President Xi: China needs courage for reforms, like “gnawing on a hard bone”; Xi stressed again the importance of innovation and technology in breaking through the bottleneck restriction for development and solve deeply rooted problems.

China needs courage for reforms, like “gnawing on a hard bone”: Xi

  • Xinhua 

2013-03-06

Communist Party of China general-secretary Xi Jinping on Tuesday called for courage like “wading through a dangerous shoal” to help deepen reforms in the country’s development.

While joining national legislators from China’s economic hub of Shanghai to deliberate the government work report, Xi compared the difficulty facing the country’s deepened reform and opening up to that in “storming a fortification.”

The report was delivered Tuesday morning by premier Wen Jiabao at the parliament’s annual session.

“We must have courage like gnawing on a hard bone and wading through a dangerous shoal,” said Xi, who is general secretary of the CPC Central Committee.

The government should give more respect to the law of the market and play a better role in advancing reform and opening up, Xi said.

While deliberating the government work report, Xi stressed again the importance of innovation and technology in breaking through the bottleneck restriction for development and solve deeply rooted problems.

Government and society should facilitate innovation with a global vision to come up with core technologies to drive industrial development, he added.

Shanghai saw a rush of people seeking a divorce over the past two days as couples worked out a way to escape the looming 20 percent tax on the profit from house sales.

Couples in rush to divorce as house sales tax looms

Created: 2013-3-6 1:46:08, Updated: 2013-3-6 1:54:53

Author:Hu Min

Shanghai saw a rush of people seeking a divorce over the past two days as couples worked out a way to escape the looming 20 percent tax on the profit from house sales.

Marriage registrars confirmed that the dramatic surge was triggered by the central government’s property curbs announcement last week, with many couples seeking a quick divorce but a remarriage shortly after.

Houses bought more than five years ago as a seller’s only residence are exempt from tax when resold. But families who own two houses and want to sell one of them are now targets in the government’s bid to curb speculation in the property market. If the couples divorce, each spouse will then own a property and one of them can sell the apartment that is tax exempt. After the transaction is complete, the couples get married again.  Read more of this post

Buffett Says Gloat Like Rockefeller When Watching Trains

Buffett Says Gloat Like Rockefeller When Watching Trains

Billionaire Warren Buffett said his Berkshire Hathaway Inc. (BRK/A) will benefit from rising U.S. oil production as the company’s trains and tank cars move fuel around the country.

Buffett, 82, highlighted demand for rolling stock made by Berkshire’s Union Tank Car in his annual letter to shareholders March 1. His company acquired the manufacturer, which traces its roots to John D. Rockefeller’s Standard Oil Trust, as part of the 2008 purchase of Marmon Holdings Inc. Buffett told investors to watch for the UTLX logo.

“As a Berkshire shareholder, you own the cars with that insignia,” he wrote to investors in his Omaha, Nebraska-based company. “When you spot a UTLX car, puff out your chest a bit and enjoy the same satisfaction that John D. Rockefeller undoubtedly experienced as he viewed his fleet a century ago.”

U.S. oil output had a record surge last year as new technology made drilling faster, cheaper and better at unleashing crude from rock formations. That’s reducing reliance on imported oil and benefiting railroads and tank car companies.

Berkshire’s railroad, Burlington Northern Santa Fe, is now carrying about 500,000 barrels of oil a day, or roughly 10 percent of what’s produced in the U.S. excluding Alaska and offshore, Buffett said. That’s helped keep volume growing at BNSF as coal shipments decline.

“Fortunately, they discovered oil where our railroad was,” Buffett, Berkshire’s chairman and chief executive officer, said in an interview yesterday on CNBC.

Car leases are generating $1,500 per month for 10-year deals, and more than double that for shorter terms, said Justin Long, an analyst with Stephens Inc. based in Little Rock, Arkansas. Before the recent boom, the cars leased for about $650 per month, Toby Kolstad, president of Rail Theory Forecasts LLC, said in December. Read more of this post

Less Than 14% of Chinese App Developers Make a Profit, Says China Mobile Executive

Less Than 14% of Chinese App Developers Make a Profit, Says China Mobile Executive

Mar 6, 2013 at 10:00 AM by C. Custer, in BusinessMobileStartups

Many of China’s tech luminaries are gathered in Beijing for the Two Meetings, and that means they’re all talking to the press. Xu Long, a National People’s Congress rep and the CEO ofChina Mobile’s Guangzhou subsidiary, took to the airwaves himself yesterday and made a grim pronouncement for China’s mobile market: only 13.7 percent of Chinese mobile app developers are actually making a profit.

