Chinascope – Page 793

Netease Financial: ICBC Stock Fell below Net Asset Value

Netease Financial, a well-known Chinese online financial news site, recently reported that the stock value of the Industrial and Commercial Bank of China (ICBC) fell below the Bank’s net asset value on January 15. ICBC ranked number one in China’s banking industry in terms of corporate loans and corporate deposits and Euromoney named ICBC the “Best Bank in China.” Ninety percent of the publicly traded Chinese banks are now suffering below net asset market prices. At the same time, 143 companies listed on the Chinese stock market fell below net asset value. Based on the outcomes of the recent central government audit reports, local government debts are at all-time highs. Most of them were funded by state-owned commercial banks. It seems the landslide of the banking industry’s stocks has not ended yet.

Source: Netease Financial, January 15, 2014

http://money.163.com/14/0115/15/9IL0MURF00251LJJ.html

Briefings | | January 21, 2014 | Economy/Resources

Study Times: How to Improve China’s Global Influence

The Chinese Communist Party Central Party School’s magazine, Study Times, recently published an article discussing how to enhance the power of China’s global influence. The article set a two-step goal for the Chinese economy: to catch up with the United States in the total volume of its economy within fifty years and to surpass the U. S. in per-person average GDP in another fifty years. To achieve these goals, the author offered a four-point strategy: 1) To push the construction of a green economy, which will solve the issue of resource constraint and achieve sustainability; 2) To push the reform of China’s income structure to achieve more fairness in the distribution of wealth; 3) To push innovation-driven growth to take advantage of a wiser population; 4) To construct a strong financial system, aimed at the U.S. dollar, the U.S. central bank, and the highly efficient U.S. financial market. The author concluded the article by calling for a stronger leadership of the Communist Party to lead the nation to the new global high ground.

Source: Study Times, January 13, 2014

http://www.studytimes.com.cn/shtml/xxsb/20140113/3729.shtml

Briefings | | January 21, 2014 | Government/Politics

The Number of Chinese Bloggers Declines

According to the China Internet Network Information Center’s annual report issued on January 16, 2014, there has been an overall decline in the use of such social media as weibo (microblogging), social media websites, and forums. In particular, the number of weibo users declined by 27.83 million users compared to the 2012 end of year statistics. The instant mobile messaging services showed an increase, reaching 532 million users.

According to Sina back in November 2013, it closed about 100,000 weibo accounts because they were in violation of the “seven bottom lines” – the law and regulations, the socialist system, the national interest, citizens’ legitimate rights and interests, the social and public order, morality, and the information’s authenticity.

Sources:

Xinhua, January 16, 2014

http://news.xinhuanet.com/2014-01/16/c_119000678.htm

Radio Free Asia, January 16, 2014

http://www.rfa.org/mandarin/yataibaodao/meiti/nu-01162014112625.html

Briefings | | January 17, 2014 | Information/Technology

Chinese Bank Deposits See Transfers

According to Xinhua, the China Banking Regulatory Commission is considering accelerating the introduction of bank insolvency regulations. Its official, Yan Jingmin, stated, “In the future, let capital speak. If a commercial bank cannot maintain solvency, it will exit.”

“To allow banks to go bankrupt means the State will not cover the deposits of customers in commercial banks [when the bank goes bankrupt],” added Xinhua. The invisible guarantee by the credit of State will end. The depositors would be compensated by the insurance mechanism established in the bank insolvency regulations.

It was further reported that under the proposed insurance mechanism, the maximum compensation to depositors would be 500,000 yuan. In a panic, Chinese depositors have started to transfer their money in excess of 500,000 to different banks.

Sources:

Xinhua, January 15, 2014

http://news.xinhuanet.com/fortune/2014-01/15/c_126006365.htm

Jinghua Times reprinted by People’s Daily, January 16, 2014 http://finance.people.com.cn/bank/n/2014/0116/c202331-24133060.html

Briefings | | January 17, 2014 | Economy/Resources

Li Jie: U.S.’s New War Strategy of Air Sea Battle Is Looming toward China

Li Jie, the chief expert at the Marine Research Center of the Three Strategies Institute (a “non-governmental” military think-tank in Beijing) published a commentary article in which he discussed the U.S.’s new war strategy; the “Air Sea Battle” against China.

The article said, “In recent years, the ‘Air Sea Battle’ has been kept in low-profile, but at the beginning of this year, the United States again started to talk highly about it. The U.S. military declared that it will increase funding to develop the ‘Air Sea Battle.’ The remark and new developments have revealed at least two pieces of information: First, since early 2009 when this concept was first introduced, the United States has never stopped for a moment doing research, demonstrating, testing, and perfecting the ‘Air Sea Battle.’ Now it has matured, and is becoming the core of military theory for the United States’ ‘return to Asia’ and ‘strategic rebalancing’ strategy. Second, in recent years, the United States has developed a large number of new weapons, which have come out one after another. Almost all of them were first deployed and applied at the forefront of East Asia and are continually undergoing experiments and being tested. This fully demonstrates that ‘Air Sea Battle’ is entering the ‘window of opportunity’ to be applied in real combat.

The article warns that “[China] should make sure forever that it does not to forget that the U.S.’s ‘sword of Damocles’ — the ‘Air Sea Battle’ — is looming toward us.”

Source: People’s Daily, January 15, 2014

http://military.people.com.cn/n/2014/0115/c1011-24121030.html http://opinion.huanqiu.com/opinion_world/2014-01/4750720.html

Briefings | | January 16, 2014 | US-China Relations

Xi Jinping: Anti-Corruption Remains Tough and Complicated

On January 14, 2014 at the third plenary session of the 18th Communist Party Central Commission for Discipline Inspection in Beijing, Xi Jinping acknowledged, “The breeding ground for corruption still exists and the anti-corruption situation remains tough and complicated.”

“All Party members must fully understand the nature of the long-term, complicated, and arduous anti-corruption fight. With the determination to cure a disease with powerful drugs and the courage to scrape the poison off the bone and cut off one’s own snake-bitten wrist to save one’s life, [we must] resolutely carry on the campaign until the end to build a fine Party culture, keep its organizations clean, and fight against corruption.”

“We will harshly disciple corrupt officials as we find them.”

Source: Xinhua, January 14, 2014

http://news.xinhuanet.com/politics/2014-01/14/c_118967450.htm

Briefings | | January 16, 2014 | Government/Politics

China’s Minister of Culture: Balance the Economic and Social Benefits of All Cultural Products

On January 10, 2014, the all-China Journalists’ Association held a “Press Salon” for diplomats and reporters. At the event, Cai Wu, China’s current Minister of Culture, explained the on-going reform of China’s cultural system. Cai explained that the government will no longer own and financially support China’s cultural institutions including organizations such as dance, music, art, drama, and movie companies. They will need to make their own living and make a profit. However, the Chinese government must still take tight control over what is necessary on the macro level [ideologically and politically]. Therefore, the Chinese government will help to establish non-profit cultural organizations and neutral bodies to balance the “economic benefits” and the “social benefits” of all cultural products.

Source：China Review News，January 10， 2014
http://hk.crntt.com/doc/1029/7/3/2/102973262.html?coluid=151&kindid=0&docid=102973262&mdate=0111002857

Briefings | | January 15, 2014 | Government/Politics

China Review News Agency: The End of the U.S. QE Measures Will Lead to Massive Capital Outflow

On January 6, 2014, China Review News published an article on China’s economy. According to the article, the slower growth of China’s economy in 2013 was the result of the government’s nationwide macro-control. While maintaining stable economic progress in 2014, the Chinese government will push forward economic reform. However, the approaching end of the U.S. quantitative easing (QE) measures will cause the withdrawal of hot money from China and even lead to a massive capital outflow. Therefore, China must get ready to deal with a shortage of money.

Source: China Review News, January 6, 2014
http://hk.crntt.com/doc/1029/6/2/6/102962683.html?coluid=53&kindid=0&docid=102962683&mdate=0106080210

Briefings | | January 15, 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.