Posts Tagged ‘ China ’

Are you among the world’s wealthiest? This will surprise you

Yesterday I was reading Credit Suisse report on global wealth , $3,650 would place you among the world wealthiest !!

Lasr year global wealth grew by 8.3% and now the global wealth worldwide if $263billion

Distribution of Wealth :


$91,240 bn


$85,200 bn

Asia Pacific

$49,849 bn


$21,404 bn

Latin America

$9,113 bn


$3,604 bn


$2,831 bn


The average person is worth $56,000.

An individual $3,650 ( all assets ) you among the wealthiest 50 % of the world population .The other half own only 1% of the world wealth !

77pc of adults – that’s 3.3bn people – have less than $10,000 .

To be the top 10pc of richest people – membership requirement is $77,000 – hold 87pc of the world’s wealth.

$798,000 is what you require to be in the top percentile of the world’s wealthiest. 1 % accounts for almost half – 48.2pc – of global assets.

This report I found very interesting / scary .


Tony Evans


The deVere Group announces a new Partnership with Real Estate Advisory, IP Global

The deVere Group announces a new Partnership with Real Estate Advisory, IP Global.

The deVere Group announces a new Partnership with Real Estate Advisory, IP Global

IP Global to provide expert real estate advisory to deVere Group’s investors worldwide.

IP Global, the full service real estate investment company, and deVere Group, the world’s largest independent international financial consultancy, have announced a landmark global partnership. The tie-up between two industry-leaders will see IP Global provide real estate investment services and advisory to up to 70,000 of deVere’s high net worth clients around the world.

The agreement is a first in the financial consultancy sector and comes at a time of growing investor interest in real estate investment. The deVere Group operates in 70 offices around the world, and the new partnership will provide deVere’s clients, who currently have US$9 billion of funds under management, with access to strategic property investments in high-value real estate markets for the first time.

The new partnership will expand IP Global’s international reach by giving the company a platform to offer its end-to-end real estate investment service in a variety of new markets.

Tim Murphy, CEO, IP Global, said: “We are delighted that IP Global will be providing property investments for the deVere Group. Our team of experts ensure we deliver the high standards and satisfactory returns our clients expect, plus our end-to-end service to manage all aspects of the investment process. This will complement deVere Group’s existing investment offering and open up this high-potential investment sector for its clients.

With over US$1 billion invested alongside our clients in 19 markets throughout the world since 2005 and over GBP 100 million invested in London this year alone, this partnership will further enhance IP Global’s offerings to investors globally. This is a testament to the expertise and reputation IP Global has developed for providing credible, independent real estate investment advice.”

Nigel Green, chief executive of the deVere Group, said: “We have seen growing demand from our clients around the world for real estate investment services and products, and this partnership will help them develop their wealth portfolios further, with access to expert advice and support from a leading real estate investment company”. “We have been consistently impressed by the knowledge and service delivered by IP Global, and we look forward to expanding together as a result of this partnership.”

The IP Global model supports the needs of IFAs’ wealth management clients by offering property as a key asset class and managing the end-to-end investment process. The company will continue to work with a range of IFA partners around the world to identify the right real estate investment solutions for their clients.

IP Global aims to provide investors with an increasing range of property investment opportunities and will expand its teams and operations to support the growth generated by the partnership with deVere Group.

About IP Global Ltd
IP Global is a property investment company that researches and sources prime investment opportunities in high-value markets and invests alongside its clients, sharing the same risk and rewards. It supports investors throughout the purchase, ownership, leasing and resale of their property investment, including financing and legal assistance, providing a uniquely unified, end-to-end service. Established in Hong Kong in 2005 and with a worldwide presence through offices in Hong Kong, Singapore, Shanghai, China, Dubai, Kuala Lumpur and London, IP Global provides unique property investment opportunities for its multimarket client base. It has successfully invested in more than 19 markets globally, with total assets under management exceeding USD1 billion.

