate’ Equities: Bloomberg
  • Will Reverse Factoring Cause the Next Financial Bubble? Reverse factoring can raise the risk profile of supply chains to dangerous levels, and could even cause a systematic financial failure. CFO
  • For Vanguard, these are the best of times: Vanguard Group surpassed State Street Global Advisors as the second-largest ETF provider, a new milestone following a year that was filled with them: IN
  • Tricky Ratio of Chief Executive’s Pay To Workers': NYT
  • George Soros may be in a car race with Warren Buffett: Fortune
  • Asia’s Life Agents Sing to Sell Insurance; Anthems Help to Psych Up Staff in Competitive Market: WSJ
  • Too big to innovate: Get excited for the coming disruption of banks: WaPo
  • The new 70s show: Australian dollar in the doldrums : TheAge

TMT

  • Tech Giants Invest in New Dreams of Grandeur: NYT
  • How The Founders Of TransferWise Came Up With The Idea For Their Billion-Dollar Company; Why TransferWise’s $1 Billion Valuation Will Terrify The Banks: BI

Healthcare

  • The Operation Before the Operation; Three-dimensional printing allows surgeons to foresee issues, not stumble into them. NYT

Consumer & Others

  • Carlsberg may soon be serving beer in cardboard bottles: Quartz
  • Here’s why Mattel ousted its CEO Bryan Stockton: Fortune

Shedding of the Asian Snake’s Skin, The Opportunistic Tunneling of Corporate Wealth (Week 4 of SMU course Accounting Fraud in Asia)

 Bamboo Innovators bend, not break, even in the most terrifying storm that would snap the mighty resisting oak tree. It survives, therefore it conquers.”
BAMBOO LETTER UPDATE | January 26, 2015
Bamboo Innovator Insight (Issue 67)

§  The weekly insight is a teaser into the opportunities – and pitfalls! – in the Asian capital jungles.

§  Get The Moat Report Asia – a monthly in-depth presentation report of around 30-40 pages covering the business model of the company, why it has a wide moat and why the moat may continue to widen, a special section on “Inside the Leader’s Mind” to understand their thinking process in building up the business, the context – why now (certain corporate or industry events or groundbreaking news), valuations (why it can compound 2-3x in the next 5 years), potential risks and how it is part of the systematic process in the Bamboo Innovator Index of 200+ companies out of 15,000+ in the Asia ex-Japan universe.

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Shedding of the Asian Snake’s Skin, The Opportunistic Tunneling of Corporate Wealth (Week 4 of SMU course Accounting Fraud in Asia)

During the 1990s in the city of Yichang, Hubei province, central China, you are considered a god if you are a “Monkey King” – if you work at the Monkey King Group (MKG) (宜昌猴王焊丝有限公司). MKG was a Shenzhen-listed industrial powerhouse as one of China’s 512 key SOEs (state-owned enterprises) and formerly China’s #1 maker of welding materials. Around 14 years ago, at the end of 2000, the parent company of MKG was placed in liquidation.

The MKG case reminded us about the technical default saga of Shenzhen developer Kaisa Group Holdings (1638 HK). Bondholders and investors in earlier cases were burnt – investors in Suntech, Ocean Grand Holdings, Celestial Nutrifoods and China Milk Products Group got 5% or less, while investors in Asia Aluminum Holdings, which collapsed in March 2009 with $17.7bn of debt, received about 7%. Sino-Forest debtholders recovered 17%.

Like Kaisa and many of the Asian companies, MKG had guaranteed the loan of its parent company who had used the money to speculate in the stock market, property and speculative ventures. In Dec 2000, MKG started an accounting “tunneling” exercise that shrunk group assets from RMB2.42bn to RMB371m, according to its biggest creditor Huarong Asset Management who bought RMB622m in MKG debt. Tunneling is the very reason why the recovery amount is always a small fraction of the audited net asset value, and the reason why western-style financial statement analysis, the elaborate spreadsheets of net-net asset value etc, break down as garbage-in-garbage-out exercise in the Asian capital jungle.

