NEWS

November 14, 2019

China to unify regional economic data calculation from early 2020 to further boost acceptance of figures

China will unify the way it calculates regional economic output from early 2020, amid scepticism about the reliability of Chinese data and suggestions it will modify economic data to reach a key Communist Party goal.According to National Bureau of Statistics spokesman Liu Aihua, China will start by calculating 2019’s regional gross domestic product (GDP) in a unified way in 2020, without elaborating on details.In the past, the NBS calculated national GDP, while the respective provinces computed…
November 14, 2019

China stands firm on demand that US lifts tariffs to reach trade deal

China is sticking firm to its demand that the US remove tariffs as talks on an interim trade deal continues, the Ministry of Commerce said on Thursday.Ministry spokesman Gao Feng said the trade war between the two nations started with the imposition of tariffs and it should end with their removals.“That is the important condition for reaching the deal,” Gao said in a press conference on Thursday. “The significance of the phase one deal should reflect the scale of the tariff roll back.”He…
November 14, 2019

China ‘yet to hit bottom’ as economic downturn plumbed new depths in October

The hope that China’s economy had put the worst behind it was dashed on Thursday by a series of disappointing economic figures that rounded off a miserable week for policymakers in Beijing.Green shoots that appeared last week in the form of lower-than-expected export and import falls, along with a positive survey of small manufacturers, have been supplanted by official numbers that show the depth of problems facing the world’s second largest economy.Fixed asset investment in China – that is,…
November 14, 2019

China continues small stimulus steps to boost infrastructure projects in face of economic slowdown

China has taken another small step to help prop up its flagging economy by relaxing the minimum capital ratio requirement for some local government infrastructure projects.The requirement for ports and shipping infrastructure projects, which are mainly funded by local governments, will be cut to 20 per cent from 25 per cent, while capital requirements for railways, roads, environmental projects and logistics will be decreased by up to 5 percentage points, according to a statement released by…
November 14, 2019

China’s economic slump continues as manufacturing slows sharply and investment growth hits 20-year low

Growth in China’s industrial economy fell sharply in October, as a broad-based slowdown in manufacturing was again clear in figures released on Thursday.Industrial production, a measure of growth in sectors such as manufacturing, mining and utilities, expanded by 4.6 per cent cent last month, down from 5.8 per cent in September. This was below analysts’ expectations of 5.4 per cent growth. September’s figure had been a rebounded from a 17-year low of 4.4 per cent, recorded in August.In another…
November 14, 2019

China’s economic slump continues as manufacturing growth slows sharply, investment growth hits 20-year low

Growth in China’s industrial economy fell sharply in October, as a broad-based slowdown in manufacturing was again clear in figures released on Thursday.Industrial production, a measure of growth in sectors such as manufacturing, mining and utilities, expanded by 4.7 per cent cent last month, down from 5.8 per cent in September. This was below analysts’ expectations of 5.4 per cent growth. September’s figure had rebounded from a 17-year low of 4.4 per cent, recorded in August.In another piece…
November 13, 2019

China think tank becomes first government-linked body to predict 2020 growth will drop below 6.0 per cent

A Beijing-based think tank has become the first Chinese economic research institute linked to the government to predict that China’s economic growth rate will slow below 6.0 per cent next year.The National Institution for Finance and Development (NIFD) on Wednesday said that China’s economic growth rate will slow to 5.8 per cent in 2020 from an estimated 6.1 per cent this year.This is at the bottom end of China’s target range of 6 to 6.5 per cent growth for 2019, and further indicates the…
November 13, 2019

Chinese think tank becomes first government-linked body to predict 2020 growth will drop below 6.0 per cent

A Beijing-based think tank has become the first Chinese economic research institute linked to the government to predict China’s economic growth rate will slow below 6.0 per cent next year.The National Institution for Finance and Development (NIFD) on Wednesday said that China’s economic growth rate will slow to 5.8 per cent in 2020 from an estimated 6.1 per cent this year.This is at the bottom end of China’s target range of 6 to 6.5 per cent growth for 2019, and further indicates the continued…
November 13, 2019

China’s 2020 growth will drop below 6.0 per cent says Chinese think tank – first government-linked body to make such a prediction

A Beijing-based think tank has become the first Chinese economic research institute linked to the government to predict that China’s economic growth rate will slow below 6.0 per cent next year.The National Institution for Finance and Development (NIFD) on Wednesday said that China’s economic growth rate will slow to 5.8 per cent in 2020 from an estimated 6.1 per cent this year.This is at the bottom end of China’s target range of 6 to 6.5 per cent growth for 2019, and further indicates the…
November 13, 2019

China could ‘smooth over’ census data to meet growth target, achieve goal of doubling size of economy by 2020

China’s desperation to achieve an economic growth of above 6.0 per cent in 2019 and 2020 could see the government turn to a wide-reaching census that could give it the numerical ammunition it needs to “smooth over” annual data and boost the growth path that would otherwise miss the mark, some analysts believe.China has a grand aim of creating a “moderately prosperous society” by next year, the cornerstones of which are a doubling of national gross domestic product (GDP) and per capita income in…
November 13, 2019

