Loosening of real estate-related companies’ financing are unfounded and the relevant regulatory bodies are deeply dissatisfied with this incident

Loosening of real estate-related companies’ financing are unfounded

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more media reports emerged that the news on re-commencing real estate-related companies refinancing policies were unfounded, and the relevant regulatory bodies are deeply dissatisfied with this incident JRJ reported from media reports claiming that listed companies with a real estate business may have their financing channels conditionally loosened, and reportedly this new policy was already approved by China SecuritiesRegulatory Commission (CSRC) chairman Xiao Gang. However, more media reports then emerged which denied that claim, and reported that the relevant regulatory bodies were deeply dissatisfied with this incident, and may conduct investigations into how such claims came to be. Previously, 21st Century Business Herald reported on various comments made by a high-level management of a listed company with real estate business,who said that for refinancing and restructuring policies for listed companieswith real estate businesses had shown some signs of loosening. According to him, after liaising with relevant officials from SCRC, he discovered that previously when a real-estate related company wishes to restructure andchange its business into other industries/sectors, it must first be stripped of allreal estate development business before the application for businessrestructuring can even be submitted, but under the new policies applications can be made even if the company hadn’t yet completely stripped of its real estate business. Another point of focus is that, once these restructuring guidelines arecompleted, length of restructuring applications will be significantly shortened from at least a few months to only one to two months. In addition, the management personnel was quoted saying that he found a case where a listed developer had obtained approval for restructuring into another industry/sectorwithout first stripping itself away from its real estate development business. Read more of this post

Likonomics: what’s not to like. Likonomics stands for: No stimulus, Deleveraging, Structural reform

Stimulus v reform in China

Likonomics: what’s not to like

Jul 1st 2013, 9:52 by S.C. | HONG KONG

JAPAN is still enjoying the effects of Abenomics, a campaign to reflate the economy named after Shinzo Abe, the prime minister. (The campaign stopped consumer prices, excluding fresh food, falling in the year to May.) China, on the other hand, is now enduring the effects of something called “Likonomics”. Pronounced lee-conomics, the term has nothing to do with Facebook’s economy of endorsements. It refers instead to the emerging doctrine of Li Keqiang, China’s prime minister, who has overseen the country’s economy since March. The term was coined on June 27th by three economists at Barclays Capital: Yiping Huang, Jian Chang and Joey Chew. Like the three “arrows” of Abenomics, Mr Li’s strategy comprises three parts, they argue. Unlike the arrows of Abenomics, however, all of them hurt. Read more of this post

Assam’s planters are responsible for more than 11% of the world’s total tea production

More people are drinking tea, but the world’s No. 2 producer is reeling

By Devjyot Ghoshal 2 hours ago

Devjyot Ghoshal is a former Southeast Asia correspondent for Business Standard. He will attend Columbia University’s journalism school as a Fulbright scholar this fall.

KOLKATA, India—Headlines about India in recent days have focused on heavy rains and a rescue mission in Uttarakhand, a northern province straddling the Himalayas. It rained 275% above normal levels last month, initially marooning more than 100,000 people and killing hundreds. Read more of this post

K-pop vs. democracy: Hong Kongers vote with their feet at annual protest rally. “We like K-pop, but we don’t like the government. Coming here is more meaningful”

K-pop vs. democracy: Hong Kongers vote with their feet at annual protest rally

By Doug Meigs 7 hours ago

Hong Kong youths faced a dilemma yesterday: join an annual rally for democracy in the middle of a typhoon, attend a K-pop concert funded by property developers, or just stay home.

