Saturday, 24 January 2009
Asia braces for tough tourism year
Across Asia, hotels, airlines and tourism operators are bracing for another tough year as the financial crisis sees long-haul visitors remain at home, and regional travellers tighten purse-strings with shorter, budget trips.
China Responds Tartly to U.S. on Currency
Whether it was a shot across the bow or a simple restatement of his boss’s views, Timothy Geithner’s assertion that China “manipulates” its currency has complicated a crucial front in President Barack Obama’s efforts to improve relations with the world.
Property slump to aggravate Asian economic slowdown
Slumping Asian property markets could intensify the region’s economic downturn this year, further undermining consumer and investor confidence and prompting homeowners to tighten spending.
China warns of long-term ills
China must do more to ease public distress as it battles a slowing economy and rising unemployment, a leadership meeting said, warning officials the global slowdown was colliding with the nation’s reckless mode of growth.
Private housing supply shrinking as prices fall
Developers delay projects’ expected completion dates to beyond 2011
Why a near-term rally may not be in the stars
Astrologers and fung shui experts have given investors hope that the market may improve during the Year of the Ox and stocks could bottom out in the summer months, like a cow’s bulging belly!
Shanghai prepares reit launch to bolster sluggish property market
Shanghai, the mainland’s financial hub, was set to launch a real estate investment trust this year to boost the slumbering property market, a senior city official said.
Little secrets of ‘out-of-business’ sales
Do ‘closeout’ sales mean the lowest prices? Not always. And where did all that extra merchandise come from?
KepLand’s bleak results may set tone for industry
But measures announced during the Budget will help alleviate some of the burdens of property developers.
CapitaLand yet to make decision on fund-raising
Firm has received various such proposals, which include rights issues
Commercial rents feel the slowdown
Leases and prices of industrial and office space fall in Q4 2008 after years of steady gains
Subtle shifts expected in US policy on Taiwan
But overall, Mr. Obama’s administration remains uncertain on this issue and is unlikely to issue a comprehensive policy statement on Taiwan. Several experts on US-Taiwanese relations do not expect much to change, even though they hope he will promote relations among the US, the mainland and Taiwan that will benefit all parties.
Freezing weather hobbles holiday travel
The freezing weather that has gripped much of the mainland in the past few days - disrupting the plans of hundreds of thousands of travellers rushing home for the Lunar New Year - will last for another day or two and continue to move south, meteorologists say.
Theme park dreams are built on sand
Netizens on the mainland have been up in arms over the plan by Maanshan to rebrand itself as China’s “City of Bathing”. Maanshan’s officials decided in December that they could turn the city, in Anhui province, into a tourist destination by touting the delights of its many bathhouses - as if Maanshan was one of the English spa towns founded by the Romans, instead of the steel manufacturing hub it actually is.
Step up action on fake notes, banks told
The central bank has warned commercial banks and financial institutions on the mainland to watch out for counterfeit banknotes ahead of the Lunar New Year.
Sanlu just a scapegoat in scandal, says lawyer
Sending top Sanlu executives to jail and executing milk middlemen does not resolve the deep-seated problems in the country’s dairy industry and food-safety regulation system, experts say.
Suspect's home searched
Haiyang Zhu is charged with first-degree murder in the slaying of Xin Yang.
Virginia Tech Police were trying to verify the authenticity of a posting on a Chinese-language blog earlier this month under the name Haiyang Zhu that expressed frustration over problems including stock losses, Chief Wendell Flinchum said Friday.
Beijing relaxes property rules
Restrictions on foreigners buying property in the Chinese capital have been relaxed for 2009, state media reported Saturday, as Beijing moves to stimulate a sluggish housing market.
DPP allies urge Chen to admit corruption
Political heavyweights in Taiwan’s pro-independence camp have turned against former president Chen Shui-bian, urging him to plead guilty to corruption charges.
Australia’s richest woman seeks Chinese partners for mine projects
Australia’s richest woman, Gina Rinehart, has a team in China seeking partners to finance her second iron ore project and a coal mine, betting the Asian nation will succeed in engineering a recovery.
Dongfeng targets 6pc growth in vehicle sales
Dongfeng Motor Corp, the state-owned parent of Dongfeng Motor Group, has set a lower target for vehicle sales growth of 6.06 per cent this year, compared with the 16.12 per cent expansion last year, as a slowing economy crimps demand.
