Piles of cars were strewn across a central Chinese city Thursday as shocked residents picked through the debris of a historic deluge that claimed at least 33 lives, with more rain forecast.
An unprecedented downpour dumped a year's rain in just three days on the city of Zhengzhou, weather officials said, instantly overwhelming drains and sending torrents of muddy, swirling water through streets, road tunnels and the subway system.
Hundreds of thousands of people in the surrounding area have been affected by the flood, authorities said, as farmland was inundated and road and rail links severed.
In worst-hit Zhengzhou, grim images of the horror inside the subway system were posted to social media, showing water rising during Tuesday's rush hour from passengers' ankles to their necks.
At least a dozen people died before rescuers were able to cut survivors free from carriages.
As the water retreated – with piles of cars a monument to its deadly power – residents prepared for another day of bad weather, moving vehicles to higher ground and trying to plot journeys out from the stricken city where communication and power were still patchy.
Lorries pumped muddy water from underground tunnels as business owners counted the cost of the torrent and meteorologists issued “red” rain alerts, warning of the threat of fresh landslides and flooding in the surrounding areas.
“I am waiting for the power to be restored, but it may take several more days I think,” Chen, the owner of a local food and pork sandwich restaurant, told AFP.
“My losses? They are OK, compared to what happened in the tunnel there,” he said gesturing to where floods trapped many cars on Tuesday – potentially with motorists still inside.
Questions turned to how China's bulging cities could be better prepared for freak weather events like Tuesday's storm, which experts say are happening with increased frequency and intensity due to climate change.
Anyang city, a short journey north of Zhengzhou, issued a red alert on Thursday for heavy downpours after some areas received more than 100 millimetres of rain, ordering schools to close and most workers to stay at home.
Weather experts dissected the reasons behind Tuesday's record rains saying it was the heaviest rains for 1,000 years.
Chen Tao, chief forecaster at the National Meteorological Centre (NMC), said a mix of Henan's topography and Typhoon In-Fa favoured the rains.
Although the typhoon has not landed in China, under the influence of winds, “a large amount of water vapour from above the sea gathered towards Henan”, providing a source of water for the downpours, Chen said.
The changing climate is also making these kinds of extreme weather events more common as the world continues to heat up, with catastrophes seen across the world.
Henan province, like much of China, is striated by rivers, dams and reservoirs, many constructed decades ago to manage the flow of floodwater and irrigate the agricultural region.
But endless city sprawl is putting pressure on drainage.
State media rebuked suggestions dams may have had a part to play in subverting the normal flow of water, with the Global Times citing experts as saying “construction had no direct connection to flooding".
Cities across the country also faced massive economic damage. The official Xinhua news agency reported direct economic losses of 1.22 billion yuan ($189 million) so far.
The severe weather has brought factories to a standstill and destroyed crops, which will probably raise food prices.
Henan province is the country’s second-largest food producer and accounts for about a quarter of the wheat harvest. Although China has already harvested its main wheat crop, earlier rains affected quality from areas including Henan.
That is expected to drive up wheat imports by as much as 40 per cent this year to the highest level since the mid-1990s, according to Bric Agriculture Group, a Beijing-based consulting firm.
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COMPANY%20PROFILE
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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.”
In numbers: China in Dubai
The number of Chinese people living in Dubai: An estimated 200,000
Number of Chinese people in International City: Almost 50,000
Daily visitors to Dragon Mart in 2018/19: 120,000
Daily visitors to Dragon Mart in 2010: 20,000
Percentage increase in visitors in eight years: 500 per cent
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
The Lowdown
Us
Director: Jordan Peele
Starring: Lupita Nyong'o, Winston Duke, Shahadi Wright Joseqph, Evan Alex and Elisabeth Moss
Rating: 4/5
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
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Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars