Sunday, 1 June 2014

5th Texas Sino-America Career Forum and Career Fair

5th Texas Sino-America Career Forum and Career Fair held on May 25 in Houston and hosted by the United Association of Chinese Alumni in Great Houston (UACAGH) and V Life. Chinese Chinese corporations such as Sinopec, Foxconn and Air China, and local companies such as East West Bank were on hand to recruit talent in the greater Houston area. Michael Weng, CEO of Beijing CeTeTek, real estate broker Jin Fei, lawyer Xu Zhong and accountant Natasha Dickson shared ideas on building a successful career, tax law, opportunities in real estate and immigration.

Source: ChinadailyUSA

ChinaDailyUSA : Xi endorses jobs increase in Xinjiang

The central government has pledged to boost employment in the Xinjiang Uygur autonomous region, a move that experts say is crucial for improving livelihoods and maintaining stability.
President Xi Jinping said authorities in Xinjiang must make improving employment their top priority, urging them to help residents to gain more skills, to find jobs or to start their own businesses.
Xi was addressing a two-day, top-level conference on Xinjiang attended by nearly all senior Chinese officials and which closed on Thursday in Beijing.
He said the number of Xinjiang residents going elsewhere in China to study, find work or to settle should be expanded.
Xi asked the government to allocate more education funding to Xinjiang and said schools should push bilingual education.
The president also called for "nets spread from the earth to the sky" to combat terrorists in Xinjiang and stressed that long-term stability was the main goal for the region.
He said that people's legal religious demands should be protected in accordance with laws and regulations, while their customs should be respected.
The meeting was held following a series of bloody terrorist attacks in the region, including one last week at an open-air market in Urumqi, the region's capital, that left 39 innocent victims dead and another 94 injured.
China has convened four high-level meetings dedicated to supporting Xinjiang's development since 2010 and assigned economically developed municipalities and provinces to help selected areas in the region.
Premier Li Keqiang said at the meeting that employment had been the biggest concern for Xinjiang people.
The premier asked the local government to ensure that economic growth benefited residents.
He said all enterprises and investment projects in the region must recruit more local workers.
Turgunjan Tursun, a sociology researcher at Xinjiang Regional Academy of Social Sciences, said: "Employment is the most important pillar to Xinjiang's development and stability. Most of the participants in violent or terrorist acts in the region were young people who had no jobs or were in unstable employment."
Such people were susceptible to falling under the influence of troublemakers.
He said the job market in Xinjiang had been unsatisfactory for the past decade despite continuous efforts by the central government and local authorities.
"Some large enterprises investing and operating in the region failed to take care of the employment needs of local residents, especially those from ethnic minorities, or even circumvented the government's requirement to hire a certain number of local workers in their units," he said.
He suggested the government adopt stricter supervision on the implementation of favorable policies, adding, "Authorities should also use financial and tax measures to encourage enterprises to employ more local people."
In addition, other provinces and cities with high numbers of workers from Xinjiang should better protect the legal rights of the region's workers and strengthen training for them, Turgunjan Tursun said.
"Sending more Xinjiang people to work outside the region can help enhance their sense of unity and affinity with people from other ethnic groups, boost cultural exchanges and alleviate labor shortages in other places."
Zheng Liang, a researcher at Xinjiang University who has long followed employment issues in the region, said: "Enterprises should not evade their social responsibilities. They must help the government resolve the needs of jobless residents in southern areas of Xinjiang."
Local people should also stop thinking that only government departments or publicly funded institutions offered good jobs, as this led to a reluctance to find jobs in the business sector, Zheng said.
Xi Jinping
"In the long run, the Xinjiang issue is an issue of ethnic unity. People from different ethnic groups must learn to understand, cherish and help each other as well as stick together like the seeds in a pomegranate."
"The fruits of Xinjiang's development must be used to improve people's livelihoods. Employment must be made a priority. Authorities need to help people find employment in the cities as well as find jobs and set up their own businesses near their homes."
Li Keqiang
"Xinjiang's social development and maintaining stability are closely related and complement each other. The region's development must benefit the locals while protecting the environment."
"Bilingual education needs to be promoted in Xinjiang to help people master the national common language so they can have more employment opportunities."
Source: Xinhua

China: Tougher standards set for toy production. It produces and exports more than 70% of World's toys

China's quality-control watchdog unveiled four new national toy-safety standards on Thursday covering all products designed for children younger than 14 years old.
The standards include stricter requirements for DEHP - a toxic plasticizer - as well as limits for noise and flammability, according to the General Administration of Quality Supervision, Inspection and Quarantine and the Standardization Administration.
The new standards will take effect on Jan 1, 2016.
Zhang Yanfen, secretary-general with the National Technical Committee for Standardization of Toys, said the new standards have taken into consideration the International Standards Organization standards for toys and local standards including those of the European Union.
The new standards are in line with the European standards in the requirements for amount of plasticizers allowed in toys, for which the ISO standard has no specific requirements.
The country had previously faced worries from domestic consumers that there is no ceiling for DEHP in the domestic standards, following reports of toxic toys in exports to the United States and Europe.
Liu Jianxin, a senior engineer with the light industrial products and children's products test center with the Jiangsu Entry-Exit Inspection and Quarantine Bureau, said it will take some time for the new standard to be enforced and that authorities decided to enact the new standards in 2016, one year and seven months after it was unveiled.
"For the producers, it means the purchase of new raw materials and installation of new production lines," he said.
Fang Xiang, deputy chief with the Standardization Administration, said the authority will introduce measures to encourage manufacturers to adopt the new standard as soon as possible.
The authority will first make public the names of companies that adopt the new standards to inform consumers before the mandatory standards are eventually adopted, he said.
The new standards are also expected to make it easier for Chinese toy makers to export toy products to developing countries, which usually adopt the ISO standards, according to Zhang with the National Technical Committee for Standardization of Toys.
But Liu said the new regulation will not have much affect on toy producers that export to the European and US markets, as they already meet the local standards.
With $24.7 billion in exports in 2013, China produced and exported more than 70 percent of the world's toys, China Securities Journal reported.

TheGuardian: Hedge funds: the mysterious power pulling strings on Wall Street

Hedge funds, those financial funds run by extraordinarily rich men, are going mainstream. Not content to be investments for just the super rich and super connected, they are starting to offer services to the average investor. 
A good example comes this week from hedge-fund manager Bill Ackman, who is famous on Wall Street but not yet a household name. He wants to start a small fund with a public listing to collect money from the public that he can then invest. 
Ackman's new fund itself is not a hedge fund, but because he is a giant in the hedge-fund world, regular investors may be attracted to the mystique of a world that usually locks them out.
"Wall Street is about collecting and trading in information. Yet the rules concerning trading in information, what is legal what is illegal, are notoriously gray. So hedge funds hire teams of lawyers to navigate and at times push right into the gray".

Hedge fund bullies

Let's be clear: the average investor should not be too excited. Hedge funds are certainly powerful, but it is not clear they all deserve the power or are using it well – not based on performance at least.
When I was a trader at a big bank, several years ago, I learned about that power of hedge funds. In a moment of luck, I made $1m in 10 seconds trading with a large hedge fund. They made a bad bet – buying bonds from me that dropped in price seconds later. I was up a cool $1m and they were down $1m.
That didn't sit well with them. Hours after the trade I received a tap on the shoulder from a senior member of my bank, asking me to rewrite the trade and give half of my profit back to the hedge fund.
My bank was doing the fund a favor. The hedge fund was an important and connected client, and the trade was, well, embarrassing to them. That embarrassment might jeopardize other business with the bank, threatening millions in fees. Over my objections, my bank renegotiated the terms of the trade to give the hedge fund a better price.
It was a perfectly legal, but unusual concession. It was also a lesson: hedge funds can even bully the biggest banks in the country.

Where the real power lies

Hedge funds, to the regular citizen, seem shadowy and strange. Super secretive, absurdly paid, massive investment firms that manage, in total, close to $2.2tn. Who are these guys and why do they deserve the royal treatment and enormous pay?
They're bad boys of finance, with lots of money. Hedge fund managers are often glamorized as super wealthy hotshots with special insight into how to invest. They are also generally rich. Collecting-modern-art rich. Last year, the total pay of the top 10 hedge fund managers was $15bn. One gentleman, David Tepper, was paid $3.5bn.
Because of their reputations, hedge fund managers can collect money – anywhere from a few million to a few billion – from rich people and big institutions like pension funds and college endowments. Demand is only increasing; in the last 20 years, hedge funds have collectively grown by 1,000 times. 

