The Tsinghua Media Survey Lab, Ant Financial and Top Think Tank jointly carried out the survey that drew 4,980 respondents. Over 40 percent of students in their 20s reported having invested in the stock market, while 37 percent said they had purchased shares from investment funds.

Despite their experience, the students were shown to be immature in their perspective towards investing. Three of out five respondents believe investment products with high yields but low risks are normal. Additionally, many of the students have unrealistic expectations of their financial returns: one third expect returns of 10 to 18 percent, while another third anticipate a yields between 5 to 10 percent.

Tsinghua Media Survey Lab director Zhao Shuguang thinks Chinese students need more financial education. “Finance is an important skill to survive in modern society, after intelligence and emotional balance, but the development of financial education has not kept up with that of financial products and services in China,” he said.

As it is, others have already raised this same warning.

After last year’s Chinese stock exchange meltdown, the China Securities Regulatory Commission announced that 36 Guangzhou schools will serve as a pilot program that will see elementary students as young as five years-old be taught financial management with lessons on how to trade stocks on the Chinese stock market.

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The massive infrastructure undertaking will not be cheap. To help cover the costs, China plans to invest upwards of 77 billion yuan ($11.7 billion) on civil aviation infrastructure this year alone. The investment will support eleven key infrastructure projects and 52 upgrades on civil aviation facilities, including work on new airports in Beijing, Chengdu, Qingdao, Xiamen, and Dalian.

Construction of Beijing’s second international airport is scheduled to be completed in June 2019. Work on the airport’s terminal and air traffic control facilities began last September, while construction of other support buildings is expected to start June of this year. Located to the south of the capital, Beijing New Airport will be the largest in the country. The airport will have seven runways and process some 72 million passengers a year.

Meanwhile, a new runway being built at the existing Beijing Airport, is anticipated to help accommodate an additional 8 million passengers a year.

Citing a rise in air travel that saw Chinese take 4 billion domestic trips and over 100 million international trips last year, the CAAC plans to not only increase the number of airports but also the number of domestic and international routes.

Xu Hongjun, a professor at the Civil Aviation University of China, admits that the expansion of airports in China is not good for everyone. “A lot of small airports are not doing well. They need a lot of subsidies from the central government. They were too optimistic,” said Xu. Perhaps the best example is the airport in Libo, Guizhou. Following the completion of construction in 2007 at a cost of $57 million, the airport made headlines after receiving only 151 passengers in all of 2009.

Compounding the problem is the fact that Chinese airlines have been rated as some of the worst in the world, and that Chinese passengers normally have to endure numerous flight delays when traveling in China. Domestically, Chinese airlines are also facing increased competition from the country’s high-speed rail network, which offers passengers a more affordable way to travel within China.

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According to a poll conducted by P2P lender iqianjin.com and AdMaster, a marketing data technology company, peer-to-peer lending remains China’s third most popular choice for investments of less than 500,000 yuan ($77,150).

Of the 5,000 people polled for the survey, 38 percent said they favor investing on P2P lending platforms, beating out bank deposits (37 percent) and stocks (35 percent) but still far behind Internet-based investment services (76 percent) and wealth management products sold by commercial banks (40 percent).

However, when considering investment in excess of 500,000 yuan, 70 percent of respondents would choose stocks rather than P2P platforms (at 56 percent).

The news of the popularity of P2P investment platforms comes at a time when they have received a lot of negative press throughout China. By the end of November, 1,157 of the platforms were reportedly facing financial problems, with either top executives absconding with investors’ money or investors having difficulty withdrawing their cash. A November report by wangdaizhijia.com claimed there were 32 more platforms believed to be in trouble, involving 157,000 investors and 8.27 billion yuan worth of loans.

Only 12 percent of those surveyed in the iqianjin survey believed the risk involved in P2P sites to be “fairly high”.

In response to the China Banking Regulatory Commission completing the basic draft on proposed regulations for the P2P industry, iqianjin founding partner, Yang Fan, said the CBRC is likely to require all P2P lending platforms to be backed by banks in the future, and hoped the new laws can be adopted without too much trouble.

“We look forward to the introduction of regulations on P2P lending and hope the regulations will not be too rigid. We would welcome the gradual, smooth elimination of unqualified platforms, but do not want to see any abrupt or radical reshuffle of the industry,” said Yang.

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The scheme is part of the EB-5 program through which the US Citizenship and Immigration Service grants a foreign investor a US visa for a $1 million investment that creates at least 10 new and permanent jobs for Americans.

The Golden 1 Center (under construction)

“This is the first time that an area combined with surrounding mixed-use development has been offered as a prime EB-5 investment opportunity,” said Ginny Fang, CEO of Golden Gate Global. The project allows investors to contribute to the effort to build a new home for an NBA basketball team and contribute to the city of Sacramento, Fang added. Investments under the EB-5 plan can comprise up to 15 percent of the total project.

