Fiscal & Monetary Policy

A worker walks past a section of the China-Russia east-route natural gas pipeline system in northeast China’s Heilongjiang province. The neighbouring countries are looking to further boost their energy cooperation. Photo: Xinhua

China-Russia energy trade, already at historic high, can be stronger, Xi says

Presidents Xi Jinping and Vladimir Putin throw their support behind further economic cooperation between the neighbouring nations against the backdrop of external challenges such as Western sanctions.

2 hours ago
Indian ports such as this one in Sanand, Gujarat state, may receive more goods from Australia under a new trade deal that looks to take effect in the coming weeks. Photo: Reuters

How will China’s mineral monopolies fare after India-Australia trade deal?

Canberra has ratified the Australia-India Economic Cooperation and Trade Agreement, which looks to take effect in the coming weeks as ‘probably the most comprehensive agreement that India has entered into’.

30 Nov 2022 - 6:30AM
Pandemic prevention workers prepare to enter a locked-down apartment compound in Beijing amid a surge in Covid-19 cases. Photo: Reuters

Beijing urged to explain how economic growth is possible amid virus controls

Academics and government advisers say trillions of yuan’s worth of China’s GDP appears to have been lost this year due to Beijing’s disruptive coronavirus-control policy.

29 Nov 2022 - 2:43AM
The decision comes at a time when the world’s second-largest economy is facing a new round of coronavirus disruptions, with daily infections have already jumped to more than 31,000. Photo: AP

‘Better late than never’: China cuts banks’ reserve ratio, freeing US$70 billion

China’s central bank confirmed a reduction to its reserve requirement ratio on Friday at a time when the world’s second-largest economy is facing a new round of coronavirus disruptions.

25 Nov 2022 - 8:16PM
As China’s zero-Covid policy makes some local-level authorities wary of splashing out on expensive infrastructure projects, Beijing will soon send inspectors to ensure that the nation’s economic recovery is supported. Photo: Xinhua

Beijing will dispatch economic inspectors to see policies ‘fully implemented’

But with no mention by the State Council of the worsening outbreak situation, analysts continue to ask how economic growth can be achieved amid widespread lockdowns and mobility restrictions.

25 Nov 2022 - 2:37PM
China is in the process of transitioning from a middle-income to a high-income economy, but it may be at risk of becoming stuck in the so-called middle-income trap. Photo: AFP

Has a middle-income trap been set for China? Adviser warns of GDP growth risks

Prominent economist Wang Yiming’s economic-growth projection is at the high end of expectations among analysts, and it comes with a number of conditions and concerns, some shared by other advisers.

24 Nov 2022 - 9:16AM
The coronavirus pandemic, a property market slump and external demand have been identified by the IMF as the most immediate economic risks to China. Photo: Xinhua

IMF says China must ‘recalibrate’ zero-Covid policy to get economy on track

In its annual health check of the Chinese economy, the International Monetary Fund suggested that the government cut interest rates and ease strict coronavirus curbs to steady recovery.

23 Nov 2022 - 6:21PM
China has been reporting more than 20,000 daily coronavirus infections nationwide for a week, with lockdowns imposed in a rising number of major cities, including Beijing (pictured on Monday). Photo: Kyodo

Ending zero-Covid policy will not put a quick end to China’s pain, economists warn

Policymakers’ attempts to boost China’s economy while it remains constrained by the disruptive zero-Covid policy are deemed ‘powerless’.

23 Nov 2022 - 11:00AM
Outflows from Chinese equities reached US$7.6 billion in October, according to the US-based Institute of International Finance. Photo: Shutterstock

China pitches its ‘quasi-safe’ yuan bonds in bid to raise capital inflows

To encourage capital inflows, China’s foreign-exchange regulator points to ‘policy optimisations’ and other factors to reassure investors who have been waiting to see how the economic policy will unfold.

22 Nov 2022 - 9:00PM
A county in Shaanxi province recently became the first in China to offer cash subsidies to couples with at least one child, but the biggest monthly payout comes with a third child. Photo: Shutterstock

China sheds light on population woes, says 13 provinces shrank in 2021

The national demographic crisis is threatening to adversely affect both the supply and demand sides of China’s economy, prompting a scramble among authorities to promote births.

