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All posts by LKY - 3. page

Publicly Traded Real Estate Companies to Face a Debt Payback Peak in 2018 and 2019

Guangming Daily carried an article on the increased debt among publicly traded real estate developers. The article disclosed that as of April 13, 86 publicly traded real estate companies had filed their 2016 annual report and that their total debt exceeded 2.750 trillion yuan (US$0.4 trillion), up 25.5 percent compared to last year, while their total capital was 3.75 trillion (US$0.54 trillion), up 24.1 percent from last year. Out of 86 real estate companies, 15 to 17 percent of the companies exceeded an 80 percent debt to asset ratio. Thirty-nine to 45 percent of the companies had a total debt exceeding 10 billion yuan (US$1.45 billion), while 17.4 percent of the companies had a debt to asset ratio greater than 80 percent. Based on the available financial data for 63 companies, even though their short term debt dropped by 6.5 billion (US$0.94 billion) their debt was still 108.7 billion yuan (US$15.8 billion). According to the article, most of the companies will face a debt payback peak in 2018 and 2019.

Source: Guangming Daily, April 14, 2017

Xinhua: Eight “Red Line” Boundaries that Party Officials Are Forbidden to Cross on WeChat

Xinhua published an article which listed eight boundaries that Party officials shouldn’t cross on WeChat, a popular social media in China. The requirements include:
1) Providing irresponsible commentaries on the Party’s policies and causing damage to the Party’s unity
2) Spreading pornographic pictures and videos
3) Spreading Internet rumors
4) Accepting bribes through a WeChat “red envelope” account (a means of transferring money through WeChat)
5) Using a WeChat “red envelope” account to buy election votes
6) Leaking confidential national and company information
7) Conducting online WeChat business
8) Posting improper online commentaries

Source: Xinhua, April 16, 2017

China Faces Shortage of Tens of Millions of High Tech Workers

According to an article in Xinhua, China faces a labor shortage of tens of millions of high tech workers while its college graduates are struggling to find a job. The article stated that in Sichuan Province there are only 6.8 million technical workers and only 1 million of them are high tech workers. In the Hangzhou labor market, 71.4 percent of the companies lack high tech workers. In Tianjin, the ratio of the demand for high tech workers to the supply is 10:1. The statistics also indicate that, due to workers’ low skill level, Chinese labor productivity is only at 40 percent of the world’s average or 7.4 percent of the rate in the U.S. The article pointed out that this is one of the main reasons that China is a giant but not strong.

Source: Xinhua, April 17, 2017

Duowei News: More Shakeups in Financial Industry Expected Prior to 19th Congress

Duowei News published an article reporting that, on April 9, the Central Commission for Discipline Inspection took down two senior officials in the financial industry due to corruption charges: Xiang Junbo, Chairman of the China Insurance Regulatory Commission and Li Changjun, director of the Beijing branch of the Export–Import Bank of China. According to the article, the move is an indication that Beijing has reached its limit in dealing with financial disasters that have taken place in the past and which have caused quite an embarrassment. It has determined that, prior to the upcoming 19th National Congress, it will shake up the financial industry to ensure that it “maintains the same understanding as the Central Administration.” The article stated that the Chinese official media praised the Party’s determination in its anti-corruption effort. The Hong Kong media, however, indicated that these two individuals were targeted because it was their “inside job” in the financial industry which caused a number of financial disasters over the past years: the stock market crash in 2015 and the battle between Vanke and Baoneng over stock ownership in 2016. The article further explained that, “The analysis shows that reforming the Chinese financial market is no less complex than unifying ideology within the Party or reforming the military… it is expected that Beijing will launch an anti-corruption effort on an even larger scale to eliminate completely any inside dealings that are contrary to its direction.”

Source: Duowei News, April 10, 2017

Statistics Show More Party Officials Committed Suicide after 18th National Congress

Radio Free Asia carried an article which quoted statistics from Lianhe Zaobao a Singapore based Chinese language newspaper. The article pointed out that the number of Chinese Party officials who committed suicide grew significantly in 2014, which was the third year after the Party’s 18th National Congress held in October 2012. The article reported that, according to the statistics that the Chinese Academy of Sciences released, from 2009 to 2016, the number of Party officials who committed suicide was as follows: 21, 25, 22, 17, 10, 59, 50, and 39. While the article pointed out that in 2013, the second year following the party’s 18th National Congress, the number dropped to 10, it grew five times to 59 in 2014. Even though the number has decreased since 2014, it was still significantly higher than the numbers before 2012. Reports indicate that the corruption scandal and inadequate personal ability are blamed as the main cause for the stress which led to depression. The most common suicide choice was jumping off buildings.

Source: Radio Free Asia, April 10, 2017

Xinhua: Citizens Who Report Tips on Spying Activities Will Receive a Monetary Award

Xinhua reported that, on April 10, the Beijing Public Security Bureau issued a notice which announced that it will issue a 100,000 to 200,000 yuan (US$14,485 to $28,971) award to any citizens who provide tips that will prevent spying activities that endanger China’s security. The notice listed a number of ways to report the tips, including telephone and mail. It also stated that the Public Security Bureau will ensure the confidentiality of those who provide tips while providing protective measures for those who might face risks to their personal safety. The notice also advised that those who provide fake or false information that endangers the safety of other individuals will be subject to legal responsibility.

Source: Xinhua, April 10, 2017

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