Monday, 11 November 2019

Shocked! Najib's actions showed personal interest beyond that of public office — judge

https://youtu.be/3DeFWJ6nRJE

KUALA LUMPUR (Nov 11): Justice Mohd Nazlan Mohd Ghazali took an hour to deliver his decision today that the prosecution has successfully established a prima facie case against former premier Datuk Seri Najib Razak on all seven charges in the SRC International Sdn Bhd trial.

What was significant was that the judge devoted half an hour to just one charge, namely abuse of power.

Najib also faces three criminal breach of trust charges and three money-laundering charges in relation to the alleged embezzlement of RM42 million from SRC in 2014 and 2015.

On the power abuse charge, Justice Nazlan said evidence adduced by the prosecution showed that the series of actions taken by Najib in respect of SRC showed personal interest beyond that of public office.

Najib, who is also the member of parliament for Pekan and former Barisan Nasional chairman, had agreed to the recommendation made by the Economic Planning Unit to approve a RM20 million launching grant for SRC when the company initially applied for a RM3 billion grant, the judge noted.

"Before SRC was placed under 1Malaysia Development Bhd (1MDB), SRC's Articles of Association under Section 67 stipulates that the accused as PM has the power to appoint and remove the members of the board of directors of the company," the judge said.

More importantly, Justice Nazlan said Najib responded to a letter dated June 3, 2011 from SRC's former chief executive officer (CEO) and managing director, Nik Faisal Ariff Kamil, who sought a RM3.95 billion loan.

"Najib made a notation on the letter addressed to the Retirement Fund Inc (KWAP) CEO Datuk Azian Mohd Noh stating in fact that he was agreeing to it, and wanted Azian to look into it.

"It should be highlighted that KWAP is a statutory institution which in effect reports to the finance minister and KWAP board members and whose investment panel members are appointed by the finance minister, under Section 6 and 7 of the KWAP Act," the judge said.

Najib the ultimate boss

Justice Nazlan said Najib had informed then Treasury secretary-general and KWAP chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah to expedite the approval of the SRC loan, and that this happened after Wan Abdul Aziz and Azian had briefed Najib that KWAP was initially considering extending a loan of only RM1 billion.

"Crucially, Wan Abdul Aziz testified under cross-examination that he did not consider the said communication with the accused as an instruction from Najib. In addition Azian, the former KWAP CEO, testified there was no legal compulsion. She could not deny that there was a certain amount of influence in the notation directed to her in the June 3, 2011 letter.

"This was due to the fact that Azian felt Najib was the PM and the minister in charge of KWAP and her "ultimate boss"," the judge said, adding that before KWAP approved the loan, SRC had written to the finance ministry seeking a government guarantee in anticipation of the RM2 billion loan.

The judge also noted the deputy secretary-general of Treasury, Datuk Mat Noor Nawi, had testified that the transfer of the share of ownership of SRC from 1Malaysia Development Bhd (1MDB) to Ministry of Finance Incorporated was executed by Najib, who was also the finance minister.

Justice Nazlan said the series of conduct and involvement of Najib with regard to SRC, if viewed in totality, cannot be construed as purely being a lawful exercise of his official duty as either the prime minister, finance minister or advisor emeritus of SRC.

"This is because such conduct and involvement was beyond the ordinary and outside the usual conduct or involvement expected of a prime minister and finance minister, similarly circumstanced.

"Such conduct and involvement exhibited by the accused instead serves only to demonstrate the existence of private and personal interest on the part of the accused in SRC, which interest, in my judgement, is in the nature that is envisaged under the law to fall within the ambit of Section 23 of the MACC Act," the judge ruled.

Justice Nazlan further reasoned that the argument that Najib had not given any instructions or directions but merely made requests and had no role to play in securing the KWAP loan cannot withstand the court's scrutiny.

He said if these were couched as mere requests it is manifest that they were made by Najib because they were meant to be obeyed.

"Everyone else in the picture was in a position subordinate to the accused. These included the secretary-general of the Treasury and the (then) Second Finance Minister (Datuk Seri Ahmad Husni Hanadzlah)," he said.

