A first glimmer of hope for China property - Asia Times

Economists currently think China’s latest plan to stop its house crisis is too little, too late – again.

However, the original wondering behind it, which is basically a state-backed apartment-buying spree, is giving rise to the possibility that Xi Jinping’s group could be on the verge of a breakthrough in taming negative risks.

The package announced Friday includes a People’s Bank of China ( PBOC ) 300 billion yuan ($ 42 billion ) lending facility for enlisted state companies to gorge on finished- but- unsold housing.

” The deal does represent a major development in the administration’s response to the home crisis”, says Andrew Batson, an analyst at Gavekal Dragonomics. The chances of a remedy really arriving are now much higher, but the answer is n’t still here.

According to Batson, it’s fair to call the plan” an early downpayment on the recent promise of a new approach” to stabilizing a sector that traditionally generates one-fifth of the country’s gross domestic product ( GDP ).

Many people were offended by the news because it was a clear answer to house sales that were up 28.3 % year over year in the January to April period. New house prices&nbsp, dropped 0.6 % in April fortnight on fortnight, marking the 10th consecutive decrease and the biggest since November 2014.

” All this bad news seems to have suddenly triggered a sense of urgency that’s powerful enough to push content motion”, researchers at Société Générale said.

No serious or large enough, though, numerous economists and analysts say.

Building is slowing quickly as the stock of unsold homes and unoccupied land is at its highest level in years, and default risks are rising among developers, from big state-owned companies to smaller personal builders.

To be sure, initiatives are still being made to make challenges similar to those in China Evergrande Group a thing of the past. Some experts believe Beijing should make much more ambitious efforts to create a house crisis-ending war chest.

Goldman Sachs scientist Lisheng Wang, for instance, thinks that deploying$ 1 trillion would only get China’s excellent housing supply back to 2018 rates.

According to Wang, “any game-changing cover easing actions, including those for accommodation destocking,” would likely require significantly more money than is currently available.

Scientist at Morgan Stanley Stephen Cheung adds that” we think the effect on house sales and home rates remains extremely uncertain” despite authorities ‘ turning more dovish on housing policy. With a funding gap below what was anticipated, the inventory-clearing effort may fail.

Despite this, the focus of this most recent work suggests that Xi’s Communist Party is working toward a more effective strategy to revive a business essential to consumer and business confidence.

As long as Team Xi continues down this path, Chief China analyst Larry Hu of Macquarie Group describes the decision to buy empty houses as “positive.” ” Looking forward, the key is&nbsp, when and at what level the central government may offer a funding resource”, Hu says.

Carlos&nbsp, Casanova, scholar at Union Bancaire Privée, concludes that” all things considered, we believe that a delicate takeoff of the real estate business may be achieved in the second half of 2024. Even some of the more negative academics have acknowledged that subsequent actions suggest a potential solution to the housing crisis.

” Although this growth demands attention, owners should be careful, as the way forward is expected to be long, challenging and riddled with hurdles”, Casanova adds.

Chen Wenjing, an analyst at China Index Holdings, claims Beijing’s decision to lower mortgage interest rates and repayment rates to historic lows reflects a new dedication to maintain the sector.

According to Chen, “lowering the down payment level and home purchase charges for people will likely increase their willingness to buy homes.”

For enthusiasm depends on how quickly Premier Li Qiang and Xi deftly overcome those challenges. Casanova claims it’s important that regional governments have been removing macroprudential controls with the covert support of the main government.

According to him, authorities repealed the country’s minimum mortgage rate while lowering the down payment requirement for first-time homeowners to 15 % and 25 % for second-time homeowners.

In first-tier locations, weak sentiment is the main culprit, especially in desirable school districts and upper-middle-class areas, never overcapacity. International owners, however, are paying close attention to large amounts of empty houses amid falling trust.

According to data from the 100 largest real estate companies, new home sales decreased by roughly 45 % in April from the previous month to 312.2 billion yuan ($ 44 billion ). That came after the March average dropped by 46 %.

The odds that Xi’s staff may “expand the size may possibly be exciting”, says analyst&nbsp, Karl Chan&nbsp, at JPMorgan Chase. Although we’re still unsure about whether the range is large enough to cause a healing, this appears to be the best course of action.

The history here is essential, Batson says. ” What broke down in half- 2021, with the fiscal strains of big private- field developers, was household confidence in the presales system, a problem more equivalent to a bank run”, he explains.

