THE ESSENTIAL EIGHT *
1. China Stock Rally Draws Skeptics as Citi Sees Irrational Buying – Bloomberg Shanghai Composite broke 2900 Thursday, closed at 2899.46 // Investors bought 99.7 billion yuan ($16 billion) of shares using margin debt on the Shanghai bourse yesterday, taking the outstanding value of stock purchases through borrowed money to a record 552.1 billion yuan, according to data from the bourse…The Shanghai index is valued at 10.7 times 12-month projected earnings, the highest level since 2011, according to data compiled by Bloomberg. Its 14-day relative strength measure, tracking how rapidly prices have advanced or dropped during a specified time period, has climbed to 91.3, the highest since at least 1994. // fast money in a “Xi Jinping bull market” will make people like Xi Jinping even more. It has been very hard to make money over the last 2 years, there is lots of pent-up desire aka greed. Of course there are real risks to the market going up so fast, would not be surprised to start seeing official calls for “steady” stock market gains
Related: 温州炒房团已进股市：不看逻辑 直奔券商扫货_财经网 – The Wenzhou “housing speculation army” is now rushing into the stock market…
Related: China’s levered stock market | FT Alphaville For now this momentum looks unstoppable. But because the market is being driven by leverage, at some point it is likely to reverse abruptly and fall steeply. Several factors could trigger such a reversal. Sooner or later brokers will run up against the constraints on leverage imposed by their own capital positions. Once they can no longer expand margin lending to investors, the rally will run out of steam. Secondly, China’s fundamentals are still discouraging. Nine months ago everyone was worried about shadow banking defaults and rising bad loans. The risks have not vanished. As growth slows, defaults could rise. Finally, earnings growth is deteriorating.
2. China mulls giving migrant population more equal rights – Xinhua Migrant citizens may apply for residence permits, which are linked with many rights, in cities after meeting certain requirements, such as having stable job and stable residence in a certain city and having stayed there for more than six months. Residence permit holders may enjoy many basic public services as locals, including free compulsory education, employment support, old-age care, and social welfare, said the draft of measures on the management of residence permits. The Legislative Affairs Office of the State Council released the draft Thursday to solicit public opinion.
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Related: 户籍制度改革提速 居住证分级设门槛政经频道财新网 户籍制度专家、
Related: 居住证管理办法征民意 持有人子女有望在当地中高考-时政频道-新华网 propose
3. China Broadens Pollution Pledge in Call for More Climate Funding – Bloomberg China will work to reduce the amount of greenhouse gases emitted for every dollar of gross domestic product and to boost its stock of forests that absorb emissions, Su Wei, China’s lead climate negotiator, said today. The comments are among the most significant from a Chinese official since President Xi Jinping pledged last month to begin to reduce carbon-dioxide pollution around 2030 and expand supplies of renewable power. Addressing carbon intensity is key as China emits almost twice as much pollution to achieve the same amount of growth as the U.S., according to data from the International Energy Agency. China’s carbon intensity is on par with the U.S. level in 1985…Su’s comments today add credibility to China’s pledge, according to Samantha Smith, global climate and energy initiative leader at the environmental group WWF.
Related: China says climate aid inadequate, especially Australia | Reuters Rich nations’ pledges of almost $10 billion to a green fund to help poor nations cope with global warming are “far from adequate”, particularly Australia’s lack of a donation, the head of China’s delegation at U.N. climate talks said on Thursday. Su Wei also urged all rich nations to deepen their planned cuts in greenhouse gas emissions, signaling that a joint Chinese-U.S. announcement of greenhouse gas curbs last month does not mean an end to deep differences on climate policy.
4. Shunyi Foreign Foster Parent of 11 Disappears, Critically Ill Child at Hospital | the Beijinger The Legal Daily reported Thursday that the girl, called Phoebe, is one of 11 ethnic Chinese foster children the man has been raising in various apartments around Beijing, most recently at Capital Paradise in Shunyi. The girl, who at 20 kilos is underweight for her age, is still in critical condition at the hospital after three surgeries to relieve a duodenal obstruction and kidney damage that doctors believe were caused by external blunt force. A volunteer attending to the girl claims she said she had been beaten by her foster father, who has not been seen nor heard from since Nov 24. Reports say the man, referred to as Ray, lived for a time this year in a two-bedroom flat in Capital Paradise, where neighbors complained that the foster kids would occasionally be caught rifling through the trash to look for food. Area residents say the man was a frequent customer at the Pinnacle Plaza Starbucks where he would sip coffee while his children played in and around the store // 北京：
6. Thousands of Local Internet Propaganda Emails Leaked – China Digital Times (CDT) Blogger “Xiaolan” has leaked an archive of the email communications of the Internet Information Office of Zhanggong District, Ganzhou City, Jiangxi from 2013 and 2014. The archive includes correspondence, photos, directories of “Internet commentators” (网评员), summaries of commentary work, and records of the online activities of specific individuals, among other documents. Over 2,700 emails are included in the archive, many of which include attachments of Microsoft Word documents. Xiaolan calls the leak “evidence of of the work of the Fifty Cent Party” (见证五毛党的工作), referring to commentators who are paid to write online in favor of government policies, attacking “public intellectuals,” boosting Xi Jinping’s image, and monitoring netizens’ activities.