Justice Nazlan said the prosecution has also showed that Najib participated in the decision-making process at the meetings of the Cabinet, which the ex-premier chaired and where the two government guarantees for the loans extended by KWAP to SRC were approved.

This, he said, is clearly is a decision or action taken by Najib in relation to the government guarantee, which was to guarantee KWAP the repayment of the loan by SRC, in which Najib had an interest of a nature that is caught under Section 23 of the Malaysian Anti-Corruption Commission Act 2009.

"In fact the accused himself, as the PM who chaired the meetings, had tabled the Cabinet paper on the second government guarantee at the meeting which approved the same on Feb 8, 2012.

"There was no disclosure, let alone any attempt to excuse himself from the deliberation on the Cabinet papers at the either of the said meetings," he said, adding that Najib also subsequently chaired a cabinet meeting where a short-term loan was approved when SRC nearly defaulted KWAP payment.

"Given the accused's control over SRC, he could cause the transfers of RM42 million which were through intermediary companies credited into his personal accounts and eventuality utilised and spent to his own advantage. This is gratification to the accused pure and simple," he said, in ruling that Najib has to enter his defence on the abuse of power charge.

Najib is charged under Section 23 of the MACC Act for allegedly using his position as the prime minister and finance minister to commit bribery involving RM42 million when he participated in or was involved in the decision to provide government guarantees for loans from the Retirement Fund Inc to SRC amounting to RM4 billion.

He is alleged to have committed the offence at the Prime Minister's Office in Putrajaya between Aug 17, 2011 and Feb 8, 2012. If convicted, he faces a jail term of up to 20 years, and a fine of not less than five times the amount or value received or RM10,000, whichever is higher.

The Edge is reporting the proceedings of the SRC trial live.

Users of The Edge Markets app may tap here to access the live report.

Sunday, 10 November 2019

Digitalisation and its impact

https://youtu.be/Rd8gVeqE-qc

< https://youtu.be/h8pWZyLyS6U

https://youtu.be/TovXuxuyeK8

Has China surpassed USA in education?
https://youtu.be/FTndIELsh48

How China’s tech sector is challenging the world - Part 1

https://youtu.be/veEMMi9BCUE

Huawei CEO: "US companies will suffer the most"

https://youtu.be/MlZU3ktM95w

The Point: Does China need to teach the West lesson in 5G?

https://youtu.be/DTghfxg_DEE

LIKE it or not, the Fourth Industrial Revolution (IR4.0) is upon us.

Sure, Tun Dr Mahathir Mohamad has shown political resolve in pointing Malaysians towards a new course in reaching higher levels of industrialisation. Lest we forget, IR4.0 simply embodies digitalisation. It’s powerful – where speed, sophistication and the profound impact of digital technologies are integrated into orthodox industries on a massive scale.

Frankly, I worry that – until now, as the process of digitalisation in Malaysia lags behind what’s happening around us – the lack of preparedness and of real resolve to act with clear plans and programmes will (unlike China) leave us further and further behind as domestic politics continue to overwhelm. Previous technological shifts followed the onset of the steam engine in the first industrial revolution; then came electricity, the internal combustion engine, the telephone and the light bulb which is the second; followed by the third which moved from analogue to digital (web 2.0) as reflected by the personal computer, networking, the Internet and data/IT.

Digitalisation

In the digital age, economic activity results from billions of online connections. They involve not just people and organisations, but also data, devices, systems and processes. Its backbone is hyper-connectivity. It’s where the effects of technologies and platforms (such as Internet, artificial intelligence (AI) robotics, 5G, computational biology, the Internet-of-Things or IoT, data analytics and computational analysis) give rise to whole new industries, creating significant massive shifts in productivity and jobs.

Outside Malaysia, the digital economy is taking shape and undermining conventional notions about how businesses and organisations are structured; how they interact; and how consumers get their information, goods and services. For example, mall car parking in China is done digitally – after scanning the car’s number plate, the car is directed to an empty lot; and when it leaves, the system automatically deducts the fee from the e-wallet. Simply, components in the digital economy are transformed or empowered by digitalisation: the fundamental process where data is generated, collected, analysed and eventually serves as the single most valuable asset. And so, data becomes the most valuable currency.