In the same way that bank depositors do n’t want to risk losing their money to a troubled bank, mainland homebuyers today do n’t want to risk that a troubled developer wo n’t be able to provide the housing they have demanded. The longer this dynamic drags on, the more it undermines confidence.

Therefore, stabilizing the supply side of the housing market, i .e. the developers, while at the same time supporting the demand side, which is made up of households, is essential for an effective policy response.

To Batson’s mind, a series of failed initiatives to stabilize real estate have been hamstrung by three problems.

One, a hyper- focus on the demand rather than supply side. Two, a disinclination to provide sufficient scale of direct financial support from the central government. Three opaque attempts to boost the market that only have a small positive effect on confidence.

” Friday’s announcements mark a step forward on all three fronts, although these issues have not yet been completely overcome”, Batson says.

Tao Ling, the central bank’s deputy PBOC governor, stated at a press conference on May 17 that commercial banks should encourage local state-owned businesses to purchase unsold, unrestricted homes and convert them into social housing.

The initial 300 billion yuan ($ 42 billion ) provided by the&nbsp, central bank could&nbsp, deliver about 500 billion yuan ($ 69 billion ) of credit to accelerate stabilization efforts, the PBOC official said.

Additionally, on May 17, Vice Premier He Lifeng, who serves as the chief coordinator for economic policy, stated that local governments are being given the authority to allocate funds to developers.

This will be accomplished by repurchasing residential property that was previously sold to developers and increasing commercial housing inventories. The intention of the plan is to provide a clear floor for distressed developers and properties.

This policy change could significantly alter households ‘ perceptions of developers ‘ financial prospects, according to Batson, by sending a clear political signal that the government is not sat idle while developers go into bankruptcy.

The only drawback is that Beijing frequently attempts to change mood through signaling rather than direct financial support. The property sector is supported by the PBOC’s fourth new lending facility. And none of the previous three gained much, if any, traction.

According to Batson, “banks have generally been unwilling to accept the credit risk of more lending to property,” even with cheap funding to increase their profit margins.

The bigger issue, though, is Xi and Li ensuring implementation this time around. That requires a bold and obvious shift away from putting security before economic advancements.

Over the past two years, Xi’s team has stuttered from pledge to pledge to develop a plan to dramatically lower the ranks of developers while removing toxic assets from their balance sheets.

Investors have long been speculated about Beijing adopting a Resolution Trust Company-like model similar to the one used by the US to address the 1980s ‘ savings and loan crisis.

Making good on Xi’s promises to prioritize the quality of growth over its quantity would help Xi’s reform team disorient the critics and resurrect China Inc.

And it would change the perception that China is determined to fix the mistakes Japan made in the 1990s during its bad-loan crisis, leading to the deflationary lost decade that the nation arguably has never fully recovered from.

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Volatility is cheap - Asia Times

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Volatility is low

According to David P. Goldman, market volatility is at sudden highs, aside from gold rates, which suggests that central banks have a plan to build up their assets, such as China. He advises using buying volatility to hedge portfolios against political shocks.

Russia tries to overextend Russian forces in Kharkov drive.

James Davis evaluates Russian actions to launch a new front in the Kharkov area. Moscow’s intention appears to be to create a buffer zone and thinn Russian forces, possibly launching a southern offensive.

Biden’s great tariffs and China’s retribution

Scott Foster writes that the US Commerce Department’s steps against China, like as revoking Intel’s license to sell chips to Huawei, have harmed American firms ‘ profits and market opportunities, probably Intel in the line of fire.

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China unveils property stimuli amid falling sales - Asia Times

After falling in house sales and purchase in the first four months of this year, China released an extraordinary bundle of measures to encourage homebuyers to enter markets on Friday. &nbsp,

The People’s Bank of China ( PBoC ) said it will establish a nationwide program to unleash 300 billion yuan ( US$ 41.5 billion ) in cheap funding to help state- owned- enterprises ( SOEs ) buy unsold homes.

The minimum down payment ratios for first-time purchases were reduced from 20 % to 15 %, and second-time purchases were reduced from 30 % to 25 %, according to the PBoC and the NFRRA. &nbsp, &nbsp,

Additionally, it stated that first and second home loan rates will be abolished nationwide at the lowest rate possible. &nbsp,

According to the central bank, central bank branches is then set lower mortgage rates in accordance with local circumstances. Financial corporations should set the minimum borrowing costs based on their business climate and customer threats, it remarked.

