China's Internet giants, Tencent to undercut Alibaba with billion chat app users

•  Video: Tencent Aims to Undercut Alibaba With 1B Users 

 
Tencent Holdings Ltd. (700) faces the prospect of losing its position as Asia’s most-valuable Internet company this year after Alibaba Group Holding Ltd. (BABA) goes public. The Shenzhen-based company isn’t going to concede quietly.

Tencent is taking on Alibaba in almost every business related to the Web, from games to security to search. In the latest escalation of the battle, Tencent is expanding in messaging services and using the technology to drive customers to its e-commerce partners -- in a direct challenge to its rival.

The fight exposes a rare vulnerability for Alibaba, which is planning an initial public offering that may be the largest in U.S. history.

Tencent has an enormous lead in messaging, with about a billion users for its QQ and WeChat products, compared with Alibaba’s last target of 100 million for its offerings.

Tencent is projected to report a 52 percent surge in profit when it announces second-quarter results today, bolstered by messaging.

“Tencent is using Mobile QQ and WeChat to take traffic away from Alibaba and direct people to e-commerce platforms backed by itself,” said Bill Fan, a Hong Kong-based analyst at China Securities Co. “Instant messaging hasn’t been Alibaba’s strong point, but it sees the viral effect that Tencent’s app is having so it’s trying to develop similar services.”


Photographer: Brent Lewin/Bloomberg Alibaba Group Holding Ltd., 24 percent owned by Yahoo! Inc., is competing with Tencent... Read More
Tencent’s two technologies let people trade messages over mobile phones and tablets, akin to the WhatsApp service that Facebook Inc. (FB) agreed to acquire this year for $19 billion.

QQ, which began as an instant-messaging service on desktop computers and was repurposed for use on mobile devices, has about 848 million monthly active users. WeChat, known as Weixin in China, has 396 million. (WhatsApp has more than half a billion active users.)

Most Valuable

The success of the messaging services has helped boost Tencent’s market value to about $161 billion, making it the most valuable Internet company in Asia.

Alibaba will compete for that title after it goes public. The latest estimate is that after the IPO the company could be valued at $187 billion, according to a survey of 11 analysts by Bloomberg. Tencent shares declined 0.2 percent as of 9:52 a.m. in Hong Kong trading, while the benchmark Hang Seng Index was unchanged.

Alibaba is trying to close the gap in messaging. In September, it started offering a service called Laiwang. Still, Tencent has continued to expand the features available through its apps to maintain its lead


Photographer: Brent Lewin/Bloomberg
QQ and WeChat helped triple Tencent’s mobile-game revenue to 1.8 billion yuan in the... Read More
“In the latest version of QQ, we have upgraded it to a platform for food, drinking and entertainment, and the number of cities we cover is also expanding,” said Dowson Tong, president of the company’s social network group that oversees QQ, in a recent interview.

Revenue Boost

Tencent has integrated games more tightly into its messaging services to capitalize on the China online gaming market, which IResearch projects will expand to 225 billion yuan by 2017.

QQ and WeChat helped triple Tencent’s mobile-game revenue to 1.8 billion yuan in the first quarter from the previous three months.

That trend likely continued in the second quarter. Tencent’s profit rose to 5.59 billion yuan in the three months ended June, according to the average of 11 analysts’ estimates compiled by Bloomberg.

That would make the second successive quarter with profit growth of more than 50 percent. Earnings climbed 61 percent in the three months ended March 2011.

QQ was the first iconic product billionaire Ma Huateng created at Tencent in 1999, two years after AOL Inc. (AOL)’s messaging service took off.

As more Chinese accessed the Internet, instant messaging became the most popular online app. Ma restructured QQ’s divisions in 2012 to take it mobile and the effort paid off.


Photographer: Brent Lewin/Bloomberg
QQ was the first iconic product billionaire Ma Huateng created at Tencent in 1999, two... Read More
Last year, 83 percent of China’s Internet users subscribed to Mobile QQ and 80 percent to WeChat, compared with Laiwang’s 23 percent, according to a survey among almost 4,000 people by Shanghai-based IResearch in June.

Stake Purchases

Tencent is now leveraging its vast user base to go after a bigger share of the China e-commerce market, which IResearch estimates will more than double from last year to 21.6 trillion yuan ($3.5 trillion) in 2017.

The company in March took a 15 percent stake in JD.com Inc., a direct competitor to Alibaba, and folded its own e-commerce assets into the venture. This year, Tencent has also agreed to buy 19.9 percent of Craigslist-like 58.com Inc. and take a 20 percent stake in Dianping.com, a website similar to Yelp Inc. that users review restaurants in China.