Analysts see second-half market recovery as valuations hit bottom
The Hong Kong market is bracing for strong headwinds in the first half of this year, but may be positioned for a rebound in the second half as valuations bottom out and draw in bargain hunters, according to forecasts from leading investment banks.
Chiang back in favour at hall
Taiwan has decided to restore the name of a memorial hall dedicated to late leader Chiang Kai-shek after it was renamed the Taiwan Democracy Memorial Hall more than a year ago.
Friday, 23 January 2009
US Trade War with China?
US president Barack Obama has set the stage for a possible trade war with China by branding the Asian giant a currency manipulator, a term his predecessor George W. Bush had skilfully avoided despite pressure from lawmakers.
Decapitated
Xin Yang, a 22-year-old graduate student from Beijing, was decapitated by a fellow Chinese student
Grand Master Yap: Hard times ahead
“Money is the king in these bad times. The worse is yet to come. The years 2009 until 2012 will be bad,” he said, adding that the economy would only bounce back in 2013.
Hard Landing vs. Stimulus by Andy Xie
The market will come back only when China and the U.S. have completed sufficient structural reforms to create a sustainable growth cycle.
No Time for Backsliding on Bank Reform
The grumbling that followed foreign investor pullouts must not weaken China’s resolve to continue banking reform.
Fitch: China Can't Avoid a Hard Landing
The much feared hard landing of the Chinese economy is actually underway, says James McCormack, MD & head of sovereign ratings at Fitch Ratings, as he expects 2009 GDP to rise just 6%. He tells Cheng Lei & CNBC's Amanda Drury more.
Video
Video
Carmakers Clutch Wheel as Market Slides
Growth rates are slipping for China’s auto industry, but domestic and global manufacturers remain committed to the huge market.
Thursday, 22 January 2009
CLSA fung shui index points to more trouble in Year of the Ox
Investors looking forward to a fresh start have been counting the days until the Year of the Ox kicks off, but the zodiac signs point to more trouble ahead, according to CLSA’s fung shui index released yesterday.
China lawyers to block sale of Qing bronzes
A planned Paris sale of two Qing Dynasty bronzes from the late French designer Yves Saint Laurent’s art collection is raising the ire of Chinese patriots who say they may sue auction house Christie’s International because the items were stolen from China.
Global retailers forced to re-strategise as China slows
Some have been over-extended as their home markets collapse
How Asia can profit in the long term
Changing the pattern of investment will get capital flowing in the region again
Some advice for Geithner
Bear in mind that the interest of the country does not necessarily coincide with the interest of the banks
Temasek's Losses
Temasek lost almost US$2 billion of a badly-timed US$3 billion in Shin Corp at a peak of 49.25 baht(Shin shares are now trading at around 15 baht) in 2006.
This state-linked investment company committed S$401 million in ASX -listed ABC Learning Centres at near the peak price of A$7.30 and then averaged down at between A$1.20 and A$4.00, bringing its commitment to over S$500 million. That investment is now essentially worthless although Temasek has yet to write it down.
The company also bought 19% of LSE- listed Standard Chartered in 2006 only to see the market value of that stake melt 55% by November 21st.
More fiascos include a 975 million pound stake in Barclays Bank bought at the peak of 740 pence(with a further 100 million to subscribe for a rights issue at 282 pence), which have now sunk over 70% at 138 pence.
Most heinous of all is its US$6.88 billion stake in Citigroup bought with a minimum conversion price of $31.34. Citigroup has since plunged 88% to $3.71, singlehandedly delivering S$9.11 billion of red ink to Temasek’s books.
Overall, the paper loss on these bank investments has exceeded S$35 billion as of October 21st.
This state-linked investment company committed S$401 million in ASX -listed ABC Learning Centres at near the peak price of A$7.30 and then averaged down at between A$1.20 and A$4.00, bringing its commitment to over S$500 million. That investment is now essentially worthless although Temasek has yet to write it down.
The company also bought 19% of LSE- listed Standard Chartered in 2006 only to see the market value of that stake melt 55% by November 21st.
More fiascos include a 975 million pound stake in Barclays Bank bought at the peak of 740 pence(with a further 100 million to subscribe for a rights issue at 282 pence), which have now sunk over 70% at 138 pence.
