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Monday 26 August 2013

American banks need further capital topping

It is important that stress tests are being conducted to asses the health of US banks, some of which are so large that they pose a systemic risk to the world's financial sector - EPA

 Fed's stress tests unveil flaws in planning process

LARGE US banks have lagged in terms of stress tests conducted by the Fed, pointing to possible further capital topping.

The Fed said in a paper released recenty that banks participating in regular “stress tests” had flaws in their capital planning processes, such as being unable to show that they considered all of the relevant risks to their businesses, said Reuters.

The paper pointed to problems such as modeling techniques that did not address bank-specific risks, loss and revenue projections that could not be replicated, or problems with governance of the planning process.

It is important that stress tests are being conducted to assess the health of US banks, some of which are so large that they pose a systemic risk to the world’s financial sector.

It is a tedious process but there is no choice; it is on the Fed to come up with increasingly sophisticated tools to conduct these stress tests.

It is not only in terms of stress tests that the US banks are lagging; progress has been slow in terms of adopting the Dodd-Frank Act.

Four years into the 2008 financial crisis, financial reform is still creeping along.

This is despite the collapse of a 100-year old bank, Lehman Brothers.

In fact, President Barack Obama had recently met with Fed Reserve chairman Ben Bernanke and other regulators, where he received an update and he also urged them to fully implement the Dodd-Frank Act.

Banks are said to be resentful of the Volcker rule that prohibits proprietary trading.

China has set up an agency to co-ordinate among other things, monetary and financial regulatory policies and help regulate financial products where jurisdiction overlaps.

It also coordinated information-sharing and statistics, an announcement on the Chinese government’s Web site said.

Withdrawal of stimulus packages, tightening of monetary and regulatory policies have impacted the financial sector severely.

Hence the timely setting up of such an agency which has no decision making powers; nevertheless the members of this advisory scheme have considerable weight.

The entity would be led by the central bank and would include representatives from banking, stock market and insurance regulators, as well as the State Administration of Foreign Exchange, said the International Herald Tribune.

In its aim towards sustainable financial reform, the Chinese Government hopes that this agency will help smoothen a lot of the hiccups on the way. This agency will have plenty of work ahead, considering the size of the Chinese financial sector.

Despite a 28.4% year-on-year decline in revenue from continuing operations to S$7.38mil from S$10.31mil, the Singapore Exchange is proposing to reduce the standard size of securities traded from 1,000 units to 100 units, and one unit eventually.

Besides improving liquidity and retail interest, the exchange hopes to make the larger, more well-established available to investors.

This will have positive implications for Malaysians trading on the shared platform.

With the change, the minimum needed to buy a SS$10 stock falls to S$1,000, or 100 units of S$10.

Currently, eight out of the 30 stocks in the benchmark Straits Times Index (STI), a collection of the most stable and liquid stocks, trade at S$10 or higher.

In view of capital outflows experienced by emerging markets, this is a timely move to capture back some of the investors’ money.

Contributed by Plain Speaking by Yap Leng Kuen
Columnist Yap Leng Kuen hopes to see more measures aimed at preventing outflows.

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Sunday 25 August 2013

Weibo brings public confidence in Bo Xilai's trial openness; Bo contradicts wife made up evidence

 
A mobile phone held by the photographer shows a photo from a court's microblog page of disgraced Chinese politician Bo Xilai standing trial (Reuters)

The widely watched trial of former senior official Bo Xilai was broadcast live on Weibo over the past two days, a surprise for many people at both home and abroad.

Pictures and video clips were shown. Transcripts from both the defense and prosecution were also released, including parts where Bo denied evidence presented by prosecutors.

This degree of transparency has not happened before. This will create a precedent that will bring lasting impact to the future trials of sensitive cases.

 This Weibo live feed has served as an important guarantee of a fair trial for Bo in accordance with the law. The live show has addressed various doubts and rumors in and outside China. It demonstrated that the authorities are ready to receive more public scrutiny.

This is not a political trial, nor a moral one. This will only be a trial by law. Even if someone might have personal goals, before the public eye, there is no way to achieve anything in this trial, anything that is not tolerated by the law.