'Sophisticated investors'

Hedge funds have almost complete freedom, for one reason: the government allows them to approach only the very rich, with assets of at least more than $1m – and usually, over $10m. These are called "sophisticated investors". The assumption is that lots of money gives you enough investing knowledge to lose it however you'd like. 
Because hedge funds deal only with the sophisticated investor, they have almost no restrictions on what they can invest in, or how they can invest, short of breaking the law. They can put their money in everything from the stock market to farmland to gold mines.
For the privilege of exclusivity, they charge their "sophisticated investors" huge fees. The general rule is "two and 20"; the hedge funds pay themselves 2% of all the assets they oversee, and 20% of any gains in a given year.
For that kind of cash, you'd expect them to deliver.
By many measures – and it is hard to measure – hedge fund returns are pretty much just average.
That hedge funds can charge such high fees for such average returns has economists and many others confused. It's not exactly rational.Theories abound.
People may invest in hedge funds for many reasons, but there is something simpler at work: the idea that you'd rather be with hedge funds than against them. Sophisticated investors assume hedge funds have an informational edge, either legal or illegal. They're so well connected and so informed, the thinking goes, that they must know something we don't.
It is not a bad assumption, as far as assumptions go.

Hedge funds trade in the gray area of information

Information is everything to trading. Knowing more, knowing it quicker, or being the only one to know, will make you money. It’s often the only guaranteed way to try to outsmart the markets.
Hedge funds strive for that edge, certainly the legal one. Every trader does. Yet with less regulation and less observation, hedge funds can do it in a far more aggressive manner.
Wall Street is about collecting and trading in information. Yet the rules concerning trading in information, what is legal what is illegal, are notoriously gray. So hedge funds hire teams of lawyers to navigate and at times push right into the gray.

They do it by hiring the best and the brightest. Some have more PhD’s than many college math or economic departments.
They do it by trying to know everything about whatever they are trading. A country has laws making it illegal to run polls the week prior to elections? No problem. Hedge funds will hire their own pollsters for private polls.
They do it by hiring, and paying very well, people with connections. The number of former officials and present officials who have hedge-fund ties is staggering. It is almost now considered normal. Leave public service related to politics and finance? Go directly to hedge fund. Do collect large payment.
Larry Summers, after his stint at the Treasury, and before his job of chief economic adviser to President Obama, spent two years working for one of the largest and most opaque hedge funds, DE Shaw. He was paid close to $5m for that work.
Wall Street is about collecting and trading in information. Yet the rules concerning trading in information, what is legal what is illegal, are notoriously gray. So hedge funds hire teams of lawyers to navigate and at times push right into the gray.
Sometimes hedge funds go from fiddling around in the gray, and just allegedly break the law. This year the hedge fund SAC Capital paid a$1.8bn fine stemming from charges against eight of its employees for insider trading. Two years prior, the founder of the firm, Steve Cohen, did well enough to collect a paycheck worth $1.4bn.

Source: TheGuardian

WSJ: China Military Official Blasts U.S. 'Hegemony' at Shangri-La Conference Hagel Accuses Beijing of 'Destabilizing, Unilateral Actions'

China asserted a bold vision of itself as the pre-eminent power in East Asia, sparring with the U.S. at a meeting of the world's top defense officials and inflaming tensions with its less-powerful neighbors.
Beijing's stepped-up rhetoric illustrated its view that U.S. power in the region is waning even as China's more-aggressive approach appears to be bringing other nations together to counter its growing military and economic sway.
At the Shangri-La Dialogue in Singapore over the weekend, a top Chinese military official issued an unusually robust riposte to U.S. Defense Secretary Chuck Hagel,who criticized China's "destabilizing, unilateral actions" in the South China Sea, including deploying an oil-drilling platform in disputed waters, among other moves.
Lt. Gen. Wang Guanzhong, the Chinese military's deputy chief of general staff, fired back on Sunday, saying Mr. Hagel's speech was "full of hegemony, full of words of threat and intimidation," and part of "a provocative challenge against China."
Other Chinese officials at the meeting were similarly blunt in their assessment of the U.S.
"The Americans are making very, very important strategic mistakes right now," Maj. Gen. Zhu Chenghu said in an interview. "If you take China as an enemy, China will absolutely become the enemy of the U.S.," he said.
He went on to tell a Chinese-language broadcaster that U.S. power was declining.
China is feeling increasingly comfortable with the idea that it is Asia's top power, or at least should be treated as an equal of the U.S., and it is engaging in displays to show that the U.S. can do little or nothing to stop it despite America's greater military firepower, according to several experts.
"China is very significantly upping the ante here," said Hugh White, a professor of strategic studies at the Australian National University. "What we're seeing is a steady and sharp increase in the overtones of the strategic rivalry."
Another analyst, who asked not to be named for fear of offending China, said it was remarkable how much other countries' impressions of China had shifted in the space of just a few years.
"You could say, now [the Chinese are] behaving more like a great power,—they're behaving with a sense of entitlement, a sense of exceptionalism—the way the Americans have done, and the British before them, as if the rules don't apply to them."
But China also risks overplaying its hand by speaking out so forcefully against the U.S. and its allies.
"China's position is not as strong as it thinks it is," said Rory Medcalf, director of the International Security Program at the Lowy Institute for International Policy in Australia. Not only do China's more-aggressive actions encourage other countries to band together to counter China's rise, they also make it easier for the U.S. to justify its continued military role in the region, he said.
Some U.S. officials have said privately they hope that China's actions in the South China Sea and its tough language will push America's allies to strengthen ties with one another, and smaller nations to seek stronger ties with the U.S.
But the strategic equation is changing rapidly as China's economic and military power grows. Deepening trade and economic ties between China and its neighbors mean that many Asian countries can't afford to challenge China.