Today, China, Germany, the United Kingdom, South Korea and Japan lead the world in digitalisation – way ahead of the United States. China’s digital economy accounts for about one-third of its GDP: arising from two components (i) the orthodox ICT industry; and (ii) the digital empowerment of conventional industries (like agriculture, pharmaceutical, transportation, services, etc). This part contributes 75% of what’s digital.

Today, digital technologies have created a new virtual and autonomous economy (VAE) beyond mere production. Here, businesses & their processes make use of intelligent functions to boost economic activities – slowly but surely, they begin to render human activities increasingly obsolete.

The VAE is all about distribution – who gets what from production. This changes everything: from politics to free market beliefs to social structures. It all started in the ‘70s and ‘80s when ICs (tiny “integrated circuit” microchips) brought real computational assistance to the economy – arrival of the personal computer.

Then, the 1900s and 2000s brought in the connection of digital processes through the Internet; web services emerged, and the cloud enlarged computing resources. Everything started to talk to each other. Globalisation arrived. Since then (the 2010s), the onset of wireless networks through the use of a range of sensors brought into focus, data – using tons of data to enable machines to “see” via intelligent algorithms.

So, came computer vision (ability of machines to recognise), natural-language processing (ability of computers to “talk”), digital language translation, face and voice recognition, inductive inference and digital assistance. The use of masses of data to form “associations” began to give “life” to computers (beginning to act like humans), making them “intelligent.”

The new intelligent building blocks – using information, enable digitalisation to re-architect the way businesses do things. As a result, entirely new industries (never even thought of) will spring up.

Lost jobs

In 1930, Lord John Maynard Keynes predicted that by 2030, the use of robots will lead to “technological unemployment”. This is now a reality – 10 years ahead! Jobs get increasingly scarce.

The orthodox economy will have by now produced enough for all. In the new VAE, physical production matters less; access to what’s being produced becomes key – distribution, i.e. who gets what! The new distributive era brings new economic and social realities: (i) belief in free markets (which prize efficiency over distribution) will be under pressure, since losers are rarely fully compensated in practice; (ii) the way to measure growth will also change (since GDP and productivity are now measured in terms of physical production) so that virtual advances in value-added will be properly accounted; (iii) workers feel disenfranchised as digitalisation replaces many of them – creating a quiet anger about immigration, inequality and elitists.

5G

US dominated 4G mainly because regulators got out of the way of private risk-takers. This led to the coming of mobile wireless Internet. Europe and Asia are still smarting over the United States having beaten them to the 4G finish line. By 2016,4G added almost US$100bil annually to American economic output and created numerous wireless-related jobs. It also powered the rise of the “app economy” because tools like Uber, Airbnb, Netflix and Waze require superfast mobile speeds to work.

Most apps weren’t even envisioned a decade ago; now nearly three-quarters of the companies in the global app economy are American. Other countries know they will reap massive economic returns if they knock the US off its perch as the 5G economy unfolds. Indeed, Europe and Asia are poised to surge past the US when it comes to mobile Internet innovation.

The next generation mobile broadband or 5G will allow entrepreneurs to create new technologies and products that we don’t even yet know we need. Ten years ago, most consumers didn’t have a smart phone; now most can’t live without them.

All of this happened thanks to 4G. With 5G, mobile speeds could be 100 times faster. This could enable driverless cars to avoid accidents, transform medicine through implanted medical devices, and produce smarter cities and energy grids through the emerging IoT.

Countries that build their 5G networks first will be in a better position to experiment with and deploy tomorrow’s technologies. Their first-to-market advantage could displace Silicon Valley and other US tech cradles. Already the United States is very much behind compared with Europe, South Korea, Japan and China. Since 2015, China has built about 350,000 cell sites, against fewer than 30,000 in the United States. That’s a huge competitive disparity because 5G requires far more cell sites grouped closer together than 4G.

