Shanghai Cracks Down on Dual Residency With New Rules

Shanghai has become the first city in mainland China to crack down on residents who hold permanent residency, or a “Green Card,” in another country.

From May 1, the city will revoke the household registration, or “hukou,” of anyone known to hold permanent residency overseas.

A hukou is essential for access to fundamental social services, including education and healthcare, and is usually linked to a person’s place of birth.

Transfers of one’s hukou to another place are theoretically possible, but highly sought-after cities like Beijing and Shanghai have in place labyrinthine and expensive bureaucratic barriers, as well as population caps and a quota system for migrants, which make them very hard to regain.

A notice posted to the Shanghai city police department’s official website called on any residents “settling abroad or acquiring other nationalities,” must report to police, who will revoke their hukou.

China initially made these requirements nationwide in 2003, but they were rarely implemented. Now, Shanghai residents who acquire permanent residency in another country, but do not report to police, will have their hukou revoked forcibly from May 1, the notice said.

A Shanghai resident surnamed Zhao, who also holds permanent residency in Australia, said the authorities apparently want to stop people from enjoying the benefits of residency in two different countries.

“It seems that in the future, they won’t use your nationality to determine [your residency rights],” Zhao said. “There are large numbers of people who have green cards in the United States and Australia, who don’t have citizenship in those countries.”

“Now, this section of the Chinese population are having to make a fast choice,” she said. “They don’t want us to enjoy the benefits of residency in two countries, but China always allowed this to happen before … It’s totally unreasonable.”

Beijing-based rights lawyer Mo Shaoping said the move may also be in breach of the Nationality Law of the People’s Republic of China.

“Actually, there are calls now to amend the Nationality Law, so as to prevent people holding dual nationality,” Mo said.

He said anyone who believes the Shanghai authorities are breaking relevant legislation with the new requirement has the right to request an interpretation of the rules from the National People’s Congress (NPC), China’s parliament.

“[The NPC] would then carry out an investigation into the legality of this measure,” Mo said.

Repeated calls to the Shanghai municipal police department rang unanswered during office hours on Friday.


Nearly half of China’s wealthiest families are planning to emigrate or are in the process of emigrating, according to a recent survey of the wealthiest private individuals by the Hurun report.

And a total of 44.5 percent said they were either in the process of emigrating, or were planning to do so in 2017.

While the majority gave better educational opportunities and a cheaper cost of living as their main motivation for leaving China, nearly one-third said they were mainly emigrating in order “to better effect the transfer of family wealth.”

The United States is still the top destination for investment emigration and property purchasing, Hurun said in a statement issued with the report, with Los Angeles remains the most popular city in North America among Chinese high net-worth individuals with average wealth of 20 million yuan (U.S. $3.17 million).

“Education and living environment continue to be the main reasons for emigrating overseas,” it said, accounting for 76 percent and 64 percent, respectively.

More recently, the ruling Chinese Communist Party’s removal of term limits from the posts of president and vice president, allowing incumbent Xi Jinping to rule indefinitely, have provoked a surge in the number of people wanting to leave the country.

Overseas-linked realtors and immigration advisers reported a sudden boost in interest after the move was announced, while search engine Baidu reported a huge surge in queries relating to emigration recorded soon afterwards.

Baidu said queries relating to emigration and visas for other countries had risen tenfold in the wake of the announcement.

Reported by Qiao Long for RFA’s Mandarin Service. Translated and edited by Luisetta Mudie.

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Responding to Trump’s Tariffs, China Shows ‘Cautious Anger’

But the escalating tensions, and the prospect of further action by China, have nevertheless raised concerns.

“We do seem to be entering a trade war,” said Eswar Prasad, a senior professor of trade policy at Cornell University. “The U.S. has unsheathed its sword after an extended period of saber rattling, and the Chinese are now unsheathing their weapons.”