Besides assuring a fair trial for Bo's case, the Weibo live feed has also convinced more people about China's sincere desire to improve the rule of law.

For a while, the Chinese public has been complaining about injustice in constant news reports of scandals or social issues.

The open and transparent trial of Bo provided a different picture to the public, which will significantly change the image of the judicial system.

The most important thing now is to have a fair trial for Bo's case, which will naturally boost the public's confidence.

We have seen a very good opening of this trial, with widespread applause and support from various walks of life.

Of course, the Weibo live feed is not without risks. Breaking news about Bo's scandal had already become a sensation. People have been expressing all kinds of opinions online, no matter how much they know of China's legal system. Foreign media have also shown great interest in covering this.

No matter what ruling the court eventually gives, there must be some different opinions from the public. The Weibo live feed provided great details of the trial, which will only add fuel to the public discussion about this case.

The development of the rule of law needs both the judicial authorities' hard work in each case and public support.

Major cases will not only avoid "political judgment," but also "public opinion judgment."

A fair trial needs to follow strict legal procedures, while under public scrutiny.

But in the end, it is the court that is responsible for giving a ruling according to the law.

Contributed by By Global Times

Bo Contradicts Wife as Chinese Media Stress Trial’s Transparency

Ousted Politburo member Bo Xilai suggested his wife made up evidence to avoid a death sentence and denied covering up a British man’s murder at a trial that state media said was proof no one’s above the law in China.

“I feel there are big discrepancies in the charges I have been accused of,” Bo said yesterday of the claim that he tried to hide his wife Gu Kailai’s involvement in Neil Heywood’s murder, according to a transcript released by the court. Gu was given a suspended death sentence last year for killing Heywood, and Bo is accused of bribery, embezzlement and abuse of power.

Bo Xilai's Wife Gu Kailai People watch a recorded testimony by Gu Kailai, wife of former Chinese Politburo member Bo Xilai, broadcast at a hotel near the Jinan Intermediate People's Court in Jinan on Aug. 23, 2013. Photographer: Mark Ralston/AFP/Getty Images
Aug. 22 (Bloomberg) -- Fraser Howie, a director at Newedge Singapore and co-author of "Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise," talks about former Politburo member Bo Xilai's trial. Bo went on trial today for bribery and embezzlement with China’s judiciary as much in the spotlight as the man at the center of the country’s most politically charged case in 30 years. Howie speaks from Singapore with Angie Lau on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Aug. 23 (Bloomberg) –- Bloomberg’s Stephen Engle reports on the start of day two of the Bo Xilai trial on Bloomberg Television’s “First Up.” (Source: Bloomberg) 
Aug. 23 (Bloomberg) –- Chinese University Of Hong Kong Adjunct Professor Willy Lam discusses the Bo Xilai trial with Rishaad Salamat on Bloomberg Television’s “On The Move Asia.” (Source: Bloomberg)

Bo, 64, mounted a defense that did an effective job of exposing gaps in the case against him, even though the Communist Party remains in control and a guilty verdict is almost certain, according toNicholas Bequelin, a Hong Kong-based researcher for Human Rights Watch. The case has broken with past political trials because the court is releasing live updates and detailed transcripts of the proceedings.

“It’s clear that the party is trying to give maximum legitimacy to the judiciary proceedings that will put an end to the Bo Xilai affair,’ Bequelin said. ‘‘But I think that the effect has been somewhat unexpected for the authorities. Bo is coming out looking pretty good.”

Party Secretary

Bo, a former commerce minister and party secretary of Chongqing municipality, was once considered a rising star in the Communist Party. His downfall in March of last year upended a once-a-decade leadership transition and shone a spotlight on corruption at the party’s highest levels.

Along with bribery and embezzlement charges that had been the focus since the trial began Aug. 22, Bo is charged with abuse of power for allegedly trying to cover up Gu’s role in Heywood’s 2011 murder. The court came to that charge yesterday, and the trial continues today.

Bo was removed as Chongqing party secretary and ousted from the Politburo last year after his former police chief in the city, Wang Lijun, fled to a U.S. consulate with evidence about his wife’s alleged involvement in Heywood’s death. Wang testified yesterday that Bo slapped him in the face when confronted with the possibility that Gu was responsible for the murder.

