retail sales – Bizchina Update http://bizchina-update.com/ Sun, 27 Mar 2022 00:45:15 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://bizchina-update.com/wp-content/uploads/2021/10/icon-120x120.jpg retail sales – Bizchina Update http://bizchina-update.com/ 32 32 The Chinese economy accelerates in January-February; Omicron cases cloud outlook https://bizchina-update.com/the-chinese-economy-accelerates-in-january-february-omicron-cases-cloud-outlook/ Tue, 15 Mar 2022 06:17:00 +0000 https://bizchina-update.com/the-chinese-economy-accelerates-in-january-february-omicron-cases-cloud-outlook/ Industrial production Jan.-Feb. +7.5% y/y vs f’cast +3.9% Retail sales +6.7% y/y vs f’cast +3.0% Investment in fixed assets +12.2% y/y, vs f’cast +5.0% Strength may not last as COVID cases jump – analysts BEIJING, March 15 (Reuters) – China’s economy rebounded in the first two months of 2022, with key indicators all beating analysts’ […]]]>
  • Industrial production Jan.-Feb. +7.5% y/y vs f’cast +3.9%
  • Retail sales +6.7% y/y vs f’cast +3.0%
  • Investment in fixed assets +12.2% y/y, vs f’cast +5.0%
  • Strength may not last as COVID cases jump – analysts

BEIJING, March 15 (Reuters) – China’s economy rebounded in the first two months of 2022, with key indicators all beating analysts’ expectations, although an increase in Omicron business, weak real estate and heightened global uncertainties weigh on the outlook.

Industrial production rose 7.5% in January-February from a year earlier, the fastest pace since June 2021 and up from a 4.3% increase seen in December, Tuesday showed data from the National Bureau of Statistics. This compared to a 3.9% rise expected by analysts in a Reuters poll.

Retail sales, a lagging indicator of consumption since the hit of COVID-19, rose 6.7% year-on-year amid rising demand during the Lunar New Year holidays and the Olympics. winter. It also marked the fastest clip since June last year and beat expectations for a 3.0% rise in the poll.

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It posted a 1.7% gain in December.

The surprisingly strong performance of the world’s second-largest economy in the new year may have enabled the People’s Bank of China (PBOC) to keep its policy rates stable on Tuesday, said Iris Pang, chief economist for Greater China at ING, in a note.

The PBOC kept its one-year medium-term lending rate unchanged earlier in the day, dashing expectations of a cut, although investors believe policymakers may soon resume monetary easing to support the slowdown. economy. Read more

The statistics released combine economic data from January to February to help smooth out distortions caused by the Lunar New Year holiday, which fell in early February this year.

One of the data highlights was strong retail sales growth, which was boosted by sales of Winter Olympics-related products, such as ski gear and ice sports, Fu said. Linghui, spokesperson for the statistics bureau, at a press conference.

Bing mascot Dwen Dwen was an unexpected star of the Beijing Olympics, with thousands of fans queuing in sub-freezing temperatures to buy goods – from magnets and key rings to bags and soft toys – and factories scrambling to make more. Read more

The strong numbers came after growth lost momentum throughout last year due to a liquidity crunch in the housing market and stringent anti-virus measures that hit consumption.

“Indeed, every data point has bounced back, mainly because the political effects started early this year, with an easing in the infrastructure and real estate sectors. Restoration spending also remained relatively strong,” said Qu Qing, chief economist at Jianghai Securities.

However, analysts warn that any nascent recovery, which would help China reach an ambitious target of around 5.5% for 2022, could not be sustained due to the surge in COVID cases, a weak real estate market and the uncertain global recovery. Read more

Chinese stocks fell sharply on Tuesday as a rise in coronavirus cases overshadowed data and threatened the outlook.

“The momentum of economic recovery in January-February has been good. At the same time, we must also see that the external environment is still complex and severe, and China’s economic development faces many risks and challenges. “said Mr. Fu from the statistics office.

Analysts expect the central bank to continue to ease policy to support the economy.

“We still need to cut interest rates and reserve requirement ratios as soon as possible. There should be no hesitation in supporting easing policies,” said Wang Jun, chief economist at Zhongyuan Bank.

