Author: sangfundu

New China-Backed Asian Infrastructure Investment Bank

The new China-backed Asian Infrastructure Investment Bank has received support from 57 countries that have signed on as charter members. The Obama administration is worried about the new bank and concerned that it will compete with Western-led institutions like the World Bank. However, such large institutions like the World Bank and the International Monetary Fund do not seem worried.

World Bank President Jim Yong Kim told reporters that he welcomed the new bank. As he said,

“Our full expectation is that we’ll continue to work with them very closely and that there are many projects that I can foresee either cofinancing or working together on.”

Australia joins new China-Led Bank

Australia has agreed to join the new China-led infrastructure bank while it still has some concerns about the governance of the bank. As Prime Minister Tony Abbott and Australian Treasurer Joe Hockey said in a joint statement, “The government has discussed the AIIB extensively with China and other key partners inside and outside the region. Key matters to be resolved before Australia considers joining the AIIB include the Bank’s Board of Directors having authority over key investment decisions, and that no one country control the bank.”

China placed a deadline on countries for the end of March to become founding members of the bank. They have explained that the founder status would allow the country to have some say over setting rules for the bank. Australia actually came under pressure last year from Washington not to join the bank. Washington worried that, if not governed correctly, the bank could contribute to corruption.

However, as the deadline approaches, many US allies including those in Britain, Germany and South Korea have announced that they plan to join. Australia hasn’t said how much it plans to contribute to the bank, but it could be as much as $3 billion.

 

China Finance Online Co. Limited Makes Announcement

In a recent press release China Finance Online Co. Limited, a leading web-based financial services company that provides Chinese retail investors with access to securities, commodities and wealth management products, announced that Changjiang Securities Company Limited (“Changjiang Securities”) has now joined their company. As Mr Zhao, the Chairman and CEO of the company said,

“I am pleased to announce that Changjiang Securities has gone live on Securities Master more and more securities firms choose Investment Masters and Securities Master to provide advisory and trading services to their clients, which shows our accurate market positioning and technological advantages to lead the transition of Chinese online finance. China Finance Online will continue to be committed in building an ecosystem for our users to allocate assets and to invest easily across products and markets.”

Learn more with their press release.

Chinese Factories Show Surprising Slump in January

Those who are part of China’s factory sector could be a bit nervous at this point. The factory sector had an unexpected shrinking for the first time in almost 2.5 years in January. The Purchasing Managers’ Index (PMI) fell to 49.8 in January, according to the National Bureau of Statistics. This is a low last seen in September of 2012. Typically, Chinese factories have had a spike in business before China’s annual Spring Festival holiday which falls mid-February this year.

Read the full analysis here.

China Moving in on Hong Kong’s Monopoly

While China has lagged behind Hong Kong in salaries and hi tech opportunities, they are starting to catch up. On average, salaries on the mainland are 15-20% lower than those in Hong Kong in their financial industry according to Simon Lance. He is the regional director for recruitment agency Hays in China. The salary gap is narrowing and the higher cost of living in Hong Kong are both helping the mainland to look more attractive.

Internet finance is now begin regarded as the future industry leader by the well-educated in China.

Shanghai has been turning up the pressure, announcing its ambitions to become a global financial center by 2020. They are developing their trade-free zone as well.

Beijing is also reforming the interest-rate mechanism and introducing privately owned competitors. This should help to create more internet finance opportunties.

General Motors Sells More Cars in China Than in US

Interestingly, General Motors is selling more cars in China each month than it is in America, and it expects this trend to continue. As GM Executive Mary Barra told the firm at their annual shareholders meeting, “Our joint ventures in China are working to boost production capacity by 30 per cent to more than five million units annually by 2015.”

GM President Dan Ammann said, “Cadillac is already a very profitable business for us today and GM expects to see substantial growth for its luxury brand over the next few years, particularly in China where young consumers are open to new brands.”

China is the world’s largest car market and it accounts for approximately 25% of global luxury car sales. Cadillac plans to launch in China soon a new full-sized sedan and a small sports utility vehicle.

AS GM China president Matt Tsien said, “China has indeed has been a very rewarding market for GM. We’ve benefited from the tremendous growth. China has taken a very big role in GM and China’s voice is a very strong voice within GM.”

 

 

China Helping Ecuador To Succeed

Ecuador is expecting approximately $3.6 billion from different Chinese loans in the coming year that were signed by President Rafael Correa’s administration as far back as 2010. China has become the main lender to Ecuador since they defaulted on about $3.2 billion of global bonds since 2008.

To date, Chinese money has financed the construction of large projects including hydroelectric plants. They have also funded the construction of grain silos and irrigation systems.

Just last week, President Correa submitted to the National Assembly a budget plan of $35.3 billion for next year. According to some unofficial estimates, China has committed over $11 billion in financing to Ecuador since 2009.

 

China Finance Online Co. Limited Updates Mobile App

China Finance Online Co. Limited has just announced that they have updated their mobile application. It will now include the functionalities based on the Securities Master, the web-based securities trading platform the Company launched on August 18 of 2014.

As Zhiwei Zhao, Chairman and CEO of China Finance Online, said,

“We are happy to announce this key upgrade of our mobile financial application which will now incorporate our powerful trading platform, Securities Master. Built upon our philosophy of making investments easier, the latest version of our app will allow Android and iOS users to open new accounts, manage their portfolios, track the markets, and trade with ease, anytime, anyplace and on any device, which is available on the Company’s website and the App Store. The features and functions that are currently or soon will be available to investors include:

  • ‘Stock Watch-list’ which will provide investors with immersive real-time data and contextual third-party news on selected stocks by seamlessly synchronizing the information of the PC platform with that of the mobile application,
  • ‘Stock Rating’ which will provide research and guidance from our investment advisers, who will utilize our self-developed big data research and calculation methodology, and
  • ‘Stock Alert’ which will allow investors to set up push notifications for price triggers and trade notifications to receive timely and customizable alerts.”

Recent Signing Between China and India

Chinese President Xi Jinping arrived in India where they will be having investment deals and signing trade agreements.

IndiGo has recently signed a $2.6 billion deal with Industrial and Commercial Bank of China (ICBC) to finance over 30 new aircraft.

ICBC will be providing IndiGo with financing for the commercial planes. This will happen through either a sale or lease back system or through a commercial lending deal, as the statement that quoted IndioGo President Aditya Ghosh said.

 

Three Recent Stock Picks

Here are three recent stocks that have been featured  on Markets Emerging. Here is the overview:

1. Groupon Inc.: Jana Partners owns more than 7% of Groupon. As Co-Executive Editor Kara Swisher said,  “It’s an important space, obviously, because everything is going to the mobile device,” she said. “That’s where people are going to get their discounts and awareness of when sales are happening. But as a pioneer, Groupon is a really important company,” she added. “I don’t know what is going to happen to it at all, but it’s trying to establish itself as the player in this space and helping … small businesses get discounts, and it is a really competitive market.”

2. China Finance Online Co.: This is China’s first independent web-based securities trading platform called “Zhengquantong.” As Markets Emerging said, “Securities Master is the product of a new strategic partnership China Finance Online has entered into with the largest brokerage firm in China, CITIC Securities Co., Ltd., to seamlessly integrate China Finance Online’s state-of-the-art, web-based architecture with CITIC’s robust trading and settlement system.”

3. National Bank of Greece: They have extended gains as The Athens stock exchange general index moved up for a sixth consecutive day.