China - Economic Data & News 14 (Apr 16 - Aug 16)

Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby winston » Tue Aug 09, 2016 6:49 pm

China Business & Economy, Economies Is the China Corporate Debt Bubble Finally Popping?

Defaults are soaring, the government evergreens loans, swaps debt for equity, and prepares launch of CDS market

By Valentin Schmid

Instead of keeping a loan that a company can’t repay and writing it down, the bank would get an equity stake in the company.

Because banks aren’t allowed to hold equity in companies, they would sell the equity stake to an AMC at a price the bank can afford without hurting bank equity too much.

AMCs would get the money from local or the central government or the central bank.


Kyle Bass estimates bad loans in Chinese banks could lose up to $3 trillion in bank capital if all loans were properly written down.


Source: Epoch Times

http://www.theepochtimes.com/n3/2134526 ... ydhoAj9w.1
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby winston » Wed Aug 10, 2016 4:38 am

How wealthy Chinese move hundreds of billions abroad to buy assets

Capital flight remains a concern for the authorities. But experts think the government has it under control, for now

China imposes strict capital control on residents, only allowing each individual to buy no more than US$50,000 in overseas assets annually.


“A widely used method is to fake invoices, such as overstating the value of imports,” he said.

For example, a Chinese company imports a machine and invoices it at US$1 million, while it’s actually worth US$500,000. The company pays the actual amount and puts the rest of the money in offshore bank accounts or invests it in other overseas assets.


For individuals who want to sneak out more than US$50,000 to buy overseas assets, such as a house in New York or Vancouver or Sydney, a popular way is to pool quotas of a group of family members or friends, with each person transferring US$50,000 out of the country.

The process is called “smurfing” in the banking industry, or “ants moving their house” in Chinese.


Another widely known method by individuals is to use underground private banks, which are popular in China’s southeastern provinces such as Guangdong.

A Chinese resident can deposit 1 million yuan in his account in a domestic private bank, and take out the same value of money in foreign currencies, such as Hong Kong dollar or US dollar, in the overseas branches of the bank as quickly as within hours.


Source: SCMP

http://www.scmp.com/business/companies/ ... buy-assets
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby winston » Wed Aug 10, 2016 4:45 am

Signs of mainland slowdown at bottom

China's producer prices fell at their slowest rate in nearly two years in July, the government said yesterday in a sign of improving conditions in the world's second largest economy.

The producer price index, which measures the cost of goods at the factory gate, fell 1.7 percent year-on-year last month, the National Bureau of Statistics said, as a rebound in some commodity prices reduced downward pressures.

China's PPI has been negative for more than four years but narrowing declines in the past three months have fueled hopes the country could be reaching the bottom of a painful slowdown. Consumer inflation, meanwhile, eased slightly in July.

The consumer price index - a main gauge of inflation - rose 1.8 percent year-on-year, the NBS said, lower than June's 1.9 percent rise but matching forecast.

Moderate inflation can be a boon to consumption as it pushes buyers to act before prices go up. A drop in food price inflation marred the figures, Julian Evans-Pritchard of Capital Economics said.

Source: AGENCE FRANCE-PRESS
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby behappyalways » Wed Aug 10, 2016 11:06 am

Last year, a city government in the eastern province of Jiangsu ordered a bank to sell 10 billion yuan worth of sour loans owed by state-owned enterprise to a local government-backed AMC for only 220 million yuan, sources said. The AMC later resold the assets to the original debtor for 250 million yuan. This means the debtor paid 30 million yuan to wipe-off a loan worth billions by recycling it through a bad-loan disposal company.

Carving up the Non-performing Loan Elephant
http://english.caixin.com/2016-08-08/100975319.html
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby behappyalways » Wed Aug 10, 2016 11:56 am

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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby behappyalways » Wed Aug 10, 2016 1:12 pm

One Path to Power in China Is Closed
http://www.bloomberg.com/view/articles/ ... -is-closed
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby behappyalways » Thu Aug 11, 2016 2:15 pm

China's cinema boom loses its lustre as sales slump

Source: BBC

http://www.bbc.com/news/business-37042191
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby behappyalways » Thu Aug 11, 2016 3:24 pm

未指定接班人 疑學普京做「皇帝」
習謀續任總書記逾十年
http://hk.apple.nextmedia.com/internati ... 1/19731643


behappyalways wrote:One Path to Power in China Is Closed
http://www.bloomberg.com/view/articles/ ... -is-closed
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby winston » Fri Aug 12, 2016 10:45 am

China’s Economy Slowed In July, Private Investment Growth Hit New Low

By Shuli Ren

China’s slowdown was seen everywhere.

In July, industrial output grew 6% from a year ago, below the street estimate of 6.2% and the 6.2% seen in June.

Retail sales grew 10.2% from a year ago, below the street expectation of 10.5% and the 10.6% seen in June.

In the first 7 months of the year, fixed asset investment grew 8.1% from a year ago, below the 8.9% seen by the street and the 9% previously. Even property development growth fell back. Private investment grew only 2.1%, a new historical low.

The National Bureau of Statistics acknowledged today that the Chinese economy faces the challenge of an economic slowdown.

Source: Barron's Asia
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Re: China - Economic Data & News 14 (Apr 16 - Dec 16)

Postby winston » Fri Aug 12, 2016 9:05 pm

Fast and furious? China's stalling box office points to consumer slowdown

Ticket sales dropped 10 percent in the second quarter of the year versus 2015, the first dip in around five years and a far cry from stellar growth at the start of the year.


Visits to cinemas fell 15 percent in July, after growing more than 50 percent last year and at the start of 2016. Av


Some analysts point to a recent crackdown on producers subsidizing or buying up unsold tickets to inflate box office sales, as also weighing on the sector, though similar campaigns failed to dent growth in 2014 or 2015.


The United States has five times as many cinema screens per person as China - leaving plenty of room for growth.


Outbound tourist numbers are also set to flatline this year, according to China National Tourism Administration (CNTA) data. Outbound tourists - another bellwether of consumer strength - had risen steeply for years and were up 16 percent in 2015.


Source: Reuters

http://www.reuters.com/article/us-china ... SKCN10L2PR
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