https://www.scmp.com/rss/507592/feed en https://assets.i-scmp.com/static/img/icons/scmp-meta-1200x630.png https://www.scmp.com Carol Yang Carol Yang China’s central bank appears increasingly likely to ease its monetary stance in the fourth quarter, according to Goldman Sachs, as economic momentum slows and policymakers face mounting pressure to support growth. The forecast includes a 10-basis-point policy rate cut and a 50-basis-point reduction in the reserve requirement ratio, which could come as year-on-year growth slows sharply towards 4 per cent from a high base last year, a note released on Saturday said. “But the data-dependent nature... https://www.scmp.com/economy/china-economy/article/3327189/china-rate-cuts-likely-fourth-quarter-amid-growth-concerns-goldman-sachs?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3327189/china-rate-cuts-likely-fourth-quarter-amid-growth-concerns-goldman-sachs?utm_source=rss_feed Mon, 29 Sep 2025 04:30:07 +0000 Xinyi Wu Xinyi Wu As China works to defuse its debt risks, and with unchained US borrowing rocketing skyward, Ray Dalio finds himself at the centre of an important conversation in Beijing – advising top officials as they face a delicate path ahead. Chinese officials rolled out the red carpet this week for the billionaire investor and founder of Bridgewater Associates – one of the world’s largest hedge funds – as his words of caution on the risks facing major global economies appear to be increasingly resonating... https://www.scmp.com/economy/china-economy/article/3326700/china-ray-dalio-discusses-global-debt-issues-beijing-seeks-his-counsel?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3326700/china-ray-dalio-discusses-global-debt-issues-beijing-seeks-his-counsel?utm_source=rss_feed Wed, 24 Sep 2025 11:00:10 +0000 Ji Siqi Ji Siqi As China drafts its 15th five-year plan – the next entry in a line of expansive blueprints that have set the tone for the country’s development over more than seven decades – we examine how these documents inform and reflect high-level policy priorities, and what to expect in the coming iteration, such as how it could help alleviate local-level financial woes. For more entries in this ongoing series, click here. In late March, an announcement by the central Hubei province sent a shiver down the... https://www.scmp.com/economy/china-economy/article/3326531/chinas-local-governments-urgently-need-cash-can-5-year-plan-find-it?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3326531/chinas-local-governments-urgently-need-cash-can-5-year-plan-find-it?utm_source=rss_feed Tue, 23 Sep 2025 22:00:10 +0000 Alice Li Alice Li President Xi Jinping has called for more efforts to develop a unified domestic market, arguing that it will be crucial to helping China secure an edge in international competition and meet its development goals. In an article published on Monday in Qiushi, the ruling Communist Party’s leading theoretical journal, the Chinese leader listed six key tasks, with measures to deal with excessive cutthroat competition at the forefront. Vicious price wars have broken out in several industries in recent... https://www.scmp.com/economy/china-economy/article/3325680/chinas-xi-calls-building-unified-market-secure-edge-global-race?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3325680/chinas-xi-calls-building-unified-market-secure-edge-global-race?utm_source=rss_feed Tue, 16 Sep 2025 04:30:10 +0000 Mandy Zuo Mandy Zuo Chinese lawmakers began their first review of draft amendments to the Enterprise Bankruptcy Law on Monday, seeking to address shortcomings in the market-exit mechanism, state media reported. The amendments, discussed during the ongoing 17th session of the 14th National People’s Congress (NPC) Standing Committee, include more than 160 new or modified articles based on the current law that was enacted 18 years ago and features 216 articles, according to Xinhua. Calling it the foundational legal... https://www.scmp.com/economy/china-economy/article/3324748/urgent-revisions-mulled-chinas-bankruptcy-law-shortcomings-mind?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3324748/urgent-revisions-mulled-chinas-bankruptcy-law-shortcomings-mind?utm_source=rss_feed Mon, 08 Sep 2025 10:00:18 +0000 Ralph Jennings Ralph Jennings A strong push on Monday to create a development bank serving 10 Eurasian countries, including China, would help insulate the group from increasingly risky US dollar-dominated trade while accelerating key infrastructure work, according to analysts. Such a concessional lender – part of an idea that has long been put on hold – would serve China, Russia, India and seven other nations that have worked together since 2001 as the Shanghai Cooperation Organisation (SCO). President Xi Jinping said at a... https://www.scmp.com/economy/global-economy/article/3323950/china-advances-development-bank-help-10-eurasian-countries-curb-us-dollar-risks?