Articles

Thursday, June 21, 2007

China investors pick stocks over savings

China investors pick stocks over savings

BEIJING - RECORD numbers of Chinese plan to enter the bullish stock market and fewer than ever are choosing to keep their money in the bank or spend their cash, according to a central bank survey released yesterday.

It said that 40.2 per cent of 20,000 respondents in 50 cities intended to buy either shares or mutual funds, dwarfing the previous record of 30.3 per cent set in the previous survey, conducted in the first quarter.

Only 26.3 per cent of those surveyed in the latter half of May still preferred to park their money in banks - the lowest proportion in six years, the People's Bank of China said on its website (www.pbc.gov.cn).

That extends a drop which began in the third quarter of last year, even though China has increased benchmark deposit rates three times since April last year.

The central bank said that by the second quarter of this year, bank deposits accounted for 52.3 per cent of households' financial assets, down from 68 per cent at the end of 2005.

Moreover, households' propensity to consume also dropped, with a record-low 19.5 per cent of households saying that they were planning to purchase big-ticket items.

REUTERS

Chinese funds, brokers can now buy HK shares

Chinese funds, brokers can now buy HK shares

BEIJING - CHINA'S securities regulator said yesterday it would allow mutual funds and securities firms to invest in Hong Kong equities for the first time under the Qualified Domestic Institutional Investor (QDII) scheme.

The move, announced on the China Securities Regulatory Commission (CSRC) website, comes weeks after the banking regulator permitted Chinese banks to do the same.

The CSRC statement listed a range of permitted investments, including equities, in those jurisdictions whose supervisory authorities have signed a memorandum of understanding with their Chinese counterparts.

In the case of banks, only Hong Kong meets this requirement for now.

It was not immediately clear whether the CSRC has signed agreements with securities supervisors elsewhere.

Since the QDII scheme was launched in April last year as a way of spurring capital outflows and trimming the country's balance-of-payments surplus, banks and fund managers have been restricted to investing in overseas fixed-income and money market products on behalf of clients.

REUTERS

Monday, June 18, 2007

China fines 8 banks for illicit stock loans

China fines 8 banks for illicit stock loans
Crackdown points to Beijing's worries over financial risks from market boom
BEIJING - CHINA'S banking regulator said yesterday that it had punished eight bank branches for lending money that was illicitly used for stock market and property sector investments.

This move highlights official concerns over the financial risks from the stock market boom.

In a statement on its website, the China Banking Regulatory Commission (CBRC) said it had uncovered two cases, amounting to about five billion yuan (S$1 billion) in irregularities, during an investigation that began early this year.

The branches involved belonged to Bank of Communications, China Merchants Bank, Industrial & Commercial Bank of China, Bank of China, Industrial Bank, China Citic Bank, Bank of Beijing and Shenzhen Development Bank, the regulator said.

'The announcement indicates that the government is still worried about a possible overheated stock market as the index continues to rise quickly above the 4,000-point level,' said Shanghai Securities senior analyst Zheng Weigang.

The CBRC said that in one case, China Nuclear Engineering & Construction had borrowed 2.4 billion yuan from the Bank of Communications and the Bank of Beijing since 2001, in the name of working capital.

It misused about 87 per cent of the loans for property and stock investment, the regulator said, concluding that the two bank branches had not carried out sufficient due diligence. It punished 18 executives involved in the lending with penalties that included warnings and fines.

In another case, China Shipping (Group) borrowed 2.7 billion yuan from six Shanghai bank branches in the name of working capital from June last year, but the group used at least 2.4 billion yuan of the loan to speculate on stocks, the watchdog said.

The CBRC fined the Dongdaming branch of China Merchants Bank 1.69 million yuan and banned it from corporate lending for half a year; the other five were fined up to 500,000 yuan each.

It also said that the State- owned Assets Supervision and Administration Commission would punish China Nuclear and China Shipping.

In its statement, the banking regulator stressed that the cases were isolated and did not reflect widespread illicit lending in the banking sector for the purpose of punting on stocks, echoing comments made by its chairman Liu Mingkang, earlier this month.

The Shanghai Composite Index closed 2.92 per cent higher yesterday at 4,253.35, extending a rebound after the index fell sharply late last month on the announcement of a tripling of the stamp tax.

'The authorities are expected to continue using mild steps such as the announcements of penalties for irregularities to remind the market of official concerns, but they are unlikely to take another big step such as a tax change to cool the market,' said Mr Zheng.

REUTERS

Sunday, June 17, 2007

Indoor temperature ideally 22.5-25.5 deg C

Indoor temperature ideally 22.5-25.5 deg C


WE REFER to the letter, 'Beat the heat but tune down the air-con' by Mr Vincent Ng Teck Soon (ST, June 8) and would like to thank the writer for his feedback.

We agree it is a waste of energy, as well as money, to over-cool buildings. Further, building occupants suffer unnecessary discomfort from the low indoor temperature.

The Singapore Standard CP 13 (Code of Practice for mechanical ventilation and air-conditioning in buildings) specifies that thermal comfort is achieved when the indoor temperature is maintained between 22.5 and 25.5 deg C, with average relative humidity not exceeding 70 per cent. We recommend the upper end of this range for energy efficiency.

By raising the indoor air-conditioning temperature by just 1 deg C, we can save up to 4 per cent of air-conditioning cooling energy, which results in energy and cost savings for building owners.

Building owners and managers should monitor the indoor temperature of their buildings to avoid over-cooling.

To assist building owners and managers to evaluate their energy consumption and identify measures to save energy and money, the National Environment Agency (NEA) administers an Energy Efficiency Improvement Assistance Scheme which provides financial assistance to building owners to carry out an energy audit of their buildings or facilities.

Building owners can apply for funding grants of up to 50 per cent of the cost of engaging an energy services company to undertake energy audits to improve the energy efficiency of their buildings.

Energy efficiency is also an important criterion under the Building & Construction Authority (BCA) Green Mark certification.

Under this criterion, the BCA awards points to a building whose orientation, facade and air-conditioning system are designed to minimise energy consumption without compromising indoor conditions for thermal comfort.

