Bombing outside China’s Communist Party headquarters kills one



BEIJING // A series of small explosions killed one person and injured eight others outside the provincial headquarters of the ruling Communist Party in the northern Chinese city of Taiyuan yesterday.

State media said the blasts were caused by homemade bombs, but there was no official word on the target or perpetrators.

The explosions came during heightened security following a suicide car crash at Tiananmen Gate in Beijing that killed the car’s three occupants and two bystanders in what officials called an act of terrorism committed by Muslim militants from western China.

However, yesterday’s blasts also were reminiscent of the kind of revenge attacks occasionally launched by disgruntled citizens. Assailants angered at perceived injustices have blown up buses, stabbed officials and attacked schools.

The Shanxi provincial government and police said the blasts occurred at about 7.40am. The Xinhua News Agency cited unidentified police sources as describing the explosives as improvised bombs.

One of the injured was listed in serious condition, and a bus and several other vehicles had their windows blown out or suffered other damage.

A street cleaner interviewed on state television said the explosives were planted in flower beds in two separate locations and that eight blasts were heard in all.

Footage showed the blast scene littered with nails and steel balls of various sizes, apparently packed into the bombs to cause maximum damage and injury. Blood stains were visible on the sidewalk and on the door of a damaged SUV.

Xinhua quoted a witness, Liu Guoliang, as saying smoke and flames were seen pouring from a minivan.

Police closed off the broad street in front of the party headquarters, and fire trucks, ambulances and police vehicles were parked in the area. State media showed a man lying on the ground, apparently dead.

Taiyuan is the provincial capital of mountainous Shanxi, which lies to the west of Beijing in China’s gritty coal belt. Demand for the fuel has created vast fortunes for mine owners, but many in the province still live in poverty.

* Associated Press

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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.”

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What can you do?

Document everything immediately; including dates, times, locations and witnesses

Seek professional advice from a legal expert

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In criminal cases, you can contact the police for additional support

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