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3323950/china-advances-development-bank-help-10-eurasian-countries-curb-us-dollar-risks?utm_source=rss_feed Mon, 01 Sep 2025 22:00:15 +0000 Sylvia Ma Sylvia Ma China’s central bank has set the yuan’s daily reference rate against the US dollar at the strongest level in more than nine months, as bets on rate cuts by the Federal Reserve are growing following a dovish pivot by its chair, Jerome Powell. On Monday, the People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 7.1161 per US dollar, its strongest showing since early November. Compared with 7.1321 in the previous release, Monday’s fixing also marked the... https://www.scmp.com/economy/china-economy/article/3323017/chinas-yuan-fixing-rate-hits-9-month-high-after-dovish-pivot-us-fed-chair?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3323017/chinas-yuan-fixing-rate-hits-9-month-high-after-dovish-pivot-us-fed-chair?utm_source=rss_feed Mon, 25 Aug 2025 04:14:28 +0000 Carol Yang Carol Yang Chinese Premier Li Qiang has called for more action to boost consumption and investment, as the world’s second-largest economy strives to meet its annual growth targets despite facing growing headwinds in the second half of the year. “[We] should recognise the hard-won achievements and the strong resilience as well as dynamism of China’s economy, reinforcing confidence, while also acknowledging the risks and challenges in the economy and the complex external environment,” he told a meeting of... https://www.scmp.com/economy/china-economy/article/3322320/china-signals-bolder-policies-boost-spending-investment-headwinds-rise?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3322320/china-signals-bolder-policies-boost-spending-investment-headwinds-rise?utm_source=rss_feed Tue, 19 Aug 2025 05:00:28 +0000 Sylvia Ma Sylvia Ma Calls for China to gradually reduce its exposure to US dollar assets are growing louder as Washington’s national debt continues to set records, reigniting persistent worries over the long-term sustainability of an investment formerly considered rock solid. “Although US Treasuries have not yet reached the default threshold, their expansion is unsustainable,” researchers from the Bank of China wrote in the latest issue of China Money, a publication supervised by the People’s Bank of China, the... https://www.scmp.com/economy/china-economy/article/3322072/chinese-researchers-lodge-concerns-over-us-debt-beijing-limits-exposure?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3322072/chinese-researchers-lodge-concerns-over-us-debt-beijing-limits-exposure?utm_source=rss_feed Sat, 16 Aug 2025 07:00:09 +0000 Sylvia Ma Sylvia Ma As China seeks public feedback on the implementation of its recently passed value-added tax (VAT) law, a group of economists has urged the government to introduce more radical reforms to give local authorities stronger incentives to spur consumption and rein in their excessive industrial expansion. The new VAT law, which is due to come into force next year, introduces a range of technical changes to the tax code that bring China more into line with international practices, but the economists... https://www.scmp.com/economy/china-economy/article/3321590/china-urged-overhaul-its-tax-system-boost-consumption?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321590/china-urged-overhaul-its-tax-system-boost-consumption?utm_source=rss_feed Tue, 12 Aug 2025 09:32:21 +0000 Sylvia Ma Sylvia Ma In the decade since China shocked the world with a surprise devaluation of the yuan, the nation’s exchange-rate regime has steadily shifted towards market-based – yet still managed – pricing, and analysts say the era of burning through massive reserves to defend the currency is firmly in the rear-view mirror. Armed with lessons from the past, Beijing now employs a wider arsenal of tools to manage volatility, they added, with the key challenge for the coming decade being whether the yuan can open... https://www.scmp.com/economy/china-economy/article/3321464/10-years-day-chinas-big-yuan-devaluation-set-shock-waves-what-has-changed?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3321464/10-years-day-chinas-big-yuan-devaluation-set-shock-waves-what-has-changed?utm_source=rss_feed Mon, 11 Aug 2025 13:00:08 +0000 Alice Li Alice Li China’s central bank confirmed on Friday that it had established a new financial stability committee to defuse the nation’s mounting debt risks, as a senior government adviser suggested that Beijing needed to inject 1 trillion yuan (US$139 billion) into the property sector to stabilise developers’ balance sheets. The suggestion by Yin Zhongli, a counsellor for China’s State Council, comes as Beijing continues to wrestle with a four-year property crisis sparked by developer Evergrande Group’s... https://www.scmp.com/economy/china-economy/article/3320691/new-committee-bailout-talk-china-launching-fresh-property-rescue-effort?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320691/new-committee-bailout-talk-china-launching-fresh-property-rescue-effort?utm_source=rss_feed Mon, 04 Aug 2025 13:00:07 +0000 Alice Li Alice Li China’s dealers of precious metals and gemstones – including gold, diamonds and rubies – must comply from today with a new regulation, as the scope of Beijing’s anti-money-laundering operations widens and authorities move to counter such criminal activity by plugging creative loopholes. Transactions involving precious metals and gems that exceed a certain threshold will need to be reported to the nation’s financial crime watchdog. In this explainer, the Post delves into China’s latest... https://www.scmp.com/economy/china-economy/article/3320461/chinas-money-launderers-exploited-gem-loophole-beijing-just-plugged-it?