China - Economic Data & News 22 (Jul 24 - Dec 26)

[behappyalways]

China's GDP grew by 5% in the first quarter, but credit card issuance fell to a seven-year low.

陸首季GDP增5% 信用卡發卡量卻跌至七年最低｜方念華｜FOCUS全球新聞20260417 ‪@tvbsfocus‬

https://m.youtube.com/watch?v=paIoYxl8NxQ

[behappyalways]

Are Western big brands losing their appeal? Foreign companies are struggling with low customer loyalty in the Chinese market.

西方大牌不香了? 中國市場低忠誠度外資陷苦

https://m.youtube.com/watch?v=wj5OshYx6gU

[behappyalways]

Private Sector Struggles In Major Chinese Industrial Base As Export Orders Shrink: Local Businessmen
https://www.zerohedge.com/economics/pri ... rink-local

[winston]

China’s US$3 trillion of hidden bad debt prolongs economic pain

Chinese banks are also accelerating write-offs and transfers of bad assets

Most economists say the ratio of bad loans is significantly higher than the 1.5 per cent official rate.

One analyst at Absolute Strategy Research in London pegs it at about 10 per cent, which would mean a staggering US$3 trillion in loans that should be classified as past due are not. Others say it could be double that amount.

In March, China lowered its 2026 growth target to between 4.5 per cent and 5 per cent, its least ambitious goal since 1991.

Despite seemingly strong capital buffers and stable non-performing loan (NPL) ratios, officials have moved to bolster the nation’s six biggest banks with more than US$100 billion in fresh capital.

About 10 per cent of listed non-financial firms have failed to cover interest payments from their earnings before interest and tax for three consecutive years, according to Absolute Strategy Research. As a result, the NPL ratio is probably closer to 10 per cent than 1.5 per cent.

These so-called zombie firms accounted for 16 per cent of assets at non-financial companies in China in 2024, up from just 5 per cent in 2018. While the real estate sector has the highest rate, the manufacturing and services sectors are rising, too, the report found.

To counter the weak loan books and shore up the banks’ balance sheets, the government is injecting money into the lenders. China will issue a total of 300 billion yuan worth of special sovereign bonds this year to recapitalise banks, adding to a 500 billion yuan lifeline last year.

Source: Bloomberg

https://www.businesstimes.com.sg/compan ... nomic-pain