China

Unemployment leads to activities abhorred by Chinese government
China

Unemployment leads to activities abhorred by Chinese government

The rising unemployment in China has sparked changes in the youth behaviour in the country such as growing inclination toward religion, preferences to staying with parents and indulging in betting and gambling, which do not appear in conformity with the values and ideology of the ruling China Communist Party (CCP). The Chinese youth has started flocking to temples to pray for luck amidst diminishing employment opportunities in China, which has been stuck by dual problems of sluggish post-Covid-pandemic economic recovery and real estate fuelled slowdown. According to research conducted by the Chinese travel company Qunar, the visits by young worshippers to Yonghe Temple, which is popular for seeking blessings for career and financial success, have seen a sharp increase. It recorded 5...
Property crisis hurts average Chinese population
China

Property crisis hurts average Chinese population

The ongoing real estate crisis in China is set to affect economic growth and it has already started hurting the average Chinese population. They are incurring huge losses due to loan repayments and non-payment to workers and small businessmen by property giants. China, where protests are a rare sight, is seeing distressed homebuyers and investors agitating at government offices.12 The middle-class population in China has refused to pay loans on unfinished homes that are a result of a decade-long real estate bubble. Homeowners in Hunan Province said their lives have become "extremely difficult" and they could not afford the monthly mortgage. “We have to take risks out of desperation and follow the path of a mortgage strike,” they wrote to the local officials.3 Zhongrong International...
<strong>Chinese county offers cash to under-25 brides as birth rates fall to a record low</strong>
China

Chinese county offers cash to under-25 brides as birth rates fall to a record low

In yet another move in a series of steps taken to boost fertility rates in China, a county in the country is offering couples a reward of 1,000 yuan (USD 137), if the bride is aged 25 years or younger. The minimum legal age for marriage in China is 22 years for men and 20 years for women. The notice in this regard was published on Changshan county’s official Wechat account earlier in August, stating that the reward was to promote “age-appropriate marriage and childbearing” for first marriages. One of the parties, however, must have their household registration in Changshan to qualify for the reward. The notice also mentioned other subsidies, including 5,000 yuan (USD 688) and 10,000 yuan (USD 1,377) each year for second and third children born in the county up until the age of three an...
China halts release of youth unemployment data amid faltering economy
Asia, China

China halts release of youth unemployment data amid faltering economy

After the number of its unemployed youth went on increasing for six consecutive months, the Chinese government suspended the release of unemployment data in August. The share of unemployed people between 16 and 24 years of age in urban areas rose every month of 2023, reaching a whopping 21.3 percent in June. This is the highest recorded figure since the data was first published in 2018. No timeline has been announced for the suspension. Explaining the move, Fu Linghui, a National Bureau of Statistics (NBS) spokesman, said the surveys used to collect the data needed to be improved and optimised. There is also a debate about whether students seeking employment before graduation should be included in labour force surveys and statistics. Many, however, opine that these are just excuses and...
CSRC Trying To Revitalise China’s Stock Market
China, Market

CSRC Trying To Revitalise China’s Stock Market

The China Securities Regulatory Commission (CSRC) has introduced a series of measures on August 18 aimed at revitalizing China's stock market, in response to escalating global concerns about the sluggish Chinese economy and its far- reaching consequences. The reform strategies put forth by the CSRC encompass several pivotal actions, including the reduction of handling fees for securities transactions and concurrent lowering of commission rates for securities firms. Moreover, they involve expanding the domain of margin financing and securities lending, refining the mechanism for shareholding reduction, enhancing transaction surveillance for smoother processes, and investigating the potential for extended trading hours in both the A-share market and the exchange bond market. Additi...
Civil servants latest victims of China’s flailing economy, consumption and import-export hit as well
China

Civil servants latest victims of China’s flailing economy, consumption and import-export hit as well

The Chinese Communist Party recently pledged to boost workers ’incomes and revive household consumption, but this policy goal is facing a massive complication - the country’s slowing economy. To grapple with the issue, China’s top graft-busting watchdog vowed to eliminate “Western-style hedonism” in the $57 trillion financial sector. The result has been troublesome. To deal with the fund shortage, financial firms and regulators have cut salaries and bonuses of their employees. Some hospitals, schools and private businesses have also followed suit. But this time, many Chinese are facing a new source of economic hardship – steep cuts in salaries of the country’s millions of civil servants. For instance, in the city of Suzhou, popular for its prosperity, the year-end bonuses of public ...
How China’s withdrawal from Sri Lanka’s economic crisis has given India a strategic opportunity
China

How China’s withdrawal from Sri Lanka’s economic crisis has given India a strategic opportunity

Despite China's proximity to Sri Lanka, unlike Pakistan, Beijing sat on the sidelines while Colombo's economy collapsed last year, giving New Delhi an advantageous position. Beijing and Colombo's longstanding political and economic connections have grown closer in recent years because to China's remarkable development. Despite its physical separation from the Indian subcontinent, China has been using its vast financial resources to challenge India's regional dominance. Leaving the door open for New Delhi when Colombo had its first sovereign default in April 2022 was a perplexing decision. Debt relief was another area it avoided. Because of its location and ability to control shipping routes, Sri Lanka was formerly considered a potential "Singapore of the East," a reference to China's "Mal...
The world will feel the effects of China’s lackluster reaction to its economic problems.
China

The world will feel the effects of China’s lackluster reaction to its economic problems.

Critical sectors of the Chinese economy, including real estate and exports, continue to send up warning flags, as seen by economic statistics. But so far, the response from Chinese politicians and bureaucrats has been lackluster and has had little effect. The official response has been more concerned with managing the story than with really doing something about it. After a brief lull after the Politburo meeting, outflows from Chinese markets picked up speed in August. What must happen to regain investors' trust? Predictions for 2023 included…
The Second-Largest Economy in the World, China, Is in Crisis
China

The Second-Largest Economy in the World, China, Is in Crisis

A leading American financial newspaper has said that China's economy, the world's second biggest, is in severe crisis and that the country's "broken" model of development during the last four decades is visible even in outlying regions.According to a large Sunday report in The Wall Street Journal, analysts are more pessimistic about China's economic prospects because of unfavorable demographics and a growing gulf between the two countries, which threatens to dampen international investment and trade. It speculated that the current economic downturn may signal the end of an entire era. Currently, the (economic) model has been compromised, the financial daily said. The Wall Street Journal cited Adam Tooze, a history professor at Columbia University who specializes in economic crise...
What the market is thinking: Will China really ‘go big’ on interest rate cuts?
China, USA

What the market is thinking: Will China really ‘go big’ on interest rate cuts?

Jamie McGeever, the writer for the financial markets, previews the day ahead in Asia. With uneasiness and fear over China sweeping financial markets, the People's Bank of China is likely to slash interest rates on Monday, but it may have to throw caution to the wind and 'go big' to calm investors. Investors will be paying attention to three policy decisions from Asian central banks this week, including China's. On Thursday, the Bank of Korea and the Bank of Indonesia are both likely to maintain their current interest rate policies. Along with the annual Jackson Hole Symposium, where Fed Chair Jerome Powell will talk on Friday, the PBOC's decision and broader events concerning China's markets and economy will occupy investors' attention this week. This week in South Africa, Pre...