Asia Archives - Page 16 of 96

Pakistan’s financial issue is fueled by increased IMF loans.

4Jul

By Online DeskNo Comments

Asia

Pakistan’s financial issue is fueled by increased IMF loans.

The IMF has opened discussions with Pakistan on a new loan as its current $3 billion programme draws to a close. In March, the Fund approved the “immediate disbursement” of the last $1.1 billion tranche, urging the government to implement further fiscal consolidation reforms, such as removing subsidies to export sectors and reducing import duties in the upcoming budget with potential negative implications on the local market. The government is seeking another long-term loan from the IMF in an attempt to escape default, as the country is still reeling from a severe economic crisis after the devastating floods that impacted 33 million people more than two years ago (see Observer Autumn 2022, Winter 2021). With reserves ...

<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...

Asia’s manufacturing activity grows in June on the strong momentum in the global economy.

2Jul

By Online DeskNo Comments

Asia

Asia’s manufacturing activity grows in June on the strong momentum in the global economy.

Asia's factory activity expanded in June on solid momentum in the global economy and brightening prospects for semiconductor output, surveys showed on Monday, offering policymakers some hope the region can weather the hit from soft Chinese demand. But cost pressures weighed on manufacturers in countries like Japan, where the weak yen is boosting the price companies pay for fuel and raw material imports. China's Caixin/S&P Global manufacturing purchasing managers' index (PMI) rose to 51.8 in June from 51.7 in May, a private survey showed on Monday, remaining above the break-even line of 50.0 that separates growth from contraction. It marked the fastest clip in more than three years and exceeded market forecasts of 51.2. The private-sector reading followed official PMI data releas...

1Jul

By Online DeskNo Comments

Asia, Market

Air India to set up South Asia’s largest Flying Training Organisation (FTO) at Amravati

MUMBAI: Tata Group-run Air India said on Monday that it is setting up South Asia’s largest Flying Training Organisation (FTO) at Amravati in Maharashtra as part of an initiative by the Maharashtra Airport Development Company (MADC). The DGCA-licensed FTO at Amravati’s Belora airport will be operational by Q1 FY26 and will target to graduate 180 commercial pilots every year, the airline said. The Air India FTO will have 31 single-engine aircraft and 3 twin-engine aircraft for training. Air India has been awarded a tender by the MADC to establish and operate the FTO for a period of 30 years. Campbell Wilson, MD & CEO, Air India, said, “The FTO at Amravati will be a significant step towards making Indian aviation more self-reliant and offering more opportunities to t...

30Jun

By Online DeskNo Comments

Asia, China, Market, Singapore, USA, World

Review of climate-related financial disclosure regimes around the world

1. Australia On 27 March 2024, the Australian Government released the Treasury Laws Amendment (Financial Market Infrastructure and Other Measures) Bill 2024 (Cth) (Bill) outlining the implementation of the country’s proposed mandatory CRFD regime. The Bill contained only minor amendments to the original exposure draft developed by the Treasury at the start of 2023. The Bill is currently before Parliament, where it has passed the Lower House without amendment and is expected to pass the Upper House by the end of June or early July 2024. It is proposed that the reporting requirements will be phased in over the next few years across three groups of corporations. These groups will be determined based on whether companies meet at least two of the three criteria pertaining to re...

30Jun

By Online DeskNo Comments

Asia, Market, World

Global economic outlook: Charting different courses

The pandemic was a common, global shock for all economies that led to very synchronized outcomes. Nearly all economies experienced deep recessions and subsequent strong recoveries because of pent-up demand and policy stimulus. Associated with that, nearly all economies had unexpected surges in inflation, which resulted in aggressive rate hiking cycles. As the world shifts further away from the pandemic shock, there starts to be a desynchronization and more variation in economic growth, inflation and monetary policy, said Rob Subbaraman, Nomura’s Head of Global Macro Research. There are many megatrends that are unfolding, such as artificial intelligence, geopolitical rifts, climate change, demographic change, elections in major economies and high and still-rising public debt, so it is i...

30Jun

By Online DeskNo Comments

Asia, China, Market

China’s economic conundrum under Xi Jinping

China faces an economic challenge rooted in a struggling real estate sector and a strategic shift towards high-end industries, exacerbated by President Xi Jinping's emphasis on national security and distrust of market forces. Despite some arguing that China's economic predicament is not as dire as it seems, concerns persist about its ability to rebound from significant economic downturn if it continues its current economic policies, indicating a possible struggle to regain momentum. China’s economic predicament is rooted in a struggling real estate sector and a strategy predicated on a shift towards high-tech industries. President Xi Jinping’s prioritisation of national security and scepticism of market forces is exacerbating the problem and leading to tensions between political will a...

29Jun

By Online DeskNo Comments

Asia, China, Market

Shehbaz Sharif’s Chinese treasure hunt

Pakistani Prime Minister Shehbaz Sharif concluded his recent high-stakes five-day official visit to China on 8 June 2024. His delegation included the ministers for foreign affairs, defence, finance, and trade, along with over 100 Pakistani businessmen, and most importantly, the Army Chief General, Asim Munir, underscoring the visit’s strategic significance. The urgency of this trip was driven by Islamabad’s efforts to secure a new credit agreement with the International Monetary Fund (IMF), which hinges on the approval of China, Pakistan’s largest bilateral lender. Pakistan’s budget, usually presented on 10 June, was also kept on hold until Sharif’s return from Beijing. This visit highlights Islamabad’s increasing dependence on China amid a deepening deb...

28Jun

By Online DeskNo Comments

Asia, China, Market, World

Plenum priorities that could reshape China’s economic future

The Chinese Communist Party's (CPC) third plenary session in July 2024 is an opportunity to enact major structural reforms. The CPC should prioritise reforms to untie household consumption from housing, add a redistributive role to state fiscal functions and ensure the land-based model of finance for urban development yields to a central transfers and local taxes-backed one. The CPC must shrink the housing sector’s footprint on growth and consumption, shift from indirect to direct taxes and plug the structural revenue deficits that have pushed local governments to raise cash from opaque, off-budget mechanisms. The third plenary session of the Chinese Communist Party’s (CPC) 20th Central Committee in July 2024 comes at a critical juncture for an economy beset by profound challenges. ...

27Jun

By Online DeskNo Comments

Asia, Market, World

Meltdown Looms for the West Bank’s Financial Lifelines

With world attention focused on the Gaza war, another crisis is brewing in the Israeli-occupied West Bank, one that could also have grave implications for stability in Israel-Palestine. Palestinian banks may collapse after 1 July, unless Israel renews a waiver that allows Israeli banks to transact with them by that date. The waiver is critical for imports of essential goods into the Palestinian territories, payments of essential services and salaries, and all banking activity. Without it, the Palestinian economy could face a liquidity crisis and a meltdown with dire consequences for West Bank Palestinians – and maybe for Israel as well. Bezalel Smotrich, Israel’s far-right finance minister, issued a three-month waiver for transactions in March, but indicated that he did...

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