Capitalism in China is not a pretty picture. Turning toward a "new China" was to simplistic. I am curious about the new China Infrastructure Bank though. President Obama had warned against the investment by Great Britain.
August 25, 2015
..."The Northeast (click here) still thinks of itself as the big brother, because they were the first to get rich after the new China was founded. They are sitting on their glories and not advancing with time. Their mindset is still the old planned economy stuff. They don't see that small businesses can do big things."
Nevertheless, it would be wrong to write China's economy off, or to conclude that the Northeast has no hope of recovery.
Shenyang Machine Tool Group (SYMG) company chairman Xiyou Guan talks enthusiastically about joining the next global revolution in smart machines. SYMG rose from being the 36th largest machine tool company in the world in 2002 to the largest in 2011.
Times are much tougher now - revenues have since dropped sharply and the company is projecting a net loss in the first half of this year, while it has fallen back to third place globally. Nevertheless, Guan, who is also a senior Communist Party official, remains upbeat - about his company and for the region as a whole.
"In my opinion, the fact that we are in an economic downturn is not a bad thing: when something old dies, something new will be born," he said, turning to his colleagues to cite a line from Russian writer Maxim Gorky. "'Let the tempest come strike harder!' - because this will give birth to new things much faster."...
Another failed Chinese bank. How many does that make? Three or four, right?
August 18, 2015
By Cathy Kit Ching Chan
Don’t be surprised (click here) to see a few empty corner offices at global investment banks in Asia these days.
Tougher regulation and the rise of Chinese competitors have reduced the initial public offerings and other large China deals being won by U.S. and European banks, a business which yielded $7 billion in fees last year and has supported a legion of well-heeled bankers in Hong Kong.
As the business has changed, the investment banks are increasingly willing to leave top executive roles vacant and dispense with the services of so-called relationship bankers, who brought in lucrative deals by dint of their extensive networks with China’s corporate titans. At the same time, stricter rules have made the roles less appealing for ambitious bankers.
“The regulatory environment is more rigid and each firm is going through a strategic adjustment in different ways, so senior people have become less eager to work at the investment banks” in Asia, said David Chin, 47, who stepped down as UBS Group AG’s Hong Kong (click here)-based head of Asian investment-banking in June.
Chin spent 21 years at UBS and worked on deals such as the $4 billion Hong Kong share sale of China Minsheng Banking Corp. in 2009 and the $11.2 billion IPO of Bank of China Ltd. in 2006. He plans to take up a position as a visiting scholar at Cambridge University in the U.K. in September.
UBS hasn’t announced a replacement for China....
Goldman Sachs invested heavily in China after 2008. They lost a years growth yesterday.
Goldman has never fully recovered to it's pre-2008 highs. Quantitative Easing was a give away to Wall Street that in turn dumped it into China. Wall Street had too much money and acted like a kid in a candy shop. The privatization of China wasn't about real growth, it was about over investment. QE 1 through 3 did nothing but provided liquid assets to throw in a black hole while keeping fingers crossed behind investor's back to China's outcome.
THE BANKS ARE TOO BIG. The US Congress needs to hold hearings as soon as possible. Wall Street is headed for more than an adjustment. Adjustments correct projections of income to stockholders, this isn't an adjustment, this is a failure.
China's leadership created a vision of growth based in capitalism based in a dreamscape. The leaders believed the dream presented by Wall Street investors who created the Chinese oligarchy. The monies put into the simply was swallowed up in attempts to create stability. The investors into the AIIB have lost the money they put into it and now have to ride the tide of time in hope to regain those monies. The investors lost their entire investment as soon as it was deposited. Rather than living with failed banks the Chinese simply built another one and put out a prospectus on dreams and not reality.
Currently, Wall Street is attempting to come home to mommy. Seriously. They are unwinding from speculative investing during the QE Era.
June 29, 2015
By Duncan Hewitt
SHANGHAI -- Representatives from 57 countries (click here) have attended a signing ceremony in Beijing for the founding of the new Asian Infrastructure Investment Bank. The institution, designed to promote regional development, has been seen as a significant foreign policy success for China, which proposed the idea. It has also become something of an embarrassment for the U.S., which announced early on that it would not be joining, only to discover that many of its allies had no such qualms.
Australia was the first country to sign the agreement at a ceremony in Beijing’s Great Hall of the People. The other 49 countries that signed up -- seven others are still waiting for approval from their domestic legislatures -- included Germany, the U.K. and South Korea.
China has said the bank, which will be based in Beijing and is expected to start work by the end of this year, will play a major role in speeding up development, in a region where some $8 trillion in investment is expected to be required in the next five years alone. It is seen as providing an alternative to U.S.-dominated institutions such as the World Bank and Asian Development Bank, which some in Asia consider slow to respond to the needs of the region -- and as imposing too many conditions on development....