“I hope this will not spiral into a very broad set of sanctions on both sides,” he said, “but I think, given Mr. Trump’s instincts and his very keen desire to deliver a political win whatever the political fallout might be, I don’t think it can be tamped down now.”

Stock markets in Asia slid on news of the escalating trade confrontation. By the close of trade on Friday, benchmark stock indexes in Hong Kong and Shanghai had fallen 2.5 percent and 3.4 percent respectively, tracking an overnight drop in Wall Street.

The American restrictions announced on Thursday would include tariffs of 25 percent on a list of specific goods, a proposal that is set to be made in the coming days, followed by a 30-day public consultation. During that time, the administration may hold more talks with the Chinese government, and lobbyists will wage an energetic fight to have their employers’ products removed from the list.

The loss to China from the planned tariffs would amount to no more than 0.1 percent of its economic output, according to Mark Williams, chief Asia economist at Capital Economics. JPMorgan said the potentially affected exports from China would account for 2.2 percent of the country’s total exports, which totaled about $2.3 trillion in 2017.


Wine from the United States next to Chinese wine at a supermarket in Beijing on Friday. China announced tariffs on wine and other American products.

Mark Schiefelbein/Associated Press

“The upshot is that today’s tariffs amount to no more than a slap on the wrist for China,” Mr. Williams wrote in a note.

China would charge a 15 percent tariff on the American-produced products listed in Friday’s announcement.

Another round of tariffs could be imposed on a second group of American-made goods after China evaluates the impact of the American trade measures against China. That group would be charged 25 percent tariffs. It said businesses and other parties had until March 31 to submit views about the retaliatory tariffs, meaning they could take effect only after that date.

But there are many ways that China, America’s biggest foreign creditor and its third-largest export market, could intensify its response. In particular, it could add aircraft and soybeans — both enormous American industries for which China is a critical market — to its list of restricted items. The United States exports $12.4 billion worth of soybeans to China, and analysts say that Boeing, which competes against Airbus of Europe to sell jetliners to Chinese carriers, is another obvious target.

“China does not want to fight a trade war but is absolutely not afraid of a trade war,” a Commerce Ministry representative said in a statement. “We are confident and capable of meeting any challenge and hope that the United States will pause on the brink of a precipice, make careful decisions and avoid dragging bilateral trade relations to a dangerous place.”

For now, the proposed Chinese penalties appear to be a carefully calibrated response to the American steel and aluminum tariffs, which took effect on Friday. Beijing’s restrictions would affect $2.97 billion worth of American steel, aluminum and pork. That is roughly equivalent to the $2.79 billion worth of steel and aluminum that China exported to the United States last year, according to Commerce Department data.

The goods that Beijing plans to penalize represents about 2 percent of the total size of American exports to China, according to Chad Bown, a senior fellow at the Peterson Institute for International Economics.

“It’s not devastating economically by any stretch, but it’s certainly going to hurt those interests in the United States that are trying to export,” Mr. Bown said. He pointed out that the retaliation by China sent “a negative signal, that they are not seeking to de-escalate things.”

China also picked its targets carefully by choosing goods that had political resonance, akin to what the European Union did this month by targeting bourbon, bluejeans and motorcycles, products made in states with Republican politicians or that supported Mr. Trump in his 2016 election victory. In China’s case, pork comes from Nebraska and the Midwest, states that backed Mr. Trump.

“I would say that China’s proposal is quite restrained,” said Song Guoyou, deputy director of the American studies center at Fudan University in Shanghai. Mr. Song characterized China’s response as “cautious anger.”

That may not last for long, as the trade dispute between Washington and Beijing widens.

In February, China opened an anti-dumping and anti-subsidy investigation into sorghum imports from the United States, less than two weeks after the United States said it was imposing tariffs on solar panels and washing machines that were aimed at curbing cheap imports from China and South Korea.

“China is still being moderate and is appropriately counterattacking,” said Li Qiang, chief consultant at Shanghai JC Intelligence Company, an agriculture consulting firm. “Both sides appear to be sounding each other out.”