To promote energy conservation and environmental sustainability, the BCA plans to impose minimum requirements that are equivalent to Green Mark-certified standards for new buildings and existing buildings that undergo major retrofitting.

Friday, June 15, 2007

It's cool to speak Mandarin in Sudan

It's cool to speak Mandarin in Sudan
Students taking up the language because it is a ticket to good jobs
SAY IT IN CHINESE: A student from the Nairobi Confucius Institute displaying her calligraphy during a language competition in the Kenyan capital on Wednesday. -- XINHUA
KHARTOUM (SUDAN) - PRODUCTS, companies and restaurants from China have flooded into Sudan in recent years, and now the Chinese language has become the latest import.

During a recent language competition, Khartoum University sounded like a province in China.

First, the students had to compete to see who was the most proficient in Chinese. Then, they had to prove they could sing in Mandarin, with many of them ending up sounding atrocious.

More than one billion people around the world speak the Chinese language as their native tongue.

With China's economy rising fast, the country's government believes that 100 million foreigners will soon be speaking their language.

Among them will be Miss Ayat, a student in Khartoum.

'China is now a big country economically. There are lots of Chinese companies in Sudan, so there is a big choice for us to work for the Chinese as translators,' she said, describing Chinese as a 'beautiful language'.

Khartoum University professor Tong Xiaofeng said that most of the Sudanese students in his class were motivated by money.

'Chinese is mostly welcome because nearly 100 per cent of the students who graduate from the department get jobs with Chinese companies,' he said, specifically in the oil industry, telecommunications and as travel agents.

China's oil interests in Sudan, already substantial, continue to grow.

Sudan sells about 60 per cent of its oil to China, while Sudanese imports currently make up 5 per cent of China's oil.

The China National Petroleum Corp owns 40 per cent of the Greater Nile Petroleum Operating Co, the main player in Sudan.

In addition, another Chinese company is constructing a 1,500km pipeline to Port Sudan on the Red Sea, where the Chinese are also building a tanker terminal.

Elsewhere in Africa, the Chinese language is also getting increasingly popular as China's economic presence and clout grows.

According to the Office of the Chinese Language Council International, there are currently six Confucius Institutes and 20 Chinese teaching posts in 11 African countries.

Mr Gao Lianshan, a teacher who worked at Kenya's Egerton University, told China's People's Daily paper that the craze has also hit Kenya.

He said more and more Kenyans believe that by learning Chinese, they will have a more promising future.

The Chinese government is all for using language as a way of spreading its influence around the world.

By next year, an estimated 120,000 students will travel from abroad to go to universities in China, up from 8,000 less than a decade ago.

China will also provide scholarships for good students to study at its universities.

Mr Halid Sulema is one of the students eyeing a scholarship.

'When I graduate, I want to go to China and do my master's there,' he said.

'I hope to get a good job with a Chinese company in the end.'

BBC News

Post your comments online at www.straitstimes.com


LANGUAGE OF MONEY

'China is now a big country economically. There are lots of Chinese companies in Sudan, so there is a big choice for us to work for the Chinese as translators.'
MISS AYAT, a student in Khartoum

Wages up 5% as job market powers ahead

Wages up 5% as job market powers ahead
Rise in first quarter is best pay increase in 2 years; spike unlikely to ease off soon
By Sue-Ann Chia
WORKERS in Singapore are going home with fatter wallets as the job market continues to power ahead.

Their wages rose by five per cent in the first three months of this year, the best pay increase in two years.

Official figures released yesterday show jobs that saw the best pay rises were in the booming real estate and financial services industries.

The spike in wages is unlikely to ease off in the immediate future as the talent shortage is expected to continue with more jobs created.

There were 32,200 job vacancies as at the end of March, 30 per cent more than a year ago, according to the Manpower Ministry's labour report for this year's first three months.

Almost half of them are for white-collar workers, or the group commonly tagged as professionals, managers, executives and technicians (PMETs).

Hanging over this sunny job horizon, however, is a dark cloud: Productivity is slipping - it fell by 1.6 per cent, the second drop in a row. In the previous quarter, it declined by 0.7 per cent.

The reason is that companies are hiring in anticipation of continued good times.

Last month, the National Wages Council had warned employers to ensure that wages do not race ahead of productivity.

But for now, the sliding productivity is no cause for alarm, said labour economist Shandre Thangavelu from the National University of Singapore.

However, he added: 'If it continues to fall, it will have an impact on Singapore's competitiveness and growth.'

Dr Shandre also foresees wage increases easing as more job seekers enter the labour market.

In this first quarter, 49,400 new jobs were created, enticing more people to start looking for work again.

In all, 17,700 more Singaporeans and permanent residents entered the job market in the first quarter.

The rise is the steepest in two years, during which the average annual increase is 10,700 job seekers.

With more people looking for jobs, the unemployment rate rose to 2.9 per cent in March, when about 77,000 people were jobless. Last December, the rate was 2.6 per cent.

But the pool of people without a job for at least six months remained stable, hovering around 10,100. They form 0.5 per cent of the labour force. These long-term unemployed folk are typically the lower-educated.

They are unlikely to fill most of the 32,200 job vacancies in the first three months of this year.

In contrast, the PMETs are doing better in getting rehired within six months of being retrenched.

The best showing was among university graduates. Their re-employment rate, compared to workers with other qualifications, is 67.6 per cent. This means almost seven out of 10 got a job within six months.

The number laid off in the first quarter is 1,964, compared to 3,653 a year ago.

The re-employment rate by age group shows the 30-somethings topping the charts, at 65.1 per cent.

The ministry report also said that only those in their 40s, compared to other age groups, saw a higher re-employment rate (61.8 per cent) than three months earlier.

Mr Allan Lim, 51, found work in March, five months after being retrenched.

But it was not an easy job search. He approached recruitment agencies and went for several walk-in interviews.

'I had to moderate my expectations, which helped to get me a job,' said the computer software consultant. His pay now is about 60 per cent of his old salary.

Thursday, June 14, 2007

Princes break silence on Di's death

Princes break silence on Di's death
NOT KEEPING MUM: In their most candid interview, and their first for US television, Princes Harry (left) and William say the late Princess Diana had 'always been there' for them. -- PHOTO: AP


LOS ANGELES - Britain's Prince Harry said in a United States interview with his brother that no one will ever know the truth about the death of his mother, Princess Diana, in a car crash in a Paris tunnel almost a decade ago.

In an interview with NBC's Matt Lauer to air next Monday on the Today show and Dateline NBC, the prince said: 'Whatever happened in that tunnel... you know, no one will ever know. And I'm sure people will always think about that the whole time... I'll never stop wondering about that.'

Harry, 22, and his brother William, 24, tried to describe the impact of their mother's death on their lives.

Princess Diana died on Aug 31, 1997 after a high-speed car crash in a Paris tunnel along with her boyfriend, Dodi Al-Fayed, and their driver.

Both princes said in the interview conducted last month that in the decade since their mother's death, time had passed 'really, really slowly'.

Harry said: 'She's always been a constant reminder to both of us and everybody else. And therefore I think when you're being reminded about it, it does take a lot longer and it's a lot slower.'

William added that not a day goes by that he doesn't think about her and her death.

Lauer said Diana wanted her sons to live lives as normal as possible and asked the princes if they thought they had.

Harry answered: 'I think she'd be happy in the way that we're going about it but slightly unhappy about the way the other people were going about it, as in saying, 'Look, you're not normal so stop trying to be normal,' which is very much what we get a lot.'

He added: 'Within our private life and within certain other parts of our life we want to be as normal as possible. And yes it's hard - because to a certain respect we never will be normal.'

Asked what they would do if they weren't princes, William joked that when he was younger, he wanted to be a police officer 'but not now'. Then he added that he'd like to fly helicopters, 'you know, working for the UN maybe, or something like that'.

When Lauer asked Harry, William cut in and said, amid laughter: 'He'd probably play computer games and drink beer.'

But Harry said he'd like to live in Africa, be involved in humanitarian activities and work as a safari guide.

In their mother's honour, the two princes have organised a concert for July 1, which would have been her 46th birthday.

Reuters

Beat the heat

Beat the heat
With skin savers, frizz-free hair and melt-proof make-up, you can enjoy the sun without the burn
Hot enough for you?: Take care of your skin before and after you go for a dip in the pool. Lycra monokini by CC Swimwear from Egg3, 33 Erksine Road, 01-10/11
We're constantly barraged by warnings about how going out in the sun is damaging to our skin.

But let's face it, we live in the tropics. Short of turning ourselves into hermits, there is just no way of escaping the sun.

Summer in Singapore is all year round, and it gets hotter in the middle of the year.

But you can take it all in your stride. We've summed up the golden rules for every tropical babe to live by:

- For skin, moisturise, moisturise, moisturise.

- For complexion, load up on protection when you go outdoors.

- For hair, work with your natural texture, don't fight it.

- For make-up, pare down to basics - less gunk to clean up and less to touch up.

Urban brings you the beauty essentials and cheat tricks from the experts to conquer the hot weather.

neosta@sph.com.sg


SUN DAYS

Unless you're set on being cooped up indoors until night falls, there's no escaping the sun.

Dr David Orientreich, American skincare brand Clinique's guiding dermatologist, says: 'The sun accounts for approximately 90 per cent of our aged appearance, and only 10 per cent is due to the actual number of years we've lived.'

So minimising your daily dose of incidental sun exposure would help you reduce the largest cause of ageing.

Dr J.J. Chua, a plastic surgeon in private practice from Mount Elizabeth Hospital, says he sees an increase of at least 10 per cent more patients each year with premature ageing due to harmful UV rays.

While it's true that you need vitamin D for healthy bones, he says you need only a little sun exposure to get your daily dose.

He says: 'Just sitting by the window for a few minutes is enough. Vitamin D can also be found in many dairy products and eggs. This fat-soluble vitamin can be accumulated so there's no need for a daily dose too, unlike vitamin C.'

The only safe way to tan, he stresses, is a fake one - produced with bronzing make-up, self- tanners or tanning mists.

How real it looks, says freelance make-up artist Lynette Leong, depends on the formula.

She recommends using powder bronzers on the face as it tends to look less blotchy than cream ones.

Another tip: Go for golden brown shades as these flatter Asian skin more with their yellow pigments.

SKIN: Today’s sunscreens are lighter, more comfortable on the skin and don’t clog pores. Some even offer DNA protection or whitening functions
Offers sun protection, whitening and hydration, so you can stay out in the sun without baking your skin. Bonus: This absorbs fast with no sticky residue or oiliness.
Nivea Sun Whitening Sun Lotion SPF50, $17.90 and $23.90, from Guardian and Watsons pharmacies
Allows you to tan without wreaking UV havoc on skin.
Sisley Age Minimizing Sun Protection SPF15, $220, from Metro Paragon
Disappears fast into skin and promises to minimise redness and irritation.
Clarins Sunscreen Cream High Protection SPF30, $45, from Level 1 Tangs Orchard
Light and translucent, this sebum- and water-resistant sunscreen also promises to prevent DNA damage in cells and doubles as a make-up base.
Shiseido Anessa Perfect UV Sunscreen EX SPF50 PA+++, $57, from Level 1 Takashimaya
For fuss-free application, these individually packed sunscreen sheets for face and body are great to take along anywhere.
Daily Sun Protection Wipes SPF30+, $19 for five wipes, from Apothecary + Co., B1-21 Robinsons Raffles City
More damage control tips to stay safe in the heat

- Schedule outdoor sports before 9am and after 5pm. UV rays are at work even on a cloudy day.

- Wear hats and sunglasses and use umbrellas, which offer more protection than sun blocks. Look for sunglasses with UV coating, not just dark lenses.

- Reapply sun block every four hours. If you’re beach- or pool-side, do it every two hours or every time you come out of the water.

- Use sunscreens of at least SPF30 (indicative of UVB protection) and PA+++ (indicative of UVA buffer).

