NEWS

July 11, 2020

Hong Kong will stay China’s financial gateway to the world, former top banking official says

Hong Kong will continue to be an international financial centre in parallel with New York and London, and remain an important financial gateway for China to connect the rest of the world, a former top banking official said on Saturday.Liu Mingkang, former chairman of the China Banking Regulatory Commission, offered the assessment in an online forum, saying he “was very disappointed at recent discussions about [the weakening] financial role of Hong Kong”.“People circulating those views don’t…
July 10, 2020

Donald Trump says phase two US-China trade deal unlikely at this point

US President Donald Trump said a phase two trade deal with China is not under consideration, saying the relationship between Washington and Beijing is “severely damaged”.“I don’t think about that,” Trump said when asked on Friday about the possibility of a second round of trade agreements with China. “The relationship with China has been severely damaged.”Trump made the comments to reporters aboard Air Force One on his way to Florida, where he will visit a military base and later attend a…
July 10, 2020

Chinese officials bemoan ‘significant catch-up’ needed with US on chipmaking, as industrial decoupling looms

China must redouble efforts to improve its hi-tech production capabilities – particularly in semiconductor manufacturing – to safeguard national development in the face of increased pressure from the United States, Chinese officials and experts have said.The world’s second largest economy must reduce gaps in the supply of key technologies and components, and consider replacing imports with indigenous development to offset US restrictions, said former industry minister Li Yizhong at a closed…
July 10, 2020

Coronavirus: Beijing’s economic recovery from June outbreak offers hope ahead of China GDP release

The sight of more than a dozen patrons sitting on stools outside a popular barbecue restaurant on Beijing’s famous Gui Jie food street waiting to be seated is not only good for China’s services industry, but also offers hopes that it can maintain a delicate balance between containing the coronavirus and growing its economy.This typical scene on a normal Wednesday evening would have been unthinkable last month when the street lived up to the literal translation of its name, ghost street, after…
July 10, 2020

Coronavirus, US-China trade war see 95 per cent of American firms wanting to ditch Chinese suppliers

Jaded by two years of trade war tariffs, worried by the disruptive coronavirus pandemic and anxious about the crumbling US-China relationship, a vast majority of American buyers are looking to shift their supplier base away from China, new research shows.But with much of the world still under some form of lockdown, and with few markets able to compete with China on cost or quality, sourcing specialists have warned US firms that switching is “not like flipping a switch”.A poll of 200 companies…
July 10, 2020

China loans hits record US$1.73 trillion in first half of 2020 after strong June as coronavirus recovery continues

New bank lending in China rose 22.3 per cent in June from May as authorities continued to boost credit and ease policy to get the world’s second-largest economy humming again after a sharp coronavirus-induced contraction.Chinese banks extended 1.81 trillion yuan (US$258 billion) in new yuan loans in June, up from 1.48 trillion yuan in May and slightly exceeding analysts’ expectations, according to data released by the People’s Bank of China (PBOC) on Friday.That pushed bank lending in the first…
July 10, 2020

Australia keen on penning RCEP trade pact this year despite disputes with China

Australia has reaffirmed its commitment to signing the Regional Comprehensive Economic Partnership (RCEP) trade agreement despite rising political tensions with China – a key supporter of the treaty – possibly paving the way for a new platform for trade-conflict resolution between the two countries.The Australian Department of Foreign Affairs and Trade also said on Wednesday that there was no change in Australia’s commitment to sign the RCEP.At the 10th RCEP Ministerial Meeting two weeks ago,…
July 9, 2020

US-China trade war reaches second anniversary, with superpower relations at ‘alarming’ lowest ebb

On the second anniversary of Washington unleashing its first trade war tariffs on Beijing, tensions continue to flare over issues ranging from Hong Kong to technology, with observers in both countries agreed that the superpower relationship between China and the United States is at its lowest ebb in decades.The motivation for US President Donald Trump was to close America’s trade deficit with China, and it has narrowed. China continues to purchase American farm goods, seen as crucial to Trump’s…
July 9, 2020

China’s yuan surges to four-month high as financial market reform stokes rally

The yuan’s exchange rate strengthened above the psychologically important level of 7 per US dollar on Thursday, as optimism over new policies liberalising China’s financial markets helped attract foreign capital.The benchmark Shanghai Stock Exchange has risen more than 9 per cent so far this week, putting it on a course for its best weekly performance in five years and helping drive the appreciation of the yuan.Analysts said the rally in stocks, reflecting funds flowing into China, was boosted…
July 9, 2020

China’s financial market reform stokes rally in yuan to 4-month high

The yuan’s exchange rate strengthened above the psychologically important level of 7 per US dollar on Thursday, as optimism over new policies liberalising China’s financial markets helped attract foreign capital.The benchmark Shanghai Stock Exchange has risen more than 9 per cent so far this week, putting it on a course for its best weekly performance in five years and helping drive the appreciation of the yuan.Analysts said the rally in stocks, reflecting funds flowing into China, was boosted…
July 9, 2020

