Daily Archives: 09/01/2015

culture, News

A Pigeon Sat on a Branch Reflecting on Existence

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A Pigeon Sat on a Branch Reflecting on Existence – Sweden’s candidate for the Academy Award nominationsBeskrivning: Beskrivning: H:\My Documents\roy\Roy_Andersson_c_mair_476.jpg

Roy Andersson talks to Swedish Film Institute head of press Jan Göransson. To his left producer Pernilla Sandström and Director International Department Pia Lundberg. Photo: Christopher Mair/Swedish Film Institute

 The Swedish Oscar Committee has chosen Roy Andersson’s A Pigeon Sat on a Branch Reflecting on Existence as Sweden’s candidate for the Academy Award nominations. The film is also selected for European Film Award – People’s Choice Award, with Force Majeure by Ruben Östlund as one of the other nine nominated.

 A happy Roy Andersson attended the press conference at the Swedish Film Institute in Stockholm, earlier today. He is currently working on a new project, with the working title On Eternity (Om det oändliga); also adding that he wants to see more poetry in film in general.

 In autumn 2014, Roy Andersson’s A Pigeon Sat on a Branch Reflecting on Existence (En duva satt på en gren och funderade på tillvaron) was awarded a Golden Lion at the Venice International Film Festival. Now, the Swedish Oscar Committee has selected the film as the Swedish candidate for the Academy Award nominations.

The Academy Award judges will then decide which films go on to a shortlist, and which are subsequently nominated for an Academy Award.

 A Pigeon Sat on a Branch Reflecting on Existence has been well received both in Sweden and internationally. The average rating from Swedish critics is 3.90 out of 5. The foreign press has also praised the movie:

“The morose, sardonic genius on show in Roy Andersson’s A Pigeon Sat on a Branch Reflecting on Existence plays like the melancholy inheritor of fellow Nordic miserablists August Strindberg, Edvard Munch and Søren Kierkegaard – but with much better jokes.” (Jonathan Romney, Sight & Sound, May 2015)

 “…the film is a master class in comic timing, employing pacing and repetition with the skill of a practiced concert pianist.” (Peter Debruge, Variety, September 2014)

 

The film is produced by Pernilla Sandström for Roy Andersson Filmproduktion, and co-produced by Société Parisienne de Production of France, 4½ of Norway, and German company Essential Film Production. The film received production funding from the Swedish Film Institute, Film Commissioner Suzanne Glansborg.Coproduction Office is the international sales agent. The movie premiered in Sweden on 14 November and is distributed by TriArt.

 Roy Andersson is one of Swedish film’s most important directors of all time. His first feature-length film A Swedish Love Story (En kärlekshistoria) from 1970 set a new standard in psychological realism, subtle tragicomedy and strong visual narrative – something that has characterised Andersson’s work ever since, particularly in his acclaimed 2000 comeback movie Songs from the Second Floor (Sånger från andra våningen). A Pigeon Sat on a Branch Reflecting on Existence is the perfectionist Andersson’s first feature-length film in seven years. Andersson was also selected Sweden’s candidate for the Academy Award nominations with A Swedish Love Story, Songs from the Second Floor and You, the Living.

 In addition to supporting the Swedish entry for Best Foreign Language Film, the Swedish Film Institute will also grant support for the Academy Award campaign forStig Björkman’s Ingrid Bergman – In Her Own Words in the Best Documentary Feature category.

 The following Oscar Committee members were involved in making the decision:

Anders Habenicht, appointed by Teaterförbundet – The Swedish Union for Performing Arts and Film
Jörgen Bergmark, appointed by Teaterförbundet – The Swedish Union for Performing Arts and Film
Zoran Slavic, appointed by Sveriges Filmuthyrareförening (Swedish association of film renters)
Jan Lumholdt, appointed by the Swedish Federation of Film Critics
George Ivanov, appointed by the Swedish Film Institute
Charlotta Denward, appointed by the Swedish Film & TV Producers Association
Sören Staermose, appointed by the Swedish Film & TV Producers Association

 European Film Award – People’s Choice Award

A Pigeon Sat on a Branch Reflecting on Existence is also selected for European Film Award – People’s Choice Award, one of the biggest film awards in the world. Among other nominated is Force Majeure by Ruben Östlund, making it two Swedish films of a total of ten nominated. The winner is announced at the European Film Awards Ceremony on 12 December in Berlin.