Continue reading the main story

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COLUMN-Why are Shanghai aluminium stocks at record highs? Andy Home

(The opinions expressed here are those of the author, a columnist for Reuters)

* Shanghai aluminium price and stocks:

By Andy Home

LONDON, March 23 (Reuters) – Stocks of aluminium registered with the Shanghai Futures Exchange (ShFE) rose another 6,102 tonnes this week, extending a build that has been running uninterrupted since June last year.

At a current 940,318 tonnes ShFE inventory is at unprecedented levels. The previous high was 504,974 tonnes in March 2013.

The timing of this accelerated accumulation of metal in exchange warehouses is particularly incongruous.

The “winter heating season” with its associated curtailments of aluminium production is only now drawing to a close.

If China’s production has fallen, and all the available evidence suggests it has, how come so much aluminium is showing up in the ShFE’s warehouse network?

Graphic on Shanghai Futures Exchange prices and stocks:


Tracking China’s production of aluminium is a statistically tortuous exercise but there seems little doubt that national run-rates have dipped over the “winter heating season”, which started in November 2017.

The National Bureau of Statistics pegs primary metal production at 5.33 million tonnes over the first two months of this year. That represented a year-on-year decline of 1.8 percent.

February figures from China’s Nonferrous Metals Industry Association (CNIA), released via the International Aluminium Institute, are still pending but January’s output was down 2.2 percent.

Specialist research house AZ China, meanwhile, estimates production over the first two months of this year fell by 3.7 percent to 5.69 million tonnes.

However, it’s increasingly clear that the reality of these winter production cuts hasn’t lived up to the hype.

A key development was the permission granted Hongqiao Group to count the 2.67 million tonnes of unauthorised capacity closed in July last year towards its winter curtailment requirements.

It also seems that producers outside of the regions impacted by the winter cuts lifted output, while new capacity has still been coming on stream.

With all those caveats, nevertheless, it seems indisputable that production has been running at below year-earlier levels.

So how come Shanghai stocks have still increased by 274,000 tonnes since the mid-November start of the curtailments?


A missing part of the aluminium picture in China is the impact of the pollution curtailments on the downstream processing section of the supply chain.

The impact on upstream operations, both alumina and primary producers, has grabbed the headlines.

But the pollution controls affected all industrial plants, including those transforming raw metal into semi-manufactured products.

It would be logical that disruption to this processing trade would have generated surplus metal units, although exactly how much is very difficult to say.

Two other factors may have combined to drive both new surplus and older stocks into the statistical light of exchange warehousing.

The net impact of the winter cuts may have disappointed aluminium bulls on the London Metal Exchange (LME) but the same holds true of speculators on the Shanghai Futures Exchange.

The ShFE price, basis the most traded contract, hit a five-year high of 17,165 yuan per tonne in September, accompanied by surging volumes and open interest, hallmarks of China’s speculative masses on the move.

That futures price spike, according to AZ China’s Paul Adkins, opened up a gap with physical prices in the domestic market, incentivising the movement of stocks to exchange warehouses.

The heightened volatility of ShFE prices last year, as the market tried to price in first the closure of “illegal” capacity and the winter curtailment, may also have caused a collective flight to the safety of exchange storage.

This process has likely been accelerated by a continuing clampdown on credit in parts of the Chinese economy, particularly the shadow financial sector.

The combination of push from higher risks financing inventory and pull from physical-futures arbitrage has meant a shift in where inventory is stored.

The massive build in exchange stocks, in other words, may seem a reflection of current supply-demand dynamics but may rather reflect previously “hidden” inventory moving from the statistical opacity of off-exchange storage to on-exchange storage.

It’s worth remembering that a very similar mix of fundamental, financial and credit drivers caused LME aluminium stocks to balloon in the aftermath of the Global Financial Crisis.


How much further will ShFE stocks build?

The answer must lie in China’s internal aluminium market dynamics.

These are currently highly fluid.

