Thursday, 2 January 2014

China e-commerce going mobile

Another new trend of 2013 is e-commerce going mobile. Mobile phones are the most used way for Chinese internet users to get online.
Alibaba’s e-commerce sales are now more than the sum of eBay and Amazon sales.
In China, Alibaba is responsible for about 80% of all online commercial transactions, and its revenue takes up as much as 2 percent of China’s GDP. But for its founder Jack Ma, thats just the beginning.
He believes that China’s online sales will surpass traditional retail by 2020.
"I believe next year or the year after, most retail developers will not invest heavily in commercial real estate anymore, and that will bring down housing prices nearby. I hope it will also bring down retail prices as well. I think its not difficult to reach 100 billion yuan sales for double 11 in a few years but that’s not our goal here." Jack Ma, Founder of Alibaba said.
The most significant development is that a quarter of Alibaba’s online sales were made using mobile devices. A strong indication that e-commerce in China is rapidly transitioning towards mobile in 2014.
"While mobile-commerce in China was almost non-existent just two years ago, shopping through mobile devices such as smartphones and tablets has quickly gained acceptance among Chinese digital consumers. The spread of mobile-commerce will make it the purchasing channel of choice going forward." David Wei, Former CEO of Alibaba said.

Skype says user information safe in Syrian Electronic Army hack

A day after the Syrian Electronic Army said it had hacked into Skype's social media accounts, the Internet calling service acknowledged on Thursday it had been hit with a "cyber attack" but said no user information was compromised.

A Tweet posted on Skype's official Twitter feed on Wednesday read: "Don't use Microsoft emails (hotmail, outlook), They are monitoring your accounts and selling the data to the governments. More details soon. #SEA"
Similar messages were posted on Skype's official Facebook pages and on a blog on its website before being taken down later in the afternoon. Skype is owned by Microsoft Corp.
The Syrian Electronic Army, an amorphous hacking collective that supports Syrian President Bashar al-Assad, later claimed the attack.
Source:   Reuters

Heavy snow, dangerous cold snarl travel in northeastern U.S.

The governors of New York and New Jersey declared a state of emergency and urged residents to stay indoors as a major storm hit the northeastern United States on Thursday, bringing heavy snow and delaying or canceling thousands of flights.

The first major winter storm of 2014 brought dangerously low temperatures and strong winds from the lower Mississippi Valley to the Atlantic coast, with parts of New England including Boston bracing for as much as 14 inches of snow by Friday morning.
"As this winter storm unfolds, bringing heavy snow and high winds to many parts of the state, I strongly urge all New Yorkers to exercise caution, avoid travel and stay indoors," New York Governor Andrew Cuomo said.
Amid flight cancellations that hit just as many travelers were returning from holiday breaks, officials at Boston's Logan International Airport warned that takeoffs would likely end at about 8:30 p.m. (0130 GMT) and officials at New York area airports set up cots for potential stranded travelers.
The snowfall was expected to intensify after sunset, with the heaviest accumulation coming overnight. Some cities along the storm's southern edge expect only minimal snowfall.
Cuomo and New Jersey Governor Chris Christie both ordered state offices closed on Friday for non-essential employees, saying they expected the worst to hit between late Thursday and early Friday morning.
Source: Reuters

Scientists, tourists rescued from Antarctic ship begin long journey home

An Australian icebreaker with 52 passengers rescued from a Russian ship trapped in Antarctic ice since Christmas Eve began the long journey home on Friday.

"The passengers seem very glad to now be with us and they are settling in to their new accommodation," Jason Mundy, Australian Antarctic Division Acting Director who is on board the ice breaker Aurora Australis, said on Friday morning.
A helicopter from the Chinese icebreaker Snow Dragon ferried the 52 scientists and tourists in small groups from the ice-bound Akademik Shokalskiy and transferred them to the Antarctic supply ship Aurora Australis late on Thursday.
The Aurora Australis is now sailing towards open water and will then head towards an Antarctic base to complete a resupply before returning to Australia.
Passengers, mostly Australians and New Zealanders, will probably arrive in Australia's southern island state of Tasmania around mid-January. The Russian crew on the Akademik Shokalskiy will stay onboard until the ice breaks up and frees the ship.
The rescue, repeatedly delayed due to weather and ice conditions, kicked off late on Thursday afternoon and took around five hours to complete.
Source:  Reuters

China military to launch "joint command" to reorganise forces - report

The Chinese military will establish a joint operational command over its military forces to improve coordination between different parts of the country's increasingly sophisticated military system, the official China Daily reported on Friday citing the Ministry of Defence.
China has been moving rapidly to upgrade its military hardware, but military analysts say operational integration of complex and disparate systems across a regionalised command structure is a major challenge for Beijing.

