新闻

February 25, 2020

Coronavirus: Only a third of Chinese small businesses open as outbreak disrupts labour and logistics

A month after factories shut for the extended Lunar New Year holiday, a patchwork picture of production is emerging in China, with only 30 per cent of small businesses able to reopen due to the ongoing coronavirus epidemic.“The smaller the size of the company, the lower the rate of work resumption,” Shu Zhaohui, a senior official from the Ministry of Industry and Information Technology, told a press conference in Beijing on Tuesday.It is a far cry from the 91 per cent of large foreign-funded…
February 25, 2020

Asian banks from DBS to HSBC are bracing for bad loans to spike as coronavirus outbreak batters the region’s economies

Asian banks are bracing for a rough ride in the coming six months as the coronavirus epidemic disrupts businesses across the region, likely prompting a spike in bad loans and ultimately dealing a blow to their bottom lines.Lenders from DBS, Singapore’s biggest bank, to HSBC, the largest of three currency-issuing banks in Hong Kong, have warned in the past two weeks that they will have to set aside additional provisions for loan losses in the first quarter – a risk they say is short term and…
February 24, 2020

China’s economic powerhouse Guangdong lowers coronavirus threat level amid drive to get economy going again

China’s southern economic powerhouse of Guangdong lowered its public health emergency response to the Covid-19 epidemic on Monday, offering relief to some businesses.A Grade I alert – the highest level – had been in force for a month and the decision to lower it to a Grade II was matched by five other provinces and came amid a government push to get the country’s economy moving again.On Sunday, President Xi Jinping addressed tens of thousands of officials across the country in a rare…
February 24, 2020

Coronavirus: China likely overestimating economic recovery by leaving out hard-hit small businesses

China’s economic recovery amid the coronavirus outbreak has likely been overstated as data only covers larger companies and excludes the vast majority of the smaller workshops and manufacturers.Authorities have responded to calls from President Xi Jinping to restore China’s economic and social activity to pre-coronavirus levels by publishing a new indicator on the ratio of production that has resumed operation.On Monday, National Development and Reform Commission spokesman Cong Liang said that…
February 24, 2020

Coronavirus will have no ‘material impact’ on US-China trade deal, Treasury Secretary Steven Mnuchin says

US Treasury Secretary Steven Mnuchin said he does not expect the coronavirus outbreak to have a material impact on the phase one US-China trade deal, although that could change as more data becomes available in coming weeks.Finance officials from the world’s 20 largest economies said on Sunday they would keep a close watch on the fast-spreading coronavirus outbreak, but stopped short of identifying it as downside risk to the global economy.Fears of a coronavirus pandemic mounted even as the…
February 24, 2020

Coronavirus: Xi Jinping rings alarm on China economy as country shifts priority to maintaining growth

President Xi Jinping has rung the alarm bell on China’s economic growth as worries mount over the coronavirus’ impact on the economy, unemployment and global supply chains.Speaking on Sunday, Xi made it clear that the priority for most of the country was to get the world’s second biggest economy up and running after extensive delays.“It is unavoidable that the novel coronavirus epidemic will have a considerable impact on the economy and society,” said Xi in a lengthy televised address that was…
February 24, 2020

Coronavirus: China pledges to hit 2020 targets despite economic impact of epidemic

China has reaffirmed it can meet its economic and social development targets in 2020 despite the coronavirus epidemic, although it remains tight-lipped on what specifically those goals are.China’s top leaders decided the country’s general economic plans for 2020 at the Central Economic Work Conference last December, before signing a phase one trade deal with the United States on January 15, and the outbreak of coronavirus, which has roiled supply chains and killed close to 2,500 people in the…
February 24, 2020

China’s state pension plan needs retooling as slowdown, ageing population hit retirement pot

China’s ageing population is increasing the pressure on the state pension deficit at the same time employers are falling behind on their contributions. A deeper economic slowdown could burn a bigger hole in the retirement pot, experts say.The cumulative balance in the pool stood at about 5 trillion yuan (US$712 billion) at the end of 2019, and the employers’ contributions were expected to fall short by 417.4 billion yuan due to measures to ease their burden, vice finance minister Yu Weiping…
February 23, 2020

Coronavirus: China’s small businesses ‘still losing blood’ despite creative means of retrieving stranded workers

Every day over the past week, Sunwill human resources director Felix Luo has been busy sending long-distance coaches to neighbouring provinces to pick up employees from their hometowns to bring them back to their factory in Guangdong that produces air conditioner fans for the likes of Panasonic, Toshiba and Gree.The chartered buses, sent to the likes of Guangxi and Jiangxi, mean workers will be able to return to the production lines in five days, and not the mandatory 14 days quarantine…
February 22, 2020

Covid-19 likely to slash US$185 billion off China’s economy in January, February, says ex-IMF official

The deadly coronavirus outbreak may have cost China more than 1.3 trillion yuan (US$185 billion) in the first two months of the year because of huge dips in consumer spending and tourism, according to a former senior executive with the International Monetary Fund.Zhu Min, who was deputy managing director of the IMF from 2011 to 2016, said during an online presentation on Saturday that the Covid-19 epidemic was likely to have cost the tourism industry about 900 billion yuan in January and…
February 22, 2020

