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China stocks hit seven week high

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The benchmark Shanghai Composite Index rose 17.12, or 0.75% to 2,299.99 at the close of Monday trading touching a seven week high in the process.

Various reasons were given for the rise including the nation’s economic planning agency said investment projects for airports and gas fields won’t need pre-approval any more.

As well, low market valuations and improving company profitability and capital inflows were also cited.

The day capped a fascinating string of rises for the China index.

Financial stocks led the market up. ICBC, the nation's largest lender, rose 1.2 percent to 4.21 yuan. Agricultural Bank of China gained 1.5 percent to 2.79 yuan. China Minsheng Banking Corp jumped 3.6 percent to 10.86 yuan.

The rise in the China market, if it continues augurs well for its trading partners including Australia.

Although property stocks appear mixed as fundamentals are strong but With the issue of potential restrictions on property, there may be headwinds for property counters.

China’s policy makers are trying to avoid property bubbles and make homes more affordable while bolstering an economy that lost steam in the first quarter.

Expanding a campaign against housing speculation could choke off real-estate development that is helping counter a slowdown in manufacturing investment and supporting demand for steel, cement and household goods.

 

*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China. * Reported by Proactive Investors 3 hours ago.

China, India agree on roadmap to balance trade ties: premier

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NEW DELHI (Reuters) - China and India have agreed on a roadmap to reach a "dynamic balance" in bilateral trade between the two nations, China's Premier Li Keqiang said on Monday, following Indian complaints about the size of the trade deficit with its neighbour. (Reporting by Rajesh Kumar Singh; Writing by Matthias Williams; Editing by Frank Jack Daniel) Reported by Firstpost 3 hours ago.

Is China's Housing Bubble About to Pop?

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Is China's Housing Bubble About to Pop? Watch Video


(Image source: CBS)



*BY JIM FLINK*



Is the bubble about to pop? The cost of housing in China has become the country’s number one economic headache. And for now, it appears the Chinese government has no concrete answers for how to fix the high-rising issue. How bad is it? Take a look.


*“This is what 2.27 million dollars buys you right now in Shanghai. Three bedrooms across 195 meters or a little over 2000 square feet  **... it has a great view of the financial district...” *(Via CNN)

 

For the better part of a decade, prices in so-called Tier One Chinese cities — Beijing, Shanghai, Guangzhou – have been exploding. Forbes notes:

 

*“Of the 70 major Chinese cities tracked by NBS, 67 saw home prices increase in April compared to March, with the highest growth rate at 2.1% … rising prices led the government to issue a guideline to tighten its grip on the real estate sector, raising taxes by as much as 20% for transactions.” *

 

And unlike in the U.S., China measures its GDP not by what is bought or consumed, but in what is built.* *That puts an ever-growing pressure on the state to continue building.

 

Even if the buildings go unused. Outside the Tier 1 cities, entire blocks of skyscrapers lie vacant. They’ve been dubbed China’s ghost cities — a phenomenon recently detailed by CBS’s 60 Minutes.

 

Year-over-year prices are up 6%, 8% and more. One Wall Street Journal analyst notes, when it comes to solutions, governmental policy talk has been cheap.

 

*“I think in both the case of Shanghai and Guangzhou, they said we will implement them but they didn’t put a time frame around when that would happen. My expectation, our view is that this is going to change very soon.”*

 

Some analysts liken the housing problem to that in Japan during the late 1980’s. They suggest China would do well to address the situation before the bubble does long-term or even permanent damage to the entire economy.

 

Business Insider suggests:* “A good start would be to introduce a property tax, imposed annually, that is based on the market value of a home. That would reduce speculation, discourage owners from holding empty flats and provide a fresh source of funding for cash-strapped local governments.” *

 

News.com.au reports, China is building an average* *of 12 to 24 new cities each year. Reported by Newsy 9 minutes ago.

Incredible Footage Of China Demolishing Miles Of Elevated Road In Just A Few Seconds

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China is about more than massive infrastructure build-outs.

Some things have to come down.

"This was the scene in Wuhan as three-and-a-half kilometers of elevated road came down," wrote Bloomberg about this incredible demolition footage.  "The viaduct was only built in 1997 as part of the main highway between Shanghai and Tibet.

Check out this video from Bloomberg.com:

*SEE ALSO: 29 Crazy Things That Only Happen In China >*

Please follow Clusterstock on Twitter and Facebook.

