Bamboo Innovator

China Citic Seeks Shareholder Approval to Write Down Bad Loans

China Citic Seeks Shareholder Approval to Write Down Bad Loans

Move to Write Down Over Half Billion Dollars in Bad Debt May Be a Warning to Markets

DINNY MCMAHON And CYNTHIA KOONS

Updated Dec. 12, 2013 11:20 a.m. ET

BEIJING— China Citic Bank Corp. 601998.SH -0.74% plans to ask shareholders for permission to write off close to $900 million of nonperforming loans, an unusual move as China’s bad-debt levels start to tick upward. The bank, China’s seventh-largest by assets, said in statements on the Hong Kong Stock Exchange this week that it wants to more than double the amount of loans it can write off in 2013 to 5.2 billion yuan ($852 million), up from a previously planned 2 billion-yuan write-off. Read more of this post

China Adopts Board-Game Strategy to Blunt U.S. Rebalance in Asia

China Adopts Board-Game Strategy to Blunt U.S. Rebalance in Asia

The foreign policy strategy emerging from China’s new leadership may include a series of incremental steps calibrated to blunt U.S. influence across Asia and sow doubt about America’s commitment to its allies in the region. Potential next steps following last month’s imposition of an air defense zone over the East China Sea in the face of U.S. condemnation include more vigorously challenging aircraft that enter the area, imposing a similar zone over disputed territory in the South China Sea and asserting naval control over islands also claimed by other nations. Read more of this post

Auto industry: Hybrid carmakers

December 10, 2013 6:31 pm

Auto industry: Hybrid carmakers

By Henry Foy

The power couple of the car industry, Carlos Ghosn and Dieter Zetsche, make for an odd pair. Mr Ghosn, an effervescent French Lebanese-Brazilian, is outspoken and animated. Mr Zetsche, a tall, slim, German with an immaculate but fulsome moustache, prefers to let his cars do the talking. One sells millions of low-cost, entry-level hatchbacks every year. The other builds Mercedes-Benz saloons. But the blossoming relationship between the Renault-Nissan chief executive and Daimler’s chairman, they stress, is a meeting of equals. Read more of this post

Is Venroy the next Billabong?

Is Venroy the next Billabong?

December 9, 2013

Jake Mitchell

Entrepreneurs spark a new global board short culture. From the humble beginnings of a small factory in Marrickville in Sydney’s inner west, Sean Venturi and Theo Smallbone have carved out a global footprint, with a bricks and mortar presence in Tokyo, New York and Los Angeles, where they claim to have spawned a new board short culture: “above-the-knee” swimwear for blokes. Read more of this post

Quantitative Trading Makes Inroads in Asia; Returns for Asian ‘Quant Funds’ Have Outpaced Global Peers, and They Are Growing in Number

Quantitative Trading Makes Inroads in Asia

Returns for Asian ‘Quant Funds’ Have Outpaced Global Peers, and They Are Growing in Number

CHAO DENG

Updated Dec. 10, 2013 11:26 a.m. ET

High-tech trading is making inroads in Asia, as hedge-fund managers gain access to a wider range of market information and look to profit from strategies that go beyond picking which stocks may rise. Funds that use quantitative analysis, in particular, are finding favor in the region. Quant funds, as they are called, rely on mathematical models that crunch numbers from a variety of sources to arrive at trading decisions. Read more of this post

Asia Needs TPP to Spur Reforms; With Asia in a rut, forcing state-owned enterprises to compete would drive growth

Asia Needs TPP to Spur Reforms

With Asia in a rut, forcing state-owned enterprises to compete would drive growth.

FREDERIC NEUMANN AND IZUMI DEVALIER

Dec. 12, 2013 12:21 p.m. ET

Another round of talks for the Trans-Pacific Partnership, another failure to reach a deal. Negotiators meeting in Singapore this week emerged having missed a year-end deadline to conclude a high-quality multilateral trade agreement. What exactly held things up is not entirely clear since the discussions are held in secret. But with each passing month it becomes more important to conclude TPP. Read more of this post

Globalisation is turning the west against its elites

December 13, 2013 6:57 pm

Globalisation is turning the west against its elites

By Ian Buruma

The international borderless economy must become more equitable, writes Ian Buruma

Anew alliance is being forged betweenGeert Wilders and Marine Le Pen to fight what the Dutch populist calls “this monster called Europe”. They make a striking pair, with their shared taste for dyed butter-blonde locks. Yet their parties – the Dutch Party for Freedom and the French National Front – differ in several respects. Read more of this post

Cheap money party over, analysts warn as fears rise of asset bubbles

Cheap money party over, analysts warn as fears rise of asset bubbles

By AFP | 12 Dec, 2013, 10.22AM IST

ompanies who needed them.

