China

PwC, a ‘Big 4’ auditing company, is apparently prepared for a six-month suspension in China.
22Aug By Online DeskNo Comments
China, World

PwC, a ‘Big 4’ auditing company, is apparently prepared for a six-month suspension in China.

Beijing is reportedly considering a huge fine on PwC in addition to the business ban. The fine could go as high as 1 billion yuan ($140 million), Bloomberg reported in May, which would be the largest fine imposed on an auditing firm in China.  Regulators are scrutinizing PwC for its role in auditing China Evergrande Group, the embattled property developer that has become the poster child of China’s property crisis. In March, authorities accused Evergrande of inflating its revenue by almost $80 billion in 2019 and 2020.  Evergrande defaulted on its debts in 2021, helping to trigger China’s still-ongoing real estate crisis, which is continuing to drag down the economy. A Hong Kong court ordered Evergrande’s liquidation earlier this yea...
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21Aug By Online DeskNo Comments
China, Market, World

Chinese Ambassador to The Bahamas Yan Jiarong Holds a Dialogue with Bahamian Business Leaders

On 20th August, 2024, Ms. Yan Jiarong, Chinese Ambassador to The Bahamas held a dialogue with Bahamian business leaders. Mr. Ingraham, Chairman of the Bahamas Chamber of Commerce and Employers Confederation, Mr. Peng Jing, Chief of Economic and Commercial Affairs of the Embassy attended the dialogue. Yan briefed achievements of Chinese modernization, highlighting that China’s economy has gained a firm footing and maintained a positive momentum, and the Third Plenary Session of the 20th CPC Central Committee has conveyed a clear message of furthering high-standard opening up, which will bring new opportunities for China-Bahamas economic and trade cooperation. The two sides had in-depth exchanges on strengthening cooperation in trade, tourism, agriculture, culture, etc.  ...
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21Aug By Online DeskNo Comments
Asia, China, Market

The “Sovietization Trap”: The Reason for China’s Economic Troubles

As China’s economic growth slows, many are noting similarities between China and Japan before and after the collapse of the latter’s bubble economy. Will China really follow in Japan’s footsteps? Wu Junhua of the Japan Research Institute disagrees, suggesting that the biggest risk facing China’s economy is “Sovietization,” not “Japanization.” “Sovietization” Has Hindered China’s Development At a time of growing concerns about China’s economic prospects, voices are escalating about the possible “Japanization” of China’s economy. Although many of the problems facing China today, such as an aging population, deteriorating housing market, and accumulated debt, are quite like those faced by Japan before and after the collapse of the bubble economy, the two countries have very different p...
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US and China form crisis committee to strengthen financial resiliency.
21Aug By Online DeskNo Comments
China, World

US and China form crisis committee to strengthen financial resiliency.

The U.S. Treasury Department and People’s Bank of China (PBOC) have unveiled plans to form a special contact group to manage potential financial stress events. This resolution follows the fifth round of talks in the Financial Working Group, aiming to encourage mutual financial resilience amid increasing interdependence of the two economies. The new contact group’s mission is to handle potential fiscal crises, playing an integral role in decreasing global financial instability. This plan heralds a significant move in U.S.-China economic cooperation. Following U.S. Treasury Secretary Janet Yellen’s visit to China, the two nations compiled a catalog of critical contacts focused on preserving financial stability. This effort aims to enhance coordination in financial crises times and bet...
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20Aug By Online DeskNo Comments
Asia, China, Market

China July 2024 Economy: Consumption and Trade Surge Amid Sluggish Industrial Growth

China’s National Bureau of Statistics (NBS) has released the economic data for July 2024, providing a detailed view of the country’s industrial, retail, and investment performance. The figures reveal a mixed economic landscape, with retail sales exceeding expectations, yet industrial production falling short of forecasts. The continued expansion of consumer spending indicates growing domestic demand, despite persistent challenges in the real estate sector and fixed asset investments. As the Chinese government focuses on boosting domestic demand, the challenge of maintaining economic momentum amidst structural adjustments and external uncertainties remains a significant concern moving forward. Industrial growth slows but maintains a steady pace In July, China’s industrial sector e...
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Plummeting iron ore prices on the basis of China’s property crisis might wipe out $3 billion from the government budget.
19Aug By Online DeskNo Comments
Asia, China, World

Plummeting iron ore prices on the basis of China’s property crisis might wipe out $3 billion from the government budget.