From May 18, the PBoC may also reduce the mortgage rates of the individual accommodation retirement account, a long-term cover savings plan made up of required regular deposits by both employers and employees, by 0.25 percentage points.

Stocks of the Hong Kong-listed Chinese engineers increased on Friday after many of them more than doubled in value during the week that ended Thursday. &nbsp,

Shares of China Vanke Co increased 19.4 % to close at HK$ 6.84 (88 US cents ) on Friday while shares of Sunac China rose 25.9 % to HK$ 1.85. &nbsp,

Agile Group gained 24.3 % to 92 HK cents while Guangzhou R&amp, F Properties surged 12.7 % to HK$ 1.33. &nbsp,

Poor house figures

Meanwhile, the National Bureau of Statistics ( NBS ) released new economic data for January- April 2024 on Friday.

In the first four weeks, China’s estate investment fell 9.8 % year- on- yr to 3.09 trillion yuan. For the 23rd subsequent month, the number has been declining.

In January-April, investment in residential real estate decreased by 10 % to 2.34 trillion yuan from last year.

New home sales fell 28.3 % to 2.81 trillion rmb for the same time. New home sales slumped 31.1 %. &nbsp,

New home sales size decreased 20.2 % to 293 million square feet. New home sales level decreased by 23.8 % year over year.

In April, the average home price in 70 largest Chinese cities fell 3.1 % from a year ago, according to the NBS. It’s the biggest year-on-year drop since November 2014, in terms of terms of year on year.

” March and April are a classic great time, but both new house sales and sales volume have decreased year-on-year over the course of that time, demonstrating how severe the Chinese home markets are right now,” said Wang Xiaoqiang, chief scientist with the Zhuge Real Estate Data Research Center. &nbsp,

Wang claimed that new home sales volume in the first four months of this year decreased by 26.4 % from the same time last year, when most Chinese cities still adhered to Covid laws.

Zhang Hongwei, founder of Jingjian Consulting, said property activities may improve if some urban commercial banks start offering mortgage borrowers10- 20 % discounts in the coming few months. &nbsp,

SOE home purchases&nbsp,

He Lifeng, the vice president of China, stated at a teleconference on Friday that the government will make more efforts to address the risks associated with unfinished commercial housing projects, ensure the delivery of housing projects, and encourage the reduction of property inventory in the markets.

He claimed that local governments are permitted to purchase unsold homes at fair prices and turn them into affordable or rental housing units.

In the upcoming year, 21 national banks, including China Development Bank, policy banks, state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks, will be given loans worth 300 billion yuan at an interest rate of 1.75 %, according to PBoC Deputy Governor Tao Ling. The period of time can be extended four times. &nbsp,

She stated that the central bank will provide loans to national banks to cover 60 % of the scheme’s lending, allowing them to lend SOEs an additional 200 billion yuan, increasing the total to 500 billion yuan.

She suggested that national banks should grant loans to SOEs designated by local governments in accordance with market rules, while local governments should make their own decisions about whether to join the scheme.

” The SOEs for home purchases will be designated by local governments”, Tao said. ” They must not be local government financing vehicles ( LGFVs ) or companies related to local governments ‘ shadow financing” .&nbsp,

China’s total local government debt, including LGFV loans and shadow credit, was about 90- 110 trillion yuan, or 75- 91 % of the country’s GDP in 2022, according to a research report published last November by the 21st Century China Center of the School of Global Policy and Strategy at the University of California San Diego. &nbsp,

Read: China to reboot markets with SOE home purchases

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China to reboot markets with home purchases - Asia Times

China is considering a nationwide initiative to reduce supply in real estate markets by urging local institutions to buy from frightened property developers ‘ empty properties.

According to Bloomberg, the State Council is seeking suggestions from various regions and government organizations regarding a proposal that may require local institutions to purchase millions of homes that have already been sold.

The People’s Bank of China’s proposed trial scheme, which set aside 100 billion yuan ($ 13.85 billion ) for special lending to local governments in eight cities, would use the funds to purchase unsold properties for use in local subsidized rental programs, in February 2023. &nbsp,

The eight places are Chongqing, Jinan, Zhengzhou, Changchun, Chengdu, Fuzhou, Qingdao and Tianjin. &nbsp,

The city government in Lin’An, Hangzhou, announced on Tuesday that it would buy some 10, 000 square feet of private residences and convert them into rental accommodation units. &nbsp,

The Politburo of the Chinese Communist Party’s Central Committee meeting on April 30 recommended a global home-purchase program, which would promote high-quality property development, reform the country’s house development model, and promote high-quality property market development. &nbsp,

The meeting made reference to what it called the urgent need to evaluate the supply and demand dynamics in the real estate markets in order to meet the expectations of consumers.

On Friday night, the State Council will hold a video seminar with senior representatives from the cover government, economic officials, local institutions, and banks to explain the housing market. &nbsp,

According to Wang Yi, mind of the Asia Pacific real estate team at Goldman Sachs Research, “it may take a month from now to reduce sellable products to a stage that the business would probably perceive as “balance,” without government interference. We think that a persistent decline in housing prices could result in a negative feedback loop caused by further contractions in credit supply and overall demand.

She claims that as of the end of last year, the inventory of residential properties in mainland China was estimated to be costing about 30 trillion yuan ( US$ 4 trillion ). She claims that the cost of fully building that property will be ten times the amount of housing stock at the end of 2023, or one-fourth of the total. &nbsp,

She claims that there is a significant inventory overhang because the industry needs to be fully funded to return to its pre-normal operating levels in 2024.

Slow progress

If they have 20 % down payments, local governments ‘ urban investment firms can borrow bank loans at a 3 % interest rate to purchase unsold homes, according to the trial program in eight Chinese cities.

However, such a deal is not very attractive because rental yields can typically be just around 3 %. And if home prices decline, urban investment firms could lose money. &nbsp,

As of early this year, loans totaling only 4.1 billion yuan have been taken out in four projects.

The trial program’s progress, according to Li Yujia, chief researcher at the Guangdong Planning Institute’s residential policy research center, is slow because urban investment companies are reluctant to enter markets in a property down cycle. &nbsp,

He suggested that urban investment firms could begin by purchasing some of the unsold properties in a project that has already sold more than 70 % of its apartments, allowing the developers to move on and concentrate on creating new ones. &nbsp,

An urban investment firm can try to arrange for the existing buyers to purchase elsewhere, he said, and then it can immediately buy the project. A project can only have sold a small number of its apartments.

” Whether the government’s plan to reduce property inventory will succeed depends on the demand side”, said Yan Yuejin, research director of Shanghai E- House Real Estate Research Institute. ” The overall pace of inventory reduction remains slow, despite the gradual increase in property sales.

Yan claimed that property developers have delayed their marketing plans as a result of the slow property demand. He claimed that 55 % of the new homes for sale in the top-tier cities ‘ markets were launched in 2023 or earlier, compared to 68 % in third-tier cities. &nbsp,

Purchase limits

Some analysts believe that local governments ‘ home-purchase initiatives must be combined with a number of other supportive measures to demonstrate some effects. &nbsp,

Other ways to reduce property inventory, according to Zhang Bo, director of the 58 Anjuke Research Institute, include urging homeowners to relocate to larger homes and lowering purchase restrictions. &nbsp,

In April, dozens of Chinese cities made the announcements of their “new properties for old” initiatives, which promise to buy homeowners ‘ existing properties as soon as they move into new ones. &nbsp,

Since May 9, a dozen second- tier cities including Hangzhou, Xian and Fosan have announced, separatelly, their decisions to cancel their property purchase limits – most of which have been implemented for more than a decade. &nbsp,

It means that people can now purchase as many properties as they want in most second-tier cities. Shanghai and Beijing, two of the top tier cities, still have purchase restrictions in place to stop speculative activity. &nbsp, &nbsp,

Over the past one week, shares of most property developers, including the heavily- indebted ones, have surged significantly. &nbsp,

Shimao Group Holdings ‘ stock increased by 160 % to close at HK$ 1.25 from May 8. China Aoyuan shares are now 26 HK cents, which is a double increase.

Agile Group’s shares increased 42 % over the past week after the announcement of the default of its publicly issued dollar bonds on Tuesday. &nbsp,

Read: Unleashed bank deposits misused in Chinese economy

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China-Russia relations: What is Xi Jinping prepared to pay for Putin’s war?

