Yinchuan, capital of Ningxia Hui autonomous region, might soon be known as the sparkling wine capital of China.

Yinchuan, destined to be China’s wine capital

Updated: 2013-08-26 06:56

By Zhong Nan and Li Fangfang ( China Daily) Read more of this post

Plunge in coal prices disrupts private lending chain in China’s Shaanxi’s Shenmu

Plunge in coal prices disrupts private lending chain in Shenmu

Staff Reporter

2013-08-25

Due to a plunge in coal prices last year, Shenmu county in northwestern China’s Shaanxi province — a bastion of the coal industry which was the main source behind the county’s GDP of 100 billion yuan (US$16.3 billion) — has been plagued by a private-debt crisis as many debtors have fled from the municipality. The crisis has disrupted the private funding chain in the county, seriously threatening the operation of many private enterprises and the continuation of ongoing projects. Read more of this post

How the cookie crumbled for Tesco in China

How the cookie crumbled for Tesco

Updated: 2013-08-26 06:56

By Mike Bastin ( China Daily) Read more of this post

Electric carmaker Tesla hits roadblock in China after a local businessperson claimed trademark rights to the name

Electric carmaker Tesla hits roadblock in China over trademark

Reuters | Friday, 23 Aug 2013 | 9:44 AM ET

Popular electric carmaker Tesla Motors’ plans to enter the world’s biggest auto market have stalled after a businessperson in China claimed trademark rights to the name, people close to the California-based company have told Reuters. The maker of the best-selling U.S. electric car—the premium Model S sedan with a price tag of $70,000—had originally hoped to launch a flagship showroom in Beijing at the start of the year, according to three sources, but has had to put that idea on hold partly because of the trademark issue. Read more of this post

Cut the cord, before China’s municipal gov’ts strangle themselves

Cut the cord, before China’s municipal gov’ts strangle themselves

Gregory Chow

2013-08-26

Many questions have arisen on the huge accumulation of debt by China’s municipal governments, including: What is its specific amount? What are its reasons? Is it a serious problem? How to solve it? The total debt of China’s municipal governments is estimated at 14 trillion yuan (US$2.3 trillion), 30% of its national income of 48 trillion yuan (US$7.8 trillion), compared with the share of 14.4% of the central government’s debt. As a result, the Chinese government’s total debt amounts to 44% of the national income, far below the 100% of the US government’s debt, which is not a serious problem in the eyes of most American people, especially Democrats. Read more of this post

China Suspended PMI Details Over Accuracy Concerns, Bureau Says

China Suspended PMI Details Over Accuracy Concerns, Bureau Says

By Bloomberg News – Aug 26, 2013

China suspended the release of industry-specific data from a purchasing managers’ index for manufacturing because of accuracy concerns, the National Bureau of Statistics said.

“We can’t ensure all industry-specific data can reach accuracy requirements,” Sheng Laiyun, a statistics agency official, said at a briefing in Beijing today. “Samples in some industries are very small, and accidental changes may affect overall data quality — we were concerned that some of the numbers may affect related investors and users.” Read more of this post

Charlene Chu Interview with Goldman on China’s Credit Bubble

Charlene Chu Interview with Goldman on China’s Credit Bubble

valuewalk.com/2013/08

Charlene Chu is a Senior Director in the Financial Institutions Group at Fitch Ratings, based in Beijing. She oversees the credit ratings of Chinese banks and other financial institutions. Before joining Fitch, Ms. Chu was a Senior Analyst in the emerging markets group at the Federal Reserve Bank of New York. Below she shares her concerns about China’s rapid credit growth. Charlene Chu who was called a hero by SocGen analyst, Albert Edwards, was recently interviewed by Allison Nathan of Goldman Sachs. Below is a transcript of the interview with Charlene Chu. The views stated herein are those of the interviewee and do not necessarily reflect those of Goldman Sachs.

Allison Nathan: How large has the recent credit expansion in China been and how worrisome is it? Read more of this post

Beijing reviews grain acquisition amid rising corruption

Beijing reviews grain acquisition amid rising corruption

Staff Reporter

2013-08-26

A group of China’s government agencies and scholars, led by the National Development and Reform Commission, are reviewing policy reforms dealing with grain acquisition, the Beijing-based Economic Information Daily reports. Discussions have yet to reach a consensus, although the direction will most likely move toward market-oriented policy, protecting the interest of farmers and reducing intervention in the market, said Li Guoxiang, a researcher at the Rural Development Institute of the China Academy of Social Sciences. Government acquisition concerns the minimum purchase price of wheat grain and rice, and the temporary storage of corn, soybeans and rapeseed. When market prices are lower, the government buys grain in order to protect the interests of farmers and boost confidence in growing grains. In recent years, acquisition prices have continued to rise, exposing a number of shortcomings. Read more of this post

