China’s Wanda Unveils Global Domination Plans (In Film Industry)

On September 25, 2013September 25, 2013 By PaulLeave a comment

POSTED BY THE BUTCHER⋅ SEPTEMBER 23, 2013

CCTV.com – Wanda launches movie metropolis in Qingdao

Leonardo DiCaprio, Nicole Kidman among attendees at AMC Theaters owner’s studio launch. China’s Dalian Wanda Group has unveiled plans to become one of the world’s biggest film companies.

At a glitzy ceremony in the port city of Qingdao, attended by top stars from China and Hollywood as well as senior Hollywood executives, Wanda chairman Wang Jianlin broke ground on a new mega studio. He also revealed alliances with Hollywood studios and announced a new film festival.

Wang Jianlin - Cinema & Property Tycoon — **Wang Jianlin – Cinema & Property Tycoon**

His $4.9 billion (RMB 30 billion) Qingdao Oriental Movie Metropolis will include 20 sound stages, including a 10,000 square meter studio complex, 19 smaller, related facilities and a theme park. It is set to open in 2017.

The 200 hectare Film Industry Park will also include several outdoor lots (in European, Ming & Qing dynasty Chinese and Middle Eastern styles), seven hotels, an indoor theme park, an IMAX research laboratory, a massive film exhibition unit capable of hosting a film festival, a film museum and waxworks, as well as a year-round automobile show and a yacht trading center.

Paying tribute to the financial firepower and ambitions of Wanda were Hollywood stars Leonardo DiCaprio, Nicole Kidman, Catherine Zeta-Jones, John Travolta, Kate Beckinsale, Ewan McGregor and Christoph Waltz. A-list Chinese stars included Zhang Ziyi, Jet Li, Tony Leung, Donnie Yen, Huang Xiaoming and Vicki Zhao. Senior U.S. execs included Weinstein Co. chairman Harvey Weinstein and Lionsgate motion picture bosses Rob Friedman and Patrick Wachsberger.

Wang, recently named by Forbes magazine as China’s richest man with an estimated fortune of $16 billion, said that China will have the world’s largest film industry by 2018. Wanda last year paid $2.6 billion to acquire U.S. cinema chain AMC and last week gave a gift of $20 million to the Academy of Motion Pictures and Sciences.

The company said that it had struck some 30 agreements with producers and talent agencies including to bring 30 foreign films and 100 local Chinese films per year to the new studio.

Wang said that the Qingdao International Film Festival will be held in the Metropolis’ exhibition area every September from 2016. It will be organized in co-operation with the Academy’s Cheryl Boone Isaacs, who was also in attendance, and China Film Group.

China already has some of the world’s largest studio complexes at Hengdian, a few hours outside Shanghai, and one of the most modern at Huairou, outside Beijing. Other studio complexes have been mooted at Tianjin and Wuxi.

Source: Variety ”China’s Wanda Unveils Global Domination Plans” – Patrick Frater

China kicks off European tour at Venice Film Festival (chinadailymail.com)

Dalian Wanda Announces $8B Studio and Theme Park, Ambitions to Dominate Film Industry (thewrap.com)

China’s Richest Man Makes $8 Bln Statement Of Ambition For Global Film Industry Clout (forbes.com)

China’s richest man to build world’s largest film studio (thebricspost.com)

China’s Wanda Unveils Global Domination Plans (variety.com)

China’s richest man announces $8 billion film park (dnaindia.com)

Hollywood Moguls Attend Secret China Summit Held By Wanda (Exclusive) (thewrap.com)

Chinese Film Company Hosts Hollywood Elites at Lavish Secret Party (breitbart.com)

CORRECTED – That’s entertainment: Stars come out as China’s richest man announces $8 bln film park (uk.reuters.com)

VIDEO: Stars Come Out As China’s Richest Man Announces $8 Billion Film Park (marketcurator.com)

Kidman attends China’s ‘cinema city’ (bigpondnews.com)

World’s Tallest Outdoor Elevator: Bailong Elevator China

On September 22, 2013 By Paul1 Comment

PC/Monday 23 September 2013

Zhangjiajie National Park

. . . What an outdoor elevator or lift, call it whatever you like, so tall that it looks like reaching the sky!

 The Bailong Elevator/Lift rises 326 meters/1,069 feet up the side of a cliff to the top of a plateau. We couldn’t believe our eyes. The Bailong Elevator/Lift is claimed to be the biggest, and most exposed elevator in the world.

If you are frightful of heights, this is to be avoided, lest your knees give way!

Access to Zhangjiajie National Park is venturesome enough with its twisting & steep climbing roads, and now this to make your heart jump out of your mouth!

So here we go . . .

Nothing venture . . . nothing gain!

ENJOY yourself!

Have your heart out!!

Guoliang Village – China’s Hideaway

On September 22, 2013 By Paul4 Comments

PC/Sunday, 22 September 2013

Guoliang Village, with 350 strong independent people, is situated in Wanxianshan scenic area, Henan Province. A favourite tourists‘ spot, visitors say there are very beautiful mind boggling views of stunning canyon, landscapes, cliffs & mountain ranges.

For access there is a daring road carved into the side of a cliff, though difficult to reach, it’s well worth the trip.

Hidden away in the Taihang Mountains it’s covered by an amazing transportation system.

Guoliang Village was a tiny Chinese village high in the Taihang Mountains in Henan Province. Nobody heard about it. The only way to reach it was via steps cut on the side of a very steep cliff on which their village was built. They called the stairway their “Sky Ladder.” Perhaps the difficult access and a defensible position kept the little village safe when trouble was brewing in the area. But in 1972, the village elders including Shen Mingxin were determined to build a road. They wanted their village connected to the outside world and for people to be able to reach it other than by laboriously climbing stairs. So in 1972, with hand tools, 13 strong villagers started carving a road down the side of the canyon road. It is a single lane road that is about 12 or 13 feet across and about 15 or 16 feet high. Many tourists see their handiwork as a colossal feat. The road was finished in 5 years, and the result is that the village is famed as a tourist attraction.

The road is amazing considering that it is tunnels and levelled cliff face. The road stretches about a mile. It reminds me of a tunnel an ant colony might dig. They carved arches for their tunnel and levelled sections of cliff face so that tourist buses are able to go up. It isn’t wide enough to be a two lane road, but cars can pass each other slowly. The road was opened in 1977.

Along with seeing the road, tourists like visiting the welcoming little village people. They like hiking up the road because the canyon and the mountaintop area have spectacular scenery. The village itself is unusual because the villagers built it of stone. The walls, chairs, tables and even the bowls and some eating utensils were made of stone. The village probably has an interesting history of survival in a harsh land. The canyon below the village is very narrow and deep. There are coloured rock layers, and you can better see the colours of the layers in the tunnel and along the road cut. There is also a beautiful waterfall.

It is said that to pay for the tools to carve the road, the villagers of Guoliang Village 郭亮村 sacrificed a lot and even sold their animals and other necessities of life. What they probably didn’t realise was that the government would later think that this was a prime tourist attraction in central China. When the borders were opened for foreign travel in the last decade, foreigners started to find it and post pictures about it. Even a few years ago, it was a difficult place for foreigners to find and reach, but now the village is getting famous. Hotels have opened in the village, and bridges and walkways have been built for the tourists so that they can walk around in the area. Foreigners say that the hiking and scenery is excellent and there are lots of stairs to climb around on.

In the summer of 2011, there was a dispute between the villagers and officials about access and payment. Access to the village was restricted to foreigners, but some tourists still got in. So if you are planning a trip there, check the internet for the latest news.

Getting there is still not easy. Here is an address to show people: 河南新乡市辉县万仙山景区.

The Village of Guoliang is about 120 kilometres or 75 miles north of the city of Zhengzhou in the Wanxianshan Scenic Area. If you want to go there by train, the nearest train station is at Xinxiang at (新乡) that is about 50 miles southeast of the Wanxianshan Scenic Area. From there, you can take buses to the town of Huixian 辉县. Get off at the Huxian Bus Station, and then take another bus to the Wanxianshan Scenic Area. This leg costs about 6 RMB or 1 USD and takes 30 minutes. From there, there are buses that cost 11 RMB that go the the scenic area. This leg takes about two hours though it is only about 40 miles away because the buses make many stops. The bus lets you off at the scenic area at a place where you can hire another ride or hike the 4 kilometres to Guoliangcun or 2.5 kilometres to another village called Nanping. There is an 80 RMB entrance fee if the park is open. The walk through Guoliang Tunnel is breathtaking, but keep an eye out for motorists. The road is steep in some places.

Why China Rises and the US Falls

On September 20, 2013 By PaulLeave a comment

PC/Friday, 20 September 2013

‪

The Chinese have always been widely known to be most assiduous in their economic pursuit. From having the great capacity for work, surviving in the most adverse economic conditions, suffering & enduring, they are also very employable. They contributed much to the building of railway in America. Totally reliable & trust worthy, that’s who & what they are.

Most importantly you’ve got to remember they boast of an unbroken civilisation of some 5000 years unequal by any! – P Chong

Herein we clearly see the dichotomy that distinguishes one from the other . . .

Source of Slides/Pictures Unknown:

Chinese women army greater in number than the whole of US population!

The American are required to be asleep in order to realise their American Dream.

America needs to really wake up and stop whining. It needs to fix the social political system and economic system. The only way to compete with China over the long term is to have its “EDUCATION” right.

Education is the secret to China’s long-term sustainable rise. Recently, America was shocked to see how much the American students are falling behind on science, mathematics and writing, while Chinese students excel in those three on international tests. Many in the US realize the challenge but also quickly point out that those Chinese students were from the developed Shanghai area and they have more money and better facilities. Wrong!!! students in Shanghai or Beijing are known to be lousy students who perform a lot worse than those from poorer areas. They have much lower college entrance thresholds, and normally they cannot enter the top Chinese universities.

This shows how wrong the US is: it looks at education only by money . . . while it is the will and love of knowledge that make a people worship education. (See BBC Chinese School, or ‪http://www.youtube.com/watch?v=C8cyb0 . ..)

Education can make a turnaround within 10-20 years in a person’s life, and within 20-50 years in a nation’s lot.  America was in shock when it learned that China produced a stealth fighter, the fastest super-computer, longest highway system, longest high-speed rail system . . . all happened within a number of years since its reform started in 1979 when China was a lot worse than Ethiopia or Ecuador.

Education aside, let’s take a look at the other factors:

A VERY YOUNG worker in China . . .

only 5 years old undertaking a man’s job!

Click Below/Copy & Paste:

http://static.video.qq.com/TPout.swf?auto=1&vid=r010673xh67

Amazing Ginger

On September 11, 2013September 11, 2013 By Paul6 Comments

Ginger, a natural herbal food, is described as a hot fragrant spice made from the rhizome of a plant. It is chopped or powdered for cooking, preserved in syrup, or candied. It’s a Southeast Asian plant, which resembles bamboo in appearance, from which this rhizome is taken. & it’s a light reddish-yellow in colour. (On the human aspect, it means spirit or mettle : such as he had more ginger than her first husband.)

Amazingly, it’s packed with health benefits. But don’t just rely on hearsay, get the facts.

My Perspective on Being Chinese

On September 10, 2013September 10, 2013 By Paul2 Comments

By Paul Chong Tuesday, 10 September 2013

**English: Ethnolinguistic groups of China. (Phot**o credit: Wikipedia)

According to Western concept, it is presumed that as a country progresses & modernises, it becomes Westernised. China is different & unique – it can never become like the West.