It’s not entirely clear where that number comes from, but Xu says the source is “an investigation” of the country’s million-plus mobile app developers. Xu says the low number of profitable developers is evidence that China needs to continue exploring healthy and sustainable models for developing the mobile market. Read more of this post

Traders Flee Asia Hedge Funds as Haven Becomes Dead End

Traders Flee Asia Hedge Funds as Haven Becomes Dead End

Paul Smith moved from London to Hong Kong to work in Asia’s hedge-fund industry almost 17 years ago, and he rode the boom to its peak. Last year, like other industry veterans, he quit.

“I decided not to wait the cycle out but to do something more productive with my time,” said Smith, 53, who remains in the city heading the Asia-Pacific office of the nonprofit CFA Institute, the global association of chartered financial analysts. “The hedge-fund industry in Asia will continue to struggle to raise funds for the next few years as banks continue to have liquidity issues.”

Hedge-fund managers, traders and analysts in Asia are quitting as assets have failed to recover after the 2008 global financial crisis, and trading losses have left a majority of funds unable to collect performance fees. They’re moving to mutual funds, endowments, consulting firms and companies outside of the money-management business, often at a cut in pay.

Asian hedge-fund assets are 28 percent below their 2007 peak, according to data provider Eurekahedge Pte. Globally, money overseen by the funds increased 21 percent since 2007 to a new high of $2.3 trillion as of December, data from Chicago- based Hedge Fund Research Inc. show.

A total of 296 Asian hedge funds liquidated in the two years to December, 33 more than the number that started. On a global basis, 1,839 new funds outnumber those that shut by 371, according to Eurekahedge. Read more of this post

Indeed Is Becoming The Google Of Job Search

Indeed Is Becoming The Google Of Job Search

Vickie ElmerQuartz | Mar. 5, 2013, 9:13 AM | 3,991 | 1

Indeed is turning into the Google of job search.

The web site announced today that it has reached 100 million unique visitors worldwide in January, a 20% gain since late September. By some measures, the company is now bigger than Monster.

In a blog post and media announcement, Indeed said it accounts for more than half of online job searches in the United States and placed more people in jobs last year than CareerBuilderLinkedIn and Monster combined.  Its fastest growth occurred in Russia, India, South Africa, Australia and Japan.

Launched in 2004, Indeed operates as an aggregator of job listings, pulling them in from across the internet. ”We provide the best experience possible for job seekers. We do that by having the most jobs,” says Chris Hyams, a vice president of Indeed. The company has a team of people “dedicated to finding jobs online where we haven’t found them before.”

It also has focused on international growth, adding offices in Dublin, London, Toronto and Tokyo, among others, in the last two years. Read more of this post

Asian market indices do not provide an efficient risk/reward trade-off; the standard Asian indices are heavily concentrated in a few large-cap stocks. Most indices allocate as much as 60% of the index weight to only one-fifth of the stocks in the universe

Asian market indices do not provide an efficient risk/reward trade-off

Author: Wing-Gar Cheng

6 March 2013

Asian stock market indices have displayed a pronounced inability to provide an efficient risk-reward trade-off, according to researchers at EDHEC-Risk Institute.

The study of 10 major Asian stock market indices over the past decade –  “Assessing the Quality of Asian Stock Market Indices” – shows the standard Asian indices are heavily concentrated in a few large-cap stocks. Most indices allocate as much as 60% of the index weight to only one-fifth of the stocks in the universe.

Investors keen to hold well-diversified equity portfolios are advised to be aware of these inefficiencies. “Investors who want to capture the Asian market premium will do so in a better way if they use indices designed with an efficient weighting scheme.”

Asian equity indices also show severe fluctuations in style and sector exposures. Market indices in more developed countries (Hong Kong, Japan, Singapore, South Korea and Taiwan) demonstrate relatively more stability, whereas market indices in less developed countries (China and India) display higher variability over time in terms of sector allocation, the study found. “Investors clearly need to consider the weighting scheme that will allow them to extract the equity risk premium for a given geography in the best possible way.”

Total worldwide assets under internal indexed management rose to $5.994trn as of 30 June, 2011, a 25% increase over $4.781trn a year ago, the study said. In Asia, total ETF assets increased by 20-30% annually post-2008 and the number of products has risen by more than 200%. Currently, the total ETF assets in the Asia-Pacific are estimated at $81bn, it added. Read more of this post

%d bloggers like this: