Ministry of Tech Releases Unicorn Company List That Includes Fraudsters and Loan Sharks

Sina: 科技部认证独角兽:点融网创始人任董事公司涉嫌诈骗
Recently, the unicorn became a hot word for the A-share market. Not only did the major exchanges throw out olive branches, the investment banking circle and the financial circle also looked forward to the introduction of the New Deal. The popularity of the A-share market was even more pronounced. The release of unicorns by the Ministry of Science and Technology itself is a good thing, but from this list, people can not help but find a few problems, so that investors are scared of a cold sweat.

...I. Lending Po scored 107.7 billion U.S. dollars to advance the top 10 unicorns

Borrowing loan, domestic P2P network loan platform. The business model is "acquaintance borrowing", no need to borrow money, platform users only need to lend money according to their familiarity and trust to the borrower. Lending treasure not only has a high overdue management fee, but its collection system is also "very deep." Naked bargaining, violence and intimidation ... to remove the spread model, acquaintances and risk control, lending Po's collection mode has also been questioned. It is reported that after the borrowers on the lending platform are overdue, they face multiple lenders such as lenders, lending and loan collection agencies or lending treasurers. If the company with such a prominent problem takes the fast track of A shares, it will inevitably affect the purity of the unicorn return.

  In addition to borrowing money, the unicorns announced also include Renren Credit, Microfinance, Point Fusion, and such small loan companies. Recently, the founder of the financial network was involved in the fraud storm.

...Point Ronghua founder Guo Yuhang or 220 people involved in the vortex was deceived more than 30 million

  According to the list of unicorns issued by the Ministry of Science and Technology, Point FusionNet has a valuation of US$1 billion, but the company’s founders have recently been involved in a fraudulent storm.

  According to China and P2P insider information, Guo Yuhang, the founder of Point Fusion Network (registered red envelope), was involved in the fraud vortex. Shanghai Jintong Advertising Co., Ltd., who was the director, suddenly complained by more than 220 investors that it was The company's "paid for you" went as low as tens of thousands of dollars and as much as several million dollars.

  In January 2016, Guo Honghang, the founder of DotRay.com, began serving as a director of Shanghai Jintong Advertising Co., Ltd. Obviously, Guo Yanghang, who was a lawyer, could not be unaware of “pay for you”. The fact that the business does not comply with regulatory regulations.

What A Depression Looks Like

Depressed people don't get out of bed. Similarly, a depressed society doesn't go out shopping, but instead stays home to shop online. There are other major factors at work such as technology and central bank policies propping up asset prices, but if technology and inflated asset prices occur during an economic recovery, people go out and shop. We'd see a decline in retail, but not a collapse. This is a depression and right now we are near a peak in post-2008 economic activity. The bottom is still ahead.

ZH: Starbucks Chairman: "We Took A Walk On Madison Avenue. It Reminded Me Of The Financial Crisis In 2008"
Now, as a result of what we're witnessing, we're also seeing something else and that is, there is a proliferation around the country right now of empty storefronts. We took a walk in New York two weeks ago from 59th street to 79th on Madison Avenue, and we lost count of how many empty storefronts there were in Manhattan. It reminded me of the cataclysmic financial crisis in 2008. But what's happening is very simple, the rent structures for the last 5 to 10 years, have been rising at historic rates and retailers do not have the amount of customers they had during these last 5 to 10 years and could no longer economically survive.

So they're closing stores and as a result of this, I can promise you just like I predicted in 2014 that rents are coming down and landlords are going to have to get religion, or else their stores are going to stay empty. And we're already beginning to see a different level of reception in terms of what we believe the cost of occupancy should be. And this is going to bode extremely well, specifically for us. We're adding almost 700 new Starbucks stores a year. And so we are going to take full advantage of the economic reality of this situation. And as we go forward two, three, four, five years out even though labor is going up in terms of cost of labor, we believe rents are going down and the economic model of Starbucks is going to be enhanced as a result of this macro situation. And we're just at the beginning of this trend.

Dalian Announces Buying Restrictions

Caijing: 大连宣布3月22日起执行房产限购政策 本市户籍2套以上限购
If households with household registration status in the city have 2 or more houses in Zhongshan District, Xigang District, Shahekou District, Ganjingzi District and Gaoxin Industrial Zone, the houses for sale in the restricted areas shall be suspended. Non-municipal households can purchase one set of housing in the restricted area. When purchasing a house, they must provide continuous payment of personal income tax or social insurance certificates for 12 months or more.

