About 3 trillion yuan worth of bonds sold by local government financing vehicles will mature annually until 2025, and repayment pressure is mounting on regional authorities as other revenue streams, such as from property sales, fail to fill the coffers. Photo: Bloomberg
Banking & finance
Bond-default risks rise in China as fiscal turmoil strains local governments
6 hours ago

Local-level coffers are running low in some parts of China as the government sticks with its restrictive zero-Covid policy, and there are rising concerns that public services could be adversely affected.

About 3 trillion yuan worth of bonds sold by local government financing vehicles will mature annually until 2025, and repayment pressure is mounting on regional authorities as other revenue streams, such as from property sales, fail to fill the coffers. Photo: Bloomberg
Bond-default risks rise in China as fiscal turmoil strains local governments

Local-level coffers are running low in some parts of China as the government sticks with its restrictive zero-Covid policy, and there are rising concerns that public services could be adversely affected.

6 hours ago
Sizzling heater sales to Europe aren’t enough to warm China’s export outlook

The trade boom that China’s economy enjoyed early on in the pandemic appears to be waning, as not even the appeal of a depreciated yuan can offset the changing global demand dynamics.

29 Sep 2022 - 5:02AM
‘Gamble’ on yuan at your peril, Beijing warns, even as it slips to 14-year low

People’s Bank of China says in a rare warning that stabilising the foreign exchange market is a top priority after the onshore yuan closed on Wednesday at its weakest level against the US dollar since January 2008.

29 Sep 2022 - 12:26AM
China has seen a surge in orders for blankets from Europe as it faces an intensifying energy crisis ahead of winter. Photo: Getty Images
Sizzling heater sales to Europe aren’t enough to warm China’s export outlook

The trade boom that China’s economy enjoyed early on in the pandemic appears to be waning, as not even the appeal of a depreciated yuan can offset the changing global demand dynamics.

29 Sep 2022 - 5:02AM
Yuan
‘Gamble’ on yuan at your peril, Beijing warns, even as it slips to 14-year low

People’s Bank of China says in a rare warning that stabilising the foreign exchange market is a top priority after the onshore yuan closed on Wednesday at its weakest level against the US dollar since January 2008.

People’s Bank of China says in a rare warning that stabilising the foreign exchange market is a top priority after the onshore yuan closed on Wednesday at its weakest level against the US dollar since January 2008.

29 Sep 2022 - 12:26AM
Taiwan
In new omen of recession, export-led Taiwan signals weakening global demand

Taiwan’s National Development Council said its ‘overall monitoring indicator’ fell to its lowest level in more than two years, as the head of the World Trade Organization (WTO) warned of a global economic downturn.

Taiwan’s National Development Council said its ‘overall monitoring indicator’ fell to its lowest level in more than two years, as the head of the World Trade Organization (WTO) warned of a global economic downturn.

28 Sep 2022 - 5:15PM
China’s offshore yuan tumbles to lowest level since 2011

China’s offshore yuan fell as far as 7.2349 early on Wednesday, the lowest level since such data became available in 2011, despite fresh policy steps to bolster the currency this week.

28 Sep 2022 - 11:54AM
China’s offshore yuan tumbles to lowest level since 2011
‘Highly investible’ China woos foreigners but withholds what they want most

Geopolitical tensions, zero-Covid restrictions and political uncertainties serve to make the world’s second-largest economy less attractive, but China is pressing on with its charm offensive.

28 Sep 2022 - 11:04AM
‘Highly investible’ China woos foreigners but withholds what they want most
In new omen of recession, export-led Taiwan signals weakening global demand

Taiwan’s National Development Council said its ‘overall monitoring indicator’ fell to its lowest level in more than two years, as the head of the World Trade Organization (WTO) warned of a global economic downturn.

28 Sep 2022 - 5:15PM
China’s offshore yuan tumbles to lowest level since 2011

China’s offshore yuan fell as far as 7.2349 early on Wednesday, the lowest level since such data became available in 2011, despite fresh policy steps to bolster the currency this week.