Most heinous of all is its US$6.88 billion stake in Citigroup bought with a minimum conversion price of $31.34. Citigroup has since plunged 88% to $3.71, singlehandedly delivering S$9.11 billion of red ink to Temasek’s books.
Overall, the paper loss on these bank investments has exceeded S$35 billion as of October 21st.
America needs to re-create self-sustaining spending
Franklin Roosevelt’s popularity with the voters was all-important for America’s conquest of the Depression. Pray that Mr. Obama’s emerging critics will not delay and jeopardise the return of prosperity by 2012 or sooner.
What a small city can teach Beijing about fighting corruption
One cannot fault the mainland leadership for not trying hard enough to combat corruption, something they admit could spell the end of the Communist Party’s rule.
New era beckons for M&A lending
Domestic and foreign banks in China are welcoming a change in regulations that will create a new market for merger and acquisition lending to mainland companies and their offshore special-purpose vehicles.
Chinese banks may not be as solid as they look
As a fresh attack of the jitters shakes the world’s financial system, the stocks of mainland banks listed in Hong Kong have held up relatively well. Unfortunately, their apparent stability could prove an illusion.
Cheaters use spy gear on China’s civil service exam
More than 1,000 applicants were caught cheating on China’s civil servant exams, with some using spy technology such as micro-earpieces and wireless transmitters, state media reported Monday.
Asian-Americans Make a Mark
When three newly elected Chinese-American city supervisors climbed on stage in Chinatown, flanked by dragon dancers and lit up by camera flashes, they were hailed for making history in a city their forebears have shaped since the Gold Rush Days.
200 thugs stop judges executing court order
A gang of 200 thugs successfully prevented 10 judges and court marshals from executing a court order in Hebei province on Saturday, dealing another severe blow to the country’s frail rule of law.
China’s Flagging Economy - Strong as an Ox?
China’s annual GDP growth falls to 6.8%. How much worse can it get?
Ex-Citibank Relationship Manager Fined
The first of seven ex-Citibank employees who took clients’ information before leaving to join rival UBS was fined a total of $173,000 on Thursday.
Chinese Truffle ‘Impostors’
Sold for a 20th of the price, the Chinese truffle looks so similar to the prized French delicacy, the Perigord black truffle or tuber melanosporum, that only experts can tell them apart.
Nightmare train journeys have dream New Year destination
Si Yuefeng was exhausted as he stumbled off a decrepit train after 28 hours of standing up, yet he was happy as the nightmare journey had finally brought him home for the Chinese New Year.
Mainland’s urban-rural wealth gap widens
Mainland’s yawning urban-rural wealth gap widened further last year even as income growth slowed, lending statistical support to concerns that the economic slump and rising unemployment could spark social tensions.
Mainland’s urban-rural wealth gap widens
Mainland’s yawning urban-rural wealth gap widened further last year even as income growth slowed, lending statistical support to concerns that the economic slump and rising unemployment could spark social tensions.
Taiwan ex-leader urged to face justice after relatives plead guilty
“Stop lying. It’s time to honestly face justice,” she said.
Two sentenced to death over tainted milk
A mainland court on Thursday sentenced two men to death for their role in the production and sale of melamine-tainted milk that killed at least six children and made nearly 300,000 ill.
Police detain two over Myanmar kidnap scandal
Police in north China have detained two people allegedly linked to the Myanmar-based kidnapping of at least 50 teenagers whose parents were sent ransom demands, state media reported Thursday.
Britain urges China to play ‘full role’ in world
London urged Beijing on Wednesday to play its part on the world stage by helping to tackle the global financial crisis and to combat climate change.
Shanghai police detain Chinese Internet porn sensation Huang - ‘Kappa Girl’
The Chinese Internet sensation known as “Kappa Girl” has been detained by police in Shanghai after attempting to cash in on her popularity as an online porn star by selling off interviews for big bucks.
‘Kappa Girl’ fired for sex video
A 12 minute long sex video of a female employee working at the Kappa store in the east building of the Shanghai No.1 Department Store on Nanjing Lu has recently been spreading like wildfire on the Chinese internet...
Chinese Developer Sued by Casino over Loan
An Australian casino has sued Shanghai property developer Yan Liyan - one of the mainland’s richest people - over allegations that she failed to repay loans totalling HK$42.5 million.
