China’s Path to U.S.-Style IPOs Confronts Get-Rich-Quick Culture

China’s Path to U.S.-Style IPOs Confronts Get-Rich-Quick Culture

China’s plan to allow the market a greater role in initial public offerings hinges on stamping out a raft of practices that deceive investors, from lax underwriting standards to executives who falsify earnings to obtain higher valuations. The proposed switch to a U.S.-style IPO model comes after a 14-month moratorium on Chinese offerings and is part of a wider push by the Communist Party to lessen government control of the economy. The so-called registration system would leave questions of IPO supply and timing of deals to companies, not Chinese regulators who now must approve most facets of an offering. Hurdles abound, including creating a legal system robust enough to guard against stock-sale fraud. Read more of this post

China’s ‘rejuvenation index’ greeted with derision

November 22, 2013 11:28 am

China’s ‘rejuvenation index’ greeted with derision

By Jamil Anderlini in Beijing

Chinese president Xi Jinping has pledged to reduce the role of central planning in the economy and usher in the “great rejuvenation of the Chinese nation”, but the unveiling this week of the country’s latest ‘rejuvenation index’ has been greeted with derision by many ordinary people and online commentators. By the end of 2012, the Chinese nation was 65.3 per cent rejuvenated, according to the index published by the Social Development Research Centre of the National Development and Reform Commission, China’s powerful state planning agency. Read more of this post

China regulator orders more disclosure on shadow bank products: sources

China regulator orders more disclosure on shadow bank products: sources

5:43am EST

By Weihao Cao and Gabriel Wildau

BEIJING/SHANGHAI (Reuters) – The China Banking Regulatory Commission (CBRC) will require banks to report detailed information on their holdings of wealth management products beginning in 2014, four sources with direct knowledge of the new regulations told Reuters on Friday. Wealth management products (WMPs) are short-term investment products that Chinese banks market to clients as a higher-yielding alternative to traditional bank deposits. They have become a crucial element of China’s shadow banking system, which analysts warn has contributed to excessive debt growth that has led to a build-up of financial risk. Read more of this post

GoPro helmet cameras now all the rage among skiers; “The cameras take bragging rights to the next level”

Helmet cameras now all the rage among skiers

AP NOV 22, 2013

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Seeking frame: This product image released by GoPro shows a digital camera mounted on a ski helmet. | AP

WILMINGTON VERMONT – There are moments on the slopes when skiers wish all eyes were on them. But the next best thing is here: helmet cameras, which enable skiers to photograph and videotape their own descents, jumps and tracks to show off later. Helmet cams have become so ubiquitous that they are “almost the norm” at Steamboat Ski & Resort in Steamboat Springs, Colorado. “The cameras take bragging rights to the next level,” said resort spokeswoman Loryn Kasten. Read more of this post

Singapore Says Money-Mule Cases Increase as Residents Swindled

Singapore Says Money-Mule Cases Increase as Residents Swindled

Singapore police and banks urged the city-state’s residents to be wary of fraudsters seeking to use their bank accounts to funnel illegal funds after an increase of reported cases this year. The number of reported cases of illegitimate cash being given to so-called money mules to hand over to a third party increased to 133 in the first nine months of this year, up from 93 for all of 2012, the police, the city’s bank association and the National Crime Prevention Council said in a statement today. The amount of illegal monies in those cases fell to S$15.5 million ($12.4 million) from 2012’s S$24.6 million. Read more of this post

Many Singapore SMEs have no growth strategy: Poll

Many SMEs have no growth strategy: Poll

Companies are busy trying to cut costs and raise productivity 

Published on Nov 22, 2013
Singapore’s small and medium-sized enterprises (SMEs) seem to have lost their appetite for growth. — ISTOCKPHOTO AND ST ILLUSTRATION

By Yasmine Yahya

BACKGROUND STORY

TOUGH TIMES

Only 7 per cent expect to achieve double-digit growth – the lowest level in the study’s 11-year history.

44 per cent expect no discernible growth, while another 9 per cent expect revenues to shrink.

Markedly fewer firms are doing business overseas: 46 per cent, down from 54 per cent last year.

75 per cent this year say they have a business strategy, down from 85 per cent last year.

