China probe sparks metals stocks scramble

June 10, 2014 11:21 am

China probe sparks metals stocks scramble

By Lucy Hornby

Metals traders are rushing to secure copper and aluminium stocks following a financing probe in the northeast Chinese port of Qingdao, with at least one company asking courts to freeze inventory while traders move metal to other ports to prevent possible seizure.

CITIC Resources, an arm of Chinese banking, trading and metals conglomerate CITIC Group, said on Tuesday it had asked courts in Qingdao to secure alumina – the raw material for aluminium – and copper it had stored at Qingdao Port. Read more of this post

Flood of cash needs to irrigate businesses

June 10, 2014 3:52 pm

Flood of cash needs to irrigate businesses

By Luke Johnson

Is there just too much capital? Asset prices are at record highs – be it London property or stock market indices – yet still the surpluses rise. What is happening?

Eighteen months ago, Bain published an insightful document called A World Awash With Money . It stated that “financial assets are nearly ten times the value of the global output of all goods and services”. In other words, the financial economy has swamped the real economy. Bain believes this will continue – as China, India and other emerging markets grow, it estimates total global capital will increase by a further $300tn by 2020, or 50 per cent from current levels. Read more of this post

Conflict looms in ‘Asia’s cauldron’; China’s disputes with neighbours are becoming dangerous

June 10, 2014 7:05 pm

Conflict looms in ‘Asia’s cauldron’

China’s disputes with neighbours are becoming dangerous

Maritime disputes between China and its neighbours have reached new levels of tension. The South China Sea, where Beijing has active disputes with both Hanoi and Manila, has become “Asia’s cauldron” in the phrase of Robert Kaplan. In the East China Sea, a stand-off with Japan over the Senkaku/Diaoyu islands has become especially poisonous. Thepotential for miscalculation is high. Japanese and Chinese aircraft regularly fly too close to each other for comfort. Last month, Vietnamese fishermen had to be rescued when their boat sank after clashing with a Chinese vessel. Read more of this post

Ferrari drops agent as China’s luxury car market shrinks; With its sales in China dropping by one third to 554 cars in 2013, Ferrari has recently terminated a franchise agreement with a Chinese agent

Ferrari drops agent as China’s luxury car market shrinks

Staff Reporter

2014-06-11

With its sales in China dropping by one third to 554 cars in 2013, Ferrari has recently terminated a franchise agreement with a Chinese agent which owns two stores, out of more than 20 in the nation, a reflection of China’s shrinking luxury car market, reports the Chinese-language Beijing Business Today.

A company source told the paper that Ferrari decide to back out of the franchise following allegations that the agent was also selling rival brands at the same time, but market players attributed the move to the shrinkage of China’s top luxury car market. Read more of this post

China’s LED industry: Get big or go home

China’s LED industry: Get big or go home

Staff Reporter

2014-06-11

Over 10,000 Chinese enterprises have jumped onto the LED bandwagon but up to 50% of them will be forced out in five to eight years, said Pan Wenpo, chairman of Guangzhou Guangya Frankfurt Exhibition.

Pan predicted that China’s LED industry will become increasingly concentrated, leading to the emergence of enterprises with annual sales in the billions of yuan over a five-to-eight-year period, according to Shanghai’s China Business News. He added that the industry’s annual output value will grow at an annual clip of 22%-25% and surpass 1 trillion yuan (US$160 billion) in five years, compared with 350 billion yuan (US$56 billion) in 2013. The forecast amounts to 420-430 billion yuan (US$67-$69 billion) this year, as the LED penetration rate could jump to over 80%. The industry will be dominated by enterprises with edges in branding, sales networks and technology, stressed Pan. Read more of this post

New Silk Road to build global access to Chinese culture

New Silk Road to build global access to Chinese culture

XI’AN, June 9 (Xinhua) — China should build a new Silk Road using the Internet to help integrate Chinese culture into the outside world, the vice chief of a Chinese Internet entertainment company said at the weekend.

American cartoons, such as Dreamworks’ “Kung Fu Panda” and Disney’s “Mulan,” are not true embodiments of Chinese culture, said Wang Yuyun, vice president of Perfect World.

