https://www.scmp.com/rss/12416/feed Amanda Lee covers markets and the economy for the Post, with an interest in China's economic and social landscape. A graduate of the London School of Economics, she joined the Post in 2017 and has previously worked for Thomson Reuters and Forbes. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Ever since the US dollar cemented its role as the backbone of the global financial system following the second world war, it has been a weapon of choice for American presidents waging economic warfare. But as the United States’ use of sanctions has proliferated in recent years, concerns have grown in China and elsewhere over whether the US dollar can remain a safe haven currency. Now, following Donald Trump’s victory in Tuesday’s US presidential election, a fresh wave of uncertainties looms over... https://www.scmp.com/economy/china-economy/article/3285834/china-searches-safe-havens-amid-us-debt-woes-dollar-weaponisation?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3285834/china-searches-safe-havens-amid-us-debt-woes-dollar-weaponisation?utm_source=rss_feed Sat, 09 Nov 2024 22:00:14 +0000 Even though gold prices are at record highs, Chinese consumers and retail investors are still buying the precious metal, spurred on by the uncertainty surrounding China’s economic outlook and next week’s US presidential election. A couple of weeks ago, Wendy He, the director of administration for a private company in Guangzhou, bought gold bullion worth 200,000 yuan (US$28,026) through online banking, which gives her the option to convert it to cash at any time. “If [Donald] Trump wins,... https://www.scmp.com/economy/global-economy/article/3284814/chinese-rush-gold-sparked-uncertainties-us-and-home?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3284814/chinese-rush-gold-sparked-uncertainties-us-and-home?utm_source=rss_feed Sat, 02 Nov 2024 10:00:14 +0000 While there are growing concerns among the Brics bloc of emerging economies over the scope of financial sanctions from the United States, few countries in the grouping seem ready to ditch the US dollar despite Russian President Vladimir Putin’s recent efforts to encourage an alternative system of payment among members. Following an expanded summit for the bloc hosted in his country – and a communique indicating little progress had been made on such a system, analysts said – Putin appeared to... https://www.scmp.com/economy/global-economy/article/3283877/china-brics-bloc-not-ready-reject-us-dollar-despite-russian-entreaties?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3283877/china-brics-bloc-not-ready-reject-us-dollar-despite-russian-entreaties?utm_source=rss_feed Fri, 25 Oct 2024 10:00:27 +0000 China will convene a highly anticipated legislature meeting - expected to serve as a window into fiscal stimulus plans - early next month as top authorities take the outcome of the 2024 US presidential election into account amid their economic-revival efforts. The November 4-8 meeting of the NPC Standing Committee will take place later than had been expected. The national legislature often meets in the second half of October to discuss a wide range of issues facing the world’s second-largest... https://www.scmp.com/economy/economic-indicators/article/3283851/chinas-top-legislature-meet-november-4-8-market-awaits-stimulus-plans?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3283851/chinas-top-legislature-meet-november-4-8-market-awaits-stimulus-plans?utm_source=rss_feed Fri, 25 Oct 2024 08:16:00 +0000 A prominent state-owned Chinese shipbuilder known for being at the centre of the nation’s naval modernisation has signed a deal that will help advance the yuan’s internationalisation while further consolidating China’s leading role in containership manufacturing. China’s Hudong-Zhonghua Shipbuilding, based in Shanghai, has entered into an agreement with Hong Kong-based containership lessor Seaspan Corporation for the construction of six containerships, each with a capacity of 13,600 TEUs... https://www.scmp.com/economy/china-economy/article/3283253/china-shipbuilder-shores-yuans-use-trade-landmark-containership-deal?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3283253/china-shipbuilder-shores-yuans-use-trade-landmark-containership-deal?utm_source=rss_feed Tue, 22 Oct 2024 01:00:16 +0000 An unfinished vanity project in one of the poorest regions of China – made infamous on social media several years ago over its hefty price tag – has been thrust back into the spotlight, as Beijing considers more extensive stimulus to rescue its debt-ridden local governments and buoy economic growth. Dushan, a county with a population of just over 350,000 in the landlocked southwest province of Guizhou, caught the nation’s attention in 2020 after a video spread online featuring some of the area’s... https://www.scmp.com/economy/china-economy/article/3282938/chinese-county-infamous-lavish-projects-back-spotlight-local-debts-linger?