 

Business, China

China Focus: Mainland, Taiwan sign agreements on flight safety, taxation

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FUZHOU, Aug. 25 (Xinhua) — Chinese mainland and Taiwan negotiators signed two agreements concerning cross-Strait flight safety and taxation cooperation on Tuesday.

The agreements were signed by the mainland-based Association for Relations Across the Taiwan Straits (ARATS) President Chen Deming and Taiwan-based Straits Exchange Foundation (SEF) Chairman Lin Join-sane during their talks in Fuzhou city.

The civil aviation agreement covered licensing for civil aviation organizations, products and personnel as well as flight standards and airworthiness certification. The two sides agreed to set up a reporting system and mechanism to coordinate responses to accidents and emergencies.

Based on this agreement, the negotiators discussed cooperation for investigating and handling civil air accidents.

The tax agreement outlined rules for income from cross-Strait economic exchanges. It also covered favorable tax rates for such activities and strategies to avoid double taxation.

The two sides also agreed to establish a system that would avoid discriminatory taxation.

According to Chen, the civil aviation agreement will make flying safer, reduce civil aviation costs and deepen cross-Strait exchanges in this industry, while the tax deal will reduce costs for enterprises and individuals and encourage cross-Strait direct investments.

ARATS Executive Vice President Zheng Lizhong said at a press conference after the agreements signing that a major feature of the taxation agreement is reciprocal arrangements for both sides to create a more stable, transparent and competitive environment for investors.

The agreement will also provide more convenient and efficient taxation services, equal taxation treatment and more effective dispute remedies, Zheng said.

Taiwan’s financial authority has estimated that the taxation agreement, once come into force, may save Taiwanese businesses 3.9 billion new Taiwan dollars (120 million U.S. dollars) in tax payments every year.

As for the civil aviation pact, Zheng said it is expected to expedite timely and necessary collaboration of the mainland and Taiwan in relevant fields to protect the personal and property safety for air passengers of the two sides.

Zhang Hongying, chief engineer of the Civil Aviation Administration, noted the agreement would help reduce costs.

“For example, with the agreements on civil aviation standards, cross-Strait flights do not need to bring their own machinists and spare parts. Instead, they can simply resort to local maintenance,” he explained.

“As the number of cross-Strait tourists by plane increases, flight safety has become an important concern of both sides,” said Che Shanglun, board chairman of Xiamen Airlines. “With smoother contact and closer collaboration in both regular operations and emergencies, flights across the Strait will also fly smoother and safer.”

During Tuesday’s talks, the two sides agreed to continue negotiation on issues such as the agreement of cross-Strait trade in goods under the Economic Cooperation Framework Agreement (ECFA), arrangements to allow mainland travelers’ layovers in Taiwan and the two organizations’ setting up offices on each other’s side.

Topics also included cooperation in environmental protection and exchanges in education, culture and science and technology fields.

Cross-Strait relations have been developing stably since the last round of talks last year, although there have been some frustrations, Chen said in a speech before the talks.

He said talks between the two organizations constitute an important avenue to promote peaceful development of cross-Strait ties and people’s livelihoods.

Agreements signed at previous talks have facilitated exchanges across the Strait and enhanced mutual benefits. “Facts have proved that the negotiations between the mainland and Taiwan have brought benefits to the general public and various sectors on both sides,” the ARATS chief said.

Lin said in his speech that the two sides’ resolve to promote peace and prosperity across the Strait is unshaken despite some difficulties.

Both sides have called for further talks and development of cross-Strait ties on the basis of the “1992 Consensus”.

At Tuesday afternoon’s press conference, Zheng expressed hope that the two new agreements will take effect and get implemented as soon as possible.

In response to a question on a previous service trade pact, which was signed by the two sides in 2013 but has yet to be approved in Taiwan, Zheng expressed his disappointment as both sides have made “tremendous efforts” in reaching the agreement and it is supposed to bring benefit to people on both sides especially those in Taiwan.

“We hope that Taiwan would finish relevant procedures for the pact at an earliest possible date,” he said. Enditem

Business, China

China may rule out commutation for most corrupt figures

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BEIJING, Aug. 26 (Xinhua) — An amendment submitted to the legislature Monday proposes that criminals convicted on serious corruption charges who have received a two-year suspended death sentence will face life imprisonment after the two years.

The proposal aims to “safeguard judicial fairness” and prevent “the most corrupt criminals from serving shorter prison terms through commutation,” according to a third draft of an amendment to the Criminal Law filed at the six-day bimonthly session of the National People’s Congress (NPC) Standing Committee.

