Chinascope – Page 727

People’s Daily: Banking Industry Suffers an Increase in Nonperforming Loans

People’s Daily recently reported that the third quarter numbers for commercial banks showed significant negative signs of an economic slowdown. All 16 publicly traded banks have seen apparent declines in their net profit growth rates. The 16-bank Q3 reports have also demonstrated a rapid increase in nonperforming loans, reaching RMB 605 billion (nearly US$99 billion). This represents a year-over-year increase of 31.7 percent. Some banks revealed that most of these nonperforming loans were seen in the east coast provinces and in the sector of medium and small sized private businesses. Many of these banks are now more focused on cleaning up low quality assets as well as increasing their loans to the more profitable industries. Some experts expressed the belief that a certain level of increase in more nonperforming loans can be expected in the foreseeable future.

Source: People’s Daily, November 1, 2014

http://finance.people.com.cn/n/2014/1101/c1004-25952006.html

Briefings | | November 4, 2014 | Economy/Resources

Xinhua: Xi Jinping Addressed the Military Political Work Conference

Xinhua recently reported that Chinese President Xi Jinping, who is also the General Secretary of the Communist Party Central Committee as well as the Chairman of the Central Military Commission (CMC), delivered an important speech at the Military Political Work Conference held in Gutian, Fujian Province from October 30 to October 31. Xi emphasized that political work is extremely critical to ensuring the performance of the military. He described political work as the “life line” for the military to support the “Chinese Dream.” He called for the firm establishment of ideals, Party principles, combat standards and political prestige. In his speech, Xi asked for immediate action on the five focal points of building the “military soul,” enhancing the management of high-ranking officers, pushing anti-corruption, raising the fighting spirit, and innovating in the political work area. Gutian, Fujian Province is believed to be the original location where the Communist Party established its “military political principles” during the Civil War.

Source: Xinhua, November 1, 2014

http://news.xinhuanet.com/politics/2014-11/01/c_1113074055.htm

Briefings | | November 4, 2014 | Defense/Military

BBC Chinese: Indian Air Force Asked Employees and Their Families to Avoid Chinese Smart Phones

BBC Chinese recently reported that the Indian Air Force officially warned its employees not to use China made smart phones, especially the Xiaomi brand. The family members of the Air Force personnel were also asked not to use those smart phones. According to the Air Force spokesperson, the advice was based on recommendations made by F-Secure, the well-known Finnish security advisory consulting company, which is also the security contractor for the Indian Air Force. Recent F-Secure research showed that multiple models of Xiaomi smart phones automatically sent the phone owner’s name, phone number, phone device identifier, contacts list, and text messages to remote servers located in Beijing without getting the owner’s permission or even notifying the owner. In the meantime, the Xiaomi Vice President of Global Services stated in an email that Xiaomi will be moving its Indian services and communications data to Amazon servers located in Singapore and the United States. The move is expected to be completed by the end of this calendar year.

Source: BBC Chinese, October 31, 2014

http://www.bbc.co.uk/zhongwen/simp/world/2014/10/141030_india_china_smartphones

Briefings | | November 4, 2014 | Geo-Strategic Trend

Xinhua: State Council Information Office to Introduce Internet Security Laws

Xinhua reported that the State Council Information Office announced on November 2 that it will soon introduce the most comprehensive and up to date laws to regulate activities related to Internet security. According to the statistics that the Information Office released, by the end of June 2014, there were 632 million netizens in China. Of those, 527 million were mobile phone netizens. The Deputy Director of the Information Office said, “It has made China the largest mobile Internet market in the world and has also made the Internet the largest media platform in China.” The office listed the top eight illegal activities on the Internet. These include: publishing news releases using fictitious public institutions or media; transmitting pornographic information; creating announcements of terrorist attacks; producing fake advertising; spreading rumors; making remarks that damage national unity; slandering others; and violating the privacy of others.