Single Click

Tencent has been working closely with JD.com and Dianping, directing traffic from Mobile QQ and WeChat to the websites, said Tong.

Those steps are beginning to yield results. A new single-click link to JD.com from Weixin produced an eightfold increase in daily transaction volumes compared with an earlier access that took two clicks, JD.com said in June. This month a similar integration with JD.com was provided to users of Mobile QQ.

Still, Tencent and its partners are far behind in e-commerce. Alibaba, which operates platforms including Taobao Marketplace and Tmall.com that connect retail brands with consumers, accounted for 76.4 percent of total mobile retail transactions in China, according to its IPO filing to the U.S. Securities and Exchange Commission.

The fact that Tencent wrapped its e-commerce assets into JD.com shows it wants to limit its investment in the segment, said Yao Yue, a Shenzhen-based analyst with Morningstar Inc.

“Even if Tencent’s instant messaging apps can direct a lot of traffic to JD.com, at the end of the day it still depends on who has the better shopping service, and Alibaba’s Taobao is dominant,” said Yao.

Alibaba hasn’t been able to achieve the same success in mobile messaging so far. The company in 2004 started Aliwangwang, a PC-based instant messenger for buyers and sellers, that is now used for negotiating prices, customer services and delivery notifications on its Taobao marketplace. It also has a mobile version called Wangxin.

Lagging Behind

Laiwang was started by Alibaba to broaden its reach, after billionaire founder Jack Ma alluded to Tencent being ahead in the messaging race at a Credit Suisse conference in March 2013.

“We also invested heavily, but we are not that lucky and not creative, so creative like Tencent, which has WeChat, such a powerful thing,” Ma said at the conference.

Ma has vigorously tried to promote Laiwang and said the company wouldn’t pay bonuses to staff who didn’t get 100 clients for the app before Nov. 30 last year, according to a post on the company’s microblog.

In an attempt to generate revenue from Laiwang, Alibaba said in January it would offer games on the app. A month later Alibaba’s Ma said the company’s achievement on mobile applications wasn’t satisfactory.

Alibaba spokeswoman Florence Shih declined to comment on the company’s mobile strategies, citing pre-IPO restrictions.

Jin Yuan, a Shenzhen mobile phone user, underscores the lead that Tencent has in messaging. Jin has been a QQ subscriber for the past 13 years and says Tencent does a better job of making messaging apps that are easy to use.

“I use QQ to keep in touch with friends I’ve known since the PC age and I use it for a lot of group chats,” Jin said. “I like to use WeChat a lot for sharing information about good places for food.”

By Lulu Yilun Chen Bloomberg

Related post: 

  Showtime for Alibaba world-wide /div>

Showtime for China's E-commerce giant, Alibaba world-wide

It may start marketing pre-IPO share sale across 3 continents

Alibaba, China’s eCommerce giant, has quickly come onto everyone’s radar as it presents the possibility of being the largest tech IPO ever. According to the New York Times, the company is expected to go on the market at a value of roughly $200 billion – larger than US tech companies Amazon, eBay or Facebook. This week, we bring you articles to explain who Alibaba is and what you can expect from them in the future.

Two weeks, three continents, and 100 meetings. That -- and founder Jack Ma celebrating his 50th birthday on the road -- is what it will take for Alibaba Group Holding Ltd. to pull off the largest initial public offering in U.S. history.

The Chinese e-commerce company is weighing a plan to start marketing the share sale to investors on Sept. 3, with management traveling across Asia, Europe and the U.S. before an initial public offering in the middle of the month, people with knowledge of the matter said.

The schedule, put forth by banks managing the IPO, would have meetings begin in Hong Kong and Singapore before executives travel to London and eventually host their first U.S. event in New York on Sept. 8, the people said, asking not to be identified discussing private information. The timeline has Alibaba targeting a Sept. 16 trading debut, the people said.

Related:

• Alibaba Could Reap $9.4 Billion From New Alipay Deal
• Tencent Net Income Jumps as Games Boost Messaging Apps

The investor meetings -- called a roadshow -- will give Alibaba the opportunity to answer questions from the world’s biggest fund managers and build demand for its shares. With Alibaba and selling shareholders expected to raise as much as $20 billion, the IPO has the potential to be the largest in the U.S. The company’s official price range is expected to be revealed on Sept. 2.


Photographer: Tomohiro Ohsumi/Bloomberg
Jack Ma, chairman of Alibaba Group Holding Ltd., speaks at SoftBank World 2014 in Tokyo, Japan.