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320461/chinas-money-launderers-exploited-gem-loophole-beijing-just-plugged-it?utm_source=rss_feed Fri, 01 Aug 2025 11:00:15 +0000 Sylvia Ma Sylvia Ma China has vowed to maintain its macro policy support for the rest of 2025 as the country seeks to navigate economic risks – both external and internal – in the second half of the year and plan for its next half-decade of development. After a meeting of the 24-member Politburo – a major decision-making body of the ruling Communist Party led by President Xi Jinping – that ended on Wednesday, the party’s upper echelon issued a statement encouraging action to support the economy. “Macro policies... https://www.scmp.com/economy/china-economy/article/3320103/chinas-politburo-calls-stepped-economic-policy-support?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3320103/chinas-politburo-calls-stepped-economic-policy-support?utm_source=rss_feed Wed, 30 Jul 2025 06:21:22 +0000 Sylvia Ma,Ji Siqi Sylvia Ma,Ji Siqi China’s economy expanded by 5.2 per cent in the second quarter, keeping it broadly on track to meet this year’s growth target, but analysts cautioned that weak domestic demand and rising external uncertainties could provoke a slowdown in the second half of 2025. The closely watched gross domestic product (GDP) figures, released by the National Bureau of Statistics (NBS) on Tuesday, came in above the 5.17 per cent forecast by a poll of economists from the Chinese financial data provider Wind. The... https://www.scmp.com/economy/china-economy/article/3318214/chinas-economy-grows-52-second-quarter-us-trade-truce-offers-boost?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318214/chinas-economy-grows-52-second-quarter-us-trade-truce-offers-boost?utm_source=rss_feed Tue, 15 Jul 2025 02:00:13 +0000 Ji Siqi Ji Siqi China’s central bank intends to carefully calibrate the intensity and pace of its “moderately loose” monetary policy implementation, taking steps to help the country’s economy grow by Beijing’s goal of around 5 per cent this year. Zou Lan, deputy governor of the People’s Bank of China, said on Monday that the agency would closely monitor and evaluate the transmission and actual effects of previously implemented measures. And any future steps would be based on domestic and international financial... https://www.scmp.com/economy/china-economy/article/3318170/chinas-monetary-policy-impact-not-yet-unleashed-pboc-says-5-gdp-goal-mind?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3318170/chinas-monetary-policy-impact-not-yet-unleashed-pboc-says-5-gdp-goal-mind?utm_source=rss_feed Mon, 14 Jul 2025 12:30:11 +0000 Alice Li Alice Li China has made boosting consumer spending a key policy priority in recent months, as it tries to rebalance its economy away from a reliance on exports and offset the impact of an unprecedented trade war with the United States. The country has launched a massive trade-in programme for consumer goods that has succeeded in driving up sales of everything from cars to smartphones, but there are signs that the policy is starting to lose momentum and deflationary pressure continues to affect the... https://www.scmp.com/economy/china-economy/article/3317312/how-can-china-get-consumers-spending-here-are-5-ideas-being-floated-beijing?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3317312/how-can-china-get-consumers-spending-here-are-5-ideas-being-floated-beijing?utm_source=rss_feed Tue, 08 Jul 2025 03:05:35 +0000 Ji Siqi Ji Siqi China’s top audit watchdog has revealed that tens of billions of yuan in funding were misused by localities amid a roll-out of stimulus measures and flagship projects that the nation adopted last year, as Beijing injected trillions to boost China’s economy. The revelation – resulting from an assessment of the central government’s budget execution last year, as well as of other fiscal revenues and expenditures in 2024 – was spelled out in a report submitted by National Audit Office auditor... https://www.scmp.com/economy/china-economy/article/3316394/billions-misused-china-2024-stimulus-flood-controls-gym-equipment-audit-finds?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3316394/billions-misused-china-2024-stimulus-flood-controls-gym-equipment-audit-finds?utm_source=rss_feed Mon, 30 Jun 2025 10:30:25 +0000 Ji Siqi Ji Siqi For months, consumers across China buying everything from iPhones to cars and washing machines have enjoyed steep discounts – courtesy of the government. This vast subsidy programme has played a key role in boosting China’s consumer spending this year, helping the economy remain relatively robust even amid an unprecedented trade war with the United States. But in June, some of those offers suddenly disappeared. In the eastern Jiangsu province, local authorities stopped issuing vouchers for... https://www.scmp.com/economy/china-economy/article/3315933/chinas-massive-trade-programme-running-out-steam?