Bamboo Innovator

The long arms of the law: Across Asia, judges are having too much say in politics

The long arms of the law: Across Asia, judges are having too much say in politics

May 10th 2014 | From the print edition

AFTER nearly three years, Yingluck Shinawatra’s stint as prime minister of Thailand drew this week to its inevitable close. The end came not with the bang of a people-power revolution that at one point seemed likely to unseat her; nor with the muted rumble of tanks in a coup like the one that toppled her brother Thaksin from the same job in 2006; still less with the raucous clamour of a contested election, though one had been called for July 20th. Rather, it petered out in the whimper of a court order. Not for the first time the Thai judiciary has intervened to solve a problem that a broken political system could not fix. And not for the first time its intervention was to the Shinawatras’ detriment. Read more of this post

Thailand’s politics: Out of luck; A court ousts Yingluck Shinawatra, pushing the country further towards political breakdown

Thailand’s politics: Out of luck; A court ousts Yingluck Shinawatra, pushing the country further towards political breakdown

May 10th 2014 | BANGKOK | From the print edition

AFTER 1,000 days in power, Yingluck Shinawatra’s time as prime minister came to an abrupt end on May 7th at the hands of the country’s Constitutional Court. Its judges ruled that she had abused her office and had to step down, together with nine of her cabinet ministers. And so the court succeeded where months of street protests had failed in ousting the leader of the Pheu Thai party and younger sister of Thaksin Shinawatra, a former prime minister removed in a military coup in 2006 whose shadow still falls over Thailand. The court’s decision only widens divisions in the country’s politics. Divining a peaceful way out of the present crisis is not easy. Read more of this post

A century of capital structure: The leveraging of corporate America

A century of capital structure: The leveraging of corporate America

John R. Graham, Mark T. Leary, Michael R. Roberts, 6 May 2014

During the recent financial crisis, not much attention has been paid to the indebtedness of non-financial corporations, as little is known about what drives their financing. This column looks at financial policies of non-financial corporations over the last century. It shows evidence that a primary factor affecting the amount of corporate borrowing is the amount of borrowing by the government. Government borrowing crowds out the ability of the corporate sector to borrow. Thus, policymakers should be cautious in altering government policies in an attempt to reduce corporate debt usage. Read more of this post

Blame the media, China property edition

Blame the media, China property edition

David Keohane | May 07 11:07 | 7 comments | Share

The bank that brought “adaptive pricing” to the China property euphemism table just two weeks ago is getting quite a bit blunter.

We’ll spare you more charts today, but here’s a chunk or two from Citi’s Oscar Choi and Marco Sze who have been forced into a shower of scare quotes by weaker than expected April data (emphasis in original): Read more of this post

The China over-invoicing export distortion is back (sort of)

The China over-invoicing export distortion is back (sort of)

Izabella Kaminska | May 08 07:04 | 2 comments | Share

Let’s face it. Chinese national statistics are to some degree always treated with a pinch of salt by analysts and economists alike.

That said, there’a s big difference between massaging subjective inputs in statistical methodologies and failing to adjust for misleading economic activity driven by actual economic behaviour. Read more of this post

Malaysia’s SC probes five firms for unlicensed contracts dealing

Updated: Thursday May 8, 2014 MYT 7:57:32 AM

SC probes five firms for unlicensed contracts dealing

“To assist SC’s investigation, relevant documents and IT equipment were seized. Statements were also recorded from the staff of the companies and other persons present during the raids,” the SC said. None of the companies or its representatives were licensed by SC to solicit for monies nor to deal in futures contracts. “The public is strongly advised not to deal with any unlicensed persons in connection with dealing in futures contracts and to contact SC should they have information about such dealings,” the regulator added. Read more of this post

Everything is rigged, art edition

Everything is rigged, art edition

Izabella Kaminska | May 08 16:23 | 4 comments | Share

John Gapper has an excellent column on Thursday about art auctions, focusing on the degree to which they are fixed or obfuscated by insiders and long-standing established practices. Read more of this post

Li Ka-shing’s withdrawal from China related to new leadership

Li Ka-shing’s withdrawal from China related to new leadership

Staff Reporter

2014-05-10

Recently, a lot of new property projects in China have offered discounts, with some in Beijing having cut prices dramatically in order to find buyers. Read more of this post

Water woes intensify in China due to rapid urbanization

Water woes intensify in China due to rapid urbanization

Staff Reporter

2014-05-11

Water shortages in China have been exacerbated due to rapid urbanization and industrialization, with many new cities facing water crises. Read more of this post

China’s shadow banking system a threatening US$4.3tn

China’s shadow banking system a threatening US$4.3tn

Staff Reporter

2014-05-11

The size of China’s shadow banking system is around 27 trillion yuan (US$4.3 trillion), only around one fifth of the banking sector’s assets, said a Chinese official. The low proportion does not mean the system’s risks should be underestimated; the underground sector still has the power to drag down the traditional banking sector and the real economy, reports our Chinese-language sister newspaper Want Daily. Read more of this post

The economically acceptable limits of a Chinese property downturn

Won’t somebody think of the property developers?