For thousands of years with marauding thundering of conquering barbarians, the Han Chinese was never subdued. No culture has been able to superimpose upon the lives of the Han Chinese in changing them in anyway. Ironically, the reverse happened and instead the conquerers became “sinicized” – that is becoming Chinese as in the case of the Manchus who despite having ruled China for hundreds of years, they were adjusting, adapting & adopting the Chinese way of life.

China is indeed a multi-cultural nation comprising some 55 ethnic minority groups – distinctively practising & preserving their individual cultures, distinctive & unique in China maintaining their own traditions, distinctive costumes & languages. Each displays & contributes to the mix of the greater Chinese nation. The crux of multiculturalism in China is distinct & unique, there is truly a scenario of diversity in unity. People irrespective of their place of birth are proud to be Chinese.

The question of “Sinicization” is a difficult concept to be understood by the West. It’s alien . . . for most Westerners are a composite mix of cultures, like the British or the Americans, dominant as they are. It is no less so with the Europeans. Ironically, even with the conquerers (e.g. the Romans) the dominance of their cultures strangely disappeared with the passage of time.

In recent years, young Chinese are trying to revive traditional en:Han Chinese clothing (汉服运动) using internet-based forums. A few Han Chinese clothing gatherings both within China and overseas were organized. Han clothing was lost for 267 years as a result of the Manchu subjugation of China, which lasted from 1644 to 1911.

According to Wikipedia, “Sinicization, Sinicisation or Sinification, ( Mandarin: 汉化 Hànhuà), also called Chinalization (Mandarin: 中国化 Zhōngguóhuà), is a process whereby non-Han Chinese societies come under the influence of dominant Han Chinese state and society. Areas of influence include alphabet, diet, economics, industry, language, law, lifestyle, politics, religion, sartorial choices, technology, culture, and cultural values. More broadly, “Sinicization” may refer to policies of acculturation, assimilation, or cultural imperialism of neighbouring cultures to China, depending on historical political relations. This is reflected in the histories of Korea, Vietnam and Japan in the East Asian cultural sphere, for example, in the adoption of the Chinese writing system.”

In the world today, where population mobility on a global scale is so dominant because of wars, social upheavals, economic changes & circumstances, political & economic refugees, it is difficult to stay pure & dominant as a race. The United States of America is the best example of the melting pot of cultures.

This is openly followed by United Kingdom & such European countries as Belgium, Holland in their practices of multi-culturalism through integration or nationalism. However, they find themselves to be confronted with the huge problem of non-integration, separatism & polarisation in respect mainly of religious differences. That religious polarisation is generating towards possible future political force.

Japan in its attempt to a stay closely-knit society is not accepting foreign immigration, but it’s only a small country in terms of population number.

The integration policy is a type of nationalism aimed at strengthening of the Chinese identity among some other 55 minority population. Proponents believe integration will help to develop shared values, pride in being the country’s citizen, respect and acceptance towards cultural differences among citizens of China. In China there are 292 non-Mandarin languages spoken by minority peoples of the region. There are also a number of immigrant languages, such as Khmer, Portuguese, English, etc.

Historical past reveal sinicization of many examples as with the Turkic peoples, descendants of Uyghurs and the Hui population. They were all largely assimilated into the Han culture, practising Chinese customs and speaking Mandarin as their language.

In a huge country like China of great diversity, the teaching of Mandarin as the national language is the strongest singular population unifying factor. Different & various dialects may abound but everybody speaks & understands Mandarin.

The best example of sinicization undoubtedly happened with the Manchu during the Qing Dynasty. They originally had their own separate style of naming from the Han Chinese, but eventually adopted Han Chinese naming practices.

Manchu names consisted of more than the two or one syllable Chinese names, and when phonetically transcribed into Chinese, they made no sense at all. The meaning of the names that Manchus used were also very different from the meanings of Chinese names. The Manchus also gave numbers as personal names.

They gave their children Chinese names which were separate from the Manchu names, and even adopted the Chinese practice of generation names, although its usage was inconsistent and error ridden, eventually they stopped using Manchu names.