PARIS: Cash is so cheap these days that investors have been borrowing and ploughing them in assets from artwork to wine to bitcoins, betting that prices would rise. And rise they did, some even setting records, but market watchers are now warning that asset bubbles may be forming and could well burst in 2014. Central banks have been flooding the market with money at record low rates, deploying liquidity to fight crisis after crisis that have set in since 2008.  Read more of this post

The powerful Thai generals behind Suthep’s protest movement

The powerful Thai generals behind Suthep’s protest movement

Published on Dec 14, 2013
12:14 AM

BANGKOK (REUTERS) – His whistle-tooting crowds of supporters are dwindling. His threats against Thai Prime Minister Yingluck Shinawatra veer from the bold to the bizarre. But behind Thailand’s fiery anti-government protest leader, Mr Suthep Thaugsuban, are two powerful retired generals with palace connections, a deep rivalry with the Shinawatra family and an ability to influence Thailand’s coup-prone armed forces. The forces behind Mr Suthep are led by former defence minister General Prawit Wongsuwan and former army chief General Anupong Paochinda, towering figures in Thailand’s military establishment, said two military sources with direct knowledge of the matter and a third with connections to Thai generals. A glimpse into Mr Suthep’s connections sheds light on how he could prevail in a seemingly improbable bid to oust a leader who won a 2011 election by a landslide and impose rule by an unelected “People’s Council” of appointed “good people”, even as his street rallies start to flag.

Thai Protesters Can’t Win by Dismantling System

Thai Protesters Can’t Win by Dismantling System

Hundreds of thousands of protesters bring the capital to a standstill. To placate them, the prime minister dissolves parliament and calls new elections. One might expect the crowds to declare victory and go home, right? Not in Thailand. The demonstrators who have filled the streets of Bangkok over the past several weeks say snap elections called by Prime Minister Yingluck Shinawatra are no concession, because her ruling party is certain to win. Their frustration is understandable — but it’s also irrelevant. Read more of this post

Hedge funds cut fees to win big investors

Last updated: December 12, 2013 7:00 pm

Hedge funds cut fees to win big investors

By Stephen Foley in New York

Do you know what your hedge fund manager is up to?

It is a question that haunts the institutional investors who have piled into hedge funds in increasing numbers in recent years, brandishing increasingly large cheques. Mindful of the historic opacity of the industry, and the wide latitude given to hedge fund managers to invest as they see fit, institutional money has demanded such an array of new transparency and compliance procedures that hedge fund managers often grumble the job is no fun any more. Read more of this post

Thai PM urges protesters to take part in election

Thai PM urges protesters to take part in election

8:42am EST

By Amy Sawitta Lefevre

BANGKOK (Reuters) – Her eyes welling with tears, Thai Prime Minister Yingluck Shinawatra pleaded on Tuesday for anti-government protesters to clear the streets after she called a snap election, but protests leaders said she should step down within 24 hours. After weeks of sometimes violent street rallies, protesters dismissed her call on Monday for a general election and said she should be replaced by an unelected “people’s council”, which has stoked concern that Southeast Asia’s second-biggest economy may abandon the democratic process. Read more of this post

Members of Thailand’s elite take to streets in anti-government protests

Members of Thailand’s elite take to streets in anti-government protests

Sunday, 15 December, 2013, 5:36am

Reuters in Bangkok

Members of rich families drop any pretence of neutrality as they join sometimes violent mass demonstrations against Yingluck’s government

Chitpas Bhirombhakdi is heiress to a US$2.6 billion family fortune and, according to high-society magazine Thailand Tatler, one of Bangkok’s “most eligible young ladies”. She can also handle tear gas and ride a tractor. Read more of this post

Yingluck Shinawatra’s tears divide Thailand

December 13, 2013 2:59 pm

Yingluck Shinawatra’s tears divide Thailand

By Michael Peel in Bangkok

In Thailand, even the prime minister’s tears divide the country. No sooner had Yingluck Shinawatra welled up briefly after pleading on national television this week for street protesters to go home than online critics were accusing her of fakery, pointing to video footage that showed her smiling almost immediately after she left the podium. Read more of this post

India’s Sun TV apologises for erroneous report on Little India riot

India’s Sun TV apologises for erroneous report on Little India riot

SINGAPORE — Indian news channel Sun TV has apologised for an erroneous report on the Little India riot on Sunday and broadcast the “correct” version, following complaints.

