https://www.scmp.com/rss/322182/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Aileen Chuang Aileen Chuang Hong Kong has surged ahead of its global rivals with its landmark stablecoin law, setting the stage for a boom in digital assets and an injection of fresh liquidity into the market, according to brokers. “We’re seeing a significant trend in investments related to stablecoins on our platform, which highlights the growing importance of this sector,” said Daniel Tse, managing director of Futu Securities International, Hong Kong’s largest online brokerage firm, in a written interview on... https://www.scmp.com/business/banking-finance/article/3313390/hong-kongs-stablecoin-law-opens-floodgates-boom-digital-assets?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3313390/hong-kongs-stablecoin-law-opens-floodgates-boom-digital-assets?utm_source=rss_feed Mon, 09 Jun 2025 00:30:10 +0000 Georgina Lee Georgina Lee Chinese online brokerages Tiger Brokers and Futu are planning to expand into cryptocurrency trading, joining western peers such as Robinhood in the US, and Israel’s eToro in attempts to turn volatile digital coins into mainstream assets. The Nasdaq-listed brokers have unveiled their new business plans during first-quarter earnings calls in the past month, competing and segregating for a growing pool of young and mobile traders outside mainland China. The move has come amid China’s crackdown on... https://www.scmp.com/business/banking-finance/article/3135568/tiger-brokers-futu-plan-launch-cryptocurrency-trading?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/3135568/tiger-brokers-futu-plan-launch-cryptocurrency-trading?utm_source=rss_feed Tue, 01 Jun 2021 03:44:02 +0000 Potential mergers and acquisitions along with new product development may help China Mengniu Dairy, the second largest player in the country’s dairy market, to generate better profit and income this year after a drop in 2016, according to one analyst. Mengniu’s share price tumbled 6.5 per cent in April after the company reported a 2016 net loss of 751 million yuan (US$109 million), a dramatic U-turn from the 2.4 billion yuan net profit a year earlier. China International Capital Corporation... https://www.scmp.com/business/companies/article/2092685/mengniu-dairy-looks-yoghurt-beverages-acquisitions-and-growing?utm_source=rss_feed https://www.scmp.com/business/companies/article/2092685/mengniu-dairy-looks-yoghurt-beverages-acquisitions-and-growing?utm_source=rss_feed Wed, 03 May 2017 09:44:06 +0000 The transportation and property sectors are set to become the winners of the Guangdong-Hong Kong-Macau Big Bay Area (粵港澳大海灣), a regional development plan that is most likely to be led by Hong Kong, analysts said. “There are three world-class port cities in the big bay area, namely Hong Kong, Shenzhen and Guangzhou,” China Merchants Securities analyst Zhang Xia said in a research report. “The area is going to be a pivot to the ‘Belt and Road Initiative’ and will probably become the world’s fourth... https://www.scmp.com/business/china-business/article/2089948/transport-property-stocks-gain-southern-chinas-big-bay-area?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2089948/transport-property-stocks-gain-southern-chinas-big-bay-area?utm_source=rss_feed Sun, 23 Apr 2017 12:13:29 +0000 The planned reduction in the US Federal Reserve’s balance sheet will eventually lead the Hong Kong dollar to 7.85 against the greenback, to which it is pegged – the weak side of the allowed value range – and could spark speculative short-selling, prompting intervention by the Hong Kong Monetary Authority (HKMA), according to analysts at Bank of America Merrill Lynch (BofAML). The HK dollar trades between 7.75 and 7.85 to the US dollar. Such an intervention was needed after the Fed started its... https://www.scmp.com/business/china-business/article/2087400/hk-dollar-hit-weakest-level-within-its-peg-system-usd-fed?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2087400/hk-dollar-hit-weakest-level-within-its-peg-system-usd-fed?utm_source=rss_feed Thu, 13 Apr 2017 07:59:38 +0000 Chinese banks have been selling off a wide variety of non-performing loans, ranging from credit card debt to loans to SMEs, as they attempt to tidy up their balance sheets. And the pace of issuance of such securities, backed by non-performing loans, is set to increase this year, according to analysts at Moody’s Investor Service. Some 16.33 billion yuan (US$2.36 billion) worth of securities backed by non-performing loans were issued by Chinese banks between May last year, when the market... https://www.scmp.com/business/china-business/article/2087092/npl-backed-securities-sell-quicken-year?