With more than 100 tall cranes on the skyline, this metropolis in western China
looks vibrant at first glance despite the country’s sharp economic slowdown.
But only a few cranes — those building national government projects like a high-speed rail line — are floodlit and busy far into the night. The more numerous cranes looming above the skeletons of future high-rises move much less often, even by day, and are dark and deserted by night.
The pattern among Chengdu’s construction cranes is evident across the country. As summer fades into autumn, Beijing is stepping up investment in a bid to rescue the economy, but consumers, businesses and debt-burdened local governments in China are showing little interest in spending money again.
Economic data released on Sunday by the National Bureau of Statistics showed the extent of the problems. Investment in new buildings and other fixed assets is in the doldrums. Manufacturers are retreating from ambitious production goals as they struggle with bloated inventories of unsold goods. Even the service sector, still underdeveloped and widely seen by economists as full of potential, is showing signs of distress.
Posted by byu2012 on September 11, 2012
NEXT week marks the fourth anniversary of one of the most momentous events in the world’s financial history the fall of US banking giant Lehman Brothers, which unleashed a negative chain reaction across the global financial system and pushed the world’s economy to the brink of collapse.
Looking back at how the events unfolded in 2008 and the subsequent year, one has to appreciate the fact that if not the trillions of dollars spent on stimulus packages by governments worldwide, and the swift action by major central banks in cutting interest rates and easing their monetary policies, the world would not have been able to pull itself out of what some economists call the “abyss”.
While it has been some years now since the global economy recovered from that crisis, there’s little to celebrate. We are still not out of the woods, and reforms, as promised by policymakers worldwide, have not been able to keep pace with the rapidly changing environment.
Posted by byu2012 on September 10, 2012
China has made its first tentative investment in Canada during 2005, when it purchased 16.7 percent share of the then-private oil sand developer MEG Energy with 120 million dollars. Today, reported by the Reutors, it is making a bigger move.
China’s top offshore oil producer CNOOC has agreed to buy Canada’s Nexen for about $15.1 billion in one of the most ambitious acquisitions by a Chinese company to date that may test Ottawa’s tolerance of foreign takeovers.
State-controlled CNOOC said it would pay $27.50 per common share, representing a 61 percent premium to Nexen’s closing price in New York on Friday.
“The aggregate value of the consideration of the proposed acquisition is approximately $15.1 billion (approximately HK$117.2 billion), and is to be payable in cash,” CNOOC said in a statement filed on the Hong Kong stock exchange.
Posted by Admin on July 23, 2012
The likes of Sino Land Co. Ltd., Henderson Land Development Co. Ltd. and Cheung Kong (Holdings) Ltd. could be seeing their elite status as property developers shaken up, according to Barclays.
The bank notes that there has been an uptick in deals in recent months by small and mid-cap property developers in Hong Kong, as well as increasing interest from mainland players, which it says is “unusual.”
Earlier this month, an entity backed by Chinese state-owned commodities trader Cofco Corp. bought a majority stake in Hong Kong Parkview Group Ltd. for HK$362 million. Hong Kong Parkview is the developer of high-end housing complex Parkview.
Posted by Admin on July 19, 2012
China is unlikely to introduce fresh measures to cool the real estate market even as home prices snapped eight straight months of decline in June and amid fresh rhetoric from the country’s leader vowing to prevent a rebound in prices.
Instead, Chinese authorities would enforce existing rules more stringently, analysts say, such as discounted mortgages for first-time home buyers to make it easier for them to own property and restrictions on speculative purchases so that prices do not increase excessively. It is fine balance they have to strike, they added.
“I think they would continue with relaxation of first home purchase to see more transaction volumes and they would hope that developers would start to invest with the money they get from these home sales,” Ding Shuang, Senior China Economist at Citi Investment Research, said. “They want to encourage some investment so this increase can be taken as a good sign.”
Posted by Admin on July 18, 2012
Reutors have reported on China’s job market.
China’s job market could turn for the worse and the government needs to step up efforts to create more jobs, Premier Wen Jiabao said in remarks published on Wednesday, underscoring official concerns about an economic slowdown.