The robot is part of a broader trend in China, where techcos are teaming up with a variety of industries – agriculture, auto-mobile, healthcare – to explore the possibilities of combining 5G and AI to revolutionise traditional sectors.

From conducting the world’s first 5G-enabled surgery on a human and transmitting 8K ultra-high-definition TV content through 5G networks, to piloting self-driving buses and cars, China is pioneering cutting-edge technologies for commercial use. The high-tech push is expected to accelerate now that China just kicked off the 5G era at speeds at least 10 times faster than 4G. So it is possible to gather high-quality data quickly, which is necessary to ensure AI is effective. AI applications have existed before the commercial use of 5G. But it is the superfast speed, gigantic computing capacity and massive device connectivity of 5G that will spawn the use of AI in most sectors and on a far larger scale. 5G’s responsive speed can empower mission-critical applications that are impossible with 4G networks.

When a needle pinches your finger, it takes one-hundredth of a second to feel the pain. And theoretical latency of 5G is one-tenth of that. Only with such speed can remote surgeries and autonomous driving see wider applications. In March 2019, a patient with Parkinson’s disease underwent China’s (and possibly the world’s) first 5G-based remote surgery. Digital technologies such as AI, next-generation network security, robotics, blockchain, IoT, 3D printing and virtual reality all depend on data. 5G addresses this need for data collection with its quick, smooth transmission.

The most important use of AI is to allow machines to automatically make decisions. The best application is self-driving vehicles where 5G will allow decisions to be made more reliably. When a car runs into emergencies (like a pedestrian suddenly jaywalking), a delay in seconds of data transmission among sensors equipped within the car will likely cause a potentially grievous, even fatal, accident. 5G can prevent such things from happening.

6G

While 5G is set to have a revolutionary influence on society and industries, 6G will bring more dramatic changes with super high speeds and ultralow latency. Theoretically, downloads over 6G can reach the astonishing speed of 1 Tbit per second, one thousand times faster than 5G’s capability of 1Gbit. In the 6G era, in less than a second, a new movie can be transmitted from the Internet to computers or smartphones. But 6G will go way beyond entertainment. For many researchers, 6G is capable of addressing some of the shortfalls of 5G and enabling streamlined connections with super performance in speeds and latency – for instance, the IoT and augmented reality.

Beijing started preliminary work on 6G research at the end of 2017. China’s 6G concept research and development work will start in 2020, with an expected commercial release in 2030. In Europe, 6G moves will mainly come from Finland. As I see it, Europe and China will need to join hands to work on 6G: because (a) cooperation is of strategic importance for both. 6G will greatly improve applications under 5G. With larger bandwidth, much lower latency and wider connections, it can revolutionise the structure of wired and wireless networks.

New 6G technical solutions can include satellite communication technology. This means a large number of places that are not covered by communication signals (for instance, deep oceans where base stations cannot be built) will have the possibility of transmitting and receiving signals in the future; (b) such cooperation will help Europe cope with the risks of lagging behind; and (c) it would be a natural extension of their proven 5G cooperation.

What then are we to do

The 5G technology promises to be the backbone of tomorrow’s Internet, transforming virtually every industry, including weaponry and manufacturing, by offering seamless wireless connections up to 100 times faster than current 4G networks. Its speed and capacity enable innovations, such as driverless cars, robot-run factories and Internet-connected pacemakers. It is said often enough that we tend to overstate the impact of technology in the short run and understate it in the long run.

One of the widely misquoted statistics concerns an imminent job apocalypse: automation will slash 47% of US jobs by mid-2030. In truth, the real finding of the two Oxford dons simply concluded that occupations accounting for 47% of current American jobs (including those in office administration, sales and various service industries) fall into the “high risk” category.

No attempt was made to estimate how many jobs will actually be lost. Much depends on cost, regulatory concerns, political pressure and social resistance. Historically, new technologies have always ended up creating more jobs than they destroyed. In the long run, all should work out fine. The short term is likely to be bumpy.

Simply because new technologies take time to raise productivity and produce wage gains. But, one thing is certain, automation is likely to boost inequality in the short run. So, policymakers need to really manage the transition: making greater use of insurance to compensate workers who have to move to jobs with lower salary; reforming education systems and support retraining and lifelong learning; extending income tax credit to improve incentives to work and reduce inequality; removing regulations that hinder job-switching; providing “mobility vouchers” to subsidise relocation as the distribution of jobs changes; and changing zoning rules to allow more people to live in the cities where jobs are being created. Sure, all these make sense. But will policymakers pay attention? To be frank, governments are incredibly unprepared for what’s to come.

The bottom line? Power brings with it great responsibility. Those in the technology and AI space have a moral imperative to ensure the ethics of data and technology – especially to help policymakers navigate complex ethical issues involved in using AI and robotics.

Most data relate to people – hence, the need to understand human behaviour. Technologies provoke a whole raft of new ethical issues involving transparency and accountability of business processes and decision making. Then, there are issues of privacy and rights connected with personal data. Not to forget that machine-learning algorithms often introduce bias.

Resolving them requires an approach grounded in ethics and an understanding of the causes of bias – traditionally the province of philosophy and sociology. In the end, the challenge lies in formulating transparent rules and ethical standards that can be agreed by the large scientific and technology community. That’s always tough!

BY Tan Sri Lin See-Yan who is Research Professor at Sunway University. His new book: Trying Troubled Times Amid Trauma &Tumult, 2017–2019 (Pearson). Feedback is most welcome. The views expressed are the writer’s own.

Image result for rying Troubled Times Amid Trauma & Tumultn by Tan Sri Prof Lin See-Yan

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Thursday, 7 November 2019

US adopts blinkered view of TikTok

TikTok, a global music and video platform created in 2016 by Chinese internet technology company ByteDance, is known in China as Douyin. Photo: VCG

A Senate subcommittee hearing on Tuesday focused on discussions about the significant risks that short-form social video app TikTok could pose to US national security and citizens' privacy.

The accusations about TikTok are based on the assumption that its parent company ByteDance may hand over personal information of the app's US users to the Chinese government, thus posing huge risks to users and the country. In addition, there are also claims that TikTok censors content. TikTok denies both charges.

TikTok runs its business according to US law, so how can it threaten US national security? Many people believe that the US is using this as an excuse to crack down on this globally successful Chinese social media app. To date, all popular social media platforms have been created by US companies, but TikTok is an exception. It challenges their monopoly and some American elites are uncomfortable about it.

Over the past 12 months, TikTok's app has been downloaded more than 750 million times, compared with 715 million for Facebook, 450 million for Instagram and 300 million for YouTube. Its success has even worried Facebook CEO Mark Zuckerberg and now Facebook is developing a short video sharing application that mimics TikTok.

It's not a good trait for the US to suppress competitors of American companies by political means. Washington has taken extreme measures against Huawei, such as cutting off the supply of some components, a move that cracks down on competitors at the expense of hurting domestic companies. There are signs that TikTok is the next target. What the US is doing is driven by extreme protectionism and runs counter to a free market economy.

Washington elites should think about that. US-developed social networking sites are popular around the world. Any country can use the same concerns US lawmakers have about TikTok to target Facebook, Twitter and Instagram. Without any evidence, if every country conjured up risks to challenge those companies, would the world ever be able to share common applications? If such national security principles were to be promoted globally, US internet giants would suffer the most.

The US internet market is becoming solidified. Americans are supposed to welcome competition from TikTok. China's internet market has changed tremendously in recent years with JD challenging the dominance of Baidu, Alibaba and Tencent, followed by the rise of strong players such as TikTok and PDD, which boost the dynamics of the Chinese internet market. The US shouldn't suppress competition and encourage idleness.

Despite being the strongest country in the world, the US often accuses others of being national security risks. It uses political means to safeguard its existing interests when its technology falls short. But this approach will affect how Americans view modern competition and how American society participates in international competition. In the long run, some American companies may use dishonest practices, not better technology and innovation, in the international marketplace.