China Signals Negotiations With Retaliation In Name Only

Far too often international relations are filtered through the prism of diplomatic relations instead of through domestic propaganda. In the case of trade, one of the more remarkable strengths of President Trump that goes almost wholly ignored by his critics, is that he goes out of his way to explain the enemies of the American people are America's "elites," not foreign powers (it would mess up the narrative of calling him a racist xenophobe). China along with other trading powers did very well thanks to several factors, among them free trade ideology divorced from reality, development theory from World War II (helping Japan and Germany recover to strengthen them against communism became strengthen China and then ??? and then democracy) and Wall Street's capture of the Treasury and State Department to the detriment of manufacturing and domestic labor (free movement of capital overseas along with mass immigration of unskilled labor). In this case, the shift in trade policy in the United States is far more, if not nearly entirely, about realigning domestic economic and political power. With respect to foreign nations, it is about solving the negative effects caused by the U.S. dollar's reserve currency status, a topic that is still off the table for now.

China's response indicates it doesn't see a trade war brewing, yet.

CNBC: China responds to Trump tariffs with proposed list of 128 US products to target
China's commerce ministry proposed a list of 128 U.S. products as potential retaliation targets, according to a statement on its website posted Friday morning.

The U.S. goods, which had an import value of $3 billion in 2017, include wine, fresh fruit, dried fruit and nuts, steel pipes, modified ethanol, and ginseng, the ministry said. Those products could see a 15 percent duty, while a 25 percent tariff could be imposed on U.S. pork and recycled aluminium goods, according to the statement.
Some of those goods may see no dent in sales because they tend towards the luxury end of the consumer spectrum. It's possible sales could increase for that reason. Overall though, this is not retaliation at all, but propaganda for the domestic audience. China hasn't escalated with retaliation. The takeaway: negotiations are ongoing.

Full list of goods (in Chinese) at iFeng: 中国反击:拟对美国约30亿美元产品加征关税(附清单)


China Says U.S. Violates WTO Rules

iFeng: 商务部:美方违反世贸规则,敦促纠正违规措施
According to the CCTV news client on March 22, on March 21, Geneva time, the WTO announced the report of the Panel of Experts issued by China against the US anti-subsidy measures (DS437) and ruled that all 11 counter-subsidy measures involving the US violated the WTO. rule. The spokesperson of the Ministry of Commerce made a statement on this.

Both the original panel of experts and the appellate body in this case have ruled that the US counter-subsidy measures in violation of the WTO rules violate the rules of the WTO and require the US to correct its violations. However, the United States still ignores multilateral rules and continues to follow irregularities in the implementation of the WTO ruling. The ruling of the executive panel of experts demonstrated once again that the U.S. side violated WTO rules and repeatedly abused trade remedy measures, which seriously damaged the fairness and impartiality of the international trade environment and weakened the stability of the multilateral trading system.

China has consistently respected multilateral trade rules and opposes the abuse of trade remedy measures. China's enforcement of the lawsuit is to safeguard its own legitimate rights and interests, but also to safeguard the authority of the multilateral trading system and the seriousness of the rules.

The US counter-subsidy measures involved in the case have repeatedly been violated by the WTO and violated multilateral rules. China urges the US to take immediate and effective action to correct wrong practices in the investigation of countervailing subsidies against China and provide Chinese companies with a fair and stable international trade environment.

Broken Windows: 80pc of Home Sales in Some Cities Driven By Demolition

iFeng: 房企利润全面爆发,三四线城市支撑力能否持续?
This is another year of financial reporting. For most real estate companies, bright results have brought good mood. From the companies that have published financial reports, the outbreak of profits has become the mainstream. For example, the net profit of Newtown Holdings has increased by nearly 100% year-on-year, and Agile's net profit has increased by more than 150%. In the view of the industry, the most direct reason for the explosion of net profit is the increase in sales. Active land reserves and rapid turnover have contributed to the increase in sales of housing enterprises.

Centaline Property Research Center statistics show that in more than 20 housing enterprises that have published annual reports, in addition to the partially transformed small and medium-sized housing enterprises, the profits of mainstream real estate companies have fully erupted, and more than 80% of firms' profits have risen significantly in 2017.
The smaller cities have driven the growth:
After experiencing the blaze in 2017, can housing enterprises maintain their momentum in 2018? In this regard, all parties have different interpretations. From the performance targets released by housing companies, they still seem to have confidence. Xuhui, for example, set itself a target of RMB 140 billion in 2018; Jianye’s goal was to rush into the RMB 100 billion camp in three years; and Sunac proposed that the target of sales revenue in 2018 be RMB 700 billion, with a growth rate of 93%.