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2087092/npl-backed-securities-sell-quicken-year?utm_source=rss_feed Wed, 12 Apr 2017 10:22:05 +0000 City commercial banks across China are increasingly relying on interbank funding and wealth management products as deposit substitutes– but growing investment holdings, waning liquidity and weakened capital buffers have rendered them more vulnerable to financial disruption, according to analysts at Fitch Ratings. The group of lenders have grown rapidly in the last few years, says a latest study from the ratings agency, with their market share doubling to 12 per cent of system assets at the end... https://www.scmp.com/business/article/2086732/risks-rising-chinas-city-commercial-banks?utm_source=rss_feed https://www.scmp.com/business/article/2086732/risks-rising-chinas-city-commercial-banks?utm_source=rss_feed Tue, 11 Apr 2017 09:26:29 +0000 The number of financial services jobs available in Hong Kong and mainland China soared in the first quarter of the year, despite highly publicised job cuts and the prevailing sense of doom that exists across much of the sector. Some 56 per cent more financial services jobs were available in Hong Kong between January and March 2017 than in the last three months of 2016, according to report from global recruitment consultancy Morgan McKinley, and in mainland China 105 per cent more. The data... https://www.scmp.com/business/article/2085398/surge-number-financial-services-jobs-available-first-three-months-2017?utm_source=rss_feed https://www.scmp.com/business/article/2085398/surge-number-financial-services-jobs-available-first-three-months-2017?utm_source=rss_feed Thu, 06 Apr 2017 07:05:46 +0000 Gold prices could get an unexpected boost in the second quarter on the back of global uncertainties and rising demand in India. Standard Chartered forecasts gold will rise to US$1,260 an ounce during the April to June period with investors looking to the yellow metal as a safe haven as negotiations get underway on Britain’s exit from the European Union and as closely watched elections take place in France on April 23 and May 7. “Early Brexit negotiations and the French elections could boost... https://www.scmp.com/business/global-economy/article/2084712/gold-prices-continue-higher-amid-political-uncertainty?utm_source=rss_feed https://www.scmp.com/business/global-economy/article/2084712/gold-prices-continue-higher-amid-political-uncertainty?utm_source=rss_feed Tue, 04 Apr 2017 08:58:40 +0000 Bonds may be an alternative financing tool for China’s public private partnership (PPP) projects compared with the asset-backed securities (ABS) being encouraged by the central government. China launched its first PPP-backed ABS product last month to finance a sewage and wastewater treatment project worth 840 million yuan (US$121.6). It came two months after Beijing gave the go-ahead for PPP projects to raise funds through securitisation. PPPs are seen as a means of broadening the financing... https://www.scmp.com/business/banking-finance/article/2080513/bonds-seen-ideal-financing-tools-chinas-ppp-moodys?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2080513/bonds-seen-ideal-financing-tools-chinas-ppp-moodys?utm_source=rss_feed Mon, 20 Mar 2017 10:00:15 +0000 China’s e-commerce giants will enjoy fast growth as more people turn to online shopping for daily necessities such as biscuits, shampoo and drinks, according to new research by Goldman Sachs. The market for so-called fast moving consumer goods (FMCG) is so large that it will support high sales growth for both Alibaba and JD.com as they take business away from offline stores in the coming years, according to a report published by the investment bank. However, the online retailers face major... https://www.scmp.com/business/companies/article/2079085/chinas-e-commerce-sector-set-rapid-growth-consumers-go-online?utm_source=rss_feed https://www.scmp.com/business/companies/article/2079085/chinas-e-commerce-sector-set-rapid-growth-consumers-go-online?utm_source=rss_feed Wed, 15 Mar 2017 07:49:46 +0000 Chinese brewers are at the dawn of a golden age of multi-year profit growth, according to market analysts, who flagged improving fundamentals and tactical trading opportunities in the sector. The top five brand names in China by market share are China Resources Beer at 24.6 per cent, Tsingtao Brewery at 17.9 per cent, Budweiser at 15.7 per cent, Yanjing Brewery at 10 per cent and Carlsberg Group at 5 per cent, according to data from Euromonitor. Large brewers in China are expected to continue... https://www.scmp.com/business/companies/article/2077122/its-time-buy-chinese-breweries-and-not-just-because-chinese-will?utm_source=rss_feed https://www.scmp.com/business/companies/article/2077122/its-time-buy-chinese-breweries-and-not-just-because-chinese-will?utm_source=rss_feed Wed, 08 Mar 2017 10:23:13 +0000 Morgan Stanley is expecting a sharp rise in the consumption of Western-style spirits (WSS) in China, after what has been a painful couple of years for sales amid the government’s anti-graft measures. Driven by a combination of rising middle-class income and a culture of gifting and banqueting, WSS sales accelerated rapidly in the early 2000s, rising almost nine-fold in value the following decade between 2002 to 