China’s 28tr yuan of wealth management products under mounting stress in second half, analysts say

Wealth management products in China used to be a magical option for investors. They offered high yields and never failed as the banks that sold the products would stand behind them, even if they soured.

Tighter regulations and pressure on banks mean that this is likely to change in the second half, at least for the banks that have bought into products issued by other financial institutions, analysts say.

“Banks usually assume their investments in other banks’ non-principal guaranteed wealth management products (WMPs) are risk-free, based on some informal agreements provided by seller banks. However, disputes will arise if these WMPs fail to achieve expected returns because of recent regulatory and market changes, and the seller banks refuse to acknowledge the informal agreement,” said David Yim, greater China head of debt capital markets at Moody’s Investors Service.

“If, for example, a WMP is going to mature, and suddenly the seller bank says that we didn’t issue this WMP,who would be responsible in such a situation?” Yim asked.

As regulators look to tighten controls around shadow banking, defaults are becoming more likely, while embattled mid-cap banks are less willing to take the loss themselves than they were in the past.

Of course, there is no real reason why they ought to.

“Clearly banks should not be responsible for non-guaranteed WMPs,” said Chen Shujin, chief financial analyst at Huatai Financial.

Nonetheless, an average of 3,700 WMPs were issued each week in the first half of 2016, but only one product issued by a domestic bank reported any form of loss, according to calculations by Fitch.

The ratings agency noted in a report at the end of last year that “this loss ratio appears unusually low”.

Since then default rates have ticked up. In one case earlier this year WMPs sold at a branch of Minsheng Bank were found not to exist.

WMPs issued by Chinese banks have a variety of investors. Approximately half are individuals, a fifth other banks, with the remainder made up of institutional investors and private banks, according to data from the China Banking Regulatory Commission.

The number of banks investing in other banks’ WMPs has increased significantly in recent years. In 2014, banks made up just 3.3 per cent of investors in WMPs issued by Chinese banks.

For investors, the products offer higher rates of return than they could get elsewhere, while the issuing banks gain access to funds. This has become particularly important for banks this year, as liquidity has tightened.

“To some small lenders which simply do not have enough funding to support their activities, WMPs remain an important tool especially when they face quarter-end pressure,” said Marco Yau, senior analyst CEB International Research

“That’s why the WMP yield was sent to 16-month high last month,” he said.

However, because banks tend to keep their WMPs off balance sheet, banking regulators were concerned about the threat they posed to China’s economic system.

“It was a popular practise for banks to issue interbank certificates of deposit and invest in WMPs issued by other banks during 2014 to 2016,” said Yim.

The difference between the very short term duration of the certificates of deposit and the longer term duration of the WMPs made this risky.

“In 2015, over half of the WMP funds were invested in the bond market. Some money managers then used the bonds as collateral to borrow short-term money via the repo market to buy more bonds. By repeating this game, bond markets would be heavily leveraged and lead to excessive risk,” Yau wrote in a recent report.

As a result, a variety of Chinese regulators cracked down on the shadow banking sector, and since the start of this year, WMPs are included on banks’ balance sheets under new regulations.

Following the tightened regulations, the total balance of WMPs issued by Chinese banks decreased to 28.4 trillion yuan (US$4.18 trillion) at the end of May from 29.1 trillion yuan at the end of 2016.

The reduced issuance of WMPs make things more troublesome for issuing banks.

“If things continue to grow at a fast pace you can always refinance to renew the products, as things slow down, then you can’t,” he said.

Nonetheless Yau from CEB International said that authorities would be careful when introducing new regulations on the shadow banking sector.

“We probably won’t see aggressive WMP growth again as in 2015 and 2016, but it doesn’t mean the regulator wants to crack down on the whole thing,” Yau said.

He noted that the pool of investments under management by WMPs is equivalent to 40 per cent of China’s economy.

“It would be a nightmare to the economy if issuers have to unwind the whole thing,” Yau said. “If anything went wrong, the domino effect may turn into a disaster. In this political transition year, I think the regulator

[Source”cnbc”]

Games of Perspective and Kaleidoscopic Patterns at Bonaldo’s New Products

doppler-sideboards-bonaldo-15

Doppler, the collection designed by Giuseppe Viganò and comprising coffee tables and new sideboards, features a kaleidoscope of shapes and bright colors. A charming sequence of rings dazzle those who observe Hulahoop, the original table by Alessandro Busana. Looking in the New Perspective Mirror, designed by Alain Gilles, gives the observer the impression of diving into a new perspective. Last but not least, the Nikos armchair, designed by Sergio Bicego, adds a touch of fresh originality to the most diverse settings thanks to the graphic design on the upholstery which is distinguished by lines that chase each other and cross one another, in a mesmerising rainbow of colours.