Singapore’s small and medium-sized enterprises (SMEs) seem to have lost their appetite for growth.
They are too focused on grappling with an ever tougher business environment, a new survey has found. Read more of this post

The future of the oceans: Acid test; The world’s seas are becoming more acidic. How much that matters is not yet clear. But it might matter a lot

The future of the oceans: Acid test; The world’s seas are becoming more acidic. How much that matters is not yet clear. But it might matter a lot

Nov 23rd 2013 |From the print edition

HUMANS, being a terrestrial species, are pleased to call their home “Earth”. A more honest name might be “Sea”, as more than seven-tenths of the planet’s surface is covered with salt water. Moreover, this water houses algae, bacteria (known as cyanobacteria) and plants that generate about half the oxygen in the atmosphere. And it also provides seafood—at least 15% of the protein eaten by 60% of the planet’s human population, an industry worth $218 billion a year. Its well-being is therefore of direct concern even to landlubbers. Read more of this post

Brookfield Asset Management regularly generates hundreds of millions in profit through complex related-party dealings

Brookfield’s Looking-Glass World

By: RODDY BOYD | November 18, 2013

Edel Rodriguez

A wry investor might be forgiven for concluding that peering at Toronto-based Brookfield Asset Management’s filings is akin to Lewis Carroll’s Alice peeking behind the mirror and finding a universe in reverse. Consider the third-quarter earnings just released by the real estate management, energy and infrastructure conglomerate, disclosing a handsome $813 million in net income for those three months, walloping the $334 million the public company reported for the same period last year. But instead of popping corks, investors who read the filing will probably want to reach for a bottle of aspirin. Read more of this post

A rise of passives, a rise of scrutiny

November 15, 2013 6:26 pm

A rise of passives, a rise of scrutiny

By Chris Flood

Index-based investing is expanding rapidly across global financial markets in a shift that offers big rewards to providers of popular benchmarks. It is also, however, attracting growing scrutiny from regulators. The most visible evidence for the rise of index-based investing comes from growth in the exchange traded funds industry which now commands assets of $2.3tn. Trillions of dollars more are held in index-based portfolios by pension and sovereign wealth funds and other institutional investors. Read more of this post

The Balkanisation of banking: Putting Humpty together again; Regulators risk fatally fracturing the financial system. It need not be so

The Balkanisation of banking: Putting Humpty together again; Regulators risk fatally fracturing the financial system. It need not be so

Nov 23rd 2013 |From the print edition

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OF THE many things that keep financial regulators awake at night, perhaps the most alarming prospect is the collapse of a sprawling international bank with local operations. “The one thing they don’t want to be blamed for is if a big foreign bank blows up in their market,” says a senior executive at just such a bank. Read more of this post

Investing in frontier markets: Fishy tale; The story of a dollar-bond issue in Mozambique is a parable of easy money

Investing in frontier markets: Fishy tale; The story of a dollar-bond issue in Mozambique is a parable of easy money

Nov 23rd 2013 | MAPUTO |From the print edition

A DESPERATE search for bonds that pay a decent rate of interest and a keen desire for exposure to economies that are still growing quickly have taken rich-world investors to some exotic places. The raciest bets are made in so-called frontier markets, poorer places with even less mature financial sectors than emerging markets. Africa is full of them. Rwanda and Tanzania, for example, have found willing buyers this year for their debut issues of dollar-denominated bonds. The farthest edge of the investing frontier has now reached Mozambique. Read more of this post

Singapore PM Lee: Strengthen system that let you succeed

PM Lee: Strengthen system that let you succeed

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MESSAGE TO STUDENTS: Prime Minister Lee Hsien Loong and the principal of CHIJ St Nicholas Girls’ School, Mrs Tan Wai Lan, at the 80th anniversary of the school on Monday. The Chinese characters “yin shui si yuan” on the easel is a Chinese saying meaning “know where you come from”.

Friday, November 22, 2013 – 07:30

The New Paper

Schools, especially those with students who have done well, should imbue them with the spirit of service, Prime Minister Lee Hsien Loong said on Monday. Mr Lee was speaking at an event marking the 80th anniversary of the CHIJ St Nicholas Girls’ School. He said that while the students may have succeeded through talent and hard work, they also had to realise that this is possible because they live in a society with a meritocratic system that rewards them for their abilities and develops them to their potential, one that cheers those who succeed instead of cutting them down. Read more of this post