SKIN: The only safe tan is a fake one. Use a self-tanner or bronzing make-up to get yourself beach-ready
This liquid highlighter is sheer and can be applied on the cheekbones or all over for a healthy sheen.
Clinique Up-lighting Liquid Illuminator, $50 (available at counters later this month)
The American make-up brand’s best-selling bronzing powder now has sun filters in it.
Stila Sun Bronzing Powder SPF15, $40, from Level 1 Tangs Orchard
So easy to use, it works like a moisturiser and turns skin golden, evenly.
Shiseido Daily Bronze Moisturizing Emulsion For Face/Body, $49


REHYDRATE, REBALANCE

The sun is out and so are the zits. Heat and humidity guarantee that oil glands on your face shift into high gear - the perfect environment for bacterial growth, clogged pores and unsightly pimples.

One mistake people make is to wash their faces more often, says freelance facialist Cheryl Oh.

'They think by washing frequently, they're getting rid of the grease. But more often than not, it dries up the skin,' she says.

She recommends cleansing the face no more than twice a day, and using blotting paper and oil-control products to keep faces grease-free in between. If you really must wash often, switch to a gentle moisturing cleanser formulated for sensitive skin as they are milder.

Oil-control products are also a must-have. These usually have mattifying powders or mild astringents to squelch the grease.

It's important not to let grease levels get out of hand as it could cause pores to swell up, making skin look coarser and prone to blackheads.

She recommends using a gentle scrub to get rid of dead skin cells and dirt, so pores stay clean and small.

Dr J.J. Chua, a plastic surgeon in private practice, also recommends the use of products with fruit acids, vitamin A derivatives and vitamin C to help keep pore sizes healthy and refined.

Damage control

Plastic surgeon J.J. Chua from Mount Elizabeth Hospital gives tips for sunburnt skin:

- Take aspirin or a painkiller immediately - this will bring down the inflammation.

- Use only soothing moisturisers. Forget intensive treatment products such as whitening masks or products with alpha hydroxy. 'It's like applying lemon to an open wound - it will smart,' he says.

SKIN: These wonders help to quench skin, purge impurities and return conditions to normal
Deep moisturising for tired and wrinkled peepers, this is the French brand’s first eye product to have sun filters.
Dior HydraAction Visible Defence Hydra-Protective Eye Cream SPF20, $72, from Level 1 Robinsons Raffles City
This non-greasy oil-based cleanser takes off make-up in a jiffy, gets the gunk out of pores and supposedly tightens them too.
Kose Seikisho Cool Cleansing Gel, $34, from Level 1 Isetan Scotts and Robinsons Raffles City
Non-comedogenic and free of mineral oil and lanolin (all potentially skin irritants), this uses bamboo powder and papain to exfoliate gently.
Clinelle Professional Care Skin Smoothing Scrub, $15.55, from Watsons and National University Hospital Pharmacy
Dries up the zit, calms inflammation and redness in skin and tightens pores too.
Clarins Stop Blemish Control, $35 for two roll-on sticks, from Level 1 Tangs Orchard


KEYS TO TAMED LOCKS

For great hair that beats the heat and humidity, work with your hair texture, not against it, says Dennis Seah, a freelance hairstylist from Mosche Grand at Grand Hyatt hotel.

That means if you have straight hair, slick on a little leave-in conditioner and wear it loose and down.

If you have curly hair, use a curl-enhancing product to give your locks more definition. Think Brooke Shields in Blue Lagoon or Daryl Hannah's cascading balmy waves in Splash.

Eugene Ong, creative director of Urban Hair by Ginrich at The Heeren, says the fastest five-minute hair is to wear it up in a ponytail or loose chignon, or if it's short, just slick it back with styling lotion or gel.

'It's out of your face and off your shoulders, which will help you keep cool in the heat,' he says.

Heat and humidity can wreak havoc on hair, says Seah. It's worse if you have naturally dry hair or if it's coloured.

'Your locks are in a more porous state and even more likely to kink,' he adds.

So, just as you would moisturise dry skin, condition your dry hair too.

Ong says that on top of your regular conditioner, use a leave-in conditioning product, especially on hair tips where drying-out is most obvious.

'You'll find that you spend less time trying to fix your hair, which gives you more play time in the sun,' he says.

Running colour

The sun, sea and chlorine water don't just dry out your hair, they also make your dye job fade faster.

Chlorine turns brown or red tresses brassy, and leaves a green cast on dyed blonde or ash tones.

Eugene Ong, director of Urban Hair by Ginrich, explains that sunlight oxidises the pigments in colour-treated hair, 'bleaching' its intensity.

- Use shampoos and conditioners that are formulated for coloured hair. You can also look for hair products boosted with UV filters to fade-proof your dye job.

- If you're taking a dip in the sea or pool, wet your hair first with fresh water. This is to soak the cuticle so it absorbs less salt or chlorine water. Next, coat your hair with a 50-cent-size amount of conditioner before diving in.

- The minute you get out, rinse hair well to get rid of salt or chlorine. Gently squeeze all the water out, and apply more conditioner.

HAIR: Look for products with amino acids and ceramides to smooth over frazzled locks
Has a UV filter and natural antioxidants that supposedly buffer hair from colour fading and damage.
The Body Shop Bilberry Colour Protect Shampoo, $16.90, from B1-34 Ngee Ann City
Restores shine and silkiness to frizzy tresses in just five minutes.
Matrix Biolage Intensive Smoothing Treatment, $28, for nearest salon stockists, call 6233-0346
Good for porous and dry hair, this leave-in conditioner makes locks shiny and new again without weighing them down.
Phyto 9 Daily Ultra Nourishing Cream, $32, from Watsons
This heat-activated lightweight balm keeps hair straight for up to 18 hours. Its formula supposedly forms a film around hair fibres to detangle them and reduce humidity-induced moisture loss.
The Body Shop Macadamia Straightening Balm, $20.90

Bush watch: Now you see it, now you don't

Bush watch: Now you see it, now you don't
US denies it was stolen as President shook hands during visit to Albania
WATCH IT!: Mr Bush greeting enthusiastic crowds of Albanians on Sunday with his watch on his left wrist (above). Moments later, his wristwatch had disappeared. -- AP
TIRANA (ALBANIA) - WHATEVER happened to the President's watch?