Lawmakers debated the proposal and will decide whether to adopt it later.

The proposal targets officials who illegally seek commutation, parole or non-prison sentences, said Prof. Ruan Qilin of the China University of Political Science and Law.

Such irregularities have been common. Hu Jianxue, a former Party chief from the city of Tai’an, Shandong Province, was sentenced to prison and approved for medical parole for a year, but he remained out of prison for seven years. Shi Baochun, a former official of the city of Yangshuo in Guangxi Zhuang Autonomous Region, was sentenced to ten years in prison for graft, but he bribed officials to avoid serving the sentence.

They used outside connections and personal influence to bribe prison and justice officials in order to claim commutations and evade imprisonment, said Xiu Bao, director of a law firm in northeast China’s Jilin Province.

Following a number of cases of convicts who bribed their way out of prison, Chinese authorities have vowed to crack down on judicial corruption in commutations of sentences and probation.

“Terms and procedures on commutation, parole and serving sentences outside prison for medical reasons should be stringent within the framework of the law,” said an instructive document released in February of last year by the Commission for Political and Legal Affairs of the Communist Party of China Central Committee.

Monday’s proposal responded to a sweeping anti-corruption campaign that aims to end judicial loopholes and safeguard the authority of the law, Ruan said.

Prof. Huang Jingping of Renmin University of China said the proposal combines punishment and leniency, as the corrupt officials will face life imprisonment instead of the death penalty. It will also help reduce China’ s use of the death penalty, especially for non-violent crimes.

Life imprisonment for corrupt officials demonstrates China’s determination to fight graft, he added.

“The price of corruption has become higher,” said Gao Bo of the Chinese Academy of Social Sciences, adding the amendment will serve as an effective deterrent against corruption if the top legislature adopts the proposal on Saturday.

However, some experts said the proposal is unnecessary as corrupt officials are not as dangerous as violent criminals, who will remain subject to the death penalty according to the law. They suggested that efforts should be made to rule out judicial corruption and improve law enforcement for the imprisonment of corrupt officials.

Experts also warned that life imprisonment without commutation runs counter to international treaties that say criminals have the right to commutation, and will put more pressure on prisons. Enditem

 

Business, China

Monetary easing to bolster economy, restore confidence

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BEIJING, Aug. 26 (Xinhua) — The Chinese government’s easing of monetary policies is much more than a response to the recent stock market rout, as it aims mainly to lower borrowing costs and shore up economic growth.

On Tuesday, the People’s Bank of China (PBOC), the central bank, announced cuts in the reserve requirement ratio (RRR) and a lowering of interest rates, following a four-day losing streak on the stock market that chopped the benchmark Shanghai index by more than 20 percent.

On Sept. 6, the RRR for financial institutions will be cut by 50 basis points. The RRR for financial leasing companies and companies providing car loans will be lowered by 300 basis points.

From Wednesday, interest rates for one-year lending and deposits will be cut by 25 basis points to 4.6 percent and 1.75 percent respectively.

The measures helped arrest the freefall on the stock market, with the Shanghai index seeing its decline narrow to 1.27 percent on Wednesday, down from a 7.63-percent plunge on Tuesday and 8.49 percent on Monday.

European stock markets mostly surged on Tuesday after turmoil in the global markets on Monday. Major indices in the United States also witnessed narrowing declines on Tuesday compared with previous trading days.

UBS chief economist Wang Tao said the move signaled the Chinese government’s determination to safeguard financial stability and helped shore up sentiment in financial markets.

But that was only a small part of the government’s intentions, as China still faces huge downward pressure on economic growth.

China is lowering financial costs and maintaining reasonable liquidity to ensure steady growth, said Ma Jun, chief economist at the central bank’s research bureau.

“It was necessary to cut RRR and interest rates again to stabilize market expectation both at home and abroad, in a showcase of China’s role as a responsible large nation,” Ma said.

This is the fourth time the PBOC has cut both RRR and interest rates since the beginning of this year.

RATE CUTS TO LOWER COSTS

The rate cut is seen as the latest effort by the central bank to lower corporate funding costs and shore up the economy, after recent weaker-than-expected economic indicators disappointed global investors.

A main gauge of factory activity, the Caixin flash China general manufacturing PMI slipped to 47.1 in August, the lowest reading since March 2009, while the year-on-year growth in industrial output slowed to 6 percent in July, also down from a month earlier.