How Mohnish Pabrai Uses Checklists

Hierarchy Is Overrated

Hierarchy Is Overrated

by Tim Kastelle  |   2:00 PM November 20, 2013

Maybe you’ve heard the old cliché – if you’ve got “too many chiefs,” your initiative will fail. Every time I hear it, I wonder, “Why can’t everyone be a chief?” For instance, the Second Chance Programme is a group that raises money to help reduce homelessness among women here in Southeast Queensland.  It’s achieved impressive results since being founded in 2001, and is run by a committee of about ten people. In the early days, a management consultant used the familiar chiefs/Indians line to predict they’d fail. This kind of thinking assumes: You need a hierarchy to succeed. The people that do the work are of lower status than those that decide what work to do. Organizations that don’t follow the norms are likely to fail. I think that all of these ideas are wrong.  Second Chance has certainly been very successful with their flat, non-hierarchical structure.  They have achieved a great deal, while keeping their overhead close to $0.  If the structure of the management committee was a problem, they would have failed by now. But maybe this kind of structure only works for not-for-profits? Nope.  About 20% of the world’s websites are now on the WordPress platform – making it one of the most important internet companies.  And yet, Automattic, the firm behind WordPress, only employs a couple hundred people, who all work remotely, with a highly autonomous flat management structure.  GitHub is another highly successful firm with a similar structure. Read more of this post

Old hands steered by the young: The CEO of Tesco is among the veterans using reverse mentors to bridge a generation gap

November 20, 2013 4:24 pm

Old hands steered by the young

By Emma Jacobs

Every month, Tesco chief executive Philip Clarke meets 28-year-old Paul Wilkinson for a mentoring session. In this time Mr Wilkinson, who works in the British supermarket’s technology research and development division, teaches his boss everything he knows. For this is not the traditional professional development practice in which a young, junior employee is given career advice by a senior manager. Instead, the roles are reversed. Read more of this post

Morpher’s Flat-Folding Bike Helmet

Morpher’s Flat-Folding Bike Helmet

By Karen Epper Hoffman November 21, 2013

Innovator: Jeff Woolf, OBE
Age: 54
Title: Managing director of London-based Morpher Helmet

Form and function: A half-pound helmet that can fold up into a block measuring 6.5 inches by 12.9 inches by 1.9 inches, compact enough to fit into a bag or briefcase.

tech_innovation48_970

 

Here’s The 5-Sentence Personal Essay That Helped JFK Get Into Harvard

Here’s The 5-Sentence Personal Essay That Helped JFK Get Into Harvard

PETER JACOBS NOV. 20, 2013, 1:19 PM 49,634 53

Without a doubt, John F. Kennedy is one of Harvard University’s most accomplished and impressive graduates. However, the former POTUS was not the best applicant when he decided he wanted to take up residence in Cambridge, Mass. He had poor grades from high school, and while he had spent two months at Princeton University before leaving due to an illness, even his own father called him “careless.” In anticipation of the 50th anniversary of JFK’s assassination, The Washington Post has highlighted many of his school records, including a handwritten Harvard application. You can check out the digitized originals at the John F. Kennedy Presidential Library and Museum. As part of the Harvard application — which at the time was a mere three pages — students were asked to give a “careful answer” to the question “Why do you wish to come to Harvard?” Here’s what a young JFK had to say:

The reasons that I have for wishing to go to Harvard are several. I feel that Harvard can give me a better background and a better liberal education than any other university. I have always wanted to go there, as I have felt that it is not just another college, but is a university with something definite to offer. Then too, I would like to go to the same college as my father. To be a “Harvard man” is an enviable distinction, and one that I sincerely hope I shall attain.

April 23, 1935
John F. Kennedy

From the JFK library, here’s the original:

john kennedy jfk harvard university application essay

 

German “luxury bishop” settles with court over 1st class flight-to-poverty case

German “luxury bishop” settles with court over 1st class flight-to-poverty case

Mon, Nov 18 2013

BERLIN (Reuters) – A German court has dropped for the time being an investigation into a Roman Catholic prelate known as the “luxury bishop” over accusations he lied under oath about taking a first-class flight to visit poverty projects in India. State prosecutors had sought to have Bishop Franz-Peter Tebartz-van Elst of Limburg fined for making false affidavits about the flight, but the court accepted a 20,000-euro settlement. Read more of this post

From physician to Web entrepreneur of online medical portal DocDoc

From physician to Web entrepreneur

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SINGAPORE — As someone used to plying 20-hour shifts in a highly stressful hospital environment, Dr Dawn Soo was no stranger to hard work. But it was not until she made the transition from physician to entrepreneur that she truly understood the concept.