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3282938/chinese-county-infamous-lavish-projects-back-spotlight-local-debts-linger?utm_source=rss_feed Mon, 21 Oct 2024 05:00:07 +0000 China has reported the lowest quarterly economic growth since the middle of last year, though Beijing’s fiscal stimulus plan should help the nation achieve 2024’s annual growth target of “around 5 per cent”, according to analysts. The world’s second-largest economy grew in the July-September period by 4.6 per cent compared with a year earlier, the National Bureau of Statistics (NBS) said on Friday. The headline gross domestic product growth figure was largely in line with the 4.58 per cent... https://www.scmp.com/economy/economic-indicators/article/3282827/china-gdp-economy-grew-46-third-quarter-blow-annual-target?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3282827/china-gdp-economy-grew-46-third-quarter-blow-annual-target?utm_source=rss_feed Fri, 18 Oct 2024 02:00:44 +0000 China’s commercial aircraft have received interest from Laos, after Premier Li Qiang rolled his sleeves up to promote the symbol of advanced Chinese manufacturing and technology during his Southeast Asia tour. In a joint communique with China’s Southeast Asian neighbour on Saturday, the countries agreed to strengthen cooperation under China’s Belt and Road Initiative and Laos’ strategy of going from “landlocked to land-linked”. “China appreciates Laos’ interest in and intention to cooperate on... https://www.scmp.com/economy/global-economy/article/3282255/china-eyes-route-c919-southeast-asia-landlocked-laos-radar?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3282255/china-eyes-route-c919-southeast-asia-landlocked-laos-radar?utm_source=rss_feed Mon, 14 Oct 2024 10:00:13 +0000 Chinese vice-premier He Lifeng has called for more loans and home delivery guarantees for targeted “white list” real estate projects to help stabilise a housing market that has been a stumbling block to the country’s economic recovery. He made the remarks during a trip from Thursday to Saturday to the industrial city of Taiyuan in north China’s Shanxi province as well as Xian in neighbouring Shaanxi province, according to a report by state news agency Xinhua on Saturday. He said the property... https://www.scmp.com/news/china/article/3282174/chinese-vice-premier-urges-more-white-list-lending-stabilise-housing-market?utm_source=rss_feed https://www.scmp.com/news/china/article/3282174/chinese-vice-premier-urges-more-white-list-lending-stabilise-housing-market?utm_source=rss_feed Sun, 13 Oct 2024 12:00:09 +0000 China’s monetary policy easing did not spike inflation last month, with both consumer and producer price growth falling short of expectations and deflationary pressures continuing to bite. The consumer price index (CPI), a key gauge of inflation, grew by 0.4 per cent year on year in September, compared to an increase of 0.6 per cent in August, the National Bureau of Statistics (NBS) said on Sunday. The reading fell short of the expected 0.7 per cent growth projected by economists polled by... https://www.scmp.com/economy/economic-indicators/article/3282157/chinas-september-inflation-misses-market-expectation-despite-monetary-easing?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3282157/chinas-september-inflation-misses-market-expectation-despite-monetary-easing?utm_source=rss_feed Sun, 13 Oct 2024 04:07:25 +0000 It is no coincidence that Nansha, a district in Guangdong province’s capital city of Guangzhou, chose to showcase China’s advances in drones, electric vertical take-off and landing (eVTOL) aircraft and unmanned boat technology during the week-long National Day holiday. In particular, a demonstration by an EH216-S – a passenger-carrying pilotless eVTOL aircraft manufactured by the Guangzhou-based Ehang – was a “charming experience of future unmanned aerial transportation”, the Yangcheng Evening... https://www.scmp.com/economy/china-economy/article/3281685/how-high-can-low-altitude-economy-soar-us-china-battle-supremacy?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3281685/how-high-can-low-altitude-economy-soar-us-china-battle-supremacy?utm_source=rss_feed Wed, 09 Oct 2024 13:00:10 +0000 The window for a fiscal expansion to aid in China’s economic recovery might be narrower than previously thought, analysts said, as any new round of stimulus would need to be approved by the nation’s top legislature – a body whose governing committee has a meeting scheduled for later this month. Officials of the National Development and Reform Commission (NDRC), the country’s foremost economic planner, said on Tuesday they would speed up government spending while largely reiterating plans to... https://www.scmp.com/economy/policy/article/3281546/chinas-space-fiscal-stimulus-could-be-limited-amid-debt-woes-analysts?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3281546/chinas-space-fiscal-stimulus-could-be-limited-amid-debt-woes-analysts?utm_source=rss_feed Wed, 09 Oct 2024 00:30:09 +0000 China should issue at least 10 trillion yuan (US$1.4 trillion) worth of long-term special treasury bonds to boost consumption and help local governments to pay off debt owed to the private sector, a leading Chinese economist said. The suggestion from Mao Zhenhua, co-director of Renmin University’s Institute of Economic Research, came as analysts widely expect Beijing to come up with a fiscal stimulus package following a raft of interest rate cuts and monetary policy easing last week, which had... https://www.scmp.com/economy/policy/article/3280954/chinas-fiscal-package-needs-be-sizeable-be-effective-maintain-momentum-economist?