Plummeting iron ore prices could cost the federal government $3 billion in revenue, which is likely to push the budget further into deficit this financial year. China's property market is in a precarious state, which has seen demand for iron ore — the key component for making steel – drop significantly. Australia has done exceptionally well riding the boom in the Chinese economy. But the political and economic uncertainty surrounding the world's two biggest economies — the US and China — points to tougher times ahead. But that decline has accelerated in recent weeks, with prices now sitting around $82 per tonne, which is below the price the Treasury had anticipated at this point. It had forecast the iron ore price gradually declining to settle at $60 per tonne by the first qua...
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Chinese steel giant warns of “long, cold winter”
16Aug By Online DeskNo Comments
China, World

Chinese steel giant warns of “long, cold winter”

The statement by China’s top steelmaking firm, which accounts for 7 percent of global output, that the industry faces a severe crisis, underscores the extent of the slowdown in the Chinese economy and its global significance. Outlining the company’s half-year position on Wednesday, Hu Vangming, chair of China Baowu Steel Group, said the “winter” would be “longer, colder and more difficult than we expected.” In comments to Bloomberg, he said in the process of resolving it, cash was more important than profit and “financial departments at all levels should pay more attention to the security of the company’s funding.” His remarks were echoed by Hou Augui, the general manager at the state-owned firm, who said “the current situation in the steel industry is more severe that the downtu...
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Deep in economic woes, China faces rise in blue-collar workers-led unrest
16Aug mmBy Joe RodriguezNo Comments
China

Deep in economic woes, China faces rise in blue-collar workers-led unrest

Facing economic headwinds with almost all sectors, including property and manufacturing showing no signs of turnaround even in near future, China is now grappling with unrest among blue-collar workers as social safety nets and compensations that helped them overcome their day, today challenges, have started dissipating amidst harsh and discriminatory labour landscape in the East Asian country.  Subdued by a continued downturn in the property sector, which saw investment falling 10.1% in the first half of 2024 from a year earlier and low household demand, China’s economic growth slowed to 4.7% in the second quarter, from 5.3% in the first quarter of this year.  On the other hand, China’s Caixin/S&P Global manufacturing PMI (Purchasing Managers’ Index) sank to 49.8 i...
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15Aug By Online DeskNo Comments
Asia, China, Market

China’s Economy at a Glance – August 2024

Overview There was nothing in China’s latest data release to fundamentally change our views around its economy – authorities continue to prioritise the supply side of the economy, which, in the face of subdued domestic demand, is expanding export volumes and leading to growing trade tensions with other major economies. Our forecasts are unchanged – we see growth at 4.7% this year (below the full year target) and easing further to 4.6% in 2025 and 4.4% in 2026. Growth in industrial production has trended lower in recent months, down to 5.1% yoy in July (compared with 5.3% yoy in June and 6.7% yoy in April). While conditions in construction related sectors remains weak, output in the electronics sector remains comparatively strong. There was a noticeable slowing in real investment...
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Baowu Steel warns of a catastrophic catastrophe in China’s steel sector.
15Aug By Online DeskNo Comments
China, World

Baowu Steel warns of a catastrophic catastrophe in China’s steel sector.

China’s steel industry is facing a crisis more serious than the recessions of 2008 and 2015. The world’s largest steelmaker, China Baowu Steel Group, warned of this, Bloomberg reports. The crisis is likely to be longer and more severe than the steel sector expected, said Hu Wangming, chairman of Baowu Steel Group, at the company’s semi-annual meeting. The group produces about 7% of the world’s steel, and this message from it is likely to cause concern among competitors in Asia, Europe and North America who are trying to cope with the new wave of Chinese exports. Baowu Steel will focus on minimizing risks. The company recommends that financial departments at all levels pay more attention to the security of financing and strengthening control, including overdue payments and the d...
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