“My body twitched, and when he was done hitting me, he went back to sit at the table,” Wang testified yesterday. “I noticed my mouth was bleeding, and something was flowing out of my ear.”

Wang was convicted of “bending the law for selfish ends” and sentenced to 15 years in prison last year.

Central Part

Testimony by Gu has been a central part of the prosecution’s case, and included claims yesterday that Bo knew about a 5 million-yuan ($817,000) “consulting fee” given to the family by Wang Zhenggang, a former urban planning official in Dalian when Bo was the city mayor.

“I have feelings for Gu Kailai -- she is a relatively weak woman,” Bo said yesterday, according to the transcript. “By telling on someone else she could soon get out of the death penalty. Who could she accuse? All the accusations against me come from Gu Kailai.”

Police cordoned off the streets around the courthouse with metal barricades and yellow plastic tape, emptying out an area about the size of two football fields in what’s normally a crowded city center. The only people on the streets nearby were police in blue uniforms, while black sedans and white vans occasionally came and went from the court building.

Bo’s testimony gave details about his life with Gu, and why she and their son, Bo Guagua, moved abroad. Guagua went to the elite British boarding school Harrow and later to Oxford University, and then graduated from Harvard’s John F. Kennedy School of Government.

Had Affairs

“I did have extramarital affairs -- she was very angry about that,” Bo said, adding that he had no need to embezzle money because his wife had made millions of yuan as a lawyer. “So her bringing Guagua abroad was out of anger.”

In a country where the Communist Party maintains strict control of sensitive political trials, the state-run Global Times newspaper said in an editorial the decision to release updates on Weibo, Sina Corp.’s Twitter-like microblogging platform, “served as an important guarantee of a fair trial for Bo in accordance with the law.”

“This degree of transparency has not happened before,” the editorial said. “This will create a precedent that will bring lasting impact to the future trials of sensitive cases.”

The details revealed in the trial demonstrate that “no one is above the law,” the party’s flagship People’s Daily newspaper said. “In the fight against corruption we are after both flies and tigers.”

Hailed Openness

The official Xinhua News Agency said both domestic and foreign media have “hailed the openness and transparency” of the live blogging.

“The public also generally believe that this showcases the Communist Party of China’s resolve in combating corruption and that the move represents historic progress for the rule of law in China,” Xinhua said.

Allowing so much of Bo’s trial to be aired publicly is risky for the Communist Party because it may garner Bo new support from people impressed by his vigorous defense, according to Randy Peerenboom, a law professor at La Trobe University in Melbourne, Australia. That, in turn, may backfire on Bo because the party is still in control, he said.

“If it is the case that Bo Xilai has once again wandered off-script, and the leadership is worried that his cool performance under pressure has won him new admirers, then it is possible that he will receive a much harsher punishment than originally planned,” Peerenboom wrote in an e-mail. 

- Contributed by

Wife and police chief ‘in love triangle’

The most spectacular trial that China has ever witnessed closed with its biggest shock of all as Bo Xilai revealed a tragic love affair between his wife and his city Chongqing’s police chief.

Defiant until the end of his trial on charges of corruption and abuse of power, the 64-year-old fallen leader brushed his lawyers aside to make a final oration that displayed all the bravura that made him such a magnetic figure, and caused China’s other leaders such anxiety.

Behind the biggest drama to hit China's Communist Party since the protests in Tiananmen Square, Mr Bo said, was a story of how Chongqing’s police chief, Wang Lijun, had fallen inexorably in love with his wife, Gu Kailai.

 Gu Kailai, wife of ousted Chinese Communist Party Politburo member Bo Xilai
When Mr Bo caught the pair, he claimed, the police chief of the city he ruled had fled his wrath, running to the safety of the United States consulate in a city 160 miles away, a treason which led to their mutual downfall.

“Wang was secretly in love with Gu Kailai for a long time,” Mr Bo told the court, adding that the police chief had declared his passion in a love letter. “In the letter it said he had always had feelings for Kailai and he could not help himself. He even slapped himself in the face eight times.”
“You are acting crazily,” Gu told her suitor, according to Mr Bo. “No, I used to be crazy, but now I am sane,” Wang allegedly replied.