The choice was simple for three soaked and giggling 16-year-old girls. “We like K-pop, but we don’t like the government. Coming here is more meaningful,” said Mimi. Her friends Holly and Eliza, huddled under umbrellas, nodded their approval. They joined throngs trudging from Victoria Park to Central District in the rain. Organizers estimated attendance at 430,000; police estimated the tally at 66,000. Read more of this post

World Bank President: No country safe from social upheaval

No country safe from social upheaval: Kim

World Bank chief says recent waves of global turmoil signal need for more risk-taking if war on poverty and inequality to succeed

BY JEREMY TORDJMAN

AFP-JIJI, JUL 1, 2013

WASHINGTON – No country in the world is immune from unrest arising from poverty and inequality, according to World Bank President Jim Yong Kim. The protests in Brazil, Turkey, and elsewhere show that even governments that have made significant efforts already cannot let up in programs to help the poor, the doctor said in an interview. “There’s no country in the world that is immune from having this kind of citizen’s movement rise up to demand even more,” he said. “It shows that the power of civil society and the power of citizens to rise up is unlike anything we’ve seen in history. Read more of this post

For financial geeks, a do-it-yourself hedge fund site: Quantopia

For financial geeks, a do-it-yourself hedge fund site

Tim McLaughlin, Reuters | 13/07/01 4:37 PM ET
BOSTON — In the secretive world of hedge funds, algorithms are not shared because they provide the juice behind market-beating returns, and are a key reason why hedge funds charge their clients “two and twenty” – an annual fee equivalent to 2% of assets, plus 20% of gains.

Now startup company Quantopian offers a tantalizing proposition for software and financial geeks who want to trade like a hedge fund manager — but don’t want to pay those steep fees. The Boston-based firm is bringing together a community of people who build algorithms used for trading stocks. Read more of this post

The Spanish government has approved a plan to sell a quarter of its state-owned properties in an attempt to raise hundreds of millions and fill the government’s empty coffers

Spain’s property sale of the century

July 2, 2013 – 2:01PM

Fiona Govan

The Spanish government has approved a plan to sell a quarter of its state-owned properties in an attempt to raise hundreds of millions and fill the government’s empty coffers. Some 15,000 properties, from office buildings to agricultural land, will be put up for sale over the next seven years. The measure is the latest in a series of moves to bring Spain’s budget deficit to within the EU target of 3 per cent by 2016 from 7.1 per cent of GDP last year. Read more of this post

Loan Practices of China’s Banks Raising Concern

July 1, 2013

Loan Practices of China’s Banks Raising Concern

By DAVID BARBOZA

SHANGHAI — Text message solicitations began arriving on the mobile phones of many of China’s wealthy last month, promising access to lucrative wealth management products with yields far above the government’s benchmark savings rate.

One message read: “China Merchants Bank will issue a high interest financing product starting from June 28th to 30th. The product will be 90 days with a 5.5% interest rate. Please call us now.” Read more of this post

As Bond Market Tumbles, Pimco Seeks to Reassure Investors

JULY 1, 2013, 2:30 PM

As Bond Market Tumbles, Pimco Seeks to Reassure Investors

By NATHANIEL POPPER

As investors prepare for a long-term shift in interest rates, few large financial firms are as vulnerable as the giant money manager Pimco.

Over the last 30 years, the company has been one of the biggest beneficiaries of steadily falling interest rates, which have made bonds, and Pimco’s trademark bond mutual funds, into star investments. The environment propelled Pimco’s transformation into the fifth-largest asset manager in the world, landed it in many retirement plans and gave its leader, William H. Gross, an aura of invincibility. Read more of this post

Singapore’s Clean Image Sullied by Indonesian Smog; If the smog becomes an annual crisis, some multinational companies may consider relocating offices, key operations and expatriate families out of Singapore

Singapore’s Clean Image Sullied by Indonesian Smog

By Martin Abbugao on 4:17 pm July 1, 2013.
Singapore. Singapore’s clean and green reputation has taken a hit from Indonesian forest fires and its standing as a corporate and expatriate haven could be hurt if the smog becomes an annual scourge, analysts warn.

Singapore has long been a destination of choice for thousands of foreign companies and expat families drawn by its gleaming infrastructure, topnotch healthcare and education, and lush green environs that offer a high quality of living. Read more of this post

Sixteen years after the baht’s devaluation on July 2, 1997, Thailand appears to have regained its footing. Yet ample risks to economic and financial stability remain because of the volatility of capital flows and a deteriorating trade account

Kingdom a long way from 1997, yet more shocks may loom

Thanong Khanthong
The Nation July 2, 2013 1:00 am

Sixteen years after the baht’s devaluation on July 2, 1997, Thailand appears to have regained its footing. Yet ample risks to economic and financial stability remain because of the volatility of capital flows and a deteriorating trade account.