WSJ: More Delays to US LNG Exports

"LNG STUCK ON AMBER
America’s slow move toward exporting its natural gas bounty could be delayed still further.
The Obama administration said it would perform a more rigorous upfront review of proposals to export liquefied natural gas. The Wall Street Journal’s Alicia Mundy andAlison Sider explain that this would require export-terminal proposals to first undergo a more expensive regulatory review by the Federal Energy Regulatory Commission, involving an environmental impact assessment, before the Department of Energy reviews the permit application.
But a few of the 25 proposed projects could benefit. It could push back the approval process for some companies’ permit requests, while more-advanced proposed projects are expected to be able to jump forward in the queue.
That will be frustrating for those who hold that exporting is a no-brainer. Also for companies that are already investing in the hope of either sending or receiving U.S. LNG.
Frustrating too, for those who believe opening America’s LNG taps would drive down energy costs world-wide (not that this is necessarily a done deal, as the Journal has explained more than once.)
In Canada, similar delays are besetting the LNG-export industry. The head of Malaysian national oil and gas company Petronas has warned that the window of opportunity is small for those that want to take a competitive lead.
The Journal’s Chester Dawson reports that Petronas’ CEO cited the Australian experience, where the LNG “boom fizzled out before it even took off.”
Cost pressures could abate Down Under this year, Platts reports, leading to a possible second-wave of LNG project development.
MEXICAN WAYS
There’s trouble brewing down Mexico way.
The arrest of Amado Yáñez Osuna, head of oil services firm Oceanografia, has sent shock waves across the country, the Journal’s Laurence Iliff and Amy Guthrie report.
Mr. Yáñez has been charged with violating banking laws, with his company being accused of defrauding the local unit of U.S. giant Citigroup.
This has shone a spotlight on long-simmering allegations that the country’s former ruling National Action Party used state-owned oil from Petróleos Mexicanos, or Pemex, to favor Oceanografía and other contractors during the party’s 12 years in power.
This could all have implications for the Mexican government’s plans for the energy sector, which include ending Pemex’s 75-year monopoly on domestic oil and gas and allowing a new round of exploration to see how far south the Texan shale-oil seams run".
Source: The WSJ