The Niohuru family of the Manchu changed their family name to Lang, which sounded like “wolf” in Chinese, since wolf in Manchu was Niohuru.

Usage of surnames was not traditional to the Manchu while it was to the Han Chinese.

Our Western friends always have this to comment with the way & ease we switch code (language) when speaking to each other. We apparently have the dexterity & affinity with language code. For example, foreigners are often fascinated to notice a good mixture of dialects & languages in our speech . . . all in one sentence. Perhaps Chinese brains work differently & even uniquely.

The greatness of a nation lies in its ability to stand tall & erect absolutely unaffected & diminished by outside invasions despite its thousand of years of isolation. This testifies the notion & concept of “survival of the fittest.”

Soundly geographical, the sun always set in the West & gloriously rises in the East. With the sun setting, the world goes to sleep. However, each morning when the sun rises activities stir & economy grows.

As they say in the Grand Prix race, when your car stalls others roar . . . speed must be maintained to avoid a stall and loss of control.

Paul Chong

A Chinese by Descent

An Australian by Consent

Proud to be Chinese

On September 9, 2013September 9, 2013 By Paul9 Comments

If you are using you may wish to switch to basic HTML for a better exp

EVERYTHING is BIG in CHINA e.g. The Great Wall of China

With 1.3 billion Chinese in China, mathematically speaking one out of every five people is a Chinese in the world. It is said that wherever the ocean touches land, there the Chinese be. Wherever the Chinese is he survives, in fact more than survive, often making indelible contributions to the community where he lives. He could well be in isolation, but his resources know no bound . . . his initiatives no less . . . his resilience, diligence, dignity & pride second to none. The Chinese people are the most unique “natural resources” of the Chinese nation.

The Chinese as a race, I always contend, are the most assiduous in their economic pursuit, totally self-reliant, resourceful, diligent, resilient and smiling even under threat. In a word, Chinese are great survivors!

The latest book “One Man’s View” by LKY, Spore’s Minister Mentor covering similar themes about the Chinese has been receiving good worldwide commendations. There’s no basis of it being “racist” as facts bespeak the gospel truth. – Paul Chong

Here below Chan-Lui Lee presents some very basic plain truth of the Chinese.

Address by Chan-Lui Lee, Ph.D. Honorary Life Member & Past President, AFS  Melbourne, Australia.

Proud to be born an Overseas Chinese  Proud to be born a Chinese. Each and every race has their own Pride and so long as they do not infringe into others’ right, I don’t see any problem of them taking their own PRIDE, wonder why some Malaysian politicians are so taboo about this?  Why do Chinese people work so hard to succeed in life? Here is the plain truth.  

#1. There are over 1 billion of us on this earth. We are like photostat copies of each other. You get rid of one,5magically appears (like ballot boxes). Yes, it is scary, especially for us. We acknowledge that we are replaceable, thus we are not particularly ‘special’. If you think you are smart, there are a few thousand more people smarter than you. If you think you are strong, there are a few thousand people stronger than you. 

 #2. We have been crawling all over this earth for far more centuries that most civilizations. Our DNA is designed for survival. We are like cockroaches. Put us anywhere on earth and we will make a colony and thrive. We survive on anything around us and make the best of it. Some keep migrating but others will stay and multiply.  

#3. NOBODY cares if we succeed as individuals or not. But our families take pride in knowing we have succeeded. Yes, some will fail. We take nothing for granted. We don’t expect privileges to fall on our laps. No one owes us anything.  

#4. We know we have nothing to lose if we try to succeed. Thus, we have no fear trying. That is why Chinese are addicted to gambling.We thrive on taking risks. All or nothing. 

 #5. From young we are taught to count every cent. What we take for granted like money management, I have found out recently, is not something other cultures practice at home with their children. It surprised me. But truth is not all societies or cultures teach their young this set of skills because it is rude to them. Yes, most of us can count because we are forced to and the logic of money is pounded into us from the beginning of time (when mama tells us how much she has spent on our milk and diapers)  .

