https://www.scmp.com/rss/266883/feed Karen Yeung joined the Post in 2017 after more than 15 years' experience on global newswires in Hong Kong and Shanghai. She spent eight years in Shanghai and has received awards for best feature, analysis and agenda-setting. en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com This is the fourth in a series of stories looking at China’s Xinjiang province and how the far-western region is coping economically under a series of US sanctions over alleged human rights violations and the widespread use of forced labour. Spending on public security and poverty reduction in China’s Xinjiang Uygur autonomous region is expected to increase after the US withdrawal from Afghanistan, but indebted state-owned enterprises (SOEs), including the sprawling Xinjiang Production and... https://www.scmp.com/economy/china-economy/article/3151581/chinas-xinjiang-faces-hidden-risk-debt-heavy-xpcc-spending?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3151581/chinas-xinjiang-faces-hidden-risk-debt-heavy-xpcc-spending?utm_source=rss_feed Thu, 07 Oct 2021 22:14:36 +0000 Karen Yeung Karen Yeung Central banks in Australia, Singapore, Malaysia and South Africa will join forces to test the use of multiple central bank digital currencies (CBDCs) on a shared platform for cross border payments and settlements. Led by the Bank for International Settlements (BIS) Innovation Hub in Singapore, Project Dunbar is aimed at allowing financial institutions to transact with each other in the digital currencies issued by participating central banks, cutting the time and cost of transactions, the BIS... https://www.scmp.com/economy/china-economy/article/3147311/australia-malaysia-singapore-join-forces-test-digital?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3147311/australia-malaysia-singapore-join-forces-test-digital?utm_source=rss_feed Thu, 02 Sep 2021 09:15:20 +0000 A tier-one state-owned lender that drew Beijing’s ire earlier this year for running afoul of rules and regulations has abruptly announced it will halt its foreign exchange trading business – the latest such curbing of services by major Chinese banks this year. Huaxia Bank attempted to downplay concerns and confusion that arose after it pulled its original announcement posted online on Monday and issued a revised statement on Tuesday. In its first statement, the Beijing-based bank said it would... https://www.scmp.com/economy/china-economy/article/3147211/huaxia-joins-chinese-banks-halting-forex-services-amid?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3147211/huaxia-joins-chinese-banks-halting-forex-services-amid?utm_source=rss_feed Wed, 01 Sep 2021 13:30:16 +0000 Geopolitical tensions and the coronavirus are expected to challenge Beijing’s bid to further increase the global use of the yuan even after its share of China’s cross-border payments hit a record high last year. China’s cross-border settlements denominated in yuan accounted for 47.4 per cent of all of domestic and foreign currency transactions last year, 9.28 percentage points higher than 2019, according to a report on the yuan’s internationalisation by the China Banking... https://www.scmp.com/economy/china-economy/article/3146130/chinas-yuan-internationalisation-faces-coronavirus?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3146130/chinas-yuan-internationalisation-faces-coronavirus?utm_source=rss_feed Tue, 24 Aug 2021 16:00:11 +0000 China will now allow couples to have up to three children, marking a major shift from the strict policies of the past four decades, but a lack of childcare options may limit the number of people willing to take up this option. While China’s birth rates have been on a downward trend in recent years, they may hit the lowest level on record this year as families delay pregnancy plans due to concerns over access to medical support or the safety of Covid-19 vaccines, according to a recent analysis by... https://www.scmp.com/news/china/politics/article/3145948/couples-china-can-now-have-three-children-who-going-take-care?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3145948/couples-china-can-now-have-three-children-who-going-take-care?utm_source=rss_feed Sun, 22 Aug 2021 11:59:37 +0000 China’s dire demographic situation should help convince policymakers to further open up its capital account to allow citizens to invest more internationally, thereby helping boost the returns of the nation’s massive savings, according to a former director of international payments under China’s State Administration of Foreign Exchange (SAFE). China’s foreign exchange reserves currently account for most of its foreign assets and are mainly invested in low-yield US Treasury securities. Chinese... https://www.scmp.com/economy/china-economy/article/3145522/can-china-boost-foreign-asset-returns-ease-impact-economic?