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Chinese tech faces an innovation reality check as the economy cools and start-ups stumble

The slowing Chinese economy may be claiming some unexpected victims: without its robust engine, many tech start-ups relying on China’s fast growth for success are being cast out.Despite healthy capitalisation, investors are finding that some companies’ underlying technologies may not be as innovative as hoped. And even after a banner year for venture capital funding in 2018, some investors predict that as many as 90 per cent of Chinese tech start-ups are doomed to fail.“The market is going… Source link

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Europe’s self obsession nurtured its naivety about China for the wrong reasons. It’s time for a reality check

The Chinese President Xi Jinping’s Europe tour is attracting ess media attention than usual, squeezed as it is between the long-awaited release of the Mueller Report in the United States, and the ever more bewildering twists of Britain’s exit from the European Union.That does not detract from its importance, embracing meetings with Italian Prime Minister Guiseppe Conte, French President Emmanuel Macron, German Chancellor Angela Merkel, and the European Commission’s President Jean-Claude Juncker… Source link

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Property 

Qatar’s property market faces reality check ahead of World Cup amid oversupply, spat with Gulf neighbours

Qatar’s Doha Tower, a spiked cylinder that glows orange at night, won an award when finished in 2012 amid a Gulf-wide property boom, but today about half of its 46 floors are empty.The office tower, now a familiar part of the capital’s high-rise skyline, has run foul of what real estate brokers, bankers and analysts say is an oversupplied Qatar property market ahead of the 2022 World Cup that mirrors a real estate downturn in the wider Gulf region after a drop in oil prices.Qatar has the added… Source link

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China 

China steps up efforts to close failed zombie companies by 2020, but faces harsh economic reality

Plans to liquidate China’s thousands of “zombie” companies are underway in several of its provinces, according to state media, as the government moves towards an aggressive target of eliminating such firms by 2020. In December, the Chinese government set a goal of closing zombie state-owned enterprises by the end of 2020. On February 1, it was reported in Economic Information Daily, a newspaper owned by the Xinhua News Agency, that various arms of government, including the regional authorities and the State-owned Assets Supervision and Administration Commission (SASAC – the body…

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From reality show dating to rapping: How China’s cryptocurrency stars are coping with the prolonged bear market

There are many ways to measure the bursting of the cryptocurrency bubble last year: Bitcoin was down 80 per cent from its peak; over 900 digital tokens became worthless; the vaporised value of digital assets exceeded US$600 billion. Some metrics are more personal and show the pain felt by those on the ground who helped inflate the bubble. Over the past year Michael Zhang, a 26-year-old telecommunications engineer based in the eastern Chinese city of Hangzhou, put 40,000 yuan (US$5,964) into cryptocurrencies, only to see his investment shrink to one…

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China’s push for technology self-reliance faces reality check, says economist

Foreign companies in Asia are deeply embedded in China’s industry supply chains, making the self-reliance call from Chinese President Xi Jinping both difficult and costly, according to Shaun Roache, Asia-Pacific chief economist for S&P Global Ratings. The problem is that a large proportion of suppliers in China’s technology industry are foreign based, often with headquarters in Taiwan, South Korea, Japan, and the United States. Thus far, according to Roache, the push for self reliance has come up against the reality that the tech industry is heavily dependent on global component…

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Will the Year of the Pig rein in Chinese yuan bulls as the seasonal boost ends and trade war reality kicks in?

As goes January, so goes the year? If that’s the case, Chinese yuan strength in the early weeks of this year should mean a strong performance versus the US dollar in 2019 as a whole. But such has been the pace of this yuan rise, investors might be disinclined to chase the move from current levels. Such a cautionary approach might well be justified.  Indeed, some likely drivers of the yuan’s early January rise may prove short-lived. Investors who are already “on the trade” will be mindful of managing their…

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China 

Wall Street’s dream of prying open China’s US$45 trillion market is inching toward reality

Chinese President Xi Jinping said in a speech last week that the country was “steadily widening the opening up” of its financial industry. For China watchers, steadily was the key word. Almost exactly a year after the country announced historic plans to ease local ownership rules and entry barriers to what’s now a US$45 trillion industry, the pace of change has been closer to a crawl than a sprint. While Xi signalled that China’s opening remains on track despite the country’s trade war with America, he also made it clear…

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