  Former police chief Wang Lijun (Reuters)
Mr Bo said Wang had visited his home every day because he was drawn to his wife, and suggested the relationship did not go unrequited.

“They had an extremely special relationship. I was fed up with it,” said Mr Bo. “Gu Kailai even brought Wang’s shoes into my house. I told Zhang Xiaojun (an aide) to get rid of them immediately”.

But when Mr Bo uncovered the relationship, his city’s police chief knew he had made a potentially fatal mistake. “He knew my character. He hurt my family. He hurt my feelings,” Mr Bo said.

There had long been rumours in Chongqing that the previously close bond between Mr Bo and Wang was shattered when they became tangled in a love triangle.

But the allegations by Mr Bo raise new and intriguing questions about the planning of, and the motive for, the murder of Neil Heywood. Wang had previously confessed that he helped Gu plan Mr Heywood’s killing.

Mr Bo’s tale of mad passion caused an instant sensation on the Chinese internet, with one popular post suggesting that the lovers were doomed from the start: Gu was a Scorpio while Wang was a Capricorn and therefore incompatible.

Before revealing the drama in his household, Mr Bo had earlier ridiculed the prosecution’s closing statement, saying: “Even the lowest level television soap cannot have this kind of plot,” he said.

Responding to accusations that he must have been aware of the luxurious lifestyle his family was living, under his nose, Mr Bo asked: “Is Gu Kailai a civilised woman or not?

“Did she want me to love her or not? Would she have come and bothered me with these trifles every day? I was the governor of Liaoning province,” he added.

To accusations that his 25-year-old son, Guagua, spent huge sums travelling the world and carousing, Mr Bo said: “If Guagua kept asking for money for fancy watches and cars and international travel, if he wanted us to pay for his friends and owed the bank huge sums of money, would I have loved such a son?”.

Instead, Mr Bo said, his family was so frugal that he was still wore padded winter trousers that his mother had bought for him in the 1960s.

Mr Bo also repeated that much of the evidence against him had been coerced.

“All of the written confessions I signed before were made against my will,” he said, adding that he had hoped, by confessing, to win rehabilitation.

“I had a hope deep in my heart that I would not be expelled from the Party, I would keep membership and I would keep my political life.”

It was unclear whether Mr Bo’s impressive rhetoric would win him more public support, with hundreds of thousands of people reading his statement on the live-feed from court.

But it did little to help his legal case, and his lawyers even admitted that it was only after 2005, when Mr Bo was promoted to higher office, that corruption had stopped. “He woke up,” they said.

Mr Bo’s defiance may also cost him dearly, in the form of a tougher sentence.

“He not only denied crimes that have been fully backed up with solid evidence, but he also recanted his earlier testimony,” the prosecutors said. “His attitude is to refuse to confess wrongdoing... he should receive harsh punishment.”

If convicted, Mr Bo technically faces the death penalty, although a member of China’s Communist Politburo has never been executed.

As he made his final statement, perhaps the last statement he will ever make in public, Mr Bo said: “I know I am not a perfect man, I am subjective and easily angered. I have made some serious mistakes and problems. I failed to manage my family.”

The court will reconvene at a later date to reveal the verdict.

- Contributed by Malcolm Moore, Jinan  Telegraph UK


Saturday 24 August 2013

China's Bo Xilai on trial

JINAN, Aug. 23 -- Jinan Intermediate People's Court in east China's Shandong Province continued to hear the case of bribery, embezzlement and abuse of power involving Bo Xilai for a second day on Friday.
 


The 64-year-old Bo is former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and former member of the CPC Central Committee Political Bureau.

Prosecutors accuse Bo accepted bribes worth about 21.8 million yuan (about 3.5 million U.S. dollars) from businessmen Tang Xiaolin and Xu Ming and embezzled five million yuan in public funds from the Dalian municipal government. He was also accused of abusing power when dealing with his wife Bogu Kailai's murder case and the defection of his associate, Wang Lijun, in 2012.


