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November 16, 2018

What does ‘opening up’ exhibition giving credit to SOEs and Xi Jinping say to China’s private firms?

State-owned enterprises are much more prominent than the private sector and President Xi Jinping far more visible than Deng Xiaoping in a special exhibition marking 40 years since China’s reform and opening up, stressing the Communist Party’s role in the economy even as Xi courts private firms to help stabilise growth during the trade war with the United States. The exhibition, at the National Museum of China in Beijing, devotes half of a display about Chinese leaders to the...
November 16, 2018

Fosun’s founder adds his voice to calm jittery nerves among China’s private-sector entrepreneurs

Guo Guangchang, China’s 26th-wealthiest man and founder of one of the country’s largest private conglomerates, said short-term turbulence in the Chinese capital markets will stabilise under the steady hands of the leadership and their commitment to the long-term liberalisation of the world’s second-largest economy. “Many policies have been announced. However, implementation takes time,” said Guo, founder and chairman of Fosun Group, in an exclusive interview this...
November 16, 2018

China committed to reforms and creating a level playing field for private companies, says Fosun chairman Guo Guangchang

Guo Guangchang, China’s 26th-wealthiest man and founder of one of the country’s largest private conglomerates, said short-term turbulence in the Chinese capital markets will stabilise under the steady hands of the leadership and their commitment to the long-term liberalisation of the world’s second-largest economy. “Many policies have been announced. However, implementation takes time,” said Guo, founder and chairman of Fosun Group, in an exclusive interview...
November 15, 2018

China is underestimating its US$3 trillion dollar debt and this could trigger a financial crisis

Massive domestic debt has long been a headache for Beijing, but it is China’s growing external US dollar leverage that is being underestimated and it could possibly trigger a major financial crisis, according to Kevin Lai, chief economist for Asia excluding Japan at Japanese investment bank and securities brokerage Daiwa Capital Markets. China’s US$3 trillion dollar debt makes it especially vulnerable because of tightening US dollar liquidity, a weakening yuan and the ongoing US-...
November 15, 2018

China is underestimating its US$3 trillion dollar debt and this could trigger a financial crisis, economists say

Massive domestic debt has long been a headache for Beijing, but it is China’s growing external US dollar leverage that is being underestimated and it could possibly trigger a major financial crisis, according to Kevin Lai, chief economist for Asia excluding Japan at Japanese investment bank and securities brokerage Daiwa Capital Markets. China’s US$3 trillion dollar debt makes it especially vulnerable because of tightening US dollar liquidity, a weakening yuan and the ongoing US-...
November 15, 2018

In China’s Motown, Dongfeng Motor epitomises how state ownership thrives, evolves under capitalism

Si Fumin spends a lot of time reminiscing about the past, and worrying about the future these days. When he began working as a teenage technician on the car frame line in this landlocked city of Shiyan during the late 1980s, Dongfeng Motor was still known as the Second Automobile Works (SAW), a holdover from Mao Zedong’s 1964 diktat to invest in defence, technology, mining, manufacturing and power production to spearhead China’s industrialisation. For almost five decades, Dongfeng...
November 15, 2018

China pledges more support for private firms investing abroad, 12 months after clipping their wings

China’s commerce ministry will support private companies in their efforts to expand overseas, state media reported on Thursday, in a sign Beijing might be softening its stance on outbound investment after a ruthless crackdown on some of the country’s biggest capitalists last year. “We will guide private businesses to venture abroad in an orderly manner and to take part in the ‘Belt and Road Initiative’,” Minister of Commerce Zhong Shan said in an interview...
November 15, 2018

Foreign investment in China stable in October, but US investment weak due trade war

Foreign direct investment (FDI) in China remained stable overall in October, despite slowing economic growth and weak inflows from the United States amid the trade war. FDI, a sign of international confidence in the world’s second-biggest economy, rose to US$9.7 billion in October, up 7.3 per cent from a year earlier, the Ministry of Commerce said on Thursday. In the first 10 months of the year, total FDI rose to US$107.6 billion, with the growth rate accelerating slightly to 6.5 per cent...
November 15, 2018

Foreign investment in China stable in October, but US investment weak due to trade war

Foreign direct investment (FDI) in China remained stable overall in October, despite slowing economic growth and weak inflows from the United States amid the trade war. FDI, a sign of international confidence in the world’s second-biggest economy, rose to US$9.7 billion in October, up 7.3 per cent from a year earlier, the Ministry of Commerce said on Thursday. In the first 10 months of the year, total FDI rose to US$107.6 billion, with the growth rate accelerating slightly to 6.5 per cent...
November 15, 2018

China’s new home prices gain momentum in October, rise 1 per cent month on month

China’s new home prices continued to rise in October despite government measures to rein in prices, with analysts fearing the price curbs will remain firmly in place for the foreseeable future. Average new home prices in China’s 70 major cities rose 1 per cent in October from a month earlier, according to the Post’s calculation using data published by the National Bureau of Statistics on Thursday. Home prices grew 0.9 per cent month on month growth in September. “The...
November 14, 2018