Monday Pricing

For trading to start on Sept. 16, Alibaba would have to set a final price the day before -- a Monday. It is uncommon for companies in the U.S. to price IPOs on a Monday, in case news over the weekend negatively impacts market sentiment in the final day of the deal.

The plan is tentative and could change, although Alibaba wants to avoid debuting near the Jewish holiday the following week, one of the people said.

China's E-Commerce Giant

With six financial advisers already managing the sale, Alibaba plans to name additional banks that will have smaller roles on the deal, according to people familiar with the matter. The company will also update investors with earnings from the quarter through June, those people said.

Credit Suisse Group AG (CSGN), Deutsche Bank AG, Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley and Citigroup Inc. are the most senior banks on the IPO. Alibaba may end up using more than 20 financial advisers in total, one person said.

Shares of Japanese wireless carrier SoftBank Corp. (9984), Alibaba’s largest shareholder, rose 2.4 percent at the close in Tokyo. Florence Shih, a Hong Kong-based spokeswoman for Alibaba, declined to comment.

Birthday Celebration

At $20 billion, Alibaba’s sale would edge past Visa Inc.’s $19.65 billion IPO in 2008 as the largest in U.S. history, data compiled by Bloomberg show.

Alibaba plans to divide executives into two separate teams, which will lead to about 100 meetings in total, according to the people. The teams will mostly be together for the larger group meetings, while separating to meet with individual investors, they said. The company hasn’t yet determined who from management will be attending each meeting, the people said.

In the U.S., Alibaba will also visit with investors in Boston, the Mid-Atlantic region, Kansas City, Chicago, Denver, Los Angeles and San Francisco, the people said.

On Sept. 10, when Ma celebrates his birthday, investor meetings will be held in New York, they said.

Alibaba is waiting until September to begin marketing the share sale as it seeks regulatory approval of its prospectus, a person with knowledge of the matter said last month. The company, which originally targeted an early August trading debut, is holding off to avoid rushing the deal as it continues discussions with the U.S. Securities and Exchange Commission, according to the person.

Discounted Valuation

The Chinese e-commerce operator may set its set its IPO value at $154 billion, or 22 percent below analyst valuations, in a move that could avoid repeating Facebook Inc. (FB)’s listing flop, according to the average estimate of five analysts surveyed by Bloomberg last month. The same analysts give Alibaba an average post-listing valuation of $198 billion, the survey shows.

Alibaba said yesterday it will sell its small-business lending arm to the company that already controls payments affiliate Alipay, separating itself from the last of its major financial units ahead of the IPO.

The sale takes financial and regulatory risk relating to the operations off of Alibaba’s balance sheet, while increasing the pool of profits the company can generate from them, the filing shows. The agreement also lifts a $6 billion cap, under certain conditions, on funds that Alibaba could receive if Alipay or its parent company go public, the filing shows.

  By Zijing Wu and Leslie Picker Bloomberg



Related post:

China's Internet giants, Tencent to undercut Alibaba with billion chat app users

British and Westerners' "Shangri-la complex" stymies rational perception of Tibet

 Shangri-La, China

LHASA, Aug. 13 -- Since British novelist James Hilton introduced the fictional "Shangri-la" to Western readers eight decades ago, foreign minds have often perceived Tibet as a mystical but harmonious paradise.

 

China.org.cn ‏@chinaorgcn Aug 12  China opens Tibet forum with focus on development  http://on.china.cn/VercN1  pic.twitter.com/bun6R8K9tV

They believe the mythical Himalayan region, isolated from the outside world, has been a permanently happy land where most inhabitants are meditative lamas clad in crimson robes, holding prayer beads and chanting scriptures.

But scholars and journalists from China and abroad attending the ongoing forum on the development of Tibet said that Westerners' "Shangri-la complex" is hampering and limiting rational understanding of the autonomous region of China.

In many Chinese eyes, Tibet used to be a backcountry with an inhumane serf system. The highland craves for development and civilization as any other part of the world.

Hilton had never been to the Tibetan areas he wrote. When journalists, film directors and politicians in his time portrayed Tibet as a heavenly place, the region was under the feudal system -- a form of society the same cruel as, if not worse than, its European alternatives in the dark Middle Ages.

It was also a land where the average life expectancy for Tibetans was no older than 36 years and wives with extramarital affairs would have their noses and ears cut off for punishment.

"Despite the British invasion of Tibet in 1904, the West did not have the opportunity to understand Tibet," Alessandra Spalletta, China news editor of the Italian news agency AGI, spoke at the forum. "They started a mystification of Tibet while building the mythology of 'Shangri-la.'"