“They are Hollywood cultural products made for viewers around the world. American producers borrowed the classic tales or images of China, and the cartoons mainly reflect American values,” she said. Read more of this post

CITIC Securities Analyst Suspended after Disclosing Drug Firm’s Stock-Incentive Compensation Plan; Zhang Mingfang put information on WeChat, prompting investors and fund managers to make quick exits from group chats

06.09.2014 16:17

CITIC Securities Analyst Suspended after Disclosing Drug Firm’s Compensation Plan

Zhang Mingfang put information on WeChat, prompting investors and fund managers to make quick exits from group chats

By staff reporters Zheng Fei and Liu Zhuozhe

(Beijing) – CITIC Securities has suspended an analyst who put information about Lizhu Medicine Group Holding Co. Ltd. on a messaging app’s group chats.

Lizhu, a medicine company listed in Shenzhen, said it will halt trading of its shares on June 9 until it releases a plan on stock-based incentive compensation for its employees. Read more of this post

The ex-chairman of fast-food chain Kungfu has lost his appeal in an embezzlement case that sources close to the company say was the result of a dispute involving family members

06.09.2014 18:54

Ex-Boss of Fast-Food Chain Loses Appeal of Embezzlement Conviction

Court upholds verdict against Cai Dabiao in case sources close to Kungfu Catering say was result of power struggle

By staff reporter Wang Jing

(Beijing) – The ex-chairman of fast-food chain Kungfu Catering Management Co. Ltd. has lost his appeal in an embezzlement case that sources close to the company say was the result of a dispute involving family members.

The Guangzhou Intermediate People’s Court upheld the conviction of Cai Dabiao on June 6. The southern city’s Tianhe District Court had sentenced Cai to 14 years in prison on December 13 for misappropriation of funds and embezzlement. He will also have 1 million yuan’s worth of personal assets confiscated. Read more of this post

Former top PLA general under graft probe

Former top PLA general under graft probe
Hilary Wong and Qi Luo
Wednesday, June 11, 2014

A graft probe against retired PLA general Xu Caihou – who has been placed under house arrest for his alleged involvement in a 10 million yuan (HK$12.4 million) corruption scandal – is to go head, according to Bastille Post.

Xu, 71 – the former vice chairman of the Central Military Commission – is the second highest official to come under investigation after Bo Xilai, the former Communist Party chief in Chongqing. Read more of this post

Investment sentiment is drastically turning around as opinions diverge over the direction of corporate governance realignment by Samsung Group, following the announcement of Samsung Everland’s planned listing

Stock market swayed by speculations on Samsung’s conversion into holding co structure

2014.06.10 15:05:15

Investment sentiment is drastically turning around as opinions diverge over the direction of corporate governance realignment by Samsung Group, following the announcement of Samsung Everland’s planned listing.
Brokerages shifted their focus from Samsung Group’s possible conversion into a holding company structure to strengthened control of the Group through spinoffs and mergers of major affiliates or handover of shareholdings to the third generation of the owner family after Everland’s listing.  Read more of this post

Korea’s Fair Trade Commission (FTC) is soon forecast to impose harsh disciplinary action on Amorepacific, which was embroiled in an unfair trade controversy over using forceful sales tactics against door-to-door sales distributors

Amorepacific likely to face hefty penalty

Park Yoon-soo

2014.06.10 17:54:36

The Fair Trade Commission (FTC) is soon forecast to impose harsh disciplinary action on Amorepacific, which was embroiled in an unfair trade controversy over using forceful sales tactics against door-to-door sales distributors last year.  Read more of this post

The “brain drain” that has afflicted developing countries for decades is now going into reverse. But success requires more than plugging a leak; economic development requires countries to make active efforts to attract talent

MOHAMMED BIN RASHID AL MAKTOUM

Mohammed bin Rashid Al Maktoum is Vice President and Prime Minister of the United Arab Emirates and Ruler of Dubai.

