Global 

Singapore exports suffer biggest fall in three years as exposure to Chinese economy, US trade war bites

Concerns over Singapore’s exposure to the Chinese economy mounted on Monday after new data showed that its non-oil exports fell by 15.9 per cent in May, the largest decline for more than three years.Exports to China and Hong Kong slumped by 23.3 per cent and 24.8 per cent from a year earlier respectively, showing Singapore’s vulnerability to fluctuations in regional trade as an important trade and shipment hub for Asia-Pacific.Many of the goods bound for China from other nations pass through… Source link

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China’s rare earth stocks are investors’ new hedge against trade war as Beijing rolls out countermeasures against Trump

In a twist, traders have found a hot new bet in China’s stock market that has churned out jaw-dropping gains specifically because of deteriorating US-China relations: rare earths.While the benchmark gauge Shanghai Composite Index has remained in the doldrums over the past month amid the trade stand-off between Beijing and Washington, China Minmetals Rare Earth, China Northern Rare Earth (Group) High-Tech and other major producers of the elements have shot up at least 34 per cent, making them… Source link

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China 

Communist Party journal lays out China’s trade war stance ahead of possible Xi-Trump talks

The Communist Party’s top journal set out the leadership’s position on the trade war in a series of essays published on Sunday, suggesting a “win-win” deal to end the dispute was still possible but vowing to “struggle to the end” if necessary.Bimonthly journal Qiushi, or “Seeking Truth”, is required reading for all cadres and forms the basis for the rank and file of the party to understand the leadership’s position on key issues.In the essays, the journal sought to clarify the party’s position… Source link

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China 

As trade war bites, China should keep calm and remember Deng Xiaoping, former adviser says

China should remember the words of its late paramount leader Deng Xioaping and “cope with affairs calmly” to avoid any further escalation of its trade and technology war with the United States, a former government adviser has said.Speaking at a seminar at Tsinghua University in Beijing recently, Jia Kang, a former head of research at China’s finance ministry, said the country also needed to be realistic about its ability to prevail in the long-running dispute.“To be honest, China is still far… Source link

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Singapore investors snap up US$5 billion of China’s commercial properties, brushing aside trade war concerns

Singapore’s investors made a strong comeback to China’s property market, becoming the biggest group of asset buyers in the country even as a trade war rages on with the United States, and threatens to spill over into an assault on Chinese technology.Real estate investments by institutions and individuals from the Southeast Asian city state rose to 34.65 billion yuan (US$5 billion) last year, or 42 per cent of total spending by global capital in China, according to data by real estate agency… Source link

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Amid the trade war, Asia cannot count on Chinese stimulus to boost growth this time around

The resurgence of US-China trade tensions is weighing on equity market performance in emerging Asia. This begs the question of whether prospective monetary and fiscal stimulus measures from China could give the region the needed boost – but markets would be wrong to pin their hopes on this.Recent data flow paints a weak picture of the economic fundamentals in the region. In China, the official manufacturing purchasing managers index, which gauges sentiment among factory operators, for May came… Source link

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China 

Trade war effects leave China less room to tighten property curbs, say analysts

China’s slowing economy and the ongoing trade war with the US mean it has less room to increase cooling measures in the property sector, one of the most important economic drivers, according to analysts.China’s real estate sector has been rife with rumours the government will further rein in the booming market with measures that may include denying certain developers access to the onshore bond market to curb their aggressive bidding for land being auctioned off.Property sales in May showed… Source link

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China 

China economy slump goes on in May, with industrial growth lowest in 17 years amid US trade war escalation

Shoppers and pedestrians walk past stores in the Sanlitun area of Beijing, China, on Saturday, Nov. 3, 2018. As exporters feel the heat of the trade war, China’s powerful domestic-consumption engine was supposed to provide some protection for investors in the nation’s stocks. That is not working out so well. A narrative that is captured traders’ attention in recent weeks has been a “consumption downgrade” in the world’s second-biggest economy. Photographer: Gilles Sabrie/Bloomberg Source link

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Global 

Trade war with US could spark global financial ‘chaos’, warns former China central bank governor

China’s former central bank governor has warned that the ongoing trade war could cause financial “chaos” to the global financial order should emerging markets who rely on exports try to claim a share of the new openings in the United States and China by opting for a series of currency devaluations.Zhou Xiaochuan believes that countries caught up in the trade war may have no choice but to devalue their currencies to gain trade advantages, or “competitive devaluations”.In late May, Zhou dismissed… Source link

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Rising uncertainty over trade war could weigh on bottom lines at Hong Kong’s banks, KPMG says

Rising interest rates helped boost Hong Kong banks as the city’s economy slowed last year, but heightened uncertainty from an escalating trade war between the United States and China could weigh on their performance in 2019, according to KPMG.Operating profit before impairments at the city’s licensed banks rose 15 per cent to HK$268 billion (US$34 billion) last year, from HK$234 billion in 2017, the accounting giant said. Total revenue at Hong Kong’s lenders increased 11.2 per cent to HK$445… Source link

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