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3280954/chinas-fiscal-package-needs-be-sizeable-be-effective-maintain-momentum-economist?utm_source=rss_feed Fri, 04 Oct 2024 00:30:09 +0000 Expectations are high that China would follow this week’s wide-ranging stimulus package by selling at least 1 trillion yuan (US$142 billion) of special treasury bonds and by lifting its budget deficit ratio, possibly in the next two to four weeks, analysts said. Tuesday’s raft of interest rate cuts and monetary policy easing were seen as part of stimulus efforts to help meet China’s “around 5 per cent” economic growth target. The moves were followed up on Thursday as China’s leaders stressed the... https://www.scmp.com/economy/policy/article/3280072/chinas-all-out-action-plan-could-gather-pace-2-4-weeks-fiscal-loosening-analysts?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3280072/chinas-all-out-action-plan-could-gather-pace-2-4-weeks-fiscal-loosening-analysts?utm_source=rss_feed Fri, 27 Sep 2024 02:00:16 +0000 By announcing a slew of bombshell measures to support the economy, Beijing is inching towards a strategic shift in macro policy amid fears of an economic free fall, according to analysts. The announcements represented a change from policymakers’ previous approach of drip-feeding piecemeal support measures to a coordinated package of stimulus measures, the analysts added. “We can no longer ‘squeeze out the toothpaste’,” said Zhu Tian, an economics professor with the China Europe International... https://www.scmp.com/economy/policy/article/3279798/chinas-new-stimulus-strategic-pivot-policy-or-tactical-move-analysts-weigh?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3279798/chinas-new-stimulus-strategic-pivot-policy-or-tactical-move-analysts-weigh?utm_source=rss_feed Wed, 25 Sep 2024 04:00:08 +0000 For Zheng Bo, August was the tipping point. In anticipation of an interest-rate cut from the US Federal Reserve, Zheng – founder of Livall, a Shenzhen-based producer of smart bicycles and helmets – began converting his US dollar-denominated assets into yuan. Up to then, exporters like Zheng had been hoarding their US dollar holdings to reap higher returns – sometimes as much as 5 per cent annually – compared to yuan deposits with typically lower yields. But some exporters expressed concerns over... https://www.scmp.com/economy/china-economy/article/3279645/chinas-yuan-gains-ground-after-rate-cuts-exporters-us-dollar-exodus?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3279645/chinas-yuan-gains-ground-after-rate-cuts-exporters-us-dollar-exodus?utm_source=rss_feed Mon, 23 Sep 2024 13:00:14 +0000 While viewing China as less likely to dump US government bonds amid easing pressure on the yuan from lower US interest rates, analysts warn that Beijing’s ongoing diversification plan still prevents it from adding a significant amount of US Treasuries. Foreign holdings of US Treasuries rose to a record high in July in anticipation of the Federal Reserve’s rate cut, data from the US Department of the Treasury showed on Wednesday. China’s holding of US government bond assets dropped to US$776.5... https://www.scmp.com/economy/global-economy/article/3279176/after-feds-rate-cut-will-china-dump-or-buy-more-us-debt?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3279176/after-feds-rate-cut-will-china-dump-or-buy-more-us-debt?utm_source=rss_feed Thu, 19 Sep 2024 12:30:20 +0000 China’s export growth faces increasing risks as pressure to raise import tariffs spreads beyond advanced countries to less-developed ones amid tit-for-tat retaliations and concerns about excess capacity, according to analysts. The world’s second-largest economy, long seen as the so-called workshop of the world, has been on the receiving end of measures targeting its solar panels, electric vehicles (EVs), steel, aluminium and even low-value retail goods. Mounting tariffs on Chinese exports could... https://www.scmp.com/economy/global-economy/article/3278902/china-trade-tased-all-sides-backing-beijing-economic-bind-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3278902/china-trade-tased-all-sides-backing-beijing-economic-bind-analysts?utm_source=rss_feed Tue, 17 Sep 2024 22:00:22 +0000 An interest-rate cut by the US Federal Reserve could give China room to ease its monetary policy and reduce capital outflow risks for the world’s second-largest economy, according to analysts. And although an interest rate cut by China may not be imminent, a cut in the reserve requirement ratio (RRR) – the amount of cash that commercial banks must hold as reserves - may be more preferred, they added. Markets widely expect the US central bank to lower its benchmark borrowing rate by at least 25... https://www.scmp.com/economy/global-economy/article/3278731/fed-rate-cut-opening-door-china-likely-ease-economic-issues-grow-analysts?