Asia

13May By Online DeskNo Comments
Asia, China, Market

Bangladesh interested in China’s offer of loans in yuan

China has expressed its interest in extending a large amount of loans in its own currency, the yuan, and Bangladesh is exploring ways to accept and make its best use amid ongoing financial woes. The authorities in Bangladesh have already initiated discussions to formulate a set of specific proposals to China in this regard. The US dollar is now the medium of exchange for bilateral trades with China, and Bangladesh is now mulling settlement of the import liabilities using loans obtained in yuan. China is now the largest source of imports for Bangladesh. The authorities believe that the loan may play a crucial role in addressing the dwindling forex reserves in Bangladesh. It was learnt that China aims to offer more than CNY 36 billion – equivalent to $5 billion – in the form of a ‘...
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Three challenging decisions to revive the economy
9May By Online DeskNo Comments
Asia

Three challenging decisions to revive the economy

According to the monetary policy committee of the BB, the economy faced two critical challenges -- persistently high inflation and depleting foreign exchange reserves. Although the BB and the government have taken various measures to curb inflation, stabilise the exchange rate and protect the erosion of foreign exchange reserves, inflation remains stubbornly high and the foreign exchange reserve situation is not improving to the desired level, the central bank said. Inflation has stayed above 9 percent since March last year, and the local currency weakened by 35 percent against the US dollar in the past two years. The country's reserves have more than halved, bringing about one of the worst economic crises for the low-middle-income nation. It has been struggling to raise enough taxe...
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<strong>Sales dip but Chinese EV producers continue price war in Thailand</strong>
8May mmBy Joe RodriguezNo Comments
Asia, China, Market

Sales dip but Chinese EV producers continue price war in Thailand

In the face of stiff competition and declining sales in Thailand's Electric Vehicle (EV) market, Chinese automakers are battling to carve out a niche for themselves. This spring, a host of Chinese automakers showcased their EVs at an international auto show in Bangkok, Thailand, in an attempt to attract Thai customers. Among the participants were notable companies such as Changan Automobile, BYD, Great Wall Motor Company Ltd., Dong Feng Motor Corporation, Shanghai Automotive Industry Corporation, Nio, Xpeng, Leap motor, Hozon, Geely, JAC, and others. Despite the aggressive pricing strategies employed by these Chinese automakers, their vehicles have yet to gain significant traction among Thai consumers. The sales of EVs in the Thai market continue to be sluggish, casting a shadow over the ...
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6May By Online DeskNo Comments
Asia, China, Market, World

Goldman Sachs, UBS, BNP more positive on Chinese stocks as chorus of favourable sentiment grows in run-up to July plenum

Investment banks including Goldman Sachs, UBS and BNP have become more positive on stocks in China, with foreign selling having subsided. Foreign investors were net buyers of Chinese stocks for a third straight month in April, the longest streak of foreign buying in a year. Global emerging market funds rolled back their underweight position on mainland China stocks and turned neutral, HSBC said in a report last month. Some international hedge funds have shifted their investment positions from US or Japan stocks to China stocks over the past week, Japanese investment bank Daiwa Capital Markets said in a report. Goldman Sachs said changes are afoot in China that point to a potentially stronger risk appetite and a more conducive trading environment for A shares in the near...
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<strong>Sri Lanka shuns China to hand over Beijing-funded airport management to Indian, Russian companies</strong> 
27Apr mmBy Joe RodriguezNo Comments
Asia

Sri Lanka shuns China to hand over Beijing-funded airport management to Indian, Russian companies 

In a possible diplomatic victory for India, Sri Lanka has decided to hand over management of its $209 million Chinese-built airport to two companies from India and Russia.The step taken by the Sri Lankan Cabinet is a positive change at a time when the cash-strapped island nation is heavily dependent on Chinese loans for major projects.Last week, the Sri Lankan Cabinet handed over the airport to Shaurya Aeronautics (Pvt) Ltd. of India and Airports of Regions Management Company of Russia for 30 years, a move clearly showing India regaining closeness with its immediate neighbour over China.The airport in question is Mattala Rajapaksa International Airport (MRIA), located in Mattala town, about 18 km from Hambantota. The airport was built in the country with funds from China EXIM Bank bu...
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Bypassing Barriers: China’s clever use of Mexico to penetrate U.S. markets
26Apr mmBy Joe RodriguezNo Comments
Asia, Market, USA, World

