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...

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,...

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...

According to Japan-based nonprofit cooperative news agency Kyodo News, Japan and the Netherlands have decided to join the United States in restricting the shipments of high-end semiconductor technology to China.  The agreement was reached, according to Kyodo News, after the United States disclosed extensive export restrictions on some cutting-edge processors that China might use to train artificial intelligence systems and power cutting-edge military and surveillance applications. The Biden administration in October imposed export controls to limit China's ability to access advanced chips, which it says can be used to make weapons, commit human rights abuses and improve the speed and accuracy of its military logistics. It urged allies like Japan and the Netherlands to follow su...