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3278731/fed-rate-cut-opening-door-china-likely-ease-economic-issues-grow-analysts?utm_source=rss_feed Mon, 16 Sep 2024 14:00:09 +0000 China’s property market remains the biggest downside risk to its economic growth target this year, with policymakers seemingly not in a hurry to make significant changes because its impact is mostly confined to the world’s second-largest economy, according to the chief economist for a global ratings agency. “China has the savings to deal with this. It’s not really spilling over too much to the rest of the world,” said Paul Gruenwald, global chief economist at S&P Global Ratings. “So they’re not... https://www.scmp.com/economy/china-economy/article/3278101/china-has-savings-deal-property-crisis-no-global-spillover-economist?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3278101/china-has-savings-deal-property-crisis-no-global-spillover-economist?utm_source=rss_feed Wed, 11 Sep 2024 11:30:14 +0000 When video clips of crowds scarfing down barbecue skewers in the industrial city of Zibo went viral on social media last year, it became an unexpected role model for spurring consumption in other Chinese regions with economies in the doldrums. But Zibo’s success in capitalising on the popularity of grilled foods on a stick, by highlighting it in a tourism drive that earned it the nickname of China’s “outdoor barbecue capital”, appears to have done little to fire up its deteriorating... https://www.scmp.com/economy/economic-indicators/article/3278102/chinas-barbecue-capital-reality-bites-debt-risk-stokes-fire-economic-distress?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3278102/chinas-barbecue-capital-reality-bites-debt-risk-stokes-fire-economic-distress?utm_source=rss_feed Wed, 11 Sep 2024 09:00:17 +0000 China has renewed its financial pledges to African nations – even as its economy lurches and geopolitical friction with the West worsens – in a move analysts said shows the country will not let domestic strife disrupt the pursuit of its objectives in the region. Beijing earmarked a total of 360 billion yuan (US$50.6 billion) – including 210 billion yuan in loans, 80 billion yuan in aid, and at least 70 billion yuan of Chinese companies’ investment – to Africa over the next three years as... https://www.scmp.com/economy/global-economy/article/3277542/china-rolls-out-new-africa-financing-staying-course-despite-slowdown-home?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3277542/china-rolls-out-new-africa-financing-staying-course-despite-slowdown-home?utm_source=rss_feed Sat, 07 Sep 2024 14:00:08 +0000 China should “accurately” judge the impact its tech gap with the United States has on international relations and productivity, a former tax official said. Xu Shanda, a former deputy director of the State Administration of Taxation, also urged Beijing to prioritise boosting consumption and the confidence of the private sector in its latest reform plans. In an article published by the Beijing-based SSEC Research Institute think tank on Tuesday, Xu said that China should not underestimate the... https://www.scmp.com/economy/global-economy/article/3277178/china-urged-fully-evaluate-wider-impact-us-tech-war?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3277178/china-urged-fully-evaluate-wider-impact-us-tech-war?utm_source=rss_feed Wed, 04 Sep 2024 12:30:10 +0000 Amanda Lee Amanda Lee China needs to “urgently” standardise ways to recover billions of yuan worth of funds from confiscated digital assets, according to a legal expert, following last month’s revision of laws targeting money laundering using virtual currencies. In an article published on Tuesday in the People’s Court Daily, a publication owned by the Supreme People’s Court in China, Yang Kai, a professor with the East China University of Political Science and Law, said law enforcement authorities faced difficulties... https://www.scmp.com/economy/china-economy/article/3277193/chinas-money-laundering-crackdown-needs-urgent-plan-recover-illicit-digital-assets?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3277193/chinas-money-laundering-crackdown-needs-urgent-plan-recover-illicit-digital-assets?utm_source=rss_feed Wed, 04 Sep 2024 11:30:07 +0000 China’s yuan is likely to continue its gains against the US dollar, although further sustained appreciation would largely depend on the scale of the interest rate cuts by the US Federal Reserve, as well as the recovery in the world’s second-largest economy, analysts said. “The key driver for yuan, together with other Asian currencies, will be the extent of the Fed rate cutting cycle,” said Heng Koon How, head of markets strategy at UOB Group. “We do expect further possible gradual monetary... https://www.scmp.com/economy/economic-indicators/article/3276877/chinas-yuan-continue-gain-against-us-dollar-outlook-hinges-fed-analysts?