BY FRANCIS KAN –

4 HOURS 33 MIN AGO

SINGAPORE — As someone used to plying 20-hour shifts in a highly stressful hospital environment, Dr Dawn Soo was no stranger to hard work. But it was not until she made the transition from physician to entrepreneur that she truly understood the concept. “Your brain never (really) stops working. Starting a company from scratch is like having a baby — you don’t have time for anything else,” said the 30-year-old, one of five co-founders of DocDoc, an online medical portal. Read more of this post

Cineworld founder started off by testing auditorium seats

November 20, 2013 6:14 pm

Cineworld founder started off by testing auditorium seats

By Robert Cookson

Steve Wiener, the New York-born cinephile who built the UK’s biggest cinema chain, started his career as an usher. Mr Wiener was studying at the University of Miami in 1970 when he took a part-time job at a cinema in Coral Gables, Florida. One of his first duties was to sit and rock in every chair in a 900-seat auditorium to check that they had been installed correctly. After graduating, he quickly worked his way up through the ranks of the US cinema industry. In 1991 he moved to the UK to become managing director of Warner Bros Europe – his first trip outside the US. Read more of this post

Alli Webb, a former hairstylist, built Drybar, a 32-store chain of salons that offer $40 blowouts. She says repeat clients are one of the keys to sustaining the business, as women pursue an affordable luxury

Hair Chain Drybar Finds Niche in Affordable Luxury

Co-Founder Says Repeat Clients Provide the Lift to Sustain Business on $40 Blowouts

CAITLIN HUSTON

Nov. 20, 2013 8:37 p.m. ET

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Drybar entrepreneur Alli Webb: ‘We’ve changed behavior, which is really amazing and humbling…. We are kind of like the fabric of people’s lives.’ Annie Tritt for The Wall Street Journal

Alli Webb started a door-to-door hairstyling business in 2008 as a way to get out of her house and take a break from rearing her two kids. The former hairstylist saw the need for a service that focused on providing affordable, high-quality blowouts—in which a client’s hair is washed and blow-dried into a style, without being colored or cut. The business spread through word-of-mouth, and Ms. Webb soon found herself unable to keep up with demand. Her side project turned into a company with a projected $40 million in revenue this year. Read more of this post

Sequel The Hunger Games: Catching Fire seen to get most of revenue from overseas

Updated: Thursday November 21, 2013 MYT 9:42:23 AM

Sequel The Hunger Games: Catching Fire seen to get most of revenue from overseas

LOS ANGELES  When the sequel “The Hunger Games: Catching Fire” debuts worldwide on Friday, industry analysts believe the movie from studio Lions Gate Entertainment  will set international box offices ablaze in a bigger way than the first film. The original “Hunger Games” movie in 2012 became a smash hit with strong sales in the United Statesand Canada, but pulled in less than half of its box office grosses in overseas markets, a modest foreign take by blockbuster standards. Today’s biggest Hollywood movies often earn 50 to 70 percent of their revenue overseas. Read more of this post

Singapore-sized iceberg threatens global shipping

Singapore-sized iceberg threatens global shipping

LONDON — An iceberg estimated to be about the size of Singapore has broken off from Antarctica and could threaten shipping, NASA’s Earth Observatory announced on Nov 15.

BY –

14 MIN 19 SEC AGO

LONDON — An iceberg estimated to be about the size of Singapore has broken off from Antarctica and could threaten shipping, NASA’s Earth Observatory announced on Nov 15. The news sparked off tracking efforts by UK researchers, who were given a £50,000 (S$101,000) emergency grant to fund a six-month project predicting the movements of the 700 square km giant block of ice and possible environmental impacts. The team will track the progress of the iceberg through satellite data, reported The Daily Telegraph. Read more of this post

The author of The Lean Startup is thinking big about the challenges facing companies in an economy driven by innovation

November 12, 2013 / Winter 2013 / Issue 73

Why Eric Ries Likes Management

The author of The Lean Startup is thinking big about the challenges facing companies in an economy driven by innovation.

by Paul Michelman

Most of us think of entrepreneurship as the antithesis of traditional management, especially when it comes to the stars of the digital economy, like, say, Eric Ries. But Ries, who is known for extolling the virtues of rapid-fire innovation—he coined the term minimum viable product to describe his methodology for getting new products (sometimes barely functioning prototypes) into the hands of customers as early as possible—views things in a different light. Entrepreneurship is not an opposing force to “serious” management, he says, but its own distinct, and complementary, variety of it. Read more of this post