One moment President George W. Bush was shaking hands with Albanians on Sunday, proudly sporting a watch with a dark strap on his left wrist. Moments later, it was gone.

Did it fall off? Did one of his bodyguards remove it? Or did one of the crowd artfully slip it off his wrist and pocket it?

The United States Embassy in Albania on Tuesday emphatically denied that Mr Bush's watch was stolen during his visit to the country, where he was acclaimed as a hero.

The Albanian media - and international websites - is buzzing over a video showing Mr Bush's wristwatch apparently disappearing while he was shaking hands with people in Fushe Kruje, 25km north of Tirana, the capital.

'What the local media is saying is absolutely not true,' a US Embassy official said.

People waiting on the sidewalks on Sunday gave Mr Bush a rapturous welcome, shaking hands with him, grabbing him by the arms and wrists, reaching out to embrace him and even ruffling his hair.

Mr Bush was clearly delighted by the attention and plunged back into the crowd for more hand shakes and to be kissed on the cheek.

But White House spokesman Tony Snow said Mr Bush's watch was not stolen by someone in the crowd.

'The President put it in his pocket, and it returned safely home,' Mr Snow said in Washington.

Albanian police also said that the reports were not true, saying pictures showed that one of Mr Bush's bodyguards had removed the watch.

An Albanian bodyguard who accompanied Mr Bush in the town told The Associated Press that he had seen one of his US colleagues close to Mr Bush bend down and pick up the watch.

The Top Channel private TV station showed how one of his bodyguards may have talked to the President and then taken the watch from his hand.

Mr Bush's visit to the tiny Balkan country, the first by a US president, was considered as historic.

ASSOCIATED PRESS

ICBC eyes banking licences in US, Russia

ICBC eyes banking licences in US, Russia

HONG KONG - INDUSTRIAL and Commercial Bank of China (ICBC), the country's largest lender, has applied for banking licences in the United States and Russia as it seeks to expand outside its home market, the bank's chairman said.

'We have applied to the regulatory authorities in the US, Russia and other places to set up operations,' Mr Jiang Jianqing, ICBC's chairman, said on Tuesday after the bank's annual general meeting.

'Global investors are all looking at the BRIC countries - Brazil, Russia, India and China - and we are very interested in increasing our operations in these markets too.'

The bank's global ambitions represent a sea change from just four years ago, when the country's state-owned lenders were struggling with mountains of bad loans and poor management.

'Many of the country's banks were insolvent just a few years ago and it is only very recently that they have begun to clean up their act,' said Ms Charlene Chu, a banking analyst at Fitch Ratings.

In recent years, Beijing has bailed out the country's largest lenders to the tune of US$430 billion (S$661 billion), through direct equity injections and carving out bad loans.

The banks have also sold a further US$70 billion worth of shares to foreign strategic investors and the public through initial public offerings in Shanghai and Hong Kong, and insist they have improved vastly their non-performing loan ratios, corporate governance and risk management systems.

'We expect ICBC will be looking to do a lot more acquisitions because they have a lot of money and they definitely want to go global,' said Ms May Yan, a China banking analyst at Moody's rating agency.

But the bank faces opposition to its plan to expand in the US because of concerns that it does not meet American regulatory standards. The issue has been raised in the bilateral Strategic Economic Dialogue, with the US agreeing last month to consider Chinese bank applications to open US branches under 'the principle of national treatment'.

While foreign banks have been making significant inroads into China in recent years and are pushing hard for greater access, Chinese banks are largely excluded from foreign markets because of a history of poor risk management and corporate governance.

Bank of China, which has the largest overseas operations of any Chinese bank, agreed to pay a fine of US$20 million to the US and Chinese authorities in 2002 for alleged misconduct at one of its New York branches.

FINANCIAL TIMES

Stock markets get jitters as Greenspan predicts higher rates

Stock markets get jitters as Greenspan predicts higher rates
Yields of US 10-year govt bonds also hit highest in 5 years after his comments
ENJOY IT WHILE IT LASTS: Mr Greenspan expects borrowing costs to rise in the US and emerging economies, saying that the global liquidity boom would not go on forever. -- PHOTO: AP
EXPECTATIONS of higher global interest rates pushed US government bonds to five-year lows yesterday, dragging Asian stocks down but lifting the US dollar to a 41/2-year high against the low-yielding yen.

The yields of 10-year Treasury notes climbed to the highest in five years after former United States Federal Reserve chairman Alan Greenspan on Tuesday predicted an increase in benchmark yields and greater premiums on emerging-market debt. Bond prices move inversely to yields.

'The moment he made that comment, the market fell apart,' said Ms Irene Tse, co-head of US interest rate trading at Goldman, Sachs & Co in New York on Tuesday.

The yield of the benchmark 10-year note climbed to 5.303 per cent in New York on Tuesday after Mr Greenspan's comments.

With higher yields eroding the attraction of riskier assets such as equities, US stocks fell with the Dow Jones Industrial Average tumbling 129.95 points, or 1 per cent, to 13,295.01 on Tuesday.

At 10.50am in London (5.50pm Singapore time) yesterday, the yield of the 10-year note was 5.316 per cent, according to bond broker Cantor Fitzgerald.

US government debt has been under severe pressure over the past week, with yields rising sharply on anxiety over the likelihood that global credit conditions would tighten as the year progresses.

Mr Greenspan reinforced that nervousness when he predicted that borrowing costs would rise in the US and emerging economies.

He said that a global liquidity boom which he traced back to the end of the Cold War would not go on forever.

'Enjoy it while it lasts,' he told his audience at an event hosted by the Commercial Mortgage Securities Association in New York.

Referring to historically low premiums on emerging-market debt, Mr Greenspan said 'it ain't going to continue that way'.

'And indeed, all the spreads you are looking at, including your spreads relative to the 10-year note, are going to start to open up and the 10-year note is going to be moving as well.'

He added: 'So I'd suggest someone out there is not going to be as happy as we are today.'