Loan guarantees presents a seemingly innocuous Opportunity to maliciously tunnel out corporate wealth in Asian companies.

Take the case of Olympus. It deposited ¥21bn in Japanese government bonds with LGT Bank and arranged for the bank to use these bonds as collateral for a loan to two shell companies, the “tobashi”. The unconsolidated shells in turn used the borrowed funds to buy the toxic investments from Olympus at the original cost. Olympus recorded the amount it deposited with LGT and the toxic assets were considered “sold” to the shells, thereby avoiding recognizing losses on these underwater securities. In other words, Olympus acted as a guarantor of loans made by the banks to the shells by depositing funds at the banks equal to the amount loaned (figure on left).

Loan Guarantee

(L): Olympus accounting: DR Government Bonds ¥21bn, CR Cash ¥21bn; DR Cash ¥21bn (from the shells), CR Toxic Financial Assets ¥21bn (“sold” to shells); (R): Photo of MKG plant in the 1990s

Hence, cash in the balance sheet in Asian companies is invariably never really cash unless one examines these related-party transactions (RPTs), often held in scant regard by investors using western-style financial statement analysis and by Asian auditors. Even in Singapore, the Qualification Programme (SQP), a post-university professional accountancy qualification, does not cover at all the auditing of RPTs which is all-important in the Asian capital jungle.

The Monkey King is just one of the many brief cases that we will be sharing in Week 4 of the Accounting Fraud in Asia course in SMU. Last week, we have discussed about the Incentivized Asian “Wedge” Snake with indirect measurements of accounting tunneling using the complex and opaque corporate structures set up by the controlling owners. This week, we are making the breakthrough to explore the Shedding of the Asian Snake’s Skin: The Opportunistic Tunneling of Corporate Wealth with the direct measurements of accounting tunneling.

This Week #4 is a breakthrough in the sense that we are exploring new frontiers that have NOT been discussed even in top-tier accounting and finance research journals since the Asian Snake has adapted itself to escape the various measurements devised by researchers and practitioner. Take loan guarantee which has shifted to intercorporate loans, classified under “Other Receivables”. With some reforms mitigating these RPTs, the Asian Snake has adapted and shifted to other accounts in disguised forms. Hence our earlier article for a sense of urgency to develop a new composite measurement of tunneling. We will be dissecting both actual and potential real-world Asian accounting cases in this week and we’ll observe up-close the process in the shedding of the Asian Snake’s skin and the accounting transgression skin left behind.

Week 4

We are pleased to present the course presentation materials exclusively for our Moat Report Asia subscribers:

Week 1 – Survival in the Asian Capital Jungle: Who Knows What When? (108 slides)

Week 2 – Western Tools to Catch An Asian Snake? (111 slides)

Week 3 – The Incentivized Asian “Wedge” Snake to Tunnel Corporate Wealth (revised to 105 slides from 86 slides)

Week 4 – Shedding of the Asian Snake’s Skin: The Opportunistic Tunneling of Corporate Wealth (157 slides)

We like to invite You to participate in our Asian Extractor website (www.AsianExtractor.com), which we hope will develop into a thought leadership platform on accounting fraud in Asia with analyses and opinions from the students and expert guest speakers in the course as well as from global experts.

PS: Our monthly Moat Report Asia will be out in the week of 6 February.

Warm regards,

KB

The Moat Report Asia

www.moatreport.com

www.asianextractor.com

http://accountancy.smu.edu.sg/faculty/profile/108141/KEE-Koon-Boon

A new monthly issue of The Moat Report Asia is now available!

Access the in-depth idea presentation:

http://www.moatreport.com/members/

Bamboo Innovator Daily Insight: 26 Jan (Mon) – Questions that will help you find your purpose in life: What makes you forget to eat? How can you better embarrass yourself?

