Tag: China

Hong Kong legislation: China’s rich skirting ‘the financial hub’ to seek asset safety elsewhere
29May mmBy Joe RodriguezNo Comments
China, Singapore

Hong Kong legislation: China’s rich skirting ‘the financial hub’ to seek asset safety elsewhere

Wealthy Chinese are expected to park fewer funds in Hong Kong on worries that Beijing's proposed national security law for the city could allow mainland authorities to track and seize their wealth, bankers and different business sources.More than half of Hong Kong's estimated private wealth of over US$1 trillion is from mainland individuals who have parked money there, according to bankers.The city has benefited from its proximity to China and separate legal system, but there are now worries about it losing its edge as a global financial centre due to capital and talent flight.Interviews with half a dozen bankers and headhunters have revealed that some Chinese clients are looking for other hubs as their main offshore wealth base with Singapore, Switzerland and London high on the list.One C...
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Oil prices falls on U.S.-China tensions over Hong Kong
27May mmBy Mike TrudellNo Comments
Asia, China, Market

Oil prices falls on U.S.-China tensions over Hong Kong

Soon after U.S President Donald Trump said he was working on a strong response to China’s proposed security law in Hong Kong, oil prices took a drastic downturn on Wednesday.Brent crude fell 47 cents, or 1.3%, to $35.70 a barrel by 1106 GMT and U.S. West Texas Intermediate (WTI) crude was down 32 cents, or almost 1%, at $34.03. “As much as oil fundamentals are improving, there are still several flies in the bullish ointment. They include the latest uptick in U.S.-China tensions,” said Stephen Brennock of oil broker PVM.“The threat of a fresh U.S.-China trade war is no longer just a tail risk and could spell disaster for risk assets,” he added.Gloomy forecasts over the economic impact of the pandemic also weighed on crude prices.The euro zone economy is likely to shrink between 8% and 12% t...
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China will strengthen its policy, continue to lower lending rates: Central Bank Governor
26May mmBy Michael SmithNo Comments
Asia, China, Market

China will strengthen its policy, continue to lower lending rates: Central Bank Governor

Central bank Governor Yi Gang on Tuesday said that China will strengthen its economic policy and continue efforts to lower interest rates on loans, reinforcing expectations of further support measures to revive an economy ravaged by the coronavirus pandemic.In an interview published by the central bank, Yi said China's economic fundamentals are unchanged despite many uncertainties and reiterated that its current stance on monetary policy will be more flexible.“The People's Bank of China will use various monetary policy tools to maintain sufficient liquidity, and keep the annual growth rate of M2 money supply and social financing significantly higher than last year,” Yi said.“Since the virus outbreak, the central bank's policy measures, including bank reserve requirement cuts, relending, re...
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Cashback deals and gifts might presage damaging price war: China’s auto experts
25May mmBy Mike TrudellNo Comments
China, Market, Singapore

Cashback deals and gifts might presage damaging price war: China’s auto experts

After spending the whole of February and March in lockdown, China's auto dealerships are now offering attractive cashback offers, up to 10 free oil changes, and generous prepaid gasoline cards to woo customers out and about.And even though they are getting the job done, the industry remains worried that any momentum from demand that was locked up in February and March is expected to diminish by the end of May.After that, the outlook for consumer spending is bleak as the coronavirus pandemic continues to hammer the global economy, including China's exports.Moreover, industry executives believe the generous deals currently being offered to customers are priming the market for a return to price wars.Feng Xingya, general manager of state-owned automaker GAC which has partnerships with Toyota a...
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As overseas markets ‘lockdown’, China exporters look inwards
25May mmBy Mike TrudellNo Comments
China, Market, Singapore

As overseas markets ‘lockdown’, China exporters look inwards

China exporters are now left in a crisis as the coronavirus hits its trading partners worldwide leading to cancelled shipments, returned goods and a dearth of new orders - accelerating a long-standing push towards domestic consumption.The world's second-largest economy is stirring back to life after virus cases dwindled from a peak in February, when activity came to a near-halt. But as China’s economy started to recover, lockdowns and restrictions in other countries has forced exporters to focus on domestic markets.Chinese online marketplace Taobao said the number of foreign trading companies opening stores on its domestic-focused platform spiked 160 percent from February to May.And policymakers - who have sought for years to wean the country off cheap exports and government spending in fa...
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Hong Kong’s pro-Beijing politicians say national security law good for business
23May mmBy Mike TrudellNo Comments
Singapore