#6. We acknowledge life cycles. We accept that wealth in a family stays for three generations (urban myth?). Thus, every 4th generation will have to work from scratch.I.e. the first generation earns the money from scratch, second generation spends the money on education, third generation gets spoiled and wastes all the inheritance. Then we are back to square one. Some families hang on to their wealth a little longer than most. 

 #7. It is our culture to push our next generation to do better than the last. Be smarter. Be stronger. Be faster. Be more righteous. Be more pious. Be more innovative. Be more creative. Be richer. Be everything that you can be in this lifetime. Be KIASU. 

 #8. Our society judges us by our achievements… and we have no choice but to do something worthwhile because Chinese New Year comes around every year and Chinese relatives have no qualms about asking you straight in your face – how much are you making? When was your last promotion? How big is your office? What car do you drive? Where do you stay? You have boyfriend? You have girlfriend? When are you getting married? When are you having children? When is the next child? When you getting a boy? Got maid yet? Does your company send you overseas? etc etc etc. It NEVER ENDS… so, we can’t stop chasing the illusive train – we are damned to a materialistic society. If you are not Chinese, consider yourself lucky!  

#9. We have been taught from young – if you have two hands, two feet, two eyes, and a mouth, what are you doing with it?

People with no hands can do better than you (and the OKU artists do put us to shame)  #10. Ironically, the Chinese also believe in giving back to save their wretched materialistic souls. Balance is needed.

The more their children succeed in life, the more our parents will give back to society (not for profit) as gratitude for the good fortune bestowed on their children. Yes. That is true. And that is why our society progresses forward in all conditions.  Nobody pities us. We accept that.  No one owes us anything. We know that. There are too many of us for charity to reach all of us. We acknowledge that.  But that does not stop us from making a better life. This lifetime  Opportunity is as we make of it. So, pardon us if we feel obliged to make a better place for ourselves in this country we call home.

It is in our DNA to progress forward for a more comfortable life.  But if history were to be our teacher, look around this globe.  Every country has a Chinatown (seriously) but how many government/countries are ‘taken’ over by the Chinese people.  Don’t be afraid of us overwhelming your majority, we are not looking to conquer. If we have moved away from China and Chinese governed countries, we are NOT looking for another country to administer. Our representatives are only there to look after our collective welfare. They are duty bound. We prefer to blend in and enjoy the fruits of our labor. We enjoy the company of like minded people of all races. After all, we are only passing through a small period in the history of time . . . so, use our skills and we can all progress forward together. 

  Chan-Lui Lee, Ph.D. , a marine biologist, Senior Lecturer, Northern Territory University and Chinese migrant, Honorary Life Member & Past President, AFS  Melbourne, Australia.

Five-Year-Old Chinese Boy Flies A Plane Solo

On September 8, 2013September 8, 2013 By Paul1 Comment

A five-year old Chinese boy has launched himself into the record books as the world’s youngest pilot by flying a plane unassisted.

He said, “I quite like it, because flying a plane is very exciting and it’s much more exciting to sit in the front instead of the back. Also, the level of danger in the front is higher than in the back. The person in the front has to drive, and it’s really fun.”Forget toy model airplanes, the five-year-old Chinese boy He Yide is already piloting real planes in the sky. Nicknamed Duoduo, he completed a 35-minute solo flight by ultralight aircraft at the Beijing Wildlife Park, earning himself a world record as the youngest pilot ever.

Duoduo is no stranger to extreme feats. His father, He Liesheng, who calls himself “Eagle dad”, has already let Duoduo compete alone in a sailing race and sometimes makes him run around almost naked in the snow. The elder He says these harsh training exercises are part of his “Eagle education”

He said, “Eagle Education” builds the qualities of bravery, morality, emotion and strength. Bravery is an important part of “Eagle Education. Today’s flight realizes this principle. After living here for 20 days, Duoduo has really become much braver.”

A five-year old Chinese boy has launched himself into the record books as the world’s youngest pilot by flying a plane unassisted.