On the second day of the trial, prosecutors presented evidence that Bo accepted a large sum of money and property from Xu Ming through his wife, Bogu Kailai, and his son, Bo Guagua.

In the morning session prosecutors presented documentary evidence and played a video recording of Bogu Kailai's testimony on Aug. 10 this year.

Prosecutors also read testimony by Bogu Kailai and Frenchman Patrick Devillers.

Video and audio evidence shown in court indicated that Xu Ming provided funds for Bogu Kailai to buy a villa in France worth over 2.32 million Euros (16.25 million yuan), and that Bo Xilai was aware of this.

In the afternoon session, evidence included testimony of witnesses including Zhang Xiaojun, photographs of material evidence, confessions and the handwritten confessions of the defendant, proving that through his wife and son, Bo received almost 4.43 million yuan from Xu Ming, to pay for international and domestic air tickets, accommodations and travelling expenses, to pay off credit card debt, and buy a Segway scooter.

Prosecutors, the defendant and his lawyers examined the evidence.

Facing key facts of the charges, Bo defended that the evidence was irrelevant, saying he had only a vague impression of amounts and no one had told him exactly how much money was spent. His lawyers expressed views on the truth of witnesses' testimonies and the legality of the documentary evidence.

Prosecutor responded directly, pointing out that the defendant had expressed numerous conflicting views on key facts during his defense.

Prosecutors said that the evidence presented in court was taken legally from clear sources and should be examined comprehensively in the context of the entire case.

Wang Zhenggang, then director of the Dalian municipal bureau of urban and rural planning and land, appeared in the afternoon to testify on embezzlement charge against Bo.

Wang was handled in a separate case.

The court will continue to hear the case on Saturday to maintain the continuity of the trial, as agreed by prosecutors, the defendant and his lawyers. 


- Contributed by DuMingming、Liang Jun

Bo's trial updated live on microblog
A woman views the Chinese social media website Weibo at a cafe in Beijing on April 2, 2012 (AFP/File, Mark Ralston)



The highly anticipated trial of former politburo member Bo Xilai began Thursday, surprisingly with an almost unprecedented flood of real-time information about the proceedings.

The Jinan Intermediate People’s Court used Weibo, a popular Twitter-like microblog service, to deliver a running account of the trial since its start. The number of followers of its microblog page has jumped from less than 10,000 on Wednesday to over 300,000 by 7 pm Thursday. The court also arranged a media lobby at a nearby hotel, to provide live feed of trial details to reporters.

This is the first time details of a trial of a senior Chinese official have been released real-time to the public. In the past, such high level court trials took place behind closed doors, with details being released only after sentencing.

Bo calls wife mad after she testifies against him 

JINAN, China (Reuters) - Fallen Chinese politician Bo Xilai called his wife insane after she testified at his landmark trial on Friday that he knew of money and a villa in the French Riviera that prosecutors say were given to the couple by a businessman friend.

The video and written testimony by Gu Kailai directly contradicted Bo's robust defence on Thursday, and appear to set him up to be found guilty in China's most dramatic trial since the Gang of Four were dethroned in 1976 at the end of the Cultural Revolution.

"He should know about it all," Gu said in a video recording shown in court and posted on the court's microblog, when asked whether Bo knew that she and their son, Bo Guagua, had received money from plastics-to-property entrepreneur Xu Ming.

Bo dismissed Gu's testimony as the ravings of a madwoman.

"Bogu Kailai has changed, she's insane, often tells lies," Bo said, according to transcripts on the court microblog, using Gu's official but rarely used name. "Under the circumstances of her mental illness, the investigators placed huge pressure on her to expose me.

"Her testimony as far as I am concerned, was (given) under psychological pressure, and driven by (hope of) a reduced sentence," he added.

Gu has been jailed for the murder of British businessman Neil Heywood in November 2011, the crime which eventually led to Bo's downfall.

The businessman Xu, who is also in custody, was once close to the Bo family, but also testified against him on Thursday, according to the transcripts. Foreign reporters were not allowed into the court.

Bo, the 64-year-old former Communist Party chief of Chongqing metropolis, has been charged with illegally taking almost 27 million yuan (2.82 million pounds), corruption and abuse of power. Of that amount, about 21.8 million yuan came from Xu and another businessman Tang Xiaolin, the court said, citing the indictment.