Join the conversation about this story »

 
 
 
  Reported by Business Insider 22 minutes ago.

Pak, China have all-weather strategic partnership: Chinese media

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Li Keqiang left India for Pakistan on Wednesday, the second stop of his first overseas trip as China's premier. Xinhua described the Islamabad-Beijing ties as an "all-weather strategic partnership". Reported by Firstpost 6 hours ago.

China's Premier Li offers to help end Pakistan's energy crisis

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May 22, 2013 3:51 PM

ISLAMABAD (REUTERS) - China and Pakistan should make cooperation on power generation a priority, Chinese Premier Li Keqiang said, as Islamabad seeks to end an energy crisis that triggers power cuts of up to 20 hours a day, bringing the economy to a near standstill.

 
 
 
  Reported by Straits Times 6 hours ago.

New spark in the South China Sea

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Sanctions Taiwan has imposed following the fatal shooting of a Taiwanese fisherman by the Philippine Coast Guard, including a hiring freeze on Filipino workers and banning tourism to the Philippines, are shows of sovereignty aimed at bolstering the administration's sagging approval ratings. Manila has no such problems, but economically and diplomatically it can't afford another front opening in the South China Sea. - Julius Cesar I Trajano (May 22, '13) Reported by Asia Times 6 hours ago.

SINOGRAPH : China nears point of no return with Kim

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China is losing patience with North Korean leader Kim Jong-eun, slowly but surely moving into the US orbit to deal with his threats and blackmail. As Beijing will sooner than later reach the point where it has little to lose from falling out with North Korea, Kim had better start contemplating his own mortality. - Francesco Sisci (May 22, '13) Reported by Asia Times 6 hours ago.

6 kids among 7 injured in south China knife attack

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BEIJING (AP) - Authorities in southern China say a mentally ill man stabbed six primary school students and an adult in the latest of several attacks on Chinese schoolchildren. A local government spokeswoman said Wednesday all seven were in stable condition and a suspect had been apprehended. Reported by MyNorthwest.com 6 hours ago.

China's Li offers to help end Pakistan's energy crisis

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ISLAMABAD (Reuters) - China and Pakistan should make cooperation on power generation a priority, Chinese Premier Li Keqiang said, as Islamabad seeks to end an energy crisis that triggers power cuts of up to 20 hours a day, bringing the economy to a near standstill. Reported by Reuters 5 hours ago.

Civil servants are least happy employees in China

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Government employees have lowest levels of job satisfaction, despite applications reaching record levels

Civil servants are the least happy employees in China, research has revealed.

A survey of over 9,000 respondents found that civil servants had the lowest level of job satisfaction of the 12 sector categories that were included.

According to a report on the All-China Women's Federation website, employees working in the private sector had the second lowest levels, whilst the happiest employees worked in foreign enterprises and joint ventures. The survey was commissioned by the Psychology Institution of the Chinese Academy of Sciences and hosted on recruitment website Zhaopin. Three quarters of those who took it were below the age of 30.

Li Xupei, deputy director of the Mental Health Promotion Centre at the Chinese Academy of Sciences, said some people entering the civil service believed their job would be "easy", but later found that they were "constantly working overtime" and that the work was unexpectedly challenging.

A 2012 survey of civil servants in China's central departments of state also found that 13.5% suffered from severe or extreme stress. Despite this, the number of people taking the recruitment exams for the Chinese civil service rose to a record 1.2m in November 2012.

According to China's Global Times, the Ministry of Human Resources and Social Security has begun a pilot project which offers new civil servants fixed-term employment contracts, ending the widely-held perception that a job in the civil service is a job for life. This may reduce demand for government positions in future.

Li said the survey also found that, despite low satisfaction levels, the "collective happiness" of civil servants was high due to the respect they receive from the public.

• Want your say? Email us at public.leaders@guardian.co.uk.

*To get our articles on policy and leadership direct to your inbox, sign up to the Guardian** Public Leaders Network** now. *

*Looking for your next role? See our **Guardian jobs site** for **senior executive jobs in government and politics**. *

• For the latest on public services leadership, follow us: @publicleaders Reported by guardian.co.uk 5 hours ago.

ASF Group forms strategic partnership with China Real Estate Association

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ASF Group (ASX: AFA) has entered into a strategic partnership agreement with *China Real Estate Association*, strengthening its goal of promoting investment and trade between Australia and China.

CREA is a peak association authorized by the Ministry of Construction of China based in Beijing.

