Preparing for rapid growth for China

HONG KONG – The Chinese government has further policy tools available to counteract any significant slowdown, while uncertainty surrounding the economy may weigh on credit scores, Fitch Ratings said yesterday.
Premier Wen Jiabao has vowed to focus more on increasing growth after trade and domestic demand were below forecasts last month, data that prompted economists to pare outlooks for the world’s fastest-growing major economy.
Fitch predicts China’s gross domestic product growth will slow to around 8 per cent for this year from 9.2 per cent last year. That compares with the median estimate in a Bloomberg News survey of 8.2 per cent.
“Fitch still believes that the Chinese government still has tremendous scope for policy flexibility, and that this would sort of lean against any risks of a hard landing,” said Mr Art Woo, a Hong Kong-based director in the company’s sovereign group.
“Nevertheless, the degree of uncertainty over the outlook on the Chinese economy is likely to weigh on the ratings in the near term.”
China has a local currency issuer default rating of AA- from Fitch with a negative outlook, while its foreign currency rating is A+ and stable.
The risks to China’s banks and the potential need to bail out lenders in the event of a sharp financial sector downturn could weigh on the country’s public finances “down the road”, according to Mr Woo.
The Chinese government may use stimulus measures ranging from 1 trillion (S$200 million) to 2 trillion yuan, half the size of the package in 2008, to combat an economic slowdown, the Credit Suisse Group said yesterday.
The official Xinhua News Agency said China had no intention to introduce large-scale stimulus like it had done during the financial crisis in response to this year’s slowdown. That package was worth 4 trillion yuan.
“The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth. The current efforts for stabilising growth will not repeat the old way of three years ago,” Xinhua said yesterday in a Chinese-language article on economic policy.
Stocks jumped yesterday on speculation the government will take more steps to halt slowing growth. The Shanghai Composite Index rose 1.2 per cent to 2,389.64 at the close, its highest since May 11. BLOOMBERG

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“The Chinese government’s intention is very clear: It will not roll out another massive stimulus plan to seek high economic growth. The current efforts for stabilising growth will not repeat the old way of three years ago,” Xinhua said yesterday in a Chinese-language article on economic policy.