5 HOURS 17 MIN AGO

SINGAPORE — Indian news channel Sun TV has apologised for an erroneous report on the Little India riot on Sunday and broadcast the “correct” version, following complaints. The Tamil-language report was carried in the channel’s 7pm prime time bulletin on Tuesday, which is broadcast in Singapore at 9.30pm, said Mr R Umashankar, Editor In Charge of Sun TV’s News Section, in a letter sent to Mr Roy Kho, Singapore’s Consul-General in Chennai. A copy of the letter was released by the Ministry of Foreign Affairs (MFA) yesterday. Read more of this post

Is Singapore’s prized social stability under threat?

Is Singapore’s prized social stability under threat?

By Ansuya Harjani | CNBC – Fri, Dec 13, 2013 11:35 AM SGT

A rare incident of rioting in Singapore over the weekend has raised questions about social harmony in the wealthy Southeast Asian nation that has been built on a reputation of stability and prides itself on a long history of racial cohesion. The underlying cause for the violence late Sunday, which was triggered by a fatal road accident that killed an Indian national, appears to be the festering grievance among low-wage foreigners. Read more of this post

Penang homeowners may find it hard to sell their houses under new rules in Malaysia

Penang homeowners may find it hard to sell their houses under new rules

Monday, Dec 09, 2013

The Star/Asia News Network

GEORGE TOWN – Owners of affordable and low-cost homes in Penang will find it tougher to sell their properties as the state government plans to enforce strict rules to curb property speculation. From Feb 1 next year, owners of affordable homes (bought for below RM400,000 (S$154,000) on the island and RM250,000 on the mainland) would be barred from reselling their properties in the first five years of ownership. Read more of this post

Malaysia on alert after Little India riot in S’pore

Malaysia on alert after Little India riot in S’pore

PETALING JAYA — The police and Immigration Department have been put on alert at foreign worker enclaves across Malaysia after the riot in Singapore last week, the country’s Home Minister said in a report in The Star newspaper yesterday.

14 DECEMBER

PETALING JAYA — The police and Immigration Department have been put on alert at foreign worker enclaves across Malaysia after the riot in Singapore last week, the country’s Home Minister said in a report in The Star newspaper yesterday. Home Minister Ahmad Zahid Hamidi said officers have been instructed to monitor areas where foreign workers congregate, especially those identified as potential hot spots for outbreaks of violence. Read more of this post

Hurdles – and – hopes of buying KL stocks

Hurdles – and – hopes of buying KL stocks

Tuesday, Dec 10, 2013

Jonathan Kwok

The Straits Times

Most Singaporeans know Malaysia only as a place for good shopping but for a long time I’ve felt that I should shop for shares there too. The growth story is there: 4 to 6 per cent economic expansion each year is nothing to be sniffed at, and Malaysia has vast natural resources which usually translate into wealth. The country’s growth rate will probably outpace Singapore’s as it lifts millions of people into the middle class. Read more of this post

Unlikely Legacy Of Ponzi Scheme: A Bonanza for Newfangled Fund

Unlikely Legacy Of Ponzi Scheme: A Bonanza for Newfangled Fund

JASON ZWEIG

Dec. 10, 2013 11:04 p.m. ET

Five years later, the most ironic part of Bernard Madoff‘s legacy is clear: After his Ponzi scheme made hedge funds seem scary, especially to individual investors, the industry got busy making them seem safe enough for everybody. So-called liquid alternative funds have become the hottest thing in the mutual-fund business. These portfolios—essentially hedge funds with a longer, trendier name—employ such strategies as betting on mergers, wagering that stocks will go down as well as up, and using derivatives like futures and options. Their assets are up 33% this year to more than $244 billion, with nearly $53 billion flowing in through Sept. 30, according to Strategic Insight, a fund-industry research firm. Read more of this post

Traders Losing $1 Million Build EU Case for Bitcoin Regulation

Traders Losing $1 Million Build EU Case for Bitcoin Regulation

Trading Bitcoins could bleed you dry, the European Union’s top banking regulator said as it weighs whether to regulate virtual currencies. Thefts from digital wallets have exceeded $1 million in some cases and traders aren’t protected against losses if their virtual exchange collapses, the European Banking Authority said today in a report warning consumers about the risks of cybermoney. Read more of this post