Premier Li Keqiang said last week that he was confident of achieving the economic growth target of around 5.5% for this year despite challenges including the war in Ukraine. Li also promised to provide more political support during the year. Read more

RESUMPTION OF INVESTMENTS IN INFRASTRUCTURES

Investments in fixed assets rose 12.2% in January-February from a year earlier, compared with a 5.0% increase predicted by a Reuters poll and 4.9% growth in 2021. The figure was the highest since July last year.

Investments in infrastructure rose 8.1%, helped by the move to this year’s early-loading 2022 local government special bonds.

Real estate investment rose 3.7% year on year in the first two months of 2022, following a 13.9% plunge in December, the data showed.

The slowdown in the housing market has also shown signs of easing, but sales are still mired in contraction while new construction starts have fallen by double digits.

“We continued to stabilize land prices, house prices and expectations, and there were positive changes in the real estate market,” Fu said.

China’s property market cooled last year as Beijing’s deleveraging drive triggered a liquidity crunch in some major property developers, leading to bond defaults, plummeting stock prices and suspended or suspended projects. left unfinished.

“The resurgence of COVID in several provinces is an additional drag on activity growth. Despite the relaxation of local real estate policy, real estate indicators, in particular new housing starts and land sales, have continued to Further policy easing would be needed to meet the challenging roughly 5.5% ‘growth target this year,’ Goldman Sachs analysts wrote in a note.

The national survey-based unemployment rate rose to 5.5% in February from 5.3% in January, but Fu said the rise was largely due to seasonal factors and the rate could drop after March.

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Additional reporting by Ellen Zhang, Liangping Gao and Ryan Woo; Editing by Sam Holmes, Bernard Orr

Our standards: The Thomson Reuters Trust Principles.

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China’s economy is slowing, a worrying sign for the world https://bizchina-update.com/chinas-economy-is-slowing-a-worrying-sign-for-the-world/ Mon, 17 Jan 2022 19:52:30 +0000 https://bizchina-update.com/chinas-economy-is-slowing-a-worrying-sign-for-the-world/ BEIJING – Construction and real estate sales have fallen. Small businesses have closed due to rising costs and weak sales. Local authorities in debt reduce the salaries of civil servants. China’s economy slowed markedly in the final months of last year as government measures to curb property speculation also hurt other sectors. Lockdowns and travel […]]]>

BEIJING – Construction and real estate sales have fallen. Small businesses have closed due to rising costs and weak sales. Local authorities in debt reduce the salaries of civil servants.

China’s economy slowed markedly in the final months of last year as government measures to curb property speculation also hurt other sectors. Lockdowns and travel restrictions to contain the coronavirus have also weighed on consumer spending. Strict regulations on everything from internet businesses to after-school tutoring businesses have sparked a wave of layoffs.

China’s National Bureau of Statistics said Monday that economic output from October to December was only 4% higher than the same period a year earlier. This is a deceleration from the 4.9% growth in the third quarter, from July to September.

Global demand for consumer electronics, furniture and other home comforts during the pandemic has produced record exports for China, preventing its growth from stalling. For the whole of last year, China’s economic output was 8.1 percent higher than in 2020, the government said. But much of the growth took place in the first half of last year.

The snapshot of the Chinese economy, the main engine of global growth in recent years, reinforces expectations that the global economic outlook is beginning to darken. Worse still, the Omicron variant of the coronavirus is now beginning to spread in China, leading to more restrictions across the country and raising fears of further disruption to supply chains.

The slowing economy poses a dilemma for Chinese leaders. The measures they have imposed to tackle income inequality and curb businesses are part of a long-term plan to protect the economy and national security. But officials fear they could cause near-term economic instability, especially in a year of unusual political importance.

Next month, Beijing will host the Winter Olympics, which will shine the international spotlight on the country’s performance. In the fall, Xi Jinping, the Chinese leader, is expected to seek a third five-year term at a Communist Party congress.

Mr. Xi sought to strike an optimistic note. “We have every confidence in the future of China’s economy,” he said in a speech to a virtual session of the World Economic Forum on Monday.

But with slowing growth in his country, slowing demand and debt still at near-record levels, Mr. Xi could face some of the biggest economic challenges since Deng Xiaoping began to pull the country out of debt. its Maoist yoke four decades ago.