The video posted online has prompted huge debate over He’s style of parenting, even though he said the boy had had “no problems” from the “intense education method”. Still, experts caution that this approach isn’t suitable for every child.

5-year-old Chinese boy flies a plane solo CCTV News – CNTV English

http://english.cntv.cn/program/china24/20130907/103527.shtml

Zong Chunshan, Director of Beijing Youth League & Psych. Counseling Center, said, “At different ages, a child’s development and physical characteristics have their own laws of maturity and what they can withstand. So people should respect these laws of development, and they should not say ’I think (the child) should be like this and therefore I will educate him or her accordingly’. Doing this is very likely to harm the child in the name of love.”

Eagle Dad insists this kind of training is good for his son. And they’re already planning their next adventure to China’s least-populated area, the Qinghai-Tibet Plateau.

World’s Tallest Outdoor Elevator: Bailong Elevator China

On August 6, 2013August 6, 2013 By PaulLeave a comment

Zhangjiajie National Park

Remember “Avatar” the famous Hollywood blockbuster featuring magnificently those misty mountains? This is the venue where the film was shot from. Below:

Embedded Video Below:

. . . What an outdoor elevator or lift, call it whatever you like, so tall that it looks like reaching the sky!

If you are frightened of heights, this is to be avoided, lest your knees should give way!

Access to Zhangjiajie National Park is venturesome enough with its twisting & steep climbing roads, and now this to make your heart jump out of your mouth!

So here we go . . .

Nothing venture . . . nothing gain!

China Scraps Floor on Banks’ Lending Rates

On August 5, 2013August 5, 2013 By PaulLeave a comment

Move may be just the first step as Beijing wrestles with its weakest economic expansion in many years

Analysts wonder whether deposit rate liberalization has been put off for now.

BLOOMBERGJULY 20, 2013

Photograph by: Getty Images Files , Bloomberg

China has eliminated the lower limit on lending rates offered by the nation’s financial institutions as economic growth slows and authorities expand the role of markets in the world’s second-biggest economy.

The change, effective Friday, eliminates a limit set at 30 per cent below the current 6 per cent benchmark, according to a People’s Bank of China statement. The central bank left a deposit-rate cap unchanged.

While the move temporarily jolted world stocks higher, the PBOC acknowledged that it was a limited step and said that freeing up deposit rates would be more important. The shift came as central bankers and finance ministers from Group of 20 nations gathered in Moscow, and after a cash squeeze in money markets curbed a record expansion in China‘s credit.

“While deposit-rate liberalization is still possible, the fact that a decision was made to just remove the lending-rate floor suggests that more aggressive liberalization proposals were defeated, or at least delayed,”

said Ken Peng, senior economist at BNP Paribas SA in Beijing. “This decision shows that some reform is being done, but may actually reduce the chances for deposit-rate liberalization in the near term.”

Raising the deposit-rate ceiling would improve household incomes and reduce the attractiveness of non-traditional wealth management products while threatening banks’ profit margins, Peng said.

The move will lower companies’ funding costs and boost financial institutions’ pricing capabilities, the PBOC said. In March, only 11 per cent of loans were priced below the lending benchmark, according to central bank data.

The nation’s economy grew 7.5 per cent in the second quarter from a year earlier and is at risk of the weakest expansion in 23 years. The announcement builds on pledges by Premier Li Keqiang to expand an overhaul of interest rates, tagged by the World Bank and the International Monetary Fund as a priority in financial reform.

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Paul Chong's Blog

Tag: China

China’s Wanda Unveils Global Domination Plans (In Film Industry)

Guoliang Village – China’s Hideaway

Why China Rises and the US Falls

Amazing Ginger

My Perspective on Being Chinese

Proud to be Chinese

Five-Year-Old Chinese Boy Flies A Plane Solo

World’s Tallest Outdoor Elevator: Bailong Elevator China

China Scraps Floor on Banks’ Lending Rates

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