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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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China 

Communist Party journal lays out China’s trade war stance ahead of possible Xi-Trump talks

The Communist Party’s top journal set out the leadership’s position on the trade war in a series of essays published on Sunday, suggesting a “win-win” deal to end the dispute was still possible but vowing to “struggle to the end” if necessary.Bimonthly journal Qiushi, or “Seeking Truth”, is required reading for all cadres and forms the basis for the rank and file of the party to understand the leadership’s position on key issues.In the essays, the journal sought to clarify the party’s position… Source link

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China 

Central bank’s ‘tremendous room’ to adjust policy may be put to test as China’s economy slows

The boast by People’s Bank of China governor Yi Gang this month that he has “tremendous room” to adjust policy could soon be tested as the economy slows, throwing attention on the impact on the nation’s fragile currency and financial markets.Compared to European and Japanese peers, China does have more obvious policy space. Its benchmark one-year lending rate has stayed at 4.35 per cent since 2015, far above zero. The Federal Reserve’s dovish turn also eases the depreciation pressures on the… Source link

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Singapore investors snap up US$5 billion of China’s commercial properties, brushing aside trade war concerns

Singapore’s investors made a strong comeback to China’s property market, becoming the biggest group of asset buyers in the country even as a trade war rages on with the United States, and threatens to spill over into an assault on Chinese technology.Real estate investments by institutions and individuals from the Southeast Asian city state rose to 34.65 billion yuan (US$5 billion) last year, or 42 per cent of total spending by global capital in China, according to data by real estate agency… Source link

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Global 

Samsung’s last China smartphone factory closing, raising questions about China’s role in global value chains

In its heyday, Samsung’s complex in Huizhou in the northern part of the Pearl River Delta was the South Korean company’s largest Chinese factory, producing one in five smartphones sold in China in 2011. Now, the small shops and suppliers that surround the vast complex, the focal point for the community for 27 years, have fallen silent and a notice posted on the gate dated February 28 tells passers-by that recruitment has been suspended.“Actually, since February after the Chinese Lunar New Year,… Source link

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China 

Indonesia benefiting as China’s shoemakers shift production as US trade war worsens, central bank official says

Indonesian exports are gaining market share in the United States in some sectors as supply chains shift away from China’s manufacturing base to the Southeast Asian nation, even though the trade war has hurt more than benefited emerging economies, said Bank Indonesia deputy governor Dody Budi Waluyo.In particular, Indonesian footwear exports to the US are seeing “some progressive performance”, Waluyo said.In the first four months of 2019, Indonesia exported footwear worth US$559.91 million to… Source link

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China 

Chinese Vice-Premier Liu He says ‘external pressure’ can actually help China’s economy

Vice-Premier Liu He believes the “external pressure” now hitting China’s economy was inevitable and could actually boost the country’s innovation and development.Liu, the top economic aide to President Xi Jinping and chief negotiator in the trade talks with the United States, backed up comments last week from People’s Bank of China governor Yi Gang that Beijing has sufficient policy tools to address the risks and challenges to ensure that China’s long-term growth prospects remain sound.He did… Source link

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Ex-chemistry teacher Zhong Huijuan poised to become China’s third-richest woman after founding US$10.4 billion Hansoh Pharmaceutical Group

Zhong Huijuan quit her job teaching chemistry to teenagers and got into the drug business.The career switch has paid off handsomely.Her Hansoh Pharmaceutical Group, China’s largest maker of psychotropic drugs, is poised to go public on Friday in Hong Kong with a market value of US$10.4 billion. Zhong holds a 68 per cent stake, giving her a US$7.9 billion fortune, according to the Bloomberg Billionaires Index.Zhong, 58, is not even the richest person in the family. Her husband Sun Piaoyang, 60,… Source link

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Will stock picking managers help deliver US$85 billion to China’s A-share market?

As global indices compiler MSCI increases the weightage of Chinese A shares in its gauges, it remains to be seen if stock picking managers, who last month pulled record levels of capital out of China’s domestic stock market through the stock connects, will bolster their positions and increase there exposure.Investment banks have forecast that as much as 80 per cent of a potential US$70-$85 billion in net inflows into A shares this year, on the back of the increase in MSCI weightage, could come… Source link

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China 

China’s banks remain reluctant to lend amid US trade war uncertainty, new data shows

Chinese banks lending was slightly higher in May from a month earlier, but the value remained below expectations as the impact of the trade war played on lenders’ minds, leading to speculation that the economy may need another, bigger jolt in the arm.The value of new yuan-denominated loans dropped to 1.18 trillion yuan (US$170.54 billion) in May, lower than the market expectation of 1.3 trillion yuan and only slightly higher than April’s reading of 1.02 trillion yuan, according to data released… Source link

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