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3145522/can-china-boost-foreign-asset-returns-ease-impact-economic?utm_source=rss_feed Wed, 18 Aug 2021 14:15:19 +0000 China’s central bank has shed some light on its latest foreign exchange policy six years on from a devaluation of the yuan that was meant to be a free-market reform but instead sent shock waves through global financial markets. The People’s Bank of China (PBOC) has pledged to guide financial institutions to provide businesses with exchange rate risk management services based on the principals of “actual needs” for holding foreign currencies and balanced “neutral risk” to prevent sharp currency... https://www.scmp.com/economy/china-economy/article/3144769/chinas-2015-yuan-reform-sent-shock-waves-through-financial?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3144769/chinas-2015-yuan-reform-sent-shock-waves-through-financial?utm_source=rss_feed Thu, 12 Aug 2021 05:30:14 +0000 This is the seventh part in a series of stories looking at China’s economic outlook in the second half of 2021 as it continues its recovery from a coronavirus-hit 2020. China’s economy is normalising after bouncing back from the worst of the coronavirus pandemic last year, but anxiety about new virus variants and accompanying economic disruption are dragging on overall consumption. While China’s retail sales were strong in the first half of the year, consumer confidence has not yet fully... https://www.scmp.com/economy/china-economy/article/3144680/chinas-economic-recovery-normalising-after-coronavirus?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3144680/chinas-economic-recovery-normalising-after-coronavirus?utm_source=rss_feed Wed, 11 Aug 2021 22:00:10 +0000 China’s strong economic recovery is expected to fade in the months ahead, putting downward pressure on the yuan exchange rate and consequently creating headwinds for other Asian currencies, analysts said. China is a net importer of goods from many Southeast Asian countries such as Malaysia, Thailand, Vietnam, Singapore and Indonesia, so a slowdown in demand would have knock-on effects for their currencies. Generally the Chinese yuan acts as an important anchor in the regional foreign exchange... https://www.scmp.com/economy/china-economy/article/3144117/why-chinas-economic-slowdown-could-spell-bad-news-asian?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3144117/why-chinas-economic-slowdown-could-spell-bad-news-asian?utm_source=rss_feed Fri, 06 Aug 2021 16:00:19 +0000 Adopting technological applications based on artificial intelligence (AI) into Hong Kong’s banking system raises the risk of prejudicing certain categories of people in a “systematic way”, meaning human intervention remains essential, said the chief executive of the city’s monetary authority. AI and data analytics will make banks more data-driven in their credit scoring and credit allocation, thereby boosting the city’s competitiveness as an international financial centre as it helps increase... https://www.scmp.com/economy/article/3144056/ai-could-create-financial-unfairness-prejudice-without-human-intervention?utm_source=rss_feed https://www.scmp.com/economy/article/3144056/ai-could-create-financial-unfairness-prejudice-without-human-intervention?utm_source=rss_feed Fri, 06 Aug 2021 05:30:15 +0000 This is the first part in a series of stories looking at China’s economic outlook in the second half of 2021 as it continues its recovery from a coronavirus-hit 2020. As US-China relations continue to deteriorate, Beijing is making a major policy shift towards social and economic governance that looks to be setting up a long-term decline in the nation’s corporate productivity and economic growth, according to analysts. For starters, a number of restrictive factors – including demographic... https://www.scmp.com/economy/china-economy/article/3143651/chinas-economy-downshifts-slower-growth-path-focus-turns?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3143651/chinas-economy-downshifts-slower-growth-path-focus-turns?utm_source=rss_feed Tue, 03 Aug 2021 15:00:20 +0000 China’s central bank has pledged to oppose monopolies and unfair competition in the second half of the year as it continues its crackdown on tech giants and internet platform firms. In a statement on Saturday, the People’s Bank of China said it would “supervise and guide platform companies to make comprehensive rectifications in accordance with regulatory requirements”. “[The central bank] will cooperate with relevant departments to resolutely implement the decisions ... of the Communist Party’s... https://www.scmp.com/economy/china-economy/article/3143342/chinas-central-bank-keeps-sights-set-monopolies?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3143342/chinas-central-bank-keeps-sights-set-monopolies?utm_source=rss_feed Sat, 31 Jul 2021 14:25:16 +0000 China has reiterated its commitment to a global minimum tax scheme that would target global technology giants. Finance Minister Liu Kun said on Friday that the introduction of a global minimum corporate tax rate of 15 per cent would help to create a fair and sustainable international tax system. “China is a big digital economy. We have always adhered to the spirit of multilateralism and an open and cooperative attitude,” Liu told a press conference. “We have actively participated in the... https://www.scmp.com/economy/china-economy/article/3143304/china-says-it-will-continue-work-fairer-global-minimum-tax?