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3276877/chinas-yuan-continue-gain-against-us-dollar-outlook-hinges-fed-analysts?utm_source=rss_feed Mon, 02 Sep 2024 09:42:53 +0000 When China’s home-grown ARJ21 regional jet was delivered to Indonesian airline TransNusa in May, the leasing deal was carried out using the yuan, with the arrangement hailed as a milestone in the internationalisation of the Chinese currency. “This pioneering transaction highlights the high level of openness in the Lingang Special Area, promoting yuan internationalisation and strengthening international cooperation,” the Shanghai government said at the start of June. The aircraft was exported... https://www.scmp.com/economy/global-economy/article/3276587/can-chinas-yuan-now-familiar-face-around-world-become-must-have-currency?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3276587/can-chinas-yuan-now-familiar-face-around-world-become-must-have-currency?utm_source=rss_feed Sat, 31 Aug 2024 22:00:17 +0000 Payment issues reported by Chinese exporters trading with Russian companies have triggered discussions and planning in barter trades. Threats from the United States have prompted many Chinese banks to refrain from conducting business with Russian entities over concerns of losing access to the global financial system. But China has already been exploring “new types” of barter trades since 2021, with local governments encouraged to devise appropriate measures to facilitate trade without the use of... https://www.scmp.com/economy/global-economy/article/3276406/chinas-barter-trade-experiment-working-sanctions-risk-grows?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3276406/chinas-barter-trade-experiment-working-sanctions-risk-grows?utm_source=rss_feed Thu, 29 Aug 2024 15:00:09 +0000 China is gradually resolving a series of financial risks and will press on with a supportive monetary policy to ensure an economic recovery, the country’s central bank chief said on the weekend. In an interview aired on Saturday, People’s Bank of China (PBOC) governor Pan Gongsheng told state broadcaster CCTV that the number of local government financing platforms and the level of outstanding debt had continued to fall. Local government financing platforms are companies that borrow on behalf of... https://www.scmp.com/economy/china-economy/article/3275813/china-push-supportive-monetary-policy-financial-risks-ease-central-bank-chief?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3275813/china-push-supportive-monetary-policy-financial-risks-ease-central-bank-chief?utm_source=rss_feed Sun, 25 Aug 2024 09:00:10 +0000 China’s industry ministry directed all regions to suspend a steel industry upgrade programme from Friday, with producers facing mounting losses amid a “harsh winter” that is worse than the global financial crisis of 2008. The world’s top steel producer has been working to cut capacity within its steel industry for years in a bid to reduce oversupply and pollution. The replacement programme, introduced in 2015, is aimed at reducing iron and steel capacity by requiring new facilities to be smaller... https://www.scmp.com/economy/china-economy/article/3275651/chinas-steelmakers-face-cruel-reality-harsh-winter-comes-embattled-industry?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3275651/chinas-steelmakers-face-cruel-reality-harsh-winter-comes-embattled-industry?utm_source=rss_feed Sat, 24 Aug 2024 02:00:16 +0000 Cryptocurrencies, online game coins and tipping during live streaming would be considered money laundering in China, according to the highest judicial bodies, marking the first instance of Beijing revising its laws to target the use of virtual assets. The Supreme People’s Court and the Supreme People’s Procuratorate said on Monday that the 13 revisions would take effect from Tuesday. The transfer and conversion of criminal proceeds and their benefits through virtual asset transactions and... https://www.scmp.com/economy/china-economy/article/3275211/china-targets-cryptocurrencies-online-game-coins-intensified-money-laundering-crackdown?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3275211/china-targets-cryptocurrencies-online-game-coins-intensified-money-laundering-crackdown?utm_source=rss_feed Tue, 20 Aug 2024 11:30:10 +0000 Senior finance officials from China and the United States agreed to carry out timely communication in times of financial stress to reduce uncertainty during a two-day meeting in Shanghai last week. On Monday, the People’s Bank of China said the fifth meeting of the Financial Working Group held “professional, pragmatic, candid and constructive” talks on Thursday and Friday. The central bank said the two sides signed an agreement to “strengthen” financial stability cooperation and exchanged lists... https://www.scmp.com/economy/global-economy/article/3275045/us-china-financial-working-group-seek-strengthen-cooperation-times-stress?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3275045/us-china-financial-working-group-seek-strengthen-cooperation-times-stress?utm_source=rss_feed Mon, 19 Aug 2024 11:00:18 +0000 As China presses on to harness the power of the data to close loopholes in tax collection amid a new round of fiscal and tax reforms to improve tax revenue, the latest phase of the Golden Tax System will be key to enhancing tax law enforcement and efficiency. What is China’s Golden Tax System? China’s Golden Tax System is a broad tax IT administration and monitoring system, first rolled out in 1994, and now in its third phase of operation. A key function is the control of the creation of... https://www.scmp.com/economy/economic-indicators/article/3274806/chinese-taxmans-secret-weapon-crack-down-evasion-phase-iv-golden-tax-system?