David Keohane | May 09 09:44 | 1 comment | Share

And so it goes, from Nomura’s Zhiwei Zhang:

Today’s 21st Century Business Herald reports that in Jiangsu Province the Rongchen Property Development Co. Ltd. defaulted on a RMB100m trust product that came due last August. The paper says that as yet the principal and interest have not been fully paid.

Read more of this post

In Indonesia, moderate Islamic party returns to political centerstage

In Indonesia, moderate Islamic party returns to political centerstage

Sun May 11, 2014 4:49am EDT

By Kanupriya Kapoor and Randy Fabi

JAKARTA (Reuters) – Indonesian presidential frontrunner Joko “Jokowi” Widodo has joined hands with the country’s most popular Islamic party, cementing the surprise resurgence of Muslim parties in this year’s election and possibly renewing their voice in the new government. Read more of this post

Palm oil imports latest casualty as China tightens credit

Updated: Thursday May 8, 2014 MYT 11:28:03 AM

Palm oil imports latest casualty as China tightens credit

Beijing’s crackdown on commodity financing in the face of slowing domestic demand could hit global palm oil demand – Reuters Photo. Read more of this post

Revamping ETFs: Exchange-traded funds are undergoing a bit of a renaissance, with new styles of indexing. How smart is smart beta?

Revamping ETFs

Exchange-traded funds are undergoing a bit of a renaissance, with new styles of indexing. How smart is smart beta?

BEVERLY GOODMAN

May 10, 2014 2:23 a.m. ET

Smart beta. It’s the ETF industry’s version of “New! And improved!”

Most of us range from fairly skeptical to deeply suspicious of any marketing terminology when it comes to buying cars or homes or Google Glass. But that doesn’t stop Wall Street from peddling one elixir after another, wrapped in academic research and carefully worded nonpromises. The latest? Smart beta, an umbrella term for index investing designed to beat the market, rather than simply match it. Read more of this post

Fluid control is a $130 billion market worldwide; Flowserve Sees Big Opportunities to Grow; A specialist in fluid-control products, the company is thriving along with its industrial customers

Flowserve Sees Big Opportunities to Grow

A specialist in fluid-control products, the company is thriving along with its industrial customers.

CHRISTOPHER C. WILLIAMS

Read more of this post

World Bank: Indonesia World’s 10th Largest Economy

World Bank: Indonesia World’s 10th Largest Economy

By Jakarta Globe on 11:29 pm May 04, 2014

1.  Indonesia has the 10th largest economy in the world, according to a recent report by the World Bank, with the country contributing 2.3 percent of global economic output.

Read more of this post

Indonesia Lags in Innovative Thinking

Indonesia Lags in Innovative Thinking

By Basten Gokkon on 11:54 pm May 06, 2014

1.  The World Bank announced Indonesia as the 10th largest economy in the world last week, jumping six ranks from its previous place, yet the country still lags in technological innovation, which is key to becoming a great nation, officials and experts say.

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Indonesia Needs More Listed Companies Ahead of AEC in 2015, OJK Says

Indonesia Needs More Listed Companies Ahead of AEC in 2015, OJK Says

By Yohanes Sirait on 06:47 pm May 05, 2014

1.  Indonesia needs to have more listed companies on the local bourse in anticipation of the advent of the Asean Economic Community at the end of 2015, according to Rahmat Waluyanto, the deputy chairman of Indonesia’s Financial Services Authority.

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Aging Indonesia Oil Fields Risk Bond Supply Shock

Aging Indonesia Oil Fields Risk Bond Supply Shock

By Yudith Ho & Fitri Wulandari on 12:04 pm May 06, 2014

1.  Indonesia’s aging oil fields are swelling fuel-subsidy costs, prompting a unit of the nation’s largest bank to forecast the government will sell almost 40 percent more bonds than last year.

Read more of this post

In China’s Xinjiang, Economic Divide Seen Fueling Ethnic Unrest

In China’s Xinjiang, Economic Divide Seen Fueling Ethnic Unrest

By Michael Martina on 01:37 pm May 07, 2014

Urumqi, China. Hundreds of migrant workers from distant corners of China pour daily into the Urumqi South railway station, their first waypoint on a journey carrying them to lucrative work in other parts of the far western Xinjiang region. Read more of this post