China 

China’s restaurant industry is booming as young professionals stay hungry amid trade war, slowing economy

Chinese consumers are not allowing trade war uncertainty or a slowing economy to affect their appetite.The country’s food and drinks sector is booming and will become a trillion-dollar industry in the next few years if it continues on its current trajectory. It could soon displace the US as the biggest catering market on the planet.The growth engine is the increasing numbers of young professionals heading out for a late dinner or ordering home delivery after a long day at the office, according… Source link

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Smaller banks may struggle to weather China’s slowing economy, S&P warns

Tightening financial regulations and a slowing economy as a trade war continues to rage with the United States may force some of China’s smaller banks, including lower-tier city and rural commercial lenders, to merge with larger players or exit the market, S&P Global Ratings said.In a research note on Tuesday, the credit ratings agency warned that some small and mid-sized banks are less equipped to deal with a “slowing and rebalancing economy” and a changing regulatory landscape. Troubled banks… Source link

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Volvo’s electric car brand Polestar joins a crowded market amid slowing sales in China

Polestar, Volvo Cars’ high-performance electric vehicle brand, will stick to its production plan in China as it joins the fray against global rivals in a slowing market.Thomas Ingenlath, chief executive of Polestar, told the South China Morning Post that the company was unfazed by the recent downturn in the mainland, the world’s largest new-energy vehicle market, and will open its second plant in China next year.“This is the cycle,” he said. “Short-term ups and downs shouldn’t worry us… Source link

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How China’s onshore bond market can overcome the US trade war, a slumping yuan and slowing growth

A weak yuan, lingering trade tensions and slower growth might seem like the perfect storm for China. But the country’s US$13 trillion onshore bond market is well placed to overcome these challenges.The renminbi has recently fallen through the key seven-to-the-dollar level for the first time in a decade. Volatility will prevail in the short term but there are good reasons for the currency to regain ground further down the road.For one, China appears to be building up a trade surplus as exports… Source link

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China 

Why there’s no reason to be bearish about China’s slowing economy – just look at the big picture

China’s economic growth rate has been disappointing for those who had anticipated a strong upswing. However, many analysts and commentators have focused on China’s slowdown but ignored the enormous size of the economy and the various implications.Anyone who wants to understand the Chinese economy must first deconstruct their analysis into two distinctive components: structural and cyclical. Structurally, China’s natural rate of economic growth has been falling for years, as the size of the… Source link

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China lowers interest rate as part of market-oriented reform amid slowing economy

China lowered its lending reference rate through a new market-oriented pricing mechanism on Tuesday, providing a modest easing of monetary conditions to help support the world’s second largest economy.The new one-year loan prime rate (LPR), which is the average of the rates that 18 designated banks charge their biggest clients, was set at 4.25 per cent, according to the National Interbank Funding Centre, a unit of the People’s Bank of China.The new rate was lower than the previous LPR of 4.31… Source link

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Guangzhou-based Yuexiu Property warns of tougher times ahead after Beijing tightens screws on housing sector, slowing economy

Mainland developer Yuexiu Property posted a 63.2 per cent jump in first half core net profit, but warned that the outlook remains tough against the backdrop of a slowing Chinese economy and property cooling measures.“The government has been very clear that they want to steady the property sector and the price of land. Rising US-China trade tensions has also made the property market nervous,” Lin Zhaoyuan, chairman of the Guangzhou-based company, said at a news conference to announce the interim… Source link

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China’s slowing economy won’t push it into joining the global rate-cutting cycle. Here are three reasons why

A global easing cycle is on the way, and China is apparently a key reason behind the new global slowdown. There are many reasons to be bearish about China’s outlook, including the trade war, its debt pile and asset bubble concerns. However, it seems that few analysts believe China’s central bank will soon follow others in cutting its benchmark interest rates. So, why is there a big divergence between China’s monetary policy and the economic outlook?Some may argue that the People’s Bank of China… Source link

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China 

China’s July corporate bond defaults jump to a four-month high as funding dries up amid risk aversion in a slowing economy

Company bond defaults in China hit a four-month high in July as a slowing economy and risk aversion triggered by the unexpected seizure of Baoshang Bank marred refinancing prospects at weaker firms.Onshore corporate bond defaults reached at least 14.4 billion yuan (US$2.1 billion) from 14 notes in July, according to data compiled by Bloomberg, bringing the total year-to-date defaults to 70.9 billion yuan from 89 bonds.After two straight months of declines through May, bond delinquencies are… Source link

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China’s Politburo for the first time decides against relaxing property curbs to stimulate slowing economy

Chinese developers’ hopes that Beijing would ease property curbs to bolster a slowing economy were dashed as the country’s top decision-making body discussed ways to support domestic demand including boosting consumption and manufacturing investment.The Communist Party’s Politburo, which met on Tuesday to lay out economic policies for the second half, warned against “using property as a tool to stimulate the economy in the short-run”, the first such statement in history.“We should adhere to the… Source link

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