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3274806/chinese-taxmans-secret-weapon-crack-down-evasion-phase-iv-golden-tax-system?utm_source=rss_feed Sat, 17 Aug 2024 09:00:16 +0000 China should promote its indigenous cross-border interbank system to reduce risks to its financial security, a senior researcher for a state-owned bank has said, as the drawbacks of a US-centred global monetary system have become too prominent to ignore. The deterioration of China-US relations and repeated threats from Washington to kick Chinese commercial banks out of the global financial system means it is difficult for the country’s financial security to stay unaffected, said Yuan Benxiang,... https://www.scmp.com/economy/china-economy/article/3274621/chinas-interbank-system-promoted-safeguard-against-swift-consequences?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3274621/chinas-interbank-system-promoted-safeguard-against-swift-consequences?utm_source=rss_feed Thu, 15 Aug 2024 12:30:18 +0000 Some local governments in China have been leading discussions and making plans to begin barter trades with Russia amid media reports that the two countries will start using such goods-for-goods deals to circumvent Western sanctions. Last month, officials from the northeastern Chinese province of Heilongjiang, which shares a border with Russia, met officials from the eastern province of Shandong in its port city Qingdao to “deepen understanding of barter trade and business experience” and to... https://www.scmp.com/economy/economic-indicators/article/3274320/china-russia-could-skirt-us-sanctions-barter-trade-deals-break-tradition?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3274320/china-russia-could-skirt-us-sanctions-barter-trade-deals-break-tradition?utm_source=rss_feed Tue, 13 Aug 2024 12:30:17 +0000 Anticipation of US interest rate cuts in September drove China’s yuan to a seven-month high against the US dollar on Monday, and also boosted the Japanese yen, with some analysts expecting the outlook for the Chinese currency would still largely depend on the strength of the US dollar. On Monday, the onshore yuan rallied to a high of 7.1150 per US dollar during morning trading, and closed the domestic session at 7.1385, the strongest level since January 2. The yen also surged by as much as 3.4... https://www.scmp.com/economy/economic-indicators/article/3273237/stock-sell-sweeps-asia-chinas-yuan-surges-us-rate-cut-loom?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3273237/stock-sell-sweeps-asia-chinas-yuan-surges-us-rate-cut-loom?utm_source=rss_feed Mon, 05 Aug 2024 08:09:22 +0000 Mao Zhenhua is the founder of China Chengxin Credit Rating Group and co-director of Renmin University’s Institute of Economic Research. He is a regular commentator on China’s economy, has been a professor at the University of Hong Kong’s Business School since 2022, and was among the first to warn about the underlying pressure on China’s property prices. In this latest interview in the Open Questions series, Mao analyses China’s struggling property sector, reflects on US-China tensions, surveys... https://www.scmp.com/economy/article/3272987/chinas-property-bender-has-led-long-tough-hangover-economist-mao-zhenhua?utm_source=rss_feed https://www.scmp.com/economy/article/3272987/chinas-property-bender-has-led-long-tough-hangover-economist-mao-zhenhua?utm_source=rss_feed Sun, 04 Aug 2024 22:00:17 +0000 China needs to prevent a large slide of the yuan’s exchange rate, appropriately cut interest rates and stabilise the property market to help boost its weak domestic demand as it can no longer count on high export growth to drive its economy, according to a leading economist. “High export growth is unsustainable,” Lu Ting, chief China economist for Japanese investment bank Nomura, told a conference in Guangzhou arranged by the Guangzhou Development District Holding Group and the Shanghai-based... https://www.scmp.com/economy/global-economy/article/3272938/china-urged-stabilise-yuan-lift-domestic-demand-high-exports-unsustainable?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3272938/china-urged-stabilise-yuan-lift-domestic-demand-high-exports-unsustainable?utm_source=rss_feed Fri, 02 Aug 2024 06:50:47 +0000 Live-streamers and test drivers of smart cars have been added to a list of officially recognised professions in China, a reflection of the country’s growing reliance on its digital sector and smart manufacturing as the economic engines of the future. Other new professions on the list – 19 in all – include artificial intelligence (AI) system application specialist, planning and operations engineer for cultural products, administrator of intelligent manufacturing systems and bioengineering... https://www.scmp.com/economy/china-economy/article/3272665/chinas-live-streamers-ready-their-close-official-jobs-list-updated?