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Apr 5

The average Internet download speed in the U.S. is slower than that in 27 other countries, according to a new report by the Communications Workers of America.

Signed earlier this year, the American Recovery and Reinvestment Act includes a provision for a national broadband plan by spring of next year and grants of $7.2 billion to bring high-speed Internet to rural and remote locations across the country.

The 2009 report was compiled using data from the CWA’s latest Speed Matters test, which measures the time it takes to communicate with the nearest server on the Net. Gathered from May 2008 to May 2009, the test tracked the speed of more than 413,000 Internet users.

The report discovered that Internet users who live in the Northeast or Mid-Atlantic regions enjoy faster speeds than those in the South or West. The five fastest states included Delaware (9.9 mbps), Rhode Island (9.8 mbps), New Jersey (8.9 mbps), Massachusetts (8.6 mbps), and New York (8.4 mbps).

That’s a step in the right direction, said the CWA. But the organization would like to see more specific improvements.

The U.S. is the only country without a national policy to promote high-speed Internet access, noted the report. But that may be about to change.

Web surfing in the U.S. averages around 5.1 megabits per second (mbps), lagging far behind top-ranked South Korea, where speeds average more than 20 mbps. In 2007, the U.S. download speed was 3.5 mbps, inching up only 1.6 mbps since then. At that rate, notes the report, it will take the U.S. 15 years to catch up with South Korea.

The CWA’s 2009 Report on Internet Speeds also compared Internet performance throughout all 50 U.S. states.

In the report, the CWA called for such measures as an Internet infrastructure with enough capacity for 10 mbps downstream and 1 mbps upstream by 2010, tax incentives for businesses to provide faster speeds, and grants to provide computers and broadband equipment to low-income households.

(Credit: Communications Workers of America)

“Every American should have affordable access to high-speed Internet, no matter where they live. This is essential to economic growth and will help maintain our global competitiveness,” said Larry Cohen, president of the Communications Workers of America. “Unfortunately, fragmented government programs and uneven private sector responses to build out Internet access have left a digital divide across the country.”

States on the slow end were Mississippi (3.7 mbps), South Carolina (3.6 mbps), Arkansas (3.1 mbps), Idaho (2.6 mbps), and Alaska (2.3 mbps).

Apr 5

Li was given a very warm reception from the students, who massed around him after his talk to have their pictures taken with one of China’s most prominent CEOs. Only one student hinted at the censorship dance required to operate a search engine in China, asking Li how his company manages the tricky relationships with regulators.

“If you can’t find it on Baidu, you can’t find it anywhere else,” Li said. That, of course, can be interpreted in a number of different ways.

The key to Baidu’s success amid a terrible recession for Internet companies in late 2000 and 2001 was careful use of the initial venture capital investment in his company and making a tough decision to overhaul Baidu’s business model from providing back-end search technology to portals to designing its own front-end user interface, Li said. He also outlined his vision for future search called “box computing,” which seemed to involve a Chrome OS-style user interface that would run independently of the operating system as the start page for a new generation of computers and use semantic technology to deliver a search result more in tune with the searcher’s intention.

Baidu CEO Robin Li advised Stanford students to make sure they understand the Chinese market if they want to do business there.

PALO ALTO, Calif.–Baidu CEO Robin Li, on a rare visit to Silicon Valley Wednesday, explained the rise of his company’s search engine in China before a group of students more interested in entrepreneurial tips than censorship.

The Internet is new everywhere, Li said, but it’s especially new to China. That means that regulations haven’t always anticipated the issues that can arise on the Internet and lag the pace at which the Internet evolves, he said. But he otherwise avoided any mention of Baidu’s role in preventing Web pages that run afoul of the Chinese government from appearing in Baidu’s search results: a 2008 study by the University of Toronto’s Citizen Lab found that Baidu censors far more search results than competitors.

(Credit:
Tom Krazit/CNET)

Most of the questions came from students who wanted to know how American companies can break into the fast-growing Chinese market. Li said there’s no substitute for having a local presence in China, and not to underestimate the growth of the Internet in China. Baidu’s search index triples every year, he said, and competitors often can’t keep pace with that growth, meaning they do not offer all the pages that Chinese Web surfers seek.

Li ended a trip to the U.S. Wednesday at Stanford University, speaking to a crowd of several hundred students about the lessons he learned shepherding Baidu through the first dot-com bust and growing it into the Google of China. Baidu has 76 percent of the Chinese search market, he said, which consists of 338 million Internet users: larger than the entire population of the U.S.