The US should carefully study the TikTok phenomenon and learn from it. TikTok has its own algorithm, but it pays close attention to abiding by laws and customs of the countries where it is carrying out business activities. When in Rome, do as the Romans do - this is a universal rule for business activities. All US social media giants have the opportunity to enter the Chinese market if they follow that rule.

We hope the US won't go to extremes. Being open is where US interests lie. Even if they have worries about TikTok, they must exercise restraint. Many people are worried that the US might monitor them through various means every day, but they are restrained and rational. The US has no reason not to do likewise.

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Tuesday, 5 November 2019

China gets into blockchain race with US

Blockchain is perhaps best known for underpinning the operation of cryptocurrencies such as bitcoin, which Beijing may seek to replicate.PHOTO: REUTERS

One example of the potential application of blockchain technology is a newly launched app by the Communist Party that asks members to explain why they joined and what party loyalty means to them. (Photo: AFP/Greg Baker)

BEIJING: China has launched an ambitious effort to challenge the US dominance in blockchain technology, which it could use for everything from issuing digital money, to streamlining a raft of government services and tracking Communist Party loyalty.

The technology received a crucial endorsement from President Xi Jinping last week, a signal that the government sees blockchain as an integral part of the country's plan to become a high-tech superpower.

Beijing is the latest in a handful of countries to have adopted a law strictly governing the encryption of data - particularly blockchain technology, which allows the storage and direct exchange of data without going through an intermediary.

Reputedly unfalsifiable, blockchain is a database shared across a network of computers. Once a record has been added to the chain it is almost impossible to change.

It is perhaps best known for underpinning the operation of cryptocurrencies such as bitcoin - which Beijing may seek to replicate as it pushes ahead with its plans for a world-leading government-run digital currency.

https://cna-sg-res.cloudinary.com/image/upload/q_auto,f_auto/image/12059024/16x9/670/377/9e6b6b9b2b6ec007ae2c9a3107f86991/tI/blockchain-technology-received-a-crucial-endorsement-from-president-xi-jinping-last-week-a-signal-that-the-government-sees-it-as-an-integral-part-of-the-country-s-plan-to-become-a-high-tech-superpower-1572750315390-2.jpg

Blockchain technology received a crucial endorsement from President Xi Jinping last week, a signal that the government sees it as an integral part of the country's plan to become a high-tech superpower. (Photo: AFP/Andrew Caballero-Reynolds)

Although the new law for blockchain "is still rather vague", the country is clearly one of the most active in terms of regulation, Stanislas Pogorzelski, editor of specialist site Cryptonaute.fr, told AFP.

"China has understood very well that to stay a superpower, you have to be at the forefront of new technologies," said Pogorzelski.

Blockchain is set to play a key role in many sectors in the future, including digital finance, internet of things, artificial intelligence and 5G.

LESS HUMAN INTERVENTION

It could also serve to make China's vast bureaucratic system more efficient.

The official Xinhua news agency said a blockchain-based system had been used for the first time to automatically generate and file an enforcement case in Chinese court against a party who failed to pay damages in a mediation agreement.

With less human intervention, such systems could make judicial enforcement in China "more intelligent and transparent," the agency said.

Chinese shares jumped this week as investors piled into stocks linked to blockchain, after Xi said China should step up research and development of the technology.

"Blockchain should play a bigger role in strengthening Chinese power in cyberspace, developing the digital economy and promoting socio-economic development," Xi said.

"The general sentiment of Xi's comments was simple," said Anthony Pompliano, who writes a daily cryptocurrency newsletter.

"Blockchain technology is really important for the future and China plans to be the global leader," Pompliano added.

LOYALTY TEST

According to analyst Kai von Carnap of the Mercator Institute for Chinese Studies, blockchain-backed tools have potential applications that go well beyond improving administrative efficiency in China.

"More interesting will be those targeting party discipline, internal stability and ideological loyalty," Von Carnap told AFP.

Chinese shares jumped this week as investors piled into stocks linked to blockchain, after Xi said

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Chinese shares jumped this week as investors piled into stocks linked to blockchain, after Xi said China should step up research and development of the technology. (Photo: AFP/Hector Retamal)

One example is a newly launched app by the Communist Party that asks members to explain why they joined and what party loyalty means to them.