2012, albeit from a low base, Morgan Stanley said. “This heady growth rate began to... https://www.scmp.com/business/companies/article/2075490/western-style-spirit-sales-hit-us700m-last-year-and-are-expected?utm_source=rss_feed https://www.scmp.com/business/companies/article/2075490/western-style-spirit-sales-hit-us700m-last-year-and-are-expected?utm_source=rss_feed Thu, 02 Mar 2017 09:00:38 +0000 The outlook remains robust for high-end Chinese liquor makers despite slowing growth in food spending and stronger competition from foreign brands, according to a research report. With other local food vendors facing headwinds, the top two baijiu makers can maintain their high profitability because of strong brand awareness, according to analysts at HSBC. After decades of heady growth, food spending in China has reached a high level with limited room for further expansion. The per capita... https://www.scmp.com/business/companies/article/2075143/these-two-chinese-baiju-makers-are-poised-growth-says-hsbc?utm_source=rss_feed https://www.scmp.com/business/companies/article/2075143/these-two-chinese-baiju-makers-are-poised-growth-says-hsbc?utm_source=rss_feed Wed, 01 Mar 2017 08:30:00 +0000 China’s renewed push to promote health sector reforms and back it with a slew of favourable policies is expected to boost the fortunes of the country’s major pharmaceutical companies that had been languishing due to the tough regulatory environment for the past two years, according to analysts. “We anticipate a turnaround in health care stock prices this year after their weak performances in 2015 and 2016,” said Sean Wu, an analyst at Morgan Stanley, in a recent research note. “Policy headwinds... https://www.scmp.com/business/article/2074816/good-times-ahead-chinese-pharmaceutical-firms-policy-environment-turns?utm_source=rss_feed https://www.scmp.com/business/article/2074816/good-times-ahead-chinese-pharmaceutical-firms-policy-environment-turns?utm_source=rss_feed Tue, 28 Feb 2017 12:11:10 +0000 Large private education companies are set to grow their market share in China, edging out smaller rivals as they benefit from higher student retention rates, more efficient operating structures, and a pro-education push by the central government, according to analysts from US broker Jefferies. Beijing-headquartered New Oriental Education & Technology Group and Beijing-headquartered TAL Education, two major companies in the sector, were assigned “buy” recommendations by Jefferies’ analysts Johnny... https://www.scmp.com/business/investor-relations/stock-quote-profile/article/2072639/jefferies-says-these-two-chinese?utm_source=rss_feed https://www.scmp.com/business/investor-relations/stock-quote-profile/article/2072639/jefferies-says-these-two-chinese?utm_source=rss_feed Tue, 21 Feb 2017 08:18:21 +0000 China has seen an increase in the average size of projects under the Belt and Road Initiative since the plan was unveiled in 2013 as part of a strategy to promote Eurasian trade and integration, according to a new PwC’s report. Data shows that the average project size in China increased by 14 per cent in 2016, with noteworthy increases in utilities and transportation, according to the accounting firm. The expansion was largely driven by public expenditure on infrastructure which is a central... https://www.scmp.com/business/companies/article/2072372/chinas-belt-and-road-projects-attracted-more-investment-2016-says?utm_source=rss_feed https://www.scmp.com/business/companies/article/2072372/chinas-belt-and-road-projects-attracted-more-investment-2016-says?utm_source=rss_feed Mon, 20 Feb 2017 09:00:15 +0000 Deutsche Bank analysts expect to see substantial growth opportunities in China’s monoclonal antibodies (mAbs) market in the coming five years, naming 3SBio and Shanghai Fosun Pharmaceutical as among the first-movers in the sector. Monoclonal antibodies are a type of biological therapy used in the treatment of serious conditions such as cancer, rheumatoid arthritis, Crohn’s diseases, and osteoporosis. Monoclonal antibody are target specific in action, by not affecting other cells of the body thus... https://www.scmp.com/business/companies/article/2069427/latest-type-biological-therapy-monoclonal-antibodies-tipped?utm_source=rss_feed https://www.scmp.com/business/companies/article/2069427/latest-type-biological-therapy-monoclonal-antibodies-tipped?utm_source=rss_feed Thu, 09 Feb 2017 04:37:52 +0000 Chinese consumers are buying more luxury items at home, but it may not be enough to save struggling department stores - particularly those that don’t boast a restaurant, cinema or ice rink. Offline shops may benefit from a recovery in domestic luxury spending, but the future is still gloomy for traditional retailers that have been increasingly losing out to e-commerce platforms, according to analysts at Fitch. The stores need to focus on providing a ‘shopping experience’ in order to win over the... https://www.scmp.com/business/china-business/article/2069167/pick-chinese-luxury-spending-wont-save-traditional-retailers?