Chinese tourists’ Antarctica tour problems highlight market warming to off-the-beaten-path travel

It was supposed to be a trip of a lifetime to one of the world’s most remote and pristine continents, but Kent Cai now faces the prospect of being thousands of dollars out of pocket with little to show for it.Cai is among at least 120 wealthy Chinese who have been left hanging after a Canadian tour company that charges more than US$14,000 for a single trip to Antarctica announced it had encountered financial difficulties last week.One Ocean Expeditions has not responded to calls and emails from…
November 12, 2019

China’s record Singles’ Day offers glimpse of future shopping trends as buyers embrace live streaming

He Hai opens thousands of clams in front of the camera every day. As the owner of an online jewellery shop on Taobao, he showcases fresh pearls for his customers who watch the live streaming and place orders right away.Growth in live-streaming shopping now contributes 80 per cent of revenue at his UU Pearl store. On the day of the Double 11 shopping festival, the store generated 100,000 yuan (US$14,289) in sales, mostly from live streaming, three times the normal daily volume.Having dived into…
November 12, 2019

Former Chinese premier Zhu Rongji’s son calls for reforms, not easing, to support growth

Excessive monetary easing will not save the global or Chinese economies, the ex-head of the country’s first investment bank and son of its greatest reformers said on Tuesday, and Beijing should instead have the courage to proceed with much needed structural reforms.“It’s impossible to lift the economy out of mud by continuously printing money,” Zhu Yunlai, the former CEO of China International Capital Corporation (CICC), the country’s leading investment bank, told an annual conference organised…
November 12, 2019

China needs reforms, not easing, to support growth, says son of former premier Zhu Rongji

Excessive monetary easing will not save the global or Chinese economies, the ex-head of the country’s first investment bank and son of its greatest reformers said on Tuesday, and Beijing should instead have the courage to proceed with much needed structural reforms.“It’s impossible to lift the economy out of mud by continuously printing money,” Zhu Yunlai, the former CEO of China International Capital Corporation (CICC), the country’s leading investment bank, told an annual conference organised…
November 12, 2019

China’s surging pork prices leave limited leeway for interest rate cut to support growth

Fears of exasperating already rapidly rising consumer prices are limiting the options for Chinese policymakers to make aggressive rate cuts and implement other monetary policy easing even as the economy continues to worsen, analysts said.Surging pork prices pushed China’s consumer price index (CPI) to a nearly eight year high in October, while the headwinds for China’s economic growth are continuing to build as seen in weakening in the export, industrial and property sectors.Policy easing space…
November 12, 2019

California, ‘ground zero for US-China relations’, feels the pinch as trade war tariffs hit American port traffic

Karen Quintana used to pay little attention to US President Donald Trump’s Twitter feed. But as the US-China trade war has dragged on, monitoring the frequent social media dispatches has become an essential part of the job.“At first, people did not really believe the tweets on tariffs were real. They thought, ‘oh he tweeted something, but maybe it’s not going to come true’. But now, we take them very seriously, when we get a notification that he is tweeting, we’re starting contingency planning,…
November 12, 2019

Who can be ‘mini China’? Asian nations seek to capitalise on trade war but it’s not that simple

The US-China trade war reignited the debate over which developing countries in Asia could take over the mantle of the world’s workshop. The front runners? India and Indonesia.A report published on Tuesday by Bloomberg Economics shows no single nation is able to reproduce the kind of success China enjoyed in transforming its economy. Instead, a series of “mini Chinas” are poised to develop, with each trying to leverage advantages but hampered by structural problems such as inadequate…
November 11, 2019

China’s new bank loans drop to lowest level in almost two years in October

New loans in China fell to their lowest level in almost two years in October with manufacturers being forced to lower their prices amid slowing economic activity.Chinese banks extended 661.3 billion yuan (US$94.5 billion) in net new loans last month, well below the 800 billion yuan (US$114 billion) of loans estimated in a Bloomberg survey, and sharply down from the 1.69 trillion yuan (US$241.5 billion) in September, according to the data released by the People’s Bank of China (PBOC) on Monday…
November 11, 2019

China’s new bank loans drop to lowest level in almost two years in October as manufacturers feel the pinch

New loans in China fell to their lowest level in almost two years in October with manufacturers being forced to lower their prices amid slowing economic activity.Chinese banks extended 661.3 billion yuan (US$94.5 billion) in net new loans last month, well below the 800 billion yuan (US$114 billion) of loans estimated in a Bloomberg survey, and sharply down from the 1.69 trillion yuan (US$241.5 billion) in September, according to the data released by the People’s Bank of China (PBOC) on Monday…
November 11, 2019

Global funds seen buying more Chinese assets as reforms widen access to markets, Invesco survey shows

China can expect to draw more portfolio inflows in the coming months even as global investors are split in their assessment of the likely impact of geopolitical tensions on the world’s second-largest economy, according to Invesco.Four in every five global asset owners and professional investors intend to raise their allocations over the next year to seize fresh opportunities created by China’s reform measures to further open its financial markets to foreigners, the Atlanta, Georgia-based money…