While the EB-5 program is open to any nationality, it has proven to be especially popular for rich Chinese immigrants. Chinese applications currently account over 80 percent of all immigrant investors to the USA compared with just 13 percent a decade ago. With this in mind, promotions for EB-5 visas are mainly held in Chinese cities such as Beijing, Shanghai, Shenyang, and Dalian.

JMA president and CEO Todd Chapman, whose company is jointly building the arena along with the Sacramento Kings, wants prospective Chinese investors to know that their investment isn’t just helping an NBA team, but also the investors themselves.

“The (potential for) job creation in this project is tremendous and will assist EB-5 investors to achieve their goals of granting access to educational and career opportunities for their families,” said Chapman.

In March 2015, the Sacramento Kings signed a ten year deal to have Shanghai-based Solar Power Inc (SPI) develop its rooftop solar-powered photovoltaic system. The multi-purpose basketball arena, luxury retail, hospitality and residential complex will be the first sports arena to use 100 percent solar power for its electricity.

“The Sacramento Kings connects SPI to the NBA’s huge Chinese and worldwide fan base,” said Xiaofeng Peng, Chairman of SPI. “Together we have a shared commitment to promoting a healthy lifestyle through sports and a greener future through solar energy.”

Related:

• Lin-sanity Comes to Shenzhen: NBA Preseason Game Set Between LA Clippers and Charlotte Hornets
• NBA Star Kobe Bryant Attracts Huge Crowds in Guangzhou
• NBA Star Allen Iverson Says He Will “Never Go Back to China” After Terrible Experience

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As these photographs show, everything is fine, and all is well. Unlike the recent bad weather brought on by twin typhoons striking China, the storm has broke on financial markets, and there’s nothing but smooth sailing from here on.

Yes, Chinese stock market speculators have been shown to be smiling ear to ear against a backdrop of red blurry numbers throughout the years, showing that no matter how bad things get, a toothy grin will signal when the storm is over.

Here’s how things looked in December 2014:

August 2014:

June 2014:

In 2013:

September 2012:

May 2012:

December 2011:

October 2011:

And lastly, this chestnut from all the way back from October 2008:

Now, that’s a lot of happy people. But hey, if there’s ever a lack of smiles for whatever reason, there’s always a more direct way to express confidence as seen in this picture from last May:

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Foreign critics may find the news alarming, particularly considering how the speculation of Chinese investors is impacting real estate markets, and people are quickly priced out of real estate in their own backyards. Los Angeles real estate broker, Eric Coven, openly admitted to creating a group to attract rich Chinese buyers for high-end luxury villas in Las Vegas. “I can make about $4 million a month from making quick sales to a group of Chinese customers.”

China based investment broker, Yan Weiming, disagrees. “Saying that Chinese newly-rich are throwing tons of money to purchase real estate overseas is just speculation,” said Yan. Meanwhile, American-Chinese real estate developer, Jennifer Wu, argues Americans should change their perception of Chinese buyers. “We should cherish Chinese investors. They are reliable, and help strengthen overseas real estate markets.”

Part of the push to purchase overseas property is a complete loss of faith in the broken Chinese system. According to Chinese investment advisor and real estate researcher, Yin Xufei, Chinese purchasers feel they have no safe alternatives but to invest overseas. “Chinese (house) buyers are inclined to invest overseas,” he said. “The risk to invest in the Chinese stock market is high; the risk involved with the local real estate market is equally high. This is why many Chinese turn to countries abroad when investing.”

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The focus of the conference was to seek investment transportation, shipping, and other infrastructure projects, a key component to Guangzhou’s push to become a major international shipping hub and logistics center. Other projects at the conference focused on culture, financial services and manufacturing.

The most expensive project seeking investment was the Guangzhou Metro Line 11 project. Projected to cost RMB 41.4 billion, the rapid transit rail line will run in a circle around Guangzhou, passing through the Guangzhou Railway Station, the Guangzhou East Rail Station, Pazhou and Fangcun. In anticipation of the massive infrastructure undertaking, Guangzhou is also seeking investment for the Guangzhou Railway Station Renovation project and Guangzhou North Station Integrated Transport Hub project.

Guangzhou’s mayor, Chen Jianhua, spoke of the ambition of the city’s infrastructure undertakings: “As the main city of the PRD national autonomous innovation zone, we plan to expand the city’s economic reach by 2016. The expenditure of the entire city’s research and development far exceeds that of national and provincial levels when compared to the GDP.”

Last year, Guangzhou’s GDP was valued at 1.6 trillion yuan, placing it among the top economic performers in China. Meanwhile, foreign investment to Guangzhou has topped $5 billion. An impressive 236 of the world’s top 500 companies have invested in Guangzhou.

The post Guangzhou Seeks RMB 110 Billion for Large-scale Infrastructure Projects appeared first on The Nanfang.

