All posts in category Hong Kong
Posted by cbasdeo09 on February 5, 2013
Societe Generale’s Wei Yao however writes that the impact of urbanization has been “misunderstood and overstated by the market”.
For one, Yao writes that the impact of urbanization on China‘s productivity growth is decreasing, just like the the direction of demographics on labor force growth.
“For an emerging economy to catch up, moving farmers to manufacturing plants is a key source of productivity gain in the early stage. China’s experience in the past three decades was a typical example.
The 10-year average growth rate of China‘s urban population growth was 4.8% in the 1980s, 4.2% in the 1990s and 3.8% in the 2000s. The impact of this rapid urbanization on total factor productivity (TFP) was particularly pronounced. We estimate that this source accounted for about 30% of the impressive TFP growth.
Posted by cbasdeo09 on January 29, 2013
On one side of the office, the bear.
On the other side, the bull.
Two analysts, same publishing company, two very different views on China’s economy. Their desks are probably no more than five metres apart.
Oh boy, this is going to be interesting.
One says the dragon is about to roar again and take commodities – and selected mining stocks – up with it. And that now’s your chance to buy in on a resources comeback after the market shakedown in 2012.
The other says the Chinese slowdown in 2012 will continue and the recent stock rally and the rebound in the iron ore price are false flags to suck in gullible investors, so watch out.
In today’s Money Weekend, we’ll explore the two sides of the great China debate happening right here in our St Kilda headquarters. Grab a cup of tea, lean forward, engage your brain, and see which of our top analysts you agree with…
The China Bull and the China Bear
In the blue corner, you have Diggers & Drillers editor Dr. Alex Cowie. His message for investors?‘China bears are about to get smoked.’
In the red corner, Sound Money.Sound Investmentshttp://www.soundmoneysoundinvestments.com.au/ editor Greg Canavan says the current rebound firing up the Chinese economy in the past few months is from an unsustainable burst of credit…and that contraction is assured.
Posted by cbasdeo09 on January 25, 2013
According to Huffington Post’s Chris Brummitt, Jakarta, Indonesia — Months behind schedule, the construction crew racing to finish a highway encircling Indonesia‘s traffic-choked capital is being blocked by a determined group of locals and the ramshackle cemetery that is home to their ancestors.
Talks on a new location have yet to reach an agreement accepted by all the relatives of the some 500 people buried there. That has not stopped authorities digging a new cemetery a short distance from the old one – pointlessly according to Yaman, the neighborhood chief.
“There is no way we can agree to that,” said Yaman, pointing to workers hacking through the thick red earth during a midafternoon rain shower. “It will be too noisy. How are we supposed to pray for our ancestors there?”
Indonesia‘s economy is booming. But to sustain and deepen its growth, it badly needs new roads, bridges, power stations and ports. Land disputes such as this one in west Jakarta, and a host of other difficulties from corruption to budget-draining populism, make building such infrastructure a long and costly process. That is preventing the country from attaining the kind of transformational development experienced in a generation by countries such as South Korea and more recently China.
Last week, floods engulfed around 30 percent of Jakarta, including its central business district, dramatically exposing decades of underinvestment in the drainage and flood defenses of the city of 14 million people.
To be sure, beleaguered economies in the West would envy Indonesia‘s current growth rate of more than 6 percent. Coupled with political and social stability, it represents a dramatic change from the Indonesia of 12 years ago, when political crisis, separatist violence and economic meltdown led to fears the massive island nation could break apart.
Posted by cbasdeo09 on January 23, 2013
According to Bloomberg’s News Anuchit Nguyen and Victoria Stilwell, Emerging-market stocks dropped, led by industrial companies, as the International Monetary Fund cut its global growth forecasts and a leading index for China’s economy rose at a slower pace in December.
LG Household & Health Care Ltd. (051900), a South Korean maker of cleaning and personal care products, tumbled the most since 2008 after its profit forecast missed estimates. Hindustan Unilever Ltd. (HUVR) plunged in Mumbai after Credit Suisse Group AG, CLSA Asia- Pacific Markets and Nomura Holdings Inc. cut their recommendations. China Merchants Holdings International Co. (144) sank the most in 11 weeks in Hong Kong. Brazilian paper maker Klabin SA (KLBN4) surged toward a record high.
The MSCI Emerging Markets Index of developing-nation stocks retreated 0.2 percent to 1,076.51 by 1:08 p.m. in New York, while its 100-day volatility dropped to the lowest level since October 2005. The world’s economy will expand 3.5 percent this year, less than the 3.6 percent forecast in October, the IMF said today as it also reduced outlooks for Brazil and India. A gauge for China’s economy gained 0.4 percent in December, compared with a 1.1 percent increase in the previous month.