In the past, regional level military commanders have enjoyed major latitude over their forces and branches of the military have remained highly independent of each other, making it difficult to exercise the centralised control necessary to use new weapons systems effectively in concert.
The report quoted comments made to China Daily by the Ministry of National Defence saying that China will implement a joint command system "in due course" and that it has already launched pilot programmes to that effect.
China currently has seven military regions traditionally focused around ground-based army units, but China's changing security interests, over claims to potentially energy rich submarine reserves in the South China Sea, has highlighted its need to focus more on air and naval forces.
China and Japan are engaged in an intensifying standoff over a set of uninhabited disputed islands, and the Japanese government appears to be ready to ramp up military spending and adjust its nominally pacifist stance to a more confrontational one as the two militaries circle each other.

Snapchat says millions of user accounts compromised

 Snapchat, the red-hot private messaging service, said on Thursday that it knew for months about a security loophole that allowed hackers this week to harvest millions of phone numbers and announced changes to its systems.

An anonymous group called Snapchat DB posted the usernames and phone numbers of 4.6 million Snapchat users on New Year's Eve, days after the startup - headed by 23-year old founder Evan Spiegel - brushed off warnings that its app still contained security loopholes.
The hacker group, which claimed to be based in the United States and Europe, made the entire database available for download but redacted the last two digits of every phone number. Snapchat DB said it was working to raise awareness about Snapchat's security holes, not out of malicious intent.
In its first public statement since the leak, Snapchat said in a blog post on Thursday that no "snaps" - the contents of messages - were compromised or accessed as part of the hack.
Snapchat was first alerted to the vulnerability in August by a security group called Gibson Security. Snapchat said it made changes to its system to address the weaknesses, but the company also published a blog post downplaying the threat as "theoretical" on December 27.
Snapchat DB carried out the hack and disclosed the phone numbers just four days later.
The hack was a rare black eye for a high-flying appmaker started by Stanford University undergraduates in 2011. Snapchat has soared in popularity over the past year because it allows its users - mostly teens - to send private pictures and messages that self-destruct after 10 seconds at most.
Calling the hackers' disclosure an "abuse" of its system, Snapchat said Thursday that it was first told by security experts in August that its "Find Friends" feature may contain a weakness.
The company did not apologize for the leaks but said it would carry out some changes to prevent further unwanted disclosures.
"We will be releasing an updated version of the Snapchat application that will allow Snapchatters to opt out of appearing in Find Friends after they have verified their phone number," the company wrote. "We're also improving rate limiting and other restrictions to address future attempts to abuse our service."
Source: Reuters

Asia shares roiled by risk aversion; gold gains

Asian share markets were under water on Friday after a sudden reversal in some very popular, and thus crowded, trades sparked a bout of global risk aversion.

The net result was a pullback in the euro, sterling, and stocks and a bounce for the yen, gold and bonds. Oil prices had also taken a spill, though for purely idiosyncratic reasons.
MSCI's broadest index of Asia-Pacific shares outside Japan shed a sharp 1.3 percent, with markets from Shanghai to Sydney all in the red.
The various moves seemed divorced from the news flow, which was mostly upbeat with global manufacturing ending 2013 on a strong note as the United States, Japan and Germany all saw demand pick up.
The fly in the ointment was China where a measure of activity in the services sector eased back in December, just as one for manufacturing had on Thursday.
The next hurdle later Friday will be a spate of speeches from top Federal Reserve policy makers, including outgoing Chairman Ben Bernanke. Any comments on the outlook for tapering could affect market sentiment.
Anxious eyes were fixed on Thailand after the stock market sank over 5 percent on Thursday amid deepening political uncertainty. The Thai currency also took a bath, hitting its lowest since early 2010 at 33.03 per dollar.
Shares in South Korea lost another 1.2 percent, though there the problem was one of a strong won and a weak yen undermining the competitiveness of the country's huge export companies.
Samsung Electronics Co Ltd was down over 1 percent, on top of a 5 percent decline on Thursday, and at its lowest since August.
The country's Finance Minister, Hyun Oh-seok, reiterated that they were closely watching the won and the ongoing depreciation of the yen, but went no further than that.
In currencies, the euro took a spill as speculators booked profits on long positions after a strong 2013. The single currency was stuck at $1.3657 after shedding a full cent overnight.
The same forces gripped sterling, another strong performer in recent months. The pound peeled away to $1.6441 from a 28-month peak of $1.6605.
That in turn lifted the U.S. dollar index, a gauge of the greenback's value against six major currencies, by the most in five months. On Friday, the index was at 80.595 compared to a trough of 80.083 the day before.
Going the other way, the yen enjoyed a short-covering bounce. Borrowing in yen to buy higher yielding assets has been a vastly popular trade, leaving the market vulnerable to sudden, if usually brief, reversals.
Source: Reuters

FireEye buys cyber forensics firm Mandiant for about $1 billion

Cybersecurity company FireEye Inc has acquired Mandiant Corp, the computer forensics specialist best known for unveiling a secretive Chinese military unit believed to be behind a series of hacking attacks on U.S. companies.