"Western people are fond of their own images of Tibet," she said, "rather than the real Tibet."

As some scholars pointed out, Tibet has become a "spiritual supermarket" for Westerners, who are trying to find what they have lost in their own societies in the process of industrialization and modernization.

Some believed that Tibet, as the "last pure land on the earth," should be immune from any development which they are afraid might lead to destruction of the traditional Tibetan culture and annihilation of Tibetan Buddhism.

"Those people believe that Tibet should remain in a primitive stage for ever and Tibetans should always ride yaks and live in tents," Cui Yuying, vice head of the State Council Information Office, spoke at the opening ceremony of the forum.

For the past half century, however, Tibet has been on an irreversible path of development and civilization, which complies with the general trend of the development of the human society, the senior official said.

With the "Shangri-la complex," many Western scholars have opted to study Tibet's history before the 20th century. Some even suggest the history of Tibet after 1951, when the region was peacefully liberated, is not worth studying at all. Some Western media have shunned the economic achievements Tibet has made over the recent decades.

The notion of Shangri-la, created by the Westerners, has been utilized by separatists for splitting Tibet from China.

"Romanticization (of Tibet) is a part of the Dalai Lama's campaign for separatism," said Narasimhan Ram, chair of Kasturi & Son Limited and publisher of the Indian newspaper Hindu.

He said that the Dalai Lama always talks about beauty and isolation of the old Tibet rather than its backwardness and extreme poverty, taking advantage of the "Shangri-la complex."

Matevz Raskovic, a board member of the Confucius Institute, the University of Ljubljana in Slovenia, told Xinhua that some Western media's skewed depiction of Tibet that has reinforced the "Shangri-la complex" hinders and limits rational understanding of Tibet.

"When you look at Tibet the way some Westerners perceive it, it always goes to religious issues," he said. "It should be responsibility of journalists to expose other faces of Tibet, such as tourism opportunities and cohabitation of diverse cultures." - Xinhua

 Related:

International forum issues the ´Lhasa Consensus´

The 2014 Tibet Development Forum concluded on Wednesday in Lhasa, capital of the Tibet Autonomous Re...
 International forum issues the 'Lhasa Consensus' - CCTV News - CCTV.com English http://english.cntv.cn/2014/08/14/VIDE1407986050448705.shtml#.U-yqKnXS_FY.twitter

US government monitoring its oversea citizens by Foreign Account Tax Compliance Act (FATCA)

Malaysia to ink pact in line with FATCA

KUALA LUMPUR: All local financial institutions will be required to declare their American customers to the United States Internal Revenue Service (IRS) under a new agreement to catch its tax evaders who hide their money overseas.

Malaysia will be entering into an inter-governmental agreement with the US in line with the implementation of its Foreign Account Tax Compliance Act (Fatca).

Inland Revenue Board (IRB) chief executive officer Tan Sri Dr Mohd Shukor Mahfar said Malaysia would fully enforce all the requirements of Fatca by September next year.

“Fatca is a very interesting move by the US to monitor its citizens who have income outside of the country. The rest of the world is required to abide by Fatca or the US government will impose a withholding tax of 30%.

“So, IRB, as the tax authority for Malaysia, along with Bank Negara, will be signing the agreement,” he said at the National Tax Conference 2014 here yesterday.

The tax is imposed by withholding earnings on the funds in the account of the US citizen and paid to its government.

Under the Act, all foreign financial institutions must declare the financial holdings of any US citizen or cough up a 30% withholding tax on their own.

The US imposes income tax on its citizens, regardless of which country they reside in.

Many countries, including Switzerland which was previously considered a haven for those who sought to keep money overseas in secrecy, have signed the agreement.

Other countries listed by the US Treasury website are Britain, Australia and France while Indonesia, Thailand, Singapore and China are those which have consented to entering the agreement.

Earlier, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said the proposed amendment to Inland Revenue Board of Malaysia Act would be tabled at the Dewan Rakyat sitting in October.

Previously, a controversy had erupted when it was alleged that the amendments would transform the tax agency into a firm that invested taxes collected on behalf of the Government.

The Finance Ministry later denied this, adding that all direct taxes collected by the board would be channelled to the Federal Consolidated Fund.

By P. Aruna The Star/Asian News Network

IRS Notes:

Foreign Account Tax Compliance Act

FATCA Current Alerts and Other News
The provisions commonly known as the Foreign Account Tax Compliance Act (FATCA) became law in March 2010.
FATCA targets tax non-compliance by U.S. taxpayers with foreign accounts
FATCA focuses on reporting:
	By U.S. taxpayers about certain foreign financial accounts and offshore assets
	By foreign financial institutions about financial accounts held by U.S. taxpayers or foreign entities in which U.S. taxpayers hold a substantial ownership interest
The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting.

Individuals		Financial Institutions		Governments
U.S. individual taxpayers must report information about certain foreign financial accounts and offshore assets on Form 8938 and attach it to their income tax return, if the total asset value exceeds the appropriate reporting threshold. Form 8938 reporting is in addition to FBAR reporting. > Learn More ...		Foreign To avoid being withheld upon, a foreign financial institution may register with the IRS, obtain a Global Intermediary Identification Number (GIIN) and report certain information on U.S. accounts to the IRS. > Learn More... U.S. U.S. financial institutions and other U.S withholding agents must both withhold 30% on certain payments to foreign entities that do not document their FATCA status and report information about certain non-financial foreign entities. > Learn More...		If a jurisdiction enters into an Intergovernmental Agreement (IGA) to implement FATCA, the reporting and other compliance burdens on the financial institutions in the jurisdiction may be simplified. Such financial institutions will not be subject to withholding under FATCA. > Learn More ...

Do not let USA stoke South China Sea disputes; Round one of Asia pivot ends with tie

FM: China, ASEAN able to safeguard S. China Sea´s peace, stability

Dismissing the so-called tense situation advertised by the US over the South China Sea, Chinese Fore...



Do not let US stoke disputes 

South China Sea issues and thoughtless moves of some countries should not hinder ASEAN's continued exchanges with Beijing

The annual Association of Southeast Asian Nations Regional Forum Foreign Ministers' Meeting was held recently in Nay Pyi Taw, Myanmar, with the disputes and situation in the South China Sea on the agenda.

This is not the first time that the ARF has touched upon the South China Sea disputes. In July 2010, at the ARF Foreign Ministers' Meeting in Hanoi, then-US Secretary of State Hillary Clinton said the disputes were concerned with the United States' national interests and solving them in line with international laws would be the key to regional stability. Her speech was considered to mark a new twist of US policy line vis-à-vis the South China Sea disputes.

The disputes have since then become a key part of the implementation of the US' "pivot to Asia" policy, as well as an increasingly thorny issue in China-US exchanges. Especially so since China operated an oil rig near the Xisha Islands in April, which many US observers believed was part of China's speeding up of its "salami slicing" strategy and called for a response to it.

Before the current ARF Foreign Ministers' Meeting, the US and its allies made multiple moves. In July, US Assistant Secretary of State Daniel Russel advised a "freeze" on actions aggravating disputes in the South China Sea, namely that related parties stop occupying more islands or reefs and establishing outposts, avoid changing landforms and do not take unilateral actions against any other country. While on the surface this initiative might reasonably opt for peace, but in the eyes of Beijing at least, it would actually legalize certain nations' illegal occupying of islands and reefs in the South China Sea in past decades, as well as bestow on the US the status of "arbiter".

The Philippines echoed the US' initiative by claiming it would propose a three-step process to the ARF, namely suspending all actions, setting up a code of conduct among involved parties and solving disputes through international arbitration. Both initiatives seemed to gain support from several nations, and, as Washington and Manila expected, China would face the most coordinated pressure at the ARF.

The US is also trying to improve the binding effect and enforcement mechanism of international arbitration. For example, whether a nation accepts arbitration of the International Tribunal for the Law of the Sea can be taken as the prerequisite of participating in multinational military exercises or the Arctic Council. The US can also consider strengthening economic pressure on the involved Chinese SOEs like China National Offshore Oil Corp, which is reported to build floating liquefied natural gas carriers and explore underwater gas.

Meanwhile, the Philippines has been strengthening its maritime force. Since Benigno Aquino took office in 2010, the Philippine government has already invested 40 billion PHP ($910 million) on purchasing frigates, anti-submarine helicopters and long-range patrol aircraft, with a further plan to install advanced radar and a coastal warning system in the disputed sea area. Japan and Vietnam signed an agreement in early August, according to which Japan will give six ships to Vietnam to empower its maritime police. The Vietnamese government issued an order that all vessels of its Fishery Resources Supervision Department be equipped with weapons like pistols and machine guns as of Sept 15.

On July 11, Nguyen Phuoc Tuong, a former adviser to two Vietnamese prime ministers, said Vietnam must form an alliance with the US "to defeat the new Chinese expansionism" in an op-ed on The New York Times. Japan is preparing for the first Japan-ASEAN Defense Ministers' meeting in November, which many believe is to counterbalance China's emerging maritime power.

