Ma Wenluo 's articles

Current Review:
Human Flesh Search-China-Style Anti-corruption
A local government official has been brought to justice recently for malfeasance, not through any Chinese bureaucratic sleuthing, but because of the efforts of China's active netizens. The "human flesh" search (the exact English translation from the Mandarin), a scouring of the net waves for data and, particularly, pictures of a target subject, originating from www.mop.com, an entertainment website, is becoming the anti-corruption weapon of a public tired of seeing its public moneys wasted by petty bureaucrat
December 29th,2008
Finance & Banking:
Banks' Lending Reluctance Undermines Stimulus Plan
With the help of foreign shareholders, Chinese commercial banks reinforced risk management after going public. During the present downturn with its already growing risk of NPLs, the government is asking banks to increase loans to prop up firms in difficulty, but meanwhile their boards require management to avoid risk, creating a dilemma.
December 24th,2008
Current Review:
Coastal Provinces Determined to Dump Labor Intensive Industries
China's export growth in November, at –2.2%, was the first negative growth in the past seven years and reveals the serious economic slide in China's coastal areas that depend mainly on exports. Southern China's rich Guangdong Province, producer of 1/3 of China's goods for export, is the biggest loser. But this is strengthening the determination of these areas to readjust their economic structu
December 15th,2008
Economy:
Beijing Considers Municipal Bonds as Economy Booster
A program on strengthening debt management of local governments drafted by the Ministry of Finance (MoF) has recently been submitted to the central government for approval after consultation. Beijing policy makers seem to agree that allowing local governments to issue bonds is a prudent step to help prevent drastic economic slowing.
November 3rd,2008
Finance & Banking:
China Implements Basel II Ahead of schedule
While governments around the world fret about their banking sector's bad debts and banks here and there fall or are nationalized, the Chinese government has announced that it will further push banks into the market to compete. The China Banking Regulatory Commission (CBRC) last week issued the first batch of supervision regulations under Basel II (the Basel Capital Accord), including IBR (Internal Rating Based Approach), which is relative to calculation of CAR (Capital Adequacy Ratio), other calculation rules, technical standards, and regulatory requirements.
October 20th,2008
Current Review:
Why No Mainland Chinese Nobel Laureates?
China is the workshop of the world, but due to the lack of R&D and innovative capability, key technology in the information industry still originates in foreign companies. In science and technology, Japan is infamous for imitation, and is criticized for its "lack of innovation."However, Japan is geographically about as large as China's Fujian Province, with a population of around only 127 million, compared to China's 1.3 billion. Sixteen people born in Japan have won the Nobel Prize since World War II. The Chinese got metal at the Olympic Games. The Japanese get Nobel Prize medals.
October 10th,2008
Money & Investing:
PBoC Allows Urgent MTN Issuing to Bolster the Market
Huadian's second issue of MTN in 2008, just two days after the central bank again allowed the issuance of MTN, indicates government efforts to boost the financial market. The central bank first launched MTN in April this year, but suspended it after two months due to opposition from other government agencies, such as the National Development and Reform Commission (NDRC) and China Securities Regulatory Commission (CSRC).
October 8th,2008
Money & Investing:
Taiwan Moves to Revive Its Stock Market, Mainland China Pays Lip Services
The government had earlier stepped in with reforms to steady the market but, as those measures proved ineffective, it has so far resisted the temptation to interfere this time. As the market has continued to slump below 2800, it is instructive to glance across the Taiwan Straits and note the different approaches adopted by Beijing and Taipei about how to rescue the market, or whether to rescue the market at all.
July 8th,2008
Current Review:
The Great Green Card Debate in Greater China
A huge and virulent dispute over foreign residency permits for officials has spread across the straight from Taiwan to Hong Kong and mainland China, and from politicians to businessmen, becoming increasingly hot in Chinese society.
June 23rd,2008
Regulation:
CSRC Ups Regulations Across Whole Securities Industry
For 10 years, regulation of intermediary organizations, starting from scratch, has gradually deepened.
June 18th,2008
Finance & Banking:
Shanghai's Financial Center Ambition at a Crossroad
Storied Shanghai, the focal point of China's industrial and commercial might, appears to have lost its way. So much of what is now happening in Shanghai is running away from its earlier goals. Its dreams have been to grow into a center of international finance, a money and services nexus to rival the other great financial hubs, a London or New York of the East. It's not happening. Financial firms who rushed into Shanghai 10 years ago are now escaping from the city, and industrial and commercial enterprises are moving out with them. Shanghai is not about to turn into a ghost metropolis, but change has to come if it is to regain its lost momentum.
May 7th,2008
Money & Investing:
A-share Alchemy Exposes the Bubble of "Made in China"
The recent and continuing decline of China's A-share market, so far by almost 50%, from 6124 points half a year ago to the current 3100 points, has not only saddled investors with huge losses, but also exposed holes in China's industrial sector. Manufacturers who had nicely padded their profit reports with rich returns from securities investments in 2006 and 2007 have now seen share prices plunge through the floor, taking their profits with them. The situation cannot but remind analysts of the lead up to Japan's bubble economy in 1980s.
April 22nd,2008
Finance & Banking:
China Should Press for Wider Openness to US Financial Industry
While China has followed its promises to widen access to its financial markets with actual steps in that direction, it seems the US, and Europe also, is doing just the opposite and becoming increasingly protective.
April 15th,2008
Energy:
Sinopec a Victim of China's Price Distorting Energy Policy
When China's biggest oil refining enterprise, China Petroleum & Chemical Corporation(Sinopec), issued its disappointing financial performance for 2007, the international price of crude oil was once again on the verge of surpassing $110 per barrel. This not only means that Sinopec will have to continue coping with high crude oil prices but also represents a significant challenge to China's controversial energy policy.
