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China’s rare earth stocks are investors’ new hedge against trade war as Beijing rolls out countermeasures against Trump

In a twist, traders have found a hot new bet in China’s stock market that has churned out jaw-dropping gains specifically because of deteriorating US-China relations: rare earths.While the benchmark gauge Shanghai Composite Index has remained in the doldrums over the past month amid the trade stand-off between Beijing and Washington, China Minmetals Rare Earth, China Northern Rare Earth (Group) High-Tech and other major producers of the elements have shot up at least 34 per cent, making them… Source link

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Hong Kong extradition protests: ‘one country, two systems’ is good for business – and for Beijing

Demonstrations, tear gas and rubber bullets on the streets. You can see why the business community is in a flap. At first glance the events of the last week in Hong Kong look like a bad day in Belfast circa 1989. In response, American politicians are again muttering about how the Hong Kong government’s proposed extradition bill undermines the “one country, two systems” model on which the United States’ relations with Hong Kong are based. More and more are calling for a review of the… Source link

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China 

Trade war could cause global recession, Beijing official warns, as US investment growth in China sinks

May’s escalation in trade tensions led to a sharp drop off in the growth of American investment in China, according to data released on Thursday, which highlighted the chilling effect the trade war is having on investor confidence.The data release from the Chinese Ministry of Commerce (Mofcom) showed that US investment in China grew 7.5 per cent between January and May, year on year, a much slower pace than the 24.3 per cent recorded between January and April and also significantly lower than… Source link

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Beijing likely to loosen its grip on the housing market as exports cool, analysts say

Beijing may begin to unwind restrictions designed to keep property prices in check as it battles to prop up economic momentum amid the escalating trade war, according to experts.The property sector and related industries, which account for more than 25 per cent of China’s gross domestic product according to CLSA, could be used to help offset the deteriorating trade outlook. The policy approach may be winning hearts and minds in Beijing as data showed exports contracted 2.7 per cent in April… Source link

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Huawei trade ban to test China’s 5G roll-out as Beijing set to issue commercial licences

China’s Ministry of Industry and Information Technology (MIIT) said it will issue licences for commercial 5G mobile services “in the near future”, as the country attempts to move ahead in the global race to roll out ultra-fast, next-generation telecommunications networks that will help power the industrial internet, autonomous driving and smart cities.But a US blacklisting of Huawei Technologies, the global leader in 5G telecoms network equipment, raises concerns about the ability of China to… Source link

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China 

Beijing warns US farmers may lose China market for good, but plays down tariffs impact at home

US farmers cannot afford to lose the Chinese market, but farmers in China will be able to withstand the impact of American tariffs, according to a top agriculture official in Beijing.Han Jun, vice-minister of agriculture and rural affairs, said China’s retaliatory tariffs on American products – the latest of which took effect on Saturday – now covered “virtually all US agricultural product exports to China”, warning that US farmers could lose the Chinese market for good.“If the US doesn’t lift… Source link

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Escalating US-China trade war forcing foreign service firms at Beijing expo to walk tightrope

China’s population of 1.4 billion remains a compelling platform for entrepreneurs, but the escalating trade war tensions with the United States are creating additional pressures for foreign businesses operating within the world’s second largest economy, with some forced “to take sides”.China continues to promote itself as an advocate for globalisation and free trade in goods and services, despite US accusations that its unfair trade practises have hurt foreign businesses, but the trade war is… Source link

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Henderson Land marks Lee Shau-kee departure with record-breaking purchase of 3 billion yuan residential plot in Beijing

Hong Kong developer Henderson Land Development kicked off the post-Lee Shau-kee era with its first foray in Beijing’s residential market in 15 years, winning a 39,479 square metre plot in the Chinese capital’s Chaoyang district for 3 billion yuan (US$440 million) on Tuesday.It is a surprise win for Henderson Land – it outbid 11 mainland Chinese companies, including Ping’an, Country Garden and Longfor, having been absent from Beijing’s land market for more than a decade. The last project it won… Source link

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Chinese car stocks accelerate as new tax rules trigger speculation of more support from Beijing

Shares in Chinese car makers surged in late trading on Friday on hopes that Beijing will eventually roll out more supportive policies to bolster the battered industry.The government released specific rules on Friday regarding the implementation of a new vehicle purchase tax, which was approved in December and will come into effect in July. The legislation set the tax rate at 10 per cent, instead of the rumoured 5 per cent the industry had hoped for.Analysts and investors said that even though… Source link

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Global 

Could China dump its US Treasuries to fight the trade war? A contrarian view is emerging in Beijing

As American pundits and polls dismiss the idea that China would dump its massive holdings of US Treasury debt as retaliation against US tariffs, a contrarian view is emerging in Beijing that the government may use the securities as a “weapon of last resort”. China’s US$1.12 trillion holdings account for just 5 per cent of total US national debt, which may mean any material damage on the US economy stemming from a bond sales would be limited. In addition, even if it did cause market volatility,… Source link

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