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3143304/china-says-it-will-continue-work-fairer-global-minimum-tax?utm_source=rss_feed Sat, 31 Jul 2021 05:58:06 +0000 The International Monetary Fund (IMF) on Tuesday cut its economic growth forecast for China this year because of the patchy recovery from new coronavirus variants, as Beijing focuses on reducing debt and public investment. The Washington-based organisation trimmed China’s gross domestic product (GDP) growth estimate to 8.1 per cent, down from April’s projection of 8.4 per cent. But the country’s growth forecast for next year edged up 0.1 percentage points from April to 5.7 per cent. The IMF also... https://www.scmp.com/economy/china-economy/article/3142704/new-covid-19-variants-prompt-imf-slash-china-emerging-asia?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3142704/new-covid-19-variants-prompt-imf-slash-china-emerging-asia?utm_source=rss_feed Tue, 27 Jul 2021 13:00:07 +0000 A trade weighted index looking at the value of China’s yuan climbed to a five-year high last week, and analysts expect the currency to remain at elevated levels in the foreseeable future as the government allows greater flexibility and tries to remove distortions in the economy. A simulated CFETS RMB basket index, which measures the yuan’s value against a number of foreign currencies, climbed to 98.70 on Friday, marking its highest level since March 2016, according to the China Foreign Exchange... https://www.scmp.com/economy/china-economy/article/3142530/chinas-surging-yuan-allows-beijing-greater-financial?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3142530/chinas-surging-yuan-allows-beijing-greater-financial?utm_source=rss_feed Mon, 26 Jul 2021 12:15:20 +0000 Karen Yeung Karen Yeung To mitigate “financial risks”, China needs to weigh the pros and cons of loosening its strict capital controls using a central bank digital currency, according to the director of digital finance at China’s prestigious Peking University. The so-called e-yuan is mainly intended to be used in the domestic retail sector, but a big question that is often discussed is whether it could be useful in internationalising the yuan, in addition to helping with China’s market liberalisation efforts and... https://www.scmp.com/economy/china-economy/article/3141435/chinas-e-yuan-double-edged-sword-and-mishandling-it-carries?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3141435/chinas-e-yuan-double-edged-sword-and-mishandling-it-carries?utm_source=rss_feed Sun, 18 Jul 2021 14:00:25 +0000 Hong Kong’s low tax rate has been a major incentive for American businessman Nicholas Appel to live and work in the city for the past 25 years. But along with challenges like the city’s high cost of living, the prospect of higher taxes under a minimum global corporate tax rate is one more reason to wonder whether it is worth staying. “We really love Hong Kong but it’s not a sustainable place to live in if you don’t have income to support it,” Appel said. “If the profitability of a business as a... https://www.scmp.com/economy/china-economy/article/3140916/global-minimum-tax-could-hong-kongs-status-business-hub-be?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3140916/global-minimum-tax-could-hong-kongs-status-business-hub-be?utm_source=rss_feed Wed, 14 Jul 2021 03:00:06 +0000 China has welcomed Russia’s efforts to give the yuan a bigger role in its sovereign wealth fund, saying it reflected Russia’s confidence in China’s economic development and the prospects for cooperation between the two countries. Chinese foreign ministry spokesman Wang Wenbin said on Friday that China would continue to deepen mutually beneficial cooperation with Russia, firmly support each other in international and regional affairs, and safeguard the common interests of the two countries. The... https://www.scmp.com/economy/china-economy/article/3140624/china-welcomes-bigger-role-yuan-de-dollarised-russian?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3140624/china-welcomes-bigger-role-yuan-de-dollarised-russian?utm_source=rss_feed Sat, 10 Jul 2021 09:29:36 +0000 Karen Yeung Karen Yeung China is well on its way to becoming the world’s first digitalised and cashless economy, allowing it to dictate global financial rules while also enabling Hong Kong to shoulder an important responsibility alongside, according to the former head of the city’s stock exchange operator. For several decades, China has regarded Hong Kong as playing an important role as an extension of the Western world, which is the leader in traditional financial banking. But as China still does not have the ability... https://www.scmp.com/economy/china-economy/article/3140350/china-needs-hong-kong-race-global-financial-leadership-former?