China Archives - Page 7 of 63

As Beijing’s stimulus promises seem to fall short of expectations, China equities lead Asia’s losses.

13Dec

By Michael SmithNo Comments

China, Market

As Beijing’s stimulus promises seem to fall short of expectations, China equities lead Asia’s losses.

China stocks led losses in Asia Friday as Beijing’s affirmation of its recent policy shifts and plans to boost growth, following a high-profile meeting Thursday, appeared to have fallen short of investors’ expectations. Hong Kong’s Hang Seng index fell 1.83% in its final hour of trade, while mainland China’s CSI 300 lost 2.37% and ended at 3,933.18. Most other Asia-Pacific markets also fell, tracking Wall Street declines following a hotter-than-expected producer price inflation reading. The outlier was South Korea’s Kospi, which gained 0.5% to close at 2,494.46, marking a four day winning streak, while the small-cap Kosdaq rose 1.52% to 693.73, also notching four straight winning days. Internet firm Kakao gained over 5%, with many of its subsidiaries seeing huge gains. Shares ...

As investors anticipate a crucial policy meeting in China, Asia-Pacific markets close mixed.

12Dec

By Michael SmithNo Comments

Asia, China, Market

As investors anticipate a crucial policy meeting in China, Asia-Pacific markets close mixed.

Asia-Pacific markets were mixed Wednesday, after major Wall Street benchmarks declined ahead of key inflation data that could influence the Federal Reserve’s interest rate decision. China is reportedly kicking off its annual economic work conference on Wednesday to outline its economic policies and growth targets for next year. Hong Kong’s Hang Seng index reversed gains to trade 0.76% lower as of its final hour, while mainland China’s CSI 300 index was 0.17% down and closed at 3,988.83. In South Korea, the blue-chip Kospijumped 1.02% and finished at 2,442.51 and the small-cap Kosdaq rose 2.17% to 675.92, a day after the country’s parliament passed a downsized budget of 673.3 trillion won ($470.60 billion) for 2025 late Tuesday. This is reportedly the first time that a spending...

When China promises “more proactive” economic measures, Hong Kong equities rise by about 3%.

9Dec

By Michael SmithNo Comments

China, Market

When China promises “more proactive” economic measures, Hong Kong equities rise by about 3%.

Hong Kong’s Hang Seng indexjumped nearly 3% in its final hour of trade, after china vowed “more proactive” fiscal measures and “moderately” looser monetary policy next year to boost domestic consumption. The announcement came from an official readout of a key policy meeting that outlined upcoming economic priorities. Prior to the news, mainland China’s CSI 300 index fell 0.17% to close at 3,966.57 after China’s consumer price growth came in below expectations in November. CPI rose 0.2% year on year, down from a 0.3% increase in October, according to the National Bureau of Statistics on Monday. Economists from Reuters forecast price growth of 0.5%. Elsewhere in the Asia-Pacific, markets were mixed as traders assessed revised economic growth data from Japan and South Korea’s pol...

In 2025, Chinese economic stimulus will somewhat offset US tariffs.

4Dec

By Joe RodriguezNo Comments

China, Market

In 2025, Chinese economic stimulus will somewhat offset US tariffs.

China’s economy is projected by Goldman Sachs Research to grow at a slower pace in 2025, as the government’s stimulus efforts partially offset the impact of potential tariffs from the US. Real GDP growth is predicted to decelerate to 4.5% next year from 4.9% in 2024. Goldman Sachs Research’s forecast assumes a 20 percentage-point increase in the effective tariff rate imposed by the incoming Trump administration on Chinese goods, which would weigh on China’s real GDP by 0.7 percentage point in 2025. The forecast also assumes that Chinese policymakers will introduce fresh stimulus to blunt the impact of tariffs. “The choice in front of Chinese policymakers is simple: either to provide a large dose of policy offset or to accept a notably lower headline real GDP growth,” Chief China Eco...

A new dollar bloc: Reglobalization in the face of United States-China hostilities

3Dec

By Online DeskNo Comments

Asia, China, Market, USA

A new dollar bloc: Reglobalization in the face of United States-China hostilities

The fragmenting of free trade and the rise of industrial policy have resulted in the nascent formation of a trade, finance and currency bloc organized around American economic and security interests. Although not formalized, the democracies in the West and their primary trading partners in Asia, excluding China, appear to be coalescing around mutual economic and security interests in a de facto dollar bloc, with the U.S. Federal Reserve as the lender of last resort. A trading bloc of democracies would include more than 56% of the world’s gross domestic product. China, by contrast, has a 16.8% share of world GDP, while India has 3.4% and Russia 1.9%. In some respects, this dollar bloc evolved out of the crucible of the 2008−09 financial crisis and lessons learned around supply cha...