There is speculation that Beijing’s war on smog may lead to more extensive curtailments of heavy industry, including aluminium smelters, in the months ahead.

Beijing is also pressing ahead with its “old for new” capacity policy as a way of braking growth in the aluminium smelter sector.

And then there are the U.S. tariffs on imports of aluminium which have just kicked in, even if the immediate consequences for China look marginal.

However, policy in both China and the United States will play second fiddle to price.

The Shanghai aluminium price has collapsed from those September peaks and is currently trading just below 14,000 yuan per tonne.

New smelter projects are consequently being delayed and AZ China’s estimate is that “only” around 775,000 tonnes of new capacity has entered the market since the beginning of 2017.

“We have adjusted our 2018 production forecast to 37.6 million tonnes, an increase of 2.4 percent over 2017, but a reduction of 3 percent compared to our previous forecast,” Adkins told Reuters Global Metals Forum on Thursday.

By the standards of China’s giant aluminium sector, that’s a low growth rate and one that may well be exceeded by demand growth this year, according to Adkins.

The outlook is at the very least for a much reduced domestic market surplus but as the aluminium market has found out to its cost over the last year, there are too many moving parts in the Chinese aluminium equation to instil much confidence in predicting the future.

In the interim Shanghai stocks are still rising and as long as they do, the local price is going to remain under pressure.

And, as sentiment and arbitrage increasingly link the Shanghai and London markets, that’s probably not good news for the LME price either.

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Shanghai stocks drop 3.39pc on US-China trade tension

SHANGHAI: Chinese share markets slumped on Friday as tit-for-tat threats between the United States and China raised fears of a damaging trade war between the world’s two biggest economies.

The benchmark Shanghai Composite Index closed 3.39 percent lower, or 110.72 points, at 3,152.76.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, fell 4.49 percent, or 82.99 points, to 1,766.61.


Copyright AFP (Agence France-Press), 2018



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Pork and agriculture shares soar in China on news of US trade barriers

Shanghai — Chinese pork and agriculture shares escaped the market downdraft from US-China trade tensions on Friday, rising sharply on anticipation that potential new barriers on US imports could fatten up the sales of domestic producers.

China, the world’s largest pork producer, consumer and importer, on Friday released a hit list of US goods that could face duties of up to 25%, notably pork, fresh fruit and wine.

The threatened measures are in retaliation for US President Donald Trump’s signing of a new trade order that could impose duties as high as 25% on Chinese goods.

Pig breeder Hunan New Wellful surged by the maximum permitted daily amount of 10% to close at 5.81 yuan in Shanghai.

On China’s second board in the city of Shenzhen, Guangdong Wens Foodstuff Group, one of the country’s largest pig breeders, advanced 3.66% to 21.54 yuan.

Such shares defied a global market rout caused by the escalating tensions and which dragged Shanghai’s main index 3.39% lower at the close, while Shenzhen’s index fell 4.49%. “China’s potential retaliatory moves mainly focus on farm products, providing a good chance for domestic producers to boost sales,” said Zhang Gang, a strategist with Central China Securities.

China’s commerce ministry warned it could impose tariffs on US pork, fresh fruit, nuts, ginseng, wine and aluminium scrap if a negotiated agreement could not be reached.

In Shanghai, Gansu Dunhuang Seed, a seed, cotton and food processing company, jumped 10% to 7.67 yuan, while Wei Long Grape Wine rose 1.38% to 16.17 yuan and Xinjiang Korla Pear gained 4.23% to 15.76 yuan.

But China’s Hong Kong-listed WH Group, the world’s largest pork producer and which acquired major US pork and hog producer Smithfield Foods five years ago, fell 5.17% to HK$8.98.

Zhang said the market turmoil may abate as the tit-for-tat US and Chinese moves remain tepid, aimed more at testing each other’s mettle, and could result in a negotiated settlement.

Markets will be watching to see whether the fracas escalates to include bigger-ticket items like massive US sales of aircraft and soybeans to China, Zhang said.

