World

29Nov mmBy Michael SmithNo Comments
Asia, World

Is Pakistan able to become independent of the US dollar?

The Pakistani rupee is expected to end the year on a historic low — as Asia’s worst-performing currency — having shed almost 20 per cent of its value against the US dollar. Even with the authorities clamping down on profiteering, smuggling and banning the imports of ‘luxury goods’, the currency isn’t expected to fare any better next year. Amid all this, one idea that has been gaining traction in policy circles, not just in Pakistan but among other regional players too, is the need to lessen the dependency on the US dollar. But what does this mean for Pakistan? And is it even doable? The buzzwordDe-dollarisation is no longer a financial buzzword; it is a strategic move by nations to diminish their reliance on the United States dollar (USD) in global trade, transactions, and reserves....
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ETFs are booming in China as investors wait for stock market declines.
29Nov mmBy Walter ParezNo Comments
China, World

ETFs are booming in China as investors wait for stock market declines.

Chinese stock investors are ploughing money into exchange-traded funds (ETFs) this year at the fastest pace on record as they choose to play a languid stock market passively and wait for it to trough. The trend has also caught on as active fund managers in China struggle to make money and as Beijing uses ETFs to support stock markets and channel funding into strategic sectors such as technology and green energy. ETFs, which are funds that typically track an index, have garnered more than 400 billion yuan ($55.97 billion) this year in what would be record annual net inflows, according to mutual fund house China Asset Management Co (ChinaAMC), which has the biggest market share in the products. "When the market falls, many investors would use ETFs to bet on a bottom," said Xu Meng,...
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Ex-PM Imran Khan is questioned in a corruption investigation by Pakistan’s top anti-graft commission.
27Nov mmBy Michael SmithNo Comments
Asia, World

Ex-PM Imran Khan is questioned in a corruption investigation by Pakistan’s top anti-graft commission.

Pakistan’s incarcerated former prime minister Imran Khan was interrogated in jail by the country’s anti-corruption watchdog in a multibillion rupee corruption case, according to a media report on Monday. A National Accountability Bureau (NAB) team visited the 71-year-old Pakistan Tehreek-e-Insaf (PTI) party chief in the Adiala Jail on Sunday, a senior official of the anti-graft watchdog told the Dawn newspaper. The former premier has been incarcerated in the high-security jail in Rawalpindi since September 26 in various cases. The NAB team interrogated Khan for over two hours in connection with the charges he faces in the GBP 190 million (Rs 50 billion) Al-Qadir Trust corruption case, the report said. The Al-Qadir Trust case is about the settlement of 190 million pounds, about Rs 50 bi...
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The disparity between India and China’s trade figures from January to October of this year increased to $15 billion.
27Nov mmBy Brian ThompsonNo Comments
China, World

The disparity between India and China’s trade figures from January to October of this year increased to $15 billion.

The magnitude of the discrepancy in the India-China official trade numbers as per data sets released separately by New Delhi and Beijing has widened further this year, amid rising instances of under-invoicing and potentially higher losses to the Indian exchequer despite efforts by tax authorities to plug loopholes. The disparity between official figures on exports to India released by China and the imports from China reported by India jumped over 20 percent to $15.47 billion during the first 10 months of 2023, as against $12.75 billion in the corresponding period last year. Under-invoicing of imported goods involves marking the stated value of imports below the actual value paid to the foreign exporter, thereby reducing the import tax outgo. The Ministry of Commerce and Industry in ...
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China must maintain and open financial channels for private companies.
27Nov mmBy Michael SmithNo Comments
China, World

China must maintain and open financial channels for private companies.

Top Chinese government departments led by the central bank said on Monday that measures needed to be stepped up to strengthen financial support for private companies, including unblocking and sustaining of funding channels. State agencies have in recent months unveiled a flurry of initiatives to support private businesses after authorities vowed to make the sector "bigger, better and stronger", in a bid to shore up an economic recovery. Private firms, which account for 60% of China's gross domestic product and 80% of urban jobs, were hurt by three years of COVID curbs and a regulatory crackdown that targeted sectors from technology to private tutoring. Efforts should be made to "unblock" financial channels such as loans, bonds and shares, said the People's Bank of China (PBOC) in...
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Property stocks plummet in China, leading the Asia market downturn, while service inflation in Japan increases.
27Nov By Online DeskNo Comments
China, World

Property stocks plummet in China, leading the Asia market downturn, while service inflation in Japan increases.