28 Sep 2022 - 11:54AM
‘Highly investible’ China woos foreigners but withholds what they want most

Geopolitical tensions, zero-Covid restrictions and political uncertainties serve to make the world’s second-largest economy less attractive, but China is pressing on with its charm offensive.

28 Sep 2022 - 11:04AM
China's yuan
Explainer | What will China’s central bank do to slow depreciation of the yuan?

China may cut banks’ forex reserve requirements again and could even restore the so-called counter cyclical factor to prevent a rapid depreciation in the currency, experts say.

China may cut banks’ forex reserve requirements again and could even restore the so-called counter cyclical factor to prevent a rapid depreciation in the currency, experts say.

27 Sep 2022 - 9:23AM
China’s offshore yuan tumbles to lowest level since 2011

China’s offshore yuan fell as far as 7.2349 early on Wednesday, the lowest level since such data became available in 2011, despite fresh policy steps to bolster the currency this week.

China’s offshore yuan fell as far as 7.2349 early on Wednesday, the lowest level since such data became available in 2011, despite fresh policy steps to bolster the currency this week.

28 Sep 2022 - 11:54AM
China ‘hits back at the yuan bears’, but new policy steps signal disquiet

China’s latest foreign exchange market intervention indicates greater determination to defend the yuan and prevent negative sentiment spreading across forex, stock and bond markets, analysts say.

China’s latest foreign exchange market intervention indicates greater determination to defend the yuan and prevent negative sentiment spreading across forex, stock and bond markets, analysts say.

26 Sep 2022 - 8:00PM
US Federal Reserve Board chairman Jerome Powell speaks during a news conference in Washington on September 21. Photo: AFP
Macroscope | Focus on ‘core’ as dangerous for the US as it is for China

Just as a fixation on core inflation can mislead central banks, the power of a ‘core leader’ is a recipe for misdirected and ultimately unsustainable policy. The very notion of a core adds a false sense of precision when policymakers attempt to address complex problems.

29 Sep 2022 - 1:02AM
The View | Unlike 1990s Japan, China’s economy can power on with internal circulation

With exports flagging and US techno-nationalism on the rise, China’s economic predicament is being compared to that of 1990s Japan and the resulting stagnation. But unlike Japan, China still has plenty of room to grow effective investments and boost household consumption under its internal circulation strategy.

With exports flagging and US techno-nationalism on the rise, China’s economic predicament is being compared to that of 1990s Japan and the resulting stagnation. But unlike Japan, China still has plenty of room to grow effective investments and boost household consumption under its internal circulation strategy.

28 Sep 2022 - 5:45PM
Unlike 1990s Japan, China’s economy can power on with internal circulation
Macroscope | China’s economic woes, unlike the US’, will fade with the pandemic

While the world’s major economies are slowing down, China faces a different kind of economic problem from the US and the EU. In China, the issue is inadequate demand, which has been flattened by lockdown measures. The solution then is to wait out the zero-Covid policy.

While the world’s major economies are slowing down, China faces a different kind of economic problem from the US and the EU. In China, the issue is inadequate demand, which has been flattened by lockdown measures. The solution then is to wait out the zero-Covid policy.

28 Sep 2022 - 3:30AM
China’s economic woes, unlike the US’, will fade with the pandemic
US Federal Reserve Board chairman Jerome Powell speaks during a news conference in Washington on September 21. Photo: AFP
Macroscope | Focus on ‘core’ as dangerous for the US as it is for China
29 Sep 2022 - 1:02AM
The View | Unlike 1990s Japan, China’s economy can power on with internal circulation

With exports flagging and US techno-nationalism on the rise, China’s economic predicament is being compared to that of 1990s Japan and the resulting stagnation. But unlike Japan, China still has plenty of room to grow effective investments and boost household consumption under its internal circulation strategy.

28 Sep 2022 - 5:45PM

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