Jan 7

China’s latest interest rate hike would have no easily quantifiable impact on the influx of so-called “hot money” as such funds would not be deposited in banks simply to earn higher rates, Dr. Ou Minggang, deputy chief editor of the Chinese Banker magazine, told Xinhua on Friday.

Rather, analysts said, funds were likely to be attracted into China by an anticipated appreciation of the yuan and continued gains in the equity and real estate markets.

“Hot money” refers to short-term capital flows that move from market to market, seeking the highest returns.

The People’s Bank of China (PBOC), the central bank, announced on Thursday that it would raise the one-year deposit interest rate by 27 basis points to 4.14 percent and the lending rate by 18 basis points to 7.47 percent, effective on Friday.

This rate hike was China’s sixth this year, part of a series of moves to ease inflation pressure, as the economy is expected to expand 11.5 percent for the full year.

Meanwhile, last week, the U.S. Federal Reserve sliced a key interest rate by 25 basis points to 4.25 percent, the third reduction in three months, in an effort to prevent a recession.

There are market rumors that, as Chinese and U.S. rates converge, more “hot money” will flow into China as some investors bet on the appreciation of the Chinese currency.

But that isn’t the government’s main concern, analysts said.

“The key concern for the central government is to cool off the red-hot economy, not the influx of hot money from overseas and foreign exchange problems,” said Tang Min, deputy secretary-general of the China Development Research Foundation.

China’s consumer price index (CPI), the key inflation indicator, surged to an 11-year high of 6.9 percent in November, mainly driven by soaring food prices.

Any fund inflow would be “targeted at the financial markets including the surging stock market and the real estate market,” said Ou, adding that the country would attract the inflow of hot money betting on the appreciation of the yuan.

Market observers predicted that next year, the Chinese currency would appreciate by more than 8 percent. The Renminbi, which stood at 7.3572 to one U.S. dollar on Friday, has appreciated about 11 percent since China depegged it from the U.S. dollar in July 2005.

China has taken a series of measures to cool off the economy, including increasing interest rates, encouraging domestic consumption, and better managing the property and stock markets.

Dec 30

Chinese companies enjoyed stronger growth in 2007 than in the previous year on the back of a robust national economy, according to an official business climate index published on Thursday.

The quarterly index, which serves as a key gauge of corporate performance, reported year-on-year gains throughout last year, said the National Bureau of Statistics (NBS), which filed the index.

The fourth-quarter index remained high although it dipped below the figure from the previous quarter, the NBS said in a statement posted on its website.

However, the index has now declined for two consecutive quarters following a series of government measures to cool the economy.

The index, based on a survey of 19,500 Chinese firms, was 143.6points from October to December, 1.1 points lower than the July-September period, but 4.2 points higher than a year earlier.

Property-related construction companies, however, appeared resistant to the downward trend and actually gained 3.2 points from the previous quarter, in line with the country’s booming property sector which continued to be boosted by rising housing prices in the fourth quarter.

The index, with the 100-point mark as the marker between depression and prosperity, tumbled to 116.6 points, its lowest level in recent years during the outbreak of SARS in 2003, but has since stayed above 130.

Dec 29

Household necessities prices in China stayed stable during the Spring Festival, the Chinese Lunar New Year, the Ministry of Commerce reported Tuesday.

The average wholesale price of vegetables on Feb. 10 declined to 3.78 yuan per kilogram (52 U.S. cents), down 0.3 percent from the previous day and 2.8 percent from Feb. 6, the New Year’s eve, according to ministry statistics.

Beef and lamb prices fell 0.1 percent from the previous day. The retail price of eggs fell 0.1 percent during the period while rice and peanut oil rose 0.2 percent.

In mid-January, China vowed to restrict price rises for key household commodities, including grain, edible oils, meat, milk, eggs and liquefied petroleum gas.

It was the latest in a series of moves since July to cool surging inflation that has stayed well above the official critical mark of four percent and shot to an 11-year high of 6.9 percent in November.

Dec 26
Don’t sell Chinese stocks
Posted by admin in Uncategorized on 12 26th, 2009| | No Comments »

Despite continuous dives in domestic stock markets, Jim Rogers, co-founder of the Quantum Fund and a veteran US investor, said he was still confident in China’s capital market.

In a recent interview with the Beijing Youth Daily, Rogers said he had sold his stocks in all emerging markets except for China, and there are no reasons for him to sell his Chinese stocks.

