Archive for ‘Economics’

25/01/2013

* China’s Huawei Creeps up on Apple, Samsung

WSJ: “As Samsung Electronics Co. and Apple Inc.  try to defend their dominance in the smartphone market, the latest data show China’s Huawei Technologies Co. coming third in terms of market share for the first time, indicating that a rapid increase of smartphone users in China and other emerging markets may be starting to alter the global landscape.

According to research firm IDC, Samsung’s smartphone market share in the fourth quarter through December rose to 29% from 22.5% a year earlier, while Apple’s share dropped slightly to 21.8% from 23%. Meanwhile, Huawei’s share rose to 4.9% from 3.5%, ahead of Japan’s Sony Corp. , whose share also increased to 4.5% from 3.9% a year earlier. Another Chinese company ZTE Corp., came fifth with 4.3%.

“The fact that Huawei and ZTE now find themselves among the Top 5 smartphone vendors marks a significant shift for the global market,” said IDC research manager Ramon Llamas.

via China’s Huawei Creeps up on Apple, Samsung – China Real Time Report – WSJ.

25/01/2013

* License plates for automobiles in Shanghai can cost as much the cars

WSJ: “A Shanghai license plate now costs as much as a new mid-range sedan.

The average price for a Shanghai plate soared to 75,000 yuan ($12,000) at the city’s license plate auction over the weekend, roughly equal to the retail price of a brand new, fully loaded Geely MK-II sedan. Shanghai plates went for an average of 50,000 yuan a year ago, meaning prices have risen nearly 2,000 yuan a month.

Yolanda Dong, a market manager at a Japanese firm, paid 77,000 yuan for her plate. By comparison, her Peugeot 307 cost her 100,000 yuan.

“I had to buy the plate no matter what,” said Ms. Dong, who bought her car four months ago and has been bidding to get a Shanghai plate since then. “I can’t have my car sitting there doing nothing.””

via License plates for automobiles in Shanghai can cost as much the cars they are intended to adorn. – China Real Time Report – WSJ.

23/01/2013

* Middle-class Chinese snap up overseas luxury

China Daily: “An increasing number of middle-class Chinese are buying luxury goods outside the Chinese mainland, with more overseas travel driving the trend, a KPMG report said on Tuesday.

Seventy-one percent of survey respondents ― middle-class mainland residents ― traveled overseas in 2012, compared with 53 percent in 2008. And 72 percent of them said they bought luxury items during such trips, with cosmetics, watches and handbags being the most popular items.

Brand recognition continues to rise as consumers become more discerning and seek experiential luxury as well as one-of-a-kind luxury brands and products. Respondents said they recognize 59 luxury brands, from 45 in survey conducted in 2010.

The report ― The Global Reach of China Luxury ― is based on a survey of 1,200 middle-class Chinese consumers in 24 cities. Market research firm TNS conducted the study.

Respondents were 20 to 44 years old, with a minimum household income of 7,500 yuan ($1,205) a month in tier-one cities and 5,500 yuan elsewhere.

Chinese consumers associate certain countries with particular products. For example, Switzerland is recognized for its luxury watches, while France scores highest for cosmetics and perfumes.”

via Middle-class Chinese snap up overseas luxury[1]|chinadaily.com.cn.

See also: http://unintend-conseq.blogspot.co.uk/2013/01/corruption-curbs-crimp-luxury-market.html

23/01/2013

* Mahindra Sees IT Revival

WSJ: “It is good to do the first interview in Davos with someone who can feel the pulse of the global economy, and Anand Mahindra, chairman and managing director Mahindra & Mahindra Ltd. 500520.BY -0.19%, can to an extent do that.

Sure, the giant Mahindra federation of companies—don’t call it a conglomerate, please—has many large businesses focused on its home market of India. But its information technology business relies on the investment decisions taken in the boardrooms of New York, London and Frankfurt—and the feeling of Mr. Mahindra is positive.

“The IT companies are going to see a revival,” says the Harvard-educated Mr. Mahindra. “I have been surprised at how strong the recovery has been.”

“What we are seeing is that customers in the west, by which I mean U.S., U.K. and Western Europe, these companies have not shied away in the last year from making the necessary investments in IT that they need to improve their businesses.”

That would be good news for the broader IT sector in India, which started the year with upbeat corporate results from some of the big players, but then some of the shine diminished when No. 3 player Wipro Ltd. 507685.BY +0.75% said it didn’t see any significant increase in demand.

It would also be good news for the broader global economy. Mr. Mahindra says, “I don’t think anyone in the world uses Indian IT companies as a barometer, but I think it’s a very interesting one.”

Mahindra & Mahindra has an incredibly diverse range of businesses, from tractors to parts for jet fighters to rural lending.

Mahindra Group has two software services companies—Tech Mahindra Ltd. and Satyam Computer Services Ltd. 500376.BY -0.30% The two companies have already announced a merger, which will create the fifth biggest Indian software services company by sales.

For the domestic business environment, he says he is more optimistic now than he has been for a couple of years.”

via Mahindra Sees IT Revival – India Real Time – WSJ.

22/01/2013

* Chinese student in France sick of buying luxury goods for other people

SCMP: “Li Yuandong, 23, remembers buying 10 Burberry scarfs, two Burberry handbags, two Louis Vuitton handbags and some luxury perfumes in one day in Paris without blinking an eye.