The Doppler sideboards supplement the Doppler coffee table collection designed by Giuseppe Viganò for Bonaldo. They propose the same illusion of overlapping surfaces, whereas actually the doors are made up of a single surface: indeed, it is the combination of various brightly coloured graphic patterns that creates this particular optical effect. The asymmetrical opening of the doors is an additional sign of originality. The lacquered wood frame is supported by a solid ash-wood base, painted in grey or walnut-wood. Bonaldo produces the Doppler sideboards in two different sizes: one high and the other low, to furnish both the living room and the bedroom.

The Doppler sideboards supplement the Doppler coffee table collection designed by Giuseppe Viganò for Bonaldo. They propose the same illusion of overlapping surfaces, whereas actually the doors are made up of a single surface: indeed, it is the combination of various brightly coloured graphic patterns that creates this particular optical effect. The asymmetrical opening of the doors is an additional sign of originality. The lacquered wood frame is supported by a solid ash-wood base, painted in grey or walnut-wood. Bonaldo produces the Doppler sideboards in two different sizes: one high and the other low, to furnish both the living room and the bedroom.

Hulahoop is characterized by a minimal table top and a frame comprising metallic rings which, owing to perspective, overlap one another, giving rise to a graphic pattern capable of rendering a dynamic image that changes every time depending on the viewpoint. Hulahoop offers multiple combinations of materials and dimensions. The table top – which is free of sharp edges, simple and clean-cut – is in fact available in various types of marble, wood, ceramic and glass. The decorative base is made of metal painted in a host of different colours or with copper, brass or pickled finish.

The idea of Belgian designer Alain Gilles was to bring the mirror to life, turning it from a cold and empty surface into a dynamic object with a rich personality. As the name suggests, the New Perspective Mirror plays with depth and perspective, giving the illusion of a room beyond the mirror.

The distinguishing feature of this mirror lies in the hand-drawing of lines made directly on its surface, which gives it a multiple personality: it is not just an object whose sole function is to that of a mirror but rather a decorative furnishing element. The New Perspective Mirror is available in 3 different color variants to adapt to various styles and interior décors: combinations of red/green/blue, or monochrome black or copper. Available in two versions, either “large” or “small”; the “small” version is fitted with a brushed anthracite grey oak shelf on which the mirror rests, set in a slot.

 

 

 

[Source:- Interiorzine]

LG to launch India specific products in home appliances

Image result for LG to launch India specific products in home appliancesb

Korean consumer electronics major LG plans to launch India specific products in the home appliances segment to strengthen its leadership position, while looking to enhance exports from the country.

The company is also looking to increase the level of usage of local components in its home appliances.

“The Indian market is among the top and important growing market for us. We will offer new technology products and also products tailored for the Indian consumers,” LG Electronics Vice President, (Head of Home Appliances, Middle East Africa and Asia Sales & Marketing Division) Daniel Shin told reporters here.

Citing examples of India specific products, he said LG has introduced water purifiers, top loaded washing machines with heaters that reduce cycles and also refrigerators that can keep items cool for seven hours during power cuts.

“In the second half of this year and early next year, we will launch premium products in India which have been verified in developed markets,” Shin said, adding new door-in-door refrigerator and washing machines with latest technologies were in the pipeline.

In Korea, LG has already introduced smart appliances, which can interact with users through a chat application on mobile phone and enable to control away from home. While the company did not specify time line for launching such products in India, these could come in the future.

Highlighting the significance of the Indian market, LG Electronics Senior Vice President (Head of Home Appliances, Overseas Sales and Marketing group) James Park said : “The contribution from India in LG’s overall home appliances is among the top…LG has a high market share in India and to maintain that we will continue to invest there.”

LG India is targeting sales of Rs 9,600 crore in 2014, up from Rs 8,000 crore in 2013 from its home appliances.

Last year, the company had a market share of 36 per cent in the Indian home appliances market that is estimated to touch Rs 24,000 crore this year at a growth of 10 per cent from 2013.

Park said apart from catering to the domestic market, the company will also increase exports from India.

“We have been manufacturing in India for the last 15 years and we are going to increase exports to other markets from there,” he said.
Currently, LG exports a range of products to 63 countries from India.

 

 

[Source:- ZEE]

26 Ingenious Products That Will Literally Light Up Your Life

1. A light show you can attach to the wheels of your bike.

A light show you can attach to the wheels of your bike.

amzn.to

The color LED lights are waterproof, can display over 42 themes, last for up to 20 hours (on 3 AA batteries), and can be mounted to the spokes of almost any bike.

Price: $56.99

2. Customizable banner-style lights for people who love to play Scrabble.

Customizable banner-style lights for people who love to play Scrabble.

amzn.to

Each set comes with 10 tile-shaped lights and 60 reusable stickers (so you can change up the wording as frequently as you like).

