Reuters today! (China / U.S. AUDIT WARS FIND COMPROMISE, AS I ALWAYS KNEW THEY WOULD! Sweet news!!
TRUST BFAR'S HISTORY OF INTEGRITY.
5:03 AM ET 5/24/13 | HONG KONG, May 24 (Reuters) - "Auditors in China can no longer claim that "state secrets" prohibit disclosure to the U.S. watchdog. That should keep Chinese companies from being banned in U.S. markets. There are open questions about sovereignty and state capitalism, but those are fights for another day. U.S. regulators will be able to access Chinese companies' audit documents under a deal between regulators from both countries announced on May 24, Reuters reported. The non-binding agreement would allow the U.S. auditing watchdog to obtain papers with the help of the China Securities Regulatory Commission and the Ministry of Finance. The agreement by the Public Company Accounting Oversight Board is the result of a two-year negotiation over access. It does not directly include the Securities and Exchange Commission, which has also demanded documents from China-based auditors. The PCAOB would be able to share documents with the SEC, but only if they were originally obtained as part of a PCAOB action. The SEC has charged Chinese affiliates of accounting firms Deloitte, KPMG, PricewaterhouseCoopers, BDO and Ernst & Young with securities violations after they refused to hand over audit work, saying that doing so could breach China's state secrets law. The new memorandum would also not give permission for the PCAOB to inspect audit firms on the ground in China. Since April 2012 the PCAOB has secured inspection agreements with Germany, France, Finland and Spain, and previously reached accords with the United Kingdom, Norway and Switzerland." Endquote.
("HOW DO YOU KNOW THIS?") Reading ALOT (daily everyday) helps.
Embrace the Chinese proverb qiu tong cun yi, which means "Seeking similarities while respecting differences."
*****Understand [WHY & HOW] 'COMMAND ECONOMIES' of Marxism-Leninism, Mao Zedong Thought, & Deng Xiaoping Theory are vastly different.
*****Realize the worldwide recession's temporary 'TIGHT CREDIT' is STILL thee #1 reason most Start-Ups like BFAR pause. (China too is controlling inflation steadily via it's banks, which stops customers buying & paying temporarily.) Don't blame BFAR!
*****"The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly." -Warren Buffett!
Longs should be in the red if properly positioned buying the bottom for LONG COMPOUNDING MILLIONS.
"Chinese retail sales are planned to expand from $2 trillion today to $5-$6 trillion by 2020. Over 350 million people will be added to the urban population by 2025; people living in cities will approach 1 billion; New cities will emerge in over 80 different locations by 2025; 221 Chinese cities will have 1 million or more people living in them; 900 smaller cities outside of the largest 40 cities will generate 54% of the urban GDP and 55% of urban growth; Up to 15 “supercities” with populations greater than 25 million will emerge by 2025; 170 new mass-transit systems and up to 50,000 new buildings could be built; Urban centers could produce up to 75% of China’s GDP by 2025 and job creation in cities is estimated to result in 450-500 million urban jobs in 2025, compared to 290 million jobs in 2005 (McKinsey); 10 million units of affordable housing for low-income groups in renovated areas that are currently impoverished—an investment of 1.3 trillion RMB ($197.6 billion); The Central Government will raise the threshold of taxable income to assist Chinese households to cope with the rising cost of living; in 2008, this threshold was raised to 2,000 RMB and it is believed it will be raised to as much as 3,000 RMB—this tax relief measure, along with the slow appreciation of the RMB, will enable social stability and further expand domestic consumption; According to China’s Ministry of Commerce, there is an active market for luxury goods in China comprised of wealthy consumers (incomes of 300,000 RMB or more ($45,851)) and an additional 13 million upper-middle class households (incomes of 100,000 to 200,000 RMB ($15,284 to $30,567)), which will account for 20% of global luxury sales by 2015; China’s internet market has more than 450 million users with access to online retailers such as GAP and Wal-Mart; Online (e-commerce) sales in China increased by 22% in 2010 as internet sales reached 4.5 trillion RMB ($684 billion); e-commerce is expanding in China and is expected, according to the Ministry of Commerce, to reach 5% of retail sales by 2015, up from 2% in 2010."
Adidas AG plans to open 2,500 stores in smaller cities by 2015; Ford Motor Co. is adding 100 dealers to its network in smaller cities; The major electronics producer, Foxxconn Technology Group, is setting up thousands of stores; Tesco, England’s third largest retailer, is planning to open 200 hyper-markets;
American retailers, GAP, Morton’s Restaurants Group and Starbucks’s, have expansion plans for second-tier cities. In total, Chinese retail sales are planned to expand from $2 trillion today to $5-$6 trillion by 2020. In March 2009, the McKinsey Global Institute reported, “Within 20 years, China will build 40 billion square meters of floor space in 5 million buildings . . . 50,000 of these buildings could be skyscrapers, [which is] equivalent to constructing 10 New York Cities.” Urbanization – The Economic Transformation of China. China’s economic and social goals are tied to urbanization and the establishment of the Chinese middle class. The “middle class” in China is presently defined as those earning 50,000 RMB ($6,300), with different tiers of income necessary to live in megacities such as Shanghai and Beijing as opposed to less-developed, inland urban centers. Disposable income has greater buying power in China than in the western world. We anticipate emerging opportunities for businesses and investment as the middle class is predicted to expand to over 600 million by 2015, up from 250 million at the end of 2010. By 2025, half of China’s population should be considered middle class, with the wealthiest consumers in the 25-44 age group—much younger than the analogous group in western countries. McKinsey & Co. (6/2006).
Consistent with the growth of the Chinese middle class, McKinsey also predicts that more than 20 of the world’s top 50 cities in terms of GDP will be located in Asia by 2025, up from 8 in 2007. Comparatively, half of Europe’s and 3 of North America’s cities currently on this list will be removed during this period. McKinsey & Co. (3/2011)." Quoted. Relevant for BFAR, et al.
Also, China GNP will pass the USA by 2017, as thee #1 largest! OUT