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315933/chinas-massive-trade-programme-running-out-steam?utm_source=rss_feed Fri, 27 Jun 2025 01:00:14 +0000 Leopold Chen Leopold Chen With some major economies leaping onto the stablecoin train – or being urged to do so, to further globalise their currencies – others are mulling whether getting on board would be akin to either riding the gravy train or feeling it fail to gather steam. Now, the international financial organisation known as the “bank for central banks” has waded into the stablecoin debate as the buzzword gathers momentum. In a “special chapter” released on Tuesday in advance of Sunday’s release of its Annual... https://www.scmp.com/economy/global-economy/article/3315616/amid-china-us-stablecoin-buzz-bis-warns-trio-sound-money-traits-missing?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3315616/amid-china-us-stablecoin-buzz-bis-warns-trio-sound-money-traits-missing?utm_source=rss_feed Tue, 24 Jun 2025 11:00:08 +0000 Leopold Chen Leopold Chen Beijing must be proactive in “adapting to the trend of stablecoins”, and waiting is not an option as the US has a head start, warns an article on Monday in state media that simultaneously calls for leadership to consider legislation regulating stablecoins while hyping up their potential role in making the yuan a more global currency. Securities Times, a publication under party mouthpiece People’s Daily, said experts and industry insiders “generally believe that, as an emerging payment tool, the... https://www.scmp.com/economy/china-economy/article/3315469/china-needs-yuan-backed-stablecoins-sooner-rather-later-state-media-urges-beijing?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315469/china-needs-yuan-backed-stablecoins-sooner-rather-later-state-media-urges-beijing?utm_source=rss_feed Mon, 23 Jun 2025 09:00:09 +0000 Ji Siqi Ji Siqi A veteran of international finance, Jin Liqun is president and chair of the board of directors at the Asian Infrastructure Investment Bank (AIIB), a multilateral development lender headquartered in Beijing and established in 2016. He has been closely involved in the Bank’s evolution since its inception, and was elected to a second and final five-year term in 2020. Jin was among the first Chinese officials to gain direct experience in international finance in the 1980s, serving as alternate... https://www.scmp.com/economy/china-economy/article/3315141/jin-liqun-reflects-tumult-and-triumphs-aiibs-eventful-first-decade?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315141/jin-liqun-reflects-tumult-and-triumphs-aiibs-eventful-first-decade?utm_source=rss_feed Sun, 22 Jun 2025 22:00:14 +0000 Frank Tang Frank Tang China’s central bank is launching a new connect programme with Hong Kong to facilitate cross-border payments – Beijing’s latest move to open up its financial sector and also leverage the southern financial centre to better connect with the rest of the world. The Payment Connect programme will link the mainland’s Internet Banking Payment System and Hong Kong’s Faster Payment System (FPS), allowing users to make payments and wire money faster and more conveniently. The programme will begin on... https://www.scmp.com/economy/china-economy/article/3315208/mainland-china-hong-kong-launch-payment-connect-scheme-facilitate-capital-flows?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315208/mainland-china-hong-kong-launch-payment-connect-scheme-facilitate-capital-flows?utm_source=rss_feed Fri, 20 Jun 2025 07:43:44 +0000 He Huifeng He Huifeng Hunan has become the first province in China to use the proceeds of special-purpose bonds to guarantee government payments to enterprises, with 20 billion yuan (US$2.78 billion) allocated for this year. The inland province made the adjustment to its annual fiscal budget last month, marking the first time the bonds – typically earmarked for revenue-generating construction projects – will be used to cover government arrears. Proceeds will be distributed based on eligible outstanding debts from... https://www.scmp.com/economy/china-economy/article/3315075/word-bonds-chinas-provinces-use-special-purpose-funds-pay-debts?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3315075/word-bonds-chinas-provinces-use-special-purpose-funds-pay-debts?utm_source=rss_feed Fri, 20 Jun 2025 01:00:10 +0000 Frank Chen,Luna Sun Frank Chen,Luna Sun China will set up an “international operations centre” for the digital yuan to boost the global influence of the renminbi, People’s Bank of China Governor Pan Gongsheng announced at the Lujiazui Forum in Shanghai on Wednesday. The measure was among eight financial policies Pan announced during the opening of the annual finance-facing forum, which also included pledges that China would pilot a range of structural monetary policy tools in Shanghai. The policies come at a time when growing tensions... https://www.scmp.com/economy/china-economy/article/3314851/china-will-boost-yuans-global-reach-new-operations-centre-pboc-says?