BBC Chinese: South China Morning Post Acknowledged Acquisition Talks under Way
Three Major Players in Market Bailout Now under Investigation
On Thursday, November 26, and Friday, November 27, three brokerage firms that were major players in this summer’s market bailout announced that the China Securities Regulatory Commission (CSRC) had placed them under investigation.
Beijing Youth Daily noted, in a report widely cited by other state media and web portals, that China’s A-share market booked the steepest single day drop in three months on Friday, with shares of many financial firms triggering their daily limit.
The three leading brokerages, Citic, Guosen, and Haitong, all rank among China’s top 10 securities firms. It was the national regulator CSRC that initiated this most recent round of investigations.
Earlier in August, local regulators initiated investigations into Haitong and three other major brokerage firms, GF, Huatai, and Founder, for allegedly failing to identify clients properly. Regulatory authorities are now officially probing a total of six top players of the so-called National Team, which consists of 21 brokerage firms the government relied on exclusively to bail out the financial market this summer.
Cheng Boming, Citic general manager, and Chen Hongqiao, president of Guosen, are reported to have had close ties with Zhang Yujun, the former CSCR assistant chairman.
Zhang coordinated the massive intervention during this summer’s market rout. On September 16, he became a target of the Central Commission for Discipline Inspection for "severe violations of discipline." Cheng, along with a dozen or so of Citic’s top managers, was arrested a day earlier. On October 23, Chen, who served as Zhang’s deputy before joining state-owned Guosen Securities, hanged himself in his Shenzhen home.
Citic was also implicated in a case involving a star private equity fund manager, Xu Xiang, who was detained in early November on suspicion of insider trading.
Source: Beijing Youth Daily, November 29, 2015
China’s GDP Growth for 2015 May Be 4.5 Percent
In a recent interview with China Times, Liu Wei, a member of Xi Jinping’s advisory group, President of the People’s University, and prominent economist, stated that the growth of China’s GDP may be 4.5 percent.
Eleven Chinese Military Aircraft Approached Ryukyu
Xi Jinping’s Push to Rule the Nation by Law Is Facing a Big Battle
[Editor’s Note: On October 28, 2014, [the CCP Central Committee] authorized Xinhua to publish the Communique of the Fourth Plenary Meeting of the 18th Communist Party of China Central Committee. The meeting was held on October 20 -23, 2014, in Beijing. The plenum discussed and passed Xi Jinping’s report — “the CPC Central Committee Resolution on a Number of Major Issues Regarding Comprehensively Promoting the Rule of Law. (《中共中央关于全面推进依法治国若干重大问题的决定》)” [1]
In the report, Xi explained the draft process for the resolution and called for the reform of China’s legal and judicial systems. Xi said that in January [2014], the Politburo decided that the 18th Plenary Session of the Party would focus on issues relating to the comprehensive promotion of the rule of law. As the chief, Xi Jinping directly led a working group to draft a resolution for the 18th Plenary Session.] [2]
Qiushi: Seeking New Advances in Marxist Political Economy
Western Luxury Brands Will Close More Stores in China
With discounts, price reductions, and store closings, 2015 may have been the most turbulent year for luxury goods in China. According to Fortune Character Research Institute, 78 percent of the US$91 billion that Chinese spent in 2015 was spent outside of China. As for Western brand names in China, last week Louis Vuitton announced closure of three stores in China. In 2015 alone, 83 percent of Western luxury brands closed some of their stores. In the past several years, Prada closed 16, Chanel 11, and Burberry three. Fortune Character Research Institute predicted that the trend to close stores will continue and will be more widespread. In 2016, over 95 percent of luxury brands are expected to close some stores.