Market Archives - Page 21 of 45

12Jul

By Online DeskNo Comments

Asia, China, Market

China: Unbalanced economic resilience at home, rising trade tensions and conflict risks abroad

Event China’s economic activity continues to show signs of resilience but with discrepancies among growth drivers. Besides, China is facing rising external risks, from trade to conflicts in Asia. Impact The Chinese economy grew by 5.3% YoY in the first quarter of 2024. In an upward revision from the IMF, it is expected that the country’s GDP growth will reach 5% this year (i.e. slightly less than +5.2% in 2023) while a deceleration to +4.5% in 2025 is still forecast, pursuing the structural economic slowdown. Industrial production, investments and particularly exports tend to support growth. Nevertheless, domestic demand continues to be relatively weak given the households’ confidence crisis – exacerbated by high youth unemployment – deleveraging local governments and a continuin...

12Jul

By Online DeskNo Comments

Asia, China, Market

China: Unbalanced economic resilience at home, rising trade tensions and conflict risks abroad

Event China’s economic activity continues to show signs of resilience but with discrepancies among growth drivers. Besides, China is facing rising external risks, from trade to conflicts in Asia. Impact The Chinese economy grew by 5.3% YoY in the first quarter of 2024. In an upward revision from the IMF, it is expected that the country’s GDP growth will reach 5% this year (i.e. slightly less than +5.2% in 2023) while a deceleration to +4.5% in 2025 is still forecast, pursuing the structural economic slowdown. Industrial production, investments and particularly exports tend to support growth. Nevertheless, domestic demand continues to be relatively weak given the households’ confidence crisis – exacerbated by high youth unemployment – deleveraging local governments and a continuin...

12Jul

By Online DeskNo Comments

Market, USA, World

US inflation cools – plus other economics stories to read this week

1. US inflation cools, raising hopes Price increases in the US slowed significantly in June, raising hopes that the world's largest economy is moving past the high inflation triggered by the COVID-19 pandemic.The Labor Department's Bureau of Statistics reported a 3% rise in prices over the year to June, the slowest rate in a year, driven by lower petrol prices and moderating rents, Reuters reports. However, food prices and shelter costs both rose 0.2% in June, while grocery prices are up 1.1% and housing costs by 5.2% compared to the month before. This marks the third consecutive month of declining inflation, lessening financial pressures on households and leading analysts to predict the Federal Reserve could lower interest rates as early as September. "Barring rogue...

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...

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...

<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...

1Jul

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Asia, Market

Air India to set up South Asia’s largest Flying Training Organisation (FTO) at Amravati

MUMBAI: Tata Group-run Air India said on Monday that it is setting up South Asia’s largest Flying Training Organisation (FTO) at Amravati in Maharashtra as part of an initiative by the Maharashtra Airport Development Company (MADC). The DGCA-licensed FTO at Amravati’s Belora airport will be operational by Q1 FY26 and will target to graduate 180 commercial pilots every year, the airline said. The Air India FTO will have 31 single-engine aircraft and 3 twin-engine aircraft for training. Air India has been awarded a tender by the MADC to establish and operate the FTO for a period of 30 years. Campbell Wilson, MD & CEO, Air India, said, “The FTO at Amravati will be a significant step towards making Indian aviation more self-reliant and offering more opportunities to t...

30Jun

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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

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Asia, Market, World

Global economic outlook: Charting different courses

The pandemic was a common, global shock for all economies that led to very synchronized outcomes. Nearly all economies experienced deep recessions and subsequent strong recoveries because of pent-up demand and policy stimulus. Associated with that, nearly all economies had unexpected surges in inflation, which resulted in aggressive rate hiking cycles. As the world shifts further away from the pandemic shock, there starts to be a desynchronization and more variation in economic growth, inflation and monetary policy, said Rob Subbaraman, Nomura’s Head of Global Macro Research. There are many megatrends that are unfolding, such as artificial intelligence, geopolitical rifts, climate change, demographic change, elections in major economies and high and still-rising public debt, so it is i...

30Jun

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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...