Workers Will Have to Contribute in Pension Scheme Revamp
Pension funding shortfalls are causing mainland authorities to slash future retirement payouts for millions of government employees working for non-profit institutions and to force the workers to make contributions.
SGX Proposes Tighter Rules for Married Deals
Higher threshold of $500,000 and earlier reporting meant to enhance transparency
Rural Power Network Ready for Unravelling
The days may be numbered for disputes over who owns the power grids built throughout rural China over the past decade.
Former CAO Boss Returns to China
Chen Jiulin was granted an early release from Changi Prison for good behaviour
Feng Shui Masters See Calmer Markets in Year of the Ox
Stock investors reeling from last year’s market mayhem may take some solace from practitioners of the ancient Chinese art of feng shui, who predict a calmer, if subdued, performance in the coming Chinese Year of the Ox.
CBRC: No ‘Great Leap’ for 2009 Lending
Bank regulators, seeking to balance development and risk control in tough times, have set new goals for commercial lenders.
Australian Winemakers Facing Export Slump
Global demand hurt by financial crisis; shipments down 18% by value in 2008
Guangzhao
(XFN-ASIA) - Singapore-listed Guangzhao Industrial Forest Biotechnology Group Ltd said it will report a loss for the fourth quarter and full-year 2008 because of a decline in timber prices as the result of the weak economy in China.
Teens Tell of Kidnap, Torture in Myanmar
Teenagers Zhang Bo and Li Bin have told of the horror of being kidnapped and taken to Myanmar, where they were tortured until, as one said, “I felt like dying”.
Chen’s Son Pleads Guilty
The son and daughter-in-law of ex-president Chen Shui-bian yesterday pleaded guilty to money-laundering in the latest twist in one of Taiwan’s biggest corruption scandals.
China Sells US Long Term T-bills in Fear of Capital Outflow and Deficits
China is increasing holding of short-term US treasury bills and reducing long-term bills out of the concern over capital outflow and more bond issuance brought by increasing deficit due to Obama’s economic rescue plan.
Can Guangdong Save Its Role Model Status?
Switching to a services economy from a labour-intensive industrial base won’t be easy, but Guangdong Province has little choice.
Architectural Scavenger Finds Treasures from Disappearing Old Beijing
Li Songtang at his museum in Beijing, where he displays relics saved from demolition sites in the rapidly modernizing city
Wednesday, 21 January 2009
Credit Suisse Predicts 300,000 Jobs on the Line Here
A new Credit Suisse report has predicted that an astonishing 300,000 jobs could be lost in Singapore this year and next.
Former CAO Head Released
My best wishes to Chen Jiulin. I know some things are not what it appears to be.
Chen Shui Bian's Kins Plead Guilty
Three relatives of Taiwan’s former president Chen Shui-bian on Wednesday pleaded guilty to charges of money laundering, as part of a massive corruption case in which the ex-leader has been implicated.
World Demand Collapse, Bonds Next!
The US Fed can buy US treasury bonds directly if it wants, but that is effectively monetizing the debt. Even so, the US dollar has held up better than many people thought. But that cannot last indefinitely.
The End of Banking as we Know it
The rip-roaring performance of financial sector firms isn’t likely to return anytime soon
The Very Expensive Cooking Course by Civil Servant
For a holiday with a difference, a civil servant learns to cook at the famous Le Cordon Bleu in Paris with his family
Sterling’s finished, says Soros partner as the pound plunges to new low
Jim Rogers, who made his fortune when he founded the Quantum Fund with billionaire George Soros, warned investors they should start dumping the pound.
He said: ‘I would urge you to sell any sterling you might have. It’s finished. I hate to say it, but I would not put any money in the UK.’
He said: ‘I would urge you to sell any sterling you might have. It’s finished. I hate to say it, but I would not put any money in the UK.’
Monday, 19 January 2009
Downturn Likely to Hit Chinese Workers Hardest
The economic crisis is set to hit workers harder in China than in any other big economy, with a leading scholar predicting 50 million Chinese people could be out of work this year.