Beijing Yanjing Brewery, the third-largest beer manufacturer in China, is expected to sell 20 percent of its shareholdings to a foreign investor. Bloomberg cites industry insiders who say the sale is imminent, and is worth around $700 million based on Yanjing’s current market share value.

Yanjing is the only major beer producer in China without a foreign investor, leading some to say it lacks in foreign experience and technological advancements. Other beer producers in China are already paired up: Snow Beer is produced in a joint venture with U.K. brewer SABMiller. A fifth of Tsingdao Brewery is owned by Ashi Breweries of Japan, while Harbin Brewery was purchased by Anheuser-Busch in 2004.

News of potential foreign investors overshadowed news that a Yanjing Brewery department head had been sentenced to 10 years in prison by a Shunyi court for accepting RMB 122,000 in bribes.

In other developments, a Yanjing plant in Fengzhen is spending RMB 100 million on an expansion project.

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While first-tier cities like Beijing, Shanghai, Guangzhou and Shenzhen may be more resilient, some other markets are particularly prone to a downturn, according to the chief economist for Guotai Jun’an Lin Cai.

Lin counts down a list of the cities most likely to see property prices plummet. Some of the names aren’t surprising, such as the ghost city of Ordos, but the list also contains shocking examples of second-tier cities.

The list doesn’t include any cities from Guangdong, but does include four cities from Zhejiang, the most from any province.

1. Jinhua, Zhejiang
2. Wenzhou, Zhejiang
3. Yuncheng, Shanxi
4. Taizhou, Zhejiang
5. Ordos, Inner Mongolia
6. Zhangzhou, Fujian
7. Luohe, Henan
8. Hangzhou, Zhejiang
9. Datong, Shanxi
10. Longyan, Fujian
11. Handan, Hebei
12. Wuxi, Jiangsu
13. Quanzhou, Fujian
14. Anyang, Henan
15. Changzhou, Jiangsu

Photo: Anhui News

The post The Top 10 Chinese Cities Where Real Estate Prices Could Plummet appeared first on The Nanfang.

After a lifetime of service to their country, some Chinese officials can’t wait to escape from it.

China’s government officials may be tasked with serving the country, but many are saving up just so they can leave it.

“Naked officials” have come to prominence recently with over 1,000 Guangdong officials reprimanded for having moved their family and assets overseas. However, this doesn’t even scratch the surface. As reported by China Youth Report, Chinese officials have begun forming another demographic that have emigrated overseas to become investors in foreign real estate.

The report is heavily based upon an interview with Wu Guo, a wealthy businessman from Western China who now lives in an upper-class US neighborhood.

Wu’s neighbors and guanxi primarily consist of former Chinese officials who have also emigrated abroad. Wu mentioned an official in his 40s who worked in a railroad department. He decided he had saved enough money a couple of years ago so quit, got himself a fake vacation visa, then took his entire family to America.

These wealthy former Chinese officials primarily invest in real estate, which is common among other groups of Chinese overseas as well.

According to a July report by the US real estate brokers association (NAR), ethnic Chinese purchased $22 billion worth of real estate from April 2013 to March 2014. Chinese buyers were reported to have spent the most at $600,000 each on average. Furthermore, 76 percent of those purchases were made using cash.

An analysis by Yang Ping explains the reasoning behind the tendency to purchase real estate:

My investment may not make a profit, but it will be able to get me a green card.

In 2004 and 2005, Wu noticed a number of Chinese officials emigrating overseas, especially to Beverley Hills and Vancouver. Wu explains how they get away:

(Officials) of lower grade can apply using their own authentic identities. (Officials) with a higher grade will have to apply using a fake identity. Some still receive a salary from (the Chinese government) even after immigrating.

Wu also explains the plight of the “naked official”, and how their position puts them in a compromising position:

The wife and children have already been sent away, and they are getting ready themselves by procuring a green card. However, they are afraid of the risk during their green card application, and so don’t do it.

Once they’ve arrived though, they quickly realize things aren’t the same as they were back in China. Many of them are unable to assimilate into US local society or upper class social circles. Instead, they keep to themselves:

They have money, and so form their own circles. Every day these people eat and drink together, have tea, play mahjong.

But it’s real estate investor Chen Min that categorizes the worst corruption in China as coming from huge bureaucracies, or in distant places beyond the reach of the central government:

(These officials) will come from one of two places: from big cities like Beijing or Shanghai, or from tiny places that you have never heard of.

It comes down to this: A lifetime of toil and moral choices culminates in a decision to escape from the system that made you. Perhaps its for this reason that popular television show Prison Break enjoyed a huge following in China.

Related:

• 1,000 “Naked Officials” Netted in Guangdong Crackdown
• CCTV Accuses Bank of China of Money Laundering, Helping Elite Move Abroad
• “Ultra Rich Asian Girls” To Star In New Canadian Reality Show

[h/t @ChuBailiang]

Photo: gzxw

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