April 9th,2008
Money & Investing:
Market Turns, and QDII Fund Burns
Awash in liquidity, individual Chinese investors are as eager to invest their money in overseas stock markets as the government is to channel excessive liquidity outside the country. Both are looking for fat returns. But the learning curve is steep, and the process to success could be very long.
April 3rd,2008
Money & Investing:
New Accounting Standards Lift A-share Performance
To say that profits of China's listed companies are apparently growing at an impressive clip, faster in 2007, even, than in 2006, is like saying the sun shines in the Sahara. This is massive. But it's not merely a matter of sales success in the market or a phenomenon of the factory floor. Besides China's continuously growing economy, increasing operating income and exchange gains led by RMB appreciation, the newly issued China Accounting Standards (CAS) are somehow contributing to many a listed company balance sheet.
March 21st,2008
Money & Investing:
Crisis and Opportunity in CIC's "Fire Sale" Acquisitions
China's companies are working hard to build financial muscle by expanding abroad. Success brings flowers and the pop of fine champagne. But it can also bring pain and exposure to risk and downturn.
March 17th,2008
M&A:
China's Capital Outflow: Facing Political Risks and Learning the Ropes
Chinese enterprises mainly use their own funds for their overseas investments. Government departments approve such investment plans according to the financial situation and asset liability ratio of the enterprise. After China's commercial banks have all finished their reform and gone public, their operation aims must be to maximize the interest of investors, including overseas share-holders. It will be impossible for them to disregard risks in support of overseas expansion of SOEs.
March 10th,2008
Money & Investing:
A-share Listing Will Open to Foreign Companies
Foreign companies are set to gain greater access to China's domestic A-share market, a top securities regulator said Thursday. Yao Gang, newly appointed vice chairman of the China Securities Regulatory Commission, said at his public debut that the commission is seriously studying the issue of allowing foreign companies to list in China.
February 29th,2008
Current Review:
Not in My Backyard: China's Rising Middle Class Growing Environmental Contention
Considering that real estate is a major wealth for Chinese residents, environmental pollution brought about by large-scale construction projects will directly harm the interest of the homeowners. Residents of China's cities have been trying to participate in the in the decision-making process to reduce the negative influences of development. It is likely that investors, local governments, banks and builders will now have to contend with the growing awareness of other stakeholders such as local residents who will want to uphold their rights when comes the time to make a feasibility research report.
February 28th,2008
Money & Investing:
What the US Does (n't) Allow China to Buy?
When Chinese enterprises, with a large piles of fresh-off-the-US-presses US dollars, seek to enter the US economy, they have found repeatedly that while they are most welcome to lavish money on America in the form of debt, their attempts to purchase American companies are often met with hostility.
February 26th,2008
Commodities:
Iron Ore Price Hikes Will Force China's "Going Out"
China, the world's largest steel producer, consumer and exporter, as well as iron ore importer, will have to accept at least the 65% boost in the price of iron-ore reached between major steel producers in Japan and elsewhere and the behemoths that control iron-ore production.
February 22nd,2008
M&A:
China Overseas Investments Shifting to Real Assets
The Chinese aluminum giant, Aluminum Corporation of China Limited (Chinalco), has bought a 9% stake in Rio Tinto for $14.05 billion, indicating that industrial investment has again become popular as part of China's overseas investment strategy.
February 15th,2008
Economy:
How China's Snowstorms Could Sweep the World Economy
And the Prime Minister Wen Jiabao said 2008 could be "the most difficult year for China's economy."
January 28th,2008
Finance & Banking:
Shanghai Re-Sparks Dreams of an International Financial Center
After several years' suspension of the development of Shanghai as an international financial center, the city has finally taken another step towards achieving its goal.
January 27th,2008
Money & Investing: Shibor and Libor
Shanghai to Set Yuan Asset Pricing Benchmark
Besides expectations of appreciation, yuan assets are becoming more popular among global investors because the pricing for yuan assets is also being marketized, relieving worries of currency price controls.
January 24th,2008
Money & Investing:
Financial Regulatory Reform Spurred by Subprime Crisis
Chinese financial supervisors are busy learning a lesson from America's subprime mortgage crisis as they realize that increasingly open financial markets and a proliferation of complicated trading products bring new challenges to their work.
January 14th,2008
Current Review: Xiamen PX project
Environment to People
Scientific outlook on development is doing its job
December 22nd,2007
Money & Investing: RMB-denominated bonds for Foreign Banks
Panda (Bonds)-Hugging
Allowing incorporated foreign banks to issue RMB-denominated stocks and bonds will provid foreign companies with new opportunities for finance and expansion of sales in China.
December 16th,2007
M&A: Foreign predators
Navigating a Regulatory Maze
For an M&A triggered by a foreign investor, the whole approval process will be a maze set by scattered regulations from different ministries.
December 13rd,2007
Economy: SEDIII in Beijing
Keep Talking
China has seen Paulson as a transitory leader, and Beijing will need to wait until after next year's American election for a longer-term policy maker. To Paulson, the most important thing is that SED remains after he leaves.
December 13rd,2007
Money & Investing: securitization
Buck the Trend and Keep Trying
The American sub-prime crisis is sweeping the entire planet, but it doesn't seem to have any effect on the progress of China's efforts at asset securitization, which apparently is learning from Wall Street the techniques of diversifying risks of its financial system.
December 1st,2007
Finance & Banking: overseas hunting
Moving out Meets Challenges
In the upcoming strategic economic talks, China will urge the US to further open its banking market to Chinese banks tit for tat while dealing with a request for China to open its own financial market to US banks.
November 28th,2007
Finance & Banking: universal banking
Giant Strides Must be Made
2007 has seen the rise of continuing stride in the move towards universal operation and encouragement in cooperation
November 27th,2007