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All posts by RWZ - 202. page

Xinhua: China to Test Privately Owned Banks This Year

Xinhua recently reported that the China Banking Regulatory Commission (CBRC) announced on January 7 that China is set to start an experiment to allow banks to be fully privately owned. The CBRC is planning to take a very conservative approach and allow only three to five banks this year. Meanwhile private capital can now be part of the ownership of current banks. The fully private banks will only be able to do business under a “limited license,” which will impose restrictions on the scope of business, operating regions, and customer profiles. In addition to these “limited restrictions,” all private banks will be required to establish a “will,” which must explain what will happen if the bank were to file for bankruptcy in a circumstance where taxpayers provided no bailout. Over thirty publicly traded companies have filed their applications to enter the banking business.
Source: Xinhua, January 7, 2014
http://news.xinhuanet.com/2014-01/07/c_125965308.htm

People’s Daily: Land Resources Restricted in Cities with Population over Five Million

People’s Daily recently reported that Jiang Daming, Minister of Land and Resources, announced in a speech given at a conference that from now on cities with a population of over five million will not be granted new land resources for construction. However, this new rule does not apply to land that’s considered “living space,” which means the housing market will not immediately be impacted. Most of the capital cities of the provinces fall within the scope of the new rule. This is in line with the recently announced new policy of strict control of the scale of the population in large cities. The new rule focuses on managing the supply of industrial and business land. The Ministry of Land and Resources is encouraging cities to make better use of the land they have already been granted. Jiang also pointed out that, in addition to this new rule, more regulations are being planned to enable the clear identification of city boundaries. The up-coming policies will ensure the safety of permanent agricultural land.
Source: People’s Daily, January 10, 2014
http://politics.people.com.cn/n/2014/0110/c70731-24086306.html

CRN: China’s Economy Faces Four Major Challenges

China Review News (CRN) recently published an article discussing China’s macroeconomic trend, based on the goals set by the recent Third Plenary Session of the 18th Central Committee Conference of the Communist Party. The author expressed the belief that China’s rapid economic growth was largely based on demand that was not domestic. Over the past 35 years, China’s domestic consumer market has been playing less and less of an important role in its GDP numbers. The article identified four primary challenges China faces: 1) Taking advantage of the rapid developments in the science and technology space; 2) Reducing the dependency on pure government investments for economic growth; 3) Adjusting the economy gracefully to deal with the lack of younger workers due to an aging society; 4) Balancing the domestic economy and China’s role in the global economy. The author called for a significant change of the economic growth model and structure so as to focus more on domestic consumers. 
Source: China Review News, January 12, 2014
http://hk.crntt.com/doc/1029/7/4/5/102974525.html?coluid=53&kindid=0&docid=102974525&mdate=0112082909

People’s Daily: National Conference of Publicity Ministers Held in Beijing

People’s Daily recently reported that the National Conference of Publicity Ministers was held in Beijing. Liu Yunshan, a member of the Standing Committee of the Communist Party Politburo chaired the Conference. Liu delivered a speech calling for full compliance and implementation of the “spirit” of the Party’s past three most important conferences as well as the essence of the Secretary General Xi Jinping’s speeches. Liu insisted on the continuation of publicity work to spread Marxism, Mao’s Philosophy, the Deng Xiaoping Theory, Jiang Zemin’s “Three Represents,” as well as Hu Jintao’s Scientific Social Development Viewpoint. Liu also emphasized the importance of continuing to push having confidence in the Party’s path, its theory, and the socialist system. He especially mentioned the importance of “guiding public opinion” and “better control over the Internet based media.” 
Source: People’s Daily, January 4, 2014
http://cpc.people.com.cn/BIG5/n/2014/0104/c64094-24021659.html

Xinhua: Chinese Real Estate Buyers Are Second Largest Group in the U.S.

Xinhua recently reported that Chinese real estate buyers spent US$12.3 billion in one year in the U.S. real estate market, becoming the second largest international buyer group after the Canadians. For example, a private Chinese investor spent US$725 million to acquire One Chase Manhattan Plaza, a 60-story office building located in downtown Manhattan. Facing the New York Federal Reserve building, it was built by David Rockefeller and has been used by JP Morgan Chase since 1961. The continuous appreciation of the Chinese currency is making real estate in New York and San Francisco look cheap. Chinese investors are also pouring money into stocks, bonds, trust certificates, intellectual property and patents. However the article also reminded the readers that the last time a Japanese investor bought the Rockefeller Center, it ended with a miserable loss and “in tears.”
Source: Xinhua, January 5, 2014
http://news.xinhuanet.com/world/2014-01/05/c_118831948.htm

BBC Chinese: China Abolished the Labor Camp System

BBC Chinese recently reported that China’s People’s Congress passed a resolution that put an end to the Reeducation through Labor Camp System. The system had been in effect for over fifty years. It allowed the police to “jail” any “suspicious” people in the Camp system for as long as four years without going through a court. Many people were held in these camps for longer than four years. These “suspects” lost their freedom entirely and were forced to do heavy labor work as well as to receive “reeducation.” For a long time, human rights groups all over the world have been targeting this Camp System with their criticism. Though it has finally ended, people still question whether the system has taken on another, different form of “life” such as “Rule of Law Awareness Study Classes.” 
Source: BBC Chinese, December 28, 2013
http://www.bbc.co.uk/zhongwen/simp/china/2013/12/131228_china_politics_rights_justice.shtml

People’s Daily: China’s First Commodity Exchange Opened Its Doors

People’s Daily recently reported that the Bohai Commodity Exchange (BOCE) officially started its first business day in Tianjin on December 18. BOCE is a trading platform for large scale commodity exchanges, following international trading standards. Initial commodity categories focus on crude oil, coal, nonferrous metals and agricultural and forestry products. The Exchange is planning to provide comprehensive services including trade, settlement, logistics, and finance. The goal of BOCE is to become a commodity trading center and pricing center with significant power to influence the market. By the end of 2013, over 60 brands and commodities had been listed on BOCE. 
Source: People’s Daily, December 19, 2013
http://www.022net.com/2009/12-19/426241293324347.html

NDRC: International Investments below US$1 Billion No Longer Require Approval

Southern Metropolis Daily recently reported that the Chinese National Development and Reform Commission (NDRC) announced a new policy governing Chinese overseas investments. The new policy allows Chinese investors not to seek Chinese government approval for investments below US$1 billion outside of China. Instead, the investors are asked to fill out a for-record-only form. The new policy replaces the old requirement to get approval from NDRC, the Ministry of Commerce, and the State Administration of Foreign Exchange (SAFE), which typically took four months. Both state-owned companies and privately owned companies enjoy the same rights under this new rule. However, the new policy does not apply to investments involving “sensitive regions or sensitive industries.” 
Source: Southern Metropolis Daily, December 16, 2013
http://news.nandu.com/html/201312/16/600970.html