“If China brings out soybeans or the Boeing deal, the trade war will escalate,” Zhang said.


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Bystronic glass at China Glass 2018 in Shanghai

Hall E1, Stand 330

Neuhausen-Hamberg (Germany), March 22nd, 2018.

At this year’s China Glass exhibition from 19th – 22nd April 2018 in Shanghai Bystronic glass will present again future-oriented technologies for trend-setting and efficient processing of architectural, automotive and thin glass.


B’CHAMP (Automotive and thin glass processing)

Profitability in automotive glass pre-processing or thin glass production will be redefined.

As highlight of the exhibits Bystronic glass will present the B’CHAMP WS – a variant of the new machine generation.

The optimized functions of this new B’CHAMP generation enables automotive glass or thin glass producers to enhance the efficiency in their daily production. B’CHAMP installations enable quick and precise cutting, breaking, grinding and drilling of automotive glass or thin glass down to 0.4 mm glass thickness.


By optimizing the key components for the glass processing in a linear manner, space is saved through ingenuity. This leads to a reduced footprint of up to 50 %, a transparent and continuous material flow, a simple installation, improved maintenance possibilities and specified plant configurations for individual glass products, e.g. quarter lites, side lites and windshields.

The improved accessibility to the key components and the innovative software-based support dramatically improves changeover times.

B'CHAMP WS Detail Cutting Breaking

For glass producers this means shorter changeover times when changing the model, simplified maintenance and highest possible flexibility in connection with the automated single piece production. The reaction-fast software leads to a minimizing of downtimes, while a camera surveillance system will be used for an automatic positioning aid.

The new B’CHAMP machine generation is available in three variants: B’CHAMP WS for the manufacturing of automotive glass windshields, B’CHAMP SL for the production of side lites and B’CHAMP QL for the manufacturing of quarter lites.

Due to the modular design of the B’CHAMP, it enables to combine several cells together or add additional components that are individually adapted to the customers’ specific requirements – from glass loading, to primitive cutting, through to finished pre-processed automotive or thin glass – all in one system.


B’ADVANCE (Insulating glass manufacturing)

The new I.G. manufacturing line B’ADVANCE will be presented during an Open House Event at the premises of Bystronic Glass Machinery (Shanghai) Co. Ltd. in Jiading District / Shanghai. By joining a shuttle bus service interested customers and prospects are invited to visit the live demonstrations of the B’ADVANCE under production conditions.


The B’ADVANCE is a standardized solution for high quality manufacturing of rectangular or shaped, gas filled I.G. units with low-E glass on one line. The fully equipped I.G. line is engineered and manufactured in Germany.

It offers numerous components as standard – like e.g. manufacturing of 3-sided stepped I.G. units, air cushion conveyors instead of roller conveyors or a server based control system including remote support. With the B’ADVANCE the I.G. producers will be able to enhance their flexibility in I.G. manufacturing and to increase their productivity on a next higher level.


B’EASY (Glass handling)

The best-selling Easy-Lift has been inspiring customers from the glass processing industry with its rigid guidance and its own low dead weight since 1998. In recent years, the handling equipment has also gradually established itself with large window manufacturers as it is extremely flexible in terms of frame design, easily meeting their needs.


Service – on hand, wherever our customers are located

Right from the very first minute, Bystronic glass supports its customers during the planning stage. The customer service department is then on-hand all over the world for the delivery of spare parts and on-site support. Maintenance contracts and individual training sessions round off the range of services on offer.