7. 军报批徐才厚:管反腐带头腐败 管干部带头卖官_网易新闻中心 PLA Daily has started a series of 10 articles on “rectifying spirit and eliminating bad practices in the PLA” based on Xi’s Gutian speech, starts with a piece about Xu Caihou // 根据习近平重要讲话精神，围绕“以整风精神革除问题积弊”，
8. Grade Plan ‘Could Mean Pay Rise for Graft-Prone Civil Servants’ – Caixin A Communist Party plan to grade civil servants could be a step toward giving graft-prone government workers a pay increase, one expert says. The party’s Central Leading Group for Comprehensively Deepening Reform agreed at a December 2 meeting to introduce a system to grade civil servants. The country’s 7 million civil servants, particularly those in less-developed regions and at lower levels, have been asking for pay rises in recent years. The party’s plan is a change from linking their pay to their official ranks, and could mean they get higher salaries even without a promotion
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BUSINESS, ECONOMY AND TRADE *
Demand for Steel, Iron Ore to Grow Little Next Year, Institute Says – Caixin The country will need 720 million tons of refined steel products next year, 1.41 percent more than this year, the report published on December 3 by China Metallurgical Industry Planning and Research Institute said. Some 834 million tons of crude steel will be needed, up 1.71 percent. The country would use 715 million tons of refined steel products this year, about 3.2 percent more than last year, the institute said. It would use 820 million tons of crude steel, 5.26 percent more than in 2013.
China’s CBRC Tackles Wealth Management Product Risks, MNI Says – Bloomberg The China Banking Regulatory Commission will let wealth-management products sold by commercial banks invest in fixed-income products including cash, bank deposits, repos, central bank paper, bonds, preferred shares and asset-backed securities, according to Market News, citing the draft document. About 30 billion yuan ($4.9 billion) of the 2.8 trillion yuan of shadow banking assets will go back on banks’ balance sheets under the proposed new rules, Market News said, citing CBRC estimates
银监会拟鼓励理财产品直接投资头条新闻中证网 on the China’s CBRC tackling WMP risks, this article says they will not be allowed to buy shares in the stock market, but will be allowed to buy preferred shares // 可投资优先股、资产支持证券 不得投资二级市场股票及相关基金 中国证券报记者4日获悉，银监会创新监管部日前就《
China opens projects worth billions to private investors – Xinhua The Chinese Ministry of Finance (MOF) rolled out 30 projects on Thursday to solicit private capital in the form of a public-private partnership (PPP). These projects, worth a total of 180 billion yuan (29.3 billion U.S. dollars), include water and heating supply, sewer systems, garbage disposal, underground pipe networks, medical care, sports facilities and other urban infrastructure. Both domestic and foreign investors are welcome to take part in the construction and operation of these projects as China is striving to lower government spending and improve public service.
China’s Tax Authority Targets Income of Foreigners, Wealthy Chinese – WSJ PricewaterhouseCoopers says many local tax bureaus have started to look more closely at income that comes from stock options and grants this year. Greater attention is also likely to be paid to the overseas assets of wealthy Chinese. China, like the U.S., is one of the few countries in the world that demands tax on citizens’ global incomes, but not many Chinese even know about this policy…Foreigners who don’t comply with Chinese rules face bigger penalties. In the past, those who were found underpaying their taxes just needed to cough up the difference and pay a small penalty. Starting this year, they may be restricted from leaving China until their back taxes are paid, according to a joint statement by Beijing’s tax authority and police bureau.
