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CBRC Tells Banks to Limit Investment in Local Government Bonds

CBRC Tells Banks to Limit Investment in Local Government Bonds

China’s banking regulator told lenders to be “cautious” when investing in bonds issued by local government financing vehicles as policy makers seek to rein in local borrowing. The China Banking Regulatory Commission has capped at end-2012 levels LGFV loans by banks, which are banned from providing guarantees to the entities’ bonds, Cao Guoqiang, Vice President of China Citic Bank Corp. (998), said at a teleconference. Read more of this post

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Baidu Said in Talks to Develop Smart Televisions

Baidu Said in Talks to Develop Smart Televisions

Baidu Inc. (BIDU), China’s largest search engine, is in talks with a Chinese manufacturer to help develop televisions connected to the Internet, according to two people familiar with the matter. The company is discussing working with Huan Technology Ltd. to develop a set-top box or a chip for use in smart TVs, the people said, asking to not be identified because the discussions are private. Huan Technology is a joint venture between Sichuan Changhong Electric Co. and TCL Multimedia Technology Holdings. (1070) TCL is the third-largest flat-panel TV maker in the world by revenue share, researcher DisplaySearch said in June. Read more of this post

China to Place Consumption Tax on More Luxury Goods, Xinhua Says

China to Place Consumption Tax on More Luxury Goods, Xinhua Says

China will widen the scope of its consumption tax to include more luxury goods, the official Xinhua News Agency reported, a sign that some high-end brands may become more expensive for purchasers on the mainland. The Asian nation is also targeting goods that cause heavy pollution or use excessive levels of energy for consumption tax adjustments, Xinhua said on its official microblog today. The news agency cited a report by China’s finance minister Lou Jiwei to the Standing Committee of the National People’s Congress. Read more of this post

China Urban Migrants’ Cost Seen at Least $6.8 Trillion

China Urban Migrants’ Cost Seen at Least $6.8 Trillion: Economy

China must spend at least 41.6 trillion yuan ($6.8 trillion) over two decades to integrate rural workers living in cities and towns so the country realizes benefits of urbanization, a United Nations report said. Spending may exceed 75 trillion yuan in a scenario with a higher rate of investment to improve living conditions and housing quality, according to the report released yesterday in Beijing. The study’s baseline assumptions are for the urban population to rise to 976 million in 2030 from 666 million in 2010 and integrate about 210 million migrant workers. The report quantifies the urbanization challenges faced by Communist Party leaders as they prepare for a November meeting to discuss deepening policy reforms amid an economic slowdown. Officials are considering changes to the hukou residence-registration system that excludes migrant workers from taking advantage of schools and pension benefits in cities. Read more of this post

After mega-LBO boom, a massive private equity cleanup

After mega-LBO boom, a massive private equity cleanup

3:31am EDT

By Greg Roumeliotis

NEW YORK (Reuters) – According to Blackstone Group LP’s (BX.N: QuoteProfileResearchStock Buzz) books, the private equity firm’s investment in Hilton Worldwide Inc was worth 50 percent more this year than when it took the international hotel chain private in 2007. While that might not seem like much compared to private equity’s historical record of doubling or tripling its investments, it is a remarkable turnaround for a $26.7 billion deal that has come to epitomize the leveraged buyout boom and bust of the past decade. Hilton is one of many cleanup acts that have been quietly going on in the world of private equity, as the industry atones for a debt binge in the years before the financial crisis. Many of the largest buyouts from 2005 to 2008 were based on revenue and profit expectations that proved too optimistic when the recession hit. Companies such as casino operator Caesars Entertainment Corp (CZR.O: QuoteProfileResearchStock Buzz) and Texas utility Energy Future Holdings were saddled with huge piles of debt and had difficulty meeting interest payments when business declined. Read more of this post

Suntech Directors Quit Saying Solar Maker Has No Business Plan

Suntech Directors Quit Saying Solar Maker Has No Business Plan

Suntech Power Holdings Co. (STP), the Chinese solar manufacturer whose main unit was pulled into bankruptcy earlier this year, said three directors including the former chairwoman quit saying the company had no business plan. Susan Wang, Julian Worley and Zhizhong Qiu resigned on Aug. 21, saying they weren’t provided with information they needed to fulfill their responsibilities, the Wuxi, China-based company said today in a statement. Michael Nacson replaced Wang as chair, who took the post in March, Suntech said. The resignations highlight the divisions that have plagued the company’s management and come less than six months after Suntech founder Shi Zhengrong was ousted as chairman. Nacson was appointed to the board last month by Suntech’s bondholders. Read more of this post

The small start-ups are as vital as the stars

August 27, 2013 4:37 pm

The small start-ups are as vital as the stars

By Luke Johnson

In the 19th and 20th centuries, Britain and the US were dynamic and open to novelty

Are entrepreneurs freaks of nature? Jim Clifton thinks so. He is the boss of research firm Gallup, and recently wrote about studies it is undertaking to find those especially talented individuals who can build the next Google, Ryanair or Bloomberg. Gallup estimated that such “super-entrepreneurs” number just three out of 1,000 across a sample population. These are the risk-takers capable of founding so-called gazelle companies: the fastest-growing breakthrough organisations that create a high proportion of the new jobs and genuine innovation in an economy. Read more of this post

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