(Reuters) – China needs to boost investment to spur economic growth but Beijing should shun aggressive fiscal stimulus, influential academics said in remarks published in leading state-backed newspapers on Wednesday.
They joined a chorus of commentary countering market expectations that China might unveil a stimulus package similar to the 4 trillion yuan in spending unleashed during the global financial crisis.
Earlier this week, an official of the state planner, the National Development and Reform Commission (NDRC), said a large-scale economic stimulus package was unlikely.
An article published on the website of the official Xinhua news agency said China had no plan to repeat the powerful stimulus measures used during the global crisis in 2008.
“The Chinese government’s intention is very obvious: It will not unveil another massive stimulus plan to stimulate economic growth,” the Xinhua article said, without citing sources. “Current policies to stabilize growth will not repeat the old way of stimulating growth three years ago.”
It was not clear if the article, which also cited analysts, represents official thinking – Beijing usually publishes straight-forward commentaries, not analyses, when it wants to explain its stance.
But the story was in line with the mainstream view among Chinese policy advisers that Beijing will shun massive stimulus as it struggles with the after-effects of the package unveiled in late 2008.
Beijing is trying to clean up the roughly 10.7 trillion yuan ($1.7 trillion) in local government debt that resulted from the stimulus package to counter the global financial crisis, which has also been blamed for stoking inflation risks and fuelling a frenzy of property speculation.
SLOW GROWTH
The top government researchers and economists warned that excessive investment would reduce the efficiency of economic growth and exacerbate over capacity in some industries.
“It is not necessary for China to launch another massive 4 trillion yuan stimulus plan. We must hold off any impulse of making excessive investment,” said Liu Yuanchun, a professor at the Renmin University, according to the official People’s Daily, the mouthpiece newspaper of the ruling Communist Party.
Chen Bingcai, a professor at the National Academy of Governance, said China must not overly expand investment and sacrifice quality growth for high growth. Chen’s school teaches and trains many senior leaders of the central government.
“If Beijing returns to an investment boom again, the previous call of adjusting the economic structure would turn out to be nothing but empty talk,” the official China Securities Journal cited Chen as saying.
China’s economy is on course this year to grow 8.2 percent, its slowest pace since 1999, according to the consensus forecast of investment bank economists in the latest benchmark Reuters poll.
Beijing has unveiled several measures to boost domestic consumption and private investment as the economy faces the headwinds of a slowdown in export demand growth.
Such moves include fast-tracking approval of infrastructure investment, offering subsidies for buying energy-saving home appliances, encouraging more private capital to enter a handful of sectors, which are dominated by state firms.
The NDRC, China’s top economic planning agency, gave the green light to around 100 projects on May 21, fanning speculation that Beijing may initiate a new fiscal spending spree.
FRENZIED SPECULATION
Global financial markets have been caught in a frenzy of speculation on the subject, which lingered on Wednesday.
Local media reports in China on Tuesday cited unconfirmed talk that Beijing was readying fresh stimulus. The tone had reversed by the end of the trading day in China.
Media began citing a microblog reference to a news briefing, purported to have been held by the NDRC, denying that a stimulus package like the one in the global financial crisis was in the pipeline.
The original Twitter-like microblog entry, reported by local media to have been on the official Xinhua microblog, could not be found when checked by Reuters. There was no mention of it on the Xinhua newswire or its public website.
The NDRC website carried no reference to the report, or a news conference and declined to comment when contacted by Reuters.
The later Chinese media reports cited the NRDC as saying there had been a misinterpretation of the May 21 announcements and that the project approvals had nothing to do with efforts to stabilize economic growth.
Luo Guosan, deputy director of the investment office at the NDRC, had said earlier in the week that there was little chance of Beijing unveiling another big spending plan to pump-prime the economy.
“We want to target and maintain a reasonable level of investment in society to stabilize economic growth. To think about having another large-scale government-led investment spurt to stimulate economic growth, that is unlikely because it is not sustainable,” Luo was quoted as saying in the Chongqing Commercial Daily on Monday.
The stimulus package during the global downturn fuelled speculation in China’s real estate sector and left local government with a mountain of debt.
“We should pay attention to the investment growth pace, as the previous 4 trillion yuan stimulus plan has left us with many uncompleted projects. If we start new projects again, we may finally fail to wean the economy from investment,” Bai Chongen, a professor at the Tsinghua University, was quoted as saying by the People’s Daily.
($1 = 6.3480 yuan)
(Reporting by Aileen Wang and Nick Edwards; Editing by Don Durfee and Neil Fullick)

The world economy is best served by Asia, with China leading the way to counter slowing demand by US and the EU, so China has an option to kick start it’s economy thru innovations and technology into various sectors, investing for the future, to ensure rapid economic growth. Reforms in healthcare and aviation, including the banking industry could require as much as 2 trillion yuan but the returns are justified as it will help maintain sustainable growth with rapid expansion of it’s domestic labour force. Please check my blogs on those technologies that will create an air hub for all cities in china, where travel and tourism will help boost domestic consumption. The next sector is healthcare, where the training and education of doctors is crucial for them to get overseas exposure for the latest advancement in healthcare technologies, thru co-operation to bring back expertise to boost it’s own industry. The next target is the banking industry, where a carefully orchestrated privatisation for FDI and the liberisation of it’s stock markets will bring billions of addition funds to fuel it’s GDP growth. If all 3 sectors are carefully orchestrated with reforms, we could see China having GDP growth above 15% again, the driving force of the global economy. If nothing is done, the projections of growth for GDP for china could drop to the bottom of 6%, a slowdown for the rest of Asia
– Contributed by Oogle.