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2069167/pick-chinese-luxury-spending-wont-save-traditional-retailers?utm_source=rss_feed Wed, 08 Feb 2017 10:13:37 +0000 Chinese airlines are toasting an unexpectedly cheerful Lunar New Year, with a sharp pick up in international passenger numbers in January, according to a new report from JP Morgan. The lingering winter smog over large tracts of northern China, it seems, encouraged more to avoid not only the annual scrum in travelling to meet relatives, but exposing themselves any further to the worsening air quality, it said. The investment giant underlines it still maintains a cautious view for the airline... https://www.scmp.com/business/china-business/article/2068729/chinas-smog-refugees-give-airlines-boost-during-lunar-new?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2068729/chinas-smog-refugees-give-airlines-boost-during-lunar-new?utm_source=rss_feed Tue, 07 Feb 2017 05:45:13 +0000 Base metal prices have been hit hard by China’s surprise interest rate rise, but analysts have mixed views on whether prices will rise later in the year as the country continues down its route of supply side reform. The People’s Bank of China, the central bank, raised money market rates across the board on the first working day in the Year of the Rooster on Friday, after a week-long holiday for the Lunar New Year. The seven-day repo rate, the major interest rate between the central bank and... https://www.scmp.com/business/commodities/article/2068425/base-metal-prices-fall-pboc-rate-rise-leaving-analysts-mixed?utm_source=rss_feed https://www.scmp.com/business/commodities/article/2068425/base-metal-prices-fall-pboc-rate-rise-leaving-analysts-mixed?utm_source=rss_feed Mon, 06 Feb 2017 06:34:08 +0000 The Chinese central bank has raised one of its policy rates – on medium-term lending facility (MLF) loans – for the first time in six years, but analysts have shrugged off the possibility of a “real” rise in the lending and borrowing interest rates in the near term. “The MLF rate rise is targeted on deleveraging the financial market. It’s more like sending a signal [to control the financial risks] rather than a substantial move [for monetary tightening],” Jiang Chao, an analyst at Haitong... https://www.scmp.com/business/money/wealth/article/2067178/china-heading-benchmark-rate-rise?utm_source=rss_feed https://www.scmp.com/business/money/wealth/article/2067178/china-heading-benchmark-rate-rise?utm_source=rss_feed Wed, 01 Feb 2017 08:10:02 +0000 Now is a good time for investors to position themselves for a potential share price rally of casinos with new hotels in Cotai Macau, according to Deutsche Bank, which reiterates a “Buy” on Sands China and Wynn Macau. “We’ve checked the Chinese Lunar New Year room availability for 23 casino hotels in Macau. Of these, 19 hotels are already fully booked in the three days from January 30 to February 1,” Deutsche Bank analyst Karen Tang said in a report. “This is much busier than October’s Golden... https://www.scmp.com/business/companies/article/2064965/macau-casino-hotel-holiday-bookings-point-recovery-gaming-sector?utm_source=rss_feed https://www.scmp.com/business/companies/article/2064965/macau-casino-hotel-holiday-bookings-point-recovery-gaming-sector?utm_source=rss_feed Tue, 24 Jan 2017 08:06:52 +0000 As US President-elect Donald Trump enters the Oval Office this week, tensions between China and the US have flared once again, adding further pressure to the offshore yuan and bringing a chill to Sino-US relations, analysts are warning. Trump’s seemingly provocative remarks about the “one China” policy, regarding the status of Taiwan, has angered Beijing and sparked outrage among many. With China warning it would “take the gloves of” if Trump continues to “impair” the “one China” principle,... https://www.scmp.com/business/markets/article/2063216/us-china-tensions-rise-adding-further-pressure-offshore-yuan?utm_source=rss_feed https://www.scmp.com/business/markets/article/2063216/us-china-tensions-rise-adding-further-pressure-offshore-yuan?utm_source=rss_feed Wed, 18 Jan 2017 09:15:30 +0000 Chow Tai Fook Jewellery, China’s largest jeweller by market value, is expecting a mild but bumpy recovery this year, despite a strong sequential uptick in same-store sales in mainland China, Hong Kong and Macau during the October to December period last year. Hong Kong-listed Chow Tai Fook said its same-store sales compared with the same period last year in mainland China during the period rose four per cent while in Hong Kong and Macau they slipped two per cent, showing a strong improvement... https://www.scmp.com/business/article/2062535/jeweller-chow-tai-fook-set-see-mild-bumpy-recovery-2017-say-analysts?utm_source=rss_feed https://www.scmp.com/business/article/2062535/jeweller-chow-tai-fook-set-see-mild-bumpy-recovery-2017-say-analysts?utm_source=rss_feed Mon, 16 Jan 2017 08:11:25 +0000 Private hospitals, especially