About deVere Group

The deVere Group is the World’s Largest Independent International Financial Consultancy. International investors and expatriates employ us to find financial services products that suit their medium to long term requirements for investments, savings and pensions. With in excess of US$9 billion of funds under administration and management, deVere has more than 70,000 clients in over 100 countries. Our independence and ability to offer financial products that are tailor-made to fit an individual’s needs are behind our success.


Australia economy the worst is still to come

Western economy that has defied the financial crisis and kept growing . Australia economy was built on the emerging market bubble .

Assets which boomed off the back of aggressive emerging market growth will come under increased scrutiny with Australia particularly vulnerable.

That is the view of Alexander Friedman, CIO of UBS Wealth Management, who believes certain EM-linked markets are not properly reflecting the slowdown in the developing world.

He said:

‘While low valuations keep us neutral on EM equities, we reiterate our negative position on Australian equities and the Australian dollar, and are adding a new theme expressing a negative view on Australian financials, all of which are overvalued EM-linked assets.’

Emerging markets, Friedman said, are undergoing a two stage transition as foreign capital flows reverse direction.

‘If capital stops flowing, countries tend to go through two phases. First there’s a “crisis prevention” phase in which a country draws on any available liquidity reserves to prevent widespread bankruptcies.’
‘Then there’s a “reform” phase in which countries try to reduce their reliance on foreign capital,’ he said.

Reform phases

In the reform phase, Freidman said the key question is whether previous foreign inflows were channelled into profitable enterprise or speculative ones. One sign of the latter is foreign ownership of local assets.

On this count we are cautious on South Africa, where foreign bond holdings represent a massive 86% of the country’s reserves. This makes interest rates and the rand particularly vulnerable to a reversal,’

he said.

A second sign Freidman is wary of is misallocated capital, and among EM economies, he points out China’s investment-to-GDP ratio of 48% as ‘far too high’.

With producer prices in deflation for the past 18 months the economy is clearly suffering from overcapacity.’‘Imbalances have been able to persist and even grow as vast liquidity in the banking system created by the People’s Bank of China’s de facto dollar peg has fuelled credit growth to unprofitable enterprises, such as the steel industry,

Chinese transition

While Freidman notes the importance of reforms, and a key focus of China’s government, he remains realistic about the implications this transition will have on the world’s second-largest economy.

‘We expect the Chinese economy to continue to disappoint expectations over the course of the year, and believe recently announced measures to lower taxes for small businesses, support trade, and reform railway investment will directly affect the economy in only a limited way. We project growth to slow to 7.2% year over year in the fourth quarter.’

‘We continue to believe in the long-term emerging market consumption growth story but believe near-term performance will be challenging due to the headwinds to EM growth described above,’ Freidman said.

Aussie Falls to Lowest in More Than Two Years

Bloomberg reports Aussie Falls to Lowest in More Than Two Years as Home Loans Slow

Australia an ‘overvalued EM-linked asset’ says UBS WM’s CIO

Australia’s dollar fell to the lowest in more than two years versus the greenback after home-loan approvals grew at the slowest pace in three months, boosting the case for further cuts to borrowing costs.

The Aussie slid against all but one of its 16 most-traded peers amid speculation the U.S. central bank will reduce stimulus this year, narrowing Australia’s interest-rate advantage. Standard & Poor’s lifted the U.S. credit outlook to stable from negative, supporting the view that the Federal Reserve could taper asset purchases under its program of quantitative easing. New Zealand’s kiwi dollar fell.

“Housing is the one area most likely to make up for the mining investment downturn, and it’s disappointed,” said Joseph Capurso, a Sydney-based foreign-exchange strategist at Commonwealth Bank of Australia.

Australian Insolvencies Hit Record

Australian insolvencies hit record for month of April.

A new April record has been set for Australian companies becoming insolvent. Some 941 firms were put under administration, marking the highest tally for that month since records were first made public in 1999.

