Chinese President Xi Jinping waves next to former president Hu Jintao during a ceremony in Beijing to mark the 100th anniversary of the founding of the Chinese Communist Party. AP
Chinese President Xi Jinping waves next to former president Hu Jintao during a ceremony in Beijing to mark the 100th anniversary of the founding of the Chinese Communist Party. AP
Chinese President Xi Jinping waves next to former president Hu Jintao during a ceremony in Beijing to mark the 100th anniversary of the founding of the Chinese Communist Party. AP
Chinese President Xi Jinping waves next to former president Hu Jintao during a ceremony in Beijing to mark the 100th anniversary of the founding of the Chinese Communist Party. AP

Xi Jinping hails 'new world' as China marks Communist Party centenary


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Chinese President Xi Jinping on Thursday hailed a “new world” created by the country's people as China's Communist Party marked the centenary of its founding and warned foreign forces attempting to bully the nation will “get their heads bashed".

In an hour-long televised address from Tiananmen Square after watching fighter jets form a “100" in a fly-by, Mr Xi pledged to build up China's military, committed to the “reunification” of Taiwan and stressed the autonomy held by Hong Kong and Macau.

“The people of China are not only good at destroying the old world, they have also created a new world,” said Mr Xi, China's most powerful leader since Mao Zedong. “Only socialism can save China.”

Mr Xi and the party are riding high as China recovers briskly from the Covid-19 outbreak and takes a more assertive stand on the global stage.

But Beijing faces external criticism over its clampdown in Hong Kong and treatment of ethnic minorities in Xinjiang, and contends with a worsening demographic outlook that imperils long-term economic growth.

The people of China would never allow any foreign force to bully, oppress, or subjugate them, Mr Xi said.

“Anyone who dares try to do that will have their heads bashed bloody against the Great Wall of steel forged by over 1.4 billion Chinese people,” he said, sparking applause from the audience gathered in the square in central Beijing.

Thursday's celebrations began with a fly-by of fighter jets and helicopters observed by the nation's leaders, seated at the southern ramparts of the Forbidden City.

Mr Xi said China had achieved its centenary goal of building “a moderately prosperous society”.

  • Workers in protective suits direct people living near the Xinfadi wholesale market to a stadium in Beijing for testing on June 14. The capital's biggest wholesale food market was shut down following a resurgence in local infections. AP Photo
    Workers in protective suits direct people living near the Xinfadi wholesale market to a stadium in Beijing for testing on June 14. The capital's biggest wholesale food market was shut down following a resurgence in local infections. AP Photo
  • A worker in protective suit chats with a resident near the Xinfadi wholesale market on June 14. AP Photo
    A worker in protective suit chats with a resident near the Xinfadi wholesale market on June 14. AP Photo
  • Security guards set up barricades at a stadium in Beijing where residents are to be tested
    Security guards set up barricades at a stadium in Beijing where residents are to be tested
  • People wear protective masks at an open-air produce market in Beijing
    People wear protective masks at an open-air produce market in Beijing
  • A woman wearing a protective face mask walks by the seafood wholesale market closed for inspection in Beijing. AP Photo
    A woman wearing a protective face mask walks by the seafood wholesale market closed for inspection in Beijing. AP Photo
  • This seafood wholesale market was closed for inspection in Beijing on June 14 as China recorded fresh cases. AP Photo
    This seafood wholesale market was closed for inspection in Beijing on June 14 as China recorded fresh cases. AP Photo
  • A security guard locks up the seafood market entrance. AP Photo
    A security guard locks up the seafood market entrance. AP Photo
  • A medical worker in a protective suit conducts tests on residents at a sports stadium, after new cases of the novel coronavirus disease (COVID-19) were detected in Beijing, China. Reuters
    A medical worker in a protective suit conducts tests on residents at a sports stadium, after new cases of the novel coronavirus disease (COVID-19) were detected in Beijing, China. Reuters

China will build up its military to safeguard its sovereignty, security and development, elevating it to world-class standards, Mr Xi said in his address.

“We must accelerate the modernisation of national defence and the armed forces,” said Mr Xi, who is also chairman of the Central Military Commission, which controls the country's armed forces.

No one should underestimate the resolve of the Chinese people to defend China's sovereignty and territorial integrity, he said.

Resolving the Taiwan question and realising China's complete “reunification” is an “unswerving historical task” of the party, Mr Xi said.

“All sons and daughters of China, including compatriots on both sides of the Taiwan Strait, must work together and move forward in solidarity, resolutely smashing any 'Taiwan independence' plots,” he said.

On Hong Kong and Macau, Mr Xi said their social stability will be ensured, while protecting China's sovereignty, security and development interests.

“We will stay true to the letter and spirit of the principle of 'One Country, Two Systems', under which the people of Hong Kong administer Hong Kong, and the people of Macau administer Macau, both with a high degree of autonomy,” Mr Xi said.

The Chinese Communist Party, which came to power in 1949 under Mao, initially recruited peasants and workers, but has evolved to embrace markets and entrepreneurship under “socialism with Chinese characteristics,” while retaining a Leninist model of authoritarianism.

Party ranks swelled by 2.43 million in 2020, the largest annual gain since Mr Xi became president in 2013, to 95.15 million members now, data released on Wednesday showed.

On Monday, Mr Xi presided over theatrical performances at the “Bird's Nest” National Stadium in a show attended by thousands and that state media described as “epic".

At the end, the audience rose to sing a song, “Without the Communist Party, There Would Be No New China”.

Mr Xi said any attempt to divide the party from the Chinese people or to set the people against the party was bound to fail.

“The more than 95 million party members and the more than 1.4 billion Chinese people will never allow such a scenario to come to pass,” Mr Xi said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

UAE currency: the story behind the money in your pockets
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Avatar: Fire and Ash

Director: James Cameron

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Updated: July 01, 2021, 8:32 AM