Source: Xinhua, Nov 3, 2014
http://news.xinhuanet.com/info/2014-11/03/c_133761619.htm

Briefings | | November 3, 2014 | Government/Politics

China Index Academy: Statistics Show Prices of Newly Constructed Homes Dropped in October

Xinhua reported that, according to a report that the China Index Academy published, based on 100 cities that were sampled, the average price for newly constructed homes was 10,629 yuan (US$1,733) per square meter in October, down 0.4 percent from September and 0.52 percent lower when compared to the same period in 2013. According to the report, October is also the sixth consecutive month that saw housing prices drop. The report also projected that cash support from the banks will remain the main driver to determine the trend for the real estate market in the 4th quarter. It predicted that, in the fourth quarter, the market will continue to burn off the existing inventory, while housing prices could fall further compared to the previous months.

Source: Xinhua, November 3, 2014
http://news.xinhuanet.com/house/bj/2014-11-03/c_1113081410.htm

Briefings | | November 3, 2014 | Economy/Resources

Wang Qishan: The Party Cannot Afford to Lose the Battle against Corruption

People’s Daily published an article written by Wang Qishan, Secretary of the Central Commission for Discipline Inspection. The article reiterated the key points from the “Decision Concerning the Rule of Law” recently passed during the Fourth Plenary Session of the 18th Central Committee of the Chinese Communist Party. Wang further emphasized the importance of adhering to the absolute leadership of the Party, strengthening the rules within the Party, managing the country with law and virtue, and persisting in the anti-corruption battles. Wang listed four major tests and dangers that the party currently faces and said that the Party’s foundation is threatened because of them. In the article, Wang stated that the Party still faces challenges in the battle against corruption and the fight to ensure clean government. He said that it is a battle that "the Party cannot afford to lose."

Source: People’s Daily, November 3, 2014
http://politics.people.com.cn/n/2014/1103/c1024-25959682.html

Briefings | | November 3, 2014 | Government/Politics

China’s State-Media Expose Foreign Forces behind the HK Occupy Central

People’s Daily quoted a report from Hong Kong’s Wen Wei Po about the illegal "Occupy Central [movement]." It said that that material supplies are endless and that some analysts have pointed out that the opposition, solely by itself, certainly cannot sustain such an undertaking. The Hong Kong Environmental Protection Association’s environmental monitoring report on "Occupy Central" noted that, by a conservative estimate, the consumption of goods in the "occupied territories" within just one month comes to more than HK $250 million. Taking out the 20 percent of the materials that the public donated, a total of HK$200 million in goods came from unknown sources. The media article quoted "Legal scholars" who have questioned whether external forces provided these materials of unknown origin to support the "Occupy Central" activity. They urged the police and the Legislative Council to investigate. "If ‘Occupy Central’ is a crime, then anyone who provides material supplies is an accomplice."

Source: People’s Daily, October 31, 2014
http://hm.people.com.cn/n/2014/1031/c42272-25944361.html

Briefings | | October 31, 2014 | Government/Politics

China’s Banks See Non-Performing Loans Surge

The cooling off of the housing market and the economic slowdown have led to a sharp increase in bad debts and in the non-performing loan (NPL) ratio.

The bad debts of the China Industry and Commerce Bank hit a record high – the hightest since 2006. In the third quarter, the NPL ratio was 1.06 percent. The NPL amount grew nine percent reaching 115.5 billion yuan. This is the largest increase since 2006.

Quarterly reports of other banks also showed that the NPL ratio and amount have increased since the beginning of 2014. At the end of September, the NPL ratio was 0.99 percent for the China Industrial Bank, 1. 20 percent for China Merchants Bank, and 1.39 percent for China CITIC Bank. The growth rate of the NPL was 0.23 percentage points, 0.30 percentage points and 0.36 percentage points, respectively.

Source: Chinese Business, October 30, 2014

http://www.cb.com.cn/finance/2014_1030/1091953.html

Briefings | | October 31, 2014 | Economy/Resources

Wu Guoguang: Xi Jinping’s Reversal of the Course, Will China’s Transition be Peaceful or Marked with Bloodshed?

Cheng Xiaonong: U.S.-China Strategic Relations Have Crystallized

Xinhua Commentaries: “Exposing the Three Major Political Deficits of the U.S.”

The CCP’s Performing Arts Troupes in the U.S.