Risk chasers emerge as QE market winners

Last updated: December 13, 2013 6:57 pm

Risk chasers emerge as QE market winners

By Michael MacKenzie in New York and Ralph Atkins in London

A hallmark of Communist centralised planning was the celebrated five-year plan. Next week the US – a bastion of laisser-faire economics – marks the fifth anniversary of the Federal Reserve’s switch to emergency interest rates anchored near zero per cent and to massive bond purchases. Clear winners under this grand monetary policy experiment – emulated globally – have been investors who held their noses, ignored fundamental market principles and bought equities and risky bonds, whose prices have been buoyed on a massive tide of central bank liquidity. Read more of this post

Rat-Infested South Africa Schools Foil Mandela Education Dream

Rat-Infested South Africa Schools Foil Mandela Education Dream

On his way to the toilet at his school in South Africa’s Soweto township, Simphiwe Bhengu passes broken chairs and piles of dumped textbooks. He steps through puddles of putrid water and skirts prowling rats before returning to a class of 40. Simphiwe, 15, is failing most of his subjects at Lamula Jubilee Secondary School. His father, David Bhengu, lays the blame on corruption and teachers who are too apathetic and underqualified to help his son achieve his goal of becoming a commercial lawyer. Read more of this post

Raising Minimum Wage Is a Bad Way to Help People

Raising Minimum Wage Is a Bad Way to Help People

Enthusiasm for a big increase in the federal minimum wage is building in the U.S. It’s a shame to see so much energy devoted to a policy that’s not only dubious but also sidelines better ideas. In his State of the Union address in February, President Barack Obama called for an increase in the federal minimum wage to $9 an hour from $7.25. Recently he said he supports a measure that would raise it in stages to a little more than $10. State and local governments across the country have been going ahead on their own. The president says there’s “no solid evidence” that raising the minimum wage would cost jobs. Read more of this post

Portuguese Conglomerate Espírito Santo Engages in Financial Gymnastics to Survive Crisis

Espírito Santo Engages in Financial Gymnastics to Survive Crisis

Portuguese Conglomerate Sold $8 Billion in Debt to One of Its Own Investment Funds

PATRICIA KOWSMANN

Updated Dec. 12, 2013 10:59 a.m. ET

LISBON—With Portugal all but shut out of global financial markets in 2011, one of the country’s largest conglomerates managed to find a source of easy cash: Over a 21-month period, it sold more than €6 billion ($8.27 billion) in debt to one of its own investment funds, sharply elevating the risk to investors. Read more of this post

It’s Hard to Summon Sympathy for Big Banks; Banks have gone from being viewed as national champions to being seen as a potential source of national disaster

December 12, 2013

It’s Hard to Summon Sympathy for Big Banks

By FLOYD NORRIS

It’s no fun to be a banker these days.

It is not just the increased regulation. It’s the lack of trust. “At what point does this stop?” asked Gary Lynch, the former director of enforcement for the Securities and Exchange Commission who has gone on to jobs with many leading Wall Street firms and is now global general counsel at Bank of America. He was referring to the escalation in penalties being levied on banks, culminating in the $13 billion JPMorgan Chase was forced to pay for a series of transgressions. Read more of this post

Is it better to play it safe or to place bets that risk bankruptcy? Society has a weakness for people whose foolish risks pay off and villains who tempt fate

December 10, 2013 3:51 pm

Is it better to play it safe or to place bets that risk bankruptcy?

By John Kay

Society has a weakness for people whose foolish risks pay off and villains who tempt fate

Financial options are difficult to value. It isn’t really the maths that is the problem.The Black-Scholes formula, which can be used to help value some of them, may look arcane to people who struggled with school algebra but is not – as they say – rocket science. (Rocket science is not very close to the frontier of mathematical knowledge either. Nor does Black-Scholes really solve the valuation question, though it is worth knowing that many people think it does). The problem is that the valuation of options exposes difficulties humans encounter in assessing risks and uncertainties. Read more of this post

In Russia, a Billionaire Scoffs at Oligarchs

In Russia, a Billionaire Scoffs at Oligarchs

Tinkov Considers Himself a Rarity in Country Known for Close Ties Between Business and Government

GREGORY L. WHITE

Dec. 13, 2013 4:52 p.m. ET

MOSCOW— Oleg Tinkov may have joined the ranks of Russia’s billionaires when his online bank went public in October, but don’t call him an oligarch. “Categorically not,” he says in his Russian-styled office on the outskirts of Moscow. Oligarch “means a person who works close to the government—there are lots of those,” he says, listing some of the country’s richest men. “But ones like me who built from nothing? Very few.” Read more of this post