Xinhua: Chinese veteran diplomat debunks Japan's "proactive" approach to peace

 The idea of "proactive peace" Japanese Prime Minister Shinzo Abe preaches should be a cause for concern because its essence is not peace but "proactiveness," says a senior Chinese diplomat.
The so-called "proactive" approach is aimed at changing the path of peaceful development set for Japan after World War II, Fu Ying, a former vice foreign minister, said here on the sidelines of the Shangri-La Dialogue, a regional security forum.
Japan's moves in recent years are worrying because the country inflicted tremendous harm on its neighbors in modern history, and it has not truly come to terms with its past, the soft-spoken diplomat noted.
Even worse, the current leaders of Japan have been trying their best to deny and beautify Japan's history of invasion, added Fu, who now chairs the Foreign Affairs Committee of the National People's Congress (NPC).
In his keynote speech at the Shangri-La Dialogue on Friday, Abe used various innuendoes to paint China as a threat. He also called on his compatriots to revise Japan's pacifist constitution, saying the Self-Defense Forces should play a larger role in regional security.
"He has been trying to lift the lid on Japan's right of collective self-defense, and he is drumming up a campaign for Japan to be more proactively involved in international security affairs. Given all that, we cannot help questioning the motive, aim and consequence of his moves," Fu said.
She expressed concern that Japanese leaders, with various pretexts, may lead Japan on "a wrong path as their predecessors in modern history did."
"Our world is increasingly globalized and the countries are increasingly interdependent. What we need is peace and stability, and development and steady improvement of people's living standards," she said.
"We are opposed to raising voices on differences and disputes or creating confrontation. ... We must stay vigilant and not let what happened tragically in history repeat itself," added the diplomatic veteran.
COOPERATIVE SECURITY
Fu said that she came to the three-day Shangri-La Dialogue, which opened Friday, to listen to other countries' views on security issues while trying to explain China's policies and stances.
"Asia is a region of growth and vitality. It has had peace and stability after the Cold War. At the same time, however, it is also a region of diversity with multiple interwoven challenges. To maintain peace and stability and sustain our cooperation and growth momentum, we have to keep our channels of communication open, and keep on efforts to build confidence and reduce distrust," she said.
Fu said countries in the region should further push forward their economic integration in order to achieve common, comprehensive, cooperative and sustainable security, the goal of a security approach put forward by Chinese President Xi Jinping at a recent security summit in Shanghai.
"We should pursue sustainable security through the pursuit of sustainable development," she said.
She also said that in the 21st century, the goal must be common security that takes account of the interests and concerns of all countries.
"It must be inclusive. We cannot limit our pursuit to the security interests of a small number of nations or the absolute security of the members of an alliance," Fu said. "We should increase our constructive interaction among major countries and discard the Cold War mind-set."
She urged countries in the region to stick to the path of multilateralism and build an inclusive regional security cooperation framework.
It is good for the Association of Southeast Asian Nations (ASEAN) to be at the center of regional cooperation and for all the countries to work together "in the ASEAN way," which works by building on consensus while properly handling differences and disputes, she added.
Fu, who answered questions and explained China's policies at the Shangri-La Dialogue, said China does need to think about how it can better communicate with the rest of the world so that people could understand China's ideas and thoughts better and know them more timely.
"One of the most frequently asked questions at the Shangri-La Dialogue is: 'China is so powerful, so what changes will it bring to this region and the world?' Obviously China is now seen as a major power in the world," she said.
She added that she expects people from other countries to be following the latest developments related to China more closely and with more critical eyes.
"Misunderstanding and misreading can often make it hard to see the truth, especially when others do not have enough knowledge about China and when there still exists the Cold War mind-set," she said.
Responding to a question on maritime disputes in South and East China Seas, Fu said China has always been opposed to unilateral changes to the status quo or provocations in these areas, adding that its policy has always been the peaceful solution of the disputes through consultation and negotiations between the countries involved.
However, she said, China has faced unilateral provocations by certain countries in recent years, with some not only creating incidents but also taking dangerous actions that could jeopardize regional security.
"China has had to respond effectively and forcefully to the provocations to defend our interests, while we have to prevent the situation from running out of control, uphold the consensuses that have been achieved by various parties, and safeguard regional stability," she said.
ASEAN CENTRALITY
Fu said the core of the South China Sea issue is the overlapping of sovereign disputes over some islands and reefs in the Nansha Islands and claims on maritime interests.
China is committed to settling the disputes through direct negotiations and friendly consultations with other claimants based on respect for historical facts and international laws, including the United Nations Convention on the Law of the Seas (UNCLOS), she said.
The NPC ratified the UNCLOS in 1996. The spirit of peaceful use of seas in the UNCLOS reflects the common aspirations of mankind, even though it is not a perfect law as many of the stipulations are not specific enough, she noted.
As the UNCLOS does not touch upon disputes of sovereign claims, which is clearly written in the preface of the document, nobody can unilaterally declare an exclusive economic zone and then use it as an excuse to claim islands in the waters in question, Fu said.
She said the UNCLOS is only part of international laws, which also include the United Nations Charter and the international codes and practices.
Bilateral and multilateral agreements and consensus, including the Declaration on the Conduct of the Parties in the South China Sea (DOC), which was concluded in 2002 among China and the ASEAN countries, are also an important part of the international rules, she said.
China will continue to work with the countries involved to keep on communication, enhance mutual political trust, and carry out maritime cooperation, so as to create an environment for managing differences and resolving disputes, she said.
Beijing will also work with the ASEAN countries to effectively implement the DOC while working on a code of conduct within the framework of the DOC, Fu noted.