JUN 8, 2014

The Brain Regain

DUBAI – In 1968, while studying at the Mons Officer Cadet School in the United Kingdom, I needed to visit a hospital. There I met a doctor who, to my surprise, spoke fluent Arabic. I learned that he was new to the UK, so I asked if he intended to stay long or return home. He replied with an Arabic saying that translates as: “My home is where I can eat.” Read more of this post

Chinese Shoppers Change Hong Kong Border Area; Vast numbers of mainland Chinese traders and shoppers are pumping money into Hong Kong, leading to rapid development of the territory’s border area

Chinese Shoppers Change Hong Kong Border Area

JUNE 10, 2014

By CHRIS HORTON

HONG KONG — Smoking a cigarette outside a mall in the border town of Sheung Shui, a man who gave his name only as Chen stands next to a wheeled cart filled with purchases. He is visiting from the Chinese city of Shantou, 177 miles away, a trip he makes several times a year.

“When I come to Hong Kong, it’s mainly to buy medicine — maybe some food products, too,” said Mr. Chen, who declined to provide his full name because of a crackdown on illegal exporting. “There are more brands available here, many of which you can’t find back home. On the mainland, there is also a lot of counterfeiting.” Read more of this post

Hong Kong Regulators Tense About China Loans

Hong Kong Regulators Tense About China Loans

By KEITH BRADSHER

JUNE 10, 2014 5:44 PM Comment

Updated, 8:25 p.m. | A surge in business loans to the slowing mainland Chinese economy has prompted Hong Kong regulators to impose strict financial rules four years before they are required under new global standards.

The move is aimed at discouraging banks in Hong Kong from raising money by relying too heavily on short-term funds that can evaporate during periods of tumult. But big global banks have been resisting, over fears that the rules will cut into their profit by driving up loan costs. Read more of this post

Joko Plans to Abolish National Exam for Younger Students; “It’s better to look stupid but be smart, rather than to look intellectual but be stupid. It’s better to listen to people’s opinion rather than act like a know-it-all.”

Joko Plans to Abolish National Exam for Younger Students

By SP/Arnold Sianturi on 11:52 pm Jun 10, 2014

1.  Indonesian Democratic Party of Struggle (PDI-P) presidential hopeful Joko Widodo on Tuesday said that he would eliminate Indonesia’s national exam for elementary and junior high school students if elected.

“It’s better if there’s no national exam for students in elementary school and junior high school,” Joko said at a teachers’ workshop in North Sumatra. “It’s better to look stupid but be smart, rather than to look intellectual but be stupid. It’s better to listen to people’s opinion rather than act like a know-it-all.”

The teachers said “Amen.”

He was referring to controversy surrounding the exam: critics have argued that the test is so difficult that it encourages rote learning and memorization aimed at achieving a high exam score rather than depth or subtly of comprehension.

Education Minister Muhammad Nuh last year said that he would eliminate the elementary school exam in 2014, which he did. But the government replaced it with a new, similar test, 75 percent of which was written by local education agencies and 25 percent of which was written by the central government.

Indonesian Election Fever Grips the Nation After Presidential TV Debate

Election Fever Grips the Nation After TV Debate

By Dessy Sagita on 11:11 pm Jun 10, 2014

Presidential candidate Prabowo Subianto, second to left, greets his opponent Joko Widodo, center, next to vice presidential candidates Hatta Rajasa, left, and Jusuf Kalla, right, before their presidential debate in Jakarta on June 9, 2014. (Reuters Photo/Supri)

1.  Election fever has gripped the nation after the first TV debate between Governor Joko Widodo and former general Prabowo Subianto, flanked by their respective running mates, Jusuf Kalla and Hatta Rajasa, engrossed viewers on Monday night.

Read more of this post

Asia’s New ‘Axis of Reform’?

Asia’s New ‘Axis of Reform’?

By William Pesek on 07:17 pm Jun 10, 2014

Asia’s three biggest economies are suddenly experiencing a burst of change that could alter the growth trajectory for the world’s most populous region. Are we seeing the birth of a new “Axis of Reform,” one which could revive the global economy?