Revive the Changi Motorsport Hub Project

By Patwant Singh | Posted: 16 May 2012 2036 hrs
SINGAPORE: The construction of the Changi Motorsports Hub may finally be called off, after the final termination papers were signed on Wednesday.
The Singapore Sports Council (SSC) will take back possession of the land from the SG Changi consortium on Thursday.
SG Changi could not complete the Changi Motorsports Hub as the company had run into various financial difficulties.
The next step for SSC will be to see if there are any parties interested in taking up the project.
The Request for Information phase will last from August up to the end of 2012.
A decision on whether a re-tender will be called will be made in the third quarter of 2013, SSC elaborated.
SSC CEO Lim Teck Yin said there could have been more stringent criteria in place when it came to examining the financial strengths and organisational ability of the bidding consortiums.
“We could have gone further to require a level of assurance about being able to finance the entire project, maybe through the likes of a bankers guarantee for the entire project, and not just the ability to buy the land,” he said.
“That could have benefitted the project, since we were also trying to achieve other national objectives, not least trying to get the hub up on time and ready.”
“But those are the lessons learnt,” he added.
SSC said it welcomes both local and overseas investors and is also keeping its options open to both motorsports- and non-motorsports-related concepts.
In informal sessions, it has already met five or six interested parties and will be engaging the services of a consultancy to help it with the feedback process.

– CNA/wm
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In order to revive the Changi Motorsport Hub Project, you need to find people in the industry with common interests, especially car manufacturers and those involved in racing motorsports, to only allow access to rental sports cars from sponsors, to join a members club, and allow those who are foreigners to participate by paying a higher fee, I believe this project can breakeven within 2 years, if we can find the necessary participants who can contribute, and make Singapore a motorsports hub for everyone who is interested.
Concept;
Call for an auction of retail space giving best frontage and prominence to those car manufacturers who can pay the highest price, to showcase their latest technologies for racing motorsport, to allow members and foreigners to lease the cars for training and leisure, this will give a wide exposure to manufacturers, and allow customers to test their racing technologies, in-directly boosting their car sales. By targeting car manufacturers, there is no need to worry about high maintenance, with a regular income everything can be easily managed, to give everyone the best of all worlds, and the projection of recovery of ROI can be made within 2 years.
Sources of Income;
Real Estate Rental
Membership Fees
Rental of cars
Ticket sales
Others like workshops, mechanics and modifications
Armed with a feasibility study, the design and planning stage should allocated the most space for the highest income based on the above, as long as you are able to get more than 30% commitment from your sponsors, you can kick off your project with minimum capital with a 50/50 division between rental and ticket sales/membership fees.
– Contributed by Oogle. 

It is not drug related but possession by evil spirits

MIAMI — Authorities in Miami are looking for more witnesses after a police officer fatally shot a naked man who refused to stop chewing on the face of another naked man on a busy downtown highway ramp.
Detective William Moreno said police are looking for people to fill in the blanks on what led to the grisly scene in which a witness reported that a man — later identified by authorities as Rudy Eugene, 31 — savagely chewed on the other man’s face and growled when a police officer told him to stop.
Miami police have released few details about the weekend attack, other than confirming that there was a fatal officer-involved shooting. One officer told Miami television station WSVN the attacker had likely taken a new potent form of LSD. An emergency room doctor theorized bath salts, a drug with amphetamine-like chemicals nicknamed after the product it resembles, may have induced the violent behavior, reported s
The victim, who has not been identified, has been hospitalized in critical condition. Miami’s local10.com reported he was a homeless man who frequents the neighborhood where he was attacked.
Read the latest on the face attack on NBCMiami.com
Witness Larry Vega was riding his bicycle Saturday afternoon off the MacArthur Causeway that connects downtown Miami with Miami Beach when he saw the savage attack.
“The guy was, like, tearing him to pieces with his mouth, so I told him, ‘Get off!'” Vega told Miami television station WSVN. “The guy just kept eating the other guy away, like, ripping his skin.”
Vega flagged down a Miami police officer, who he said repeatedly ordered the attacker to get off the victim. The attacker just picked his head up and growled at the officer, Vega said.