Zhu Haibin, chief economist for J.P. Morgan China, said the PBOC’s rate cut reassured the market amid growing concerns about the economy.

Wang also recognized the necessity of the move.

“Although financing costs have retreated somewhat, real interest rates have stayed high amid ongoing deflationary pressures, especially the contraction in the PPI,” she said.

The producer price index (PPI), a measure of costs for goods at the factory gate, fell 5.4 percent year on year in July, the 41st straight month of decline.

Wang expects the PBOC to cut the benchmark rate once more late this year to further reduce real financing costs.

China’s economy grew in the first half of the year by 7 percent, its lowest level since the global financial crisis. But analysts said the growth rate is likely to pick up based on support policies during the rest of the year.

RRR CUT TO STABILIZE ECONOMY

The RRR cut came amid strong market expectations of easing measures by the central bank to lessen the liquidity strain caused by shrinking funds outstanding for foreign exchange and the depreciation of Chinese currency the yuan.

Analysts believe the cut will effectively replenish the market and relieve cash-starved financial institutions.

Wang estimated around 700 billion yuan (nearly 109 billion U.S. dollars) of liquidity will be released immediately.

Giving out a similar projection, Lian Ping, economist with the Bank of Communications, wrote in a research note that the cut in deposit reserve ratio will prompt banks to expand credit and enhance their capacity to support the real economy.

The effects of the cut were instant and evident. On Wednesday, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one other, retreated to 1.786 percent from Tuesday’s 1.879 percent.

“The RRR cut, therefore, is necessary to keep base money supply stable, and to ensure a steady growth of money and credit in the coming months,” Wang said.

The money market has been suffering from lack of liquidity since the end of July despite repeated cash injections by the PBOC through less powerful operations including reverse repurchase agreements and short-term lending facilities.

Economists predict more easing measures from the central bank in the latter half of the year. Enditem

 

China

China changes management of major telecom operators

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BEIJING, Aug. 24 (Xinhua) — China’s three major telecom operators convened internal meetings on Monday morning and announced their new top leaders.

Shang Bing, deputy minister of China’s Ministry of Industry and Information Technology, will assume the position of board chairman of China Mobile Communications Corporation, the parent company of China Mobile (CHL.NYSE; 00941.HK), to succeed Xi Guohua who will get retired.

Meanwhile, China Telecommunications Corporation’s board chairman Wang Xiaochu and China United Network Communications Group Co., Ltd.’s board chairman Chang Xiaobing will exchange their posts.

China Telecommunications Corporation is the controlling shareholder of China Telecom (CHA.NYSE; 00728.HK), and China United Network Communications Group Co., Ltd. is the ultimate parent company of China Unicom (CHU.NYSE; 00762.HK; 600050.SH).

It is the second time for China’s three telecom giants to exchange their leaders in the history. In October 2004, Wang Jianzhou, then board chairman of China Unicom’s parent company, became general manger of China Mobile Communications Corporation, the parent company of China Mobile (CHL.NYSE; 00941.HK). In November 2004, Chang Xiaobing, then deputy general manager of China Telecommunications Corporation, became chairman of China Unicom’s parent company; while Wang Xiaochu, then deputy general manager of China Mobile Communications Corporation, became chairman of China Telecom’s parent company.

Analysts said the management changes in 2004 did not solve the problem of unhealthy competition for the telecom industry, and they believe the new management changes will not cast strong impacts on the three telecom giants.

Zeng Jianqiu, a telecom expert with Beijing University of Posts and Telecommunications, said personnel change is not a big deal to the telecom industry, as the key for the industry’s development is reform. According to Zeng, management changes are signal of telecom reform, and telecom giants need to explore ways of reforming to face the opportunities and challenges brought by the rising of smart terminals and mobile Internet businesses.

Another telecom giant Xiang Ligang said at his Weibo account on Sunday that the management change of China Mobile is a result of Xi Guohua’s retirement and will have no substantial influence on the industry’s development. He added that the changes also proved the government has not considered the merger between China Unicom and China Telecom.

But industry insiders are optimistic about their new leaders. The IT news portal tech.qq.com quoted an industry insider as saying that Shang Bing, the former deputy minister, will boost the implementation of regulatory requirements of “speed upgrade & tariff reduction” by the largest telecom giant.

Although his assumption of duty will not influence China Telecom heavily, Chang Xiaobing is expected to use his management experience to guide the company to further exploit fixed-line access market in northern China.