China’s Xi Jinping, India’s Narendra Modi and Japan’s Shinzo Abe are simultaneously sketching out vague-but-promising plans to revitalize their rigid economies. It’s not a coordinated process — more of a serendipitous coincidence, driven by a dire need for change in all three nations. Still, the possibilities are enticing: A truly dynamic and innovative Asia would raise living standards for billions and fresh hope for a world wondering where all its big growth engines went. Read more of this post

Keeping It In the Family: Even though Isia has the largest economy in ASEAN, it remains a small stock market; Family-owned businesses are avoiding equity offerings to the public because they can raise money by borrowing from banks

Keeping It In the Family

By Dominic G. Diongson, Vanesha Manuturi and Dion Bisara on 09:02 pm Jun 10, 2014

A worker shorts Sido Muncul’s best seller herbal remedy Tolak Angin. (JG Photo/Dhana Kencana)

Some family-owned businesses are avoiding equity offerings to the public because they can raise money by borrowing from banks. They also don’t want to cede control or dilute ownership, because they believe that everything should remain in family hands.

In their journey to expand and develop, why do some family-run firms choose banks and loans over an initial public offering? Globe Asia examine the various factors at play. Read more of this post

MSCI Keeps China Out of Indexes as Korea Upgrade Abandoned

MSCI Keeps China Out of Indexes as Korea Upgrade Abandoned

By Belinda Cao on 08:27 am Jun 11, 2014

China’s mainland-traded shares won’t be included in MSCI’s emerging-markets index, while South Korea and Taiwan were removed from consideration for an upgrade to developed market status.

MSCI, which based its decision on limitations to investing in China’s so-called A shares, may consider an inclusion in 2015, the index provider said in a statement on Tuesday. The MSCI Korea and MSCI Taiwan indexes will be removed from potential reclassification because of the absence of “any significant improvements” in areas such as the limited convertibility of local currencies and market accessibility. Read more of this post

In Japan, labor crunch pushes businesses to reform

In Japan, labor crunch pushes businesses to reform

TOKYO – Don Quijote and Uniqlo, two of Japan’s best-known mass-market retailers, aren’t waiting for the government’s new growth policies due later this month before implementing their own labor reforms.

JUNE 5

TOKYO – Don Quijote and Uniqlo, two of Japan’s best-known mass-market retailers, aren’t waiting for the government’s new growth policies due later this month before implementing their own labor reforms.

While many labor-intensive businesses face a shortage of low-wage workers as Japan’s economy perks up, discount chain Don Quijote Holdings is drawing five times more job seekers since it bucked tradition and eased application requirements. Read more of this post

Jokowi’s presidential campaign budget 4 times Prabowo’s

Jokowi’s presidential campaign budget 4 times Prabowo’s

JAKARTA — The month-long campaign for the Indonesian presidential election on July 9 started yesterday, with frontrunner Mr Joko Widodo leading Mr Prabowo Subianto not only in opinion polls, but also in the campaign budget.

BY HERA DIANI –

JUNE 5

JAKARTA — The month-long campaign for the Indonesian presidential election on July 9 started yesterday, with frontrunner Mr Joko Widodo leading Mr Prabowo Subianto not only in opinion polls, but also in the campaign budget. Read more of this post

Economic growth in the northern Chinese city of Taiyuan, Shanxi province, has crashed to zero from 12 percent in one year on coal bust

China City Crash-Lands to Zero Growth on Coal Bust

Read more of this post

Gupta Becomes Billionaire as Havells Climbs to Record

Gupta Becomes Billionaire as Havells Climbs to Record

Read more of this post

What it Means for Prem Watsa’s Acquisition of Thomas Cook India

What it Means for Prem Watsa’s Acquisition of Thomas Cook India

by Ankur ShahJune 04, 2014, 1:00 pm

June 4, 2012

On May 21, 2012 Prem Watsa, who is also known as the ‘Warren Buffett of Canada’ bought a 76.81% stake in Thomas Cook India for INR 50 per share. Admittedly he got a good deal by purchasing the shares at an 18% discount to the closing price on the last trading day before the deal was announced. Although pure value investors don’t try to time the market, I do think it was a brave decision to purchase a travel company during the onset of a renewed global recession. Furthermore, India’s 5.3% 1st quarter GDP print, the lowest in the past nine years, makes me even more cautious about the current fragile state of the market. Regardless, a true value investor is buying when others are selling. I just think that there is a lot more selling to come. But I digress. Getting back to the point, there is still an opportunity for you make money from this deal even though it’s already been announced through merger arbitrage. Read more of this post