Some 941 firms were put under administration, according to an FTI Consulting analysis of Australian Securities and Investments Commission records.

Almost 3450 companies have gone into administration so far this year, compared with 3524 during the same period in 2012.

But the number is higher than the opening four months of 2008 to 2011, which included the global financial crisis.


GlaxoSmithKline in £300m bribery scandal

Isn’t that the pot calling the pot black!

GlaxoSmithKline in £300m bribery scandal.

Britain’s largest pharmaceutical company, GlaxoSmithKline, has been accused of bribing doctors with cash and sexual favours in return for prescribing the company’s drugs.

Chinese authorities have detained four senior Chinese GlaxoSmithKline executives as part of an ongoing investigations stretching back to 2007 involving £320m.

The Chinese investigator leading the probe said the head of GSK’s Chinese operations, Mark Reilly, a British national, left the country on 27th June and has not returned.

Gao Feng, the head of China’s fraud unit, said: “We found that bribery is a core part of the activities of the company. To boost their share prices and sales, the company performed illegal actions.”

GSK is alleged to have used a network of more than 700 middlemen and travel agencies to bribe doctors and lawyers with cash and even sexual favours.

GSK said it was “deeply concerned and disappointed” by the allegations and said it would “co-operate fully” with the Chinese authorities. However, Gao said the Chinese investigators had yet to receive any information from GSK’s British headquarters.

Last week, GSK said a four-month internal investigation into its Chinese operation had found no evidence of bribery or corruption of doctors or officials.

Gao said the GSK probe could be extended to other foreign drug companies. “We have also found some clues of illegal money transfers involving other foreign companies,” he said.


Pollution cuts life expectancy by 5.5 years in China

Pollution cuts life expectancy by 5.5 years in China.

A groundbreaking study has found that air pollution in China has cut life expectancy by an average of 5.5 years in the north of the country and caused higher rates of lung cancer, heart attacks and strokes.

The toxic smog in northern China has become a crucial issue of national concern after air pollution spiked to record levels in Beijing in January, prompting citizens to stock up on air filters and face masks.

The new study, co-authored by professors, calculates that air pollution in the north of China caused the loss of 2.5 billion years of aggregate human life expectancy during the 1990s.

Economics professor Li Hongbin said that, “This is the first time anyone has got the data to show how severe long-term pollution affects human health, both in terms of life expectancy and the types of disease”.

“It shows how high the cost of pollution is in terms of human life – and that it is worth it for the government to spend more money to solve the pollution issue, even if we have to sacrifice growth”.

Notably, Li estimates that the shorter life expectancy identified by the study in northern China is equivalent to reducing the workforce there by one-eighth.

The pollution crisis comes as a by-product of breakneck economic development during the past three decades, which has been accompanied by the widespread degradation of air, soil and water.

Environmental worries are now a growing source of social unrest and public protest, particularly because of health concerns.


Is the Chinese bubble bursting ?! Perfect storm ahead

Thursday was a very bad day for China’s economy, the world’s second-largest and a crucial pillar of the global economy, with credit markets freezing up in an unnerving parallel to the first days of the U.S. financial collapse.The Short term borrowing rates in China have soared to record highs as credit dries up ! Looking at this people are fearing the liquidity is on the verge of drying up .

The indicator for this was Shibor (Shanghai Interbank Offered Rate) was at one point up over 29%! This could be the start of the end of the Chinese machine ? The central bank refused to do anything to calm the market .

Perfect Storm
As the Fed prepares to taper its bond purchases (QE) at the same time as tightening the spigot of worldwide dollar liquidity also with the ECB pulling liquidity out the market .

Chinese leaders appear to be causing this problem deliberately, likely to try to avert a much worse problem. And, second, if this continues and even it works, it could see China’s economy finally cool after years of breakneck growth, with serious repercussions for the rest of us.

The effects are felt across the world mainly in the commodity export economy ( Russia , South Africa and Australia ) Australia is looking it could be having its first recession in 25 years!

