On June 10, Beijing city’s local newspaper, Jinghua Times (京华时报), reported that the State Council Legislative Affairs Office called for public comment on the "Administrative Approaches to the Dissemination of Audio-visual Programs via the Internet or Other Information Networks (revised draft)" (hereinafter referred to as the "draft"). According to the draft, Internet video broadcasters should be staffed with professionals who review the program contents. If broadcasters do not do so, they should be given a warning for correction and subject to a fine up to 30,000 yuan ($US 4,834). In addition, the current affairs audio-visual news programs that the Internet service providers broadcast should be those programs that regional or city level radio stations or TV stations already produced and broadcast. This means that homemade current affairs news programs are to be banned from the Internet.
Li Keqiang: Cancel Household Register Restrictions and Diploma Requirements for Entrepreneurs
Chinese Premier Li Keqiang chaired a State Council Executive Meeting on June 4, 2015. To facilitate innovation and entrepreneurship in China, the meeting decided to cancel the household register restrictions and academic diploma requirements for entrepreneurs. However, residence restrictions in Beijing, Shanghai, Guangzhou, and Shenzhen will not be canceled within a short period of time due to the limited capacity of these first tier cities. The 2nd and 3rd tier cities will take the lead to attract new entrepreneurs from outside, who may or may not have academic diplomas. “As long as you have the will and ability to start a business, no matter where are you from, and regardless of your educational level, the policies will support you.”
Source: People’s Daily, June 7, 2015
http://politics.people.com.cn/n/2015/0607/c1001-27116255.html
Oriental Daily: The CCP Deceived the World about the Yangtze River Shipwreck Rescue.
On June 7, 2015, Hong Kong Oriental Daily published a commentary titled, “The CCP Deceived the World about the Yangtze River Shipwreck Rescue.” On June 1, 2015, a Yangtze River Passenger Cruise Ship, “The Eastern Star” capsized. Of the 456 people on board, only 14 people survived. Seven swam ashore; five drifted to other places where local residents saved them, and “rescue teams” saved two more. The other 444 people either died or were missing. This shipwreck caused the most deaths since 1949, the year when the People’s Republic of China was established. From June 2 to June 5, the Chinese Communist Party (CCP) Propaganda Department issued 5 orders to restrict and ban media coverage.
On June 2, the CCP Propaganda Department notified all media that no reporters were allowed to visit the shipwreck area or conduct interviews. Many reporters ignored the ban and still interviewed some survivors and witnesses. Their articles could not be published. A 2nd notice from the Propaganda Department stated that all media in China could only publish relevant Xinhua News articles or broadcast the China Central Television (CCTV) footage. "The news must highlight the CCP Central Committee’s attention to the incident, to the rescue efforts, and to the treatment of the victims. Do not describe the details of the tragedy. Whoever violates the rules must be held accountable."
The Oriental Daily commentary concluded, “China’s official media said the rescue efforts ‘touched China.’ Actually, everything was planned in detail and under strict media control. The CCP deceived the world.”
Source: Hong Kong Oriental Daily, June 7, 2015
http://hk.on.cc/cn/bkn/cnt/commentary/20150607/bkncn-20150607000317468-0607_05411_001.html
Exports Slide Further While Imports Plunge
According to China’s General Administration of Customs, in May, Chinese exports fell for the third consecutive month, while imports plunged to the lowest level in three months. These developments highlight the adverse Chinese domestic economic environment, which may trigger further monetary policy adjustments.
Phoenix TV Website: China’s Bull Market Is a Long Term Necessity
Liu Shan, deputy editor-in-chief of China Business Times, reported on an interview of an anonymous "authoritative insider" on the Chinese economy. People’s Daily published the interview on its front page on May 25. Then on May 26, the Hong Kong based Phoenix Television’s website carried an analysis of the interview.
One of the things that People’s Daily indicated in the interview, according to Liu, is that "China’s bull market is a long term necessity."
People’s Daily‘s interview of the "authoritative insider," when commenting on China’s economic downturn, acknowledged the vital effect of investment on economic growth, "At this stage of China’s development, whether savings can be transferred to investment will be the key to stable economic growth. Given the high rate of household savings, the Chinese people are having trouble getting a sustainable return on assets. At the same time, the real economy and key construction projects lack sufficient funding. More financing channels need be explored to tap into the potential of private capital and to transfer more savings into investment."
It is clear from the "authoritative insider" that the public needs sustainable income from savings and the real economy need financing. The most straight-forward approach is to increase direct financing. This can only be done through the capital market; that is, by directing savings into the pre-IPO market, the equity market, and the bond market so as to generate income based on people’s cash assets. As a result, sustaining a healthy bull market should have been a strategic decision of the central government, rather than a short term expediency.
The central government would also like to achieve the dual effect of stabilizing growth while reducing leverage. Again this approach would effectively increase direct financing. Through direct financing, banks’ loan-deposit ratio could be lowered. We consider that reducing leverage on equity financing by the regulatory authorities is not meant to suppress the equity market. Instead, it is meant to prevent the bubble from growing too fast to lead to a sudden burst. If regulatory measures are appropriate, we expect this round of bull market will last at least three years.
Source: Pheonix TV Online, May 26, 2015
http://finance.ifeng.com/news/special/xiaobg74/
Xinhua: Insulting China with Devil’s Curse; How Does Aquino Become So Brazen
Xinhua published a group of articles in its web magazine, International Sphere (Volume 548) striking back at Philippine President Aquino’s remarks during his visit to Japan in which he compared China to Nazi Germany. In the introduction, the editor wrote, “During his visit to Japan, Philippine President Aquino III made irresponsible remarks regarding the South China Sea issue. This was expected. What was surprising was that, as a head of state, Aquino totally disregarded the bottom line in diplomatic relations, openly talking nonsense, and comparing China’s reasonable and lawful activities in the South China Sea with Nazi Germany. In openly insulting a big country that has normal diplomatic relations with the Philippines, it is losing the national dignity of the entire Philippines. If a head of state makes such a downcast speech, how can the nation be noble and the people have pride!”