those focusing on conditions considered as “minor specialities”, such as cosmetic surgery or eye disease, are predicted to enjoy strong profit growth in the next few years, according to fresh research. Private clinical labs will also perform well as public hospitals increasingly turn to outsourcing for clinical tests, Citi analysts led by John Yung say in a new research note. The Chinese government has vowed to reform the country’s hospital system, with overcrowded... https://www.scmp.com/business/investor-relations/article/2061617/private-chinese-speciality-hospitals-and-clinical-labs?utm_source=rss_feed https://www.scmp.com/business/investor-relations/article/2061617/private-chinese-speciality-hospitals-and-clinical-labs?utm_source=rss_feed Thu, 12 Jan 2017 09:51:02 +0000 Chinese carmaker Geely Automobile is recommended as a “Buy” by investment banks as its recent positive profit alert suggests better-than-consensus earnings growth. After the market closed last Friday, the company issued an alert saying it expects net profit for 2016 to increase more than 100 per cent year on year. “This implies 2016 net profit would be at least 4.52 billion yuan, 6 per cent higher than consensus earnings,” HSBC car industry analyst Carson Ng wrote in a report. Geely cited a... https://www.scmp.com/business/companies/article/2061226/chinese-carmaker-geely-seen-attractive-positive-profit-alert?utm_source=rss_feed https://www.scmp.com/business/companies/article/2061226/chinese-carmaker-geely-seen-attractive-positive-profit-alert?utm_source=rss_feed Wed, 11 Jan 2017 07:52:49 +0000 Analysts are divided on the merits of China Mengniu Dairy’s acquisition of China Modern Dairy (CMD), with some viewing it as nothing more than a “rescue” while others see synergy between the two mainland Chinese dairy firms. On January 5, Mengniu announced it would increase its stake in CMD, which controls China’s largest cattle herd, from 25.4 per cent to 39.9 per cent by buying a 9.8 per cent stake from another investor, global investment firm, Kohlberg Kravis Roberts (KKR). “We view this deal... https://www.scmp.com/business/companies/article/2060581/mengnius-deal-increase-china-modern-dairy-stake-seen-rescue-some?utm_source=rss_feed https://www.scmp.com/business/companies/article/2060581/mengnius-deal-increase-china-modern-dairy-stake-seen-rescue-some?utm_source=rss_feed Mon, 09 Jan 2017 10:46:52 +0000 Hong Kong’s insurance sector is likely to come under increased pressure after Beijing tightened its scrutiny of individual foreign currency purchases at the start of the new year in a bid to further restrict capital outflows, analysts say. The city’s insurance companies were already feeling the pinch from a raft of earlier measures designed to make it harder for mainlanders to purchase insurance products as a way of hedging against the declining yuan. As of January 1, 2017, individuals are... https://www.scmp.com/business/companies/article/2059606/chinas-new-forex-control-threatens-further-blow-hong-kongs?utm_source=rss_feed https://www.scmp.com/business/companies/article/2059606/chinas-new-forex-control-threatens-further-blow-hong-kongs?utm_source=rss_feed Thu, 05 Jan 2017 07:45:48 +0000 Mainland Chinese economic data for December was reasonably solid, suggesting the economy had a steady end to the year, but divisions among economists suggest further uncertainty ahead. The official manufacturing PMI fell to 51.4 in December from 51.7 in November, but remained well above the threshold of 50 that separates expansion from contraction. Meanwhile the non-manufacturing PMI dropped from its two year high of 54.7 in November, but only as far as 54.5. Se Yan, Standard Chartered Bank’s... https://www.scmp.com/business/china-business/article/2059258/divided-opinions-chinas-december-data-reflect-2017?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2059258/divided-opinions-chinas-december-data-reflect-2017?utm_source=rss_feed Wed, 04 Jan 2017 07:08:49 +0000 Profits at China’s non-life insurers are unlikely to see double digit growth in 2017 unless there is an acceleration in new car sales which boosts motor insurance premiums, according to Fitch. The country’s economic slowdown will weaken near-term demand for insurance policies, the ratings agency said. “Premiums growth for the non-life sector is likely to decelerate further in 2017,” said analysts Terrence Wong, Joyce Huang and Jeffrey Liew in a sector outlook note for the coming year. The sector... https://www.scmp.com/business/china-business/article/2058936/slower-growth-expected-chinas-non-life-insurance-sector?