“Currently and in the future, China’s employment situation will become more complex and more severe,” the official China Securities Journal quoted Wen as saying.
“The task of promoting full employment will be very heavy and we must make greater efforts to achieve it,” he added.
Posted by Admin on July 18, 2012
HTC, the Taiwanese company that is one of the leading makers of Android-powered smartphones, is the controlling shareholder in Beats Electronics, the Santa Monica (Calif.)-based producer of high-end headphones founded by rap producer Dr. Dre and Jimmy Iovine, the chairman of Interscope, Geffen and A&M. You wouldn’t know that, though, from the statement Beats issued on July 2 announcing its acquisition of MOG, an on-demand music service. The announcement trumpets the importance of the deal for Beats—and does not mention that the California company is part of HTC, which bought control of Beats last year.
The omission is just a small indicator of a problem that HTC and other Taiwanese companies face as they try to survive as consumer brands. Taiwan is an important part of the global economy, thanks largely to its electronics industry, and the backbone of the industry has long been companies that produce computers, chips, displays and other components for others. The classic example of a Taiwanese company that does this sort of work in the background, without putting its own brand on the finished goods, is Foxconn, which makes iPhones and iPads for Apple.
Posted by Admin on July 17, 2012
On a sultry afternoon in May, Richard Friedman sits in the back of a 1990s Buick with faulty air conditioning, mired in traffic in downtown Yangon (formerly Rangoon). The rainy season in Myanmar—also known as Burma—has just begun, and the sky is a leaden gray; the temperature is pushing 95F. Friedman, one of the highest-profile American investors to be lured by the siren call of this newly opened Southeast Asian country, peers out at a sweep of colonial-era buildings, many of them derelict. We drive past the old British Customs House and the former Pegu Club, where Rudyard Kipling spent his only night in Burma, in 1889, while traveling from Calcutta to San Francisco. The stories he heard there inspired his poem “Mandalay.”
A short, vigorous 72-year-old who coached the Harvard ski team after graduating from Dartmouth in the early 1960s, Friedman made his name turning neglected but historic properties into top-flight hotels. In 2005 he redeveloped San Francisco’s 1907 Williams Building into a $180 million mixed-used project that includes the St. Regis Hotel, condominiums, and the Museum of the African Diaspora. Two years later he transformed the 19th century Charles Street Jail on Boston’s Beacon Hill into the four-star Liberty Hotel. Friedman is the president and chief operating officer of Carpenter & Co., a Cambridge (Mass.)-based real estate development and management company. He’s also a major Democratic fundraiser. During the 1990s, the Clintons used his beachfront home on Martha’s Vineyard as their summer White House half a dozen times.
Posted by Admin on July 17, 2012
Chester Yung and Te-Ping Chen have of Wall-Street Journal have jointly reported a Hong Kong scandal which involved high rank individuals.
The co-chairmen of Hong Kong’s largest real-estate companyand a former government official were charged with bribery as part of an investigation that has shaken the city at its highest levels and fanned suspicions about cozy relations between politicians and local tycoons.
Hong Kong’s Independent Commission Against Corruption said brothers Thomas and Raymond Kwok, co-chairmen Sun Hung Kai Properties Ltd., face charges including conspiracy to offer advantages to a public servant. The antigraft agency also said Rafael Hui, previously the city’s No. 2 official, faced charges including misconduct in public office.
Sun Hung Kai Executive Director Thomas Chan and businessman Francis Kwan were also charged, the ICAC said in a statement.
Posted by Admin on July 13, 2012
BY ALEX FRANGOS
As the Euro Zone Flirts With Disaster, Asian Economies Stand at Varying Degrees of Preparedness
HONG KONG—Greek elections may have assuaged fears of a European financial contagion spreading to Asia, at least for the moment. But as troubles brew in Spain, where borrowing costs shot up again Tuesday, and as Greece faces more painful cuts to meet bailout targets by September, many wonder who in Asia is most exposed should Europe’s economy and financial system finally crack.
Lessons from the 2008 financial crisis show that while all of Asia tends to get hit when the world economy shudders, the severity differs depending on which countries have the biggest trade and financial linkages to the rest …
Posted by Admin on June 21, 2012