Bo was a rising star in China's leadership circles when his career was stopped short last year by the scandal involving Gu.

Supporters of Bo's Maoist-themed social programmes say he lost out in a power struggle with capitalist-leaning reformists in Beijing, exposing divisions within the ruling party as well as Chinese society.

Last week, two sources told Reuters that Gu would only testify against her husband if a deal had been reached with authorities to protect their son.

A deal in which Bo can be swiftly convicted and sent to jail, sparing him a death penalty and with no repercussions for his son, would be in the interest of China's leadership, which wants the trial to be concluded without causing open friction between Bo's followers and critics.

On Thursday, observers said the court proceedings were probably scripted and that Bo could receive a pre-arranged sentence in exchange for limited outbursts that would show that the trial was fair, appeasing his followers.

The trial will continue for a third day on Saturday, the court said, despite expectations it could last just a single day.

VILLA IN NICE

In written testimony, Gu said she had shown Bo the graphics and slideshows for the design of a villa in Nice, France that was paid for by Xu. Bo asked her about the slideshows and according to Gu, she told Bo about Xu's involvement.

"Therefore he knew that I asked Xu Ming to pay for this villa in France," Gu said in her written statement.

In the poorly shot video, Gu appeared soft-spoken and composed as she was questioned by a worker from the state prosecutor's office. She laughed when asked whether she had been coerced into giving evidence.

Gu did not link Bo with Heywood's murder, but said he was aware she considered the Briton a threat to their son. According to testimony at Gu's trial, she killed Heywood because he had threatened Guagua after a business dispute with Gu.

Gu said Bo was also aware of her fears about the safety of Guagua, who is now in the United States
preparing for a law degree at Columbia University. Gu said she was afraid Guagua "would be kidnapped and killed in America".

"In 2011, Guagua's personal safety was threatened and Bo Xilai understood this," she said in her written testimony.

"We drew up a blacklist of suspicious people. One of them was Neil Heywood. I explained all of this to Bo Xilai."

Bo could face the death sentence, though a suspended death sentence is more likely, which effectively means life imprisonment, or a 20-year term.

Contributed by John Ruwitch - The Star (Additional reporting by Judy Hua in JINAN and Sui-Lee Wee, Ben Blanchard and Hui Li in BEIJING, Writing by Sui-Lee Wee; Editing by Raju Gopalakrishnan)

Bo's trial updated live on microblog
 
Related post:
Weibo brings public confidence in Bo Xilai's trial openness; Bo contradicts wife made up evidence
 China's content-rich microblogs

China's content-rich microblogs

Sites like Sina Weibo can even get Western figures and celebrities, like boxer Mike Tyson, to come aboard.


WHILE Twitter is blocked in China, there are local microblogging sites to keep me informed and entertained.

Among the providers for microblogging service include Sina, Tencent, Xinhua, Souhu, People’s, Phoenix, NetEase and more.

Sina tops the list with 500 million registered users and 46.29 million daily active users as of December 2012.

Its popularity is proven with public and media using “Weibo” to refer to its microblogging site, although Weibo stands for microblog in general.

(Twitter has over 200 million active users churning out 400 million tweets a day, according to its blog post in March this year.)

The Chinese microblogging sites have similar basic features as their US counterpart, such as tagging other users with the symbol @, trending topics with hashtags and posting within an allowed character limit.

But what sets Weibo apart from Twitter is the rich media content.

Besides photos and animated GIF, some Weibo allow users to embed video and music files, and start a poll in their posts.

These elements have enhanced the Weibo surfing experience and created an entertaining platform for all.

A unique feature on Sina Weibo is the charity platform. Users can initiate a charitable cause, pledge donation, sign up as volunteers or simply repost a cause.

I am drawn to Sina Weibo for one simple reason – you can find almost everyone on it, from celebrities to writers, and government departments to restaurants.

Many of the official accounts are well-maintained, providing frequent and useful updates.

While Chinese president Xi Jinping does not have an official account, there is an account dubbed “Xuexi Fensituan” (Learning from Xi Fan Club) dedicated to disseminate news and photos of his activities.

