China’s Non-Existent Property Bubble

Some experts have reported as much as 20% increases in property prices in major Chinese cities like Beijing, Shenzhen, Shanghai and Guangzhou and many who believe those reports are calling it a potentially disastrous real estate bubble. U.S. investors have taken note and talking heads have been seen arguing about it in the news, but other analysts say that even if the rate increases are true, the Chinese government has the power to manage the threat caused by a bubble. Since the Chinese government still enforces residency restrictions in its cities it means it could easily control prices by letting more people in, or keeping people out. For more on this continue reading the following article from TheStreet.

The state of the Chinese real estate market recently caught the attention from U.S. investors, as highlighted by the recent CBS "60 Minutes" report.

And the debate can get pretty emotional quickly, with charges of treason thrown in no less, as shown in this disastrous talking-past-each-other "debate" between two professors on CNBC.  

Read more...  http://www.nuwireinvestor.com/articles/chinas-non-existent-property-bubble-60587.aspx

China’s Non-Existent Property Bubble

Some experts have reported as much as 20% increases in property prices in major Chinese cities like Beijing, Shenzhen, Shanghai and Guangzhou and many who believe those reports are calling it a potentially disastrous real estate bubble. U.S. investors have taken note and talking heads have been seen arguing about it in the news, but other analysts say that even if the rate increases are true, the Chinese government has the power to manage the threat caused by a bubble. Since the Chinese government still enforces residency restrictions in its cities it means it could easily control prices by letting more people in, or keeping people out. For more on this continue reading the following article from TheStreet.

The state of the Chinese real estate market recently caught the attention from U.S. investors, as highlighted by the recent CBS "60 Minutes" report.

And the debate can get pretty emotional quickly, with charges of treason thrown in no less, as shown in this disastrous talking-past-each-other "debate" between two professors on CNBC.  

Read more...  http://www.nuwireinvestor.com/articles/chinas-non-existent-property-bubble-60587.aspx

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/26/bloomberg_articlesLTPGNJ0YHQ0X.DTL#ixzz1bzpDPC4m




Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/26/bloomberg_articlesLTPGNJ0YHQ0X.DTL#ixzz1bzpDPC4m




Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/26/bloomberg_articlesLTPGNJ0YHQ0X.DTL#ixzz1bzpDPC4m




Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/26/bloomberg_articlesLTPGNJ0YHQ0X.DTL#ixzz1bzpDPC4m




Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/26/bloomberg_articlesLTPGNJ0YHQ0X.DTL#ixzz1bzpDPC4m




Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/10/26/bloomberg_articlesLTPGNJ0YHQ0X.DTL#ixzz1bzpDPC4m




Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

Oct. 27 (Bloomberg) -- French President Nicolas Sarkozy said he plans to call Chinese President Hu Jintao today to discuss China contributing to Europe's efforts to resolve the region's debt crisis.

The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.

Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China's biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.

"China will need time to evaluate this plan very carefully," said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. "What worries China is that there is so much disagreement among European policy makers. It doesn't want to be seen spending money on a plan that even Europeans don't want to support."

Sarkozy and Hu's conversation comes a day before a planned visit to Beijing by Klaus Regling, chief executive officer of the EFSF, to court investors. China has the world's largest foreign currency reserves at more than $3.2 trillion.


Sovereign Bonds


The EFSF, established last year to sell bonds to finance loans for distressed euro nations, has since also gained the authority to buy sovereign bonds on the secondary and primary markets, offer credit lines to governments and recapitalize banks as the Greece-triggered debt troubles have spread. The EFSF said Regling's visit to China this week is linked to the fund's original debt-issuance role.

"It is a normal round of discussion with important buyers of EFSF bonds," Christof Roche, spokesman for the Luxembourg- based facility, said by e-mail yesterday. He declined to comment further when contacted by Bloomberg News by telephone. Agence France-Presse reported that Regling will travel on to Tokyo, citing a European Union official in Asia.

China may be willing to respond to a European request to help them fund a package to solve the euro region's debt crisis, AFP said, citing unidentified government officials familiar with the situation.


Chinese Reserves


A press official at the People's Bank of China said he wasn't aware of the issue and asked for faxed questions, which weren't immediately answered. The Ministry of Foreign Affairs and the State Administration of Foreign Exchange, which manages China's foreign-exchange reserves, didn't immediately respond to faxed questions.

Calls to the press office of China Investment Corp., the nation's $300 billion sovereign wealth fund, weren't immediately answered.

Europe is facing international calls to end a debt crisis that President Barack Obama has said "is scaring the world" and U.S. Treasury Secretary Timothy F. Geithner has described as a "catastrophic risk." With a Group of 20 meeting looming on Nov. 3-4, euro-area government heads gathered in Brussels yesterday for the 14th time to tackle troubles that began in Greece two years ago, then engulfed Ireland and Portugal and now threaten Spain and Italy.

Premier Wen said last month that while China was willing to help, that developed nations also needed to put "their own houses in order."