Bypassing Barriers: China’s clever use of Mexico to penetrate U.S. markets

China operates with a singular objective: to maximize profits, employing any means necessary. Recently, we have witnessed escalating tensions between the United States and China over trade relations. This conflict has significantly impacted the American market, prompting the U.S. government to impose substantial tariffs on Chinese goods imported into the country. However, China has ingeniously devised a strategy to circumvent these hefty tariffs while simultaneously reducing shipment costs. Chinese companies utilize Mexico as a back door to enter the US amid the ongoing trade war with the US. Many Chinese firms have moved to industrial parks in northern Mexico over the past few years to get closer to the American Market. Market Manoa Furniture in Monterrey producing recliners and plush...
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What is the US economy’s message from the smaller US surveys?
23Apr mmBy Joe RodriguezNo Comments
Asia

What is the US economy’s message from the smaller US surveys?

Stickier inflation, a relatively healthy labour market and a barrage of stronger US economic data have forced the market to reconsider its aggressive Fed expectations and to price in only two rate cuts for 2024. Despite the surging US yields, which make lending more expensive especially for the smaller corporates, US stock indices recorded new all-time highs, partly on the back of the AI craziness that is expected to benefit their accounting bottom lines, as the US economy proves to be ahead of the herd. However, the recent US CPI report has alarmed the market about the possibility of the Fed not cutting rates this year and thus prompted the current stock market weakness. Is the US economy strong enough to justify keeping rates unchanged? Putting aside the most popular busin...
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Sri Lanka must follow a careful growth path.
23Apr mmBy Joe RodriguezNo Comments
Asia

Sri Lanka must follow a careful growth path.

In April 2022, crowds of Sri Lankans gathered on the streets, protesting the lack of essentials such as fuel and medicines. Amid an economy lurching from crisis to crisis, chaotic resignations ensued, a sovereign debt default was declared for the first time and bailout discussions were finally initiated with the International Monetary Fund (IMF). The IMF’s second staff-level review, which concluded in March 2024, deemed that recent policy measures had yielded ‘good progress’. While many would agree that economic conditions are better today than they were previously, macroeconomic stability and accompanying signs of economic growth are not a source of immediate comfort to the many who have lost jobs, had their incomes shrink and experienced an abrupt decline in living standards. T...
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Fifty years of observing ups and downs in Bangladesh’s economic
23Apr mmBy Michael SmithNo Comments
Asia

Fifty years of observing ups and downs in Bangladesh’s economic

When I used to work for the World Bank, many newcomers at the Dhaka office, usually from the headquarters, would ask for reference books to read up on Bangladesh. They would look for a publication covering the body of research on social science, which I often struggled to find even though there are many brilliant writings on the subject by some of the most eminent social scientists, Bangladeshis and non-Bangladeshis alike. The recently published Fifty Years of Bangladesh: Economy, Politics, Society and Culture, edited by Professors Rounaq Jahan and Rehman Sobhan, is exactly the intellectual feed needed not only by those seeking to dive deep into Bangladesh's socio-economic landscape, but also by those who already know it but want contemporary perspectives on how the nation evolved in i...
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US Economic Growth Is Up; Later Fed Rate Cuts
22Apr mmBy Joe RodriguezNo Comments
Asia

US Economic Growth Is Up; Later Fed Rate Cuts

The US economy powered ahead in the first quarter, as strong hiring activity and gradually waning inflationary pressures boosted consumer spending, keeping growth on solid footing. In our view, much of that strength will last, supported by changing demographic trends, leading us to increase our 2024 full-year GDP growth forecast to 1.5% in real, or inflation-adjusted, GDP terms.   Robust economic activity has caused inflation to cool more slowly, though we still expect price pressures to ease as the year progresses. But the process will likely be slower than previously forecast, and that will likely affect the path of Federal Reserve policy—including rate cuts. We now expect policy rates to stay where they are for several months, before cuts eventually start late this year. ...
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