Over the past three or four months, Thailand has lost a chunk of its foreign-exchange reserves in a hurry. According to the Bank of Thailand’s website, as of June 21, the central bank’s forex reserves stood at US$172.6 billion (Bt5.348 trillion) – down $10 billion from February’s $182 billion. Read more of this post

Indonesia’s bakery industry is expected to witness unparalleled growth in the next few years as middle-class professionals embrace a more Western, urban lifestyle

BAKERIES FLOURISH AS MIDDLE CLASSES ADOPT NEW LIFESTYLE

Nurfika Osman, The Jakarta Post, Jakarta | Business | Mon, July 01 2013, 11:57 AM

Indonesia’s bakery industry is expected to witness unparalleled growth in the next few years as middle-class professionals embrace a more Western, urban lifestyle.

Young professionals are gradually changing their eating habits by including in their menus wheat-based products, such as bread, croissants, donuts, brioches, pies, quiches, muffins and cupcakes. Read more of this post

Golden Era Fades for China’s Banks as Crunch Raises Default Risk

Golden Era Fades for China’s Banks as Crunch Raises Default Risk

Chinese banks’ valuations are close to their lowest on record as the nation’s interbank funding crisis exacerbated investors’ concern that earnings growth will stall and defaults may surge as the economy slows.

Industrial & Commercial Bank of China Ltd., the world’s largest lender by market value, ended Hong Kong trading last week at 5.3 times estimated earnings, data compiled by Bloomberg show. The Beijing-based bank may report profit of $41 billion for 2013, according to the average of 17 analysts’ estimates. Wells Fargo & Co. (WFC), with net income forecast at $20 billion, trades at 11 times earnings. Read more of this post

Cosco Group Chairman Wei Jiafu Steps Down as China’s largest state-owned shipping company struggles to return to profitability

July 2, 2013, 3:01 a.m. ET

Cosco Group Chairman Wei Jiafu Steps Down

‘Captain Wei’ to Be Replaced by Cosco President Ma Zehua

JOANNE CHIU

HONG KONG—The head of China’s largest state-owned shipping company has stepped down in a shake-up of senior management at a time when its listed flagship,China Cosco Holdings Ltd., 601919.SH -0.33% is struggling to return to profitability. The arm of the Communist Party that controls personnel matters and top-level appointments said Monday that Wei Jiafu, chairman and party secretary for China Ocean Shipping (Group) Co., or Cosco Group, will leave the company immediately, among other senior-level management changes. Read more of this post

China Investigates Danone, Mead Johnson on Milk Powder Pricing

China Investigates Danone, Mead Johnson on Milk Powder Pricing

China is investigating foreign milk powder sellers including Danone (BN) and Mead Johnson Nutrition Co. (MJN) on suspected anti-monopoly violations, the official People’s Daily reported today, citing a government agency.

The National Development and Reform Commission, the country’s top economic planning agency, started a probe into the pricing of infant formula sold by Danone, Mead Johnson, Nestle SA (NESN)’s Wyeth brand, Abbott Laboratories (ABT), Dutch producer Royal FrieslandCampina NV, as well as local firm Biostime International Holdings Ltd. (1112), the newspaper reported on its front page today. Read more of this post

South Korea launched a third stock market, designed for small companies, as the new government seeks to boost innovation in response to flagging economic growth

July 1, 2013 10:10 am

South Korea launches third stock market

By Simon Mundy in Seoul

South Korea on Monday launched a third stock market, designed for small companies, as the new government seeks to boost innovation in response to flagging economic growth. Park Geun-hye, president since February, has promised to attack barriers limiting the growth of venture companies to reduce the economy’s reliance on a small number of large conglomerates. The Konex market, launched with 21 listed companies, is intended to broaden the funding options available to companies that are too small to list on the main Korea Stock Exchange or the secondary Kosdaq market. South Korean authorities say they have taken the UK’s AIM exchange as a model. Read more of this post

Fears for depositors in euro periphery; ‘Bail-in’ plans could lead to fresh nervousness

July 1, 2013 5:19 pm

Bail-in fears grow for big depositors in euro periphery

By Christopher Thompson and Ralph Atkins

Preventing capital flight from banks in crisis-hit countries has been a priority for eurozone policy makers. But have they just shot themselves in the foot?