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2058936/slower-growth-expected-chinas-non-life-insurance-sector?utm_source=rss_feed Tue, 03 Jan 2017 09:30:00 +0000 A state-owned Chinese coal firm has missed a repayment on a bond for the second time this year, amid increasing concerns that defaults may surge as trillions of yuan in onshore bonds mature next year. Sichuan Coal Industry Group, owned by the government of the south-western Sichuan province, failed to repay the principal and interest on 1 billion yuan in three-year private placement notes (PPN) with a 7.5 per cent coupon due on December 25. The company’s previous default, six months ago, was... https://www.scmp.com/business/companies/article/2057681/state-owned-sichuan-coal-defaults-bond-second-time?utm_source=rss_feed https://www.scmp.com/business/companies/article/2057681/state-owned-sichuan-coal-defaults-bond-second-time?utm_source=rss_feed Thu, 29 Dec 2016 11:35:59 +0000 Investment bank Morgan Stanley raised its expectation for Macau revenue growth in 2017 on new casino openings and better infrastructure, but warned of risks from further Chinese government crackdowns on graft. Gross gaming revenue growth(GGR) has been raised to 10 per cent in 2017 from its previous estimate of 2 per cent, according to Morgan Stanley’s latest report. “We believe the Macau cycle has turned and 2017 could show 10 per cent GGR and 13 per cent ebitda growth, the first in four years,”... https://www.scmp.com/business/money/money-news/article/2057638/macaus-gaming-industry-see-better-days-2017-says-morgan?utm_source=rss_feed https://www.scmp.com/business/money/money-news/article/2057638/macaus-gaming-industry-see-better-days-2017-says-morgan?utm_source=rss_feed Wed, 28 Dec 2016 06:32:17 +0000 China’s online property services market is entering a deep freeze, and there’s little hope for a thaw anytime soon as authorities continue to push cooling measures that have essentially shutdown transactions. “The property market is entering a long winter for at least six months, we believe,” said Alvin Jiang and Alan Hellawell, analysts at Deutsche Bank, in their latest research report. “The weakness in the property market will last until at least late 2017.” Deutsche Bank downgraded China’s... https://www.scmp.com/business/companies/article/2056007/chinas-online-property-agencies-face-prolonged-downturn-analysts?utm_source=rss_feed https://www.scmp.com/business/companies/article/2056007/chinas-online-property-agencies-face-prolonged-downturn-analysts?utm_source=rss_feed Tue, 20 Dec 2016 05:41:41 +0000 Yield-seeking investors may turn to public-private partnerships (PPP) next year due to their low risks even as the financing environment for such projects remains hazy, says leading investment bank JPMorgan Chase. PPPs are set to gain traction as regulatory tightening will crimp mortgage lending and the allure for private sector fades, it said in a research note. PPP is a long-term contract between a private party and a government entity for providing a public asset or service, in which the... https://www.scmp.com/business/banking-finance/article/2055564/public-private-partnership-financing-yet-take-china?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2055564/public-private-partnership-financing-yet-take-china?utm_source=rss_feed Sun, 18 Dec 2016 07:21:47 +0000 China’s domestic car sales soared in November, ahead of the expiry of a government tax break on cars with engines below 1.6 litres. Geely Auto, one of the country’s largest privately owned car manufacturers and the owner of Volvo Cars and the London Taxi Company, has reported record sales for the month, thanks to a rush by customers to buy before a government reduction in purchasing tax expires at the end of the year. However, the same reason could leave the car maker vulnerable to a downturn in... https://www.scmp.com/business/companies/article/2052627/chinese-car-makers-make-hay-while-tax-break-force-sales-could?utm_source=rss_feed https://www.scmp.com/business/companies/article/2052627/chinese-car-makers-make-hay-while-tax-break-force-sales-could?utm_source=rss_feed Wed, 07 Dec 2016 10:52:03 +0000 Moody’s and Fitch Ratings have both issued negative outlooks for China’s banking industry, expecting profitability and asset quality to deteriorate further, threatened by high levels of corporate leverage. Blaming lower lending income prospects combined with moderating economic growth, the ratings agencies have also now lowered their real GDP growth targets for China next year. Moody’s baseline scenario assumes further moderation in real GDP growth to 6.3 per cent in 2017 from 6.7 per cent in... https://www.scmp.com/business/banking-finance/article/2052203/moodys-and-fitch-issue-negative-outlooks-chinas-banks-2017?