China’s financial market reform stokes rally in yuan to four-month high

The yuan’s exchange rate strengthened above the psychologically important level of 7 per US dollar on Thursday, as optimism over new policies liberalising China’s financial markets helped attract foreign capital.The benchmark Shanghai Stock Exchange has risen more than 9 per cent so far this week, putting it on a course for its best weekly performance in five years and helping drive the appreciation of the yuan.Analysts said the rally in stocks, reflecting funds flowing into China, was boosted…
July 9, 2020

China’s Chongqing halts release of monthly birth data due to ‘unfair’ foreign media coverage

“Unfair” foreign media coverage has been blamed for one of the only local governments in China that released monthly data on new births halting the practice.The Chinese provincial level municipality of Chongqing, an economic powerhouse in southwestern China which is home to some 30 million residents, suspended the release of the data earlier this year.Official national birth figures are only published annually at the beginning of each year, meaning Chongqing was one of only a handful of local…
July 9, 2020

China’s statistics agency publishes year-old monthly inflation, producer price data for June causing confusion

China’s national statistics agency caused mild confusion on Thursday by appearing to release year-old inflation and producer price data for June.The National Bureau of Statistics (NBS) initially published the regular monthly data on its website showing the producer price index (PPI) was unchanged in June from the same month last year, while China’s consumer price index (CPI) was up 2.7 per cent in June.The figures were initially reported by various news outlets and trading websites before the…
July 9, 2020

China’s statistics agency admits mistakenly publishing year-old monthly inflation, producer price data for June

China’s national statistics agency caused mild confusion on Thursday after mistakenly releasing year-old inflation and producer price data for June.The National Bureau of Statistics (NBS) initially published the regular monthly data on its website showing the producer price index (PPI) was unchanged in June from the same month last year, while China’s consumer price index (CPI) was up 2.7 per cent in June.The figures were initially reported by various news outlets and trading websites before…
July 9, 2020

Price pressure on China’s manufacturing sector fell in June as coronavirus impact eased

Pressure on China’s manufacturing sector eased in June following the impact of the coronavirus pandemic, data released on Thursday showed.The producer price index (PPI), reflecting the prices that factories charge wholesalers for their products, fell 3.0 per cent year on year in June, data from the National Bureau of Statistics (NBS) showed.That was lower than May’s reading of a 3.7 per cent decline and lower than the 3.2 per cent contraction tipped by analysts in a survey by Bloomberg.The drop…
July 9, 2020

How China’s Greater Bay Area wealth management connect could help millionaires move their money across borders

After China unveiled its latest plan to promote the Greater Bay Area as a wealth management hub on June 29, confusion reigned in financial circles.Under the pilot scheme, dubbed Wealth Management Connect, Hong Kong and Macau residents can buy onshore wealth management products sold by Chinese banks, while bay area residents can invest in products sold by Hong Kong and Macau’s banks.This broad outline left asset managers puzzling over what it would mean for China’s capital controls and…
July 8, 2020

Didi partners with China’s central bank on digital currency research and development

Chinese ride-hailing giant Didi Chuxing (Didi) said it has entered into a strategic partnership with the People’s Bank of China to speed up the research and development of the central bank’s planned digital currency – known as Digital Currency Electronic Payment (DCEP) – via its on-demand transport platform.“Didi's DCEP task force will design and implement pilot DCEP projects in accordance with rigorous safety, security and governance standards,” Didi said in a statement on Wednesday.Didi did…
July 8, 2020

Chinese academics claim US has started cold war as tensions simmer over South China Sea, Xinjiang, Tibet, Hong Kong

The United States is launching a cold war against China, according to almost two thirds of Chinese researchers in a survey conducted by a Beijing-based think tank.A total of 62 out of the 100 respondents to the survey published by the Chongyang Institute for Financial Studies at Renmin University agreed when asked “is the US launching a new cold war against China?”China, though, is able to cope with a possible new cold war offensive by the US, according to 90 per cent of the respondents…
July 8, 2020

China power firms suspend publication of coal data, frustrating analysis of industrial production

The publication of daily coal consumption data from China’s main power companies, which is widely used by economists to gauge industrial output and broad economic activity, has been suspended after the electricity providers stopped reporting their numbers.The decision to stop releasing data for five major power generation groups, which between them supply information from 56 coal-fired power plants, comes as analysts scramble for clues about the speed of China’s economic recovery following the…
July 8, 2020

China’s car sales still showing signs of growth as world’s largest market recovers from coronavirus impact

China’s car sales continued to recover in June, the China Passenger Car Association said on Wednesday.Retail sales of sedans, SUVs, minivans and multipurpose vehicles within the world’s largest car market declined 6.5 per cent to 1.68 million units in June from a year earlier, having risen 1.9 per cent in May, which was the first increase in a year.But the 2.6 per cent increase from May, which was in line with expectations, offers some encouragement after demand had slumped amid the coronavirus…