More Hedge Fund Frauds
“Scary, isn’t it but more cockroaches are now forced into the open by the continuing redemptions requests and these fraudsters are unable to borrow anymore to cover their frauds. Besides rising bankruptcies, we are also expecting to see more blood on the street. This is what I called the start of the capitulation. It may sound cruel but it is a process that we have to go through in order to purify the sickness in the financial market. Once the purification is over (I do not know when), it may be time for true investors to re-enter the market again”
Smart Money Should Wait for Wall Street to Fully Capitulate
As a result, the smart thing to do is stay away from stocks until the ranks of optimists thin significantly, the ranks of pessimists swell appreciably, and above all, much clearer signs of capitulation appear - especially in the US, because it can only be a matter of time before this occurs.
Prepare For Many More Madoffs
Get ready for investigators to uncover dozens of more possible Bernard Madoff style frauds.
China Equity Strategy Views by CSFB
Profit warnings shall cap any significant near-term rebound in Chinese stocks
HSBC may need to issue rights
HSBC Holdings Plc, Europe’s largest bank, may need to sell shares in the U.K.’s biggest ever rights issue to shore up its capital position, said investment group and shareholder Knight Vinke Asset Management LLC.
CS Cuts SembMarine to Underperform; S$0.95 Target
Credit Suisse downgrades SembMarine to Underperform from Neutral on worries over major customer Petromena; cuts target to S$0.95 from S$2.15. Broker says Petromena facing US$300 million funding gap on its three rigs under construction at SembMarine’s Jurong yard; “if Petromena cannot raise an incremental US$100 million to take delivery of Petrorig 1 by 30 April, it would trigger a default.” Broker estimates Petromena and its related company LOG Rig jointly owe more than US$1.2 billion to SembMarine, which represents 20% of net order book; “until Petromena’s workout is successfully completed” it may overshadow SembMarine shares, which now +1.8% at S$1.69.
STI Technical Analysis by DB
After a bullish breakout from a symmetrical triangle pattern, the STI has corrected back below the breakout area last week and closed below horizontal support at 1,711 on Thursday. Further downside towards 1,638 seems likely as long as the index does not recapture last week’s high at 1,807 decisively. A break below 1,638 could pave the way down towards the trough at 1,474. As long as prices remain below 1,807, short-term traders may thus consider taking short-positions, especially on a close below 1,638. Aggressive traders should look for a close above 1,807 before taking new long-positions.
HSI - Technical Analysis by DB
Last Tuesday’s breakdown below the lower confine of a congestion zone changes the short-term neutral bias to a negative one. The HSI thereby closed below the intermediate-term uptrend line as well. It would take a decisive recapture of the 14,200/14,300 area to negate the negative outlook and identify this recent drop as a false break and bear trap. Minor resistance is seen at 13,675. Next potential downside targets are 11,815 and 10,676. Investors may await a close above 15,781 before considering taking or adding to long-positions. Short-term traders may sell rallies as long as prices remain below 14,300 on a closing basis.
Sunday, 18 January 2009
How a High-Flying Fraudster Fell to Earth After Plane Death Hoax Failed
Yet unknown to his neighbours the dashing investment advisor faced fraud charges, financial ruin, furious clients and a marriage that was in tatters - and he tried to escape them all by faking his own death in a plane crash. His attempt very nearly succeeded - but was sabotaged by two crucial miscalculations in the air, investigators believe.
Looks like another financial tsunami is coming - just look at...
The deterioration in economic and corporate data continues. I believe that the market has not fully discounted the extent of this deterioration and when it does this will lead to another big wave of selling - another financial tsunami!
Hard Landing Possible, Warn Ratings Agencies
The mainland economy could suffer a “hard landing” this year with a growth rate half its normal pace and face a rising risk of social unrest, international rating agencies warned yesterday.
Israel Faces Questions of War Crimes in Gaza
Your unit, on the edges of Jabaliya, has taken mortar fire from the crowded refugee camp nearby. You plot the launch and go to return fire, and perhaps you notice - or perhaps you don’t, even though it’s on your map - that there is a United Nations school just there, full of internally displaced Gazans. You know that international law allows you to protect your soldiers and return fire, but also demands that you ensure that there is no excessive harm to civilians. Do you remember all that in the panic?
Dealers Caught Cheating in Test for SGX Product
Exam questions leaked; exchange fines a brokerage, makes remisiers re-sit exam
In Once-Booming Tea Region, a Bitter Reality
Before American real estate prices deflated, before the stock market nose-dived and before the Ponzi-madness of Bernard Madoff, there was the Pu’er Tea Debacle of Menghai County.
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