Asia Archives - FINANCIAL POST

<strong>Uncertainty and insecurity in job markets contribute to China’s economic slowdown</strong>

18Jul

By Joe RodriguezNo Comments

Asia, China

Uncertainty and insecurity in job markets contribute to China’s economic slowdown

Unemployment and growing job insecurity in China have seen a sharp increase, becoming a major contributor to the ongoing slowdown in the Chinese economy. The real estate crisis is another factor that is being cited for the dip in China’s GDP, which is however a fallout of declining confidence among property buyers amid the disturbing unemployment situation in the country. In the previous financial quarter, the growth rate of the Chinese economy shrunk to 4.1 percent, missing the expectations of 5.1 percent. While the fresh graduates are struggling to find jobs, those already employed are scared of being sacked anytime or forced to work at lower salaries. Joblessness in China is still high, with the youth unemployment rate remaining at 13.2 percent in June. The Chinese job market is ...

<strong>Yuan’s downward spiral against dollar continues</strong>

11Jul

By Michael SmithNo Comments

Asia, China, USA

Yuan’s downward spiral against dollar continues

In the last week of June, the offshore yuan experienced a significant drop against the U.S. dollar, reaching a seven-month low of 7.27:1. This depreciation of China's currency was influenced by several factors, as suggested by market analysts. One of the contributing factors was the lower-than-anticipated spot fixing rate established by the People's Bank of China (PBOC). This led to speculation that Chinese authorities might permit further depreciation of the yuan. As a result, the yuan has seen a decline of over 2 percent against the dollar since the beginning of the year. There's been a noticeable shift in the pattern of foreign investment in China's mainland stock market. Instead of buying, organizations are now selling. In June alone, approximately 33 billion yuan ($4.54 billion...

<strong>Potential tariffs on Chinese EVs spark retaliation concerns and trade tensions in Canada</strong>

9Jul

By Joe RodriguezNo Comments

Asia, China, World

Potential tariffs on Chinese EVs spark retaliation concerns and trade tensions in Canada

Canada has begun evaluating the impact of China’s alleged unfair trade practices on its electric vehicle (EV) market, leaving China unhappy and perturbed. This decision follows actions by the US and the European Commission, Canada’s international partners, which have recently responded to unfair competition in their EV industries. The purpose of the consultation, which will continue until August 1, is to assess the risk of Canada’s EV market being inundated with cheaper Chinese plug-ins. Experts have not ruled out the possibility of retaliation from China. If Canada imposes tariffs on Chinese electric vehicles, two trade experts predict that the world’s second-largest economy will forcefully retaliate. Rachel Ziemba, an adjunct senior fellow at the Center for a New American Security, s...

<strong>Poor performance of Chinese stock exchanges reflects uncertainty and a lack of confidence</strong>

3Jul

By Joe RodriguezNo Comments

Asia, China, Market

Poor performance of Chinese stock exchanges reflects uncertainty and a lack of confidence

Shanghai Stock Exchange and Hang Seng index have been struggling to perform for the past few years despite intervention by the Chinese government, which has led to frustration among investors. These Chinese stock exchange indices have experienced sharp declines thanks to brutal selloffs amid uncertainty and a lack of confidence in the market. Investors have blamed the Beijing government for failing to take necessary steps to stabilize the market.[1] The growing disinterest can be gauged from recent developments at the Hang Seng exchange. The decline in fundraising from the new listing has been lowest in the past two decades. A total of 26 companies raised USD 1.5 billion through Initial Public Offering (IPO) in the first half of 2024, which is 35 percent less compared to the correspond...

<strong>CHINESE CHIP PRODUCTION AT RISK AS EQUIPMENT BAN LOOMS</strong>

26Jun

By Michael SmithNo Comments

Asia, China, Market, USA

CHINESE CHIP PRODUCTION AT RISK AS EQUIPMENT BAN LOOMS

The United States is intensifying its measures to restrict China's access to cutting-edge chip technologies capable of manufacturing gate-all-around (GAA) transistors and high-bandwidth memory (HBM) chips. ChangXin Memory Technologies Inc (CXMT), a Hefei-based company that manufactures DRAM for computer servers and smart vehicles, is likely to be a significant focus of Washington's potential restrictions, as per media reports. Samsung Electronics, SK hynix, and Micron are among the major competitors of CXMT. Alan Estevez, who heads the Bureau of Industry and Security (BIS) at the US Commerce Department, recently embarked on a trip to the Netherlands. The purpose of his visit, as reported by Reuters on Tuesday, was to discuss the inclusion of an additional 11 Chinese chip manufacturi...