A crisis in Taiwan is a problem in China.

2Dec

By Joe RodriguezNo Comments

China, World

A crisis in Taiwan is a problem in China.

The European Union needs a China contingency. Government and corporate decision-makers may be preparing for a possible Chinese military attack on Taiwan, but they must also focus on how a Taiwan crisis will impact China and, consequently, the EU’s economic security. Largely on account of Taiwan’s prominent position in the global semiconductor industry, a Chinese attack on the island will inflict trillions of dollars in costs on the global economy. But a Taiwan crisis also threatens to disrupt China-centered production and supply chains for green technologies, such as electric vehicles, solar panels and wind turbines, as well as create unprecedented geopolitical risk for European companies in China. The economic costs of a limited conflictJapanese observers of East Asian geopolitics ...

China’s EV domination is humiliated by Europe’s battery issue.

30Nov

By Joe RodriguezNo Comments

Asia, China

China’s EV domination is humiliated by Europe’s battery issue.

While many businesses worldwide are wringing their hands about Donald Trump’s plans for a “beautiful” tariff war – targeting Canada, Mexico and China on his first day back in the Oval Office – my attention was focused on the sub-Arctic town of Skelleftea in Sweden and the collapse of Northvolt, Europe’s electric-vehicle battery champion. Richard Milne at the Financial Times called Northvolt’s resort to Chapter 11 bankruptcy protection, with US$5.8 billion of debts and just US$30 million cash in its coffers, a “Nordic noir thriller”. The collapse is nothing less than a dagger thrust into the heart of Europe’s future as a global automotive industry leader. Volkswagen has written down most of its 21 per cent stake in the venture. Goldman Sachs is writing off US$896 million in th...

29Nov

By Brian ThompsonNo Comments

Asia, China, Market

Asia in denial

I saw nothing but denial in my recent post-US election tour of Asia, with stops in Hong Kong, Shenzhen, Beijing, and Singapore. Taking a cue from surging global equity markets, Asians are making every effort to wish away problems at home and abroad. Nowhere is this more evident than in China. President Xi Jinping has long stressed his preference for the “good stories of China” (bit.ly/3Z8EI75). Amid the most serious Chinese economic slowdown since the 1970s, government attempts to put a positive spin (bit.ly/3Ozky0R) on the country’s outlook have intensified. An improvement in equity-market sentiment (bit.ly/4fL6ZaO) — by October 8, the CSI 300 was 35% above its low on September 13 — was the first talking point in all my discussions. Never mind that this rebound, which has si...

The diplomatic ties between China and Pakistan have reached a low point.

28Nov

By Joe RodriguezNo Comments

Asia, China

The diplomatic ties between China and Pakistan have reached a low point.

As if Pakistan’s government wasn’t under pressure enough – with thousands of protesters on the streets and the capital Islamabad in lockdown amid calls to release former prime minister Imran Khan – relations with neighbouring China are also going from bad to worse. Beijing’s growing anger over the safety of its citizens in Pakistan has been illustrated by a surprising diplomatic spat. “It is unacceptable for us to be attacked twice in only six months,” declared China’s ambassador in Islamabad Jiang Zaidong in an unusually direct response to comments made by a senior Pakistan politician seen to be downplaying the risk. “President Xi [Jinping] cares about Chinese people’s security and puts people’s lives first,” Jiang went on to say. “He especially cares about the security of t...

28Nov

By Joe RodriguezNo Comments

Asia, China, World

The diplomatic ties between China and Pakistan have reached a low point.

As if Pakistan’s government wasn’t under pressure enough – with thousands of protesters on the streets and the capital Islamabad in lockdown amid calls to release former prime minister Imran Khan – relations with neighbouring China are also going from bad to worse. Beijing’s growing anger over the safety of its citizens in Pakistan has been illustrated by a surprising diplomatic spat. “It is unacceptable for us to be attacked twice in only six months,” declared China’s ambassador in Islamabad Jiang Zaidong in an unusually direct response to comments made by a senior Pakistan politician seen to be downplaying the risk. “President Xi [Jinping] cares about Chinese people’s security and puts people’s lives first,” Jiang went on to say. “He especially cares about the security of t...