China 

China's January passenger car sales in biggest drop in seven as worries over economy, spending deepen

China’s passenger car sales fell 17.7 per cent last month from a year earlier to 2.02 million units, marking the lowest January sales since 2012.Data from the China Association of Automobile Manufacturers showed that there was a 15.8 per cent decline in total vehicle sales in China in January to 2.37 million units.It is the seventh straight monthly decline in the world’s largest car market, and adds to wider concerns over domestic consumption and economic growth.Global carmakers such as… Source link

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Singapore 

Crazy Rich Asians, Trump-Kim summit propel tourist arrivals, spending in Singapore to record highs, Singapore News

SINGAPORE – Singapore’s turn in the global spotlight helped propel tourist arrivals and spending to record highs for the third year in a row in 2018. Total arrivals rose 6.2 per cent to 18.5 million, while tourism receipts went up by 1 per cent to $27.1 billion, according to preliminary estimates released by the Singapore Tourism Board (STB) on Wednesday (Feb 13). Two events last year put the Republic on the global stage: the historic meeting between United States President Donald Trump and North Korean leader Kim Jong Un held…

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Ecommerce 

Why is JD.com spending US$400 million to buy this hotel in Beijing?

JD.com, China’s second largest e-commerce company, has closed a deal to buy the Jade Palace Hotel in Beijing for US$400 million, with the goal of transforming the five-star property into a new innovation and recruitment centre. The Nasdaq-listed company said on Monday that it acquired 100 per cent ownership of the hotel, which is located near the Chinese capital’s Zhongguancun technology hub. “The purchase of the hotel will serve JD.com’s long-term development,” a company spokesman said. “The hotel will be transformed into a space mainly for technology innovation and commercial…

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Home 

China’s Lunar New Year spending growth slows to decade low despite record US$148.96 billion sales

Sales growth in China during the seven-day Lunar New Year Holiday slowed to the lowest rate in a decade this month, questioning if the government can unleash the country’s domestic growth potential to counter the slowdown in the economy. National retail and catering revenue rose 8.5 per cent during the holiday to 1.005 trillion yuan (US$148.96 billion), the Ministry of Commerce said on Sunday. But even though the overall sales figure reached a record high, the growth rate fell from the 10.2 per cent witnessed last year to the lowest…

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Home 

Hong Kong companies are spending big on this ‘laisee’ envelope tradition that dates back to the 1960s

In an annual branding exercised intended to help boost corporate images, Hong Kong companies are spending big, forking out a collective HK$300 million (US$38.23 million) on printed gift envelopes for distribution to clients, in the expectation they will be shared this holiday week. These gift envelopes, known as laisee, are distributed during the first week of the Lunar New Year as a blessing. Whereas in the old days red paper was used to wrap coins as laisee, today’s lucky packets are part of a newer tradition where red envelopes are…

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Home 

Alphabet’s higher spending worries investors, sending shares lower

Alphabet Inc reported sharply higher fourth-quarter spending on video content, employees and facilities, worrying investors who sent the tech company’s shares down about 3 per cent after hours on Monday. Google’s parent company beat Wall Street’s estimates for revenue and profit, but the bigger-than-expected spending prompted investors to question whether cash funnelled into Alphabet’s newer businesses will generate the returns that its search engine unit historically has. “While the core business is still growing impressively, the significant spending shows growth isn’t quite as capital-light as had been hoped,” said George…

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Home 

Trade war or not, China’s pivot to the private sector and return to infrastructure spending are worth watching

While the US-China trade war has yet to be resolved, Beijing is pumping iron to make sure the domestic economy can achieve gross domestic product growth of around 6.5 per cent this year. Keep your eyes on the private sector and infrastructure investments. China’s private sector is being given a long-awaited shot in the arm. The authorities have asked banks to allocate half of their new loans to private businesses by 2021. This addresses Chinese businesspeople’s long-standing gripe that they are unable to get financing from mainstream banks, as state-controlled commercial…

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China 

Is China wise to bank on consumer spending to drive economic growth?

China has a grand plan to rebalance its economy by reducing its dependence on state-led investment and exports in favour of increased consumer spending. But after disappointing retail sales figures in recent months and a sharp rise in household debt, questions are being asked about the feasibility of Beijing’s ambitions. According to the National Bureau of Statistics, in the first 11 months of 2018, retail sales – a measure of consumer spending that also includes government purchases – rose 9.1 per cent year on year to 34.5 trillion yuan (US$5.09…

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Home 

How China can avoid 2 per cent growth nightmare: cut interest rates, expand money supply and ramp up deficit spending

China’s growth slowdown is reaching crisis point. How bad could it be? Very bad, judging by the weaker signals coming out of China right now. Its 2019 GDP growth rate could end up well outside the consensus range of expectations, which has been between 5 and 7 per cent. Negative forces are building and China could hit a brick wall very soon with economic expansion collapsing, sinking to as low as 2 per cent in the worst-case scenario. A hard landing on such a scale would be unprecedented, catastrophic and…

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China 

China to roll out new consumer spending incentives for cars and home appliances to offset trade war

China is planning to roll out a new set of incentives this year to encourage the country’s 1 billion consumers to buy more items like cars and home appliances as part of a wider effort to stabilise economic growth, a senior state planner said. The comments by Ning Jizhe, vice-chairman of the National Development and Reform Commission (NDRC), China’s top economic planning agency, followed the decision by the Central Economic Work Conference last month to expand domestic consumer spending this year to achieve “high-quality growth” and offset the impact if…

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