23 Nov 2022 - 5:21PM
China’s small firms have borne the brunt of weakening demand and repeated lockdowns under Beijing’s stringent zero-Covid policy. Photo: Getty Images

Covid-19 curbs are strangling China’s small firms, despite financing support

China’s top economic planning agency met with US multinationals including ExxonMobil, Boeing, Cargill and Emerson Electric this week, signalling it is eager to restore market confidence after the 20th party congress.

21 Nov 2022 - 9:40AM
China’s economic policy advisers are warning of the implications of slow GDP growth. Photo: Reuters

Beijing’s economic advisers issue GDP growth warnings as restlessness rises

At Caixin Summit, China’s monetary policy adviser says a rocky economic recalibration will magnify existing difficulties and risks, driving the nation’s economy down a slow and distorted path.

18 Nov 2022 - 10:00PM
Regional authorities have also begun to aggressively acquire land though local government financing vehicles (LGFVs), raising concerns that they are using debt to inflate government revenues. Photo: Bloomberg

Local authority ‘land grabs’ raise China debt concerns amid tumbling revenues

Budget deficits for local governments in China have been growing as a result of rising spending and a slump in land sales and tax revenues, with some turning to land purchases via local government financing vehicles (LGFVs).

18 Nov 2022 - 11:01AM
China is relaxing restrictions on travel between provinces, making it easier to visit destinations such as the Yuyuan Garden in Shanghai (pictured). Photo: Bloomberg

As China eases travel restrictions, why aren’t tourism insiders excited?

Travel agents in China are waiting to see how the central government’s new coronavirus measures and policy shifts play out at local levels, as ‘there has been too much back and forth’.

17 Nov 2022 - 11:30AM
US Treasury Secretary Janet Yellen and People’s Bank of China governor Yi Gang at the Group of 20 (G20) summit in Bali on Wednesday. Photo: Twitter

China, US discuss ‘macroeconomic, financial challenges’ and outlook at G20

US Treasury Secretary Janet Yellen and People’s Bank of China (PBOC) governor Yi Gang met on the sidelines of the Group of 20 (G20) summit in Bali, Indonesia, on Wednesday.

16 Nov 2022 - 8:30PM
Pandemic-prevention workers walk near a locked-down apartment compound in Beijing on Saturday, a day after the State Council issued 20 measures to ease some coronavirus controls. Photo: Reuters

Investors ‘not convinced’ despite China easing some zero-Covid, property curbs

A market rally that started on Friday continued on Monday, and the yuan strengthened against the US dollar, but experts say economic uncertainties remain in the face of China’s zero-Covid policy.

15 Nov 2022 - 1:00PM
Precarious local government finances and inadequate regulation of the financial system have been identified as major risks facing China’s economy. Photo: AP

Explainer | 4 weaknesses in China’s economy highlighted by outgoing officials

Deteriorating local government finances, weak banks and inadequate regulation are among the main risks facing China’s economy, according to outgoing senior officials and regulators.

14 Nov 2022 - 11:00AM
China’s “rust belt” is still economically dependent on steel plants like this one in Dalian, Liaoning province. Photo: Reuters

China’s northeast hopes clean energy will help it shake ‘rust belt’ moniker

Renewable energy offers abundant economic opportunities, but critics question if a green-energy build-up will be enough for the northeast region to counter the ingrained economic issues that have hindered its past efforts at revitalisation.

13 Nov 2022 - 11:00AM
Factory workers build furniture in Hangzhou, Zhejiang province, which falls within China’s Yangtze River Delta. Photo: AFP

Safeguards for foreign investors? China unveils new Yangtze River Delta plan

China’s top economic planner unveils a three-year plan for the economically vital region that includes Shanghai, but a restrictive zero-Covid policy continues to loom large.

11 Nov 2022 - 9:30PM
As a flagship for China’s overseas investment, the asset allocation of the US$1.35 trillion sovereign wealth fund is closely watched by market professionals, especially after markets turned volatile amid the US Federal Reserve’s monetary tightening to curb decades-high inflation. Photo: Shutterstock

China’s sovereign wealth fund calls for ‘free, open, orderly’ investment flow

China Investment Corporation’s (CIC) overseas investments registered a net return of 14.27 per cent in US dollar terms last year despite being ‘confronted with a complex and trying external environment’.

11 Nov 2022 - 6:30PM