European Responsibility


In Canberra today, Australian Treasurer Wayne Swan echoed that sentiment. "We think it's appropriate that the international community look at what resources the International Monetary Fund has available to it," Swan told reporters. "But in the first instance, any bailout fund in Europe is a responsibility of the Europeans."

Bank of Korea Governor Kim Choong Soo said today the nation hasn't been approached to and hasn't considered joining the effort. Indonesian Vice Finance Minister Mahendra Siregar said the nation hasn't been asked to aid in Europe's effort.

The question of leveraging the AAA rated EFSF has arisen because of the political hurdles in countries such as Germany, the biggest European economy, to increasing the national guarantees that back the fund.


Aid Package


As part of its original role, the EFSF is providing 17.7 billion euros under Ireland's aid package of 67.5 billion euros and 26 billion euros under Portugal's rescue of 78 billion euros. So far, the EFSF has sold two five-year bonds and one 10-year security, all in the first half of this year. The Japanese government bought more than a fifth of the inaugural issue in January.

On Oct. 13, the EFSF announced changes to its bond-sale program for the two countries in the second half of 2011. Instead of selling four "benchmark" bonds in the period, as outlined in mid-May, the fund will sell one security for Ireland valued at 3 billion euros and delay issues planned for Portugal until "early 2012."

The EFSF may have to finance more than 70 billion euros of a planned second aid package for Greece. The initial Greek rescue of 110 billion euros in May 2010 was composed of loans directly from euro-area governments and the IMF.

by Jonathan Stearns and Helene Fouquet Bloomberg News Oct 27, 2011




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Sarkozy Turns to Hu for China Aid as Europe Expands Rescue Fund

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

China investment arm buys bank shares to support market | Sympatico.ca News

The announcement by Central Huijin Investment Ltd., an arm of the sovereign wealth fund China Investment Corp., came after the benchmark Shanghai Composite Index closed at its lowest level in more than two years, losing 0.6 per cent to 2,344.79.

Share prices have languished despite China's still robust growth, weighed down by worries over Europe and tightening liquidity.

The market dropped Monday following reports that housing prices fell in September, prompting a sell-off of property stocks. Poly Real Estate Group lost 3.5 per cent and China Vanke, the industry leader, shed 3.3 per cent.

Central Huijin is the major shareholder in China's big state-run banks. The company said in a brief announcement on its website that it bought shares in the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank and that it would continue its market-support operations. It gave no details about the amount of shares purchased.

The central bank has ordered China's banks to hold record levels of reserves as it has sought to sponge excess liquidity out of the economy and counter inflation.

Monday's close was the Shanghai benchmark's lowest since April 2009. The index has dropped more than 16 per cent so far this year.

The banks' shares showed modest gains. ICBC rose 0.3 per cent; Agricultural Bank was up 0.4 per cent; Bank of China rose 0.7 per cent and China Construction Bank added 0.2 per cent.

by Associated Press Oct 10, 2011


China investment arm buys bank shares to support market | Sympatico.ca News

25 most powerful businesspeople in Asia - The changing face of Asian business

Fortune's first global 500 list of the world's largest corporations, published in 1995, was dominated by American and Japanese companies, and if we had tried back then to produce a list of Asia's top business executives, it surely would have featured the CEOs of concerns such as Sony, Mitsubishi, and Toyota.

Our inaugural ranking of Asia's most powerful people in business reflects a major power shift in the region, from Japan to China, India, and beyond. Yes, Toyota CEO Akio Toyoda sits atop our list, but only two executives in Japan -- entrepreneur Masayoshi Son of Softbank and Takanobu Ito of Honda -- make the cut. To size up Asia's business leaders, we looked at the revenues, profits, and growth of the region's most dynamic companies, and evaluated the roles their top executives played in the corporations' success. We also placed a strong emphasis on globalization. And so Ratan Tata, who turned his family's Indian iron and steel concern into a multinational company with employees in 80 countries, earns the No. 2 spot on our list. (For more on his auto group, see "Tata: Building an auto empire in India.")

China's private-company leaders, including Huawei's Ren Zhengfei (No. 5) and Foxconn's Terry Gou (No. 6), have long been internationalists, but increasingly the leaders of state-owned enterprises are pushing their companies out into the world -- and in many cases the world is coming to them, seeking investments or business alliances.

Asian business is far from a meritocracy. Cronyism and cozy relationships with government are rampant; Tata, Toyoda, and Samsung's Kun-Hee Lee are descendants of their companies' founders; and executive suites remain overwhelmingly male. But change may be coming here too. Chanda Kochhar, No. 17 on our list, rose from management trainee to CEO of India's ICICI -- making her the first woman to run India's largest private bank. (continued...)

by Stephanie N. Mehta Fortune April 19, 2011

25 most powerful businesspeople in Asia - The changing face of Asian business

25 most powerful businesspeople in Asia - The changing face of Asian business

Fortune's first global 500 list of the world's largest corporations, published in 1995, was dominated by American and Japanese companies, and if we had tried back then to produce a list of Asia's top business executives, it surely would have featured the CEOs of concerns such as Sony, Mitsubishi, and Toyota.