Chinese military ready to make further contribution to peace, development: army general

 The People's Liberation Army (PLA) of China is ready to work with other militaries to make further contribution to regional and global peace and development, Wang Guanzhong, a senior PLA officer, said on Sunday.
"We will continue to work with regional countries to carry out in-depth bilateral and multilateral security dialogues and exchanges," Wang, deputy chief of the general staff of the PLA, said in a speech at the 13th Shangri-La Dialogue.
Wang said that China will continue to step up dialogue, communication and coordination with countries of the Association of Southeast Asian Nations (ASEAN) in the defense and security areas and support the development of the ASEAN Community.
Wang said in his speech that China has proposed to work with regional countries to build a Silk Road Economic Belt and a 21st Century Maritime Silk Road. The two major cooperation initiatives offer new opportunities for China and regional countries to achieve common development.
The senior PLA officer said that the building of the two major cooperation initiatives has to be driven by two wheels -- the development and the security.
"The PLA is ready to work with regional countries to strengthen practical cooperation in counter-terrorism, disaster relief, protection of sea lines of communication and other fields, thus ensuring common prosperity of countries along the Economic Belt and the new Silk Road," Wang noted.
Over the issue of promoting disaster relief cooperation, he said that this plays an important role in jointly tackle challenges in this region.
"The Asia-Pacific is prone to various disasters. The importance of regional disaster relief cooperation is further highlighted by the recent search and rescue operations for the missing Malaysian Airliner MH370," Wang said.
He noted that in order to improve regional capacity building, China this year has arranged five bilateral and multilateral joint disaster relief exercises and drill of all services with regional countries.
Moreover, China and Malaysia will co-host the 4th ASEAN Regional Forum Disaster Relief Exercises, Wang added.
According to him, it is the shared responsibility of all to strengthen maritime cooperation and maintain maritime security because the ocean serves the common interests of all Asia-Pacific countries.
Wang also mentioned in his speech that in order to maintain regional security and stability, it is crucial to properly manage differences, ensure timely communication, and dispel misperceptions and miscalculations.
"China has established defense telephone links with Russia and the United States and we are exploring the possibility of establishing similar telephone links with ASEAN countries," he added.
The Shangri-La Dialogue, organized by the London-based think tank International Institute for Strategic Studies, has been one of the key events for defense professionals in the region to exchange views on security issues.
Source: Xinhua

Xinhua: Provocative remarks from U.S., Japan not helpful for regional security: Chinese general

The provocative harsh remarks against China by United States Defense Secretary Chuck Hagel and Japanese Prime Minister Shinzo Abe at a regional security forum are not helpful for regional peace and stability, an army general heading the Chinese delegation said on Sunday.
Delivering a speech on the third day of the Shangri-La Dialogue in Singapore, Wang Guanzhong said he has planned to use the opportunity to elaborate on China's newly proposed approach and framework of common security and cooperative security in Asia but had to move away from the prepared text to respond.
"My feeling is that Mr. Abe and Mr. Hagel were singing notes in chorus. They were corroborating and colluding and using the opportunities to speak first at the Shangri-La Dialogue to take the initiative to provoke and challenge China," he told military generals, defense chiefs and scholars.
Hagel criticized China as being the one taking unilateral actions on the South China Sea and said that the United States will maintain its leadership in the Asia Pacific and defend the interests of its allies. He also repeated the U.S. pretext of concerns for the freedom of navigation and respect for international law in the South China Sea.
Wang said he did not expect the languages of hegemonism and words of intimidation in the speech of Hagel.
"He made a speech to stoke instability and encourage fight picking in the Asia Pacific. The attitude there is not constructive," the Chinese general said.
No disputes or incidents have been initiated by China over a long period of time on sovereign and maritime issues and China has always had to respond, he said.
Abe delivered a keynote speech on Friday evening full of thinly- veiled comments aimed at China. He talked about how he intends to revise and push beyond the limit of Japan's pacifist constitution that was put in place after the World War II and how he intends to go for a larger role for Japan in Asia in security by promoting the idea of "proactive peace" and giving patrol ships to the Philippines and Vietnam to support their maritime claims.
Wang said everybody can see the remarks of Abe, full of innuendoes, are aimed at China.
"Hagel was being quite frank. He just bluntly and openly criticized China, albeit baseless. But I rather like his way of talking. If you want to say something, it's better to just say it directly," he said.
"As a prime minister, Abe was invited to the Shangri-La Dialogue by the organizers to give a speech. He could have upheld the goal of dialogue facilitation set for the forum to advance peace and security in the Asia Pacific. He could have contributed constructive suggestions but, opposite to the spirit of the dialogue meeting, he initiated incidents and stoke disputes," Wang said.
"I think this is not acceptable, and this is not in line with the spirit of the dialogue meeting," he added.
Wang said that China never took the initiative at the Shangri- La Dialogue to incite disputes.
"If you also look at what the United States and Japan did, it was not difficult to see who took the initiative to pick fights and incite disputes and conflicts. From the speeches of Abe and Hagel, we can see who on earth are aggressive. It is the United States and Japan corroborating with each other, and not China," he said.
Despite the harsh words from the United States and Japan, Wang called for cooperation and coordination to work for regional peace and stability.
Both China and the United States have common interests in a world of increasingly interdependent countries, and Chinese President Xi Jinping has recently proposed the approach of common security and sustainable security for Asia, which calls for cooperative security and mutually beneficial development to lead efforts for peace and stability in the region.
China has said that the approach of dividing Asian countries into allies and non-allies by the United States will not lead to security for all and that the 21st century is the time to drop the mentality of alliance to achieve security at the expense of other countries.
The approach outlined by China calls for efforts from all the countries in the region to contribute to regional peace and stability through the pursuit of cooperation and development. Scholars said the approach is much more inclusive and that other countries are also welcome to play a constructive role.
Russian Deputy Foreign Minister Anatoly Antonov voiced concerns for the detrimental impact on regional peace and stability from the wave of color revolutions with democracy as a pretext.
He said that Russia is opposed to the deployment of missile defense systems in the Asia Pacific which breaks the strategic balance in the region.
Antonov also questioned the idea of the United States must be a leader.
"We are opposed to any division of the Asia Pacific nations into 'primary' and 'secondary' ones, leaders and supporters. We are all equal. We have equal rights and obligations. At the same time every nation is unique in terms of its history, cultural heritage and traditions," he said.
The Shangri-La Dialogue, officially the Asian Security Summit organized by the International Institute of Strategic Studies, a London-based think thank, gathers defense and military representatives and scholars from 27 countries in the Asia Pacific region and beyond

