China

China halts release of youth unemployment data amid faltering economy
3Sep mmBy Joe RodriguezNo Comments
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...
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CSRC Trying To Revitalise China’s Stock Market
25Aug mmBy Joe RodriguezNo Comments
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...
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Civil servants latest victims of China’s flailing economy, consumption and import-export hit as well
21Aug mmBy Michael SmithNo Comments
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 ...
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How China’s withdrawal from Sri Lanka’s economic crisis has given India a strategic opportunity
21Aug By Desk TeamNo Comments
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...
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The world will feel the effects of China’s lackluster reaction to its economic problems.
21Aug mmBy Michael SmithNo Comments
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…
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The Second-Largest Economy in the World, China, Is in Crisis
21Aug mmBy Joe RodriguezNo Comments
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...
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What the market is thinking: Will China really ‘go big’ on interest rate cuts?
21Aug By Desk TeamNo Comments
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...
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The CPI has urged Vice President Joe Biden to end all US support for Pakistan.
20Aug By Desk TeamNo Comments
China, USA

The CPI has urged Vice President Joe Biden to end all US support for Pakistan.

As a result of the assaults on minorities, notably Christians and their churches, the CPI pleaded on US Vice President Joe Biden on Saturday to end all financial and military assistance to Pakistan. It also called for the United Nations to step in to prevent things from becoming any worse. In light of this onslaught on Pakistan's religious minority, we urge Vice President Joe Biden to end the United States' military and financial support for Pakistan. When assisting Christians, he should remember the persecution they've faced and the destruction of their churches. Atul Kumar Anjan, national secretary of the CPI, told reporters in Patna that "the minorities, including the Christians, are in extreme trouble there." The Left leader said the United Nations "should warn Pakistan and s...
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Bank of America claims these 6 unexpected developments illustrate how dire the current state of the Chinese economy is.
19Aug mmBy Brian ThompsonNo Comments
China, USA

Bank of America claims these 6 unexpected developments illustrate how dire the current state of the Chinese economy is.

Despite predictions of a post-pandemic economic resurgence, China has seen its GDP for the second quarter fall well short of projections, and the nation has entered deflationary zone for the first time since 2021 as a result of decreasing prices. In a frantic effort to pretend everything is OK, Beijing has lowered interest rates and ceased publicizing ugly young unemployment numbers. Bank of America analyst Michael Hartnett released a research note on Friday in which he described the new China figures as "positively shocking" and warned of the increased potential of a significant credit event that would send stock prices much down and demand a coordinated international reaction. One source of "event risk," he continued, is the continuing liquidity issues for real estate giant Cou...
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<strong>Chinese Economy Slips Further</strong>
15Aug By Online DeskNo Comments
China

Chinese Economy Slips Further

Chinese Government’s efforts to revive the economy received a further setback as the economy slipped into deflation as consumer prices declined by 0.3% in July, for the first time since February 2021. This follows decline in factory gate prices and weak export and import data, which indicates that the expected pace of China's post-pandemic recovery in demand has not materialized. According to Jim Reid, a strategist at Deutsche Bank, the latest trade data suggests that the Chinese economy was being dragged down by weakness in global demand and a domestic slowdown. Reduced foreign demand for Chinese goods and geopolitical tensions has taken a toll on trade, encouraging international firms to shift investments out of the country. Weak domestic and global demand has pushed factory gate ...
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