FirEye shares jumped more than 20 percent after Thursday's announcement of the $1.05 billion cash-and-stock deal, which FireEye said closed on Monday. It unites two companies with relatively new technologies for thwarting cyber attacks, and brings together two of the most-respected executives in the security industry: FireEye CEO Dave DeWalt and Mandiant founder Kevin Mandia.
While sales of older anti-virus products have been on the decline, security experts expect strong growth in both FireEye's cloud-based systems for detecting malicious software and Mandiant's software that analyzes cyber attacks.
About a year ago the two companies entered into a technology development agreement that made it easier to deploy their products together. With the merger, FireEye will gain Mandiant's team of forensics investigators.
"They have these very strong Navy 'cyber' Seals who respond to breaches and are very good at what they do," DeWalt said about Mandiant. He had previously served as chairman of Mandiant's board.
"My aim is to create the strongest security company in the world," DeWalt said in an interview.
FireEye, which has yet to post a profit, said the acquisition will be immediately accretive to earnings and expects the combined company's revenue to grow about 50 percent this year. In comparison, Symantec Corp, the biggest maker of anti-virus software, has said it expects fiscal 2014 revenue to drop 3 percent to 4 percent.
Source:Reuters

China slams US for sending Chinese terrorists to Slovakia

A Chinese Foreign Ministry spokesman on Thursday criticized the United States for sending three Chinese terrorists from the Guantanamo Bay detention camp to Slovakia.
The three detainees are members of the East Turkestan Islamic Movement (ETIM), which is listed as a terrorist group and sanctioned by the United Nations, spokesman Qin Gang said at a routine press briefing.
The terrorists posed a threat to the security of China and the recipient country, Qin said, calling on the relevant country not to give terrorists habitat but to hand them over to China.
Qin urged the U.S.to abandon double standards and avoid sending the wrong signal to violent terrorist forces in response to U.S. State Department Deputy Spokeswoman Marie Harf's call for China to maintain restraint following the latest violence in Xinjiang.
Nine terrorists attacked a police station wielding knives on early Monday morning in Shache County of Kashgar. Xinjiang police shot dead eight terrorists and captured another.
It was a terrorist attack, with solid evidence, Qin said. He added that terrorism is against humanity and society and that the international community has a common understanding on combating terrorism and opposes countries to hold double standards on the issue.
"The U.S. State Department comments ignore the facts, sound feeble and can't be justified. People of the U.S. are also victims of terrorism. Do not do to others what you don't want done to yourself," Qin said.
"If such incidents happened in the U.S., and other countries made similar comments, how will the U.S. people feel about them?" Qin asked.
Source: CCTV

Eurozone’s structural reform in the post-crisis era

It’s been five years since the global financial crisis ravaged markets around the world, and four years since the unfolding of the European debt crisis.
The euro currency was launched on January 1st, 1999, so its 15th anniversary is just around the corner. But is it a reason to celebrate? As the world’s biggest economic bloc, the Eurozone finally walked out of a six quarter recession in 2013. But experts caution it is still too early to be overly optimistic.
The eurozone is now in a better shape than at the height of the debt crisis. On Dec. 15th, Ireland announced it has exited the bailout, making it the first eurozone country to withdraw from the EU rescue. For two other troubled bailout countries, Portugal and Spain, they have secured positive GDP growth in the third quarter of 2013.
Structural reform to address the social problems across the eurozone is high on the agenda for the new year, especially fighting stubbornly high unemployment rates of a near-record high of 12.1% in Oct. 2013.
Experts say there are still chilly headwinds facing the eurozone countries, in particular the Eurozone’s political and economic integration.
One key challenge is the establishment of the European banking union. Finance ministers of eurozone countries have been struggling to reach a consensus for over a year and a half, divided by political fractions and opposition from Germany. On Dec.19th, the ministers have finally reached a deal on a single resolution system. However, experts say it will still take time for the eurozone to seal the final banking union plan.
Source: CCTV

China: Slight increase in farmland, limited influence on policy.

The amount of farmland has increased slightly to around 135 million hectares from the last survey in 1996. But per capita farmland size is falling -- what does it mean for future government policies to ensure food security? Our reporter Yin Yue took a very expensive cab ride to outer Beijing to get the take from farmers and analysts.
If you’ve been growing strawberries for more than 20 years, like Mr. Liu Chengliang, like him, you’ve probably started your own farm like his, which lies in the outskirts of Beijing.
Liu’s 21 greenhouses take up 6 hectares of land. but not every farmer has this luxury...New data from China’s land and natural resources shows China’s agricultural acreage now takes up about 14% of the country’s territory, rose 0.5% from the previous survey...and this is not that significant.
However the rise in agricultural acreage has failed to raise experts’ optimism for Chinese agriculture...
In terms of policy, land transfer is now a key issue. Large agricultural companies that can produce crops more efficiently can now take up land from farmers like Liu Chengliang, who himself took it over from the county government.
Source: CCTV

2013: The year in science

A topic closely related to 3D printing of people parts is enabling a flexible source of the cells and tissues needed for such procedures. 2013 was a year of great progress in this area, with developments ranging from creation of mini-brains to a potential cure for baldness.
Here’s a short list of various types of cells, tissues, and organs researchers have succeeded in growing in 2013:
The real question remaining after this year: Is there any type of cell or tissue we can’t figure out how to produce? We suspect that until medicine is able to substantially duplicate the contents of a brain, or some smoothly operating cerebral rejuvenation treatment comes along, 120 years will continue to be roughly the maximum human lifespan. However, we can still have hair at age 120! Many of these new methods are awaiting FDA approval for human testing, so in the short term you might still want to go ahead and get yourself a good toupée!

Source: Gizmag

Yahoo Ends 2013 With No Apps In Apple’s Top 100

Yahoo put a lot of effort and investment toward presenting a new Yahoo to the world in 2013, with much of it hinged on improving its mobile business. There have been significant updates to old apps; over a dozen mobile-related acquisitions (out of a total of 28) to pick up talent, technology and products; and tests for what Yahoo should focus on next.
But even as it has managed to grow itsmobile audience  this year, Yahoo is exiting 2013 on something of a low note: not one of its apps is in the top 100 iTunes App store.
As a point of comparison, consider how others are faring in Apple’s top 100: Google has five apps (Google Search, Google Maps, Gmail, YouTube and Chrome). Facebook has three (Facebook, Facebook Messenger, Instagram). Twitter has two (Twitter and Vine). And a number of companies like Microsoft (Skype), Netflix, Amazon, eBay, Pinterest, Snapchat, Uber — “even fucking Groupon,” as one observer noted to us — have one apiece.
(Tumblr, acquired by Yahoo for $1.1 billion and with its own recent update, also failed to make the cut. According to Appanie, it’s currently at No. 110.)
Comscore, according to its October 2013 figures, notes that Yahoo is the third most-popular property behind Google and Facebook on smartphones, with a reach of nearly 78 percent, some 11 percentage points behind number-one Google. Yahoo has managed to hold on to that No. 3 spot for a while now, although its reach has declined compared to the previous few months (egSeptember: 82.2 percent reach; August: 83.2 percent).
Although Yahoo has long been making efforts to streamline its presence on mobile, Yahoo currently has 15 apps in the U.S. App Store (16 if you count Tumblr).
Instead, the analyst firm’s most recent figures note that Yahoo Stocks (a widget perhaps, since there is no standalone app by that name, unless comScore means Yahoo Finance), and Yahoo’s Weather Widget (not app) are the company’s most popular smartphone apps at the moment, respectively ranking 9th and 11th, with reaches of 29.9 percent and 23.6 percent. They are separated by Instagram, which has a reach of 25.5 percent.
This should serve as a reminder that installed usage may not always correlate to downloads. But it also muddles something worth remembering: by virtue of real estate and time spent on  property, monetizing something like Snapchat or Instagram is likely to be a whole lot bigger of an opportunity than monetizing a weather widget.
In November 2013, Yahoo’s CEO Marissa Mayer said the company had 400millionmonthlyactiveusersonmobile , compared to the 390 million  the company noted a month before, and the 350 million  Mayer noted during the TC Disrupt conference in September. This points to an audience that continues to increase, if slowly.
Can Yahoo sustain that growth with its current mobile portfolio, and is it enough to translate to wider financial success for the company? Mayer has said in the past that getting to where Yahoo would like to be could take another three to four years.
The issue, therefore, is whether its lack of blockbuster popularity so far is simply a premature red herring, or a sign of more lacklustre things to come.