Under the partnership, ASF will become the sole strategic partner of CREA in Australia and will assist the non-profit in arranging for Chinese entities to invest in Australian real estate developments.

In return, CREA will promote ASF’s projects on its website and in events organised or sponsored by CREA.

It will also arrange for potential investors to visit ASF and to explore the possibility of investing in its Australian projects.

“The company is very pleased to become the sole strategic partner of CREA in Australia and believes that the strategic partnership will enhance the position of the company in promoting investment and trade between Australia and China in particular in the property sector,” ASF chairman Min Yang said.
*
China Real Estate Association*

CREA is a China-wide non-profit professional organisation with 2,100 members that was established in Beijing in 1985 with authorisation by China’s Ministry of construction.

Members include businesses and institutions engaged in real estate development and operations, market transactions, brokerage, construction and property management; as well as local real estate associations and relevant individuals.

The association has a large network and significant influence in the Chinese real estate sector, submitting research reports and suggestions concerning real estate development, technical requirement policy, law and regulations to China’s Government.

*ASF Group*

ASF Group focuses on investments where there are synergies between Australia and China.

While this has primarily being in the resources sector, the company was in March shortlisted by the Queensland Government and Gold Coast City Council for the development of a new cruise ship terminal and casino at Broadwater on the Gold Coast of Queensland.

The world-class project could include a cruise ship terminal on State Government-owned land on The Spit or on Wave Break Island in the Broadwater, marina and super yacht facilities, retail entertainment, hospitality, community open space, recreation facilities and a mix of residential development.

ASF China Property Consortium, which includes China Communications Construction Company, Guangzhou Dredging co Ltd and China State Construction Engineering Corporation Limited (CSCEC), is one of four consortia that were shortlisted.

It is expected that a detailed proposal will be lodged by mid 2013. Reported by Proactive Investors 5 hours ago.

The 6th Western China International Sourcing Fair to Stage Twice and See Soaring Business

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CHENGDU, China, May 22, 2013 /PRNewswire/ -- As a main carrier for trade cooperation and one of the major events at the Western China International Fair (WCIF), the 6th Western China International Sourcing Fair (WCISF) will stage both in September at the China Food Expo (CFE) and in... Reported by PR Newswire 5 hours ago.

North Korea sends special envoy to patch up relations with China

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Choe Ryong-hae, a close aide to Kim Jong-un, arrives in Beijing as tensions with South Korea appear to ebb

North Korea's leader Kim Jong-un has dispatched a special envoy to China, its state media announced on Wednesday, as Pyongyang seeks to improve its strained relations with its main ally and lifeline.

Choe Ryong-hae, a senior Workers' party official and a vice-chairman of the top military body, arrived in Beijing with a political and military delegation. A close aide of the youthful leader, he is the first senior North Korean to visit China since last summer and the first special envoy since Kim took power in 2011.

China provides North Korea with the vast majority of its fuel and trade – reportedly accounting for almost nine-tenths of its imports and exports in 2011 – and its support has become even more important as Pyongyang's relations with Seoul have deteriorated.

But it has shown increasing signs of frustration with the regime over its weapons programmes and angry rhetoric.

"Since North Korea had the third nuclear test [in February], the relationship between China and North Korea has been pretty tense. To ease the relationship, the visit is very normal and necessary. It helps to stop the bilateral relationship deteriorating," said Cai Jian of Fudan University's Centre for Korean Studies.

"This visit shows China is also willing to improve the relationship with North Korea."

China's state news agency Xinhua said Choe, 63, met with Wang Jiarui, head of the international department of the Communist party. It gave no further details.

Analysts say Beijing rebuffed earlier proposals of high level exchanges because it wanted to demonstrate its displeasure and was not guaranteed a meeting with Kim if it sent an envoy to Pyongyang.

Major Chinese banks recently suspended financial dealings with the Foreign Trade Bank of North Korea – Pyongyang's main conduit for international transactions.

Kim Jong-un has not visited Beijing since he took power following his father's death in late 2011, though his uncle Jang Song-thaek visited in August last year. Chinese politburo member Li Jianguo went to Pyongyang with a letter from Xi Jinping, who had just become the Communist party leader, in November.

John Delury of Yonsei University suggested that Chinese leaders might also be looking ahead to South Korean president Park Geun-hye's visit next month.

"China wants to have good relations with both Koreas … They don't want to go too far with a great splashy meeting [with the South] while things are still off-kilter in the North Korean relationship. For its part, North Korea may want to recalibrate; they wanted a bit of distance from Beijing, but they don't want to push it too far," he said.

