China 

Global recession less likely thanks to loosening monetary policy, Credit Suisse CIO says

Fears that an escalating trade war between the United States and China may push the global economy into a recession in 2020 are rising, but that outcome is far from a certainty, according to Credit Suisse.Loosening monetary policy by central banks and the likelihood that the US Federal Reserve will cut rates this summer have “pushed back” the possibility of a severe economic downturn, said John Woods, Credit Suisse’s chief investment officer for Asia-Pacific.The bank does not expect a recession… Source link

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China’s virtual reality market set to expand, driven by increased policy support, 5G network roll-out

China’s virtual reality (VR) market is forecast to expand to 54.45 billion yuan (US$7.9 billion) by 2021, fuelled by increased policy support from Beijing, according to the industry regulator, as advanced 5G mobile networks are rolled out across the country.“The compound annual growth rate of the VR market is expected to reach 91.2 per cent,” said Wu Shengwu, deputy head for the electronic information division of the Ministry of Industry and Information Technology (MIIT), at a press conference… Source link

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Risks posed by trade war and Federal Reserve policy are graver than investors seem to realise

Have financial markets become too complacent? At first glance, it is difficult to argue that investors are not paying enough attention to the two most important issues facing markets: the US-China trade war and the conduct of American monetary policy.At the end of last year, US stock markets suffered their worst December since 1931 due to fears that the Federal Reserve was underestimating the deterioration in global growth and was hell-bent on tightening policy further. When the Fed began… Source link

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Property 

Housing policy easing, falling yuan to attract young Hongkongers to ‘Greater Bay Area’ cities of Zhuhai, Zhongshan and Guangzhou

More young Hongkongers looking to get on to the property ladder are expected to seek homes in the “Greater Bay Area” cities of Zhuhai, Zhongshan and Guangzhou, as a result of policy easing and a depreciating yuan, property agents have said.The agents said they have witnessed a twofold year-on-year increase in home sales in these cities, while enquiries from Hong Kong buyers looking to buy apartments in 70-year-lease projects have also gone up.“We are seeing more inquires from young Hongkongers… Source link

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Home 

Despite extradition protests, China’s economic stimulus and US monetary policy easing leave Hong Kong well placed

Markets always have to react. Attacks on oil tankers in the Middle East prompt a higher oil price. China unveils measures to boost automobile sales and the price of palladium is affected. But, while immediate market reactions are perfectly rational in the moment, those decisions may not stand the test of time. Take Hong Kong for example. Clearly, last week’s use of beanbag rounds, rubber bullets and tear gas in Admiralty was hardly going to elicit a positive reaction from investors, and the… 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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Vietnam 

Central bank unveils monetary policy for H2 2019 – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Customers make transaction at Bảo Việt Bank in Hà Nội’s Trần Hưng Đạo Street. — VNS Photo Trương Vị HÀ NỘI — The State Bank of Việt Nam (SBV) will continue to follow a pro-active, flexible and cautious monetary policy as well as working in close conjunction with fiscal and other policies to control inflation, sustain the macro-economy and support economic growth in the second half of this year. SBV Deputy Governor Nguyễn Thị Hồng made the statement at a conference to review the SBV’s monetary policy…

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Vietnam 

Policy key to boosting Việt Nam’s digital economy, say experts – Economy – Vietnam News | Politics, Business, Economy, Society, Life, Sports

  Digital economy is expected to make Việt Nam become more competitive. — Photo vietnamplus.vn HÀ NỘI — The Ministry of Industry and Trade (MoIT)’s key task is to evaluate the building and adjustment of policies to support the development of the digital economy, according to Deputy Minister Cao Quốc Hưng. Along with e-commerce, Hưng told Vietnamplus.vn that the digital economy is both a challenge and opportunity for Việt Nam to resolve major issues in economic development, including the issuance and revision of policies to make Việt Nam more competitive globally. According to a…

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Global 

China has ‘tremendous’ policy room if US trade war worsens, central bank governor says

China has “tremendous” room to adjust monetary policy if the trade war with the United States deepens, People’s Bank of China Governor Yi Gang said.“We have plenty of room in interest rates, we have plenty of room in required reserve ratio rate, and also for the fiscal, monetary policy toolkit, I think the room for adjustment is tremendous,” said Yi in Beijing.Asked if his scheduled bilateral meeting with US Treasury Secretary Steven Mnuchin on the sidelines of the Group of 20 gathering of… Source link

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Global 

India’s central bank cuts borrowing rate and changes monetary policy stance to ‘accommodative’

The Reserve Bank of India cut its policy interest rate by 25 basis points in a widely expected move on Thursday, while also changing its monetary policy stance to “accommodative” after the economy grew at its slowest in over four years.The six-member monetary policy committee (MPC) cut the repo rate to 5.75 per cent as predicted by 44 of 66 analysts polled by Reuters last week. The reverse repo rate was reduced to 5.50 per cent.All six of the MPC members voted for a 25 basis points cut, and for……

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