Treasuries had slumped earlier after reports in China and Japan showed rising consumer and producer prices, while the head of the British central bank signalled that borrowing costs may need to rise to keep inflation from accelerating.

In the Greenspan fallout, interest rate-sensitive financial and property stocks were among the worst hit in Asia as traders worried about higher bond yields crimping margins.

In Tokyo, the benchmark Nikkei 225 Stock Average dropped 0.16 per cent while Hong Kong's Hang Seng Index closed 0.28 per cent lower.

Benchmark indexes in Singapore, Seoul and other Asian countries also declined.

Chinese share prices, however, defied the regional trend, closing 2.56 per cent higher and extending sharp gains as investors discounted the chances of the government raising interest rates again in the short term.

Mr Greenspan did play down the prospect of a wholesale pullout by China from US government bonds, forcing a sharp spike in US interest rates.

Still, he said the reason such a withdrawal was unlikely was that China would not have anyone to sell the securities to, hardly the sort of comfort that jittery bond investors were seeking.

Higher US bond yields also boosted the US dollar by 0.5 per cent to 122.3 yen, a level not seen since late 2002.

The yen has been a favoured currency for funding the carry trade, with investors borrowing the low-yielding Japanese and Swiss units and picking up easy returns by investing in high-yielding currencies including the New Zealand and Australian dollars.

BLOOMBERG NEWS, REUTERS

STI little moved by Wall Street's interest rate fears

STI little moved by Wall Street's interest rate fears
By Arthur Poon
INVESTORS had an early scare yesterday as the Singapore market fell sharply, but a quick rebound left them pretty much unscathed at the end of the session.

The Straits Times Index (STI) fell more than 31 points at the opening bell - hitting an intra-day low of 3,525.76 - on jitters from sharp overnight losses on Wall Street.

But the index recovered by early afternoon to finish just 0.3 per cent, or 10.32 points, down at 3,551.22.

Dealers say concerns that the United States Federal Reserve may lift interest rates later this year in response to a hike in the 10-year yield of US Treasury notes to a five-year high weighed on US stocks.

The current yield is above the Fed's target for its main short-term interest rate of 5.25 per cent. Any rise in interest rates would hurt the already weak US housing market.

The Dow Jones Industrial Average lost nearly 1 per cent to 13,295.01, sparking a knee-jerk but short-lived sell-off in Singapore.

At home, volume was high at 4.28 billion shares worth $2.31 billion, marking the third time in the last four sessions that volume exceeded the four-billion share mark.

'Fund managers reweighting their portfolios may not find Singapore equities cheap, but they do not find them too expensive either, in view of the high liquidity and the strengthening of the Singapore dollar,' said Mr Gabriel Yap, senior dealing director at DMG & Partners Securities.

Yesterday, losers led gainers by 425 to 381. Among the winners was conglomerate Fraser & Neave, up 10 cents to $5.60 after its unit had bought a Sydney site for A$208 million (S$270 million).

Hong Leong Finance gained two cents to $4.08, after announcing that it will pay $405 million for ABN Amro's car loans business.

Property developer CapitaLand, however, shed five cents to $7.95, despite unveiling a $420 million purchase of a freehold Orchard condominium a day earlier.

Pan-United Marine fell two cents to $2.38 - the offer price made by a unit of Dubai World for all outstanding shares of the shipping firm.

Construction-based firms dominated the most active list. Yongnam Holdings was the second most active counter, closing at 42.5 cents, up 5.5 cents on 209.4 million shares traded.

Sapphire, a building maintenance firm formerly known as IRE, gained half a cent to 3.5 cents. Specialist foundation and engineering firm CSC Holdings rose 1.5 cents to 38 cents.

China's retail sales growth hits 3-year high

China's retail sales growth hits 3-year high
Rising incomes and buoyant stock market contributing to spending power of Chinese
LOOSENING PURSE STRINGS: The report points to rising spending and the government having some success in stimulating consumption, say economists. -- PHOTO: AFP
HONG KONG - CHINA'S retail sales unexpectedly accelerated at the fastest pace in three years, buoyed by rising incomes and a stock market that has almost doubled this year.

The National Bureau of Statistics said yesterday that retail sales last month amounted to 715.8 billion yuan (S$143.9 billion), 15.9 per cent more than a year earlier and handily beating forecasts of a 15.3 per cent gain.

Sales were flattered by a rise in inflation last month to a 27-month peak because of a surge in meat prices.

But economists said the report confirmed a well-entrenched trend of rising spending and showed the government was having some success in tilting the economy away from its dependence on exports and investment.

'The government has been working very hard to stimulate consumption so this is a positive development, but I suspect there has been a bit of contribution from the wealth effect from the stock market,' said Mr Huang Yiping, chief China economist for Citigroup in Hong Kong.

The rise in incomes, along with rapid urbanisation, is the main factor underpinning consumption. Disposable incomes in towns rose 16.6 per cent in real terms in the first quarter from a year ago; rural cash incomes were up 12.1 per cent.

But the government has been steadily increasing spending on health and education, and working to expand pensions coverage, so people have more money in their pockets and feel less of a need to save for a rainy day.

Spending in all but one category - telecommunications equipment - rose by much more than the headline figure. Sales of building materials jumped by 62.8 per cent from a year earlier, office supplies by 26.3 per cent, jewellery by 37.3 per cent and cars by 34.2 per cent.

Mr Ben Simpfendorfer, an economist at Royal Bank of Scotland in Hong Kong, called the quality of the data poor, but he said the rising trend was clear. The increase was the biggest since May 2004 and the combined sales for the first five months were up 15.2 per cent from a year earlier, well above the 13.7 per cent gain for the whole of last year.

'You only have to walk up the street to see that retail sales are strengthening,' he said.

The government also reported yesterday that China attracted US$25.3 billion (S$38.9 billion) in foreign direct investment in the first five months of the year, 9.87 per cent more than in the same period last year.

Foreign manufacturers have invested in China at the rate of over US$1 billion a week since Beijing joined the World Trade Organisation in late 2001, drawn by cheap labour, first-rate infrastructure and a big domestic market.

Economists have long expected the surge to ebb. After yesterday's figures, the wait goes on.