The North Korean news agency story on Choe's trip also revealed that General Kim Kyok-sik has become military chief again – a post he held before 2009 – replacing Hyon Yong-chul.

General Kim was recently replaced as defence minister – a lower ranking position – by Jang Jong-nam.

North Korea tested short range missiles over the weekend, but tensions have ebbed on the peninsula and there are signs of diplomatic engagement again.

Last week the Japanese prime minister sent a close aide to Pyongyang to hold talks over abducted Japanese citizens – a move greeted with dismay by South Korea, which described the trip as unhelpful.

On Tuesday, a Chinese fishing boat owner said his vessel had been released, two weeks after it was taken captive by gunmen in North Korean military uniforms. He said the captain was beaten and fuel stolen. Reported by guardian.co.uk 4 hours ago.

About China’s capacity to absorb more capital

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We’ve all heard, many times, the story that China’s capital stock is nowhere near that of more advanced economies, therefore it will inevitably increase. And we can count on continued efforts to build roads, buildings, airports, and other infrastructure — just look at how the less-developed eastern provinces have been pouring money into new projects, the argument has gone, more recently. Or went.

We really hope it’s not necessary, here, to go into the weaknesses of that argument. Here are a few places to start, but it’s partly a causal problem — does growth cause increased capital stock or vice versa? What kind of growth are we talking about, anyway?

Continue reading: About China’s capacity to absorb more capital Reported by FT.com 4 hours ago.

People and Funds Surge Out of China

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People and Funds Surge Out of China The number of Chinese purchasing property in Western countries and transferring their money out of China, both legally and illegally, has been significantly increasing since 2011.

The post People and Funds Surge Out of China appeared first on The Epoch Times. Reported by Epoch Times 4 hours ago.

North Korea's Kim Sends Envoy to China

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North Korean leader Kim Jong Un has sent a senior military official as a special envoy to China, at a time of strained relations between the two traditional allies. The official Korean Central News Agency said Choe Ryong Hae, the director of the General Political Bureau of the North Korean army, left Pyongyang for China Wednesday along with a government delegation. No details about the purpose of the trip were given. Chinese foreign ministry spokesperson Hong Lei said Beijing plans to discuss ... Reported by VOA News 3 hours ago.

China Armco Metals signed a long-term sales contract with a state-owned Chinese building material company

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SAN MATEO, Calif., May 22, 2013 /PRNewswire/ --China Armco Metals, Inc. (NYSE MKT: CNAM) ("China Armco" or the "Company"), a distributor of imported metalore and a metal recycler with a state-of-t... Reported by FinanzNachrichten.de 3 hours ago.

CHINA: Continental develops infotainment system for PSA in China

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Continental has developed a new Multimedia Radio Navigation (MRN) System for the PSA Peugeot Citroën Group in China. Reported by Just-Auto 2 hours ago.

NKorea Sends Special Envoy To China

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PYONGYANG, North Korea -- After months of ignoring China's warnings to give up its nuclear program, North Korean leader Kim Jong Un sent a high-level confidant to Beijing on Wednesday, in a possible effort to mend strained ties with its most important ally and the latest sign that Pyongyang may be giving diplomacy a chance.

The trip by Vice Marshal Choe Ryong Hae, a senior Workers' Party official and the military's top political officer, is taking place as tensions ease somewhat on the Korean Peninsula after near-daily vows from Pyongyang to attack Washington and Seoul in March and April.

The United States, Japan, South Korea, China and Russia have been busy discussing how best to engage with the North Koreans. Japan sent an envoy to North Korea last week to discuss decades-old abductions of its citizens, a move that has drawn concern among allies of Tokyo who want denuclearization to be the focus of talks.

Choe's visit is the first this year by a top North Korean official to China, which is under pressure from the U.S. and others to rein in its belligerent neighbor. It's also the first since a change of leadership in Beijing, whose new leaders have demonstrated a willingness to work with Washington to harry Pyongyang over its nuclear weapons programs even as stability in North Korea remains the Chinese government's priority.

North Korea also revealed Wednesday that a former defense minister, Kim Kyok Sik, was promoted to chief of the Korean People's Army in the latest in a series of high-level military reshuffles as Kim Jong Un elevates a new generation of military leaders.

Foreign analysts see Choe's trip as part fence-mending mission, part appeal for aid.