In this regard, Yan Yuejin pointed out that the concentration of the real estate industry continues to increase, which also prompted the housing enterprises have to do their best to sprint, because once they slow down, they will be left behind by other companies, the living space will be squeezed, so for the majority In terms of housing prices, 2018 is still a hard year.

Although housing prices are full of energy, the property market environment in 2018 will also be different from 2017. Judging from the control policy, on March 19th, Minister of Housing and Urban Development Wang Menghui emphasized once again that the regulation and control targets were unwavering and that efforts were not relaxed, and expressed that it would maintain the continuity and stability of the policies, and in particular, further consolidate the main responsibilities of local governments. .

In addition, the sustainability of the support of third- and fourth-tier cities remains to be seen. The Chain Home Research Institute believes that the third- and fourth-tier cities face problems such as population outflow and aging, and the long-term power to support the real estate market is insufficient. Research shows that the wave of transactions in the third and fourth-tier property market is mainly composed of just-needed, improved and demolished real estate. Among them, some urban local relocatees accounted for more than 80% of transactions. This shows that subsequent transactions in these cities will be difficult to maintain highs. At the same time, as local pressures for destocking are reduced and support policies can continue, even if they persist, market demand will have been effectively released in the early stages, and market demand will inevitably decline.
That bold portion is talking about intracity relocation, as in 80 percent of transactions involved people moving into new homes because the government demolished their old homes.

Chinese Cities Flooding Market With Land Sales

iFeng: 中国50大城市年内土地出让收入同比涨60% 溢价率走低
With the continuous push of the overall push of the hot cities like Hangzhou and Zhengzhou this year, the Chinese land market still shows a tendency of unabated activity around the Spring Festival.

The data released by Centaline Property Research Center on the 21st showed that since the beginning of this year, the total land sales revenue of the 50 cities with the most active land transactions reached 776.08 billion yuan (RMB, the same below), up 60.2% from 484.35 billion yuan in the same period of last year. .

During the year, the three cities with the highest revenue from land sales were: Hangzhou, Beijing and Suzhou. Among them, Hangzhou's land sales revenue reached 65.4 billion yuan, up 285% year-on-year; Beijing reached 57.3 billion yuan, up 353% year-on-year; Suzhou was 50.6 billion yuan, up 153% year-on-year.

In addition, 24 cities in Wuhan, Fuzhou, Guangzhou, Zhengzhou, Chongqing, Jinan, and Tianjin have more than 10 billion yuan in land sales income.
Premiums are coming down with the increased supply, and Beijing has seen multiple failed auctions in recent months.
It is worth noting that although land transactions are still active, however, affected by regulation, the premium rate of land transactions in hot-street cities continues to decline. Zhang Dawei, chief analyst of Centaline Property, pointed out that the premium rate of land transactions in many hot cities is about 10%, which is obviously lower than the average of 30% in the past two years.

Statistical data released by the Kerr Research Center also reflect similar trends. According to Wu Jialu, an analyst at the Krishna Research Center, in February this year, the land market continued to fall due to the impact of the Spring Festival holiday and most of the cities had fewer parcels of land for sale, but some cities rushed to consolidate more land before the end of the year, such as Shanghai, Land transactions in February in Xi'an and Wuhan were all active. In addition, from the perspective of supply, many hot-spot cities have entered the rhythm of land supply in the new year in late February.

Nationalists Rising: Tax Cuts for Immigration Reductions in Australia?

Update: One Nation got very little for its vote. One Nation rolls on tax cuts for a tummy tickle

Originally post from March 18.

The Liberals want corporate tax cuts, but Australia's One Nation party says no more tax cuts for business and they hold the balance in the Senate.
Macrobusiness: The One Nation/Coalition deal that could rock Aussie politics
The upside for ON and the Coalition in this deal very obvious:

it would hand Pauline Hanson a spectacular win, consolidating her support;

but it would also position the Coalition right along side her, recapturing some big slice of ON preferences, without them having to get their hands dirty;

moreover, it would deliver a gigantic wedge to the Labor reform agenda as it handed the Coalition a housing affordability platform, a stronger wages platform, a growth platform, a fairness platform and the upper hand in environmental values, as well as strategic policy. Plus it would preserve negative gearing for the faithful.

Everything that Labor is campaigning on would come under extreme stress and every reform loser become a natural Coalition voter.