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3140350/china-needs-hong-kong-race-global-financial-leadership-former?utm_source=rss_feed Thu, 08 Jul 2021 09:44:54 +0000 China’s decision to back a global overhaul of cross-border taxation aimed at preventing a race to the bottom on tax rates and halting multinational tax evasion is likely to hinge on diplomatic calculations as much as economic concerns, according to experts. The Paris-based Organisation for Economic Cooperation and Development (OECD) said last week 130 nations, including China, had supported a proposal for a minimum tax rate of at least 15 per cent pushed by US President Joe Biden. The agreement... https://www.scmp.com/economy/china-economy/article/3140209/china-has-ample-room-absorb-global-minimum-tax-still-prickly?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3140209/china-has-ample-room-absorb-global-minimum-tax-still-prickly?utm_source=rss_feed Wed, 07 Jul 2021 22:00:15 +0000 China’s post-coronavirus export boom has created massive headaches for its commercial banks over how to effectively recycle the huge influx of foreign currencies resulting from overseas sales, and in turn how to generate investment returns, analysts said. China is also seeing rising capital inflows from other channels, such as foreign direct investment into China’s growing economy, as well as portfolio investment into mainland stocks and bonds. This demand for Chinese assets, in turn, continues... https://www.scmp.com/economy/china-economy/article/3139854/chinas-foreign-currency-deposits-pass-us1-trillion-banks-face?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3139854/chinas-foreign-currency-deposits-pass-us1-trillion-banks-face?utm_source=rss_feed Mon, 05 Jul 2021 12:15:18 +0000 Karen Yeung Karen Yeung Central banks around the world are developing sovereign digital currencies to improve international payments, but one concern that has emerged is that a foreign digital currency could displace a domestic one, especially in smaller Asian nations with less effective financial systems, analysts said. There is potential for a major central bank digital currency (CBDC) to make inroads into daily transactions, causing harmful spillover effects in the domestic financial market and challenging monetary... https://www.scmp.com/economy/china-economy/article/3138622/china-digital-currency-could-beijings-advanced-e-yuan-replace?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3138622/china-digital-currency-could-beijings-advanced-e-yuan-replace?utm_source=rss_feed Fri, 25 Jun 2021 00:00:17 +0000 The Port of Yantian, which is at the epicentre of China’s latest coronavirus-containment efforts, is creating massive headaches across the maritime shipping world and further complicating the process of reopening the global economy. Disruptions to the supply chain for some companies are said to already be worse than those caused by the six-day blockage of the Suez Canal in March, which made global headlines and spawned countless memes on social media. From June 1-15, a total of 298 container... https://www.scmp.com/economy/china-economy/article/3137920/china-shipping-yantian-port-delays-already-worse-those-caused?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3137920/china-shipping-yantian-port-delays-already-worse-those-caused?utm_source=rss_feed Fri, 18 Jun 2021 10:30:00 +0000 Karen Yeung Karen Yeung As the Hong Kong dollar continues to remain strong, attention is turning towards the potential for a digital version to be launched in the city. In line with a strategic plan to promote Hong Kong’s fintech development, the city’s de facto central bank said last week that it had set up a working group to study the feasibility of an e-Hong Kong dollar. “The [Hong Kong Monetary Authority] will come to an initial view on the prospect for an e-Hong Kong dollar in the next 12 months,” Siddharth... https://www.scmp.com/economy/china-economy/article/3137544/hong-kongs-e-dollar-study-spotlight-citys-us-dollar-peg?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3137544/hong-kongs-e-dollar-study-spotlight-citys-us-dollar-peg?utm_source=rss_feed Wed, 16 Jun 2021 22:15:00 +0000 Amid rising anti-globalisation sentiment and as Western countries intensify their efforts to contain China, the country is entering a period of economic development that will create new infrastructure to enable the global use of the yuan, according to a former deputy governor of its central bank. As China’s economy integrates with the rest of the world, market entities will use the yuan for cross-border purposes, although under the so-called dual circulation plan, yuan globalisation is... https://www.scmp.com/economy/china-economy/article/3137000/chinas-yuan-could-become-worlds-currency-choice-2050-under?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3137000/chinas-yuan-could-become-worlds-currency-choice-2050-under?utm_source=rss_feed Fri, 11 Jun 2021 14:00:00 +0000 With relations between Beijing and Canberra showing little sign of improving, Australia’s dollar has been underperforming in recent weeks, and this could work in the country’s favour when it comes to finding alternative markets that would help reduce reliance on its largest trading partner in the long-term. After surging by 10 per cent last year as advanced economies recovered and commodity prices surged, the Australian dollar touched a three-year high of 0.7976 to the US dollar in February. But... https://www.scmp.com/economy/china-economy/article/3136654/china-australia-relations-how-underperforming-australian?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3136654/china-australia-relations-how-underperforming-australian?utm_source=rss_feed Wed, 09 Jun 2021 20:30:00 +0000 Karen Yeung,Andrew Mullen Karen Yeung,Andrew Mullen When will China’s sovereign digital currency be launched? China has not announced an official timetable for the official launch of its Digital Currency Electronic Payment (DCEP) system. The first glimpse of the planned digital currency emerged in April 2020 when a screenshot of a test version developed by the Agricultural Bank of China was leaked. Trials of the digital yuan began in May 2020 in four cities – Shenzhen, Suzhou, Chengdu and the Xiongan zone near Beijing. Foreign consumer brands,... https://www.scmp.com/economy/china-economy/article/3135886/china-digital-currency-when-will-e-yuan-be-launched-and-what?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3135886/china-digital-currency-when-will-e-yuan-be-launched-and-what?utm_source=rss_feed Sun, 06 Jun 2021 12:00:11 +0000 Karen Yeung Karen Yeung From kitchen utensils to fresh vegetables, Shanghai resident Sun Xuhong shops online because there is a much better selection of imported brands than those found in bricks-and-mortar retailers. The range of choices, coupled with seamless connection to mobile payment apps like WeChat Pay and Alipay, is why she has little interest in partaking in China’s sovereign digital currency trials, which have so far been confined to a limited number of retailers and select e-commerce sites. “I opened an... https://www.scmp.com/economy/china-economy/article/3136016/chinas-digital-currency-trials-accelerate-will-users-alipay?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3136016/chinas-digital-currency-trials-accelerate-will-users-alipay?utm_source=rss_feed Sat, 05 Jun 2021 06:00:18 +0000 As China pushes to maintain its central position in the global supply chain, Hong Kong funded-firms are being hit by new challenges on the mainland, including power shortages and skyrocketing production costs, according to an industry group. China’s domestic demand and exports continue to recover from the coronavirus pandemic, with factory orders at about 70 to 80 per cent of pre-pandemic levels, Allen Shi Lop-tak, president of the Chinese Manufacturers’ Association of Hong Kong, said on... https://www.scmp.com/economy/china-economy/article/3135944/hong-kong-manufacturers-struggle-blackouts-rising-producer?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3135944/hong-kong-manufacturers-struggle-blackouts-rising-producer?utm_source=rss_feed Thu, 03 Jun 2021 11:34:27 +0000 The rapid appreciation of the yuan against the US dollar recently is likely to draw increased scrutiny from the Biden administration of China’s opaque exchange rate mechanism, as high-level trade talks resume between the world’s two biggest economies, analysts say. China’s top trade negotiator Liu He held a virtual meeting with US Treasury Secretary Janet Yellen on Wednesday morning, just days after he had a conversation with US Trade Representative Katherine Tai that represented the first... https://www.scmp.com/economy/china-economy/article/3135796/us-china-economic-talks-put-spotlight-yuan-exchange-rate?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3135796/us-china-economic-talks-put-spotlight-yuan-exchange-rate?utm_source=rss_feed Thu, 03 Jun 2021 00:15:17 +0000 China’s central bank said on Monday that it would raise the amount of money that financial institutions must set aside as reserves for their foreign exchange deposits, in the latest move to curb the yuan’s recent rapid appreciation. The increase in the reserve requirement to 7 per cent from 5 per cent will take effect on June 15 and is aimed at strengthening foreign exchange liquidity management for financial institutions, according to a statement by the People’s Bank of China (PBOC). The move... https://www.scmp.com/economy/china-economy/article/3135520/chinas-central-bank-moves-slow-yuans-rise-concerns-rise-over?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3135520/chinas-central-bank-moves-slow-yuans-rise-concerns-rise-over?utm_source=rss_feed Mon, 31 May 2021 12:33:15 +0000 Chinese financial watchdogs have called for tougher international oversight to stop big flows of hot money across borders in the aftermath of the coronavirus pandemic. Addressing the International Finance Forum in Beijing over the weekend, regulators also vowed to have zero tolerance for market manipulators. Liang Tao, vice-chairman of the China Banking and Insurance Regulatory Commission, said that with the recovery of developed economies, market volatility and vulnerabilities had increased as... https://www.scmp.com/news/china/politics/article/3135393/china-calls-global-action-stop-big-flows-pandemic-fuelled-hot?utm_source=rss_feed https://www.scmp.com/news/china/politics/article/3135393/china-calls-global-action-stop-big-flows-pandemic-fuelled-hot?utm_source=rss_feed Sun, 30 May 2021 11:00:19 +0000 The rally in China’s yuan in the past month has fuelled a public debate among central bank officials on whether China should tolerate greater appreciation of the yuan to help combat surging commodity prices and imported inflation. After slipping against the US dollar for the previous four months, the yuan began to rebound in April. On Wednesday, it was changing hands at around 6.40 per dollar after briefly surpassing that level on Tuesday for the first time since June 2018. A lower US... https://www.scmp.com/economy/china-economy/article/3134921/chinas-yuan-rally-fuels-central-bank-debate-using-currency?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3134921/chinas-yuan-rally-fuels-central-bank-debate-using-currency?utm_source=rss_feed Wed, 26 May 2021 11:30:15 +0000 This is the seventh in a series of stories about China’s once-in-a-decade census conducted in 2020. The world’s most populous nation released its national demographic data on Tuesday, and the figures will have far-reaching social policy and economic implications. Given new data showing China’s labour force continues to decline, Beijing is likely to reinforce the message that quality economic growth and improving people’s living standards is more important than the rate of economic expansion in... https://www.scmp.com/economy/china-economy/article/3133542/china-population-beijing-faces-tricky-reforms-unleash-new?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3133542/china-population-beijing-faces-tricky-reforms-unleash-new?utm_source=rss_feed Fri, 14 May 2021 14:15:11 +0000 Chinese inflation is likely to rise moderately in the immediate future, but will avoid an unexpected spike like that seen last month in the United States, analysts said. Still, a sharp rise in raw material prices recently will put pressure on the profit margins of Chinese firms, with some small companies at risk of going out of business. US consumer prices rose 0.8 per cent in April from a month earlier, four times what was expected, with the annual rate jumping to 4.2 per cent, the highest... https://www.scmp.com/economy/china-economy/article/3133398/china-inflation-risks-remain-low-despite-unexpected-surge-us?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3133398/china-inflation-risks-remain-low-despite-unexpected-surge-us?utm_source=rss_feed Thu, 13 May 2021 14:15:10 +0000 Global demand for semiconductors used in everything from computers to cars is proving a boon to Taiwanese manufacturers, who are ramping up investment in mainland China despite cross-strait tensions and an increasingly heated tech war between Washington and Beijing. Taiwanese investment in the mainland rose 29.9 per cent year on year to US$330 million during the first quarter of 2021, Ma Xiaoguang, a spokesman for the Taiwan Affairs Office of China’s State Council said last week. Over the same... https://www.scmp.com/economy/china-economy/article/3133197/us-china-tech-war-helps-drive-taiwanese-semiconductor?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3133197/us-china-tech-war-helps-drive-taiwanese-semiconductor?utm_source=rss_feed Wed, 12 May 2021 11:30:10 +0000 An across-the-board deterioration in US-China relations last year became the top challenge to doing business in China, according to a report released by the American Chamber of Commerce in China on Tuesday. Many long-standing economic and commercial issues that plague the foreign business community remain unaddressed. This includes the amount of support China gives its state-owned enterprises, its preferential treatment for domestically invested enterprises, and its preference for domestic... https://www.scmp.com/economy/china-economy/article/3133077/us-china-tensions-worsen-treatment-foreign-firms-china-amcham?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3133077/us-china-tensions-worsen-treatment-foreign-firms-china-amcham?utm_source=rss_feed Tue, 11 May 2021 11:15:15 +0000 Beijing is expected to loosen capital controls further to give mainland investors a new outbound channel to buy bonds in Hong Kong, providing investment alternatives for Chinese households and companies while boosting liquidity in the city and cementing its status as a global financial hub, analysts said. The so-called southbound link of China’s Bond Connect scheme is likely to be implemented in the second half of the year, Hong Kong’s financial secretary Paul Chan Mo-po was quoted as saying by... https://www.scmp.com/economy/china-economy/article/3132379/chinas-opening-hong-kong-bond-market-mainlanders-signals?