Mainland stock markets have experienced a major slump since last October, as the benchmark Shanghai Composite Index dropped from a record high of 6,124 points to below 4,000 points at the end of last week. Rogers said the correction, however, was beneficial to healthy market development.

“Originally, some stocks in China’s market were highly overpriced and the drop helped rid the market of these bubbles. Since last year the Chinese government has been trying to cool the property market and stocks, introducing a series of tightening measures including higher interest rates and bank reserve ratios. The moves did lower the asset prices and adjust the stock markets.”

The principle of stock investment is always “to buy at low prices and sell at high prices,” said Rogers.

Rogers predicted the commodity market to continue its bullish trend into the next decade due to imbalances of demand and supply. He also predicted gold to exceed US$2,000 per ounce in the future.

Dec 26

China has room to increase interest rates and banks’ reserve requirements to cool the world’s fastest-growing major economy, central bank Governor Zhou Xiaochuan said yesterday.

“There is room for all monetary policy tools, including rates and reserve ratios,” Zhou told reporters at the annual meeting of the nation’s legislature in Beijing on Sunday. He made the same comment about rates 10 days ago.

Six increases in deposit and lending rates last year and record reserve requirements for banks have failed to prevent inflation from accelerating to an 11-year high. Raising rates may attract overseas money into an economy already flooded with cash.

“Inflation remains the central bank’s biggest concern this year,” said Wang Yuanhong, an economist with the State Information Center.

The key one-year lending rate is at a nine-year high of 7.47 percent. The deposit rate is 4.14 percent, less than half the 8.7 percent pace of inflation in February. Banks are required to set aside 15 percent of deposits as reserves.

While inflation accelerated last month on food costs and supply disruptions caused by blizzards, the trade surplus narrowed, the value of new loans dropped from the previous month and growth in money supply slowed.

It’s “too early” to say monetary policy has succeeded in cooling credit and money-supply growth, Zhou said.

Some economic data “improved a bit” in February, “but there were special factors such as the Spring Festival and the snow disaster,” he said, without elaborating.

Loan growth may top a government target for the first quarter of this year, Wu Xiaoling, a former vice governor of the People’s Bank of China, said yesterday.

“We still have one month to watch lending growth for the first quarter,” Wu added, without specifying the target.

Lending limits won’t be relaxed because of the rebuilding required after the blizzards that swept across parts of the country in January and February, Wu said.

The central bank wants no more than 35 percent of this year’s new loans to be made in the first quarter, the Shanghai Securities News reported on December 21 last year. This year’s lending growth will be capped at 15 percent, the newspaper said.

Premier Wen Jiabao said on March 5 that the government needs a “tight” monetary policy and to do more this year to curb lending growth and price gains.

Small rural lenders may face “liquidity difficulties and even payment risk” this year because of government measures to slow loan growth, China Banking Regulatory Commission vice chairman Jiang Dingzhi said on February 26.

Dec 24

Chinese shares soared on Thursday morning as an overnight stock trading tax cut boosted investors’ confidence, with the major index rising 7.29 percent and nearly touching the daily ceiling in the morning session.

The benchmark Shanghai Composite Index ended the morning trading 239.07 points higher at 3517.40 after surging by 9.6 percent, near the daily limit of 10 percent, to the highest position of 3593.20 before 10:30 a.m.

The Chinese government announced on Wednesday it was to cut the share trading stamp tax from 0.3 percent to 0.1 percent from Thursday in an effort to boost the equities market.

Investors’ enthusiasm was stimulated by the long-expected tax cut, with gainers outnumbering losers by 785 to 2 in Shanghai and 626 to 1 in Shenzhen. Aggregate turnover boomed to 175.9 billion yuan (about 25 billion U.S. dollars) from a daily total of 120 billion yuan on Wednesday.

Real estate, construction and metal sectors led the rebound, with their share price indices jumping more than 8 percent.

The Shanghai index opened 261.54 points, or 7.98 percent, higher at 3539.87 points on Thursday. The Shenzhen Component Index opened at 12787.38, 892.14 points, or 8.51 percent, up from the previous close.

The stamp tax cut stemmed panic selling and would push the market back on the track of stable development, said Galaxy Securities analyst Li Feng.

The Shanghai index rose 4.15 percent to 3,278.33 on Wednesday before the tax cut announcement but still 37.7 percent lower than the beginning of this year and 46 percent off its peak on Oct.16.

“The market had seen bubbles removed and was worth investing in at current price levels, while the room for future rebounds was up to macro-economic performance,” said Li.

