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Uncertainty hangs over Foxconn’s newest China factory as trade war and economic slowdown take a toll

When ground was broken in March 2017 for a new US$9 billion factory owned by a subsidiary of Foxconn Group, the event was witnessed by then Guangdong party secretary Hu Chunhua and Terry Gou Tai-ming, the Taiwanese billionaire who created Foxconn, the world’s largest assembler of Apple’s iPhones and tablets.The plant was hailed by local media as an example of Chinese efficiency in promoting investments that matter for the future and the country’s key role in the global value chain.The Southern… Source link

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Money 

China changes the way bank loan rates are set, with HSBC left out of rate-setting club

China has changed its system for deciding bank lending rates so that the central bank can effectively influence and control interest rates, a significant move in the world’s second-biggest economy.The change – part of China’s long-standing pursuit of a market-based central banking structure – comes as the country’s economic growth is losing steam amid a protracted trade war with the United States and as Beijing seeks to cut financing costs for struggling small firms.Under the new system, a club… Source link

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China is the world leader in special economic zones but the results are erratic at best, with many being underused or failing to benefit the wider economy

Just a week ago, Beijing announced an ambitious expansion of its Shanghai Pilot Free Trade Zone in the Lingang New Area, underpinning “a new round of reform and opening up”. Since the first free economic zone launched in Taiwan in 1966 (quickly followed by Singapore in 1969 and South Korea in 1970), special economic zones have proliferated across the world – from 79 in 1975, to almost 5,400 last year, according to the United Nations Conference on Trade and Development (UNCTAD) in its latest… Source link

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China Resources Beer explores possibility of minority stake in the Asian unit of world’s largest brewer

China Resources Beer, maker of the world’s bestselling beer Snow, said on Friday it is exploring the possibility of acquiring a minority stake in Budweiser APAC, the Asian unit of Belgian-based Anheuser-Busch InBev.“We’re paying close attention to this issue and evaluating its business, but we have yet to decide whether we are interested and if [the acquisition] will fit into the expansion plans for China Resources Beer,” executive director and chief executive Hou Xiaohai said in response to a… Source link

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China reluctant to place large soybean orders despite Donald Trump’s US trade war demands

Concerns over an excessive reliance on the United States for supplies of soybeans, coupled with China’s now weaker position in the market when buying the often-controversial agricultural product, are two key factors underlying Beijing’s reluctance to place large orders, industry insiders said on Friday.Soybeans have become a focal point in the China-US trade war, and were again thrust into the spotlight earlier this month when US President Donald Trump threatened to impose tariffs on US$300… Source link

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Consumer stocks lift China and Hong Kong’s markets to close higher, reversing the declines during a tumultuous week

Consumer stocks lifted Chinese and Hong Kong indexes on Friday, as investors are betting that the Chinese government will dip into its coffers to provide financial stimulus to keep the economy growing.Hong Kong’s Hang Seng Index rose 0.9 per cent to close at 25,734.22 on Friday. The gauge fell 0.8 per cent during the week, the fourth week of declines, weighed down by lacklustre corporate earnings and the impact of escalating protests that earlier brought the city’s airport to a standstill for… Source link

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China 

China plans to allow foreign investment in VPN services as part of Beijing trial in latest opening up move

China’s effort to further up open up and attract foreign investment continued with the city of Beijing unveiling plans to allow overseas firms to invest in virtual private network services within a trial zone by the end of the year.Foreign investors will be allowed to invest in virtual private network (VPN) services, which allow users to bypass China’s Great Firewall to access services such as Google and Facebook which are currently blocked, although foreign ownership in such providers will be… Source link

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China 

Japan overtakes China as the biggest creditor to the US, as Japan’s June Treasuries holdings jump to a 30-month high

Japan surpassed China in June as the top holder of US Treasuries as the trade war between the world’s two largest economies intensified.Japan increased its holdings of US bonds, bills and notes by US$21.9 billion to US$1.12 trillion, the highest level in more than two and half years, according to data released by the Treasury Department on Thursday. Meanwhile, China’s ownership rose for the first time in four months to US$1.11 trillion, up by US$2.3 billion.The last time Japan held the position… Source link

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Ping An posts biggest jump in interim net profit since 2015, helped by a one-time tax benefit and a stock market rally in China

Ping An Insurance (Group), China’s largest insurer by value, posted the biggest jump in interim net profit since 2015, bolstered by a one-time tax benefit, a stock market rally and growth in its new business units.Net income soared 68 per cent to 97.7 billion yuan in the six months ended June 30, beating the 19 per cent increased expected in a Bloomberg survey of analysts. Revenue rose 17 per cent to 690.25 billion yuan (US$98 billion), while basic earnings per share rose 23.7 per cent to 4.12… Source link

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Ecommerce 

Alibaba posts 42 per cent gain in quarterly revenue, defying slowdown in China

Alibaba Group Holding beat estimates to report a 42 per cent revenue increase in the quarter ended June 30 amid signs of strain in China’s economy from the protracted trade war with the US. New York-listed Alibaba on Thursday posted better-than-expected revenue of 114.9 billion yuan (US$16.7 billion) in its fiscal first quarter, up from 80.9 billion yuan a year ago. Net income jumped 145 per cent to 21.3 billion yuan in the same quarter. “Alibaba had a great quarter, expanding our user base… Source link

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