“I fear that the operation and development of China’s economy in the coming years will be relatively difficult,” Li Daokui, a prominent economist and adviser to the Chinese government, said in a speech late last month. “Looking at the five years as a whole, this is perhaps the most difficult period since our reform and opening up 40 years ago.”

China also faces the problem of a rapidly aging population, which could create an even greater burden on the Chinese economy and its workforce. The National Bureau of Statistics said on Monday that China’s birth rate had fallen sharply last year and was now barely higher than the death rate.

As the costs of many raw materials have risen and the pandemic has prompted some consumers to stay home, millions of private businesses have collapsed, most of them small and family-owned.

This is a big concern because private companies are the backbone of China’s economy, accounting for three-fifths of output and four-fifths of urban employment.

Kang Shiqing invested much of her savings nearly three years ago to open a women’s clothing store in Nanping, a river town in southeastern Fujian province. But when the pandemic hit a year later, customer numbers dropped drastically and never recovered.

As in many countries, there has been a broad shift in China towards online shopping, which can undermine stores by using less labor and operating from cheap warehouses. Mr. Kang was forced to pay high rent for his store despite the pandemic. He finally closed it in June.

“We can barely survive,” he said.

Another lingering difficulty for small businesses in China is the high cost of borrowing money, often at double-digit interest rates from private lenders.

Chinese leaders are aware of the challenges faced by private companies. Premier Li Keqiang has promised further tax and fee cuts to help the country’s many struggling small businesses.

On Monday, China’s central bank made a small move to cut interest rates, which could help slightly reduce interest charges for the country’s heavily indebted property developers. The central bank cut its benchmark interest rates for one-week and one-year loans by about a tenth of a percentage point.

The construction and equipping of new housing represents a quarter of the Chinese economy. Large loans and widespread speculation have helped the country erect the equivalent of 140 square feet of new housing for every urban resident over the past two decades.

This fall, the sector faltered. The government wants to limit speculation and deflate a bubble that had made new housing unaffordable for young families.

China Evergrande Group is just the largest and most visible of a long list of real estate developers in China that have faced serious financial difficulties in recent times. Kaisa Group, China Aoyuan Property Group and Fantasia are among other developers who have struggled to make payments as bond investors grow wary of lending money to China’s property sector.

As real estate companies try to conserve cash, they are launching fewer construction projects. And that has been a big problem for the economy. The price of steel rebar for concrete in apartment towers, for example, fell by a quarter in October and November before stabilizing at a much lower level in December.

Falling house prices in small towns have hurt the value of people’s assets, making them less willing to spend. Even in Shanghai and Beijing, apartment prices are no longer rising.

There have been faint signs of renewed government support for the property sector in recent weeks, but no sign of a return to lavish lending by state-controlled banks.

Evergrande’s financial distress “is a signal that money will be pushed from real estate to the stock market,” said Hu Jinghui, an economist who is a former chairman of the China Alliance of Real Estate Agencies, a trade group. national. “Policies can be relaxed, but there can be no turning back.”

The slowdown in the housing market has also hurt local governments, which rely on land sales as their main source of revenue.

The International Monetary Fund estimates that government land sales each year have raised funds equivalent to 7% of the country’s annual economic output. But in recent months, developers have scaled back land purchases.

Starved of revenue, some local governments have halted hiring and cut bonuses and benefits for civil servants, prompting widespread complaints on social media.

In Hangzhou, the capital of Zhejiang province, a civil servant’s complaint about a 25% cut in her salary quickly spread on the internet. The city government did not respond to a fax requesting comment. In the northern province of Heilongjiang, the city of Hegang announced that it would no longer hire “junior” workers. City officials removed the ad from the government website after it came to public attention.

Some governments have also increased fees charged to businesses in an attempt to make up the shortfall.

Bazhou, a city in Hebei province, levied 11 times more fines for small businesses from October to December than in the first nine months of last year. Beijing has criticized the city for undermining a national effort to reduce the cost of doing business.

Strong foreign demand for Chinese exports, especially consumer goods, has spurred a domestic wave of investment in new factories, up 13.5 percent last year from 2020.

Some areas of consumer spending have been quite robust, notably the luxury sector, where sports cars and jewelry are selling well. Retail sales rebounded 12.5% ​​last year from pandemic-depressed levels in 2020. But retail sales fell in December from November as coronavirus restrictions kept some shoppers at home.

