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After Chinese Currency Depreciation, Funds Began Moving Overseas

Well-known Chinese news site Sina recently reported that the sudden depreciation in Chinese currency caused a lot of wealthy Chinese people to regret that they had not moved their funds overseas sooner. As a result, they are now acting quickly to transfer a portion of their money to foreign accounts. A private business owner Mr. Tang said that he is sponsoring his son’s college studies overseas, which means he does not have the flexibility to use other than U.S. dollars. If he must change to U.S. dollars, he thinks that he will do it sooner rather than later; because of the recent RMB depreciation, he just lost nearly US$10,000. According to a Boston Consulting Group, China has a minimum of four million families with over US$1,000,000 worth of assets. Many private bankers think that many of these people are making more investments overseas. A J.P Morgan Chase analyst expressed the belief that, with the depreciation, combined with the possibility of a U.S. interest rate increase, the speed of money flowing out of China will accelerate. Many professional money managers agreed that the wealthy people in China will not count on the Chinese government’s capability to stabilize the currency. 

Source: Sina, August 14, 2015
http://finance.sina.com.cn/world/20150814/113522966474.shtml

BBC Chinese: Posters for the Movie “The Cairo Declaration” Caused Controversy

BBC Chinese recently reported that the Chinese military owns the August First Film Studio which makes movies. The studio just released posters for its upcoming new movie The Cairo Declaration. The Cairo Summit was a major milestone event that governed the end of World War II in the Pacific region. U.S. President Franklin D. Roosevelt, British Prime Minister Winston Churchill, and President of the Republic of China Chiang Kai-shek attended the Summit. Russian leader Stalin and Chinese Communist Party leader Mao Zedong did not participate. However the posters that the August First Film Studio distributed included both Stalin and Mao but not Chiang Kai-shek. This resulted in a large wave of debate across the Chinese Internet. Many netizens accused the government of once again attempting to misrepresent history and called for telling the true story behind the Cairo Declaration. The officials from the August First Film Studio explained that the movie was to cover all aspects of the Cairo Summit and that the Communist Party did play an important role in World War II.  

Source: BBC Chinese, August 2015
http://www.bbc.com/zhongwen/simp/china/2015/08/150815_china_movie_cairo_declaration

Guangming Daily: Survey Says 80 percent of Haigui Feel They Are Underpaid

Guangming Daily published an article reporting on a recent survey of Haigui [Chinese language slang term for Chinese people who have returned to mainland China after having studied abroad]. According to the results of the survey, 80 percent of Haigui felt that their salaries were below their expectations. In 2014, close 1.8 million people returned back to China after studying abroad, which accounted for 51.4 percent of the total who left China to study abroad. The survey showed that most of the Haigui found jobs in large cities, including Beijing, Shanghai, Guangzhou, and Shen Zhen. Those in the banking and financial industry amount to 14.3 percent, while the rest are spread over retail, real estate, and internet industries. Few are in new technology or in culture industries. The survey found that the overall job satisfaction of the Haigui is low. Close to 39.5 percent change jobs within the first two years and 28.8 percent change jobs between three to five years. They also need time to adjust to the domestic job market as well. 

Source: Guangming Daily, August 21, 2015
http://economy.gmw.cn/2015-08/21/content_16755740.htm

People’s Daily: China Has an Excess of Commercial Real Estate

People’s Daily published an article which reported that, during the recent 2015 Boao Real Estate Forum in Hainan, experts attending the forum concluded that the Chinese market has an excess of commercial real estate. The article said that it is a difficult situation that will last for a long period of time. Everyone must accept it and be ready to endure the resulting consequences. According to the article, in Tianjin, at least five shopping malls and department stores closed in the past six months. The empty spaces had to be rented out as business buildings. Some of them are on a month to month basis at only 80 yuan (US$12.52) per square meter. In Chongqing, the vacancy rate of the shopping centers is at 10.2 percent. The article stated that the weak consumer market has affected the vacancy rate, with the growth rate falling behind the newly developed commercial shopping centers. Some of the vacancies resulted when the centers tried to bring in improper store brands.

