China - Economic Data & News 18 (Jun 20 - Dec 21)

[behappyalways]

Deleveraging..


美联储加息三部曲 中国将怎样应对
https://m.youtube.com/watch?v=o2lJWedOiB8

[winston]

China's industrial profit growth slows in May

Industrial profits rose 36 percent in May. XINHUA

China's industrial profit growth slowed in May as base effects from last year eased and businesses faced rising costs.

Industrial profits rose 36.4 percent in May from a year earlier, the National Bureau of Statistics said, compared with a 57 percent increase in the previous month.

In the first five months of the year, profits climbed 83.4 percent from a year earlier.

The steady recovery of market demand and continuous improvement of industrial companies' operation have contributed to the sustained growth in profits, Zhu Hong, an economist with the statistics bureau, said.

Yet the recovery is still unbalanced with smaller companies registering a slower pace than large and medium-sized enterprises, he said.

Rising commodity prices have boosted profits for upstream industries such as raw material producers but put a squeeze on downstream businesses as input costs climbed.

Producer prices rose 9 percent in May from a year earlier, the fastest pace since 2008, mainly due to higher metal prices.

Profit growth in mining in the five-month period remained strong at 136 percent, while manufacturing posted gains of 85.2 percent.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... ows-in-May

[behappyalways]

廣東與 δ α 變異株交鋒 拖累全球航運 TVBS文茜的世界財經周報 20210627 X 富蘭克林‧國民的基金
https://m.youtube.com/watch?v=p9errQ7RkEA

[behappyalways]

Shanghai launches big PR push for 100th anniversary of China’s Communist Party
https://m.youtube.com/watch?v=vOK3Fms7dW0

[winston]

China's cabinet says it will use RRR cuts to support real economy

China will use timely cuts in the bank reserve requirement ratio (RRR) to support the real economy, especially small firms, the cabinet said on Wednesday.

The People's Bank of China (PBOC) has been gradually scaling back pandemic-driven stimulus to curb debt risks, keeping borrowing costs low and telling banks to maintain support for small firms.

China will lower financing costs for small companies to help them cope with rising commodity prices, the cabinet said.

The country will keep monetary policy stable while increasing policy effectiveness but will not resort to "flood-like" stimulus, it added.

Source: OCBC

[winston]

China economic policy easing ‘would be no surprise’ after Beijing signals rate cut

Move would be the first cut in more than a year, and analysts say it would step up financial support for the economy, which could boost job growth

However, some small and medium-sized enterprises ‘would continue to operate in difficult conditions’ even if banks are encouraged to lend more money, one economist warns

by Orange Wang and Frank Tang

China is looking to take a different approach due to an expected slowdown in its economic growth during in the second half of the year, after its economy roared back to pre-pandemic growth rates in the fourth quarter of last year.

Lu Ting, chief China economist at Nomura, estimated that the RRR would be cut by 0.5 per cent in the coming weeks to counter the growing downward pressure in the economy, but he did not expected a firm policy rate cut in the second half of the year.

The State Council, China’s cabinet, had reaffirmed that Beijing will “avoid opening the water gates and flooding the market with liquidity”.

The PBOC had already cut the RRR three times in the first four months of last year, releasing about 1.75 trillion yuan worth of liquidity, as part of its 9-trillion-yuan package to fight the coronavirus pandemic, stabilise the economy and provide support to businesses and individuals.

Source: SCMP

https://www.scmp.com/economy/china-econ ... rise-after

[winston]

China freeing up 1 trillion yuan will help support businesses, but impact seen as ‘negligible’ to economy in near-term

People’s Bank of China confirmed on Friday that it will cut the reserve requirement ratio (RRR) for financial institutions from next Thursday to support the real economy

The reserve ratio is the portion of a commercial bank’s liabilities that it must hold onto against possible losses, rather than lend or invest

by Frank Tang and Su-Lin Tan

Source: SCMP

https://www.scmp.com/economy/china-econ ... e=homepage

[behappyalways]

Why is Beijing cracking down on Chinese tech giants listed on Wall St? | DW Business
https://www.youtube.com/watch?v=GV4O0OTtgmw

[winston]

Beijing clamp on overseas listings won't benefit HK

by Andrew Wong

The guidelines require all red-chip variable interest entities to get approval from the China Securities Regulatory Commission before going public in the United States or Hong Kong.

Firstly, relations between China and the United States and even other European states continue to be at low point, so if Chinese firms list overseas, there is the fear that US regulators might take advantage of listing hearings and force them to hand over sensitive information.

Second, the meteoric rise of Tencent, Alibaba and other tech giants have made their assets huge enough to compete with a country. So if these enterprises are listed overseas or in Hong Kong and they cash out their assets there, it could result in massive outflows from China.

Thus, tech stocks with billions or trillions in market value may find it difficult to perform well while those below market value might have better prospects, which is worth noting.

Source: The Standard

https://www.thestandard.com.hk/section- ... benefit-HK

[winston]

Inflation in China moderated

Growth in CPI eased to 1.1% in June, a tad slower than consensus, while factory-gate inflation decelerated to 8.8% after prices for commodities wilted.

Inflation will continue to retreat gradually, Bloomberg Economics said.

Source: OCBC