Few expect the government to allow a severe economic downturn this year ahead of the Communist Party Congress. Economists expect the government to ease restrictions on lending and increase public spending.

“The first half of the year will be tough,” said Zhu Ning, vice dean of the Shanghai Advanced Institute of Finance. “But then the second half will see a rebound.”

Li you contributed to the research.

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China’s economy grew 8.1% in 2021, but growth is slowing – WISH-TV | Indianapolis News | Indiana Weather forecast https://bizchina-update.com/chinas-economy-grew-8-1-in-2021-but-growth-is-slowing-wish-tv-indianapolis-news-indiana-weather-forecast/ Sun, 16 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinas-economy-grew-8-1-in-2021-but-growth-is-slowing-wish-tv-indianapolis-news-indiana-weather-forecast/ (CNN) – China’s economy grew 8.1% last year, far exceeding the government’s own targets. But weaker growth in the final months of 2021 suggests trouble is still on the horizon as the country grapples with a deepening housing crisis, new COVID-19 outbreaks and the Beijing’s strict no-tolerance approach to controlling the virus. This figure is […]]]>

(CNN) – China’s economy grew 8.1% last year, far exceeding the government’s own targets. But weaker growth in the final months of 2021 suggests trouble is still on the horizon as the country grapples with a deepening housing crisis, new COVID-19 outbreaks and the Beijing’s strict no-tolerance approach to controlling the virus.

This figure is roughly in line, if not slightly above, the expectations set by many economists. And it exceeds the Chinese government’s goal last year of growing its economy by at least 6% by 2021.

But GDP only increased by 4% in the last quarter of the year compared to the previous year. Although higher than the 3.6% growth forecast in a Reuters poll of analysts, it is still the slowest pace in a year and a half.

Growth in the fourth quarter was boosted by industrial production, which rose 4.3% in December from a year earlier, an acceleration from 3.8% growth in November.

But consumption has weakened considerably. Retail sales rose only 1.7% in December from a year earlier, significantly lower than November’s 3.9% increase.

China has recently faced a host of problems, including turmoil in its real estate sector and a series of COVID-19 outbreaks.

Struggling Chinese property developer Evergrande – which has total liabilities of around $300 billion – is struggling to pay its debts and was recently ordered to demolish a few dozen buildings in the country. Analysts have long feared that a collapse in Evergrande could trigger greater risks for China’s property market, hurting homeowners and the wider financial system.

Beijing’s unwavering insistence on eradicating all traces of the coronavirus, meanwhile, faces a huge test as authorities battle the accelerating spread of Omicron. And an outbreak of the older Delta variant recently forced the industrial hub of Xi’an into lockdown, affecting production lines at global chipmakers like Samsung and Micron.

Economists have warned that China’s zero-COVID approach to containing the virus could spell serious trouble for the economy in 2022. Goldman Sachs, for example, cut its projection for China’s economic growth in 2022 to 4.3% against 4.8%, just over half of the last figure of the year.

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China’s economy grew 8% in 2021, but property and virus threats loom: poll https://bizchina-update.com/chinas-economy-grew-8-in-2021-but-property-and-virus-threats-loom-poll/ Sat, 15 Jan 2022 08:00:00 +0000 https://bizchina-update.com/chinas-economy-grew-8-in-2021-but-property-and-virus-threats-loom-poll/ This file photo taken on December 16, 2021 shows a man waiting to cross a road in Beijing’s central business district. China’s economy grew at its fastest pace for 10 years in 2021, according to an AFP analyst poll, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a slowdown in […]]]>

This file photo taken on December 16, 2021 shows a man waiting to cross a road in Beijing’s central business district. China’s economy grew at its fastest pace for 10 years in 2021, according to an AFP analyst poll, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a slowdown in the economy. real estate sector. -AFP photo

China’s economy grew at its fastest pace for 10 years in 2021, according to an AFP analyst poll, but its strong recovery from the Covid-19 pandemic is threatened by Omicron and a slowdown in the economy. real estate sector.

The 8% growth would be well above the government’s target of more than 6%, and comes after a strong start to the year as a ‘zero-Covid’ policy has enabled the country to lead the global economic recovery.

China’s exports jumped nearly 30% last year on strong global demand as countries reopened from pandemic lockdowns, boosting its faltering economy.