Marx or market? Chinese scholar raises the question all private business owners want to ask

A Chinese economist has highlighted an ideological contradiction in the Communist Party’s practice of supporting private business while promoting Marxism. Jia Kang, the former head of a research institute under China’s finance ministry, said on Tuesday that it was the question to be answered about the ruling party’s attitude to private ownership. Speaking at a conference in Beijing organised by Chinese financial magazine Caijing, Jia said China needed to find a new theory to...
November 14, 2018

China’s home sales growth continues to slow in October as cooling measures take effect

China’s property sector is feeling the impact of measures to rein in prices. Sales of new homes, measured by area, continued to decline. It fell 1.3 per cent in October from a year earlier, a bigger contraction than the 0.8 per cent seen in September, according to the Post’s calculation based on data released by the National Bureau of Statistics on Wednesday. Measured by value, it rose 9.9 per cent last month from a year earlier. Public anger in China spreading as property prices...
November 14, 2018

Chinese consumers curb spending on trade war uncertainty, but investment and output jump in October

Chinese consumers reined in their spending in October on increasing uncertainty amid the trade war with the United States, government data released on Wednesday showed. But growth in fixed-asset investment and industrial production both accelerated during the first month of the fourth quarter, indicating that while the economy may be slowing, it is not collapsing from the weight of trade war uncertainty. China says exports to US rising ‘because American economy is strong and they want to...
November 14, 2018

US-China trade war: worst yet to come for Chinese economy, say analysts

Chinese consumers reined in their spending in October on increasing uncertainty amid the trade war with the United States, government data released on Wednesday shows. But growth in fixed-asset investment and industrial production both accelerated during the first month of the fourth quarter, indicating that while the economy may be slowing, it is not collapsing under the weight of trade war uncertainty. China says strong US economy shores up its exporters Analysts, however, said the worst was...
November 13, 2018

Weak stock market an ‘embarrassment’ for China, says Beijing adviser

China’s stock market, whose indices are among Asia’s biggest losers for the past four quarters, is an embarrassment to the country, the chairman of the country’s biggest commerce guild and a senior government adviser said on Tuesday. “China’s stock market has diverged completely from the country’s economic fundamentals,” said Huang Mengfu, chairman of the All-China Federation of Industry and Commerce and a former vice-chairman of the China People’...
November 13, 2018

PBOC renews currency backup from UK and Japan to defend yuan

China and Britain renewed their bilateral local currency swap scheme for another three years on Monday, two weeks after Beijing signed a similar deal with Japan, in a sign that Beijing is securing backup in defending its depreciating currency. These bilateral arrangements allow the People’s Bank of China to use its own currency as collateral to borrow the currency of the other country within agreed limits. In the renewed deal with the UK, for instance, China’s central bank can...
November 13, 2018

China’s latest financial data paints a bleak economic outlook amid trade war with US

China’s financial condition weakened in October, pointing to a further deceleration in the world’s second-biggest economy amid the trade war with the United States. While Beijing has been pressing the country’s banks to boost lending to the “real economy”, newly granted loans nearly halved to 677 billion yuan (US$97.32 billion) in October, from 1.38 trillion yuan (US$198.39 billion) in September, according to data released by the People’s Bank of China on...
November 13, 2018

Chinese Premier rejects economic stimulus option as latest data shows more weakness

The Chinese government has no plans to resort to a “massive stimulus” similar to that of 2008 as a way to manage its slowing economy amid the trade war with the United States, Premier Li Keqiang said on Tuesday. Instead, Beijing will focus its policies on “energising the market, in particular market entities” and creating “fair and equal regulations” to maintain momentum in the world’s second biggest economy, Li said in a speech before attending the...
November 13, 2018

Federal Reserve’s former chair Yellen expects three to four US rate increases over the next year

The US Federal Reserve will continue the current pace of normalising its monetary policy because the American economy is doing “exceptionally well,” though this will create a tougher economic environment for emerging markets including China, its former chair said on Tuesday. “Normalisation of both short rates and the balance sheet are proceeding smoothly and, with the economy performing so well, Chair Powell and the [Federal Open Market Committee (FOMC)] are continuing the...
November 13, 2018

Federal Reserve’s former chair Janet Yellen expects three to four US rate increases over the next year

The US Federal Reserve will continue the current pace of normalising its monetary policy because the American economy is doing “exceptionally well,” though this will create a tougher economic environment for emerging markets including China, its former chair said on Tuesday. “Normalisation of both short rates and the balance sheet are proceeding smoothly and, with the economy performing so well, Chair Powell and the [Federal Open Market Committee (FOMC)] are continuing the...