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3314851/china-will-boost-yuans-global-reach-new-operations-centre-pboc-says?utm_source=rss_feed Wed, 18 Jun 2025 02:46:25 +0000 Sylvia Ma Sylvia Ma China’s central bank set the yuan’s daily fixing against the US dollar at its strongest level in more than two months, as the greenback tumbled to a multi-year low amid expectations for more interest rate cuts from the Federal Reserve later this year. On Friday, the People’s Bank of China set the yuan’s midpoint rate – also known as the daily fixing rate – at 7.1772 per US dollar, its strongest showing since late March. The move came as the US dollar index plummeted to 97.61 on Thursday - a... https://www.scmp.com/economy/china-economy/article/3314323/chinas-yuan-fixing-rate-hits-two-month-high-us-dollar-drops?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3314323/chinas-yuan-fixing-rate-hits-two-month-high-us-dollar-drops?utm_source=rss_feed Fri, 13 Jun 2025 09:30:08 +0000 Alice Li Alice Li With e-commerce platforms gearing up for one of China’s biggest shopping festivals of the year, some local governments have suddenly paused subsidies offered for certain goods through a national trade-in programme, upending expectations that the offerings would continue all year. As of Thursday, consumers in Guangzhou, the capital of the southern provincial powerhouse of Guangdong, found that they could no longer claim vouchers for home-remodelling products such as doors, ceramic tiles and... https://www.scmp.com/economy/china-economy/article/3313217/local-governments-halt-some-subsidies-purchases-ahead-chinas-618-shopping-festival?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3313217/local-governments-halt-some-subsidies-purchases-ahead-chinas-618-shopping-festival?utm_source=rss_feed Fri, 06 Jun 2025 00:00:18 +0000 Kandy Wong Kandy Wong Gold prices have surged this year as investors seek safe investments amid a spike in economic uncertainty unleashed by US President Donald Trump’s tariff policies. But economists say that there is another important factor driving the rally: purchases by central banks. In this explainer, we explore why central banks are increasingly turning to gold assets, how that is driving a long-term structural shift in demand for the metal, and what that means for gold prices going forward. Why are central... https://www.scmp.com/economy/china-economy/article/3311909/why-central-banks-are-playing-big-role-pushing-gold-prices?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3311909/why-central-banks-are-playing-big-role-pushing-gold-prices?utm_source=rss_feed Tue, 27 May 2025 03:40:07 +0000 Sylvia Ma Sylvia Ma China slashed a key reference rate for mortgage loans by 10 basis points on Tuesday amid efforts to stabilise the property market, but analysts said the moderate cut was still insufficient to revive a sector mired in a downturn. The five-year loan prime rate (LPR), which commercial banks use as a benchmark for their mortgage rates, was lowered from 3.6 per cent to 3.5 per cent, according to the People’s Bank of China. The one-year loan prime rate, the reference rate for corporate loans, was also... https://www.scmp.com/economy/china-economy/article/3311030/china-cuts-key-mortgage-rate-spur-property-market-rebound-sight?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3311030/china-cuts-key-mortgage-rate-spur-property-market-rebound-sight?utm_source=rss_feed Tue, 20 May 2025 09:00:12 +0000 Sylvia Ma Sylvia Ma Beijing is doubling down on efforts to create a stronger domestic market, as it focuses on reducing China’s vulnerability to external tariff shocks even amid a tentative ceasefire in the country’s trade war with the United States. Premier Li Qiang said on Thursday that China would continue to anchor its development strategy in bolstering “domestic circulation” – a concept that refers to strengthening the country’s economic self-reliance by creating a robust, unified domestic market – according... https://www.scmp.com/economy/china-economy/article/3310618/survive-trade-war-china-aims-create-stronger-domestic-economy?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3310618/survive-trade-war-china-aims-create-stronger-domestic-economy?utm_source=rss_feed Fri, 16 May 2025 07:16:26 +0000 Alice Li,Mandy Zuo,Ji Siqi Alice Li,Mandy Zuo,Ji Siqi China announced a raft of supportive measures to shore up its economy and stabilise capital markets on Wednesday, in a move seen as bolstering Beijing’s position ahead of upcoming trade talks with the United States. Top officials from China’s central bank and financial regulators said they planned to cut interest rates, reserve ratio for banks to release liquidity into the markets, and ramp up support for consumers and businesses affected by US tariffs during a joint press conference in... https://www.scmp.com/economy/china-economy/article/3309434/china-moves-bolster-its-economy-ahead-us-trade-talks?