China's President Xi Jinping (R) and Russia's President Vladimir Putin attend the opening ceremony of the third Belt and Road Forum for International Cooperation at the Great Hall of the People in Beijing on October 18, 2023.Getty Images

Vladimir Putin, the Russian president, praised the “unprecedented” levels of ties between the two nations ahead of his state visit. Beijing is scheduled to welcome him.

China has emerged as a key supporter more than two decades after his conquest of Ukraine. Much to the chagrin of the US and the European Union, it has continued to trade with a heavily sanctioned Russia and has refused to condemn the conflict.

Nevertheless, it appears Mr Putin wants more. But will China pay the price?

A juggling work

Perhaps it is amazing that the Russian president chose China as his first international trip since taking the oath of office next week. Their relationship has reached its “highest level always,” he told Foreign state media during the two-day state visit. He mentioned his interest in Chinese martial art and beliefs, and claimed that members of his family are studying Mandarin.

” In the face of a hard global situation, our relations are also strengthening”, he said.

But while Mr Putin brags about their friendship, Mr Xi may had reason to worry.

The US has really made a number of new sanctions against Beijing and Hong Kong-based institutions and businesses that allegedly work with Moscow and aide in evading the country’s existing restrictions.

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Because China exports technology and parts that are necessary for war, Washington and Brussels think it’s not selling arms to Russia. US Secretary of State Antony Blinken told the BBC that China was “helping energy the biggest danger” to Western security since the Cold War during his recent journey to Beijing.

For them, this has become a dark range. China insists that its position on Ukraine is natural, and that exports that are not used for business purposes besides war do not break the law.

However, the allegations followed Mr Xi on his trip to France next year, distracting from what was supposed to be a beauty unpleasant.

As the EU considers tariffs of its own, the Sino-skeptics and China eagles are also becoming louder, urging Mr. Xi to put more pressure on his Soviet rival.

And the truth is that China’s slow business cannot afford to experience this pressure from its trading partners. It needs those businesses overseas because of weak demand at house.

All of this leaves Mr Xi in an odd situation.

Finding the parameters

Weeks before Russia invaded Ukraine, the two frontrunners announced a” no- limits” collaboration to strengthen co- activity. This made feeling for the armies in their intellectual conflict with the West.

Moscow is also crucial to the changing of a US-led world order, according to Beijing. Trade between them is flourishing. Low Russian energy, including regular gas supplies via the Power of Siberia pipelines, have been a profit for China.

Russia's growing trade with China . in US$bn. Bar Chart showing Russia's growing trade with China from 2015 to 2023. .

But, as the conflict has dragged on, the ally has never seemed so “limitless”. For one, the word has almost disappeared from status press, a BBC research has found.

Zhao Tong, a senior fellow at the Carnegie Endowment, claims that Beijing is downplaying the unwavering character of its strategic relationship with Moscow.

” While China supports the goal of undermining American control, it does not agree with some of Russia’s methods, including the risk of using radioactive arms. China is acutely aware of the social costs associated with presenting itself as a supporter of Russia, and it is constantly developing strategies to improve its image of legitimacy on the international level.

On his recent visit to Europe, Mr Xi said the state is “neither the father of the issue, not a group to it or a student”. China keeps telling its own people about this.

Russians are still bleeding in pits, according to the statement.

However, the avowed neutrality does not imply support for Ukraine is easily discernible on China’s very censored media.

Foreign state media however justifies Russia’s war, calling it swift retribution by Moscow against US- backed Nato growth.

When Xu Weixin, a Taiwanese artist, first witnessed the first loud explosions to strike the Russian capital Kyiv on television in 2022, he felt compelled to record it.

” I do n’t have a weapon, but I have my pen”, he told the BBC from his studio in the US. His initial drawing, a photograph of the Ukrainian President Volodymyr Zelenskyy, was a hit on social media.

Since the start of the war, I’ve been painting every time. I did n’t stop even for one day. When I got Covid, when I travelled worldwide, I also drew every day”.

Although his work has not been subject to any restrictions in China, the responses it received stunned him.

” It’s very different to my past knowledge”, he said. ” When I painted about fuel miners, all the responses I got were good. Perhaps my depictions of the social revolution received acclaim. I barely got any criticism”.

Xu Weixin drawing of the war

Courtesy Xu Weixin

But this time, he says, he saw a reaction. ” It’s okay, I merely blocked them”, he says. Some of my friends disliked me because they were against my opinions. But what am I capable of? I believe I’m doing a proper point. I want to become a role model for my daughter”.