Posted by cbasdeo09 on January 23, 2013
Singapore scored second globally behind Switzerland, the same one-two order the small, banking-centric economies occupied in last year’s rankings. Hong Kong jumped two spots to nine. Japan, despite a moribund economy, remained the 10th-most competitive economy in the world by the group’s formulation.
The World Economic Forum’s global competitiveness ranking is the sort of thing presidents and prime ministers like to tout when they are on trade missions or selling government bonds to investors.
Competitiveness, as defined by the World Economic Forum, the group behind the famous confab of the rich and influential in Davos each year, is a measure that roughly translates into a country’s productivity, and thus its ability to generate prosperity.
Posted by byu2012 on September 5, 2012
HONG KONG – Open any standard economic textbook and look for the definition of a free economy; its key characteristic is the lack of government intervention. Less state intervention means a freer market.
On this standard, Hong Kong has been hailed as the world’s freest economy for more than two decades. But is this the whole truth? What if the main sectors of the whole economy are dominated by a few oligopolies or even a virtual monopoly?
Let’s look at the hypothetical case of Mr and Mrs Chan, an average Hong Kong household. Both Mr and Mrs Chan are senior-level employees of the Hong Kong government and earn a total monthly salary of HK$85,000 (US$10,900).
The Chan family bought a 800 square feet (74 square meters) flat from Cheung Kong (owned by the richest local tycoon, Li Ka-Shing) and has to pay a mortgage of HK$30,000 a month. The couple subscribes to the 3shop mobile phone service, a subsidiary of Hutchison Whampoa (also owned by Li) and pay a monthly service fee of HK$2,000.
Posted by byu2012 on August 31, 2012
Top UK traders and dealmakers bruised by intense banker bashing believe an Asian city will take over as the world’s dominant financial centre within 10 years, according to a survey.
They also relegated London to third place from second as their preferred location behind Singapore and New York, the poll by headhunters Astbury Marsden found.
Nearly two thirds of 450 British investment bankers surveyed said Hong Kong, Shanghai or Singapore would be the top global finance centre in 10 years.
One fifth felt London would be the world leader in 2022 and one sixth said New York would hold No.1 spot.
“A fast growing, low tax and bank friendly environment like Singapore stands as a perfect antidote to the comparatively high tax and anti-banker sentiment of London and New York,” said Mark Cameron, operations chief at Astbury Marsden.
The annual ‘Preferred Location Survey’ also found Singapore is the city where British bankers would most like to live, claiming 31 percent of the vote, up from 27 per cent last year.
Posted by byu2012 on August 28, 2012
Allianz Global Investors, part of Allianz SE, said Wednesday that it had reopened its renminbi fixed-income fund, citing increased interest and a greater level of development in the offshore renminbi bond market.
The decision to reopen the fund, which invests primarily in high grade offshore yuan–or CNH–bonds, follows a year of soft closure, whereby Allianz Global Investors stopped further subscriptions to the fund.
Helen Lam, the Hong Kong-based lead portfolio manager of the fund, said the decision to reopen was “largely driven by the reduced size of the portfolio and the increased liquidity in the market.” She also highlighted some positive developments in the offshore renminbi market in terms of tradeable volume, liquidity, and daily conversion limits.
Posted by byu2012 on August 15, 2012
HONG KONG, July 27 (IFR) – Asian credit markets rallied on Friday with confidence that the eurozone will be supported, but trade remained thin ahead of next week’s policy meetings at the Federal Reserve and the ECB.
Sovereign bonds from Indonesia and Philippines extended their runs, while new deals tightened further as investors continued their hunt for yields.
The benchmark iTraxx investment grade index was traded at 165bp, more than 5bp tighter than their previous levels. The index is just off the three-month best it struck last week.
Indonesia 2042s and Philippines 2037s are 1.25-1.5 points higher at 111.50 and 117.25. But Sri Lanka sovereign bonds lagged with the new 2012s up only half a point at 101.
Some investors are getting a bit cautious about the rate environment after US TreasuriesB (Yields?) hit a record low earlier this week.
“One should stay invested but not go very long – rates could back off a bit with the risk on environment returning,” said a Singapore-based fund manager. “I would hedge out the rates portion for long bonds although credit spreads have room to go tighter.”
Posted by Admin on July 27, 2012