Asia

1Sep By Online DeskNo Comments
Asia

Is China’s economy a ‘ticking time bomb’?

The past six months has brought a stream of bad news for China's economy: slow growth, record youth unemployment, low foreign investment, weak exports and currency, and a property sector in crisis. US President Joe Biden described the world's second-largest economy as "a ticking time bomb", predicting growing discontent in the country. China's leader Xi Jinping hit back, defending the "strong resilience, tremendous potential and great vitality" of the economy. So who is right - Mr Biden or Mr Xi? As is often the case, the answer probably lies somewhere in between. ADVERTISEMENT While the economy is unlikely to implode any time soon, China faces huge, deep-rooted challenges. A property crisis and poorer households Central to China's economic problems is its property ma...
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The Fall of China Evergrande and the Career of Hui Ka Yan
31Aug mmBy Mike TrudellNo Comments
Asia

The Fall of China Evergrande and the Career of Hui Ka Yan

Hui Ka Yan has had one of the most amazing careers in modern Chinese history, and his life is the stuff of legends. The huge boom in China's real estate market has burst, though, and the good times are gone. Hui, a former worker in the steel industry who hails from a small town, rose to become the wealthiest man in China by amassing a massive real estate empire. Borrowing money to purchase property, selling houses there before construction began, and using the proceeds to pay back his loan providers and fund future real estate ventures was his first strategy. Beginning in the mid-1990s and continuing for the next two decades as property prices in China skyrocketed, this strategy generated massive profits. This resulted in massive wealth and power for Hui. Evergrande's debt caused...
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ASIA MORNING BID China PMIs cap off a rough month
31Aug By Online DeskNo Comments
Asia

ASIA MORNING BID China PMIs cap off a rough month

Financial markets journalist Jamie McGeever previews the day ahead in Asian markets. On Thursday, a slew of important economic statistics from Asia will be released, including the latest official Chinese purchasing managers index surveys, which might have a major impact on the course of the region's markets in the next week. Markets, particularly currencies, might be influenced by data such as India's GDP for the second quarter, Japan's retail sales and industrial output, Hong Kong's retail sales, Australia's credit, and South Korea's industrial production. After another 'risk on' day on Wednesday, regional markets are expected to begin higher on Thursday. Futures markets are no longer expecting a quarter-point raise before the end of the year as a result of downwardly revised U.S. ...
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To attract top personnel, Asian financial centers might benefit from expanding LGBTQ rights.
31Aug By Online DeskNo Comments
Asia

To attract top personnel, Asian financial centers might benefit from expanding LGBTQ rights.

The five-judge panel of Hong Kong's top court is now debating whether or not to accept international same-sex marriages. Their verdict, anticipated later this year, may encourage Asian financial centres like Tokyo and Singapore to write more inclusive rules to attract the varied, global talent that banks and tech companies are eager to acquire and keep. The contributions of corporations are enormous. According to Janet Ledger, CEO of Community Business, a non-profit group that promotes diversity and inclusion in enterprises throughout Asia, "they still drive the conversation in a lot of these countries where the legislators aren't." In Asia, where traditional values still dominate politics and culture, same-sex partnerships are legal only in Taiwan and Nepal. However, some nat...
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China’s Chip Rally Ignited by 5G Speculation Regarding New Huawei Phone
30Aug mmBy Joe RodriguezNo Comments
Asia

China’s Chip Rally Ignited by 5G Speculation Regarding New Huawei Phone

On Wednesday, the Chinese semiconductor industry gained almost 2.5% on speculation that Huawei's recently released Mate 60 Pro smartphone may have a 5G ready processor. If confirmed, the announcement of a domestically produced 5G chip would be good news for China's domestic semiconductor industry, which has enjoyed stock market gains of almost 8% so far this week. Without any fanfare or publicity, Huawei quietly started selling the Mate 60 Pro at lunchtime today for 6,999 yuan ($960).Huawei employees and shop clerks in Beijing and Shenzhen also reported being taken aback. The Mate 60 was touted as having the capability of making satellite calls, however the specs gave no indication of the strength of the chipset within. However, customers who were able to get their hands on th...
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While Shanghai falls further, most other major Asian markets show gains.
23Aug mmBy Michael SmithNo Comments
Asia

While Shanghai falls further, most other major Asian markets show gains.