Chinese military endeavors to contribute to maintaining Asia-Pacific security: officer

China always pursues a defense policy that is defensive in nature, and the People's Liberation Army (PLA) of China is endeavoring to contribute to maintaining regional security, Wang Guanzhong, a senior PLA officer, said on Sunday.
"We actively conduct friendly military exchanges and cooperation with countries in the Asia-Pacific. China's military- to-military cooperation with other Asia-Pacific countries is showing unprecedented dynamism," Wang, deputy chief of the general staff of the PLA, said in a speech at the 13th Shangri-La Dialogue.
He said China has established defense consultation and dialogue mechanisms with 13 neighbor countries, and has held 50 joint exercises and drills with other countries in this region in recent years.
China is seeing military cooperation in the Asia-Pacific that covers all dimensions, broad areas and multiple levels, Wang said, adding that his country continues to work on the enhancement of military cooperation with Russia, the United States, India and other major Asia-Pacific countries.
"The robust military cooperation among major powers plays an important role in maintaining regional security," he said.
In his speech, Wang also outlined China's extensive participation in regional multilateral defense and security cooperation.
"We are actively engaged in security cooperation with Shanghai Cooperation Organization, the Conference on Interaction and Confidence Building Measures in Asia, ADMM (ASEAN Defense Ministers Meeting) plus, the ASEAN Regional Forum and China- ASEAN framework," said the officer.
The senior PLA officer also stressed that China is committed to properly handling disputes over territory, sovereignty and maritime rights and interests.
"China has settled land border demarcation with 12 out of 14 of its neighbors and completed the delimitation of Beibu Gulf with Vietnam," Wang said.
"The PLA has set up 64 border meeting stations. Over 2,000 meetings were held between Chinese and neighbor border troops in these stations in 2013."
Wang stressed that China has never threatened to use force, and has never taken provocative actions.
Meanwhile, China will never accept provocation by others under the pretext of "positive pacifism" that stirs up tension for " their selfish interests", Wang said.
The Shangri-La Dialogue, organized by the London-based think tank International Institute for Strategic Studies, has been one of the key events for defense professionals in the region to exchange views on security issues.