But the country’s recovery in the second half of 2021 has been hampered by a series of epidemics – with authorities reimposing strict containment measures – as well as power outages caused by an emissions reduction campaign, supply chain problems and soaring energy costs.

While forecasts point to good annual growth – compared to 2.3% in 2020 – these problems have slowed down factory activity and led to the closure of businesses.

They have been compounded by a debt crackdown in the real estate sector, which accounts for a large part of the economy.

“The key factors (…) were the impact of power cuts, the slowdown in the residential construction sector and the moderation in retail sales,” said Rajiv Biswas, chief economist for the Asia region. Pacific at IHS Markit.

Analysts reported growth of just 3.5% year-on-year for the fourth quarter, compared to 4.9% the previous three months and 7.9% from April to June.

And headwinds from the slowdown in the construction sector, as well as the impact of Covid measures on consumer spending, will likely act as a “significant drag” on growth this year, Biswas added.

Beijing is on high alert as it prepares to host the Winter Olympics next month, with its zero Covid policy fueling lockdowns, border restrictions and lengthy quarantines.

“The current resurgence of the coronavirus poses significant downside risks to China’s economic recovery…under the government’s zero-tolerance approach,” said ANZ Research’s chief economist for the Great Britain. China, Raymond Yeung.

Yeung noted that Ningbo Port, the world’s third-busiest, was facing disruptions as cases led to truck entry restrictions, suspension of container cargo operations and roadblocks.

“These delays and backlogs could exacerbate shipping cost inflation and put pressure on export volumes,” he told AFP.

Another major port city – Tianjin – was hit by an Omicron cluster in January, the first time the virus strain was found in the community in China.

Analysts expect China will not ease its policy before the end of the Games.

Stay-at-home orders in the industrial heartland of Xi’an likely also disrupted manufacturing activities, Citibank said, as the city of 13 million was placed under a severe lockdown in December.

Uncertainties surrounding the real estate sector have also accelerated the cooling of fixed asset investment, DBS Bank economists said, adding that “tension will persist in the face of rising financial strains.”

Already, two-thirds of the top 30 real estate companies by sales have crossed one of “three red lines” set by regulators, DBS analysts Nathan Chow and Eugene Leow said in a recent report, referring to different debt ratios aimed at reducing leverage.

The crackdown that began in late 2020 dealt a heavy blow as developers – primarily Evergrande – plunged into liquidity crunches, raising concerns among investors and homebuyers.

“Reports of increased developer liquidity issues and construction or delivery delays will only further undermine confidence,” DBS analysts said.

This year, authorities hit some of the country’s largest companies with new restrictions and regulations, targeting concerns such as national security and allegations of monopolistic behavior.

But Macquarie economists expect authorities to return to “supporting growth” this year, with some signs that shifting priorities will reduce pressure on the property sector.

“It doesn’t mean regulation has ended, but it does mean the peak of regulation, the peak of property crunch and the peak of decarbonization are behind us,” said economists Larry Hu and Xinyu Ji.

Gene Ma, head of China research at the Institute of International Finance, said: “We expect further monetary easing and greater fiscal expansion this year.”

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The most read topics on the Chinese economy in 2021 https://bizchina-update.com/the-most-read-topics-on-the-chinese-economy-in-2021/ Fri, 31 Dec 2021 08:00:00 +0000 https://bizchina-update.com/the-most-read-topics-on-the-chinese-economy-in-2021/ Skyline of Shenzhen, China. /APC Skyline of Shenzhen, China. /APC The year 2021 for the Chinese economy has been marked by growing uncertainties caused by scattered outbreaks of Covid-19 and decisive regulatory reform in key areas. As the pandemic continues to weigh on the economy, consumer spending is showing signs of slowing. With competition in […]]]>

Skyline of Shenzhen, China. /APC

Skyline of Shenzhen, China. /APC

The year 2021 for the Chinese economy has been marked by growing uncertainties caused by scattered outbreaks of Covid-19 and decisive regulatory reform in key areas.

As the pandemic continues to weigh on the economy, consumer spending is showing signs of slowing. With competition in the technology sector and new fabricated accusations against Xinjiang, tensions between China and the United States are rising. In the face of all domestic and international challenges, China has implemented a series of regulatory changes in key industries to resolve risks and ensure healthy development.