Source: Techcrunch

Oil futures fell 3% on NY Mercantile Exchange

Oil futures slumped on Thursday, the first trading day of the new year, with gains in the U.S. dollar and increased production in Libya helping to push down prices 3%.
February crude oil  fell $2.98, or 3%, to settle at $95.44 a barrel on the New York Mercantile Exchange. That was the steepest one-day drop since Nov. 6, 2012.
Darin Newsom, senior analyst at DTN, attributed the slide to the dollar looking “pretty stout.”
“It’s putting a little bit of pressure on commodities in general,” he told MarketWatch. A stronger dollar tends to weigh on dollar-denominated commodity prices.
On a longer-term basis, there is general bearishness around oil as supplies remain plentiful and demand hasn’t returned to pre-financial crisis levels, Newsom said.
Other analysts tied Thursday’s slide to greater output by Libya, along with softer Chinese manufacturing data  and light, holiday-week trading volumes. Fawad Razaqzada, technical analyst at Forex.com, said in a note that crude was hit by “a triple whammy of slowing manufacturing expansion in China, news of an imminent increase in Libyan oil production and light trading volumes.”
Traders also mulled Thursday’s U.S. economic data for hints on the outlook for energy demand, as well as looked ahead to a supply report expected Friday.
Weekly jobless claims fell  to their lowest level in four weeks, while the closely followedISM indexshowed U.S. manufacturing companies expanded.  at a slightly slower, but still-healthy pace in December compared with a month earlier.
Source: Marketwatch

Bullion banks forcing hedging to replenish their gold stocks?

Hedging has come soaring back into the headlines in recent weeks as a result of a number of fairly high profile comments. And, while the global gold hedge book is still massively lower than where it once was, in recent months there has been a growing trend among lenders to ensure that part of the gold output is hedged forward as a prerequisite for raising new finance. 
Before the seemingly ever rising gold price of the first decade of the 21st Century put hedging out of favour, and the big miners scrambled to dehedge, this was, in fact, pretty normal practice.  Gold mining was looked upon as a particularly risky business after the big collapse down from $800 in 1980 to under $300 over the subsequent 20 years and the banks were thus keen to protect their investment which they could do by an insistence on hedging output at a specific price as an income guarantee.  But now, some are suggesting there is a hidden agenda behind a new insistence on hedging by the bullion banks. 
It certainly won’t have gone without notice that gold bullion is flowing out of U.S. and European vaults to the east – and to China in particular.  Indeed, despite the massive gold liquidations out of the big ETFs – GLD in particular – and more, available metal in COMEX warehouses is at a very low level as most of it is  being swallowed up by Eastern, Middle Eastern and FSU demand. Add into this the certainty that many central banks have been leasing out much of their gold, which has then been sold on by the bullion banks, and there is a huge supply squeeze developing for physical gold in the West. 
The bullion banks will supposedly have to return the gold they have leased, but are unable to do so because the available bullion supplies are just not there and that which comes on the market is being snapped up by the East.  Indeed this desperation to get their hands on physical metal without bankrupting themselves may be at least a partial reason for the gold price being driven downwards with the kind of strange market activity we have seen in the recent past.  Their inability to return leased gold to the central banks is also the most likely reason why Germany is finding it so difficult to repatriate its gold stored in U.S. and U.K. central bank gold vaults.
Thus, the reports suggest, the bullion banks are now exerting pressure on the basic gold suppliers - the miners - to supply gold directly to them  (through hedging) to try and help replenish their holdings so as to be able to return the gold they have leased.  The suggestion is that should a gold miner require say $300 million in finance to build a new mine, or expand an existing one, it is going to be required to hedge a significant portion of its production in order to get the financing.  But the miners are resisting this – at a gold price of around $1200, most would be mining gold at a loss.  The miners’ main hope is for an increase in the gold price in the future as new operations and expansions come on stream, but if they hedge their output forward at $1200 they would be doing so at, or near,  a lossmaking level – not an attractive proposition, and one which could land them in serious financial difficulties should the gold price take off again and, as we have seen in recent years, costs escalate accordingly.
But there is another side to the new mined gold supply situation that could be even more worrying for the bullion banks in terms of reducing new mined gold supply availability in the West.  We hear that gold miners are being approached to sell their output direct to Chinese refiners at a premium – surely an attractive proposition for a struggling gold miner.  The idea of selling output direct to the Chinese is not new.  Coeur’s Kensington gold mine in Alaska currently sells around half of its output of gold concentrates directly to China National Gold Group Corp. under a deal set up about four years ago.  However the recent reported moves by the Chinese to secure gold output from the mines directly would almost certainly be welcomed by today’s struggling gold producers, and would probably offer far better potential returns should the gold price recover than bullion bank imposed hedging.
It does look as if we may be heading for something of a serious squeeze on supplies of gold bullion in the West if the massive Chinese, and other Eastern demand continues at anything near current levels.  A report highlighted yesterday notes that China’s current President, Xi Jinping, has stated that the Chinese dream is the pursuit of gold with the aspiration to seek ‘peaceful development in the world’.  This appears to suggest a desire by the Chinese to work towards some kind of new currency standard within which gold plays a major role and is perhaps behind the huge accumulation of physical gold by the Chinese who see it as key to the future of the global economy and the country’s place in driving it forwards.
Source: MineWeb

