The Wrong Way to Liberalize China’s Rates; More market distortions will come if Beijing doesn’t first tackle other problems

The Wrong Way to Liberalize China’s Rates

More market distortions will come if Beijing doesn’t first tackle other problems.

YUKON HUANG

March 13, 2014 12:14 p.m. ET

Recent statements from Beijing make clear that leaders intend to push forward with financial-market reform by liberalizing interest rates and allowing easier cross-border capital flows as China internationalizes its currency. Many observers are cheering because this is exactly what foreigners and not a few local economists have urged Beijing to do for years now. But it isn’t clear that these policies are right for China at this time, and the wrong reform steps now could further distort financial markets that are already badly distorted. Read more of this post

Oil Stays Thick in China Downturn

Oil Stays Thick in China Downturn

ABHEEK BHATTACHARYABy

March 14, 2014 1:57 a.m. ET

As China’s slowdown becomes clearer, the ground is shaking beneath commodities bulls’ feet. Yet there is one corner of the commodities markets that can relax somewhat easier—oil. Read more of this post

Latest Bitcoin Craze? Actual Bank Vaults; Startup Xapo Raises $20 Million to Store Digital Currency Underground

Latest Bitcoin Craze? Actual Bank Vaults

Startup Xapo Raises $20 Million to Store Digital Currency Underground

EVELYN M. RUSLI

Updated March 13, 2014 4:01 p.m. ET

Bitcoin was supposed to be a frictionless digital currency that required no banks or intermediaries. Read more of this post

China Suspends Two Forms of Smartphone Payments; Central Bank Halts Use of QR Codes and Virtual Credit Cards

China Suspends Two Forms of Smartphone Payments

Central Bank Halts Use of QR Codes and Virtual Credit Cards

PAUL MOZUR

Updated March 14, 2014 1:27 a.m. ET

BEIJING—China’s central bank is temporarily suspending the use of two forms of smartphone payments in a setback for China’s two largest Internet companies as they try to gain a larger share of the online finance market. Read more of this post

Chinese Authorities Halt Virtual Credit Card Payments; Tencent, Yahoo Crashing

Chinese Authorities Halt Virtual Credit Card Payments; Tencent, Yahoo Crashing

Tyler Durden on 03/13/2014 23:11 -0400

The PBOC issued a statement today, according to 21st Century Business Herald, that halts virtual credit card products and “face-to-face” payment services such as QR code payment: Read more of this post

China’s central bank halts Tencent, Alibaba mobile payment process

China’s central bank halts Tencent, Alibaba mobile payment process

1:16am EDT

By Hongmei Zhao and Heng Xie

HONG KONG/BEIJING (Reuters) – China’s central bank demanded on Friday that payments made by scanning a bar code with mobile devices be halted, hitting the payment arms of Internet companies Tencent Holdings Ltd and Alibaba Group Holding, amid concerns over the security of their verification procedures. Read more of this post

Panasonic to pay China expats extra for smog

Panasonic to pay China expats extra for smog

Friday, March 14, 2014 – 10:42

AFP

TOKYO – Japanese electronics giant Panasonic said Thursday it would give employees sent to China a wage premium to account for the country’s hazardous air pollution, in a possible first for an international company. Read more of this post

SBY Shares His Thoughts on Upcoming Elections

SBY Shares His Thoughts on Upcoming Elections

By Shoeb K. Zainuddin on 08:45 am Mar 12, 2014

President Susilo Bambang Yudhoyono, second from left, accompanied by Vice President Boediono, second from right, and a press conference regarding the replacement of Trade Minister Gita Wirjawan, left, with Muhammad Luthfi, right, in Jakarta on February 12, 2014. (Rugapres Photo/Abror Rizki) Read more of this post

In Public Housing in Indonesia, the Rot of Corruption

In Public Housing, the Rot of Corruption

By Jakarta Globe on 10:10 pm Mar 12, 2014

The Public Housing Ministry has come under the public glare as officials in East Nusa Tenggara investigate the possible embezzlement of funds allocated for the construction of houses for low-income residents in nine districts there. Read more of this post