The investors are gambling the region of China will be capable of exceeding an investment of $8 Trillion. You've got to be joking.
August 25, 2015
..."The Northeast (click here) still thinks of itself as the big brother, because they were the first to get rich after the new China was founded. They are sitting on their glories and not advancing with time. Their mindset is still the old planned economy stuff. They don't see that small businesses can do big things."
Nevertheless, it would be wrong to write China's economy off, or to conclude that the Northeast has no hope of recovery.
Shenyang Machine Tool Group (SYMG) company chairman Xiyou Guan talks enthusiastically about joining the next global revolution in smart machines. SYMG rose from being the 36th largest machine tool company in the world in 2002 to the largest in 2011.
Times are much tougher now - revenues have since dropped sharply and the company is projecting a net loss in the first half of this year, while it has fallen back to third place globally. Nevertheless, Guan, who is also a senior Communist Party official, remains upbeat - about his company and for the region as a whole.
"In my opinion, the fact that we are in an economic downturn is not a bad thing: when something old dies, something new will be born," he said, turning to his colleagues to cite a line from Russian writer Maxim Gorky. "'Let the tempest come strike harder!' - because this will give birth to new things much faster."...
Another failed Chinese bank. How many does that make? Three or four, right?
August 18, 2015
By Cathy Kit Ching Chan
Don’t be surprised (click here) to see a few empty corner offices at global investment banks in Asia these days.
Tougher regulation and the rise of Chinese competitors have reduced the initial public offerings and other large China deals being won by U.S. and European banks, a business which yielded $7 billion in fees last year and has supported a legion of well-heeled bankers in Hong Kong.
As the business has changed, the investment banks are increasingly willing to leave top executive roles vacant and dispense with the services of so-called relationship bankers, who brought in lucrative deals by dint of their extensive networks with China’s corporate titans. At the same time, stricter rules have made the roles less appealing for ambitious bankers.
“The regulatory environment is more rigid and each firm is going through a strategic adjustment in different ways, so senior people have become less eager to work at the investment banks” in Asia, said David Chin, 47, who stepped down as UBS Group AG’s Hong Kong (click here)-based head of Asian investment-banking in June.
Chin spent 21 years at UBS and worked on deals such as the $4 billion Hong Kong share sale of China Minsheng Banking Corp. in 2009 and the $11.2 billion IPO of Bank of China Ltd. in 2006. He plans to take up a position as a visiting scholar at Cambridge University in the U.K. in September.
UBS hasn’t announced a replacement for China....
Goldman Sachs invested heavily in China after 2008. They lost a years growth yesterday.
Goldman has never fully recovered to it's pre-2008 highs. Quantitative Easing was a give away to Wall Street that in turn dumped it into China. Wall Street had too much money and acted like a kid in a candy shop. The privatization of China wasn't about real growth, it was about over investment. QE 1 through 3 did nothing but provided liquid assets to throw in a black hole while keeping fingers crossed behind investor's back to China's outcome.
THE BANKS ARE TOO BIG. The US Congress needs to hold hearings as soon as possible. Wall Street is headed for more than an adjustment. Adjustments correct projections of income to stockholders, this isn't an adjustment, this is a failure.
China's leadership created a vision of growth based in capitalism based in a dreamscape. The leaders believed the dream presented by Wall Street investors who created the Chinese oligarchy. The monies put into the simply was swallowed up in attempts to create stability. The investors into the AIIB have lost the money they put into it and now have to ride the tide of time in hope to regain those monies. The investors lost their entire investment as soon as it was deposited. Rather than living with failed banks the Chinese simply built another one and put out a prospectus on dreams and not reality.
Currently, Wall Street is attempting to come home to mommy. Seriously. They are unwinding from speculative investing during the QE Era.
June 29, 2015
By Duncan Hewitt
SHANGHAI -- Representatives from 57 countries (click here) have attended a signing ceremony in Beijing for the founding of the new Asian Infrastructure Investment Bank. The institution, designed to promote regional development, has been seen as a significant foreign policy success for China, which proposed the idea. It has also become something of an embarrassment for the U.S., which announced early on that it would not be joining, only to discover that many of its allies had no such qualms.
Australia was the first country to sign the agreement at a ceremony in Beijing’s Great Hall of the People. The other 49 countries that signed up -- seven others are still waiting for approval from their domestic legislatures -- included Germany, the U.K. and South Korea.
China has said the bank, which will be based in Beijing and is expected to start work by the end of this year, will play a major role in speeding up development, in a region where some $8 trillion in investment is expected to be required in the next five years alone. It is seen as providing an alternative to U.S.-dominated institutions such as the World Bank and Asian Development Bank, which some in Asia consider slow to respond to the needs of the region -- and as imposing too many conditions on development....
The investors are gambling the region of China will be capable of exceeding an investment of $8 Trillion. You've got to be joking.