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3272665/chinas-live-streamers-ready-their-close-official-jobs-list-updated?utm_source=rss_feed Wed, 31 Jul 2024 11:30:13 +0000 China’s government and the market must work together to develop “new quality productive forces” to compete with other major countries, Vice-Premier He Lifeng said. “Developing new quality productive forces is a long-term task and a systematic project. We need both historical patience and a sense of urgency,” he wrote in an article published by the People’s Daily newspaper on Tuesday. “We must not only plan systematically and promote it, but also adopt appropriate ways to prevent... https://www.scmp.com/economy/global-economy/article/3272495/chinese-vice-premier-lays-out-road-map-industrial-policy-unprecedented-time?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3272495/chinese-vice-premier-lays-out-road-map-industrial-policy-unprecedented-time?utm_source=rss_feed Tue, 30 Jul 2024 13:30:08 +0000 China’s rescue plan to resolve its local government debt crisis has thus far provided only temporary fixes, with default risks remaining significant and the debt pile set to grow in the coming two years, according to a new S&P Global Ratings report. A series of measures implemented a year ago after a meeting of the Politburo – the centre of power within the Communist Party – included a debt-swap programme and loan restructuring aimed at defusing what threatens to be a financial time bomb that... https://www.scmp.com/economy/economic-indicators/article/3272025/chinas-crippling-debt-levels-seen-worsening-government-measures-focus-buying-time?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3272025/chinas-crippling-debt-levels-seen-worsening-government-measures-focus-buying-time?utm_source=rss_feed Fri, 26 Jul 2024 10:15:12 +0000 After China’s central bank cut its fourth key rate this week on Thursday, analysts expect more policy easing amid a greater determination from Beijing to shore up the country’s economic activities. The one-year medium-term lending facility (MLF) rate was unexpectedly lowered from 2.5 per cent to 2.3 per cent by the People’s Bank of China on Thursday, a signal interpreted by many as the start of a rate reduction cycle that could help China’s economy accomplish this year’s “around 5 per cent”... https://www.scmp.com/economy/economic-indicators/article/3271776/china-cuts-one-year-policy-rate-latest-step-shore-economic-activities?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3271776/china-cuts-one-year-policy-rate-latest-step-shore-economic-activities?utm_source=rss_feed Thu, 25 Jul 2024 01:39:07 +0000 China’s “high quality” companies have been encouraged to borrow medium- and long-term debt abroad, amid a contraction in offshore US dollar fundraising for Chinese firms this year following a series of defaults by property developers. But the companies must comply with several criteria, including compliance with national policies, while their business operations must align with national macroeconomic controls and industrial policies, the National Development and Reform Commission (NDRC) said on... https://www.scmp.com/economy/global-economy/article/3271716/chinas-nudges-high-quality-firms-seek-overseas-debt-funding?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3271716/chinas-nudges-high-quality-firms-seek-overseas-debt-funding?utm_source=rss_feed Wed, 24 Jul 2024 10:45:11 +0000 China’s new tax-reform plans decided at this week’s third plenum will focus on raising income for local governments, as well as support from the central government, in response to the financial difficulties facing many regions, a senior Communist Party official said on Friday. “In response to the financial difficulties of local governments and grass-roots organisations, it has been proposed to improve the financial relationship between the central and local governments,” Han Wenxiu, deputy... https://www.scmp.com/economy/china-economy/article/3271137/china-puts-tax-reform-sights-leaders-mull-governments-role-alleviating-pressure?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3271137/china-puts-tax-reform-sights-leaders-mull-governments-role-alleviating-pressure?utm_source=rss_feed Fri, 19 Jul 2024 10:00:28 +0000 Financial institutions in China and Russia are exploring ways to boost cross-border payments, according to Beijing’s ambassador to Moscow, amid new US sanctions aimed at interrupting financial links between the neighbours. “Currently, the relevant financial institutions of China and Russia are studying the possibility of cooperation on the Mir payment system,” said Zhang Hanhui in an interview with Russia’s state-backed Izvestia newspaper on Wednesday. Russia’s home-grown Mir payment system was... https://www.scmp.com/economy/global-economy/article/3270980/china-russia-eye-stronger-cross-border-payments-sanctions-create-time-bomb?