Here are the most watched and read topics on China’s economy and enterprises during the year on the CGTN website.

Consumption

As the pandemic spreads with epidemics, retail sales of social consumer goods in China in 2021 still recorded monthly growth, but were often below analysts’ expectations.

Chain stores that have expanded rapidly in recent years are now under pressure, such as popular Chinese hotpot chain Haidilao, which plans to close around 300 underperforming restaurants by the end of this year. The chain had more than 1,500 restaurants on the mainland as of mid-2021, according to its website.

Compared to physical stores, online business continued to experience strong growth this year, driven by e-commerce live streaming and emerging national brands.

During this year’s Double Eleven shopping festival (November 1-11), the two major online shopping platforms, Alibaba’s Tmall and JD.com, recorded growth of 8.45% and 29% respectively in year-on-year.

Read more:

Chinese hot pot chain Haidilao to close 300 restaurants by end of 2021 after massive expansion

Made in Xinjiang

In recent years, anti-China forces have been keen to play the Xinjiang card – alleging that Xinjiang products are made by “forced labor”.

Better Cotton Initiative (BCI), a London-based NGO, caught on to the trend and announced it had ceased all operations in northwest China’s Xinjiang Uyghur Autonomous Region over the same charge.

Some fashion companies, such as H&M and NIKE, claimed that they “do not work with any garment factories located in Xinjiang”, although without proof of the accusations, quickly received a boycott from Chinese consumers.

The BCI, however, quietly removed its Xinjiang statement from its website without giving a future explanation, while its Shanghai office said it found no cases of “forced labor” in Xinjiang in a press release published at the end of March.

Read more:

BCI removes Xinjiang cotton statement from its website

Tech War

After nearly three years of detention in Canada, Huawei Technologies chief financial officer Meng Wanzhou returned to China in September. It was widely seen as China’s victory in years of battle with long-arm US jurisdiction amid a escalating tech war between the world’s two largest economies.

Meng was arrested in December 2018 at Vancouver International Airport on a US warrant charging her with bank fraud for allegedly misleading HSBC Holdings about Huawei’s business dealings in Iran, but Meng and Huawei have denied the charges.

Chinese Foreign Ministry spokeswoman Hua Chunying said the charges against Meng were purely fabricated and that her detention was “arbitrary”.

She was deemed free to leave Canada without extradition proceedings in Canada or prosecution in the United States after reaching a deferred prosecution agreement with the United States Department of Justice.

Read more:

Meng Wanzhou returns to China after 3 years of detention in Canada

Where is Huawei going after the chip shortage?

The growing competition began under the Trump administration and continued under current US President Joe Biden.

Beginning as a trade dispute, the conflict quickly escalated into a battle over core technologies, including semiconductors, 5G and AI.

In December, more Chinese companies were added to the U.S. Commerce Department’s entity list and an investment blacklist by the Treasury Department.

Read more:

China condemns US unjustified suppression of Chinese companies

Carbon reduction

This year, China officially launched its long-awaited domestic carbon trading market in July.

China’s Emissions Trading System (ETS), which has replaced the EU’s as the world’s largest emissions trading system, is expected to help China deliver on its reduction in carbon emissions – reaching peak carbon emissions by 2030 and carbon neutrality by 2060.

China will firmly control energy-intensive and emission-intensive projects, aiming to improve its “double-checking system” on energy consumption and energy intensity, or the amount of energy consumed per unit of GDP.

Read more:

CGTN Explains: Understanding China’s Domestic Carbon Emissions Trading Market

Regulatory Storms

To avoid speculation and systematic risk, China established a new regulatory guideline in 2020 to control the leverage of real estate developers and asked banks to cap outstanding real estate and mortgage loans this year.

Some real estate developers who were exposed to high leverage and indiscriminate expansion, struggled with liquidity pressures and even defaulted, such as China Evergrande.

But market regulators, including the central bank, reiterated that individual cases will not impact regular market funding and local governments have worked with developers to address risks and maintain stable development of the market. Chinese real estate sector.

Read more:

PBOC: Evergrande’s debt issuance will have no impact on long-term funding

Another major regulation has landed on the after-school tutoring (AST) industry, which has boosted Chinese parents’ anxiety with soaring investment.