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3309434/china-moves-bolster-its-economy-ahead-us-trade-talks?utm_source=rss_feed Wed, 07 May 2025 13:00:11 +0000 SCMP Reporters SCMP Reporters This live blog has been made freely available as a public service to our readers. Please consider supporting SCMP’s journalism by subscribing. Get faster notifications on the latest updates by downloading our app. The People’s Bank of China, the National Financial Regulatory Administration and the China Securities Regulatory Commission held a joint press conference on Wednesday to present their plan for stabilising markets and expectations. The conference came as hopes run high for more support... https://www.scmp.com/economy/china-economy/article/3309338/beijing-mulls-new-measures-stabilise-markets-us-tariff-war-hits?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3309338/beijing-mulls-new-measures-stabilise-markets-us-tariff-war-hits?utm_source=rss_feed Wed, 07 May 2025 00:56:29 +0000 Alice Li Alice Li Asia’s largest economies made a decision that could signal a shift away from the US dollar on Sunday, as they approved a new rapid financing mechanism that will for the first time use regional currencies including the Chinese yuan. The new scheme has been rapidly approved as countries across East and Southeast Asia look to shield themselves from the financial volatility unleashed by US President Donald Trump’s global tariff war, which has triggered turbulence in the US Treasuries market and an... https://www.scmp.com/economy/china-economy/article/3309279/has-asia-just-taken-step-away-us-dollar?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3309279/has-asia-just-taken-step-away-us-dollar?utm_source=rss_feed Tue, 06 May 2025 23:00:15 +0000 Ralph Jennings Ralph Jennings China has done little to de-dollarise its economy despite a push to resist Washington in a tumultuous trade war, and as an exporting nation, it is unlikely to back away from American currency holdings in the short term, according to an Oxford Economics report. Most available data delinks China from recent “volatility” in US bond markets, the Monday report said, referring to movement in April as US President Donald Trump unleashed tariffs around the world and hit China especially hard. “Even if... https://www.scmp.com/economy/global-economy/article/3309260/china-avoiding-disruptive-de-dollarisation-despite-us-trade-war-report-says?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3309260/china-avoiding-disruptive-de-dollarisation-despite-us-trade-war-report-says?utm_source=rss_feed Tue, 06 May 2025 10:45:09 +0000 China’s leadership has vowed to stabilise the economy and society, as the country is now at a critical stage in handling the unprecedented trade war with the United States. In an economic-analysis meeting on Friday, the 24-man Politburo, a prime decision-making body headed by President Xi Jinping, said authorities would roll out specific plans to support companies and individuals affected by the trade war. They pledged to “coordinate domestic economic work with international economic and trade... https://www.scmp.com/economy/china-economy/article/3307890/china-puts-onus-stability-beijing-vows-domestic-support-amid-us-trade-war?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3307890/china-puts-onus-stability-beijing-vows-domestic-support-amid-us-trade-war?utm_source=rss_feed Fri, 25 Apr 2025 05:55:12 +0000 China’s Ministry of Finance kicked off its issuance of ultra-long-term special government bonds for 2025 on Thursday, as part of a plan to raise 1.3 trillion yuan (US$178 billion) over the course of the year. The government has been making greater use of these special bonds – which are used to raise extra funds for key national projects – over the past few years, as it strives to shore up the Chinese economy amid a period of rising global turbulence. This year, with China facing an intensifying... https://www.scmp.com/economy/china-economy/article/3307781/how-china-expanding-and-accelerating-its-special-bonds-programme?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3307781/how-china-expanding-and-accelerating-its-special-bonds-programme?utm_source=rss_feed Thu, 24 Apr 2025 10:30:08 +0000 A meeting of China’s Politburo, expected to be held at the end of this month, is likely to step up the use of existing policy tools rather than immediately roll out a new round of fiscal stimulus in response to the intensified tariff war with the US, analysts said. Urgent problems created in the wake of the conflict are expected to be at the top of the Politburo’s agenda, they said, alongside expectations for further monetary easing in the second quarter. “It’s still too early to announce the... https://www.scmp.com/economy/policy/article/3307474/after-whirlwind-month-how-will-chinas-politburo-counter-trumps-tariffs?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3307474/after-whirlwind-month-how-will-chinas-politburo-counter-trumps-tariffs?utm_source=rss_feed Tue, 22 Apr 2025 12:00:08 +0000 China is scrambling to roll out more measures to boost consumer spending as it strives to offset the worst effects of an escalating trade war with the United States that threatens to rock its export sector. The southern island of Hainan is holding a major consumption expo in an effort to attract high-spending foreign shoppers on Sunday, while local authorities across the country launch additional measures to encourage domestic consumers to open their wallets. The China International Consumer... https://www.scmp.com/economy/china-economy/article/3306449/china-launches-all-out-effort-boost-consumption-us-trade-war-boils-over?