REUTERS, BLOOMBERG NEWS

Tuesday, June 05, 2007

China shares rebound on talk of policy statement

June 6, 2007
China shares rebound on talk of policy statement
Stocks up 2.6% with claims of impending moves to revive investor confidence
CALMING EFFECT: Most Asian bourses pared losses as China's recovery eased concerns that Monday's plunge may prompt a regional correction. -- REUTERS
SHANGHAI - CHINA'S main stock index yesterday plunged more than 7 per cent before rebounding to close 2.6 per cent higher on rumours that the government would soon issue a policy statement designed to restore investor confidence.

Most Asian share markets pared earlier losses after China stocks reversed their steep fall, easing concerns that the slump might prompt a correction across the region.

Hong Kong's Hang Seng Index, which tracked China stocks' roller- coaster ride, closed up 0.54 per cent at 20,842.15 as some investors continued to shift money into the territory from the mainland.

Japan's Nikkei took the turmoil in Chinese markets in its stride, closing up 0.5 per cent and above the 18,000 level for the first time since February, helped by stronger energy stocks. South Korea's Kospi carved out another record closing high with a gain of 0.3 per cent.

In China, as prices swung wildly and rumours were abound, some fund managers said the five-day slide that pushed the index down by as much as 21 per cent and erased US$490 billion (S$750 billion) of value might be ending at one stage.

Many local and foreign mutual funds, some of which were more than 90 per cent invested in Chinese stocks early this year, are believed to be only around 50 per cent invested now. Stocks could rise further if those funds decide the market has bottomed out.

'A lot of our fund managers are expecting it to hit the bottom today...or maybe later this week,' said Fortune SGAM Fund Management deputy chief investment officer Gabriel Gondard yesterday.

But others fear panic selling by millions of Chinese individual investors, who now face losses of 30 per cent or more, could still push the market much lower.

'I have no words for this market - it's out of its mind,' said Xiangcai Securities analyst Wu Nan. 'Any rebound will just bring another sell-off, as confidence has gone.'

The Shanghai Composite Index dropped by as much as 7.25 per cent yesterday morning before jumping in the afternoon to close 2.63 per cent higher at 3,767.101 points, less than two points off its intra-day high. Turnover in Shanghai A shares was an active 175.1 billion yuan (S$35.02 billion).

The market's slide was triggered by the government's announcement last Wednesday that it was raising the stock trading tax to cool a bull run that had nearly quadrupled the index over the past 18 months.

Much will therefore depend on Beijing's actions in the coming days. It is expected to intervene, if necessary, to prevent a collapse in stocks that could hurt the economy.

Rumours spread yesterday afternoon that officials from the securities regulator, the finance ministry and other agencies planned to meet to discuss how to stabilise stocks.

The government may issue a statement saying it will not introduce a capital gains tax for three years, and promising other market- friendly policies, the rumours said.

Other analysts, however, noted attempts by the authorities to revive confidence at the start of the week, such as positive editorials in state-run newspapers about the market's trend, had failed.

That suggests to some that individual investors will continue to sell into any rally, weighing on the bourse for months and conceivably pushing the index down to as far as 3,000 points in the coming weeks.

A drop to 3,000 points would represent a 30 per cent pullback from the market's high, which according to technical analysis is a common retracement in the context of a long-term uptrend.

Such a drop would still leave the index up 10 per cent from the start of this year, and many institutional investors would still be sitting on sizeable profits. But many small investors would be wiped out.

REUTERS, AGENCE FRANCE-PRESSE

Sunday, June 03, 2007

China's economic boom likely to spawn many success stories

China's economic boom likely to spawn many success stories
Early-bird investors of foreign-listed mainland shares may turn out big winners
By Goh Eng Yeow, Markets Correspondent
Those who hold stocks linked to rising consumption, infrastructural development or corporate restructuring in China should reap a handsome reward eventually. -- AP
INVESTING in a stock when it is still an undiscovered gem will probably be the closest that most of us will get to printing money.

As the older investors will attest, buying into DBS Group Holdings, Singapore Airlines (SIA) or even unglamorous counters such as ComfortDelGro has delivered huge returns to the early birds as Singapore transformed itself into a First World economy over the past 30 years.

But a fresh generation of investors trying to grow nest eggs wants to know if it has missed the boat and ought to give up on stocks altogether.

Sure, there have been bumper profits generated in this latest boom, but those who look closer will find there has been plenty to scare the faint of heart, mostly caused by Shanghai and Shenzhen getting the shakes.

Yet as risky as the bubble in China shares appears, these are the very stocks that may hold the key to securing the nest eggs of the next generation of investors.

While there are many reasons to be nervous about the rocketing Chinese stock markets, look deeper and you will see reasons for optimism as well.

One of the biggest sea changes is that we are even bothering about Chinese equity markets.

Few investors even gave them a thought until two years ago.

Shanghai and Shenzhen were mired in the doldrums, despite the many attempts to revive them, even as China's economy blossomed.

But the country's fast-growing middle class, hungry for better returns on its savings than the paltry rates offered by Chinese banks, has changed all that.

Retail demand has helped to push Shanghai's key index up by 62 per cent this year and 250 per cent for the past two years.

The tiddler suddenly started packing a punch, as global investors discovered in February when a crash in Shanghai ricocheted around the world.

There has been no end of warnings, not the least from former United States Federal Reserve boss Alan Greenspan, about the risk of the Chinese bubble.

Others reason that any plunge in Shanghai would be self-contained. Chinese investors - there are 100 million of them now, more than the population of most nations - are effectively forbidden from investing overseas and most have bought their shares with cash, not bank loans.

By some estimates, a 50 per cent plunge in Shanghai would wipe out about US$1.2 trillion (S$1.84 trillion) in market value - the equivalent of China's foreign exchange reserves - and unleash massive social upheaval.

That is the last thing the Chinese government needs in the run-up to next year's Olympic Games, so many believe Beijing will try to deflate, rather than burst, the Shanghai bubble.

But while the media and retail investors fret about a possible correction in China, foreign investment banks have been falling over themselves to issue glowing reports on China companies listed overseas, including Singapore.