Coronavirus: China’s economy lost US$196 billion in January, February, says ex-IMF official

The deadly coronavirus outbreak may have cost China as much as 1.38 trillion yuan (US$196 billion) in the first two months of the year because of huge dips in consumer spending and tourism, according to a former senior executive with the International Monetary Fund.Zhu Min, who was deputy managing director of the International Monetary Fund (IMF) from 2011 to 2016, said that the coronavirus epidemic was likely to have cost the tourism industry about 900 billion yuan (US$128 billion) in January…
February 22, 2020

China steps up locust prevention as swarms ravage crops in neighbouring India and Pakistan

China has heightened prevention and control measures to protect its cropland from desert locusts that have ravaged India and Pakistan, despite assurances that the likelihood of a large-scale attack was marginal.Locusts, which decimate almost all green vegetation including crops and trees, have swarmed swathes of agricultural land on the India-Pakistan border, an area identified as a global hotspot for the pests by the UN’s Food and Agriculture Organisation (FAO).The outbreak has raised concerns…
February 21, 2020

Help China’s key manufacturers plug back into global supply chain, Xi Jinping says

Chinese President Xi Jinping said key enterprises in manufacturing supply chains should get help to resume output amid calls in other countries to cut reliance on Chinese suppliers.At a Communist Party Politburo meeting on Friday, Xi said the coronavirus epidemic had not yet reached its peak despite a recent drop in the number of new infections.He said officials must be vigilant to contain the epidemic, while also ensuring that China remained on track to resume output and meet its economic…
February 21, 2020

Huawei pushes US to release secret files on HSBC-Meng Wanzhou ties as legal battle broadens

Huawei Technologies has asked the US government to release a long list of documents related to the extradition case against chief financial officer Meng Wanzhou, according to a letter filed by the company’s US lawyers to the Court for the Eastern District of New York.In the letter, seen by the South China Morning Post, Huawei’s lawyers wrote that the US government possesses documents that “appear certain” to prove that Meng did not dupe HSBC into handling Iran-related transactions – a core…
February 21, 2020

Cash crunch: Chinese start-ups scramble for cash as venture capital investments freeze amid coronavirus outbreak

China’s once frothy venture capital market has seen its slowest start to the year since 2013, as fast-growing start-ups struggle to keep their research on track and secure vital funds amid the spread of a deadly coronavirus.Travel restrictions aimed at blocking the spread of the viral epidemic, which causes the disease known as Covid-19, have had the unintended consequence of derailing investors’ plans to meet with China’s cash-hungry companies.The coronavirus is also likely to drag down the…
February 21, 2020

Chinese start-ups scramble for cash as venture capital investments freeze amid coronavirus outbreak

China’s once frothy venture capital market has seen its slowest start to the year since 2013, as fast-growing start-ups struggle to keep their research on track and secure vital funds amid the spread of a deadly coronavirus.Travel restrictions aimed at blocking the spread of the viral epidemic, which causes the disease known as Covid-19, have had the unintended consequence of derailing investors’ plans to meet with China’s cash-hungry companies.The coronavirus is also likely to drag down the…
February 21, 2020

China to refund US trade war tariffs on some medical devices amid coronavirus outbreak

China said on Friday it would refund tariffs already paid on a list of 55 US-made products including medical devices, engine components and timber products.The list of products includes some medical devices that are essential for the diagnosis of coronavirus, which causes the disease officially known as Covid-19, and which has already infected more than 75,000 people and killed more than 2,000 in China. These products include magnetic resonance imaging (MRI) parts and X-rays tubes, a key…
February 21, 2020

Coronavirus: China’s car sales collapse, as officials warn of sharp trade decline to come

A 92 per cent drop in car sales in China in the first half of February provided the first real indicator of the economic impact of the coronavirus epidemic, with officials also warning of a sharp decline in Chinese exports and imports for the first two months of the year.The China Passenger Car Association (CPCA) on Friday said that sales dropped to just 4,909 units in the first 16 days of the month, down from 59,930 vehicles in the same period a year earlier.“Very few dealerships opened in the…
February 21, 2020

Coronavirus hits China’s farms and food supply chain, with further spike in meat prices ahead

On his farm in China’s Guangdong province, a chicken farmer named Chen is facing a race against time.The rapid spread of the novel coronavirus throughout China has led to the shutdown of many marketplaces and cut farmers off from their livestock and the supply of animal feed.Chen, who wished only to give his family name, keeps around 60,000 chickens, and before the Lunar New Year holiday in January, he could have sold the birds for 20 yuan each (US$2.8). Now he says he will be lucky to get 2…
February 21, 2020

Coronavirus: China to postpone tropical Davos as outbreak derails slew of high-profile events

The Boao Forum for Asia, a Davos-style gathering of regional business and political elites on the tropical island of Hainan, is the latest international event in China to be suspended due to the outbreak of the coronavirus.The annual conference, which was expected to take place from March 24-27, will be postponed after the virus forced China to delay the National People’s Congress, the annual parliamentary gathering that was set to begin March 5, two sources briefed on the matter told the South…