Meanwhile, analysts said investors should remain cool-headed and prevent risks amid drastic fluctuation.

The stamp tax cut would not fundamentally change the operation of China’s stock market but only render short-term fluctuations, said Guosen Securities analyst Lin Songli.

“Investors need to take a sensible attitude as the (stamp tax cut) policy was actually aimed at adjusting the psychology of investors,” Lin said, warning that policy adjustment might trigger bigger rises and falls.

Better regulation in other aspects, including refinancing, was needed to help China’s stock market develop healthily and stably, Lin said.

Analysts also blamed the release of a large amount of non-tradable shares into the market, saying the tax cut could not tackle all the current problems.

China’s stock market was still immature in many aspects and needed urgent improvement in transparency, efficiency, and safe operation, said an executive meeting of the State Council presided over by Premier Wen Jiabao on Wednesday.

The trading tax cut followed a couple of recent supporting measures. The China Securities Regulatory Commission (CSRC) said on Sunday it would encourage block trading for bulk sale of shares freed from the lock-up period.

It specified the procedures of the operation on Thursday, saying selling the formerly locked shares on the bidding market would receive real-time monitoring.

Investors have long complained that the huge amount of such shares would flood the market and therefore sink share prices.

When more than 1 percent of a listed firm’s total shares are sold within a month, the trade should be conducted through a separate block trading system operated by the Shanghai and Shenzhen exchanges, the CSRC said.

The CSRC had also punished two fund managers for insider trading. The China Securities Regulatory Commission said the fund managers, Tang Jian and Wang Limin, bought shares before their funds bought into them, selling them later at a profit when the price subsequently rose, a practice known as front running.

Dec 23

When it comes to gifts, women tend to lust for lavish treats like nail manicures, flowers or frocks. Men, on the other hand, invariably have their eyes on a different range of items.

This Fathers Day on Sunday is no different with an overwhelming selection of items available ranging from hardcore electronics to sporting equipment and even miniature car collectibles, sure to leave dads grinning from ear to ear.

For starters, Cybermart at Huangpi Road S. has a massive array of electronic goods on offer under one roof, including laptops, gleaming LCD TVs and large-screen projectors.

A three-story electronics haven, Cybermart has everything from simple earphones to swanky global positioning system (GPS) gadgets available in two forms - national tracking or international tracking.

There are also usual items such as DVD players, Web cameras, speakers and MP3 players as well as the fun stuff such as PlayStation Portable (PSP), Nintendo DS Lite and Wii.

Wander through the labyrinth of stalls and you will find cool knick-knacks such as a “handwriting mouse” that requires you to use a stylus to write a Chinese character on the mouse, after which the Chinese words appears on your computer screen.

Another ideal location for an electronics overload is Xujiahui where the shopping begins right at the Metro station. Rows of display counters in the station sell memory sticks, English-Chinese dictionaries and even notebook computers.

Pacific Digital Plaza by Exit 10 is another shopping paradise for electronic geeks. Be prepared to be confronted by an overwhelming array of laptops and computers the moment you enter.

Also in Xujiahui is Buynow, a department store offering a vast range of electronic gear. Located in Metro City, it has the most orderly layout of the three electronic malls.

Well-known brands such as Fuji Xerox and Apple, for example, are each situated in one of the many stalls that line the circumference of Buynow on each level. In the middle of each floor are display counters selling items from a mixture of lesser-known brands.

There are four levels in Buynow which similarly sell the same range of gadgets as Cybermart and Pacific Digital Plaza.

Just outside Buynow on its highest floor is the Metro Hi-Fi Center where shops such as Bang and Olufsen, Bose and Wharfedale sell elaborate sound systems.

Further up on the same floor is Communication World which sells a wide selection of mobile phones, walkie-talkies and landline phones.

If dad is more into sports then the wares at Sports City at Zhongshan Park might be of more interest to him.

Sports City has one floor featuring major brands such as Nike, Adidas, Spalding and Puma. It sells tennis rackets from Wilson, badminton rackets from Yonex as well as table tennis equipment.

For the outdoors dad Sports City also sells windbreakers, backpacks, tracking shoes and sleeping bags. There are also shops just beside Balcony 5 of Shanghai Indoor Stadium for the adventure-loving dad.

For dads who like collectibles, the Mod Toy shop sells models of heavy-duty construction vehicles such as mining trucks, wheel loaders and even a hydraulic excavator.

A neighboring shop called My Car on the other hand sells models of sleek cars such as Mini Coopers and Ferraris and Vespa motorcycles.

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