Asia-Pacific stocks fell on Monday as the Chinese market dropped due to a decline in property firms, while Japan’s service inflation surged to a 45-month high. Data showed Japan’s service PPI rose 2.3% in October to its highest level since January 2020 and more than the prior month’s reading of 2%. On Monday, China’s industrial profits continued to shrink in November, but at its slowest pace in almost a year, according to data released by the government. The world’s second largest economy will release its official factory activity figures for November on Thursday, while the Caixin survey for the same metric will be out on Friday. Australia will release its October inflation figures on Wednesday, which will offer clues to its central bank’s policy moves. India’s gross domestic ...
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Pakistan secures first IMF sanction, hopes to enhance fiscal stability with $700 million
16Nov mmBy Mike TrudellNo Comments
Asia, World

Pakistan secures first IMF sanction, hopes to enhance fiscal stability with $700 million

Pakistan has achieved a crucial milestone in its economic recovery journey, securing initial approval from the International Monetary Fund (IMF) for the release of the next loan tranche from a $3 billion bailout program. According to a Bloomberg report, the announcement came as the Washington-based lender revealed a staff-level agreement, signalling a green light for Pakistan to access a payout of approximately $700 million, contingent on approval from the IMF’s executive board. The funding is deemed essential for Pakistan to avoid defaulting on debt obligations as the government intensifies efforts to rectify economic imbalances, such as adjusting gas prices and combating the illicit dollar trade. According to Bloomberg, IMF Managing Director Kristalina Georgieva commended Pakistan...
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8Nov mmBy Brian ThompsonNo Comments
China, World

What Causes the Economic Downturn in China?

The growth of the Chinese economy over the last four decades is one of the most globally transformative events of the last few centuries. Beginning in 1979, the country has radically transformed from an agrarian economy to one dominated by service and industry, and China stands today as the world’s top trading nation. Recently, however, this “growth miracle” has shown signs of weakening. Even before the country’s COVID shutdowns, growth had begun stalling amid demographic headwinds, an emerging slowdown in the real estate sector, and a re-emergence of state-led economic policymaking. The centralization of power has fed into a worsening relationship with China’s western partners that further threatens the country’s growth prospects. China's government began to play a larger role in pri...
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US and Japan Issue Warning About New China Hacker Following “60,000 Emails Stolen”
29Sep mmBy Joe RodriguezNo Comments
Asia, China, USA, World

US and Japan Issue Warning About New China Hacker Following “60,000 Emails Stolen”

The warning came on the heels of a Washington briefing which said Chinese state-linked hackers had stolen 60,000 emails from 10 State Department accounts American and Japanese authorities have warned multinational companies about the sophisticated hacking practices of China-linked group BlackTech, in an advisory issued late on Wednesday. Authorities urged firms to review the internet routers at their subsidiaries, saying BlackTech was capable of “modifying router firmware without detection”. The warning came on the heels of a US State Department briefing in which officials told lawmakers that Chinese state-linked hackers had stolen 60,000 emails from 10 State Department accounts. The hack they were referring to was revealed in July when US officials and Microsoft said that Chi...
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Highlights of Zoo’s Food Plea Local debt crisis in China
21Sep mmBy Mike TrudellNo Comments
China, World

Highlights of Zoo’s Food Plea Local debt crisis in China

China’s provincial governments were forced to spend billions on Xi Jinping’s zero-Covid policy and have been hit hard by the country’s property woes China’s regional government debt crisis has seen one city forced to appeal for food to feed hungry animals at its municipal zoo, A Chinese wildlife conservation group made the plea for animals kept at a zoo inside the local government-run Dongshan Park in the northern province of Liaoning, the report went on.  Provincial authorities have been hit hard after spending billions of dollars on mass testing and lockdowns to enforce President Xi Jinping’s zero-Covid campaign, as well the crisis in the property market which has seen a sharp drop in land sales, depriving them of a major revenue source.
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