China announced in July that it would ban curriculum-based AST companies from raising capital through public listings, and listed companies will not be allowed to invest in curriculum-based ASTs. through equity investments or to acquire AST assets (through the issuance of shares or cash).

The new rules also prohibited the granting of new AST licenses, and existing AST operators were only allowed to register their schools as nonprofits.

The new regulations (which leave the sector once seen as a “cash cow” in the education sector abandoned by investors) aim to further improve the quality of education and school teaching.

Read more:

China bans tutoring institutions in basic school subjects from IPO and foreign M&A

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Chinese economy: LPR reduced for the first time in 20 months https://bizchina-update.com/chinese-economy-lpr-reduced-for-the-first-time-in-20-months/ Mon, 20 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinese-economy-lpr-reduced-for-the-first-time-in-20-months/ The People’s Bank of China on Monday cut its one-year lending prime rate (LPR) by 5 basis points to 3.8%. the The LPR is the rate at which commercial banks lend to their best customers and it serves as a reference rate for other loans. While Monday’s rate cut is small, it’s the first such […]]]>
The People’s Bank of China on Monday cut its one-year lending prime rate (LPR) by 5 basis points to 3.8%. the The LPR is the rate at which commercial banks lend to their best customers and it serves as a reference rate for other loans.
While Monday’s rate cut is small, it’s the first such move since April 2020, when China cut the rate to boost its Covid-hit economy, which had correct contracted for the first time in more than 40 years.

“The cut reinforces our view that authorities are increasingly open to cutting interest rates amid looming economic headwinds,” Zhaopeng Xing, senior China strategist at ANZ, said Monday. in a research note.

A lower lending rate can help reduce borrowing costs for households and businesses and thereby encourage consumers to expenses and investments.

Unlike the West, Beijing has refrained from flooding the economy with stimulus packages during the pandemic, instead focusing on offering targeted support to small businesses.

China was the only major economy to register growth in 2020, but this year the country’s expansion has been hit by several factors, forcing it to consider ways to provide support even as other major banks central governments are withdrawing stimulus and raising interest rates to fight inflation.

A power shortage has hampered industrial production for much of this year as the country struggles to balance its electricity needs with efforts to tackle the climate crisis.
Government data last week showed house prices fell for a third consecutive month in November, a sign that the ongoing housing crisis continues to deepen.
Retail sales have also struggled, suggesting the coronavirus outbreaks and the government’s “zero-Covid” approach of locking down areas where infections flare up are weighing heavily on the economy.
China’s top leaders have already expressed concerns about growth prospects. At a key economic meeting earlier this month, they said “securing stability” would be a top priority for the year ahead. It’s a huge pivot from last year’s meeting, when “limiting the disorderly expansion of capital” dominated the day.

To counter rising economic risks, policymakers pledged at this year’s meeting to implement “front load” policies, including keeping monetary policy “flexible”.

Last week, the central bank lowered the reserve requirement ratio for most banks by half a percentage point. The move, which reduces the amount of money banks must keep in reserve, is expected to free up some 1.2 trillion yuan ($188 billion) for lending to businesses and households, according to the PBOC.

China injects 188 billion dollars into the economy to counter the real estate crisis

Monday’s LPR cut is expected to reduce “interest burden” by about 80 billion yuan ($12.6 billion) a year, starting next year, for businesses and households, it said. Xing from ANZ.

“The PBOC wants to provide more easing because it is more concerned with economic dynamics,” Societe Generale analysts said in a research note on Monday.

“There should be no doubt now that a serious (although still limited) easing cycle is unfolding.”

Economists say the world’s second-largest economy could grow next year at its slowest pace since 1990.

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Chinese Economy Slows As Virus Outbreaks Disrupt Recovery | Madison.com Health, Sports Health & Fitness https://bizchina-update.com/chinese-economy-slows-as-virus-outbreaks-disrupt-recovery-madison-com-health-sports-health-fitness/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinese-economy-slows-as-virus-outbreaks-disrupt-recovery-madison-com-health-sports-health-fitness/ [ad_1] Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, December 14, 2021. China announced Wednesday, December 15, 2021 that its economy has slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. Uncredited – stringer, CHINATOPIX PA BEIJING (AP) – China on Wednesday […]]]>


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Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, December 14, 2021. China announced Wednesday, December 15, 2021 that its economy has slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.