Fed chairman Ben Bernanke has brought forward his QE exit by lifting the unemployment target from 6.5pc to 7pc. He dismissed the looming threat of deflation as a “transitory” effect.

In my opinion the party’s not over but it’s slowing , and as such I am out you can never go broke by taking profits .

What people forget os that the Latin America’s debt crisis of the early Eighties and East Asia’s crisis in the Nineties were both triggered by turns in the US credit cycle. We never learn ,

China has so much excess in the shadow banking system its scary ! This can make the financial crisis look like a little shower !

China has credit worth $23 TRILLION ! Double the economy , or the same as USA and The whole European Union economy combined !!

When in doubt get out , re focus and re align your thoughts .

Happy Friday

Tony Evans


World investors more bullish on Japan than any other country : Abenomics 2 – 0


Investors are more confident in a Japanese leader than any time since at least September 2010, with optimism about Prime Minister Shinzo Abe’s policies exceeding that for counterparts in the U.S., Europe and China.

Japan offers one of the top two opportunities globally in the next year,
according to 33″ of respondents, up from 21% and beating China for
the first time in surveys dating back to 2009. Considering Japan is one of China largest investors that does make sense !

As I mentioned in January Prime Minster Abe is effectively creating his war cabinet on deflation , last piece is the win the up and coming elections .

What Abe has done is creating a change in the Japanese mind set , but also he has also changed the perspective of Japan on the global stage .

May this continue for a long long time .

From a very optimistic Tokyo ,


Tony Evans

Breaking News -8 Chinese ships enter Senkaku/Diaoyu islands

japan chinaEight Chinese government ships enter waters around disputed Senkaku/Diaoyu islands, Japan Coast Guard says .

Watch the yen strengthen and the Nikkei give up the gains ,

Japan has summoned the Chinese ambassador after eight Chinese patrol ships sailed near the disputed islands.

China said its ships have been monitoring Japanese vessels, as a group of Japanese activists sailed several boats to the area.

Tony Evans

Tokyo , 13:49

China’s growth could slow sharply by 2030 – Fed

Reading the below article and there’s one point that stuck with me , GDP is man made ! After living in Shanghai for a period I saw that a “great deal” of things are fake and it’s a given that the population is not correct as funding was based on population .I believe that 10/15% variable is conservative overstated .

But at the current rate China generates GDP growth in a week equivalent to Cyprus yearly GDP & 12.5 weeks GPP growth of Greece !!

China might be slowing but it’s still growing !

China's growth could slow sharply by 2030 – Fed.

China’s growth could slow sharply by 2030 – Fed

The US Federal Reserve believes that global economic trends might shift sharply by 2030, as China faces mounting headwinds – potentially forcing it to fade dramatically in the years ahead.

Declining productivity and an aging population could shrink the trend growth in China to around 6.5% by 2030, according to a new study. Moreover, if the current forces that are undermining economic activity combine in a worst-case scenario, the pace could fall to under 1%.

Notably, one of the Fed’s Senior Adviser wrote that GDP growth rate is the sum of the growth in employment and the growth in output per employee, and China faces challenges in both of these categories. Meanwhile, a US diplomatic cable recently released by Wikileaks has shown that Li Keqiang, China’s new premier, called the GDP figures ‘man-made’ and therefore unreliable as they underestimate inflation.

Chinese economic data is often questioned by sceptics who believe that government statisticians refine the numbers to make the Communist Party look like it’s bringing prosperity to its citizens.

Nonetheless, in the midst of the financial crisis, buoyant Chinese growth helped to support the global economy after recessions in the United States and Europe.

Economists commented that most investors would agree that the Chinese economy cannot maintain the extremely rapid growth rates it has seen over the past decades. The question is thus not whether the Chinese economy will slow but by when and by how much.

If you are looking for impartial and up-to-date professioanl financial advice about international investment funds, speak to a deVere Financial Adviser for a whole-of-market approach.

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