Wang Xiaochu, the critically acclaimed leader of China Telecom, is believed to boost the morale of China Unicom’s employees and stop the company’s performance decline. Enditem

 

China, World News

China announces more sites commemorating war against Japan

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BEIJING, Aug. 24 (Xinhua) — China’s State Council has released a list of 100 state facilities and sites commemorating the 70th anniversary of victory in the Chinese People’s War of Resistance Against Japanese Aggression and the end of World War II.

The graves of Tong Linge and Zhao Dengyu, both commanders of the Nationalist Army, are on the list. Tong and Zhao died during the war.

Also on the list is the cemetery for the fallen soldiers in the Battle of Pingxingguan, which took place in north China’s Shanxi Province in September 1937. The Communist troops, who were familiar with the mountainous area, cut off the enemy’s logistics line and killed more than 1,000 Japanese troops in an ambush.

Also on Monday, the Ministry of Civil Affairs announced a list of 600 fallen soldiers and groups who sacrificed their lives during the Japanese invasion of China in the 1930s and 40s.

China released the first two lists of facilities, sites, fallen soldiers and heroic groups to commemorate the country’s victory in the war in September of last year.

Japan invaded northeast China in September 1931. However, historians agree that the full-scale invasion began on July 7, 1937, when a bridge that acted as a crucial access point to Beijing was attacked by the Japanese.

The Chinese People’s War of Resistance Against Japanese Aggression was an important part of World War II. Enditem

 

China, Exchange, World News

China Focus: 1,000 foreign troops join China’s V-Day parade

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BEIJING, Aug. 25 (Xinhua) — Nearly 1,000 foreign troops from 17 countries will participate in China’s military parade marking the 70th anniversary of the end of World War II on Sept. 03, a military official said on Friday.

Although China has so far held 14 military parades to mark National Day, the parade next month will be the first commemorating the anniversary of the end of WWII and the victory in the Chinese People’s War of Resistance against Japanese Aggression. It is also the first time that foreign armies will participate in a military parade in China.

Belarus, Cuba, Egypt, Kazakhstan, Kyrghyzstan, Mexico, Mongolia, Pakistan, Serbia, Tajikistan and Russia have dispatched formations to march in the parade, said Qu Rui, deputy chief of the Operations Department of the General Staff Headquarters of the People’s Liberation Army (PLA).

Each formation consists of around 75 people.

Another six countries — Afghanistan, Cambodia, Fiji, Laos, Vanuatu and Venezuela — sent teams of around seven people each, he said.

The troops will be grouped alphabetically according to their country names, and will follow PLA foot formations in the parade.

Thirty-one countries, including France and Republic of Korea, have also promised to send high-level military delegations.

“Victory in the Chinese People’s War of Resistance against Japanese Aggression was not only a victory for the Chinese people, but also for people from around the world,” according to Qu.

“The participation of foreign formations, representative teams and military delegations manifests the international nature of the war. We firmly believe that the commemoration activities will cement trust between the PLA and foreign troops participating in the parade,” h said.

All foreign troops have already arrived at the parade training base and are training with their Chinese counterparts. They participated in parade rehearsals on Thursday and Saturday last week.

Qu shrugged off concern over the absence of troops from the United States, Japan and the Democratic People’s Republic of Korea, saying that “history would not be changed by the attitude of certain countries.”

“We respect countries’ choices over whether to come or not, and we will extend our warmest welcome for all foreign troops and delegations that have decided to come,” he said.

The Sept. 3 parade will include more than 10,000 Chinese troops, who will pass the giant rostrum in central Beijing’s Tiananmen Square, either on foot or in vehicles, while close to 200 military aircraft fly in formations overhead.

China will also showcase its military sophistication by rolling out 27 armament formations. Most of the weaponry and equipment has never been shown to the public before.

Business, News, World News

China’s central bank pumps in billions to ease liquidity strain

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BEIJING, Aug. 25 (Xinhua) — The central bank on Tuesday pumped the most funds into the financial system in open market operations since January 2014 amid efforts to ease a liquidity strain.

The People’s Bank of China (PBOC) conducted 150 billion yuan (23.4 billion U.S. dollars) of seven-day reverse repurchase agreements (repo), a process in which central banks purchase securities from banks with an agreement to resell them in the future.

The reverse repo was priced to yield 2.5 percent, unchanged from the yield on a net injection last week of 150 billion yuan using reverse repos, according to a PBOC’s statement.