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3270980/china-russia-eye-stronger-cross-border-payments-sanctions-create-time-bomb?utm_source=rss_feed Thu, 18 Jul 2024 13:00:18 +0000 A slew of disappointing economic data from China spurred some major investment banks to cut their 2024 growth forecasts to below Beijing’s annual target, with some highlighting significant downside risks in the coming months. Barclays reduced its gross domestic product forecast from 5 per cent to 4.8 per cent, while Goldman Sachs cut its prediction from 5 per cent to 4.9 per cent after China on Monday released lower than expected second-quarter growth of 4.7 per cent compared to a year... https://www.scmp.com/economy/economic-indicators/article/3270647/chinas-gdp-forecasts-cut-some-banks-below-5-target-beijing-facing-critical-point?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3270647/chinas-gdp-forecasts-cut-some-banks-below-5-target-beijing-facing-critical-point?utm_source=rss_feed Tue, 16 Jul 2024 08:36:01 +0000 In China’s 10-year treasury bond market, the Ministry of Finance is looking to manage liquidity amid mounting concerns among policymakers that long-term yields have been too low. The ministry said online on Monday that it planned to sell up to 2.5 billion yuan (US$344 million) worth of two types of 10-year treasury bonds on Tuesday to “improve the liquidity of the secondary market for government bonds, and to improve the government bond yield curve that reflects the relationship between market... https://www.scmp.com/economy/economic-indicators/article/3270512/chinas-bond-rally-sends-yields-record-lows-prompting-concerns-disrupting-economy?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3270512/chinas-bond-rally-sends-yields-record-lows-prompting-concerns-disrupting-economy?utm_source=rss_feed Mon, 15 Jul 2024 23:00:13 +0000 Japan has been relying more on China’s supply chain than the US’, according to a recent trade breakdown by Tokyo that reflects how Japan has not sought to decouple from China, but rather “insulate” itself in certain areas. Among imported products that Japan relies heavily on, more than two-thirds came from China in 2022 while only an eighth came from the United States, according to a newly released white paper from Japan’s Ministry of Economy, Trade and Industry. The detailed findings, unveiled... https://www.scmp.com/economy/economic-indicators/article/3270308/how-much-does-japan-need-chinese-imports-and-which-appliance-trade-surprisingly-sizzles?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3270308/how-much-does-japan-need-chinese-imports-and-which-appliance-trade-surprisingly-sizzles?utm_source=rss_feed Sat, 13 Jul 2024 03:00:18 +0000 Kinling Lo,Amanda Lee Kinling Lo,Amanda Lee Newly-registered unmanned aircraft or drones surged by 48 per cent in China in the first six months of the year amid a push for the “low-altitude economy” to foster high-value jobs, bolster innovation in science and technology and inject momentum into the overall economy. There were 608,000 new unmanned aerial vehicles (UAVs) registered in China in the first six months of the year, bringing the total to over 1.87 million, according to data provided by the Civil Aviation Administration of China... https://www.scmp.com/economy/china-economy/article/3269953/chinas-low-altitude-economy-soars-uavs-rise-48-regulator-eyes-healthy-development?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3269953/chinas-low-altitude-economy-soars-uavs-rise-48-regulator-eyes-healthy-development?utm_source=rss_feed Thu, 11 Jul 2024 01:04:29 +0000 China’s central bank should take an active role in reducing the financial burden of hundreds of millions of homeowners, and the government should step in to provide affordable housing to migrant workers – actions which would both serve to release much-needed consumer demand, a former government researcher has said. Many residents in China are still paying hefty interest on their mortgages because they bought their homes when prices were high, said Zhou Tianyong, a professor with the Dongbei... https://www.scmp.com/economy/china-economy/article/3269921/chinas-homebuyers-crying-out-help-analysts-say-time-ripe-mortgage-relief?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3269921/chinas-homebuyers-crying-out-help-analysts-say-time-ripe-mortgage-relief?utm_source=rss_feed Wed, 10 Jul 2024 11:00:17 +0000 China’s central bank will step in to take control of interest rates with additional open market operations from Monday, while also tightening the band within which short-term interest rates can fluctuate. The People’s Bank of China will conduct temporary bond repurchases or reverse repurchases to make open market operations more efficient and keep banking system liquidity ample. The additional operations would be conducted “depending on the market situation” between 4pm and 4.20pm each working... https://www.scmp.com/economy/economic-indicators/article/3269573/chinas-central-bank-ups-control-interest-rates-new-operations-amid-reform-push?utm_source=rss_feed https://www.scmp.com/economy/economic-indicators/article/3269573/chinas-central-bank-ups-control-interest-rates-new-operations-amid-reform-push?utm_source=rss_feed Mon, 08 Jul 2024 07:08:32 +0000