Month: January 2013

China Finance Minister Xie Xuren Works to Curb Debt

China’s Finance Minister just recently called for strengthening efforts to curb local government debt. This is a result of the sharp rise in borrowing by governments to try to boost the slow economy. Finance Minister Xie Xuren said said that they need to create more prevention of financial risk but that they also need to have a financing mechanism for local governments.

Bonds that were issued by local government financing organizations totaled 636.8 billion yuan last year. This was more than double the amount in 2011 as the central bank-backed China Central Depository & Clearing Co. said in a previous report.

The Minister also urged local governments to do a better job with their own fiscal policies to boost the economic growth in the area.

Apple iPhone5 Makes Quiet Entry Into China

Certainly, for anyone interested in investing in China and in understanding the Chinese financial mentality, the debut of the iPhone 5 is big news. Apple Inc.’s iPhone 5 debuted in mainland China on Friday…to very little reception.

The arrival of the iPhone 4S in January sparked a fury of interest – but this one was just the opposite. Two iron fences were actually placed in front of the Joy City Apple store this week to control the crowds, but there were not crowds in site.

As Wang Lu, a woman in her 20s said, “I was told that I had to make a reservation online first. Even if I apply right away, there is no chance I can pick up a phone today.” Apple actually created a reserve-and-pickup policy after the chaos that they experienced in January. Therefore, it’s hard to know if the quieter atmosphere was entirely due to a lack of interest or to the new processing system. Customers today have to apply online and then attend a drawing to secure a phone.

Analysts have said that, in addition to the new selling policy, the ample distribution channels and stock has resulted in a much lower-key welcome for this phone.

As one Beijing-based telecom industry insider, Xiang Ligang, said: “If customers can buy the iPhone 5 anywhere, why bother to buy one at Apple flagship stores or from scalpers?”