What Inexperienced Leaders Get Wrong (Hint: Management)

What Inexperienced Leaders Get Wrong (Hint: Management)

by Rosabeth Moss Kanter  |   8:00 AM November 21, 2013

There are an awful lot of leaders in trouble these days. Not just those under attack for ethical lapses, accounting problems, or excessive compensation – retired college presidents are the latest to join corporate executives in the latter category. The trouble I’m referring to is getting new ideas implemented and brought to scale. The leaders range from entrepreneurs with great ideas but a flaw preventing expansion (Tesla?) to new CEOs with a vision their stakeholders won’t rally behind that won’t guarantee results anyway. Read more of this post

Cholesterol Drug From Trash Seen Preventing Heart Attack

Cholesterol Drug From Trash Seen Preventing Heart Attack

A way to boost good cholesterol and avert repeat heart attacks, which has eluded two of the world’s biggest drugmakers, may have been sitting in CSL Ltd. (CSL)’s trash. The Australian company realized that instead of discarding unused blood components left over from making hemophilia, burns and immune-system treatments, it could extract the beneficial cholesterol known as HDL and infuse it into patients. The idea is that HDL therapy may quell inflamed arteries and dissolve the life-threatening plaques that clog them, said Andrew Cuthbertson, CSL’s chief scientist. Read more of this post

Prince Frog Plummets on Short Seller’s Report: Hong Kong Mover

Prince Frog Plummets on Short Seller’s Report: Hong Kong Mover

Prince Frog International Holdings Ltd. (1259) plunged 22 percent as it traded in Hong Kong for the first time since allegations from short-seller Glaucus Research Group dropped the stock by a record last month. The shares of the Chinese maker of children’s care products such as bath soap and lotion fell HK$1 to HK$3.63, the lowest in eight months. Read more of this post

In Retailing Years, PetSmart Shows Its Strength

In Retailing Years, PetSmart Shows Its Strength

SPENCER JAKAB

Nov. 21, 2013 4:40 p.m. ET

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Before Americans became obsessed with 140-character bon mots or status updates, cat videos dominated cyberspace. Even today, we spend over 10 times as much on our pets as the combined U.S. revenue of Twitter Inc. TWTR +2.46% and Facebook Inc. Fluffy and Fido aren’t only big business but fairly recession-proof, as shareholders ofPetSmart  Inc. PETM +1.44% happily discovered. The retailer went public 20 years ago but spent the first 15 tracking the broad stock market. It fell hard in the early months of the financial crisis as investors figured superpremium pet foods, if not pets themselves, would be a casualty of the downturn. Read more of this post

Rivals Aim to Break German Hold on China Luxury-Car Market

Rivals Aim to Break German Hold on China Luxury-Car Market

U.S., British and Swedish Car Makers Spending Billions of Dollars to Crack Growing Demand

COLUM MURPHY

Nov. 20, 2013 2:01 p.m. ET

GUANGZHOU, China—For Chinese car buyers, luxury means German. Audi AGNSU.XE +0.30% , BMW AG BMW.XE +0.31% and Daimler AG DAI.XE +0.12% ‘s Mercedes-Benz combined hold more than 70% of the country’s about $40 billion annual market for high-end vehicles. Now, a club of smaller scale luxury brands have China in their cross hairs. In the past yearGeneral Motors Co. GM -0.84% ‘s Cadillac, Tata Motors Ltd. 500570.BY -0.61% ‘s Jaguar Land Rover, and Chinese-owned Swedish brand Volvo have detailed plans to spend billions of dollars on factories in China that would bring at least half a million additional luxury cars to the market beginning 2015. Read more of this post

Reforming China’s state-owned firms: From SOE to GLC; China’s rulers look to Singapore for tips on portfolio management

Reforming China’s state-owned firms: From SOE to GLC; China’s rulers look to Singapore for tips on portfolio management

Nov 23rd 2013 | HONG KONG |From the print edition

SHORTLY before his confirmation as China’s “paramount leader” in 1978, Deng Xiaoping paid a visit to fast-growing Singapore. He planted a tree on a hill overlooking Jurong, a bustling industrial park built on what was once marshy wasteland close to the city-state’s harbour. Singapore’s success as a trading hub impressed Deng, who imposed his vision of economic reform on China’s Communist Party the following month, at an historic meeting known as the “third plenum”. Read more of this post