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“Then I blew my ‘millionaire’ identity by hopping on a crowded subway train heading home”, wrote Li, a Chinese graduate student studying engineering in France on his blog.

Li’s post went viral on China’s social media, including Sina Weibo, China’s popular twitter-like service.

In a humorous tone, Li wrote about his side job of buying luxury goods for friends in China, and complained the burden was growing too heavy.

“I became so popular after moving to France,” said Li in his post. “Suddenly everyone wanted to talk to me.”

But the conversations all ended with the same question: “Can you buy me a Louis Vuitton”?

“My bank upgraded me to VIP after seeing the amount of money sent by friends in China,“ he said, “I would easily spend 10,000 euros in a month on hand bags.””

via Chinese student in France sick of buying luxury goods for other people | South China Morning Post.

22/01/2013

* China Pushes Industry Consolidation

WSJ: “China’s industry ministry on Tuesday set an aggressive goal of forging global giants in the electronics sector within the next two years through mergers and alliances, and reiterated a longstanding push for Chinese companies to explore overseas acquisitions.

The target for the electronics sector is part of a wider plan to consolidate China’s fragmented major industries, including steel, shipping, automotives, cement and aluminum. Overcapacity in heavy industries has been blamed for amplifying a sharp slowdown in growth in the last two years.”

via China Pushes Industry Consolidation – WSJ.com.

22/01/2013

* Chidambaram: See ‘First Green Shoots’ of Recovery

WSJ: “India’s finance minister said the “first green shoots” of the country’s economic revival are evident but growth isn’t expected to surpass 5.7% this year, the bottom end of the government’s revised growth target.

English: India's Minister of Finance Palaniapp...

English: India’s Minister of Finance Palaniappan Chidambaram is the special guest at a plenary session titled Risks to India’s Economy in a Post-Crisis World held at the World Economic Forum’s India Economic Summit 2008 in New Delhi, 16-18 November 2008. (Photo credit: Wikipedia)

In Hong Kong to meet investors ahead of the budget presentation for fiscal 2013, P. Chidambaram told reporters that growth next year should be in the upper ranges of the 6%-7% target and that the economy should return to its potential growth rate, around 8%, by the following year.”

via Chidambaram: See ‘First Green Shoots’ of Recovery – WSJ.com.

22/01/2013

* Asian Buyers Snap Up Half of New London Homes

WSJ: “If you’ve just moved into a newly built apartment in central London, don’t be perplexed if your neighbors speak mostly Chinese.

Market-cooling measures in Asia have helped fuel interest in London’s real estate market—long a popular destination for property buyers on the prowl, says property consultancy Knight Frank. Last year, overseas buyers spent $3.5 billion on apartments undergoing construction in central London, up 22% from the year earlier.

Together, buyers from Singapore and Hong Kong snapped up nearly 40% of all such apartments in central London. Adding in buyers from Malaysia and mainland China, Asian buyers accounted for roughly half of all purchases. By comparison, U.K. buyers made up just 27% of all purchases of apartments under construction, according to Knight Frank’s latest figures. Such figures were generally consistent with those seen in 2011.

Among overseas buyers, more than two-thirds bought for investment purposes, says Knight Frank, while another third said they were motivated to buy for a child enrolled at a local university.”

via Asian Buyers Snap Up Half of New London Homes – China Real Time Report – WSJ.

21/01/2013

* Ex-minister blames China’s pollution mess on lack of rule of law

SCMP: “China had a chance to avoid environmental disasters some 40 to 30 years ago, the country’s first environmental protection chief has lamented amid worsening air and water pollution.

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But Professor Qu Geping, who has overseen environmental policymaking since the early 1970s, said pollution had run wild as a result of unchecked economic growth under a “rule of men”, as opposed to the rule of law. Their rule imposed no checks on power and allowed governments to ignore environmental protection laws and regulations.

“I would not call the past 40 years’ efforts of environmental protection a total failure,” he said. “But I have to admit that governments have done far from enough to rein in the wild pursuit of economic growth … and failed to avoid some of the worst pollution scenarios we, as policymakers, had predicted.”

Qu, 83, was China’s first environmental protection administrator between 1987 and 1993. He then headed the National People’s Congress environment and resource committee for 10 years.

After three decades of worsening industrial pollution resulting from rapid urbanisation and industrialisation, China has accumulated huge environmental debts that will have to be paid back, Qu said.

He said recently he regretted that some of the very forward-looking strategies – emphasising a more balanced and co-ordinated approach to development and conservation, that were worked out as early as 1983 – were never put into serious practice when China was still at an early stage of industrialisation.

In 1970, premier Zhou Enlai had invited a Japanese journalist to give a lecture to senior government officials on the lessons Japan had learned from a series of heavy metal pollution scandals that killed several hundred people during a period of rapid industrialisation in the 1950s and 1960s, Qu said.

“But looking back, China fell into the same trap again,” he said. “In some cases, the problems are even worse now given the country’s huge population and the vast scale of its economy.”

via Ex-minister blames China’s pollution mess on lack of rule of law | South China Morning Post.

See also: https://chindia-alert.org/economic-factors/greening-of-china/

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