China 

What kind of stimulus do China’s half-idle car assemblies need to restart stalled sales in the world’s largest vehicle market?

Word got around last week – while the Auto Shanghai 2019 trade show was in full swing – that China’s economic planning agency was mulling an easier process for drivers to obtain licences in the world’s largest vehicle market.The speculation sent the share prices of carmakers soaring, on hopes that the liberalised procedure would spur drivers to become owners, help clear out showrooms and stem nine consecutive months of declining sales. At least three automotive stocks jumped by their 10 per… Source link

Read More
Home 

Stocks Blog: Traders watching appliances, autos for clues on stimulus speculation

Good day traders. We’ll be closely covering the mainland and Hong Kong stock markets for you today. We’ll also bring you insights from experts about where sectors and companies are headed. Check back in throughout the day for updates.  — Zhang Shidong in Shanghai and Deb Price in Hong Kong   Source link

Read More
China 

China economy off to strong start in 2019 as stimulus steps offset trade war impact

China’s economy is off to a robust start this year, defying fears of a sharp slowdown, with Beijing’s pro-growth efforts successfully offsetting the effects of the trade war with the United States.China’s gross domestic product (GDP) expanded 6.4 per cent in the first quarter compared a year earlier, the National Bureau of Statistics reported on Wednesday, beating analysts’ expectations of 6.3 per cent growth and remaining at the top end of Beijing’s target growth range of 6.0 to 6.5 per cent… Source link

Read More
Global 

China’s economy dug out by strong excavator and crane sales, as stimulus kicks in

Sales of excavation equipment in China are booming, suggesting that Beijing’s stimulus package is starting to filter into the economy.The country’s 25 leading excavator makers sold 44,278 units in March, the highest monthly sales on record, according to data from the China Construction Machinery Association (CCMA). This was a 15.7 per cent increase on March 2018 and followed 68.7 per cent growth in February.Excavator sales are widely viewed as a “barometer” of the country’s infrastructure… Source link

Read More
Home 

China’s Belt and Road may be the closest the world has to a stimulus plan that can kick some vigour back into the global economy

They seem to keep coming, these stock market mini-meltdowns, and flash crashes, or whatever you like to call them. The most recent was just over a week ago, when markets from Wall Street to Tokyo plunged briefly, eliciting headlines that a crash was at hand, followed by equally unthinking assurances that all is well. These “corrections” seem to be occurring more often, since the market slump at the end of last year. They are probably best seen as “blue screen” moments of the kind computers… Source link

Read More
Home 

China’s weak economic data is likely to prompt more stimulus measures and a softer tone towards the US

The latest data released by China’s National Bureau of Statistics confirms a weak start to the year for the country’s economy. The bureau combines data for January and February to screen out volatility caused by the Lunar New Year festival. The figures reaffirm the sluggishness seen in other indicators, such as the Purchasing Managers’ Index (PMI) and trade and domestic prices, suggesting economic headwinds remain strong.  In particular, growth in industrial production fell to its lowest since… Source link

Read More
Home 

Opinion | China’s stimulus plan will lift the economy, just not right away

Bus ushers pose for photos ahead of the opening session of the National People’s Congress meeting at the Great Hall of the People in Beijing, on March 4. The Chinese government will step up tax cuts and increase infrastructure spending to stabilise the sagging economy, Premier Li Keqiang said in his annual work report at the meeting. Photo: AP Source link

Read More
Home 

The 2 trillion yuan question: will China’s stimulus measures be enough to boost the economy?

How’s the Chinese economy doing? According to official data, it grew 6.6 per cent in 2018. Fourth-quarter GDP growth slowed, but not enough to indicate an economic slump. However, trade data seems to tell a different story from the GDP headline figures: imports of manufactured goods declined substantially in the second half of 2018, painting a more fragile picture of domestic demand. It’s worth bearing in mind that trade figures are more reliable as they can be cross-checked with trade… Source link

Read More
China 

China’s central bank just moved one step closer to flinging open the floodgates of stimulus

The creation of a bond swap facility has moved China one step closer to full on quantitative easing (QE), analysts have said. The People’s Bank of China (PBOC) unveiled its bill swap mechanism on Thursday evening, the latest in its efforts to counter the double-headed assault of a trade war with the United States and a broad-based economic slowdown at home. This will allow holders to swap commercial bank perpetual debt – that is, debt without a maturity date – for central bank bills to be used for borrowing collateral.…

Read More
Home 

Impact of China’s tax-cut stimulus is estimated at US$300 billion, or 1.2 per cent of output, according to JPMorgan’s economists

China’s government is turning increasingly to tax cuts as the first line of defence against a slowing economy, in a departure from the wasteful infrastructure binges of the past. Further evidence of the shift emerged Tuesday, as senior policy officials pledged that tax reductions on a “larger scale” are in the pipeline, amid worsening economic data. JPMorgan Chase economists estimate the total impact will be around 2 trillion yuan (US$300 billion), or 1.2 per cent of gross domestic product. Last May the government cut value added taxes for manufacturing, transportation,…

Read More