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2052203/moodys-and-fitch-issue-negative-outlooks-chinas-banks-2017?utm_source=rss_feed Tue, 06 Dec 2016 08:13:38 +0000 China’s top pharmaceutical companies are expected to benefit from proposed national health care policy changes, aimed at addressing what has become a overly fragmented market, according to a new report. The central government is working with provincial authorities on a new medical insurance payment scheme that would motivate hospitals to prescribe lower-priced drugs, in a plan set to be finalised this month, according to a JPMorgan report. The blueprint will allow medical institutions to pocket... https://www.scmp.com/business/article/2051905/chinas-health-care-reforms-set-benefit-top-domestic-pharmas-report-says?utm_source=rss_feed https://www.scmp.com/business/article/2051905/chinas-health-care-reforms-set-benefit-top-domestic-pharmas-report-says?utm_source=rss_feed Mon, 05 Dec 2016 11:16:12 +0000 Chinese authorities are reviving debt equity swaps to help process banks’ bad loans. However, the tangled web of the mainland financial system means that some of the risk associated with these bad debts has now passed to China’s ordinary householders, while other risks have ended up back with the banks, defeating the point of the exercise, say analysts. In a debt equity swap, a bank that has lent to a company which is unable to repay the loan exchanges the loan for an equity stake in the... https://www.scmp.com/business/banking-finance/article/2050143/debt-equity-swaps-china-just-case-pass-parcel?utm_source=rss_feed https://www.scmp.com/business/banking-finance/article/2050143/debt-equity-swaps-china-just-case-pass-parcel?utm_source=rss_feed Tue, 29 Nov 2016 10:03:38 +0000 Hong Kong’s ultra rich are not only getting richer but also growing in number, with the number of ultra high net worth people in the city rising to 1,800 or by 14.7 per cent, from a year ago, a new report said. According to the latest Global Wealth Report published by Credit Suisse, mainland China was ranked second after the US in the number of ultra high net worth individuals, with their ranks rising by 6.2 per cent to 11,000 individuals so far in 2016. That also represented a 100-fold rise... https://www.scmp.com/business/money/wealth/article/2048648/hong-kongs-ultra-rich-sees-growth-population-assets?utm_source=rss_feed https://www.scmp.com/business/money/wealth/article/2048648/hong-kongs-ultra-rich-sees-growth-population-assets?utm_source=rss_feed Wed, 23 Nov 2016 13:20:48 +0000 Fan-favourite blockbusters and virtual reality cinema experiences could paint a more positive picture for 3D movie operator IMAX China next year, says Nomura. Profits for China’s film sector – the second biggest movie market in the world after the United States – have slowed this year due to a shortage of big movies and a trend towards watching movies at home, with ticket sales slipping 16 per cent in the third quarter after enormous growth in the past few years. But in a recent research note,... https://www.scmp.com/business/companies/article/2047935/blockbusters-and-virtual-reality-could-help-imax-china-turn-its?utm_source=rss_feed https://www.scmp.com/business/companies/article/2047935/blockbusters-and-virtual-reality-could-help-imax-china-turn-its?utm_source=rss_feed Mon, 21 Nov 2016 08:40:24 +0000 China’s packaged food industry will retain its stable growth outlook in 2017 even as consumer preferences in food and beverage options undergo a shift, analysts say. While food producers face headwinds with their core products as consumer become more conscious of health and quality, companies are making up for weaker sales by finding new ways to drive revenue, a Fitch report finds. “Innovation and new product launches are likely to become more relevant to drive sales growth as industry growth... https://www.scmp.com/business/companies/article/2047690/chinas-packaged-food-industry-set-stable-growth-2017-fitch-says?utm_source=rss_feed https://www.scmp.com/business/companies/article/2047690/chinas-packaged-food-industry-set-stable-growth-2017-fitch-says?utm_source=rss_feed Sun, 20 Nov 2016 06:49:56 +0000 China’s credit growth is set to decelerate further in the coming quarters after it slowed by almost half in October, analysts said. New loans growth last month came in at 651 billion yuan, 47 per cent lower than the 1.22 trillion yuan posted in September, but in line with Bloomberg’s median forecast of 672 billion. Medium to long-term household loans rose 489 billion yuan in October compared with September’s 574 billion yuan growth. These represented 75 per cent of total new yuan loans last... https://www.scmp.com/business/markets/article/2046093/chinas-new-loan-growth-fall-further-after-sharp-drop-october?utm_source=rss_feed https://www.scmp.com/business/markets/article/2046093/chinas-new-loan-growth-fall-further-after-sharp-drop-october?utm_source=rss_feed Tue, 15 Nov 2016 04:07:28 +0000 A decline in China’s traditional retail industry is set to continue amid sluggish sales and changing consumer habits, analysts say. The outlook for the sector - which includes department stores and other bricks-and-mortar shopping outlets - is negative, with demand likely to “remain muted” into 2017, a Fitch report said on Tuesday. In the first nine months of the year, the top 50 domestic retailers saw sales fall 1.9 per cent, representing a slowdown in growth of 2.6 per cent compared to the... https://www.scmp.com/business/markets/article/2044786/chinas-traditional-retail-industry-remain-weak-shoppers-stay-home?utm_source=rss_feed