Shanghai fell more on Wednesday as the country's massive property sector slump dragged it down, although Hong Kong, Tokyo, Sydney, and Mumbai all rose. The MSCI Asia ex-Japan share index climbed 0.7% from its nine-month low reached only two trading days earlier. Utility and steel company companies helped push Japan's Nikkei index up by 0.48 points. While stubbornly bleak manufacturing data from Japan kept mood fragile, some investors were waiting for reports from tech favorite Nvidia to see whether the sector's stratospheric valuations can survive a surge in bond rates. Factory activity in Japan fell for a third consecutive month in August, according to data released on Wednesday, providing an early indicator of the state of the global manufacturing sector. On Wednesday, the Unit...
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Sri Lanka has repaid Bangladesh $50 million.
21Aug mmBy Brian ThompsonNo Comments
Asia

Sri Lanka has repaid Bangladesh $50 million.

In spite of its current economic woes, Sri Lanka has paid back $50 million of the $200 million it borrowed from Bangladesh via a currency exchange system two years ago. Bangladesh Bank (BB) spokesman Md Mezbaul Haque confirmed the deposit of the first installment by Sri Lankan authorities on August 17, 2023. He also said that the increase in the country's foreign currency reserves was due to the sum. "We're expecting a second instalment within this month inshallah," Mr. Haque, an executive director of the central bank, said. In September of 2021, Bangladesh lent Sri Lanka $200 million from its foreign reserve to assist the struggling South Asian economy recover from an economic catastrophe. The loan's original period of a year ended in September of last year. Two separate t...
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Pakistan establishes an independent military and open-supply act court
21Aug mmBy Mike TrudellNo Comments
Asia

Pakistan establishes an independent military and open-supply act court

As of today, August 21 (IANS), a special court has been established in Islamabad by Pakistan's caretaker government to hear the crucial Cipher case against former Prime Minister Imran Khan, former Foreign Minister Shah Mehmood Qureshi, and his associates, as well as any other cases in which charges are framed under the Official Secrets Act (OSA) and the Army Act of 1952.All cases filed under the two Acts would be tried at the Judicial Complex in Islamabad, presided over by Judge Abdul Hasnat of Anti-Terrorism Court (ATC) Court Number 1. In a statement, President Arif Alvi explained that the Prime Minister's Office staff had undermined his demand and gone against his directive to return the bill to Parliament, so he had to veto two amendment bills (the Army Act Amendment Bill 2023 and t...
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India’s economic revolution revolves upon the electricity industry.
21Aug mmBy Joe RodriguezNo Comments
Asia

India’s economic revolution revolves upon the electricity industry.

In the not-too-distant future, India's economy will rise to the position of third biggest worldwide. India's electricity industry is undergoing radical change as a result of the country's rapidly increasing economic activity and population. Energy is the lifeblood of this expansion project, keeping the machine chugging forward. While India is now ranked third in overall world power consumption, it lags far behind in per capita consumption. As the new growth has brought about a steady demand of power, and as more and more Indians have begun getting access to more reliable power and continue to demand this in all spheres of life, it stands to reason that this will drive substantial growth of power consumption. The new domestic consumer sector, such as the new Indian consumer, has a re...
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Moody’s is optimistic about development but warns of sectarian strife and calls for restrictions on free speech.
19Aug mmBy Mike TrudellNo Comments
Asia

Moody’s is optimistic about development but warns of sectarian strife and calls for restrictions on free speech.

STATING that it projected India's economic growth to surpass all other G20 nations for at least the next two years and affirming its 'Baa3' sovereign rating with a stable outlook, Moody's Investors Service. Friday, however, noted that "the curtailment of civil society and political dissent, compounded by rising sectarian tensions" backed a lower rating of political risk and the strength of institutions. A downgrade is possible, according to New York-based ratings agency Moody's, which cites "an escalation of political tensions and/or a further weakening of checks and balances that would undermine India's long-term growth potential" as reasons. In general, if growth is lower than expected, the debt load will continue to climb, putting negative pressure on the sovereign's fiscal soundnes...
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