Life

  • Questions that will help you find your purpose in life: What makes you forget to eat? How can you better embarrass yourself? Quartz
  • Tycoon’s bold strokes in paint; Goh Cheng Liang has made a mint in businesses ranging from health care to instant noodles, but his decision to return to his first big score – paint – has made him Singapore’s wealthiest person: ST
  • Cheap and cheerful: After some teething troubles, frugal innovation is on the rise: Economist
  • What CEOs Say.and What They Mean: StockViews
  • Busting graft: Tone from the top is key; How can CEOs build and sustain a graft-free corporate culture in today’s business environment? BT
  • Frederick W. Taylor: Time Management Skills: Farnam
  • The most important skill in science or self-improvement is noticing the unexpected. Farnam

Books

  • Steal Like an Artist: 10 Things Nobody Told You About Being Creative: Amazon

Investing Process

  • Human investment managers risk obsolescence: FT
  • Buffett Wisddom That You May Not Have Heard Before: MI

Greater China

  • The great sprawl of China: How to fix Chinese cities: Economist
  • Skiing: To the piste! To satisfy skiers, China is covering its arid hills with snow: Economist
  • China: Monopoly position; Architect of Beijing’s antitrust laws says they are being used in a turf war between regulators: FT
  • Disenchanted Hong Kongers are preparing to escape Beijing’s rule: Quartz
  • Obesity problem in China balloons out of control: WCT
  • Mobile internet in China booms as users reached 1 billion: WCT
  • Confusion abounds over China’s emerging credit reporting industry: SCMP
  • Row over fees gives glimpse into Beijing-backed takeovers: SCMP
  • Taiwan’s Odds Of Opening The Next Backdoor To Restricted China Stocks: Forbes
  • Japanese rice: the new, safe luxury food in China: Reuters

India

  • Vibrant Gujarat: High on solar energy: Forbes
  • Ghost employees and vanishing finances; Indian bureaucrats, some may argue, are second to none in devising newer methods of corruption: Pioneer
  • India turns to corner shops, mobile phones for banking revolution: Reuters

Japan & Korea

  • Samsung expected to repeat success of memory biz in system semiconductor biz: Maeil
  • Korean virtue of ‘jeong’ still works; Foibles of status and prestige that infest modern life aren’t the virtues that helped Koreans get to where they are and won’t be the virtues that will help them go where they want to go: KT
  • Korea’s exports of instant noodles to Japan plunge: KT
  • Lotte runs Japanese units independently; Lotte Group Chairman Shin Dong-bin said he will not take management control of affiliates in Japan following the unexpected dismissal of his elder brother : KT
  • Smart’ factory touted as an industrial model; Korea’s largest “smart factory” is at LS Industrial Systems (LSIS), one of the nation’s largest cable makers. : JA
  • Shinsegae sets out to overtake Lotte: KT
  • Investors rediscover the Kosdaq: JA

ASEAN

  • Telecoms in Myanmar: Mobile mania; One of the last great “unphoned” territories opens up: Economist
  • Joko Widodo: 100 days as president: AsiaOne
  • Investors in gold scheme in Singapore ; Not only is its owner uncontactable, but the company’s office at Keypoint in Beach Road has also been closed.alarmed by firm’s silence: AsiaOne
  • Vacancy rate for private homes in Singapore at 10-year high: AsiaOne
  • Case of the S$2 mln furniture vouchers grips Singapore property market: Reuters
  • A third of traditional Chinese medicine (TCM) stores as well as one-fifth of TCM practitioners are in danger of folding when GST is implemented in Malaysia: AsiaOne