The account owner has denied speculations that the account was a publicity effort, claiming that he was only a supporter.

Sina Weibo, which was launched in August 2009, is celebrating its fourth anniversary this month.

In an unaudited financial report for the second quarter of 2013, Sina Corporation announced a 209% year-on-year growth for its Weibo advertising revenue, which amounted to US$30mil (RM98.74mil).
The non-advertising revenues also increased from US$23.8mil (RM79mil) in the same period last year to US$32.2mil (RM106.9mil).

Back in April, China’s e-commerce giant Alibaba invested US$586mil (RM1.9bil) to purchase an 18% stake in Sina Weibo. This deal valued Sina Weibo at US$3.3bil (RM10.86bil).

The population on Weibo continued to beckon Western figures and celebrities to come on board to reach out to their Chinese fans.

The latest to join Sina Weibo was retired American boxer Mike Tyson, whose username is “Quanwang Taisen” (King of Boxing Tyson).

After greeting Chinese fans on his maiden post on Monday, he went on to ask who is the best fighter in China.

Amid the genuine replies (Donnie Yan and Jackie Chan, for instance) came an answer that had everyone in stitches – chengguan.

The term refers to the city management officers who are often labelled as abusive for getting involved in physical brawls with street vendors.

A clueless Tyson then asked, “Who is Chengguan? A tough man? I’ve never heard it (sic).”

He mentioned it again in a post later, “So many guys talking about chengguan as a great fighter? Still not a clue about him … All I’ve heard about are Jet Li, Jackie Chan, Donnie Yen, and wait wait, the Chinese dama (middle-aged women)!”

(Local news reports said the term Chinese dama became a popular term when the women rushed to snatch up gold.)

Needless to say, Tyson’s Weibo went viral, attracting 200,000 followers in just three days.

Although Sina Weibo has a reputation for self-censorship – posts with sensitive topics or keywords are deleted – it remains largely as a platform for freedom of expression.

It was even described as China’s Hyde Park in a report by Xinhua in December 2011: “… An open space where people feel free to participate in public affairs”.

As such, Weibo is the place to gauge public sentiments and there are calls lately to urge opinion leaders to observe their social responsibility on social media network.

Contributed by Tho Xin Yi
  • Tho Xin Yi (thoxinyi@thestar.com.my) sees Weibo as a tool to get first-hand news and gain insight into the Chinese society. She follows 329 users on Sina Weibo.

Friday 23 August 2013

Serious deficits that cannot be financed could lead to bigger global crisis!

A bigger global crisis possible


GEORGE TOWN: A global financial crisis bigger than the one in 2008 is conceivable in five to 10 years.

Value Partners Group chairman and co-investment officer Cheah Cheng Hye said the crisis, which would not be V-shaped in nature, would bring about capital flights, volatile markets, rising inflation and social unrest.

“The global financial crisis would have to do with the very serious deficits that cannot be financed.

Developed and developing countries have over the years accumulated such deficits by making promises that cannot be realised in order to get re-elected.

“These deficits would sow the seeds of future social and political unrest,” he said at a public lecture entitled From Journalist to Fund Manager, which was officiated by Penang Chief Minister Lim Guan Eng.

Also present was Penang Institute chief executive officer Zairil Khir Johari.

On Malaysia, Cheah said Value Partners was not bullish about the country.

“Malaysia’s Government and household debts are higher than those in Indonesia, China and Thailand. Half of the country’s government bonds are held by foreigners, who would be the first to run in a crisis.

“The Malaysian workforce is now less productive than the workforce in Thailand and the Philippines. Malaysia is also importing more oil than selling it,” he said.

On making investments, Cheah advised investors to have well-diversified portfolios.

“They should have investments in gold, real estate and a high level of cash of at least 25% of their savings to prepare for future uncertainties,” he said.

Cheah attributes his success to being at the right place at the right time more than the decisions he chose to undertake.

Born in Penang, Cheah, 59, has been dubbed the “Warren Buffett of the East” by the media in Hong Kong.

A Penang Free School boy, Cheah had worked as a journalist in The Star in the early 1970s.