Best Buy to sell China business, focus on North America | Reuters U.S. retailer Best Buy Co Inc (BBY.N) said on Thursday it will sell its struggling China business, Five Star, to domestic real estate firm Zhejiang Jiayuan Group in order to focus on its North American operations. The world’s largest consumer electronics chain didn’t disclose financial terms of the sale of the 184-store network, announced in a statement.
Kaisa sales target at risk amid questions over ban on project sales | South China Morning Post Analysts are trying to ascertain what prompted the government action and what impact it will have on Kaisa’s sales this month. There is also no word on the whereabouts of its chairman, Kwok Ying Shing, who is said to have been detained by mainland authorities. // 佳兆业多个深圳楼盘被锁定，
“房屋永久产权” 再度引发热议-今日头条-手机光明网 reports that government may change home “lease period” from 40, 50, or 70 years to permanent ownership going around the Chinese Internet, big deal if true, skeptical // 2日，环球网发布一篇《70产权或退出历史舞台，
POLITICS AND LAW *
Head of Sinopec Oil Field Services Firm Said to Come under Investigation – Caixin Xue Wandong, general manager of Sinopec Oil Field Service Corp. (SOSC), was detained during a meeting in a suburb of Beijing on December 3, the sources said. Sinopec held a meeting of its Communist Party members to discuss the situation, one of the sources said. Sinopec spokesman Li Dapeng said the company has dismissed Xue and launched an investigation of its own…Xue spent about 20 years in Sinopec’s Shengli oil field in the eastern province of Shandong, rising from a low-level technician to deputy director of the Shengli Petroleum Administration Bureau from 2000 to 2005.
Fei Chang Dao: On China’s First “Constitution Day” Baidu Bans Forums on “The Constitution” These screenshots were taken on December 4, 2014, and show that Baidu has banned users of it PostBar (Tieba 贴吧) forum from establishing forums on “The Constitution” and “Constitutional Governance.”
元老点头 外传习近平政坛“围剿”内情_中国-多维新闻网 Duowei running an interesting, if unverifiable, report about relationship between Xi Jinping and Jiang Zemin and the corruption crackdown…purports to shed some light on the Kissinger-Jiang meal in the summer of 2013 and Jiang’s statement about Xi during the meal…again, treat this as interesting gossip at best // 在取得现任常委支持后，习近平迅速推进“打周”
吕民松任山东省委常委 政经频道财新网 今年以来，宁夏军区司令员昌业廷、
自我举报退休检察官被纪检人员约谈 被指泄密/图 retired prosecutor in Anhui confesses to “mistakes” in handling of a case years ago, is questioned by local CCDI officials for “leaking secrets”
FOREIGN AND DEFENSE AFFAIRS *
How to Deal with Chinese Assertiveness: It’s Time to Impose Costs | The National Interest There are at least four types of countermeasures or actions that might constitute part of such a strategy. Responses can be categorized as military or nonmilitary. Military responses might be thought of as related to presence, operations, modernization and other steps designed to exploit another’s security weaknesses, and building partnership capacity. Non-military responses include informational, diplomatic, and economic measures. These categories of costs in turn need to be embedded in a comprehensive strategy.
Military Graft Fighters ‘Arrest Major General for Taking Bribes’ – Caixin Gao Xiaoyan, 57, was taken away by anti-graft military officials on November 27, the source said on condition of anonymity. Only a small group of people were notified of the arrest. She is vice political commissar and secretary of the Communist Party’s discipline committee of the People’s Liberation Army Information Engineering University in Zhengzhou, in the central province of Henan. Gao is the first female general to be involved in a corruption investigation since the party held its 18th congress in late 2012 and launched a major campaign against corruption shortly afterward. That campaign has netted thousands of officials, including senior military figures. Gao was arrested for taking bribes in building projects she oversaw in her previous job, the source said. She served as political commissar at the 309 Hospital in Beijing, which was a branch of the PLA’s General Hospital and is now affiliated with the PLA General Staff Department. Gao held the job from late 2005 to 2012.
Obama’s Trip to Asia-Carnegie-Tsinghua Center In this podcast, Paul Haenle and Randall Schriver discussed the trip’s overall impact and the important agreements made during a summit between Obama and Chinese President Xi Jinping. Schriver highlighted the success of the APEC summit and Obama-Xi talks, while also acknowledging that much work remains for both sides to fulfill agreements on trade, military, and climate issues. These understandings, Schriver concluded, provide positive momentum and constructive goals for bilateral relations, although underlying tensions must be addressed.
