Chinese Economics Thread

[KYli]

PMI factory index for small and medium firms rebounds in May.

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[luminary]

Asia’s Super Rich Plan to

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, UBS Says​

• About 30% of Asia’s rich plan to invest more in Greater China
• Only 6% of Asia rich families are staying out of Greater China

"There’s no ignoring an $18 trillion economy that’s growing at 5% a year.” Tommy Leung, co-head of the global family office unit for Asia-Pacific at UBS, said.

More mainland Chinese are also setting up family offices in Hong Kong after the city

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tax exemptions, LH Koh, co-head of global family and institutional wealth for Asia-Pacific at UBS. He added that Hong Kong and Singapore have both been attracting families.

“They are complementary to each other. Hong Kong has the edge of serving Greater China clients given the proximity factor and the strong capital market,” said Koh. “Hong Kong and Singapore have long been the dual hubs for wealth management in Asia.”

Asia’s richest families also foresee higher allocations to fixed income and equities in developed markets, as global family offices seek to diversify in the face of geopolitical tensions, rising rates and flagging central bank liquidity.

Here are a few highlights from the report:

• Asia-Pacific family offices increased their allocation to equities to 37% in 2022, up from 33% in 2021
• In Asia-Pacific, hedge fund allocations have risen to 5% in 2022 from 3% in 2021
• 80% of Asia-Pacific family offices expect hedge funds to meet or exceed their performance targets in the next 12 months
• In Asia-Pacific, 41% are planning an increase in allocation to developed-market fixed-income over the next five years
• Geopolitics is the top concern for Asia-Pacific family offices
• Medical devices and healthtech is the investment theme that resonates most with Asia-Pacific family offices

 

[resistance]

India and asean have about 10 years to get industrialized, as automation will block them to do so.

 

[Michael90]

The real situation is very simple. Guizhou historically has been one of the poorest provinces in China. It is surrounding by mountain with no flatland. In an attempt to alleviate extreme poverty and develop, Guizhou in the last decade has been aggressively pursued many radical projects and developments.

Guizhou has been successfully in becoming a data center for many major IT companies and hydropower exports. Guizhou most important exports are white alcohol with tea, lighters and guitar round up the rest. Other than these, Guizhou also aggressively tried to develop tourism and infrastructure such as bridges, high speed railway, and highway. For the last decade or so, Guizhou has enjoyed a period of rapid economic growth.

However, in the process of rapid developments, Guizhou has become over reliance on land sales. Unlike Xinjiang and Tibet, the central government didn't pour in unlimited resources or willing to foot all the bills. Financial aids and poverty alleviation funding are generous but not unlimited. Therefore, Guizhou has accumulated too much debts in the process of pursuing rapid growth.

Such debts wouldn't be a problem if the economy didn't slow down more rapidly than expected during the pandemics. Consequently, Guizhou is in a very bad shape at the moment.

In addition, there are a lot of white elephant projects especially for the tourism industry. Guizhou has spent too much resources on many tourism projects that would never break even. Poverty alleviation projects also misused funding for areas that no prospect of attracting or retaining population. Of course, corruption play an important role of such white elephant and wasteful projects.

Guizhou's debt isn't a problem for the central government. The central government can easily fix the problem with more funding but it has moral hazard issue that the central government doesn't want to bailout Guizhou until Guizhou has tried and exhausted all channels and cut back all fats and endured some pain.

Is there not a state review body in China that overseas local government spendings on wasteful projects/corrupt officals using such projects to fill their pockets ? Especially when it involved large significant projects that can affect the state financial situation.

 

[KYli]

Is there not a state review body in China that overseas local government spendings on wasteful projects/corrupt officals using such projects to fill their pockets ? Especially when it involved large significant projects that can affect the state financial situation.

National Audit Office. For auditing any wasteful spending.

The national supervisory commission, the central commission for discipline inspection, and the anti graft agency of the Chinese communist party together investigate and prosecute bribery and corruption from local to central government.

The supreme people's procuratorate used to handle most investigation and prosecution a few years ago but such responsibility has transferred to the 3 agencies above.

 

[antiterror13]

Is there not a state review body in China that overseas local government spendings on wasteful projects/corrupt officals using such projects to fill their pockets ? Especially when it involved large significant projects that can affect the state financial situation.

I thought it is Ministry of Civil Affairs

 

[Biscuits]

China really should be doing everything to make HK the new global capital and depose New York and London

Maybe, but it is also a little bit too cockroach infested, a city on Hainan or Taiwan might be a better choice. Or a central city such as Chongqing.

 

[tphuang]

PMI factory index for small and medium firms rebounds in May.

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this is pretty important. Maybe the official PMI will swing up in June.

 

[mossen]

India and asean have about 10 years to get industrialized, as automation will block them to do so.

low-end mfg is still very labour-intensive (think textiles, simple smartphone assembly). I think the automation challenge is really at the higher-end, that's where China is moving right now.

 

[Michael90]

Who are the Biggest Uranium Miners in the World?​

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View attachment 113368
View attachment 113369

Rank	Company	2021 Uranium Production (tonnes)	Percent of Total
1	Kazatomprom	11,858	25%
2	Orano	4,541	9%
3	Uranium One	4,514	9%
4	Cameco	4,397	9%
5	CGN (China)	4,112	9%
6	Navoi Mining	3,500	7%
7	CNNC (China)	3,562	7%

The World’s Top 25 Websites in 2023​

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View attachment 113370

Most of the websites on this list are based in the U.S., but a few such as Baidu (China) and Yandex (Russia), also make the cut. Interestingly, the three adult websites on this list–XVideos, PornHub, and XNXX–are based outside the U.S.

Chinese Internet/tech companies are mostly China focused while US companies are mostly globally focused I think that explains why the US is so dominant in the Internet sector/industry. To be honest Google alone dwarfs all the other companies combined. Shows just how dominant the US is in this sector.