At the height of the region’s debt problems, the amounts held by foreigners in banks in Spain, Italy and other eurozone “periphery” countries shrunk worryingly.

Recent months have seen signs of improvement – thanks to a pledge by the European Central Bank to prevent a eurozone break-up, as well as government efforts to boost confidence in the banking system. Read more of this post

China censors urge media to curb ‘cash crunch’ coverage

Last updated: July 2, 2013 4:50 am

China censors urge media to curb ‘cash crunch’ coverage

By Simon Rabinovitch in Shanghai

With a cash crunch roiling the Chinese economy, propaganda authorities have told local media to tone down their reporting to help stabilise financial markets.

In a directive written last week and transmitted over the past few days to newspapers and television stations, local propaganda departments of the Communist party instructed reporters to stop “hyping the so-called cash crunch” and to spread the message that the country’s markets are well stocked with money. Read more of this post

Ban looms on pension ‘consultancy fees’

July 1, 2013 4:33 pm

Ban looms on pension ‘consultancy fees’

By Josephine Cumbo

A ban on deducting charges from members’ pension pots with their consent, known as “consultancy charging”, is set to come in by November under government plans outlined on Monday. Draft regulations before parliament would stop employers from consultancy charging in schemes used for automatic enrolment. Consultancy charging allows employers to pay a professional adviser for pensions management work out of employee pension contributions. Research by Which?, the consumer group, found that the charges could reduce a member’s first year savings by up to 50 per cent and said the impact of charges was particularly damaging for low earners and those who change jobs frequently. In May, Steve Webb, the pensions minister, announced plans to ban the practice for automatic enrolment schemes, saying, “it is vital that the pension savings of individuals who are automatically enrolled are protected”. Under the draft regulations, a scheme that allows the deduction of charges from contributions will no longer be allowed to remain as an automatic enrolment scheme if those charges are made to a third party. The definition of a third party excludes trustees and providers. The draft regulations will not cover “legally enforceable” consultancy charging agreements in place before May 10 when the minister announced his plans for a ban. The government expects the ban could come into force by November at the latest. It added that it intends to extend the prohibition on consultancy charges to all qualifying schemes.

The London Metal Exchange has proposed changes to its warehouse network aimed at reducing long waits for aluminum, copper and other metals that have sparked complaints from industrial consumers.

Updated July 1, 2013, 7:59 p.m. ET

LME Aims to Ease Metals Gridlock

The London Metal Exchange has proposed changes to its warehouse network aimed at reducing long waits for aluminum, copper and other metals that have sparked complaints from industrial consumers.

Since 2011, companies that use metal to make everything from wires to pipes to beer cans have complained that bottlenecks at warehouses licensed by LME—but owned by banks and commodities-trading firms—have driven up their costs.. Read more of this post

Booms, busts and protests – normal life in emerging countries; Unrest and slowdowns mark the end of a placid decade, writes Ruchir Sharma

July 1, 2013 6:57 pm

Booms, busts and protests – normal life in emerging countries

By Ruchir Sharma

Unrest and slowdowns mark the end of a placid decade, writes Ruchir Sharma

Protests erupt in the formerly happy middle classes of Turkey and Brazil. A credit crisis threatens the Chinese economic juggernaut. Money flees the stocks, bonds and currencies of emerging nations. Is this the end of the emerging world miracle? Not exactly. This marks a return to the normal postwar cycle of recession and recovery, political unrest and calm, after a misleadingly placid decade. Read more of this post