Uncredited – stringer, CHINATOPIX


PA

BEIJING (AP) – China on Wednesday said its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to stimulate growth at a time when tightening borrowing limits by developers is slowing construction and sales in the all-important real estate sector.

The Beijing Winter Olympics from Feb. 4 to 20 are likely to have “limited impact overall,” National Statistics Bureau spokesman Fu Linghui told reporters as pandemic restrictions limit travel and other activities.

Fu said the global environment is becoming “more complex and harsher,” but China still hopes to meet its economic targets for this year.

The novel coronavirus was first reported in China, and the ruling Communist Party has championed its success in bringing the pandemic under control. Sporadic epidemics and the emergence of new viral variants remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been expressed over the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery/ Job : December 15, 2021 / 03:12 MST / Update: December 15, 2021 / 4:14 a.m. MST Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, Dec. 14, 2021. China reported on Wednesday, Dec. 15, 2021, that its economy had slowed in November, rocked by coronavirus outbreaks, […]]]>

Job :
Update:

Workers wearing face masks sew fabric at a garment factory in Shenyang, northeast China’s Liaoning Province, Tuesday, Dec. 14, 2021. China reported on Wednesday, Dec. 15, 2021, that its economy had slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. (Chinatopix via AP)

BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate sector. .

The Beijing Winter Olympics from February 4 to 20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic restrictions limit travel and other activites.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“With the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macro policy adjustments, the major economic and social development goals for this year are expected to be achieved,” he said. he declared. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-2/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-2/ The Beijing Winter Olympics from February 4-20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic-related restrictions limit travel and other activities. Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year. The […]]]>

The Beijing Winter Olympics from February 4-20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic-related restrictions limit travel and other activities.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“Through the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macroeconomic policy adjustments, the major economic and social development goals for this year are expected to be achieved. “, did he declare. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

(Copyright 2021 by The Associated Press. All rights reserved.)

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China’s economy slows as virus outbreaks disrupt recovery https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-3/ Wed, 15 Dec 2021 08:00:00 +0000 https://bizchina-update.com/chinas-economy-slows-as-virus-outbreaks-disrupt-recovery-3/ BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions. Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate […]]]>

BEIJING (AP) — China said Wednesday its economy slowed in November, rocked by coronavirus outbreaks, weak demand and supply chain disruptions.

Retail sales were weaker than in October and inflationary pressures are complicating efforts to spur growth at a time when developers’ tightening borrowing limits are dampening construction and sales in the all-important real estate sector. .

The Beijing Winter Olympics from February 4 to 20 are likely to have “limited overall impact”, National Bureau of Statistics spokesman Fu Linghui told reporters, as pandemic restrictions limit travel and other activites.

Fu said the global environment was becoming “more complex and severe”, but China still expects to meet its economic targets for this year.

The new coronavirus was first reported in China and the ruling Communist Party has defended its success in containing the pandemic. Sporadic outbreaks and the emergence of new variants of the virus remain a constant challenge for both public health policies and the country’s economic recovery.

Concerns have been raised about the economic price paid to keep the virus under control through repeated lockdowns and other strict measures, including limits on international travel.

The economy grew at a surprisingly slow annual rate of 4.9% in July-September, compared to 7.9% in April-June.

In November, retail sales increased by 3.9% over the previous year, against 4.% the previous month. Industrial production picked up only slightly, rising 3.8% last month from 3.5% in October.

Leaders promised tax cuts and support for entrepreneurs after the campaign to curb rising corporate debt sparked bankruptcies and defaults among property developers.

Investors are waiting to see what happens to Evergrande Group, according to a developer analyst, which looks increasingly likely to default on $310 billion in debt. Small developers defaulted on millions of dollars in debt or went bankrupt.

Meanwhile, a crackdown on what regulators say is improper behavior by Chinese tech giants, including Alibaba Group, the world’s biggest e-commerce platform, has prompted jittery investors to slash more than 1,000 billions of dollars the price of their shares abroad.

Fu seemed to dismiss these concerns.

“Through the coordination of pandemic prevention and control and economic and social development, as well as the effective implementation of macroeconomic policy adjustments, the major economic and social development goals for this year are expected to be achieved. “, did he declare. “There is still strong support for the economy to overcome the difficulties and remain stable next year.”

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