Shanghai metro: 52km in under two minutes

Smart and modern, trains on Shanghai's new metro line 16 reach up to 120km/h (75 mph).
The line is opening this week, and along with a partial stretch of line 12, it makes the city's metro system the first in the world to cover a total length of more than 500 km (310 miles).
The network now extends far into the suburbs despite the first bit of track having been laid little more than 20 years ago.
But with dozens of other Chinese cities now expanding or building their own metro systems some observers have raised doubts about the cost of it all.
If nothing else, it is a sign that there is little let-up in big government spending despite all the talk of the need to rebalance China's economy.
The debate will rumble on. But for now, BBC News saves you the 8 RMB fare it costs to travel the 52km (32.5 miles) from one end to the other on line 16.
Hop on board the newest part of the world's biggest subway system.
Source: BBC

Chungking Mansions: Inside Hong Kong's favourite 'ghetto'

From the outside, Chungking Mansions looks like a single, imposing concrete block - 15 identical residential floors on top of a neon-lit, two-storey mall.
Past the front, it is like a maze - there are in fact five separate blocks, 10 lifts and multiple old, twisting stairwells filled with swathes of electrical cable, crumbling concrete and graffiti in multiple languages.
The complex began life as an upmarket residential estate in the 1960s, but has since become a hub for traders from developing countries, backpackers and asylum seekers in Hong Kong.
More than 10,000 people are estimated to enter or exit the building every day, and African and South Asian faces often outnumber Chinese faces - something remarkable in a city where 94% of residents are ethnic Chinese.
The building complex has a somewhat notorious reputation among locals and, until recently, many in Hong Kong were wary of stepping inside.
However, the building has a buzz that most Hong Kong Chinese would also recognise - nearly everyone is there to make money.
'Low-end globalisation'
Entering the building, touts try to lure the visitor to their restaurant, or offer a hotel room.

Chungking Mansions exteriorChungking Mansions consists of 5 17-storey buildings
Across the first and second floors are shops selling clothes, computers and boxes of cheap electronics such as mobile phones. As well as selling to the public, the stalls cater to wholesalers who ship goods to Africa and South Asia.
Gordon Mathews, an anthropology professor at the Chinese University of Hong Kong who spent four years researching and staying in Chungking Mansions, describes the complex as "a world hub of low-end globalisation".
Traders from developing countries come to Chungking Mansions to buy goods in demand back home, he says, "carrying their goods in their own luggage, or renting a container or part of a container, and shipping the goods pretty much on their own".
The deals are done "on the basis of trust, and often under the radar of the law," he says.
Many traders try to avoid import taxes by carrying their merchandise themselves or bribing customs officials, while many of the employees in the shops are working illegally.
Prof Mathews estimates that in 2008, about 20% of mobile phones in use in sub-Saharan Africa had been sold in Chungking Mansions, although that number has since decreased.
Many of the phones sold today are 14-day phones: phones which were returned by European customers within 14 days of purchase, which retailers buy at a discount and sell on.
Directly above the phone shops, a very different kind of business is thriving.
The 15 storeys above the mall are packed with guest houses converted from the building's original residential apartments.
Numbers of visitors have soared in recent years, as relaxed border controls have led to an influx of tourists from mainland China.
Lam Wai-lung owns the Dragon Inn, one of the larger guest houses.
The smallest room has barely any space apart from the bed and costs HK$180 ($23; £15) a night, while the largest - the deluxe honeymoon suite - costs $700 ($90; £60) a night during peak season.
"A few years ago, 70% of my clients were from Japan," she said. "Now, around 70% of the customers are from mainland China, as they have become wealthy."
But China's opening up has also presented threats to businesses in the complex, as some mobile phone buyers now head to Guangzhou instead of Hong Kong, traders say.
Eddie Wong, a wholesale phone dealer from Hong Kong, said competition from China was fierce.
"Business isn't as busy as before. China has opened its markets and traders can apply for visas [to mainland China] very easily. Meanwhile, the Hong Kong government has tightened visa requirements for African customers, so most of them go to China now."
"Also, they can buy phones more cheaply in China."
Many traders were reluctant to be interviewed. Some were asylum seekers and illegal workers who could not risk being identified - while others were simply busy making money.
With its five separate blocks, winding staircases and constant flow of people, Chungking Mansions may seem like a good place for those who want to disappear off the radar.
But in fact, comprehensive CCTV coverage makes it nearly impossible to enter or exit the estate undetected. When I approached the management office for an interview, they said their security staff had noticed me hours ago, after my loitering drew their attention.
The first CCTV cameras were installed around 10 years ago in a bid to improve safety, security manager Matthew Tsoi said.
There are around 330 CCTV cameras now, covering around 70% of the building's public spaces.
The management office takes obvious pride in its CCTV system, and the role it has played in improving security.
Crimes still take place - the reported rape of a mainland tourist in June sparked headlines. But an arrest was made hours after the crime was reported to police, as officers used CCTV footage and door-to-door searches to apprehend the suspect.
"Most buildings in Hong Kong are quite homogenous, with mostly Cantonese people, so there aren't as many different cultural activities or living habits that need to be accommodated," he said.
Despite this, the different ethnic groups in Chungking Mansions appear to get on relatively well. "The world seems to become smaller in Chungking Mansions," dealer Eddie Wong said.
"Even though there are so many people from different races and religions, they all know what they're doing in Hong Kong... most have come here to make money. So that's why they will not have major conflicts - even Pakistanis and Indians are friends here."
"Chungking Mansions is seen as proof of Hong Kong's international nature. It's one reason why the place has become quite popular with locals."Hong Kongers want to see Hong Kong not as Chinese, but as increasingly international.
Source: BBC