Liquidity in the money market has tightened due to dropping new yuan funds outstanding for foreign exchange and a depreciating Chinese yuan.

The PBOC also channelled another 110 billion yuan via its medium-term lending facility, which allows banks to borrow from the central bank by using securities as collateral.

Despite the cash injection, in Tuesday’s interbank market, the benchmark overnight Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one other, climbed by 1.3 basis points to 1.879 percent, a four-month high. Enditem

 

Business, China

Mainland, Taiwan sign agreements on flight safety, taxation

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FUZHOU, Aug. 25 (Xinhua) — Chinese mainland and Taiwan negotiators on Tuesday inked two agreements concerning cross-Strait flight safety and taxation cooperation, respectively.

The two agreements were signed by the mainland-based Association for Relations Across the Taiwan Straits (ARATS) President Chen Deming and Taiwan-based Straits Exchange Foundation (SEF) Chairman Lin Join-sane during their talks in Fuzhou city.

The civil aviation agreement covered licensing for civil aviation organizations, products and personnel as well as flight standards and certification. The two sides agreed to set up a reporting system and mechanism to coordinate responses to accidents and emergencies.

Based on the agreement, the negotiators discussed cooperation for investigating and handling civil air accidents.

The tax agreement outlined rules for income from cross-Strait economic exchanges. It also covered favorable tax rates for such activities and strategies to avoid double taxation.

The two sides also agreed to establish a system that would avoid discriminatory taxation.

ARATS and SEF are NGOs authorized by the Chinese mainland and Taiwan, respectively, to negotiate cross-Strait issues. Enditem

Business, China

China unveils border trade zone with DPRK

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SHENYANG, Aug. 25 (Xinhua) — Authorities in northeast China’s Liaoning Province are preparing to open a border trade zone with the Democratic People’s Republic of Korea (DPRK).

After an unveiling ceremony, the Guomenwan trade zone in the city of Dandong is expected to open during the China-DPRK Economic, Trade, Cultural and Tourism Expo in October, the provincial government said on Tuesday.

The trade zone, with a total investment of 1 billion yuan (156 million U.S. dollars), has a floor area of 24,000 square meters.

Residents living within 20 km of the border will be able to exchange commodities at the marketplace with people from the DPRK and enjoy a duty-free policy if spending less than 8,000 yuan (1,250 U.S. dollars) per day.

Dandong is the key hub for trade, investment and tourism between China and the DPRK. There are more than 600 border trade enterprises in the city, and trade with the DPRK accounts for 40 percent of the city’s total trade turnover.   Enditem

 

Business, China

Michael Bloomberg sees enormous potential in China

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BEIJING, Aug. 25 (Xinhua) — Weak economic figures, a plunging stock market and the depreciation of the yuan have raised concerns globally about China’s economy, but Michael Bloomberg doesn’t seem worried.

Bloomberg, founder of the world’s leading financial information provider Bloomberg L.P. and former New York City mayor, has an unusual reason for his optimism: The many smiling faces in Chinese cities.

“One of the things I do when I’m in a city outside of New York [is to] see if the people walking down the streets are smiling.

“You see a lot of smiling faces here. Very few people are dour and look depressed. Most people here are happy, gung-ho. They have an enthusiasm,” he told Xinhua during an interview last week.

China’s economy is still growing. The progress and the length of time that it’s been growing are amazing, and you’re always going to have small fluctuations, he said.

MARKET ROUT, YUAN DEPRECIATION

China’s economy has slowed significantly in the past two years to what is officially called the “new normal.” Annual growth rate has fallen from 10 percent to 7 percent.

Adding to that pressure is a stock market rout since June 12 and the depreciation of the yuan in mid-August.

On Tuesday, China’s stock market continued its two-month slide. The key Shanghai index lost another 7.63 percent after an 8.49-percent plunge on Monday. It closed at 2,964.97, the lowest level since Dec. 15, 2014.

The Shanghai index has fallen by 42.74 percent from its peak at 5,178.19 points in the mid-June, triggering a ripple affect in the global market.

Bloomberg suggested that investors put the stocks away and get back to business.

If you’re an investor, you should buy stocks in companies that have a future — that is the only successful investment strategy, he said.

“If you worry about the small, short-term ups and downs, you will always be too late to get in and too early to get out. So I wouldn’t worry about that,” he said.

The stock market plunge was further complicated by a sudden depreciation of the yuan on Aug. 11, after the People’s Bank of China reviewed the way it calculated the central parity rate against the U.S. dollar.