<strong>MERICS report claims Chinese investments in Europe in 2023 fell to the lowest in 13 years</strong>

12Jun

By Joe RodriguezNo Comments

Asia, China

MERICS report claims Chinese investments in Europe in 2023 fell to the lowest in 13 years

Chinese investment in Europe last year dropped to the lowest in 13 years since 2010, according to an annual report published on June 6 jointly by independent research provider Rhodium Group and German think tank e Mercator Institute for China Studies (MERICS). As per the report, Chinese direct investment (FDI) in Europe (defined here as the EU-27+UK) slipped again to EUR 6.8 billion last year (2023), from EUR 7.1 billion in 2022, and it was the lowest level since 2010. The report shows that Chinese corporate investors faced challenges and uncertainties last year from a mix of political and economic factors in Europe and globally, while uncertainty about the global economy impacted the investment environment for Chinese firms, amid rising geopolitical tensions that inc...

<strong>Business closures surge as Foreign Capital flees China</strong>

6Jun

By Michael SmithNo Comments

Asia, China, Market

Business closures surge as Foreign Capital flees China

China is currently facing a significant economic challenge. Foreign capital, once a major driver of the country’s growth, is rapidly withdrawing. This shift is triggering a domino effect, leading to widespread business closures. Furthermore, salary cuts across various sectors are becoming increasingly common, adding to the mounting economic pressure.Foreign capital is withdrawing and a wave of business closures is sweeping across the country accompanied by a further spread of salary cuts and wager arrears within the system throughout China. By late May public servants in various parts of the Mainland told new Tang Dynasty television that waves of layoffs, salary cuts or job losses have become common place in State owned Enterprises leaving many without a guaranteed livelihood. Miss Xiao, ...

East Asian nations are forced to allow their currencies to fluctuate due to speculative attacks, which led to the Asian Financial Crisis of 1997.

5Jun

By TheGreenZoneNo Comments

Asia

East Asian nations are forced to allow their currencies to fluctuate due to speculative attacks, which led to the Asian Financial Crisis of 1997.

In the summer of 1997, capital flight forces several East Asian countries to let their currencies float: the ensuing Asian Financial Crisis threatens the international financial system. After the end of the Cold War in 1991, capital flowed into booming East Asian countries (Thailand, Philippines, Malaysia, Indonesia, and South Korea). Foreign investors were animated by their impressive economic growth since the 1960s, their stable and pegged exchange rates, and their policies of financial market liberalization. Private net inflows to these countries increased drastically, rising from US$40.5 billion in 1994 to US$93 billion in 1996. As a result of this inflow of capital, East Asian countries experienced simultaneous credit, stock price, and real estate bubbles. Their currencies beca...

“Booming” economy, while many still struggle

31May

By TheGreenZoneNo Comments

Asia

“Booming” economy, while many still struggle

When it comes to the simultaneous existence of growth and crisis, Bangladesh has become a model. There is a growth of per capita income on the one hand, and financial hardship, unemployment, hunger, malnutrition, and financial insecurity suffered by the majority of people on the other. Unprecedented expansion of private banks is happening while the banking sector faces a crisis with rising defaulted loans and big theft of bank money. Over the last decade, we have seen a construction boom on the one hand, and the highest rates of deforestation, air and water pollution, and land- and river-grabbing on the other. The super active propaganda machine of the government as well as their local and foreign partners consistently try to make us believe that the country is on the highway of develo...

India’s rapid economic development creates a solid foundation for the upcoming government.

31May

By TheGreenZoneNo Comments

Asia

India’s rapid economic development creates a solid foundation for the upcoming government.

NEW DELHI, May 31 (Reuters) - India's economy grew at a faster-than-expected pace of 7.8% year-on-year in the first three months of 2024, helped by a strong performance in the manufacturing sector, and economists expect the momentum to continue this year.The highest growth pace among the largest economies globally will bolster the economic record of Prime Minister Narendra Modi, who is hoping to win a rare third term in the national election, with results set to be released on June 4.Investors are looking ahead to the election outcome and the full-year budget in mid-July to see what steps the new government might take to boost the economy.The Reserve Bank of India's (RBI) record surplus transfer of 2.11 trillion rupees ($25.3 billion) will help the next government to increase state spendi...

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