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3132379/chinas-opening-hong-kong-bond-market-mainlanders-signals?utm_source=rss_feed Wed, 05 May 2021 12:30:18 +0000 A sharp uptick in coronavirus cases in India and several Asian countries is diverting business to China, ensuring that its manufacturing engine will continue being the main driver of global trade demand, analysts said, pointing to the resilience of China’s economy and capital flows. Last year, the Asia-Pacific region outperformed amid its significantly lower infection and death rates relative to other regions. However, several domestic economic recoveries are being threatened by a combination... https://www.scmp.com/economy/china-economy/article/3132227/chinas-world-factory-status-gets-boost-coronavirus-ravages?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3132227/chinas-world-factory-status-gets-boost-coronavirus-ravages?utm_source=rss_feed Tue, 04 May 2021 13:00:19 +0000 Karen Yeung Karen Yeung China is keen on using evolving blockchain technology that underpins cryptocurrencies to help build its digital economy and quicken adoption of its sovereign digital currency, analysts say, while avoiding the risks that decentralised virtual networks pose to the financial system. Chinese policymakers have recently ruled out cryptocurrencies as mediums of exchange but tacitly supported them as investment vehicles – as long as they serve the real economy and are not purely speculative. Growing... https://www.scmp.com/economy/global-economy/article/3131904/china-digital-yuan-could-backing-bitcoin-investment-help?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3131904/china-digital-yuan-could-backing-bitcoin-investment-help?utm_source=rss_feed Sat, 01 May 2021 12:04:11 +0000 Chinese economic policymakers are caught between a rock and a hard place as they try to piece together a rescue plan for embattled bad-asset manager China Huarong Asset Management. On the one hand, they want to adhere to the market-based principle that investors should bear part of the burden. But on the other, policymakers are trying to avoid saddling those investors with a cost that would hurt future investments in China. Because of Huarong’s many connections to other financial institutions,... https://www.scmp.com/economy/china-economy/article/3130464/china-seen-bailing-out-biggest-bad-debt-manager-while?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3130464/china-seen-bailing-out-biggest-bad-debt-manager-while?utm_source=rss_feed Wed, 21 Apr 2021 10:30:08 +0000 China has banned companies whose main business is financial activities or property investment from listing on the Nasdaq-style Star Market – a move that could potentially close the door on Ant Group floating shares there. Ant, a fintech affiliate of Alibaba Group Holding, has faced increasing pressure from the authorities since its initial public offering was cancelled last year and was recently told by Beijing to restructure into a financial holding group, Under new rules announced on Friday... https://www.scmp.com/business/china-business/article/3130030/chinas-star-market-introduces-new-listing-rules-could?utm_source=rss_feed https://www.scmp.com/business/china-business/article/3130030/chinas-star-market-introduces-new-listing-rules-could?utm_source=rss_feed Sun, 18 Apr 2021 12:07:01 +0000 International criticism of China’s alleged human rights violations has grown louder in recent months, putting downward pressure on Beijing’s efforts to attract foreign capital into its financial markets to support the economy, analysts said. Social issues and corporate governance have become important factors for North American and European fund managers screening their securities investments, and this is taking place amid increasing scrutiny over environmental, social and governance (ESG)... https://www.scmp.com/economy/china-economy/article/3129669/growing-china-human-rights-concerns-risk-curbing-foreign?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3129669/growing-china-human-rights-concerns-risk-curbing-foreign?utm_source=rss_feed Thu, 15 Apr 2021 14:15:10 +0000 The pressure is on for Chinese banks now the country is opening its financial sector to top-flight global competitors. That’s the message from Wang Kun, deputy general manager of the international banking department at the Industrial Commercial Bank of China (ICBC), one of China’s so-called big five banks. “We see competition, with more participants going for the same trophy not only in the traditional retail or corporate banking sectors, but it is also coming from capital markets, where Chinese... https://www.scmp.com/economy/china-economy/article/3127930/could-us-china-tensions-hinder-beijings-plans-integrate?