The last high-level North Korea-China meeting took place when Chinese Communist Party chief Xi Jinping sent a Politburo member to Pyongyang in November. Weeks later, North Korea launched a long-range rocket, followed by an underground nuclear test in February. That test, the country's third, drew tightened sanctions by the U.N. and United States.

Showing its displeasure with North Korea, China has tightened inspections on cross-border trade and its state banks have halted business with North Korea's Foreign Trade Bank – signs that Beijing is getting serious about enforcing sanctions.

"The North Korean side has been feeling China's pressure," said Ma Xiaojun, a North Korea watcher at the Central Party School, a think tank for the leadership in Beijing.

"Our policies and stance have tended to be tougher and more clearly express our unhappiness and displeasure," said Ma. He added, quoting President Xi, "causing trouble on China's doorstep is not right, and China will not tolerate it."

Choe's priority is to mend ties, Ma said. Immediately upon landing in Beijing, Choe went to see Wang Jiarui, head of the Chinese leadership's international affairs office and long the point man for China's dealings with Pyongyang.

China is impoverished North Korea's economic and diplomatic lifeline, providing nearly all of its fuel and most of its trade. China accounted for 89 percent of North Korea's exports and imports in 2011, according to the most recent figures available from Korea Trade-Investment Promotion Agency in Seoul, South Korea, which collects North Korean trade data.

China and North Korea are jointly developing two special economic zones: Rason on the Korean Peninsula's northeastern tip and Hwanggumphyong, an island in the Yalu River on North Korea's western border.

Chinese Foreign Ministry spokesman Hong Lei reiterated Wednesday that Beijing is committed to seeing North Korea denuclearize while maintaining regional stability – a catchphrase for continued Chinese support for Pyongyang.

Last week, a Japanese envoy traveled to Pyongyang for ongoing discussions about the decades-old abductions of its citizens by North Korea. After the envoy's return, Prime Minister Shinzo Abe said he would be open to holding a summit with Kim Jong Un if it would lead to a breakthrough. The issue is of great importance to Japanese, though when it returned five abduction victims in 2002, North Korea said there were no more living abductees.

Other countries are worried about focusing on Japanese abductions. Glyn Davies, the U.S. special representative for North Korea policy, warned North Korea might be trying to use talks with Japan to drive a wedge between the policies of Tokyo, Washington and Seoul.

During a summit with U.S. President Barack Obama this month, South Korean President Park Geun-hye laid out her policy of building trust with North Korea while remaining firm against provocations. Her office said she may travel to China next month.

China wants security assurances that North Korea will act with less belligerence and make efforts to ease tension, said Daniel Pinkston, an expert on North Korea with the International Crisis Group think tank who is based in Seoul, South Korea.

Because Choe has high-level military and ruling party positions, he can cover a variety of topics and likely will discuss security, normalization of economic ties and possible requests for aid when he meets with Chinese officials, Pinkston said.

Choe is a longtime Kim family friend who often is pictured standing next to the leader, along with Jang Song Thaek, Kim Jong Un's uncle. Jang, a top official now in charge of overseeing the push to expand North Korea's sports industry, visited China in August last year but was not in Wednesday's delegation.

Choe may also try to explain North Korea's recent military moves, including short-range projectile launches off the east coast, said Lee Ji-sue, a North Korea specialist and professor at Myongji University in Seoul.

He may also be paving the way for a visit by Kim Jong Un, who has not been to Beijing since taking power following the December 2011 death of his father, Kim Jong Il. The elder Kim visited China in August 2011.

Meanwhile, among the North Korean officials who went to the tarmac Wednesday to see Choe off was Gen. Kim Kyok Sik, North Korea's newly named chief of the armed forces.

Kim is believed to be commander of the North Korean battalions Seoul accuses of orchestrating two attacks in 2010 that killed 50 South Koreans.

Kim Kyok Sik had served as defense minister until being replaced recently by a little-known general, Jang Jong Nam, in one of several military reshuffles that have taken place since Kim Jong Un took power.

Kim's appointment to head troops suggests North Korea will maintain its hard line toward South Korea, said Han Yong-sup, a professor at Korea National Defense University in Seoul.

___

Associated Press writers Kim Kwang Hyon in Pyongyang; Sam Kim, Youkyung Lee and Hyung-jin Kim in Seoul, South Korea, Charles Hutzler in Beijing and Eric Talmadge in Tokyo contributed to this report. Reported by Huffington Post 2 hours ago.
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