A recent forum hosted by foreign broker CLSA in Singapore attracted more than 600 fund managers keen to learn about fast-growing, mid-sized China firms.

What captivates them is the chance to catch budding Chinese blue chips as they ride the wave that is turning the country into a financial superpower - and a rampant consumer society.

A CLSA study shows that while the average middle-class family in China saves about 20 per cent of monthly income, its appetite for big-ticket items like cars is growing. About 20 per cent of middle-class families have bought funds or shares in the past year, and another 26 per cent plan to invest in the next 12 months.

Investment banks such as UBS and Merrill Lynch believe that the structural changes in China to allow locals to invest more overseas will mean that those shares listed abroad will also get a boost.

The ignition switch for the great investor boom has already been put in place. That came with China's decision to let its bank customers buy shares in overseas markets - mostly through funds - for the first time.

The ceiling for overseas investment has been kept at a paltry US$7 billion to US$9 billion, but some analysts say that between US$100 billion and US$200 billion could find its way out of China in the next two years as Beijing frees up its financial markets.

Most tip that the money will initially flow to Chinese companies already listed aboard.

The H shares of giant corporations listed in Hong Kong are trading at only half the valuations of their Shanghai-listed A shares.

And UBS noted that China shares listed in Singapore - the so-called S-chips - are even cheaper, trading at a 30 per cent discount to the H shares.

Many have also noted that even though many China firms have expanded considerably, they are still growing at the astronomical rates normally associated with newer firms.

Large Chinese banks such as Bank of China and Industrial & Commercial Bank of China regularly produce huge profit jumps.

They also offer investors the opportunity to buy into financial institutions with a depositor bases as large as the population of mid-sized nations such as Mexico.

So the faint-hearted who want to bail out of S-chips because of rising concern over the A-share bubble should think again.

Merrill believes that any short-term cooling measures in China will cause only short-term volatility and are unlikely to derail the upward price trend of S-chips over the next 12 months.

Hence, those who hold stocks linked to rising consumption, infrastructural development or corporate restructuring in China should reap a handsome reward eventually.

Sure, there will be many bumps along the way and the ride will be full of surprises.

But early-bird investors could also enjoy returns similar to those raked in by investors who got in on the ground floor with SIA, DBS and ComfortDelGro three decades ago.

Saturday, June 02, 2007

S'pore and HK exchanges compete for Vietnam listings

S'pore and HK exchanges compete for Vietnam listings

New battleground drawn up amid shrinking numbers of IPOs from China
By Lee Su Shyan, Companies Correspondent
MR LAWRENCE WONG, executive vice-president and head of listing at SGX
OLD rivals Singapore and Hong Kong stock exchanges are back in combat mode, aiming to secure the latest glittering prize - Vietnam listings.

Both exchanges want to attract Vietnamese firms to take up the slack from the dwindling numbers of Chinese companies seeking listings abroad.

The overseas listing ambitions of China firms took a hit last September when Beijing said they must first get approval from the securities regulator. The move is expected to hit Singapore and Hong Kong, which have drawn scores of China listings.

The Singapore Exchange's (SGX's) response was to announce recently that it will look at alternatives - such as Vietnam.

The Hong Kong Stock Exchange (HKSE) has also taken up the challenge, saying that it, too, is keen on Vietnam.

Its spokesman told The Straits Times that a three-year strategic plan set out late last year included Asia, and not just the places that the HKSE traditionally focused on, such as Hong Kong and China.

He said the HKSE has organised road shows to Vietnam to explain the merits of listing in Hong Kong, adding that 'these promotional efforts will continue'.

Mr Daniel Ng, the head of corporate finance at the investment banking arm of BOC International in Hong Kong, told ST that 'we are seeing interest from a variety of industries and businesses in Vietnam and we are also working with the HKSE in this regard'.

He said Vietnam has been identified as one of the 'tigers' in Asia and one of the more promising countries for capital-raising activities.

Mr Ng, who is visiting Vietnam soon, admitted that Singapore may have an advantage as it is part of Asean. Vietnam is also an Asean member.

But he said the HKSE was the second-largest market for initial public offers (IPOs) last year, surpassing the New York Stock Exchange.

The SGX has not let the HKSE do all the running. It has signed agreements with the Hanoi Securities Trading Centre and the Ho Chi Minh City Securities Trading Centre, which include helping Vietnamese firms list here.

The Monetary Authority of Singapore (MAS), the SGX and Vietnam government agencies also have a tie-up to help Vietnam expand capital markets.

Mr Lawrence Wong, the executive vice-president and head of listings at SGX, said: 'We hope to have the first Vietnamese company listed by this year or early next year.'

The SGX said there is interest from manufacturers and financial services firms, and it is working with some firms to explore possible listings.

Sources said Vietnamese dairy firm Vinamilk, with a market value of about US$2 billion (S$3.1 billion), could list here early next year.

Apart from the HKSE challenge, there could also be other stumbling blocks such as the SGX's proposal to revamp listing rules and its plans for a new board. Lawyer Robson Lee from Shook Lin & Bok said: 'Until the new rules are definitive, it would be difficult to market Singapore to foreign issuers during this transitional phase.'

Other changes may result once the MAS and the SGX assume the supervision of corporate governance in September. These may have an impact on listing rules so advisers will need time to digest any changes and update the companies.

Vietnamese firms might also opt to stay at home, given the strength of its domestic stock market. The Vietnam stock market index is up 38 per cent this year, compared with the Straits Times Index's 19 per cent rise.



Strong interest

SGX signed an agreement with the Hanoi Securities Trading Centre in April to help Vietnamese companies list in Singapore and gain access to international capital. They will share information on market regulation and enforcement, while SGX will educate Vietnamese companies eyeing a Singapore listing about its listing rules.

'We hope to have the first Vietnamese company by this year or early next year.'
MR LAWRENCE WONG, executive vice-president and head of listing at SGX

'We are seeing interest in a variety of industries and businesses in Vietnam and we are also working with the HKSE in this regard.'
MR DANIEL NG, managing director and head of corporate finance at BOC International in Hong Kong