Xi: China to promote cultural soft power

 President Xi Jinping has vowed to promote China's cultural soft power by disseminating modern Chinese values and showing the charm of Chinese culture to the world.
Efforts are needed to build China's national image, Xi said when delivering a speech at a group study session of members of the Political Bureau of the Communist Party of China Central Committee on Monday.
China should be portrayed as a civilized country featuring rich history, ethnic unity and cultural diversity, and as an oriental power with good government, developed economy, cultural prosperity, national unity and beautiful mountains and rivers, Xi said.
China should also be marked as a responsible country that advocates peaceful and common development, safeguards international justice, and makes contributions to humanity, and as a socialist country which is open, amicable, promising and vibrant.
At the session, Xi called for efforts to promote advanced socialist culture, deepen reform in the cultural system, and enhance people's cultural creativity, moves that he believed will raise China's overall cultural strength and competitiveness.
In order to build a solid foundation for the nation's cultural soft power, China needs to deepen the reform in its cultural system, promote socialist core values and push forward the cultural industry.
He stressed more publicity for modern Chinese values, or socialist values with Chinese characteristics.
The publicity and interpretation of the Chinese Dream should be integrated with such values, Xi noted.
The Chinese Dream means the Chinese people's recognition and pursuit of values, the building of China into a well-off society in an all-round way and the great rejuvenation of the Chinese nation, he said.
The Chinese Dream also means that every Chinese will realize his own dream in fulling the Chinese Dream, the highest common factor for the unity of the Chinese nation, and the sincere aspirations of the Chinese nation to contribute to the mankind's peace and development, Xi added.
To show charm of the Chinese culture to the world, Xi said it was important to accommodate Chinese cultural inheritance with contemporary culture and a modern society.
Mass media, groups and individuals should play their roles in displaying the charm to the world, he added.
To strengthen China's soft power, the country needs to build its capacity in international communication, construct a communication system,better use the new media and increase the creativity, appeal and credibility of China's publicity, Xi said.
"The stories of China should be well told, voices of China well spread, and characteristics of China well explained," the President said.
Source:CCTV

Chinese real estate industry is marching into the overseas market.