Fitch Warns of ‘Bubble-Like Symptoms’ for Indonesia

Fitch Warns of ‘Bubble-Like Symptoms’ for Indonesia

By Vanesha Manuturi on 08:53 pm Mar 13, 2014

Jakarta. Fitch Ratings warned investors to remain cautious on Indonesia’s growth this year on the back of “bubble-like symptoms.” Read more of this post

Singapore to regulate virtual currencies; The move will make the city-state only the second country in the world to bring in such rules, following the United States

Singapore to regulate virtual currencies

Thursday, Mar 13, 2014

Reuters

SINGAPORE – Singapore’s central bank said on Thursday it plans to regulate virtual currencies to address potential money laundering or terrorism finance risks they might pose. Read more of this post

Haze hits ‘hazardous’ levels in Port Klang

Haze hits ‘hazardous’ levels in Port Klang

KUALA LUMPUR — The haze has breached hazardous levels in Malaysia with Port Klang and Banting at 6am this morning (March 14), with Air Pollutant Index (API) readings rising to 350 and 318, respectively. Read more of this post

Which European Countries Will Suffer The Most If Russia Turns Off The Gas

Which European Countries Will Suffer The Most If Russia Turns Off The Gas

Tyler Durden on 03/13/2014 16:32 -0400

With the Sunday Crimean referendum seemingly unstoppable now, its outcome certain, it is set to unleash a chain of events that is not entirely predictable but is at best, ominous, as it will involve the launch of trade, economic and financial sanctions against Russia (despiteChina’s stern disapproval), which will lead to a “symmetric” response in kind by Moscow. And in a worst case escalation scenario, should game theory completely collapse and everyone starts defecting from a cooperative equilibrium state, the first thing to go will be European gas exports from Russia, anywhere from one day to indefinitely. So which European countries are most exposed to the whims of Gazprom? Thefollowing map from the WSJ, shows just how reliant on Russian gas exports most European countries are. Read more of this post

Revenue Accounting Could Hit Loans, Bonuses; The prevalence of estimates in the new revenue recognition standard could cause sudden spikes or drastic dives in reported revenue and earnings

March 13, 2014

CFO.com | US

Revenue Accounting Could Hit Loans, Bonuses

The prevalence of estimates in the new revenue recognition standard could cause sudden spikes or drastic dives in reported revenue and earnings. Read more of this post

The Implementation of Industrial Parks: Some Lessons Learned in India

The Implementation of Industrial Parks: Some Lessons Learned in India

Yannick Saleman 

World Bank – Competitive Industries Global Practice

Luke Jordan 

World Bank – Competitive Industries Global Practice
March 1, 2014
World Bank Policy Research Working Paper No. 6799

Abstract: 
Industrial parks are as popular as they are controversial, in India and globally. At their best they align infrastructure provision and agglomeration economies to jolt industrial growth. More often, they generate negative spill-overs, provide handouts, sit empty, or simply do not get built. This paper disaggregates how parks are built and how they fail. Read more of this post

Global shippers must tighten belt, China’s Cosco chairman says

Updated: Thursday March 13, 2014 MYT 5:03:04 PM

Global shippers must tighten belt, China’s Cosco chairman says

BEIJING: Global shipping firms must prepare for another tough year as the glut in global capacity will continue to weigh on profits and margins, the chairman of China’s biggest shipping group, China Ocean Shipping Group Co (Cosco) said. Read more of this post

China’s premier warned that future defaults on bonds and other financial products were “unavoidable”

Last updated: March 13, 2014 2:04 pm

Fresh corporate default tests China’s resolve

By Lucy Hornby and Jamil Anderlini in Beijing

China’s premier warned on Thursday that future defaults on bonds and other financial products were “unavoidable” as the failure of a steel mill in the north of the country to pay off loans risks triggering a cascade of bad debt. Read more of this post