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3127930/could-us-china-tensions-hinder-beijings-plans-integrate?utm_source=rss_feed Mon, 05 Apr 2021 12:00:09 +0000 A string of energy-rich economies appear to be moving closer into China’s orbit, expanding economic ties and potentially fuelling the rise of the petroyuan, analysts say. Chinese Foreign Minister Wang Yi ended a week-long tour on Tuesday of Saudi Arabia, Turkey, Iran, the United Arab Emirates, Bahrain and Oman, vowing to help protect their core interests against foreign interference amid rising pressure from the United States. Facing sanctions itself, China could be looking to secure long-term... https://www.scmp.com/economy/china-economy/article/3128103/could-us-sanctions-and-closer-middle-east-ties-fuel-rise?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3128103/could-us-sanctions-and-closer-middle-east-ties-fuel-rise?utm_source=rss_feed Fri, 02 Apr 2021 16:05:05 +0000 China’s advanced manufacturing “can continue to outperform” traditional manufacturing, driven by heavy policy support from Beijing, after the sector led a key monthly indicator of economic activities in March. Beijing introduced a comprehensive plan during the National People’s Congress (NPC) earlier this month to upgrade its manufacturing capabilities by 2025 via eight priority areas. China’s overall official manufacturing purchasing managers’ index (PMI) – a survey of sentiment among factory... https://www.scmp.com/economy/china-economy/article/3127754/chinas-advanced-manufacturing-upgrade-backed-gather-pace?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3127754/chinas-advanced-manufacturing-upgrade-backed-gather-pace?utm_source=rss_feed Wed, 31 Mar 2021 06:41:28 +0000 The role Hong Kong plays in China’s drive to become a global technological power remains vital as the city boasts world-class universities and an open environment for scientific research, according to a panel of economic planners and experts.  The group gave its ringing endorsement of the city just hours after China’s top legislative body imposed a drastic overhaul of Hong Kong’s political system, sparking anxiety over its international reputation as a banking and financial hub where people are... https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3127680/dont-doubt-hong-kongs-importance-china-say-experts?utm_source=rss_feed https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3127680/dont-doubt-hong-kongs-importance-china-say-experts?utm_source=rss_feed Tue, 30 Mar 2021 23:30:13 +0000 China’s latest joint venture with the Belgium-based SWIFT financial messaging service is a “defensive move” amid ongoing tensions with the United States, highlighted by last week’s fractious talks in Alaska. China’s central bank on Tuesday announced that a newly established joint venture with SWIFT and four Chinese institutions will offer localised financial services to make cross-border transactions more stable and secure. The decision to set up the joint venture with SWIFT comes amid souring... https://www.scmp.com/economy/china-economy/article/3126780/chinas-swift-joint-venture-defensive-move-us-financial-war?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3126780/chinas-swift-joint-venture-defensive-move-us-financial-war?utm_source=rss_feed Wed, 24 Mar 2021 10:45:11 +0000 China’s socialist economic model that mixes strong government direction and support within a market economy is the key to faster development and meeting technology challenges posed by US sanctions, according to Bai Chong-en, dean of the School of Economics and Management at Tsinghua University. The government will play a crucial role in the development of “chokehold technologies”, areas of knowledge where the United States has weaponised its advantages by banning or sharply reducing the ability... https://www.scmp.com/economy/china-economy/article/3126671/us-china-tech-war-state-led-economy-crucial-meet-challenges?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3126671/us-china-tech-war-state-led-economy-crucial-meet-challenges?utm_source=rss_feed Tue, 23 Mar 2021 14:00:15 +0000 Karen Yeung Karen Yeung China’s central bank is trying to build trust in the data protection measures built into the nation’s sovereign digital currency, something analysts say is crucial for widespread adoption among its citizens. Mobile users in China are worried about having to share too much personal information when downloading digital wallets, while the private sector has relatively low trust in privacy protection for anonymous payments, even if they are controlled by the central bank, research has found. Mu... https://www.scmp.com/economy/china-economy/article/3126479/china-digital-yuan-central-bank-seeks-assure-consumers-data?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3126479/china-digital-yuan-central-bank-seeks-assure-consumers-data?utm_source=rss_feed Mon, 22 Mar 2021 15:30:06 +0000