It’s a sign of hope for Ukrainian like Vita Golod, who want to control Chinese mind. She was in Kyiv at the time the conflict broke out, and she made the decision to convert Russian media into Chinese using her Mandarin proficiency to share it on social media.

On a trip to Beijing, she told the BBC,” We wanted to let folks know the truth about this war because we were aware at the time there were no Russian media outlets or sources.” She is currently the vice president of the Ukrainian Association of Sinologists.

” It was hard physically to be honest, and it took a lot of time”, she says. A group of around 100 people translated formal announcement, President Zelensky’s remarks, and the stories of regular Ukrainians caught in the battle zone, she added.

She claims she hopes to arrange for Chinese scholars to travel to Ukraine so they can witness the destruction themselves and, eventually, put pressure on Russia. She is aware that this is an ambitious objective but wants to try. Her parents still reside in their hometown close to Bucha, and her brother is in the forefront.

Vita Golod

Joyce Liu/ BBC

” People in Ukraine are still suffering, they are still hiding in shelters, still bleeding in trenches. Ukraine needs sanctions on Russia, not beautiful words”.

So far, her work has not been censored, which implies some tolerance by the Chinese government.

Xi, the peace keeper

Other voices from Beijing are coming out, suggesting that some of the Chinese public’s attitudes toward this unrestrained relationship may be changing.

Feng Yujun, director of Fudan University’s Center for Russian and Central Asian Studies, recently stated in The Economist that Russia was certain to lose in Ukraine.

It’s a bold opinion in China.

But then, Mr Xi has also suggested he could be a peace keeper.

He phoned the Ukrainian president Volodymyr Zelensky in March of last year and emphasized that China has “always stood on the side of peace.” China also released a 12-point peace plan that calls for the end of nuclear weapons.

However, neither of Presidents Putin and Xi’s meeting this week is likely to change their minds significantly.

However, he will be calculating the risk of standing shoulder to shoulder with an international pariah who he once called both a comrade and his “dear friend” as the West becomes more impatient with their alliance and Mr. Xi’s hopes of playing peacekeeper have been so unsuccessful.

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Billion-dollar money laundering case: Sixth suspect jailed, forfeits largest sum yet of S$180 million

VANG SHUIMING’S Infractions

On August 15, 2023, Vang was captured in a Good School Bungalow along Bishopsgate in Tanglin with cash totaling about S$ 2.42 million spread over four Singapore bank accounts.

Vang was unable to completely explain how the money came to him because it was believed to be gains of criminal conduct. Four of his claims eventually came to light regarding this.

Vang claimed that the money were the result of his investor gains from Xiamen Likanghang Trading and Xiamen Yetian Trading, two alleged e-commerce businesses.

After his imprisonment, he admitted they were not the cause, but claimed the money came from his product business in China, Xiamen Mingxin Promise.

Vang “maintained this account” through 18 claims to officers from Aug 15 to August 4, 2023, said the trial.

But on Sep 26, 2023, he admitted this was misleading. The money, according to him, was derived from “his gambling winnings and real estate investments in the Philippines” ( poker ).

Vang has no substantiated this say, the trial noted.

The bulk of Vang’s costs, 18 of them, involved submitting documents to several Singaporean banks that he had reason to believe to be fake.

When lenders questioned Vang about the money’s resources in his accounts, he used these documents.

In terms of the proceeding charge, Mr. Koh outlined how Vang had secured the sending of more than HK$ 29 million ( US$ 29 million ) from an Indonesian remittance agent to his Citibank account in April and May 2021.

Since Vang did not reside in Indonesia, Citibank inquired about the source of the funds and his connection with the payments broker.

Through one Wang Qiming, who was then his marriage manager, Vang provided a document apparently from the payment agent, stating that it received the funds as” second party flows” from the accused.

Additionally, according to the payments firm, it was able to receive cash from Vang for the equivalent of HK$ 8 million through an approved adviser in China named” Chen Ze Long.”

Vang provided a alleged bank statement from a China Merchant Bank account in his brand that showed payments from” Chen Ze Long” when Citibank’s compliance department requested additional documents to confirm these assertions.

However, Vang admitted that the speech was fake and that he did not have any China Merchant Bank accounts while being investigated after his imprisonment.