A Step Forward for Beidou, China’s Satellite Navigation System – NYTimes.com The Maritime Safety Committee of the International Maritime Organization, a United Nations body that sets standards for international shipping, formally included Beidou in the World-Wide Radionavigation System during its Nov. 17-21 meeting. This means that the Chinese system has become the third system, after GPS and Russia’s Global Navigation Satellite System (GLONASS), recognized by the United Nations body for operations at sea.
Xi Jinping urges boosting development of military equipment system – Xinhua Addressing a conference of the People’s Liberation Army (PLA) on equipment, held here from Wednesday to Thursday, Xi said advanced weaponry is the embodiment of a modern army and a crucial support for national security and rejuvenation. The equipment system building should be information-led, and pay great attention to the weaponry’s quality, said Xi. The equipment system building is now facing a period of strategic opportunities and at a key point for fast development, he noted. // [视频]习近平在出席全军装备工作会议时强调 加快构建适应履行使命要求的装备体系 为实现强军梦提供强大物质技术支撑新闻频道央视网(
Indian critics of Tibet dam accused of “exaggerating” dangers | Liu Qin – China Dialogue Tibet’s first major dam, the Zangmu hydropower station, started generating electricity at the end of November. This prompted complaints from Indian media that Chinese dam building on the Yarlung Zangbo River could reduce water flow and cause environmental damage downstream in India. But Chinese experts say vested interests in India stand to benefit from playing up the threat of Chinese hydropower and that only dialogue and partnership will solve Asia’s water disputes.
Premier Li meets China-Japan friendship committee – Xinhua Chinese Premier Li Keqiang Thursday met with a Sino-Japan friendship group and urged Japan to properly handle issues that affect healthy growth of bilateral ties. Li made the remarks while meeting with members of the Fifth 21st Century Committee for China-Japan Friendship, who were gathering in Beijing for a plenary session held on Wednesday and Thursday.
China denies report of island-for-debt deal with Venezuela – Xinhua China denied on Thursday that Venezuela intended to pay its debt to China with an island, calling the stories “groundless” as each loan repayment so far has been “normal”. Chinese Foreign Ministry spokeswoman Hua Chunying was responding to reports in Hong Kong media that Venezuela’s Blaquilla Island might be transferred to China to pay off its debts. Hua said China and Venezuela have established mature and efficient cooperative mechanisms on financing. “Currently, each repayment of capital and interests on China’s loan performs normally,” she stressed.
肯尼亚以涉嫌金融诈骗为名抓捕77名中国人_网易新闻中心 77 Chinese detained in Kenya, sounds like for financial crimes involving stealing information online // 据《环球时报》记者了解，中国驻肯尼亚使馆相关人员已前往交涉，
BlackBerry Says Western Nations Wouldn’t Allow China Bid – Bloomberg BlackBerry Ltd. (BBRY) Chief Executive Officer John Chen said in July that he wouldn’t be able to accept a takeover offer from a Chinese company even if he got one because Western governments that rely on his phones probably wouldn’t allow it. “We probably are unable to do that,” Chen said in an interview that was taped on July 23 and will air tonight on Bloomberg TV’s “Studio 1.0,” when asked if he would sell BlackBerry to a Chinese company. “One of our biggest install bases is government in the so-called Five Eyes countries where governments share intelligence. I think there will be a lot of regulatory issues and concerns.”
鲁炜邀美国大学生访华 施展“互联网外交”魅力-新华网 Xinhua on Lu Wei’s charm and “Internet Diplomacy” during his dc visit
TECH AND MEDIA *
Intel to invest $1.6 billion in China factory | Reuters As part of the upgrade, Intel said in a statement on Thursday it would bring its most advanced chip-testing technology to China. In exchange it will receive local and regional government support for construction. “Deploying our newest advanced testing technology in China shows our commitment to innovating jointly with China,” Intel executive vice president William Holt said in the statement. “The fully upgraded Chengdu plant will help the Chinese semiconductor industry and boost regional economic growth.”
China announces crackdown on animation and gaming websites-TechInAsia mobile looks to be next // You wouldn’t think that a website dedicated to streaming cartoons would be a likely place for sedition and law-breaking. But apparently in China, it can be. On Thursday, China’s Ministry of Culture announced a new crackdown on illegal websites, with a dual focus on animation and gaming sites.