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3306449/china-launches-all-out-effort-boost-consumption-us-trade-war-boils-over?utm_source=rss_feed Mon, 14 Apr 2025 12:00:07 +0000 China has vowed to strengthen and improve its export-control measures to safeguard its interests, in a bid to mitigate some of the fallout from a rapidly intensifying trade war with the United States. The Ministry of Commerce (Mofcom) said it will accelerate efforts to strengthen the country’s export control system and improve enforcement, as it navigates an “increasingly complex and challenging global environment”. “We will step up item classification, tighten licensing enforcement, expand... https://www.scmp.com/economy/china-economy/article/3306028/china-vows-big-changes-export-controls-fresh-safeguards-amid-raging-trade-war?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3306028/china-vows-big-changes-export-controls-fresh-safeguards-amid-raging-trade-war?utm_source=rss_feed Thu, 10 Apr 2025 12:30:17 +0000 While US President Donald Trump’s tariff hikes stoke fears of inflation in America, China is likely to face the opposite problem: deepening deflation that compounds a long-running economic headache for Beijing. But China’s push to boost domestic demand amid an escalating global trade war could help cushion the downward pressure on prices, analysts said. China has been grappling with the risk of a deflation crisis for several years, as sluggish domestic demand and industrial overcapacity lead... https://www.scmp.com/economy/china-economy/article/3305846/us-inflation-china-more-worried-trade-war-will-make-goods-too-cheap?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3305846/us-inflation-china-more-worried-trade-war-will-make-goods-too-cheap?utm_source=rss_feed Wed, 09 Apr 2025 13:00:12 +0000 With its forceful response to US President Donald Trump’s new tariffs, China has abandoned courtesy, leaving the chances of reconciliation slim as ties between the world’s two largest economies grow increasingly fraught, according to a prominent economist. “Initially, China opted to maintain some courtesy to avoid too much escalation when Trump [first] hiked tariffs,” said Mao Zhenhua, an economics professor with the University of Hong Kong and co-director of Renmin University’s Institute of... https://www.scmp.com/economy/global-economy/article/3305666/brace-impact-chinese-economist-warns-gloves-are-us-trade-war?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3305666/brace-impact-chinese-economist-warns-gloves-are-us-trade-war?utm_source=rss_feed Tue, 08 Apr 2025 09:00:02 +0000 China has launched a series of policies aimed at boosting domestic consumption in recent months as officials look to shore up the economy amid an intensifying trade war with the United States. This miniseries examines whether those efforts are paying off, with the second story exploring China’s moves to ease credit restrictions. The first story can be read here. Eric Liu, who works a white-collar job in Shanghai, is no stranger to consumer loans. The 30-year-old is currently paying in... https://www.scmp.com/economy/china-economy/article/3305526/why-china-struggling-convince-consumers-borrow-im-not-attracted?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3305526/why-china-struggling-convince-consumers-borrow-im-not-attracted?utm_source=rss_feed Tue, 08 Apr 2025 04:00:10 +0000 China has vowed to take “countermeasures” against any move by the United States to further raise tariffs and pledged to take firm action to stabilise the markets, after US President Donald Trump threatened to slap another 50 per cent duty on Chinese imports. China’s Ministry of Commerce said on Tuesday that China “firmly opposes” any moves to increase tariffs by the US and vowed to “resolutely respond” if it does so. “The US threat to escalate tariffs is doubling down on its mistakes, once again... https://www.scmp.com/economy/policy/article/3305589/chinas-central-bank-pledges-resolutely-defend-markets-amid-investor-panic?utm_source=rss_feed https://www.scmp.com/economy/policy/article/3305589/chinas-central-bank-pledges-resolutely-defend-markets-amid-investor-panic?utm_source=rss_feed Tue, 08 Apr 2025 01:01:02 +0000 While China’s central bank has set the yuan’s daily reference rate to a four-month low against the US dollar, the metric has not yet breached the all-important 7.2 benchmark – a move seen by analysts as a sign of stabilisation efforts rather than the sharp devaluation some expected to offset the impact of US tariffs. On Monday, the People’s Bank of China set the yuan’s daily fixing – also known as the midpoint rate – at 7.1980 per US dollar, the weakest since early December. The move came amid... https://www.scmp.com/economy/china-economy/article/3305466/china-opts-stability-over-devaluation-tariff-tremors-give-yuan-jolt?