Source: People’s Daily, August 23, 2015
http://house.people.com.cn/n/2015/0823/c194441-27502236.html

People Daily on Party Organization Development on College Campuses

People’s Daily published an article on the development of Party organizations in colleges in China. According to the article, by June 30, 2014, there were over 90,000 student organized Party branches and 90,000 faculty organized Party branches in colleges in China. The article stated that some college Party organizations lack activities and events to attract new members, while other colleges appoint those who don’t have “high credentials,” such as those with top academic ranking and education, as the leader for the Party branch office. Meanwhile, Party development work in colleges faces a new challenge as more and more young professors are Haigui [Chinese language slang term for Chinese people who have returned to mainland China after having studied abroad]. According to the article, “It is a new task for the Party in terms of how to develop Party members among the talented youth and the elite and to rally them around the party.” The article also mentioned a few colleges and shared their experiences on how they have developed Party members at the grass roots level on campus. 

Source: People’s Daily, August 23, 2015
http://edu.people.com.cn/n/2015/0823/c1006-27502078.html

Heightened Security for September 3

According to Beijing Public Security, in preparation for China’s commemoration of the 70th anniversary of the end of World War II on September 3, the police have launched a citywide security campaign that involves 850,000 people throughout the city’s various districts. During the parade, the leaders of the Communist Party will review the troops. 

Starting from August 20, the 850,000 participants in the security campaign will be wearing red armbands and stand as guards along Beijing’s main streets, in different communities, in shopping malls, and in other public places. The security requirements include patrols on every street or alley, guards at designated key locations, and lookouts at government buildings, shopping malls, stores, and markets. 
Source: People’s Public Security Daily reprinted by People’s Daily, August 20, 2015, http://society.people.com.cn/n/2015/0820/c136657-27492645.html

PLA Daily Editorial: Be Ready to Fight at All Times

PLA Daily published an editorial article re-emphasizing the importance of building a strong army and being ready to fight at all times. The article was also posted on all the major state media and military websites. 

The article stated, “Today, although the smoke of war has dispersed, the ghosts of militarism still linger. Some Japanese political organizations and politicians go against the tide of history and against peace and justice; they selectively forget the disaster they brought to another country but they always remember their own ‘misfortunate.’ They resolutely deny the barbaric crimes of the Japanese invasion, insist on paying tribute to their war criminals, forcibly lift the ban on collective self-defense, openly distort historical facts, trample on the human conscience, and undermine the post-war international order.” 

The article stressed in bold font that, “Through these phenomena, we can easily see that Japanese militarism’s desire to eliminate China has never died, that is has refused to recognize the defeat in that war, and that it has secretly been gathering strength in an attempt to stage a comeback. Without vigilance and precautionary measures, there is still the risk of a repeat of this tragedy of history.” 
“At present, China is at the critical juncture of becoming big and strong. Some Western countries are unwilling to see the rise of China, doing everything possible to contain and suppress China, repeatedly squeezing China’s strategy for development, and bringing the focus of international strategic competition toward the Asia-Pacific region. Thus the likelihood of disturbances and war taking place on our doorstep has increased.” 

Source: PLA Daily, August 18, 2015 
http://www.81.net/pinglunjingxuan/2015/0QL391H015.html 
http://jz.chinamil.com.cn/gd/2015-08/17/content_6634141.htm

Xinhua: Out of Control Explosions û Investigation into Ruihai International Logistics

On August 19, 2015, Xinhua published an investigative article on Tianjin Dongjiang Port Ruihai International Logistics, which is where the huge chemical explosions occurred on August 12, 2015. According to Xinhua, the real owners of the company are the board chairperson Yu Xuewei, who is a former executive of Sinochem Tianjin Co., Ltd., and the associate board chairperson Dong Shexuan, who is son of the former director of the Public Security Bureau of Tianjin Port. The Ruihai Company obtained a hazardous chemicals business license and used personal connections to pass all evaluations including fire and environment safety evaluations.

According to Ruihai’s environmental report, Ruihai distributed 130 survey questionnaires to the residents in the neighborhood and 128 residents replied “yes” to the hazardous chemical warehouse. However, [it was later determined that] residents living nearby had never seen the questionnaires and nobody was aware that there was a hazardous chemical warehouse in the neighborhood. Yu Xuewei, the Ruihai board chairperson, said that he had not participated in the environmental survey. None of the other safety assessment reports on Ruihai have yet been disclosed to the public.

Source: Xinhua, August 19, 2015
http://news.xinhuanet.com/local/2015-08/19/c_1116305131.htm