The market responded with a 4.6 percent depreciation in the yuan-dollar central parity rate by Tuesday.

Bloomberg believes that the decision by the central bank was probably the right decision for China.

“I think, on balance, the government has a reasonable set of criteria so that people won’t panic, but that market forces over a long period of time can set [the yuan’s exchange] rates,” he said.

POTENTIAL

“I suppose it’s normal that people will say: ‘Oh, is this the beginning of the end?'” Bloomberg said.

“Don’t always feel that the world is coming to an end [in] the real world, nothing goes in a straight line […] Business people don’t go up and down every day. They look to the future.”

He said that in the longer term, China’s economy is still growing, and small fluctuations are natural, given the impressive progress and length of growth.

China, he said, was once a country where everybody went around on bicycles and very few people spoke English. Today, there are cars everywhere, and the average person has much more than ever before.

“The Middle Kingdom used to be very isolated, and today […] it is very willing to look outside — at other people’s experience, and if they think it fits, they adopt it.”

“China [has] a history spanning 5,000 years and you’re worried about two months? Seriously, you can’t worry about the short term,” he said.

Bloomberg said that there is still enormous potential in China for a number of reasons, such as its huge population, rich resources, education level and strong work ethic.

The potential for the Chinese people, and the potential for companies around the world to do business is really amazing, he said.

Although there are signs of weakness from disappointing exports to wobbling infrastructure investment, Bloomberg does not agree that there is an economic slowdown in China.

“By any rational basis compared to any place else in the world, China is still spectacular, there isn’t a slowdown and it doesn’t impact our business,” he said. [   Bloomberg’s business has grown in China and it recently hired about 150 people on the Chinese mainland. It will keep investing, taking new space and hiring new people, the founder said. Enditem

 

 

 

Business, China, Green-tech

Xinhua Insight: Sharing economy shaking up business in China

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   BEIJING, Aug. 25 (Xinhua) — As Uber and Airbnb expand in China, homegrown online ventures are already taking a slice of the growing sharing economy.

Chen Chi, chief executive officer of the short-term home-rental site Xiaozhu.com, shrugged off the competition Airbnb might bring when the apartment-sharing service announced last Wednesday that it planned to enter the China market.

Instead of treating Airbnb as a threat to emerging short-term rental firms such as Xiaozhu and Tujia, Chen welcomes the development as an opportunity for China to embrace the sharing economy.

An increasing number of Internet startups in China are profiting by sharing access to resources that they do not actually own, from home rentals to car pooling to catering.

“Airbnb has recognized how fast the sharing economy is growing in China,” Chen said.

MORE FOR LESS

At its core, the sharing economy brings together excess capacity of products or services to “share” them. Uber and Didi take advantage of the fact that individually owned cars spend a lot of time parked up, going nowhere. Airbnb and Xiaozhu rent out rooms when the owners are not staying in them.

The sharing economy in China has already gone far beyond car pooling and home rentals. Renren Delivery, for example, connects demand for package deliveries with “freelance” couriers. Anyone can earn a fee by picking up a package and carrying it to its destination.

Knowledge can be shared too. Zaih.com, launched this year, tries to connect people with expertise — whether in art, science or lifestyle — with people seeking advice. Those in need of professional help can click a button, schedule a face-to-face meeting with experts, and pay them a fee of about 50 U.S. dollars for a consultation.

Capital can work the same way. Peer-to-peer (P2P) lending connects individuals and small businesses who need money directly to investors with cash to spare; essentially, access to idle funds.

According to research agency 01caijing, P2P in China expanded 172 percent to 300 billion yuan (47 billion U.S. dollars) in 2014, with more than 1,500 market players similar to Lending Club in the United States or Zopa in the United Kingdom.

“The sharing economy is revolutionizing many sectors in China,” said venture capitalist Li Xiao, a founder of Joy Capital, the firm that led a 60-million-U.S.-dollar round of financing for Xiaozhu. “And it’s still accelerating.”

CHANGING ENVIRONMENT

When Xiaozhu started out in 2012, many questioned whether the Airbnb model would prosper in China. The doubters said the Chinese would never feel comfortable with strangers in their homes.

But Chen Chi was not deterred and after two years, Xiaozhu’s profits have increased dramatically, with six time more transactions so far this year than last year.

Better individual credit reporting has helped build trust, the very foundation of sharing, Chen said.

