31 July 2018 FT — Articles to Read

31 July 2018


Question: According to MSN:Money, what are three things you should do if in your 40s without any savings?


Fall in Chinese home sales signals growth slowdown – Pg. 3

          China’s housing sales suffered a broad-based decline in July in a further sign that growth in the second-largest economy is ebbing just as the US-China trade war appears set to escalate

          Real estate is a driver of the Chinese economy, so slackening property sales can have broader implications for GDP growth

          China’s GDP grew by 6.8% in the first half of this year, but signs of a mild slowdown are spreading as the US-China trade war bites and Beijing gets tough on the unruly shadow finance sector

          Investment in residential and commercial real estate rose 8.4% in June, down from a 9.8% rise a month earlier, …


Designers drive trend for sharing on home front – Pg. 4

          A new frontier for Space10 is “co-living”.  Such housing shared by two or more people who are not related is seeing a revamp, driven by young urban professionals, who may be more digitally linked yet feel lonelier than ever

          You get shorter, flexible leases and the flat monthly fee includes rent, utility bills and cleaning, access to fully-furnished smaller private bedrooms and shared kitchens, office and recreational spaces

          Grasping these issues is vital not only as millennials dictate consumer trends, but also as the global population swells, house prices rise and incomes fail to keep up

          Collective living has been practices across cultures throughout history, but the modern concept of co-living was pioneered in Denmark in the 1960s.  Denmark has since become home to more realistic models (Prof Note: No less than three construction crews were on Cat Ghaut today.  Many brought their families including young children to golf, swim, run, and play.  It was amazing how vibrant everything was with the laughter of children, backhoe digging, stone being chiseled and boards cut.  I understand the attraction but also know I was in my A/C office watching everything and smiling.)


Lending to the limit – Pg. 7

          Over the past 18 months, regulators have unleashed a “windstorm” against Chinese banks, with rules to prevent out-of-control lending growth and risky funding practices that are especially prevalent among regional players

          Several regional banks have already gone bankrupt in all but name before being  bailed out and restructured by local authorities.  Others have become piggy banks for local governments or politically-connected tycoons with an outsized influence over local banks

          Problems at small banks matter because their role in China’s financial system is growing.  The country last year surpassed the Eurozone to become the world’s largest banking system by assets.  Meanwhile, small and mid-sized banks have more than doubled their share of total Chinese banking assets to 43% in the past decade

          In china, regional banks struggle to attract deposits because regulators rarely allow them to open branches outside their home provinces

          With modest deposit growth unable to satisfy their appetites for balance-sheet expansion, small banks turned to volatile, wholesale borrowing from other banks


Answer: (1) Lower some major living costs; (2) Get a side job (Prof Note: I was so honoured when a younger person called me on a recommendation from another saying, “I understand you are an expert in side hustles.”  I said, “Not quite but I am an advocate!” J); (3) Take steps to advance your career