Money 

Congestion or consumption? Beijing ponders trade-off on car purchase incentives to boost Chinese economy

A debate over whether the Chinese government should extend financial incentives for car purchases to increase consumption and economic growth is heating up.It started as sales in the world’s largest automobile market fell for the tenth month in a row in March. This created problems for domestic and foreign carmakers and hindered Beijing’s efforts to create a “powerful home market” that would offset the impact of China’s trade war with the US and slowing demand for Chinese exports.As China’s… Source link

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Home 

Beijing takes control of rating agency Dagong, following last year’s licence suspension in China

Dagong Global Credit Rating, one of China’s oldest and biggest rating firms, has been taken over by the central government after its mainland licence was suspended last year from the bond market business for “chaotic” management problems and providing “fake” information.China Reform Holdings, a central government-owned enterprise, said in a statement on Thursday that it has acquired a controlling stake in Dagong and will put it under a strategic restructuring.“It’s not simply a nationalisation… Source link

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China 

Head of China’s biggest state firm in Hong Kong urges Beijing to deepen market reforms

The head of China’s largest and oldest state-owned company in Hong Kong has recommended that the government should let competitive forces play a bigger role in certain market-oriented industries.The government should continue to dominate industries monopolised by state entities, such as power distribution and transmission, whereas industries that are already populated by private enterprises or quasi-state companies should be allowed to compete.“Let the fittest survive,” said Fu Yuning, chairman… Source link

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China 

China presses on with interest in UK’s high speed rail project with high level meeting in Beijing

China is pressing ahead with its interest in the United Kingdom’s controversial HS2 project, the largest high speed rail project in Europe, despite growing concerns over its cost and economic benefits.Members of China’s government and biggest state-owned railway companies met with HS2 chief executive Mark Thurston in Beijing earlier this month, signalling China’s interest in the £55.7 billion (US$72.9 billion) project, which will be funded by British taxpayers. China is bidding for construction… Source link

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China 

China’s P2P lending market could be decimated this year amid Beijing crackdown

This photo taken on February 4, 2016 shows investors in Chinese online peer-to-peer lender Ezubao chanting slogans during a protest in Beijing. The protest came days after China announced that 21 people had been arrested on suspicion of defrauding around 900,000 people of more than 50 billion yuan, after Ezubao turned out to be a giant Ponzi scheme. Photo: Agence France-Presse Source link

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China 

US-China trade war ‘still within control’, Beijing says, as trade gap widens due to soaring Chinese exports

The US-China trade war is “still within control”, said a Chinese government spokesman, as the country’s trade surplus widened significantly in March.Exports soared while imports crashed, new data released on Friday showed, with analysts pointing to the seasonal distortions of the Lunar New Year holiday, as well as possible Chinese government intervention in the economy.“The China-US trade frictions have caused certain impacts to the operations of Chinese companies, but we think the overall… Source link

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China 

China issues record new loans on the first quarter of 2019 as Beijing battles slowing economy amid trade war

China’s efforts to battle its slowing economy amid the trade war with the United States gathered pace at the start of 2019 with banks issuing a record amount of new loans in the first quarter of the year.Banks issued 5.81 trillion yuan (US$865 billion) of new loans between January to March, beating last year’s previous high of 4.86 trillion yuan, the People’s Bank of China said on Friday.In March alone, banks issued 1.69 trillion yuan (US$251 billion) in loans, which was the second highest… Source link

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China 

US says talks with Beijing on ethanol tariff positive, but ‘it’s never over till it’s over with the Chinese’

The US government on Tuesday said talks with China about reducing Beijing’s tariff on US ethanol products were “positive”, but that discussions were not over.“There have been conversations with China on reducing that tariff on ethanol, which would be good for our domestic corn industry,” Agriculture Secretary Sonny Perdue said. “While things look positive, it’s never over till it’s over with the Chinese.”The United States and China have been embroiled in a tit-for-tat tariff battle since July,… Source link

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Property 

China’s banks defy Beijing by pumping loans into property, despite economic slowdown

Despite Beijing’s push for state-owned banks to lend more to private companies, half of new loans issued by China’s big six banks last year went to individual property buyers.Data retrieved through a South China Morning Post analysis of the banks’ reported annual results underscores the challenges faced by Beijing in guiding more money into the real economy, amid mounting worries about higher household debt and a new housing bubble.It also illustrates the problems facing China’s private sector… Source link

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Home 

Break up ‘unnatural and abnormal’ monopolies to sustain high growth, US-China business group head urges Beijing

China should break up the state monopolies which dominate nearly half of its economy to create a level playing field for both foreign firms and private Chinese companies, the president of the US-China Business Council says.The power of monopolies in China is “very unnatural and abnormal” compared with other countries, Craig Allen said in an interview with the South China Morning Post, adding that 43 to 45 per cent of China’s economy is closed to foreign investment and Chinese privately owned… Source link

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