Hong Kong’s pro-Beijing politicians say national security law good for business

In a bid to reduce tension in the market, Hong Kong’s pro-Beijing politicians on Saturday rubbished claims that China’s proposed national security legislation would harm the Asian financial hub’s economy, saying it would instead boost investor sentiment.The security legislation aims to tackle secession, subversion, terrorism, and foreign interference and could see mainland intelligence agencies set up bases in Hong Kong, raising fears of direct law enforcement.U.S. government officials have said the legislation would end the Chinese-ruled city’s autonomy and would be bad for both Hong Kong’s and China’s economies. They said it could jeopardize the territory’s special status in U.S. law, which has helped it maintain its position as a global financial centre.Bankers and headhunters said it c...
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22May By Desk TeamNo Comments
China

Coronavirus outbreak: Oil prices drop as China abandons target for 2020 GDP

Oil prices fell 5% on Friday after China failed to set an economic growth target for 2020, sparking concerns that the coronavirus pandemic will continue to depress fuel demand in the world's second-largest oil user.Brent crude dropped US$1.56, or 4.3%, to US$34.50 a barrel by 0323 GMT, after gaining nearly 1% on Thursday.West Texas Intermediate (WTI) crude declined by US$1.79, or 5.3%, to US$32.13 a barrel, having gained more than 1% in the last session.In a week-long meeting kicked-off by China's National People's Congress (NPC) on Friday, the government said it omitted the 2020 target, while pledging to issue 1 trillion yuan (US$140 billion) of special treasury bonds to support companies and regions hit by the pandemic.Abandoning the growth target "could be interpreted as putting less fo...
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China leaves top three foreign investors in Germany
20May By Desk TeamNo Comments
China

China leaves top three foreign investors in Germany

Official data has showed that China dropped out of the top three foreign investors in Germany for the first time in more than a decade as the Chinese government focuses on boosting the domestic economy.Germany Trade & Invest (GTAI), a government institution, said that China is now the fourth largest contributor of foreign direct investment to Germany, behind the United States, Britain and Switzerland.GTAI managing director Robert Hermann said  the drop to an economic strategy promoted by the Chinese government that focuses on stimulating the domestic economy was related to investments in infrastructure as well as in research and development.“The Chinese government regulates capital exports,” Hermann said. “It’s increasingly focused on boosting investments domestically.” The data reveal...
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China’s Airliners may not rebound for two years
20May By Desk TeamNo Comments
China

China’s Airliners may not rebound for two years

It is believed that China’s air transportation system is already experiencing a recovery from the COVID-19 epidemic. However, there is catch and the Chinese Airliners may not rebound for at least two years. The hopes were rekindled following the reviews of schedule filings that showed that Chinese airlines are adding flights back, even in some regions to as much as 70% of pre-epidemic levels.Although restoration of capacity toward pre-COVID levels is bring reported, China’s air transportation system is not likely to fully recover for at least another two years. It is based on a number of factors: pre-COVID traffic trends, current economic trends in China, and, importantly, a certain collapse of international leisure traffic, both inbound and outbound.  This long-term air service contractio...
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D Chinese tech giant Baidu to invest $70.3 million into the live-streaming sector
19May By Desk TeamNo Comments
Singapore, USA

D Chinese tech giant Baidu to invest $70.3 million into the live-streaming sector

Chinese tech giant Baidu is going to invest $70.3 million into the live-streaming sector in a bid to take on rivals Douyin, China’s version of Tiktok, and Kuaishou in that space. The move comes in the wake of the three players jostle for dominance amidst a series of tit-for-tat lawsuits, and as Baidu on Monday announced better-than-expected revenue for the March quarter, causing its U.S.-listed shares to rise 8% in extended trading.Baidu’s new investment will be spent on growing its live-streaming user base and attracting high quality content creators, according to Baidu’s vice president Shen Dou. Baidu, best known for operating a Google-like search engine, plans to boost its short video operations by sending traffic from the rest of its ecosystem to creators’ content.Haokan content will b...
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