China’s ‘Princelings’ Pose Issue for Party – WSJ.com

The offspring of party leaders, often called “princelings,” are becoming more conspicuous, through both their expanding business interests and their evident appetite for luxury, at a time when public anger is rising over reports of official corruption and abuse of power.

State-controlled media portray China’s leaders as living by the austere Communist values they publicly espouse. But as scions of the political aristocracy carve out lucrative roles in business and embrace the trappings of wealth, their increasingly high profile is raising uncomfortable questions for a party that justifies its monopoly on power by pointing to its origins as a movement of workers and peasants.

via China’s ‘Princelings’ Pose Issue for Party – WSJ.com.

China labour unrest flares as orders fall – FT.com

“There has been an intensification of labour unrest in the past week that is probably the most significant spike in unrest since the summer of 2010,” said Geoffrey Crothall of China Labour Bulletin, a Hong Kong-based labour advocacy group that monitors unrest in China.

….Factories are cutting the overtime that workers depend on to supplement their modest base salaries, after a drop in overseas orders.

via China labour unrest flares as orders fall – FT.com.

Hormats Argues for ‘Competitive Neutrality’ Between U.S., China Firms – China Real Time Report – WSJ

U.S. Undersecretary of State Robert Hormats:

“What I am saying quite simply is that the U.S. is not passing judgment on whether or not China chooses to have state owned enterprises. Our concern is that to the extent they do, those SOEs should not receive benefits (e.g., preferred financing, exemption from anti-monopoly laws, generous export credits, etc) that put them at an artificial competitive advantage vis a vis private enterprises — of the U.S. or indeed any other country.

And I did not make the term ‘competitive neutrality’ up. This broad theme is incorporated in the (proposed trade deal called the) Trans Pacific Partnership and more specifically in Organization for Economic Cooperation and Development work.

My point is not to challenge the Chinese SOE model, it is to say that SOEs should operate within a system of global rules and norms, and that Chinese government support measures should not distort competition within that system….”

via Hormats Argues for ‘Competitive Neutrality’ Between U.S., China Firms – China Real Time Report – WSJ.

Australian sharemarket extends losses after weak China survey | The Australian

HSBC issued the preliminary “flash” version of its monthly manufacturing purchasing managers index survey – a closely watched non-government view on how China’s economy is faring. The survey fell to a contractionary reading of 48 for November, compared to a mildly expansionary reading of 51 last month. A reading of 50 separates expansion from contraction.

via Australian sharemarket extends losses after weak China survey | The Australian.

China and Hong Kong

Hong Kong’s Hang Seng Index is testing medium-term support at 18000; breach would signal another test of 16000*. 13-Week Twiggs Money Flow below zero warns of rising selling pressure.

Hang Seng Index

* Target calculation: 16 – ( 20 − 16 ) = 12

The Shanghai Composite is testing medium-term support at 2400. Failure of primary support at 2300 would offer a medium-term target of 2000*. The long-term trend is edging lower in a controlled descent, so conventional target calculations do not apply. Recovery above 2600 is less likely, but would signal another test of the descending trendline.

Shanghai Composite Index

* Target calculation: 2300 – ( 2600 − 2300 ) = 2000

Asian markets

The Shanghai Composite Index reflects China’s controlled slow-down, edging lower with intermittent bear market rallies. The index is currently testing the descending (secondary) trendline at 2500. Penetration would offer a target of 2650 but would not indicate that the primary down-trend is over. Failure of support at 2300/2350 remains more likely and would offer a target of 2000.

Shanghai Composite Index

* Target calculation: 2300 – ( 2600 – 2300 ) = 2000

HongKong’s Hang Seng Index is headed for a test of the (primary) descending trendline at 21000; breakout above 20000 would confirm. The primary trend remains downward, however, and respect of the trendline would suggest another test of 16000.

Hang Seng Index

Japan’s Nikkei 225 Index is ranging between 8400 and 9100. Breakout would indicate future trend direction.

Nikkei 225 Index

* Target calculation: 8400 – ( 9000 – 8400 ) = 7800

South Korea’s Seoul Composite Index continues to reflect buying pressure on 13-week Twiggs Money Flow. Follow-through above recent highs would indicate a strong bear rally, but the primary trend remains downward.

Seoul Composite Index

* Target calculation: 1900 + ( 1900 – 1800 ) = 2000

Dow Jones Shanghai

Dow Jones Shanghai Index is also hesitant, with no advance over the last 3 trading days. Reversal below 304 would indicate a test of primary support at 284. Breakout above the descending trendline — and resistance at 330 — is unlikely with 21-day Twiggs Money Flow (respect of the zero line from below) warning of selling pressure.

Dow Jones Shanghai Index