https://www.scmp.com/business/markets/article/2044786/chinas-traditional-retail-industry-remain-weak-shoppers-stay-home?utm_source=rss_feed Thu, 10 Nov 2016 07:37:00 +0000 New official guidelines for a debt-for-equity swap programme designed as part of the solution to China’s alarmingly high leverage provide more questions than answers, according to analysts at Fitch. First proposed by Premier Li Keqiang in March this year, the debt-for-equity scheme is viewed as a priority for Chinese leaders to bring down soaring leverage in the corporate sector, which hit 169 per cent of gross domestic product in the first quarter. While debt-for-equity swaps could act as a... https://www.scmp.com/business/china-business/article/2044341/beijings-debt-equity-rules-pose-more-questions-answers-fitch?utm_source=rss_feed https://www.scmp.com/business/china-business/article/2044341/beijings-debt-equity-rules-pose-more-questions-answers-fitch?utm_source=rss_feed Wed, 09 Nov 2016 05:08:22 +0000 Analysts say Lenovo still has some way to go until its struggling mobile and data centre group (DCG) businesses turn a profit, despite the Chinese technology titan recording improved group figures for its second fiscal quarter, ended September. The world’s largest personal computer manufacturer by shipments last week said net profit for the quarter came in at US$157 million, excluding one-off items, rebounding from a US$714 million loss in the same period last year. During the period, it booked... https://www.scmp.com/business/companies/article/2044000/profitability-some-way-lenovos-mobile-and-data-centre-businesses?utm_source=rss_feed https://www.scmp.com/business/companies/article/2044000/profitability-some-way-lenovos-mobile-and-data-centre-businesses?utm_source=rss_feed Tue, 08 Nov 2016 07:16:56 +0000 China’s car industry is hitting a few bumps in the road, with manufacturers likely to see prices deteriorate as volume hits its peak, analysts say. The sector may see gross profits decline by as much as 10 to 15 per cent in the fourth quarter as average selling prices continue to slide, a CLSA report said. Average prices from factories fell by 8 to 9 per cent between July and September, even as revenue increased 13 per cent, according to CLSA analysts Alexious Lee and Nick Feng. And Chinese... https://www.scmp.com/business/companies/article/2043549/chinese-car-industry-faces-bumpy-road-prices-slide-volume-hits?utm_source=rss_feed https://www.scmp.com/business/companies/article/2043549/chinese-car-industry-faces-bumpy-road-prices-slide-volume-hits?utm_source=rss_feed Mon, 07 Nov 2016 01:02:43 +0000 Chinese investor demand for asset diversification amid the depreciating yuan has helped drive bitcoin to its highest value in three months, with the mainland Chinese market now accounting for 90 per cent of all trading in the digital currency. Bitcoin’s price hit US$683 on Thursday, the highest since early July, while trading volume reached a six month daily high of 6.65 million bitcoin, according to data from Bitcoinity.org. “Limited investment channels for Chinese investors drive them to seek... https://www.scmp.com/business/companies/article/2040620/yuan-weakness-prompts-chinese-investors-place-risky-bets-digital?utm_source=rss_feed https://www.scmp.com/business/companies/article/2040620/yuan-weakness-prompts-chinese-investors-place-risky-bets-digital?utm_source=rss_feed Thu, 27 Oct 2016 08:23:23 +0000 Chinese households and companies are moving money abroad at a faster pace, with September’s estimated capital outflows hitting the highest amount since February. But it may not be as alarming as some believe, as the outflows are partly due to more strategic factors, such as the asset diversification by households, analysts said. China’s capital outflows may have risen to US$142 billion in the third quarter of this year, with US$43 billion in July, US$44 billion in August and forecasts US$55... https://www.scmp.com/business/companies/article/2040534/rising-capital-outflows-accelerate-yuan-continues-weaken-2017?utm_source=rss_feed https://www.scmp.com/business/companies/article/2040534/rising-capital-outflows-accelerate-yuan-continues-weaken-2017?utm_source=rss_feed Thu, 27 Oct 2016 03:26:49 +0000 The planned 9 billion yuan in private placement of shares by dairy giant Inner Mongolia Yili Industrial Group, will dilute its earnings by share (EPS), according to a fresh note Deutsche Bank, but enhance its long-term growth, Yili unveiled the carefully structured 4.6 billion yuan takeover of Hong Kong-traded China Shengmu Organic Milk, China’s largest producer of organic milk, on Monday and issued new stock to create a so-called poison pill to ward off any potential hostile takeover from its... https://www.scmp.com/business/companies/article/2039849/yilis-share-placement-dilutes-its-near-term-earnings-enhances?utm_source=rss_feed https://www.scmp.com/business/companies/article/2039849/yilis-share-placement-dilutes-its-near-term-earnings-enhances?utm_source=rss_feed Tue, 25 Oct 2016 05:12:07 +0000