Macro

  • Anne Stausboll, Calpers CEO: the $300bn woman; The mighty US pension fund boss squeezing fund managers’ fees: FT
  • Andrew Left, Sahm Adrangi NPR Interview: We’re Short America: NPR
  • Dodging peril: Instead of uniting China and the West, jihadist violence risks further dividing them: Economist
  • Foreign investment in Africa: A sub-Saharan scramble; Private-equity investors are getting hot for Africa. Businesses there need all the capital on offer, and more: Economist
  • Rousseff’s dream of Brazilian shipbuilding titan in deep water: FT
  • Saudi Arabia: Threat from Isis will only grow; The internet, more than bombs, could be the government’s undoing: FT
  • Let statisticians cry foul when politicians bend the truth; Those responsible for government numbers should not be working for ministers: FT
  • Rise in second jobs makes UK a nation of grafters; Falling real incomes explain wave of industriousness: FT
  • Why Two Big ETFs Are Shrinking: Barron’s
  • Can Managed-Futures Hedge Funds Revive?: Barron’s
  • Hedge Funds Learn Secrets Not So Safe; Data Providers Let Banks, Brokers Know What Reports Subscribers Read: WSJ
  • Markets Get Bumpier as Fed Withdraws Safety Net: WSJ
  • British builders lose £2bn a year as clients fail to pay: Telegraph
  • What happens after shock and awe of QE subsides?: Telegraph
  • Stanchart shares tumble on reports CEO to be replaced by end of the year: SCMP
  • Banking – the ultimate dead-end job; Why work for a gloomy bank when you can work for a Palo Alto company that … is trying to change the world?: SCMP

Energy & Commodities

  • America’s oil industry: The tough get going; Amid the gloom and cutbacks in the industry, the strong will get stronger: Economist
  • With King Abdullah’s death, new realities may force Saudi Arabia to change oil policy: FP
  • Oil collapse could trigger billions in bank losses; Huge expansion in leveraged loans to oil and gas sector in recent years suggests heavy losses from defaults: Telegraph
  • Commodity financing exposure in Asia-Pacific hits banks hard: SCMP

TMT

  • Spotify for books: Authors and publishers may constrain the rise of e-book subscriptions: Economist
  • Meet The Man Behind Microsoft’s Ambitious Vision For The Future Of Computing: BI
  • GoPro just changed what live sports are going to look like: Quartz
  • Box IPO: The $120 million that got away: Fortune
  • Who is Alibaba’s biggest shareholder? Clue: they invested 14 years ago: Technode
  • [Korean Startup Interview] US$1B Valued Yello Mobile Cherry-picks Best Mobile Apps: Technode
  • Israel Grows From Startup Nation To Exit Nation: Techcrunch
  • Investors Want Proof You’re High Fantasy: Techcrunch
  • Mozilla Wants To Bring Virtual Reality To The Browser: Techcrunch
  • New Tricks for an Aging Microsoft: WSJ
  • Inroads Made by Apple Pay Propel ‘Mobile Wallet’ Idea: WSJ
  • Why Apps for Messaging Are Trending: NYT
  • The smart money now seeking pre-IPO investments in tech start-ups: SCMP
  • Delivery van-booking apps seen having good prospects in Asia: BT
  • Inroads Made by Apple Pay Propel ‘Mobile Wallet’ Idea: WSJ

Healthcare

  • Vaccine Skeptics on the Rise; Latest Measles Outbreak Shines Light on New Trend Worrying Health Officials: WSJ

Consumer & Others

  • Britain’s bold move on plain cigarette packaging; UK is right to ban all promotional graphics in the sale of tobacco: FT
  • This is Origami—Starbucks’ single-use pourover kit in Japan: Quartz
  • America’s best-selling cars and trucks are built on lies: The rise of fake engine noise: WaPo
  • Catalogs, After Years of Decline, Are Revamped for Changing Times: NYT
  • Car makers must prepare for the obesity epidemic; Ford’s “futurologist” says vehicles need to adapt to cope with the ever-expanding human body: Telegraph
  • Snowboarding falls out of favor on U.S. slopes: JT
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