Market

<strong>Elon Musk: China’s EV dominance a threat to local players</strong>
China, Market, World

Elon Musk: China’s EV dominance a threat to local players

Tesla maker Elon Musk has been critical of China’s rising authority in the EV market. He has called for global trade barriers in the EV market otherwise Chinese player BYD will demolish the local players. Musk’s comments are in response to “unimaginable” performance by Warren Buffett’s backed Chinese automaker BYD. BYD has surpassed Tesla as the world’s top-selling EV company in the last quarter. Tesla has been marred by slowing sales in the United States even after a price cut in 2023, while BYD’s cheaper EVs has propelled the Chinese automaker at the top spot. Musk while addressing a group of analysts accepted the competitive nature of Chinese carmaker BYD and predicted its success outside China, unless there are suitable trade barriers in place. He feels without any trade barrier...
<strong>China gets restricted Nvidia computer based intelligence chips through dim business sectors</strong>
China, Market

China gets restricted Nvidia computer based intelligence chips through dim business sectors

Despite US export controls, China’s military and research sectors can still get Nvidia’s advanced AI chip. Experts say the US has not stopped the illegal trade of these chips in China. Proof has amassed that, in spite of the US's commodity controls, China's military-related firms, research focuses and colleges can in any case get Nvidia's very good quality man-made brainpower (computer based intelligence) chip. Innovation specialists say the Biden administration has bombed such a long ways to prevent little wholesalers from exchanging and sneaking the chips into the Chinese black business sectors. The US Trade Division's Department of Industry and Security (BIS) restricted the commodity of the A100 and H100 chips to China in October 2022 and the product of the A800 and H800 chips to the n...
China’s economy experienced a dismal year. 2024 might be much more dire.
China, Market, World

China’s economy experienced a dismal year. 2024 might be much more dire.

The Chinese economy was expected to recover quickly in 2023 and resume its role as the undisputed engine of global growth. Instead, it stalled to the point where it’s being called a “drag” on world output by the International Monetary Fund (IMF), among others. Despite its many problems — a property crisis, weak spending and high youth unemployment — most economists think the world’s second largest economy will hit its official growth target of around 5% this year. But that is still below the 6%-plus annual growth averaged in the decade before the Covid pandemic, and 2024 is increasingly looking ominous, they said. The country may be staring at decades of stagnation thereafter. “The 2024 challenge for the Chinese economy will not be GDP growth — that will likely be above 4.5%,” sa...
China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability
Asia, China, Market

China’s Real Estate Crisis: A Precarious Balancing Act Threatens Economic Stability

China's real estate sector is facing a severe crisis, prompting the government to encourage financial institutions to support struggling developers burdened by massive debt. The dilemma for Beijing lies in defusing local government debt risks while propping up the real economy to sustain growth. This critical situation highlights the intricate dance between economic stability and social harmony, as the housing issue is closely tied to both. The government's recent call for support underscores the gravity of the situation, especially with major developers like China Evergrande on the verge of collapse. The future looks bleak for China’s real estate sector. Even government support may not be enough to ameliorate this crisis. 2.         China's prop...
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...
Chinese Property Market Crisis Deepens
China, Market

Chinese Property Market Crisis Deepens

A sharp fall in the shares and bonds of Country Garden, one of the China’s largest property developers, due to worries of its repayment ability, indicates a deepening crisis in China's property sector. Other high-profile debt burdened Chinese companies, including Dalian Wanda Group and state-backed Sino- Ocean have also witnessed sizable sell-offs. Chinese real estate giant KWG Property has defaulted on multiple loans. In a statement that augurs poorly for the already embattled Chinese property market, China Ever Grande, the global real estate industry’s most heavily indebted property developer, triggered the crisis in China’s real estate market. It was recently reported that its debts rose further to about USD 340 billion by the end of last year. In order to manage its swirling debts,...
Foreign Investors Lose Confidence in Chinese Market
China, Market

Foreign Investors Lose Confidence in Chinese Market

The recent crackdown on consultancy and due diligence firms, including Capvision Partners, US law firm Mintz, Deloitte and US management consultancy Bain & Co. in China has further eroded investor confidence in the Chinese economy. EU’s Chamber of Commerce and the American Chamber of Commerce in China have warned that the crackdowns would increase the uncertainty being faced by foreign companies in China. Foreign firms were already losing confidence in China as an investment destination due to its harsh Covid policy and inward looking policies. Increased interference by the Communist party in businesses was also harming China's attractiveness. Concerns among foreign investors about the sustainability of the current recovery in the Chinese economy and the increasing geopolitical ten...
Aiming To Become The Next Crypto Hub is Hong Kong
Market

Aiming To Become The Next Crypto Hub is Hong Kong

Financial firms have always flourished in Hong Kong's favorable environment. Can it work miracles for crypto companies as well? Your favorite China observer hasn't written anything insightful on the Chinese cryptocurrency scene in nearly a year. The reality is that anybody who does not reside in Asia finds it challenging to fully comprehend its business, people, and general feeling because to China's covid lockdown. I was thus taken aback to sense the pro-crypto frenzy at Hong Kong's "Web3 Festival" last week. The big news was the Hong Kong government's significant policy declaration, which expressed its intention to make the island a welcoming environment for crypto firms to come and set up shop—within reason, of course. Players from CeFi, DeFI, NFTs, Protocols, and Games all gathe...
Asia markets trade mixed as China first quarter GDP beats expectations
Asia, Market

Asia markets trade mixed as China first quarter GDP beats expectations

Asia-Pacific markets were mixed as China’s economy grew more than expected at 4.5% year-on-year, beating estimates to see growth of 4% in a Reuters poll. The onshore Chinese yuan slightly strengthened following the report. The Shanghai Composite reversed earlier losses and closed 0.23% up, while the Shenzhen Component climbed 0.04%. In Hong Kong, the Hang Seng Indexdeclined 0.77% as consumer cyclicals and technology dragged down the index. Australia’s S&P/ASX 200fell 0.29% to end the day at 7,360.2, while South Korea’s Kospi fell 0.19% to close at 2,571.09 and the Kosdaq ended the day marginally down at 909.02. Japanese markets bucked the trend in the region, with the Nikkei 225closing up 0.51% at 28,658.83, posting its eight straight day of gains and the Topix gaining 0.69% ...
Asian Stocks Fall, Nikkei Drops Amid Fears of Global Recession
Market

Asian Stocks Fall, Nikkei Drops Amid Fears of Global Recession

On Wednesday, investors were uneasy due to negative news on the US labor market. The main stock indices in Asia were under stress on Wednesday as investors fretted about the future for the world and the possibility of a recession as the US labor market showed indications of weakening. Bonds held onto gains, the dollar nursed losses, and stocks struggled to advance as investors became concerned about the US economy's prospects in response to the news. Holidays in Hong Kong and China also slowed trading around the region, which contributed to the MSCI Asia-Pacific index excluding Japan doing slightly better than flat. However, the rising yen and concerns about a US recession caused its car and energy sectors to decline, sending Japan's Nikkei share average plunging to its first ...