Price: $21.40

3. A light that displays pixelated artwork whenever you get a notification on your phone.

amzn.to

amzn.to

Sync DOTTI with your smartphone, place it on your desk, and wait for the notifications (for calls, text messages, emails, tweets, etc.) to roll in. Using the accompanying app, you can design your own animations (or icons) to display on the light’s screen. If you want to get ~really crazy~ you can buy four separate devices, stack ‘em up, and control them as one enormous DOTTI.

Price: $69.99

4. A BB-8 (lamp) of your very own!

26 Ingenious Products That Will Literally Light Up Your Life
thinkgeek.com

Just tap his head to turn him on or off.

Price: $49.99

5. Glowing nightlight balls that scared kids can carry right into bed with them.

amzn.to

amzn.to

If you’re *not* a scared kid, the balls and their stand will simply look cool and futuristic sitting on your nightstand.

Price: $34.99

6. A teeny tiny lamp powered by your phone’s flashlight.

A teeny tiny lamp powered by your phone's flashlight.

designboom.com

An on-the-go nightlight.

Price: $9

7. A nightlight that doubles as a valentine.

A nightlight that doubles as a valentine.

etsy.com

Price: $24

8. A cork that turns empty bottles into light sources.

amzn.to

amzn.to

Much less of a fire hazard (and less messy) than sticking a candle in a bottle.

Price: $9.99

9. A lighthouse to guide you to your bed.

A lighthouse to guide you to your bed.

etsy.com

You probably don’t *need* any help finding your way into bed, but it’s still a nice nautical touch.

Price: $75.78

10. A smart light that’s basically an electronic butler.

amzn.to

amzn.to

Once you replace the existing light bulb in the lamp by your front door) with Zmodo, you’ll be able to do SO MANY THINGS. You can set the light to go on and off at certain times, monitor what’s going on outside your door using the built-in camera, turn on a motion detection device, set it up so you get a phone call whenever someone rings the bell (so you can talk to visitors even when you’re not home), and more.

Price: $199.50

11. Colorful lights to build a tower with.

Colorful lights to build a tower with.

fab.com

These Tangeez “physical pixels” change color when you stack them.

Price: $69

12. Miniature moons to “orbit” your bedroom.

firebox.com

amzn.to

Waxing and waning at the flick of a switch.

Price: $21.59 (the lamp) and $7.54 (the nightlight)

13. A very a-peel-ing glowing banana.

A very a-peel-ing glowing banana.

firebox.com

It may not provide you with any potassium, but it’ll help you read a book before bed.

Price: $18.69

14. A cheery lantern and a cheeky light-up wall switch.

amzn.to

amzn.to

Use them as backup light sources (in case of a power outage).

Price: $14 (lantern) and $8.50 (wall switch)

15. A pint-sized luminescent cottage.

A pint-sized luminescent cottage.

etsy.com

They’re available in mint, chartreuse, and pale pink. Choose one or collect a whole village!

Price: $48.50

16. A clamp-on light with bunny ears and a fancy-ass lamp that looks like an actual rabbit.

landofnod.com

What’s your budget when it comes to rabbit-related lighting?

Price: $39.00 (for the clamp lamp) and $398 (for the golden hare)

17. A neon sign with a valid suggestion.

A neon sign with a valid suggestion.

fab.com

Weird’s the way to be.

Price: $194.99

18. A DIY lampshade shaped like a cat or a fox.

etsy.com

etsy.com

They’ll mail you the kit and then you start to fold. The shades can also be used as masks!

Price: $39.22 (the cat) and $39.22 (the fox)

19. A campfire that won’t make your hair smell like smoke.

A campfire that won't make your hair smell like smoke.

landofnod.com

No, you can’t use it to make a s’more… but there’s always the microwave (in a pinch).

Price: $59

20. A lightbulb that changes colors *and* acts as a speaker.

fab.com

fab.com

“It’s a light bulb on steroids: you can manage the color and music of the room directly from your mobile device.” = SWEET.

Price: $79.99

21. A lamp to set the mood for movie night.

A lamp to set the mood for movie night.

landofnod.com

Will this popcorn gentleman get sad when he sees you eating his kinfolk? Maybe it’s best to position him so he isn’t looking directly at the couch.

Price: $15.87

22. A solar sunflower to bring on your next camping trip.

momastore.org

momastore.org

Charge it in the sun for five hours during the day to get three hours of bright light (plus several more hours of lower light) for night.

Price: $30

23. Removable wall decals that glow in the dark.

Removable wall decals that glow in the dark.

fab.com

Bulb bunting!

Price: $48

24. A lamp that turns on and off as you raise and lower it.

fancy.com

fancy.com

About as minimalist as you can get (when it comes to lighting): no cords *or* switches!

Price: $169

25. Twinkle lights that you can hang pictures from.

Twinkle lights that you can hang pictures from.

urbanoutfitters.com

…because they’re also clothespins!

Price: $24

26. Energy efficient light bulbs you can turn on and off using your voice.

fab.com

fab.com

They’re controlled using Siri.

Price: $74.99

[Source:- Buzzfeed]