China Rethinks Deals for Resources

August 25, 2013, 8:35 p.m. ET

China Rethinks Deals for Resources

CHUIN-WEI YAP

BEIJING—A dusty $8 billion Australian mine that has yet to export a chunk of ore is emblematic of why China is rethinking its huge, multiyear effort to buy up resources abroad. The mine, the Sino Iron project more than 900 miles north of Perth, in Western Australia, was launched in 2006 with an estimated $2.5 billion in development costs. The mine was to supply China with iron ore, a crucial steelmaking ingredient, and help China break into a global mining market dominated by BHP Billiton, BHP.AU -0.18%Rio Tinto RIO.AU +0.15% and Vale VALE3.BR -0.39% SA. Instead, Chinese owner Citic Pacific Ltd. 0267.HK +0.67% has grappled with everything from high labor costs and naturally occurring asbestos in the rock to a massive ore-grinding mill that years after its installation still doesn’t work. Read more of this post

South Korea’s foreign exchange reserve adequacy ratio is lower than India and Indonesia, which are rattled by signs of a financial crisis

S. Korea lags behind India, Indonesia in FX reserve adequacy ratio

2013.08.26

Based on economic data, South Korea’s foreign exchange reserve adequacy ratio is lower than India and Indonesia, which are rattled by signs of a financial crisis. According to data from the Bank of Korea, Ministry of Strategy and Finance and International Monetary Fund (IMF), Korea held $329.7 billion in foreign exchange reserve as of late July this year, equivalent to 130 percent of the base level set forth by the International Monetary Fund (IMF). Taking into account short-term external debt, the outstanding balance of investment in securities and others by foreigners, M2 money supply and exports, the IMF sets out a base level of foreign exchange reserves by country and suggests a country hold 100 to 150 percent of such level. Korea has maintained about 130 percent of such level for the recent years. Indonesia posted a reserve adequacy ratio of 165 percent and India that of 180 percent in late 2011, according to the IMF’s estimates for Asian emerging countries. Many of the countries’ ratios exceeded that of Korea, as the ratio of the Philippines came to 344 percent and that of Thailand 317 percent. Malaysia’s ratio stood at 137 percent as of late 2012. Korea runs a current account surplus and boasts a fiscal discipline, yet the country suffers a frequent inflow and outflow of foreign investment funds, as well as risk arising from North Korea. As a result, Korea cannot afford to be secure about foreign currency reserves even as it meets the IMF’s guideline. This has bolstered the voice that Korea needs to increase foreign currency reserves in case major economies wind down quantitative easing.

In India, Even Cricket Is No Longer Cricket

In India, Even Cricket Is No Longer Cricket

Since its inauguration in 2008, the Indian Premier League, India’s biggest sporting and television spectacle, has often been on the front rather than the sports page of Indian newspapers. “Rich, fast and powerful,” this abbreviated version of the British sport of cricket became “for many an image of the new India,” as James Astill writes in “The Great Tamasha: Cricket, Corruption, and the Turbulent Rise of Modern India.” Intoxicating the country’s emerging middle class, it “also drew in a powerful horde of investors and chancers — film stars, politicians and billionaire tycoons.” Read more of this post

How India’s Growth Ended In Tears

How India’s Growth Ended In Tears

DEAN NELSON, THE DAILY TELEGRAPH AUG. 25, 2013, 3:39 PM 3,224

AP

It’s enough to make a poor man cry and a wealthy investor sprint for the exit. From the back of a van in Delhi’s chaotic Karol Bagh market, opposition politicians are selling discounted onions to disgruntled voters ahead of next year’s general election. The humble red onion, heart of the vegetable curry most Indians depend on, has more than trebled in price in the last few weeks and opposition leaders hope the increase will take a large bite into the Congress-led government’s remaining support. Read more of this post

Food Worth $6.8b Rots in India Each Year: Minister

Food Worth $6.8b Rots in India Each Year: Minister

By Agence France-Presse on 8:47 pm August 23, 2013.
New Delhi. Food grains, fruits and vegetables worth $6.8 billion go to waste every year in India because of inadequate storage facilities, a minister said on Friday. Agriculture minister Sharad Pawar said the country’s storage requirement was 61.3 million tons against the current capacity of around 29 million tons, citing a report commissioned last year. “The present gap is around 32 million tons,” he said in the upper house of the parliament, according to the Press Trust of India news agency. The total wastage of cereals, fruits and vegetables would add up to 440 billion rupees ($6.8 billion) a year, the minister said. Read more of this post