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China money rates fall on ample liquidity, market unfazed by move

    SHANGHAI, March 23 (Reuters) - China's primary money rates
fell this week on ample liquidity in the banking system,
shrugging off a slight increase in short-term rates by the
central bank following the Federal Reserve's hike in U.S. ones.
    The People's Bank of China's (PBOC) move was a reminder
Beijing is keeping an eye on global market trends even as it
cracks down on financial risks at home.
    The PBOC increased the rate on seven-day reverse repurchase
agreements by 5 basis points (bps) to 2.55 percent. 
    On Friday, fears of a trade war between the world's two
largest economies jolted China's equity, bond and commodity
    In the money market, the volume-weighted average rate of the
benchmark seven-day repo, considered the best
indicator of general liquidity in China, was 2.7100 percent on
Friday afternoon, around 10 basis points lower than the previous
week's closing average rate of 2.8071 percent. 
    Traders said the PBOC's rate hike move was widely expected,
and market sentiment was not affected.
    Cash conditions were loose this week, prompting the central
bank to drain a net 320 billion yuan ($50.58 billion) in its
open market operations.
    The PBOC, in a statement, attributed the high liquidity to
rising fiscal expenditure at the end of the month to absorb
maturing reverse repos.
    Traditionally, the Ministry of Finance's distribution of
funds to firms and individuals who benefit from government
programmes is larger in the last month of each quarter, lifting
banking system deposits. 
    Some market participants said that based on current
conditions, they were not too worried about liquidity at the end
of the month when financial institutions will face a quarterly
health check led by the central bank.
    The Shanghai Interbank Offered Rate (SHIBOR) for the
seven-day tenor was at 2.8464 percent on Friday, around 2 basis
points lower than the week-earlier fix at 2.8650 percent. 
Key money rates at a glance:
                  Volume-wei  Previous    Change (bps)               Volume
                  ghted       day (%)                                
                  rate (%)                                           
 Interbank repo market
 Overnight        2.5364      2.5134      +2.30                      0.00
 Seven-day        2.7100      2.7603      -5.03                      0.00
 14-day           4.6151      4.7751      -16.00                     0.00
 Shanghai stock exchange repo market
 Overnight        3.2650      2.8650      +40.00                     327,638.0
 Seven-day<CN7DR  4.3950      3.6700      +72.50                     43,843.60
 14-day           4.2000      4.5200      -32.00                     4,472.90
 PBOC Guidance Rates
 Overnight        2.5600      2.5500      +1.00                      
 Seven-day        2.9000      3.0000      -10.00                     
 14-day           4.8000      5.0000      -20.00                     
 Overnight        2.5450      2.5490      -0.40                      
 Seven-day        2.8464      2.8538      -0.74                      
 Three-month      4.6489      4.6621      -1.32                      
 Instrument            RIC         Rate          Spread vs 1 yr
                                                 official deposit
 2 yr IRS based on 1   CNABAD2YF=        0.0000              -1.5
 year benchmark                                  
 5 yr 7-day repo swap  CNYQB7R5Y=        3.8000               n/a
*This spread can be seen as a proxy for forward-looking market
expectations of an interest rate cut or rise

China FX and money market guide: 
 China debt market guide:
 SHIBOR rates:
 Reports on central bank open market operations:
 New Chinese debt issues:
 Prices for central bank bills, treasury bonds and sovereign
 Overview of China financial market data:

($1 = 6.3272 Chinese yuan)

 (Reporting by Winni Zhou and John Ruwitch; Editing by Richard

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Hong Kong, Shanghai: Stocks dive on US-China trade war fears, Stocks

Fri, Mar 23, 2018 – 4:27 PM

[SHANGHAI] Hong Kong and Chinese share markets slumped on Friday as tit-for-tat threats between the United States and China raised fears of a damaging trade war between the world’s two biggest economies.

The Hang Seng Index fell 2.45 per cent, or 761.76 points, to end at 30,309.29.

The benchmark Shanghai Composite Index closed 3.39 per cent lower, or 110.72 points, at 3,152.76 on turnover of 293.4 billion yuan (S$61.1 billion). It lost 3.58 per cent over the week.

The Shenzhen Composite Index, which tracks stocks on China’s second exchange, fell 4.49 per cent, or 82.99 points, to 1,766.61 on turnover of 341.9 billion yuan. It lost 5.18 per cent in the week.


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