As the attack continued, Vega said the officer shot the attacker, who continued chewing the victim’s face. The officer fired again, killing the attacker.
Emergency personnel rushed the victim to Jackson Memorial Hospital with 75 percent of his face missing, reported WSVN. An eye, his ears, and his lips were gone, the station said.
“It was just a blob of blood,” Vega said. “You couldn’t really see, it was just blood all over the place.”
A surveillance video camera from The Miami Herald building nearby captured images of the men’s naked legs lying side by side after the shooting.
“We’re hoping that he pulls through, for his well-being, but also so he can tell us what happened,” Sgt. Javier Ortiz, vice president of the Miami police union, told The Miami Herald. “Only he knows.”
Drug-induced excited delirium?
Armando Aguilar of the Miami Fraternal Order of Police told WSVN he believed the attacker was likely overdosing on LSD.

“What’s happening is whenever we see that a person has taken all of his clothes off and has become violent, it’s indicative of this excited delirium that’s caused by overdose of drugs,” he said. “What’s happening is, inside their body their organs are burning up alive.”
Excited delirium, a condition that’s usually drug-related, can incite violence, unexpected strength, and sometimes hypothermia, NBCMiami.com reported.
Paul Adams, an ER doctor at Jackson Memorial Hospital, told NBCMiami.com the designer drug nicknamed “bath salts” could have led to the attack.

“Cocaine and new LSDs, they cause delirium, which (means) you don’t make sense when you take them,” Adams said. “And when you don’t make sense and you don’t control your emotions, you don’t control your actions, you find yourself in circumstances that you just don’t want to be in.”

Bath salts were banned in Florida in 2011, said NBCMiami.com. But new formulations have become popular, Adams said.

“We’ve had several deaths. Earlier last year we probably saw our first deaths from bath salts, where people (were) running onto MacArthur Causeway, under MacArthur Causeway, being chased by the police and then all of the sudden just collapsing,” Adams said.

Eugene, the suspect, has just one arrest suggesting violent tendencies: Miami Beach police arrested him on a battery charge when he was 16, which was later dropped, reported The Miami Herald.
He has been arrested seven other times over five years, mostly for marijuana-related charges, the paper said. He was briefly married to a woman he met in high school at North Miami Beach Senior High, court records revealed, according to local10.com. The two divorced in 2007 after he reportedly became violent toward her.
“That’s why I left,” his ex-wife told local10.com, speaking on condition of anonymity.
Other homeless people who camp near the scene of the attack told local10.com they knew the suspect.
Police asked for the public’s assistance in piecing together the attack.
“We know that there were many people on the MacArthur Causeway and we’re hoping they come forward,” Moreno told The Miami Herald on Monday.
The Associated Press contributed to this report.

When you post at Facebook, your location is revealed by default

May. 28, 2012 (11:29 am) By:


Facebook and privacy are always going to be linked due to the personal information each account inevitably holds. The number one social media network is regularly making headlines over privacy concerns, and today is no different.
A home in Australia was robbed last week by two masked men just a few hours after an image of cash appeared on Facebook. The image showed a large pile of cash and was posted by a 17-year-old girl who was helping count her grandmother’s savings. It didn’t take long for the robbers to figure out where the house was located and travel there with the intention of stealing it.
The image was posted at 4pm on Thursday, May 24. At 11:30pm that day the two masked men arrived wielding a knife and wooden club. They forced their way into the house wanting to speak to the 17-year-old about the cash. She was no longer there (a 58-year-old man, woman of 47, and boy of 14 were, though), so the men instead left with a small amount of money they found by searching the home.
The police were called the following morning and are now actively seeking the men. They also took the opportunity to remind everyone that personal information posted on social networks should be done with “extreme caution.”
Posting an image of a large amount of cash on Facebook is not a very clever thing to do, but it’s the other information made available and privacy settings used that allowed this to happen. The girl’s location details were available for people to see in some form, and someone decided to use them to try and steal the money. Luckily for the girl and the grandmother they were not around when these guys turned up.
Is Facebook to blame? No. Ultimately the girl is, but I would like to know exactly how the men found her location. Was it a default privacy setting in Facebook that allowed them to see it, or did she actually just tell everyone where she was when posting?
Read more at NSW Police Force, via BBC News