All the heated disputes about the South China Sea make the ARF Foreign Ministers' Meeting especially important. On Saturday, Chinese Foreign Minister Wang Yi said that China supports and advocates a "dual-track" approach to solving the South China Sea disputes, namely that disputes should be addressed by the concerned countries peacefully through friendly negotiations, while peace and stability in the South China Sea should be jointly maintained by China and ASEAN countries. That means China is willing to embrace a multilateralism spirit in pacifying the situation and willing to negotiate with the parties involved in the disputes in a rule-based manner, though it will not accept any new trouble caused by certain nations.

 

 ("Countries outside the region can express reasonable concerns, but we are opposed to 'bossy gestures'", Foreign Minister Wang Yi , adding: "China and ASEAN are totally able to safeguard well the peace and stability of South China Sea.")

To some extent, China and the US are competing over South China Sea issues and such competition is on proposing initiatives and rules that can attract more international support with a firmer legal and moral basis.

It should be noted, specifically, that China as a committed supporter of ASEAN and related mechanisms should clarify that it is not seeking to divide ASEAN. Over the years, China has hosted about one-third of the cooperation programs within the ARF framework; in 2015 it will co-host six programs together with ASEAN nations, which cover disaster-relief, maritime security, preventive diplomacy and cybersecurity.

These are good opportunities for ASEAN and China to improve their relations. Both sides need to prevent the maritime disputes from poisoning mutual relations. They cannot afford to be strategically misguided.

 By Zhao Minghao (China Daily)/Asia News Network

The author is a research fellow with the Charhar Institute and adjunct fellow with the Center for International and Strategic Studies, Peking University.

Round one of Asia pivot ends with tie 

The latest ASEAN Foreign Ministers' Meeting wrapped up on Sunday with a joint statement, in which quite an emphasis was given to the South China Sea crisis. Washington has shown its approval for the result, and some US analysts believe US backing has inspired ASEAN countries to be more united in facing China. But there are also other voices claiming that the US was cold-shouldered in the meeting as China was not mentioned in the statement and Washington's call for a South China Sea "freeze" was also missing from discussions.

Perhaps a more convincing conclusion would be that China and the US reached a tie in this engagement in the South China Sea issue.

It was quite a surprise to China when the Obama administration pitched the "pivot to Asia" strategy in 2009. Washington has kept pushing so the dormant controversies in the East China Sea and South China Sea have become more explicit. Countries like Japan, the Philippines and Vietnam keep posing challenges to China's geopolitics.

But in these years, China's neighborhood has become more controllable, as some principles have become a consensus. For example, in the Diaoyu Islands dispute, both China and Japan have expressed their determination to avoid military confrontation, although squabbles and spats never cease about the East China Sea. In the South China Sea, China is taking more initiatives to check the recklessness of the Philippines and Vietnam.

The first wave of force sent by Washington's "rebalancing to Asia" strategy has died down. The US has achieved some of its goals effortlessly, but China has exerted some strength to deal with it. Both sides drew in the first round, as neither side can push their strategies without limitations.

Washington boasts military strength and the support of allies, but China's economic influence in this region gives it leverage to win over many friends. In this case, the US parry has been fended off by China's shield. If we must make these East and Southeast Asian countries pick sides between China and the US, the result would be unpredictable. This is because standing on neutral ground benefits them the most.

Washington will find it more difficult to inflict problems on China after the first round. It will face more resistance. If conflicts surrounding the South China Sea escalated, it would be an unfolding and resource-consuming disaster for both sides.

China has clear goals in its neighborhood policy, which is to safeguard its sovereignty and development environment. But as for the US, a rebalancing to Asia strategy to maintain its dominance in this area is not where its core interests lie. China is more determined than the US. Washington should become more level-headed and stop making calculations. There won't be a united front going against China in this area, and this truth also applies for China, as it is unable to drive off the presence of US as well.

- Source:Global Times Published: 2014-8-12 0:43:02  

Related: 

ASEAN FMs focus on Asian regional issues

Foreign Minister Wang Yi and top diplomats from Europe and Asia are in Myanmar to discuss regional s...

Studio interview: China is committed to resolving disputes peacefully

For more in-depth analysis, we´re joined in the studio by Mr. Zhang Junshe, Vice President of ...

Studio interview: China supports ´dual-track´ approach to resolve S. China Sea issue

For more insights, we´re joined in the studio by Su Xiaohui, Deputy Director of the Department... 

Why is the US going in hard in the South China Sea disputes?