While the Chinese real estate industry is marching into the overseas market, its first choice is usually countries where there are many Chinese people, such as the US, Canada, Australia, New Zealand, Malaysia and Singapore, International Finance News reported.
Chinese real estate enterprises investing in the overseas property market can date back to the year 2006, when Shanghai Industrial Group, joined by Ningbo United Group, Jinjiang International Group and Greenland Group, made a $1.346 billion investment of the "Baltic Pearl" project at Finland Bay in St. Petersburg, Russia.
The most recent investment was made on October 2012. Greenland Group and US Forest City Group started a joint venture and made an acquisition of the Brooklyn Atlantic Square real estate project. The total investment exceeded $5 billion and is the largest single real estate project in the last 20 years in New York. Greenland Group has successfully entered six countries including the US, South Korea and Australia.
Actually, top Chinese real estate enterprises have never missed any parties that explore the overseas market.
Since 2012, large real estate companies including Vantone Real Estate, Capital Group, China Railway Construction Corporation and SOHO have all had real estate projects or made investment plans in the overseas market.
"They would be ashamed to claim themselves as ‘first-tier companies' if they do not explore the overseas market," a real estate commentator joked.
In 2012, Dalian Wanda, China Oceanwide Holdings and Russian North Caucasus Resorts company signed an intent agreement with a total investment of $2.5-3 billion, planning to build large cultural, tourism and commercial facilities in Moscow, St. Petersburg and North Caucasus.
Earlier this year, China's biggest real estate company, Vanke, entered the US by buying a 70 percent stake of Block 201 in Folsom Street, San Francisco from its real estate veteran developer, Tishman Speyer.
Another Chinese real estate giant, Country Garden, has invested five real estate projects in Johor Bahru in south Malaysia last year and now these projects are for sale. The thousands of houses built have been proved to be very popular and over 10 million yuan worth of houses have been sold. What is worth noticing is that 60 percent of the buyers are Chinese.
It is easier for those Chinese who want to make a property investment in a foreign country to choose large domestic enterprises. They are more familiar to the Chinese people and can be quickly identified with, Country Garden explained.
In fact, the first choice for most Chinese real estate enterprises who have marched into the overseas market is those countries where there are many Chinese residents, such as the US, Canada, Australia, Malaysia, Singapore and Japan.
In recent years, the number of buyers from the Chinese mainland has been soaring, leading to the heating-up of the overseas property market. In Europe and the US, many natives have complained that the influx of Chinese investors has driven up house prices.
Global real estate service provider Savills' data show that buyers from the Chinese mainland have become the largest buying group of private residences in Singapore since 2010, beating the Malaysians and Indonesians.
"We go where Chinese people go," Vanke President Yu Liang said straightforwardly.
Although some countries have rules that state a certain proportion of the houses must be sold to the natives, the large number of Chinese buyers has given Chinese real estate developers enough confidence for their overseas gold rush.

Source: ChinaDaily

Location, location … Chinese investors learn

As all successful developers know, only a prized and special location can breathe life and meaningful value into the structures that arise on it. Now, more Chinese developers are showing a strong will to stick to this idea with diversified buyers in the US.
In the latest case, Beijing-based Oceanwide Real Estate Group sees California as its ideal destination to expand overseas business as a new year is around the corner.
With a media avalanche, its Tohigh Construction unit recently signed an agreement to acquire Fig Central in Los Angeles for up to $200 million.
"Chinese and other Asian developers or investors are only looking for the best development sites in the downtown, with entitlements in-place, for the development of luxury condominiums, and to a lesser extent, hotel and retail," John Eichler, executive director of Cushman & Wakefield told China Daily on Monday.
He is one of two brokers on the deal. The seller is Moinian Group — one of the most active and prestigious high-rise developers in New York City.
Fig Central is a 4.6-acre plot within the downtown Los Angeles Sports and Entertainment District, a high-end, mixed-use complex, he said.
"At this time, Chinese developers or investors are not considering Grade B development sites in the downtown or other communities in Los Angeles," Eichler said.
Its development potential is the entitlements to build about 1.5 million square feet of high-rise mixed-use structures, including condominiums, hotels and retail space, he added.
The Chinese company said the project is a very important step for them to go abroad and push forward the internationalization of the company.
Experts said the purchase reflects a growing interest by Chinese investors in US real estate, particularly on the West Coast and in New York City.
"I know a lot of similar cases are undergoing it on the West Coast, and California has been the most popular destination for Chinese real estate developers and investors," said Skip Whitney, executive vice-president of Kidder Mathews, a San Francisco-based commercial real estate firm.
During the first ten months of this year, investment in the US property market from China touched a ceiling of $ 5.89 billion, six times of the combined value of their investment in 2011 and 2012, according to the latest data available from research institute Rhodium Group.
Whitney noted San Francisco and Los Angeles are the top destinations in California for Chinese developers, as they prefer to do business in a more familiar culture and there are more Chinese-heritage communities and immigrants in the two cities.
"I think Oceanwide has done its homework for its investment, just like Vanke's overseas move to San Francisco earlier this year," he said.
China Vanke, China's No1 real estate firm by market value, signed a deal with US real estate firm Tishman Speyer to develop a planned luxury residential condominium tower in San Francisco early this year. It was the developer's first venture into the US market.
Source: ChinaDaily

Popular Posts