Our inaugural ranking of Asia's most powerful people in business reflects a major power shift in the region, from Japan to China, India, and beyond. Yes, Toyota CEO Akio Toyoda sits atop our list, but only two executives in Japan -- entrepreneur Masayoshi Son of Softbank and Takanobu Ito of Honda -- make the cut. To size up Asia's business leaders, we looked at the revenues, profits, and growth of the region's most dynamic companies, and evaluated the roles their top executives played in the corporations' success. We also placed a strong emphasis on globalization. And so Ratan Tata, who turned his family's Indian iron and steel concern into a multinational company with employees in 80 countries, earns the No. 2 spot on our list. (For more on his auto group, see "Tata: Building an auto empire in India.")

China's private-company leaders, including Huawei's Ren Zhengfei (No. 5) and Foxconn's Terry Gou (No. 6), have long been internationalists, but increasingly the leaders of state-owned enterprises are pushing their companies out into the world -- and in many cases the world is coming to them, seeking investments or business alliances.

Asian business is far from a meritocracy. Cronyism and cozy relationships with government are rampant; Tata, Toyoda, and Samsung's Kun-Hee Lee are descendants of their companies' founders; and executive suites remain overwhelmingly male. But change may be coming here too. Chanda Kochhar, No. 17 on our list, rose from management trainee to CEO of India's ICICI -- making her the first woman to run India's largest private bank. (continued...)

by Stephanie N. Mehta Fortune April 19, 2011

25 most powerful businesspeople in Asia - The changing face of Asian business

25 most powerful businesspeople in Asia - The changing face of Asian business

Fortune's first global 500 list of the world's largest corporations, published in 1995, was dominated by American and Japanese companies, and if we had tried back then to produce a list of Asia's top business executives, it surely would have featured the CEOs of concerns such as Sony, Mitsubishi, and Toyota.

Our inaugural ranking of Asia's most powerful people in business reflects a major power shift in the region, from Japan to China, India, and beyond. Yes, Toyota CEO Akio Toyoda sits atop our list, but only two executives in Japan -- entrepreneur Masayoshi Son of Softbank and Takanobu Ito of Honda -- make the cut. To size up Asia's business leaders, we looked at the revenues, profits, and growth of the region's most dynamic companies, and evaluated the roles their top executives played in the corporations' success. We also placed a strong emphasis on globalization. And so Ratan Tata, who turned his family's Indian iron and steel concern into a multinational company with employees in 80 countries, earns the No. 2 spot on our list. (For more on his auto group, see "Tata: Building an auto empire in India.")

China's private-company leaders, including Huawei's Ren Zhengfei (No. 5) and Foxconn's Terry Gou (No. 6), have long been internationalists, but increasingly the leaders of state-owned enterprises are pushing their companies out into the world -- and in many cases the world is coming to them, seeking investments or business alliances.

Asian business is far from a meritocracy. Cronyism and cozy relationships with government are rampant; Tata, Toyoda, and Samsung's Kun-Hee Lee are descendants of their companies' founders; and executive suites remain overwhelmingly male. But change may be coming here too. Chanda Kochhar, No. 17 on our list, rose from management trainee to CEO of India's ICICI -- making her the first woman to run India's largest private bank. (continued...)

by Stephanie N. Mehta Fortune April 19, 2011

25 most powerful businesspeople in Asia - The changing face of Asian business

25 most powerful businesspeople in Asia - The changing face of Asian business

Fortune's first global 500 list of the world's largest corporations, published in 1995, was dominated by American and Japanese companies, and if we had tried back then to produce a list of Asia's top business executives, it surely would have featured the CEOs of concerns such as Sony, Mitsubishi, and Toyota.

Our inaugural ranking of Asia's most powerful people in business reflects a major power shift in the region, from Japan to China, India, and beyond. Yes, Toyota CEO Akio Toyoda sits atop our list, but only two executives in Japan -- entrepreneur Masayoshi Son of Softbank and Takanobu Ito of Honda -- make the cut. To size up Asia's business leaders, we looked at the revenues, profits, and growth of the region's most dynamic companies, and evaluated the roles their top executives played in the corporations' success. We also placed a strong emphasis on globalization. And so Ratan Tata, who turned his family's Indian iron and steel concern into a multinational company with employees in 80 countries, earns the No. 2 spot on our list. (For more on his auto group, see "Tata: Building an auto empire in India.")

China's private-company leaders, including Huawei's Ren Zhengfei (No. 5) and Foxconn's Terry Gou (No. 6), have long been internationalists, but increasingly the leaders of state-owned enterprises are pushing their companies out into the world -- and in many cases the world is coming to them, seeking investments or business alliances.

Asian business is far from a meritocracy. Cronyism and cozy relationships with government are rampant; Tata, Toyoda, and Samsung's Kun-Hee Lee are descendants of their companies' founders; and executive suites remain overwhelmingly male. But change may be coming here too. Chanda Kochhar, No. 17 on our list, rose from management trainee to CEO of India's ICICI -- making her the first woman to run India's largest private bank. (continued...)

by Stephanie N. Mehta Fortune April 19, 2011

25 most powerful businesspeople in Asia - The changing face of Asian business