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Sunday Papers

The Sunday Paper – ‘Deepening Reform’: The Organization and the Emerging Strategy

What the heck’s going on in China? Since the Third Plenum last November it’s been clear something big is underway; but what? In the paper I’m highlighting this week Professor Barry Naughton, the So Kwanlok Chair of Chinese International Affairs at the Graduate School of International Relations and Pacific Studies at the University of California, San […]

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Sunday Papers

The Sunday Paper – The Rise of Multipolarity, the Reshaping of Order: China in a Brave New World?

With the kind permission of Professor Dr. Gerald Chan 陳智宏 Professor and former Head of Department of Political Studies at the University of Auckland, New Zealand I’m posting this paper (click the link below for the paper in full) that discusses the new world order. This is the one where China is a reluctant perhaps but nonetheless […]

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Thoughts

I Hate to be the One to Say it; but China is Hard Landing

Summary conclusion To be clear; not will/may hard land but is hard landing. For several years I swatted away the notion that this was going to happen; because it didn’t. Indicators are now though pointing unequivocally in this direction and only the trajectory and speed of descent are moot. This will rattle some but for value […]

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Sunday Papers

The Sunday Paper – Is Tibet Entitled to Self Determination

Last week a friend highlighted an article that appeared originally in ‘The Hindu’ on August 25th beneath the headline ‘Dalai Lama in talks to return, Chinese official’ (http://www.thehindu.com/todays-paper/dalai-lama-in-talks-to-return-says-chinese-official/article6348150.ece). It seems a group of Indian journalists were recently invited for a tour of Tibet and one at least received the impression that the Dalai Lama (in […]

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Sunday Papers

Solid Comment – George Magnus on the anti-corruption campaign and the economy

This went out last month and in it George speculates on some of the fallout from what he concludes is ‘..the most important political campaign in China for 25 years.’ He candidly admits there are ‘Trenchant questions which I can’t answer, and which most people can only speculate about.’ but has a go anyway. He […]

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Sunday Papers

The Sunday Paper – Towards Recoupling? Assesing the Impact of a Chinese Hard Landing

The authors of this paper don’t mince words. China can’t escape a hard landing. Why? One of their most compelling arguments is that few before have managed it. The historical precedent of economies that come off a rapid-growth-plateau is for a similiarly rapid adjustment to lower norms; why should China be any different? Assesing the […]

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Sunday Papers

The Sunday Paper – China Primer

China’s Economic Rise – Congressional Research Service The full title of this piece, published a little over a week ago by the Congressional Research Service (“Informing the legislative debate since 1914”), is ‘China’s Economic Rise: History, Trends, Challenges, and Implications for the United States’. It’s an excellent high-level summary of where China stands today, and […]

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Thoughts

China Corporate Earnings: H1 Scorecard and H2 Prospects

[I’m not going to present a detailed analysis here just my impression of releases to date from companies I care about (and quite a lot I don’t)] Summary conclusion A dull H114 earnings’ season is drawing to a close and prospects for H2 seem no more thrilling. The market in aggregate remains ‘cheap’ but without […]

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Sunday Papers

The Sunday Paper – Who Thinks What of Whom?

This report, from July this year, is from the Pew Research Center and “..examines global public opinion about the United States, China and the international balance of power.” Pew Attitudes Report July 2014 The full report can be accessed by clicking the link above or if you’re short on time there’s a five page summary […]

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Sunday Papers

The Sunday Paper – The Golden Dilemma

The Golden Dilemma This paper (click the above link) is from the Financial Analysts Journal, July/August 2013 edition. In it the authors Mr. Claude B Erb and Mr. Campbell R. Harvey investigate six of the most commonly cited reasons for owning the yellow metal and conclude only one, an argument about under-ownership, may have some […]

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Thoughts

HK Residential Property: 32-Year Performance Summary; and Where Next?

Introduction In January 1982 a good sized flat (by Hong Kong standards) on Hong Kong island* cost just over H$1, 000/ft². 32-years later, in January 2014, the same flat cost just over H$13, 800/ ft². That’s a total gain of 1, 280% or a 32-year CAGR of just over 8.5%. Counting back from January this […]

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Thoughts

Markets Pause Justifiably; and Other Holiday Ruminations

I’ve just returned from a trip taking in London, the South West of England, Barcelona and Majorca. Time out of the office is where most useful thinking gets done and having just spent some of the former I thought I’d jot down some of the latter while still fresh. Whether ‘useful’ or not though only […]

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Sunday Papers

The Sunday Paper – The Elaborate Paper Tiger: Environmental Enforcement and The Rule of Law in China*

The Elaborate Paper Tiger This paper (click the link above) is a good introduction to the legal framework that surrounds environmental protection, and why it doesn’t work as well as it might, in China. Perhaps one of the most telling observations in this piece is one Professor Ryan (http://law.lclark.edu/live/profiles/286-erin-ryan/) mentions as an aside at the […]

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Sunday Papers

The Sunday Paper – Xi JinPing’s Inner Circle – Part II: Friends from Xi’s Formative Years

Xi Jinping’s Inner Circle – Part II Following last week’s paper from Mr. Cheng Li, a director of the John L. Thornton China Center and a senior fellow in the Foreign Policy program at Brookings (he’s also a director of the National Committee on U.S.-China Relations and focuses on the transformation of political leaders, generational change […]

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Sunday Papers

The Sunday Paper – Xi JinPing’s Inner Circle – Part I: The Shaanxi Gang

Xi Jinping’s Inner Circle – Part I With the kind permission of Mr. Cheng Li, director of the John L. Thornton China Center and a senior fellow in the Foreign Policy program at Brookings; also a director of the National Committee on U.S.-China Relations (Mr. Li focuses on the transformation of political leaders, generational change and […]

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Thoughts

Thinking About Inflation*

[*Throughout this piece I’m using the term inflation to mean price rises as that’s what most understand by the term. Not that long ago though it referred specifically to a rapid growth in money base and credit. Austrian school commentators like Henry Hazlitt insisted on using the term in its older sense to make clear […]

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Sunday Papers

The Sunday Paper – Who Will Feed China in the 21st Century?

Who will feed China in 21st Century This paper is from June this year and was produced by The World Bank Development Research Group’s Agriculture and Rural Development Team. The authors, Ms. Emiko Fukase and Mr. Will Martin, come quickly to the conclusion that China will mostly feed itself in the medium term and they […]

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Thoughts

Hong Kong Home Prices – Something’s Gotta Give; But It Probably Won’t

Preamble If not later this week (with the release of the Centa-Citi Index on Friday around 1600 http://hk.centadata.com/cci/cci_e.htm) then at some stage in the very near future we’ll learn that Hong Kong home prices have hit new all-time highs. A little under a year ago I wrote a note* explaining how one of the key […]

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Sunday Papers

The Sunday Paper – Does Active Management Pay? New International Evidence

Wazza Buffet created a stir in his last letter to shareholders recommending how cash should be invested after his death. “My advice to the trustee could not be more simple: Put 10% of the cash in short-term government bonds and 90% in a very low-cost S&P 500 index fund. (I suggest Vanguard’s.) I believe the […]

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Thoughts

Heavy Fog in New Territories. China Cut Off – That HSBC report and Little Hong Kong

Preamble The title of this blog is inspired by a headline that appeared in The London Times on October 27th 1957 and has become an iconic quotation ever since (originally Heavy Fog in Channel. Continent Cut Off). It’s famous for highlighting the small minded yet still imperious nature of the British. Then, as now, a […]