Blockchain technology is then used to store their responses on a permanent, widely distributed ledger - recording their thoughts in cyberspace forever.

"NOT A FAN"

As China trumpets its push for more blockchain technology, it is hoping to outpace trade-war rival the United States, whose President Donald Trump tweeted his disdain for cryptocurrencies in July.

"I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air," he wrote.

The contrast between the world's two biggest economies is "striking", according to Pompliano, who says "bitcoin, blockchain technology, and digital assets are not a priority for America".

Facebook chief executive Mark Zuckerberg had to defend his plans to launch a digital coin called Libra to the US Congress in October, after it faced a torrent of criticism from all sides - including governments who see it as a threat to their monetary sovereignty.

"I don't think Libra will succeed," Huang Qifan, vice director of the CCIEE, an economic think-tank that advises Beijing, said this week in remarks widely reported by state media.

"It is better ... to have sovereign digital currencies issued by a government or a central bank," he said.

Last year China released a damning report on existing digital currencies, saying they were "increasingly used as a tool in criminal activities."

But while Beijing banned cryptocurrencies two years ago, it is fast-tracking preparations for its own state-run virtual currency, which is supposed to facilitate transactions and reduce costs.

The anonymity of cryptocurrencies allows users to buy and sell freely without leaving a digital trail - but China's mooted e-cash system will be tightly regulated, experts say, and run by the People's Bank of China.

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President Xi’s Blockchain Push Triggers Frenzy in China Technology Stocks

Blockchain endorsement: Xi said China will increase investment in blockchain technology after chairing a study session last week on developing the industry, state-owned Xinhua reported.— AP

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BEIJING: Chinese investors snapped up every blockchain-related stock in sight after President Xi Jinping said Beijing wants to speed up development of the technology.

The gains were widespread yesterday, with Insigma Technology Co and Sinodata Co among more than 60 tech shares surging by the daily limit in Shanghai and Shenzhen.

The excitement coincided with a 26% rally in Bitcoin, and also boosted stocks with more tenuous connections to blockchain, like baby-food producer Beingmate Co and selfie-app developer Meitu Inc.

Xi said China will increase investment in blockchain technology after chairing a study session last week on developing the industry, state-owned Xinhua reported late last Friday.

The market reaction shows how far an endorsement from Xi can go in China, where high-level officials yesterday began their first major policy meeting since early 2018.

“Most of these companies, especially those that are just beginning to state their connection with blockchain today, are trying to take advantage of the hype, ” said Li Shiyu, fund manager at Guangdong Xiaoyu Investment Management Co. “It shows how much excitement can be triggered by something stressed as a priority by the top man himself.”

Xi Jinping comments spark rally in China technology stocks

The Shenzhen Information Technology Index closed 5.3% higher yesterday, its biggest advance in eight months.

Hundsun Technologies Inc, Easysight Supply Chain Management Co, YGSOFT Inc and dozens more companies with officially registered blockchain businesses rose by the 10% limit.

In Hong Kong, traders singled out Meitu due to its plans for an encrypted user-identification system.

The shares surged as much as 30%. Pantronics Holdings Ltd - which earlier this month said it will change its name to “Huobi Technology”, a reference to a digital currency exchange - rallied as much as 67%.

American depositary receipts of Chinese blockchain companies also surged last Friday.

Investors pressured other firms to jump on the blockchain hype, using an online Q&A platform to submit thousands of questions on their plans to use the technology.

“Please proactively make expansion plans in blockchain to jump on state policies - doing so would be the best reward to investors, ” urged one shareholder of development-store operator Hunan Friendship & Apollo Commercial Co. — Bloomberg

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Experience suggests that Washington often says one thing and does another, using beautiful concepts as their brand of bullying and forcefully reshaping the meaning of those concepts. For example, Washington often talks about "rules," but the world has seen the US consistently commit the most brutal violations of the rules on which the United Nations system is based. The rules they talk about are actually a framework for protecting the interests of the US and its major allies. They are also a behavioral norm to force other countries to maximize those interests.

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