SOCIETY, ART, SPORTS, CULTURE AND HISTORY *
Saving China’s dying villages | Andrew Stokols The situation in Songyang County and many other areas in rural China is that the most intact villages are often the poorest and most remote, such as Diaotan Village. It’s remoteness makes its buildings and environment less tainted by modern structures. But it also means that the social situation there is difficult. Towns in the valley are better off, but there are more development pressures nearby. Indeed, in the lower elevation areas reaches of Songyang County, the villages and factories, new apartment complexes all blur into each other to create an odd jumble of environments: bits of rural villages mixed with the new mass housing that has been built to re-house villagers.
Is This Temple For Real? China Tries to Stamp Out Fake Monk Scourge – – WSJ Officials have begun certifying authentic Buddhist and Taoist temples to help distinguish them from their fake, profiteering cousins, the official news agency Xinhua reported on Thursday. “There have been some non-religious sites employing fake monks who tricked tourists into donating money or buying expensive incense,” Liu Wei, a State Administration of Religious Affairs official, was quoted by the agency as saying. As part of the scam crackdown, the government will also make the names of legitimate temples available online for perusal by a leery public, Xinhua says.
In His Master’s Footsteps – Video – NYTimes.com Painting in his Beijing studio, Liang Zhaojin says his work has been heavily influenced by studies with Zhang Daqian, revered as one of China’s greatest modern painters.
电影《黄克功案件》宪法日首映 曾请中纪委审看深度新京报网 昨日，
北大综合改革方案获批 部分院系取消学术硕士国内新京报网 《
ENERGY, ENVIRONMENT, SCIENCE AND HEALTH *
China Sets Jan. 1 Deadline for Ending Transplants From Executed Prisoners – NYTimes.com Dr. Huang Jiefu, a surgeon in charge of revamping China’s organ transplant system, said at a conference in the southern city of Kunming on Wednesday that the number of voluntary organ donors had risen quickly over the past year, but that overall numbers were still quite small, the newspaper The Southern Metropolis Daily reported. As a result, China will face extreme pressure in providing suitable organs for the estimated 1.5 million people awaiting transplants.
Exclusive: Trafigura China Employee Arrested Over Alleged Oil Fraud – Business Insider Chinese police have arrested an employee of commodity trader Trafigura as part of an investigation into an alleged $32 million gasoline trade fraud, according to an official arrest warrant seen by Reuters. Tian Meng, 39, who works at Trafigura’s oil marketing team in Beijing, has been held without charge in the northern city of Cangzhou since August, three sources with direct knowledge of the situation said.
发改委：将启动一批沿海核电工程 会引入民间资本行业资讯中证网 NDRC says will start several nuclear plan projects in coastal areas, will open them to private investment // 中国核电业在逐步褪去日本福岛核事故的阴影。昨日，
New nuclear tech not yet fully up to standard, China energy official says | South China Morning Post Key technology and equipment being deployed as the mainland shifts towards advanced nuclear reactors were “still not completely up to standard”, an official with the country’s energy regulator said yesterday. Liu Baohua, the head of the nuclear office at he National Energy Administration, said the mainland also needed to improve its regulatory and legislative environment for nuclear power.
Oil’s Plunge Creates Window for China to Free Retail Fuel Prices – Bloomberg “Key reform like this cannot happen during high crude prices, as the government has a duty to keep inflation in check,” said Lin Boqiang, an adviser at the nation’s top economic planning agency. “A lower price environment provides the opportunity to make the whole pricing mechanism independent and transparent.” That agency, China’s National Development and Reform Commission, currently reviews international crude markets every 10 days to decide domestic prices of fuels like diesel and gasoline. Even when crude surged, the NDRC refused to raise retail prices for fear of stoking inflation, crimping profits for refiners such as Sinopec (386) and PetroChina.
FOOD AND TRAVEL *
广州国有土地变私人农庄 政府官员常来是熟客新闻腾讯网 on a farm in Guangzhou that just produces for local officials // 广州市番禺区有个名为“QQ农庄”的地方，不对外经营，
Beijing prioritizes conservation in urban planning – Xinhua would have been great to do this 10 years ago // Beijing has decided to prioritize the conservation of its historic landscape in the capital’s urban planning, local authorities said on Thursday. As both a historic and global city, Beijing must combine cultural heritage with architectural innovation, said Beijing Vice Mayor Chen Gang. Beijing is about to finish modifying its urban planning, and most government efforts have been spent on how to better conserve Beijing’s historic landscape.
揭明星监狱生活：房祖名读书 张默挑豆子剥大蒜_网易新闻中心 doesn’t sound like life in Beijing jail for celebrities on drug charges is so bad…
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