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3305466/china-opts-stability-over-devaluation-tariff-tremors-give-yuan-jolt?utm_source=rss_feed Mon, 07 Apr 2025 05:20:16 +0000 China’s Central Huijin, a key “national team” investor, has reportedly begun to intervene in domestic stock markets to counter the panic unleashed by the US trade war, after Beijing earlier signalled it had policy tools available to deal with Washington’s reciprocal tariff blitz. The market intervention was reported by Chinese state media, citing unnamed sources. The report drove up stock prices, narrowing losses in the domestic A-share market. It followed assurances of support published in the... https://www.scmp.com/economy/global-economy/article/3305445/china-preps-protracted-trade-fight-hints-rate-cuts-fiscal-upswing?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3305445/china-preps-protracted-trade-fight-hints-rate-cuts-fiscal-upswing?utm_source=rss_feed Mon, 07 Apr 2025 03:37:34 +0000 In the face of trade protectionism and rising global uncertainties, China and the entirety of Asia can find ways to work together, one of China’s high-ranking vice-premiers said, while reiterating support for foreign investors “regardless of external changes”. Speaking on Thursday at the Boao Forum for Asia, Ding Xuexiang, the sixth-ranked member of China’s Politburo Standing Committee, reaffirmed Beijing’s commitment to propping up the economy with more proactive macro policies and the... https://www.scmp.com/economy/china-economy/article/3304064/china-hails-untapped-asian-partnerships-amid-protectionism-external-changes?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3304064/china-hails-untapped-asian-partnerships-amid-protectionism-external-changes?utm_source=rss_feed Thu, 27 Mar 2025 04:53:21 +0000 Europe and China have an opportunity to pave a path of multilateralism, as they share the same values for a rules-based trade relationship and have deepened financial cooperation, according to the managing director of the euro zone’s permanent rescue fund that helps protect member states in dire financial straits. At a time when others are challenging multilateralism and triggering widespread concerns, “we share the same worry in China and Europe”, said Pierre Gramegna, managing director of the... https://www.scmp.com/economy/global-economy/article/3303964/china-europe-share-same-worry-about-unilateralism-can-work-together-esm-director?utm_source=rss_feed https://www.scmp.com/economy/global-economy/article/3303964/china-europe-share-same-worry-about-unilateralism-can-work-together-esm-director?utm_source=rss_feed Thu, 27 Mar 2025 00:00:07 +0000 After more than two decades in China - including years spent teaching finance at Peking University and Tsinghua University - Michael Pettis has become an oft-cited voice on the challenges faced by the world’s second-largest economy. Before moving to Beijing, he also worked on Wall Street as a trader, with stints at JP Morgan and Bear Stearns. In this interview, Pettis discusses the dichotomy between China’s household consumption and its world-leading manufacturing sector, evaluates the new... https://www.scmp.com/economy/china-economy/article/3303369/economist-michael-pettis-chinas-consumption-paradox-and-pitfalls-trade-war?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3303369/economist-michael-pettis-chinas-consumption-paradox-and-pitfalls-trade-war?utm_source=rss_feed Sun, 23 Mar 2025 22:00:19 +0000 China must unleash a “more significant” monetary stimulus beyond its recently released growth plans to dispel market fears of deflation and boost domestic demand amid an intensifying trade war with the United States, a senior economist has warned. The 30-point strategy to boost consumption announced by the Chinese government on Sunday is a positive step, but further efforts are necessary, said Xu Dingbo, associate dean of the China Europe International Business School (CEIBS), at a conference in... https://www.scmp.com/economy/china-economy/article/3302978/china-needs-more-significant-stimulus-crush-deflation-fears-economist?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3302978/china-needs-more-significant-stimulus-crush-deflation-fears-economist?utm_source=rss_feed Wed, 19 Mar 2025 08:30:11 +0000 The top organs of the Chinese government and the ruling Communist Party jointly released a 30-point plan to boost domestic consumption on Sunday. The strategy, which analysts have described as Beijing’s most comprehensive policy to stimulate consumption since the 1970s, tackles a broad range of issues that will need to be addressed if China is to shift its economy onto a consumption-driven growth model. Below we offer a closer look at the key measures listed in the plan. Which measures are... https://www.scmp.com/economy/china-economy/article/3302718/what-actually-chinas-new-plan-boost-consumer-spending?utm_source=rss_feed https://www.scmp.com/economy/china-economy/article/3302718/what-actually-chinas-new-plan-boost-consumer-spending?utm_source=rss_feed Mon, 17 Mar 2025 13:30:08 +0000