The South China Sea is a critical strategic point.As the mid-term presidential elections in the US approach, Obama wants to show a hard-line attitude. 

US should stop trying to make waves

By confusing right and wrong and throwing its weight behind countries such as the Philippines, Washington's real intention is to contain China's rise in the region and expand its own interests here.

Philippines' plan destined to fail

The Philippines has developed a "three-step" solution plan for the South China Sea dispute with Chin[Read it]

Philippines’ three-pronged plan for South China Sea doomed to fail

Obama whining a result of US decline
Where those responsibilities lie is not decided by Washington. What the US desires does not equal the welfare of all humankind.

Hang on to the roof over your head

Purchasing a property while the prices and mortgage rates are within reach becomes a secure way of protecting your finances against the battering of rising inflation - Both primary and secondary markets are worth considering

The ever changing economic condition and unpredictable spending behaviours make it even more challenging to find the real equilibrium in interest rate.

Bank Negara’s recent move to raise the benchmark overnight policy rate (OPR) from 3% to 3.25% was expected since the last OPR adjustment was three years ago in May 2011.

An OPR increase is always associated with an increase in interest rate.

Bank Negara has taken a bold step to address the economic challenge and became the first country in South-East Asia to increase the benchmark rate in an improved economic environment.

It is a prudent move by the authority in view of the upward pressure on inflation rate and the high household debt at 86.8% of gross domestic product in 2013.

So, how does this increase in interest rate affect us, the public?

Most people generally only relate an interest rate hike to financing cost which includes mortgage and personal loan rates.

In effect, it has a far more profound impact.

Changes in OPR directly affect the overall Base Lending Rate (BLR) which in turn, affects the spending behaviours of businesses and consumers as well as the dynamics of the overall economy.

On one hand, it is used to curb rising household debt and control spending.

On the other, higher interest rate would help to generate a neutral real rate of return for normal savings which is comparatively higher than fixed deposit rate.

However, what does this mean to us in the long run when interest rate is on the rising trend?

This is an interesting question in terms of personal spending and investment planning as it relates to interest rate movement.

Prof Dr Jeremy Siegel, of the Wharton School of Business and best selling author of Stocks for the Long Run, used to say when inflation kicked in, stock prices would go down in the short-term, due to concerns of reduced profits.

Eventually, however, stock prices would rise again in the medium and longer term, when investors realised that stocks could be used as a tool to hedge against inflation, as businesses would past higher costs through to their customers.

It is also interesting to see people sell and buy stocks for the same reason at different times with different considerations.

Similar movements may be observed in other types of investments when people take a longer term view of better ways to navigate through the challenges of inflation.

Prudent spending is always encouraged regardless of good and bad times.

With it, comes prudent planning and investment.

When inflation rate is on an upward trend and value of currencies continues to drop due to the massive quantitative easing (printing of money) measures around the world, using investments to hedge against inflation is one of the strategies to secure our financial future.

One of the investment assets that warrants deeper consideration and provides longer term investment protection is property.

Real estate works well as a hedging tool for a couple of reasons.

Investing early in real estate protects investors against rising land prices, and increasing construction costs during inflation.

Properties purchased before the onset of inflation will still have the protection of the continuous demand to meet the housing needs of a growing population in Malaysia.

An advice that I have continuously heard since my schools days till today is “Hang on to the roof over your head. It will help to keep you financially strong.”

This advice has remained valid over the years. It is not enough to just keep enough cash for rainy days.

Purchasing a property while the prices and mortgage rates are within reach becomes a secure way of protecting your finances against the battering of rising inflation.

This is especially true for those who have yet to own one.

Both primary and secondary markets are worth looking at, as there is surely be something out there that will meet your financial requirement.

“Hang on to the roof over your head” is a time-tested wisdom that will protect you in more ways than one for the future.

FIABCI Asia-Pacific regional secretariat chairman Datuk Alan Tong has over 50 years of experience in property development. He is also the group chairman of Bukit Kiara Properties. For feedback, please email feedback@fiabci-asiapacific.com.

Related posts:

Is having a car still a symbol of freedom?

Make the right money moves: investing in a property is still best 

Our cars are costing us our homes! 

Bankers and lawyers should know better 

Malaysia needs to produce more houses to ... 

Rightways: Healthy wealth management

Migrant wives kept like slaves by Aussies

By GLENDA KWEK

 

Looking out for them: Case worker and former child bride Eman Sharobeem says victims are reluctant to pursue justice through legal means. - AFP

Unhappily married - In Australia, migrant wives in abusive marriages are all the more vulnerable as they are dependent on their husbands. 