Individual credit checks have never been a significant factor in evaluating credit worthiness in China. Before this year, the country had only one recognized credit bureau, an institution under the country’s central bank.

With the growth of Internet finance, however, big players such as Alibaba and JD.com are very interested in personal credit reporting. Alibaba’s Ant Financial launched credit scoring service Sesame Credit in January while rival JD.com partnered with U.S. firm ZestFinance in June to provide similar services.

According to Li Xiao, culture is simply becoming more socialized. There was a time when everyone wanted standard products, Li said, but as the economy grows, people crave something different: a conversation with an insightful taxi driver, for example, or a meal specially cooked to individual requirements.

Chen Chi himself is a Xiaozhu host. In the last three years, his guests have included a young student back from studying abroad, a music lover who gave up everything in the pursuit of stardom, and an elderly woman who offered to wash his clothes. Hosting taught him things about the world that he would never have learned through his immediate social circle.

“When we talk about the sharing economy, we always focus on the economy side, but it also contains the sharing part — that is, being kind to strangers,” he said. “I’m addicted to it.”

REGULATORY UNCERTAINTY

While the sharing economy is good for entrepreneurs, it threatens many industry incumbents, which puts pressure on authorities to regulate.

Executives of ride-sharing services Uber China, Didi, and Kuaidi have been summoned by authorities many times in the past few months to discuss the legality of their operations without taxi licenses.

Regulation of lodging-sharing services in China is even more opaque. Companies like Xiaozhu are operating in a gray area in which there are no rules specifying how hosts pay taxes on what they earn — so they simply don’t pay.

“Technology always outpaces regulation. Even abroad, regulations are still evolving,” Li Xiao said, “but I think everyone supports things that are fundamentally good for society.”

After a meeting in July, Chinese leaders declared that the country’s Internet Plus strategy of integrating online business models with traditional industries meant it needed to be made easier for people to launch online enterprises. While the authorities are still figuring out how to handle the sharing economy, Chen Chi is confident that Xiaozhu et al will grow, just like their foreign counterparts.

“Airbnb has been around for eight years and Xiaozhu for just three. It’s only a matter of time,” he said. Enditem

 

Business, China, Chinese circle

China to improve domestic trade circulation

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BEIJING, Aug. 25 (Xinhua) — China will accelerate reforms on domestic trade circulation, Vice Premier Wang Yang said Tuesday

The reform aims to realize an orderly and efficient circulation system to better serve the economy, Wang said at a meeting about pilot work on domestic circulation.

He stressed that all pilot cities should make practical arrangements and strive to make breakthroughs within a year’s time.

Emphasis will be put on realizing a united market-oriented management system, stronger infrastructure capacity, application of more information technology, fair competition between e-commerce and traditional business, new law enforcement methods, a better credit system and smooth circulation networks, Wang said.

There are nine pilot cities, including Shanghai and Guangzhou. Enditem

 

Business, China

Shanghai eyes progress in smart manufacturing

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BEIJING, Aug. 24 (Xinhua) — Shanghai’s Economic and Information Technology Commission issued a guideline on Tuesday on pushing forward development of the smart manufacturing sector, reported Xinhua-run cnstock.com.

By 2020, an array of smart manufacturing factories is expected to be set up across Shanghai to better coordinate with the country’s Made in China 2025 plan, a ten-year national plan designed to transform China from a manufacturing giant into a world manufacturing power.

The city will accelerate construction of key platforms including a robot testing and assessment center and a robot quality supervision and inspection center, as well as several national level innovation centers and information security supervision platforms.

Leading A-share manufacturing enterprises in Shanghai including Baoshan Iron & Steel (600019.SH), Shanghai East-China Computer (600850.SH) and Shanghai Mechanical & Electrical Industry (600835.SH) are expected to benefit from the city’s booming smart manufacture sector. Enditem

 

China, culture

China considers amending laws to boost private schools

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BEIJING, Aug. 26 (Xinhua) — Legislators on Wednesday deliberated amendments to laws on education to promote the development of private schools.

The amendments were submitted to the country’s top legislature during its bi-monthly session that started on Monday.

According to the amendments, private schools can choose their own method of operation and register as non-profit or profit-making enterprises.

Non-profit private schools will charge fees according to regulations made by local governments, while for-profit private schools can decide the fee criteria on their own.

Private schools operating in violation of the regulations and rules should be shut down. Violators should return fees and may be fined one to five times of their illegal gains, said the amendments. Enditem