The other made records allegedly contained Xiamen Likanghang, Xiamen Yetian, and Xiamen Mingxin’s financial statements. These were sent to Bank Julius Baer & Co in July 2022 and UOB Kay Hian in June 2022.

According to Mr. Koh, the accused “represented to the banks that his success came from three Chinese companies, of which he was a shareholder, either directly or through his exterior asset managers.”

The accused had cause to believe that these economic remarks were fake, and they were.

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Asian central banks to continue gold purchasing | FinanceAsia

Annual demand of gold in 2023 fell by 5 %, compared to that in 2022, to 4, 448 tonnes, excluding over the counter ( OTC ) transactions. According to data from the World Gold Council ( WGC), central banks contributed to 1, 037 tonnes of the gold demand last year, which is the second-highest on record.

In the first fourth of 2024, world gold demand, including OTC, was off 3 % year- on- year to accomplish 1, 238 tonnes, marking the strongest second quarter since 2016. Excluding OTC, first quarter’s demand fell by 5 % to 1, 102 tonnes.

China, India and Singapore were among the Asian markets that added the most to their golden getting during the first quarter, with an increase of 27.06, 18.51 and 6.57 kilograms both. These include both key banks and financial transactions.

The story is also about the skyrocketing metal price, which rose by as much as$ 2,300 per ounce in April and remained at its all-time high despite a minor decline at the beginning of May.

One of the main causes of a rising interest rate in gold is Shaokai Fan, mind of central bankers at WGC, who quoted Shaokai Fan as saying, is because of the confidence in the US Fed’s future rate cuts.

” Gold has reached a new all-time higher thanks to a number of different things. Although interest rate reduction anticipation are most definitely raising interest, he said there is a solid real demand for silver underlying this.

Fan claimed that the central banks that have purchased “historic levels” of silver over the past two centuries have remained significant customers this time. For instance, the curiosity in China is related to the landscape of investors ‘ attempts to expand in response to weak performance in other asset classes.

Retail traders now have greater access to the business. Using distributed ledger technology ( DLT), HSBC in Hong Kong has created the first bank-issued tokenized gold. It is supported by vaults in London that are owned by HSBC.

Flee for surety

At the end of next year, market was first expecting nearly six 25- basis- point cuts within a 12- month timeframe. Christian Scherrmann, US economist at DWS, expects two rate cuts by the US Fed by the end of the year. Curbing inflation in the world’s largest economy has proved to be slower than expected, with the consumer price index ( CPI ) for March seeing a 0.4 % month- over- month core inflation increase.

Lower interest rates generally benefit the gold market because they lower the opportunity cost of holding gold, according to Fan. In a more volatile environment, the team anticipates inflows into gold exchange-traded funds ( ETFs ).

In Q1 2024, the global gold ETF holdings dropped by 114 tonnes, primarily as a result of an outflow from European and North American funds.

Asian gold ETFs, on contrast, witnessed an increase in assets under management by 16 % to$ 11 billion, mainly generated by participants in China, due to a weakening yuan and other domestic assets.

Meanwhile, global geopolitical risks are rising: tensions between China and the US are stillrounding, and global supply chains and general market sentiment are being affected by ongoing conflicts in Ukraine and the Middle East. Gold, as a’ safe have n’, has therefore attracted wide interest.

The People’s Bank of China purchased more gold from the central bank in Asia in 2023, according to Fan. The PBOC currently has 2, 262.45 tonnes of gold reserves, followed by Japan and India, which have each over 800 tonnes.

The PBOC has added gold for the first 18 months in a row, but the price increase has slowed as the price rises have slowed.

The Reserve Bank of India’s ( RBI ) gold reserves, as of March this year, saw a 34 % increase compared to that in March 2019, reaching a total holding of 822 tonnes of gold. In addition, the Monetary Authority of Singapore’s ( MAS ) gold reserves increased by 2 tons in the first quarter.

The shift in geopolitical attitudes following the Russian’s attempted invasion of Ukraine and the subsequent sanctions placed on Russia’s foreign exchange reserves have resulted in a significant increase in central bank gold buying, according to Fan.

” We anticipate that central banks will continue to be gold’s main sources of income this year,” he continued. The US Fed’s rate cuts decisions, however, will still have the biggest immediate impact on the price of gold.

¬ Haymarket Media Limited. All rights reserved.

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