KANYA thought she was starting a new life in Australia after arriving from India to marry her husband, but it quickly turned into a nightmare.

She was barred from going out on her own, forced to cook and clean for her partner’s family, and made to sleep outdoors if she did not complete her tasks.

The fate of the 18-year-old, whose name has been changed to protect her identity, mirrors that of others in “slave-like” relationships that Salvation Army worker Jenny Stanger has taken in at a Sydney refuge for trafficked people in recent years.

The women came to Australia under the promise of a happy marriage, only to be exploited by their partners.

“It’s an absolute deception on the part of the perpetrator,” said Stanger of a problem involving nearly a quarter of her safehouse’s residents. Immigration figures show women in such situations come from China, India, the Philippines and Vietnam among others.

“Marriage was the tool that was used to exploit the women for profit, gain or personal advantage.”

“In a typical case, the migrant wife would face extreme isolation, extreme denial of their basic rights around freedom of movement, possibly an exploitation of their labour ... and being denied money,” she said.

Getting a sense of how many marriage visas under Australia’s partner migration programme are used to bring women in for exploitation is difficult. Social workers say victims are often deliberately isolated and threatened if they seek help.

Researcher Samantha Lyneham, co-author of the first Australian study looking into the exploitation of women through migrant relationships beyond forced marriages, said the reluctance of victims to report crimes was a problem – such is their dependence on their abusers.

Lyneham said the fear of being deported, which stemmed from the “precarious immigration status” the women faced, was a key barrier, along with language and also mistrust of police after bad experiences in their home countries.

An inaugural Global Slavery Index published by the Walk Free Foundation in October said roughly 30 million people were living in modern-day slavery, of whom up to 3,300 were in Australia.

Lyneham’s new Australian Institute of Criminology report recorded the experiences of eight female victims – including Kanya – aged 18 to 49, mostly from South-East Asia, but also the Pacific, the Middle East and Eastern Europe.

They found that while some women moved to Australia on marriage visas in search of economic opportunities, others did so for love and to start a family.

All the women had consented to their marriages, having met their spouses through arranged situations, family links, online dating sites and chance encounters. Seven of the women said they married their husbands outside Australia.

Case workers said the husbands – half of whom were from the same countries of origin as the women – were most likely to be dual-citizens.

One woman told of how her husband would lock her out of the house at night. “I would have to stay in the tree overnight,” she said.

Others told of sexual violence and coerced pregnancies, according to the report. The women said their passports were taken and they were blocked from using telephones or having access to money.

Clandestine crime

Lyneham said although the interviews showed cases had been “happening for some time”, it was also clear when she raised the issue with authorities that some were not aware of it.

“It’s a clandestine type of crime that people mistake for domestic violence,” Lyneham said.

The use of domestic violence laws to address cases highlights the difficulties in identifying and prosecuting such crimes, which cut across legislation separately targeting human trafficking, slavery and domestic abuse.

Official Australian data between July 2001 and June 2011 showed 337,127 people were granted partner migration visas, with Britain, China and India the most common countries of origin.

Between July 2006 and Dec 2011, 3,654 people on the visas obtained protection under the Family Violence Provision.

This allows them to apply for permanent residency if they or a family member are subjected to violence. About 12% came from China, 10% from the Philippines and 8% from Vietnam. Others came from India, Britain, Thailand and Fiji.

Lyneham said while the numbers appeared low, previous research showed under-reporting, particularly in migrant communities.

Prime Minister Tony Abbott in June announced more than A$100mil (RM298mil) to fight domestic violence, and vowed a “particular focus” on women from culturally diverse and indigenous backgrounds.

Forced marriages were criminalised and laws against forced labour were strengthened in 2013.

Case worker Eman Sharobeem, a former child bride who was abused during her marriage, said some women who approached her for help were not comfortable pursuing their husbands through the legal system.

While she worked with politicians to help formulate the 2013 laws, what “we are really interested in is educating the community more than just having a law to guide them”.

Her views are echoed by Salvation Army worker Stanger, who praised the legislation but added: “They (victims) are looking for a way out, so ... the more doors we can open, the more likely someone is going to step through that door.” – AFP

Unhappily Married



Related posts:

Australian 'racist rant woman'; AUD goes down unde...

Australia, still an US's sheriff in the Asian Century?
 
Beware of Aussie's “Asian dogs and pussies ...

Australia and Malaysia sign 'refugee' deal 

Australia Tightens Foreign Property Ownership Rules

A love story like a fairy tale

Happy together: Li gazing lovingly at Gan as she admires Li's gift to her for Valentine's Day. LI Kangyu has not left his house ...