China Archives - Page 15 of 58

11Jul

By Online DeskNo Comments

Asia, China, Market

China’s third plenum is unlikely to significantly correct an ailing economy

China’s third plenum, taking place in Beijing from 15 to 18 July, is a once-in-every-five-years conclave of the Central Committee of the Chinese Communist Party, where a range of policies to address long-standing issues are unveiled. Historically, this event has seen announcements of major policy shifts and economic reforms. This time around, markets and China watchers hope the third plenum can answer a specific question: will sufficient growth-enhancing measures be announced to revive the Chinese economy after years of underwhelming performance? The party’s official channels have been previewing the third plenum as a platform for “comprehensive” reforms, but foreign observers and some academics are not convinced. Increasingly serious problems have been piling up fo...

<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...

10Jul

By Online DeskNo Comments

Asia, China

China Tightens Up on Bankers’ Wages

Welcome to Foreign Policy’s China Brief. The highlights this week: Executives at Chinese state banks face new pay limits, Hungarian Prime Minister Viktor Orban visits Beijing, and China’s trucking industry becomes embroiled in a cooking oil scandal. New Pay Limits Expected in Financial Sector China is planning an annual pay cap of 3 million yuan (about $413,000) for executives in the state-owned financial sector, which dominates banking in the country. Financiers’ pay has already fallen since the COVID-19 pandemic amid a general economic slowdown and a calamitous stock market. Rolling corruption investigations, meanwhile, have snatched up many staff, with more than 30 senior regulators or bankers arrested so far this year. So...

Analyzing Pakistan’s current economic strategy in light of the CPEC

9Jul

By Online DeskNo Comments

Asia, China

Analyzing Pakistan’s current economic strategy in light of the CPEC

Pakistan’s newly elected Prime Minister, Shahbaz Sharif, made his first official visit to China from June 4-8, 2024. As Pakistan is struggling with a dire economic crisis and is in urgent need of a new IMF package, the visit was not just ceremonial. The Pakistani PM hopes to leverage his country’s “higher-than-Himalayas and deeper-than-the-ocean” friendship with China for an even stronger relationship. His delegation included key cabinet ministers like finance and foreign affairs. More than 100 Pakistani business leaders joined PM Sharif on the trip, which featured a convention with Chinese enterprises. Army Chief General Asim Munir was also part of the delegation, which was justified by his position on the Special Investment Facilitation Council (SIFC), a group tasked with luring interna...

<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...

8Jul

By Online DeskNo Comments

Asia, China, Market, World

In charts: the changing picture of China’s outbound study

Disruption to the upward trend From 2010 to 2019 the number of outbound Chinese students grew at an average annual rate of 9.5%, making the country the biggest source of international students globally. However, this rapid growth was disrupted by the pandemic that emerged in 2020. The virus (and China’s subsequent restrictive policy) caused profound damage to the country’s student mobility. The number of outbound students plummeted by 36% year on year in 2020, according to a report by the Centre for China and Globalisation (CCG), a think‑tank. Although the number of outbound students has been climbing after the initial hit from the pandemic, it remains well below the potential trend that would have manifested had the pandemic not occurred. In the meantime, the picture of...

5Jul

By Online DeskNo Comments

China

The MTBE market in China fell in June as supply outweighed downstream gasoline demand.

The MTBE (Methyl Tert-Butyl Ether) market in China faced bearish sentiments and experienced a period of significant downtrend during June 2024, resulting in low prices. This decline was attributed to high operating rates of feedstock Methanol which eased the production costs and low downstream demand from gasoline impacting both the supply and demand sides of the equation. During June 2024, the MTBE prices declined by 4.1% when compared to May 2024 to settle at USD 930/ MT FOB Dalian, China amidst supply outpaces demand by the revival of idle production capacity during this timeframe. While some MTBE production facilities like Qixiang Tengda and Maoming Shihua resumed operations in June, their operating rates remain low. This indicates a cautious approach from producers despite the res...

<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...

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, 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...

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