Fresh Records Getting Stale With S&P 500 Volume at Six-Year Low

About 1.8 billion shares traded each day in S&P 500 companies last month, the fewest since 2008, according to data compiled by Bloomberg. When the gauge hit an all-time high on May 23, only about 20 of its 500 companies reached 52-week highs, the data show. That’s the lowest number in a year.
When volume and breadth wane even as stocks surge, it’s a warning sign that has preceded losses in the past, according to Sundial Capital Research Inc. in Blaine, MinnesotaHayes Miller, who helps oversee $57 billion at Baring Asset Management Inc., says the skepticism shows investors distrust a rally built on Federal Reserve stimulus.
“Breadth is suggesting that the market is topping,” Miller, the Boston-based head of multi-asset allocation for Baring, said in a May 28 telephone interview. “This is not a good starting point for buying equities at this price. We all know that investors are induced into risk assets by central bank policies, which keep your safer options very unattractive.”
Exchange-traded and mutual funds that buy U.S. shares saw $1.2 billion in outflows this quarter, while bonds received $34 billion, data compiled by Bloomberg and the Investment Company Institute show. The gap is poised to be the largest since September 2012.
Individuals investing through the funds only started buying stocks in 2013 after the S&P 500 more than doubled from its 2009 low. They added more than $150 billion to funds last year after withdrawing $260 billion in the previous four, data compiled by ICI and Bloomberg show.
“Over the past couple of months we’ve seen an increase of flows out of stocks and back to bonds, which has been a surprise,” Cameron Hinds, the Lincoln, Nebraska-based regional chief investment officer for Wells Fargo Private Bank, which has about $170 billion under management, said in a May 29 phone interview. “We’ve also been surprised by the degree to which the yield on the 10-year Treasury note has drifted lower.”
The benchmark U.S. 10-year note saw its yield drop to 2.44 percent last week, the lowest in 11 months. 
“What drives activity in our business is volatility,” Gary Cohn Goldman Sachs President, said in New York on May 28. “If markets never move or don’t move, our clients really don’t need to transact.”
Citigroup Inc. Chief Financial Officer John Gerspach said last week that second-quarter trading revenue could fall as much as 25 percent from year-earlier levels, and JPMorgan Chase & Co. estimated a 20 percent drop.
 Bloomberg journalists write their articles, following  this criterion, there are reasons for bearish quotes and reasons for bullish quotes so this article ends: “What altered this market is all the money printed by central banks,” Mary Ann Bartels, the New York-based chief investment officer of portfolio strategies at Merrill Lynch Wealth Management, said in a phone interview. The firm oversees about $1.9 trillion. “There is no textbook that tells us how markets are going to trade.”

Asian Stocks Advance as Chinese Manufacturing Expands

Asian stocks rose after a gauge ofChina’s manufacturing expanded at the fastest pace in five months and the nation’s policymakers said they will cut the reserve requirement ratio for some banks.
The MSCI Asia Pacific Index gained 0.3 percent to 142.16 as of 9:26 a.m. in Tokyo, on course for the highest close in six months. Trading volumes across the region will be lower than average with markets in China, Hong Kong and New Zealand closed today for holidays. Japan’s Topix index advanced 1 percent and South Korea’s Kospi index rose 0.4 percent. Australia’s S&P/ASX 200 Index was little changed.
China’s economy is projected to grow 7.3 percent this year, which would be the weakest pace since 1990, according to an analysts’ survey in May. Expansion slowed to 7.4 percent in the first quarter from a year earlier, compared with 7.7 percent in the previous period.
Source: Bloomberg

China's PMI rises to 50.8 in may the highest level in 2014

BEIJING, June 1 (Xinhua) -- Growth in China's manufacturing sector continued to accelerate in May, rising to the highest level this year and adding to signs of a stabilizing economy, official data showed on Sunday.
The purchasing managers' index (PMI) increased to 50.8 in May, up from 50.4 in April, according to data released by the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing (CFLP).
The reading, which inched further above the 50-point level marking monthly expansion in factory activity, indicated a pickup in China's manufacturing sector and the economy as a whole.
This is the third consecutive monthly uptick in the widely watched data. The index, seen as one of the key indicators of economic performance, began to climb in March after three months of declines.
Zhang Liqun, a researcher at the Development Research Center of the State Council, pointed to the improving data as an indication that "the economy continued to stabilize, and this trend is becoming evident."
Eight among the 12 sub-indices in the PMI registered growth, with the sub-index for production edging up 0.3 to 52.8 after dipping 0.2 in the previous month, according to the NBS and the CFLP.
The sub-index for new orders, seen by analysts as the most important of all sub-indices, jumped by 1.1 to 52.3 in May after gaining 0.6 in April.
The sub-index for export orders, which slumped by 1.1 in April, reversed the declining trend and rose by 0.2 to 49.3.
The employment sub-index of the PMI dipped to 48.2 from April's 48.3, pointing to contraction in the job market.
The data came as a boon to the world's second-largest economy, which had seemed to be losing steam in the past few months.
China's economy grew at its weakest pace in 18 months in the first quarter, expanding by 7.4 percent, lower than the 7.5-percent growth rate target set by the central government earlier this year.
Cai Jin, deputy head of CFLP, said that the continuously rising PMI is a reflection of the positive changes in the Chinese economy.
In an interview with Xinhua, Cai pointed to the remarkable improvement in the sub-index for new orders, reflecting market demand, as an indication of a firm foundation for steady growth.
The official reading is also broadly in line with the HSBC/Markit PMI figure, released in late May, which rebounded sharply to 49.7 in May, hitting a five-month high.

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