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☆ China issues new bonds to prop up economy as global investors flee at 'unprecedented' pace
▼ + stars: | 2023-10-25 | by ( Laura He | ) edition.cnn.com time to read: +7 min

Foreign fund outflows from China’s so-called A-share market have entered “an unprecedented stage,” Morgan Stanley strategists wrote in a recent note. A-shares are yuan-denominated shares of mainland China firms that trade on the Shanghai Stock Exchange and the Shenzhen Stock Exchange. This seems highly unlikely under Xi.”Even Chinese investors seem to be plagued by a growing lack of faith in the future of the country’s economy. It will hit the economy in an all-around and indiscriminate way,” the fund said in a letter to its investors, which went viral. “Xi might wield vast control in China, but he can’t compel global investors to buy into his vision or risk their capital,” he said.

Persons: ” Morgan Stanley, ”, Alex Capri, Xu jingbai, ICHPL, Brock Silvers, Beijing’s “, Apple’s iPhones, George Magnus, Joe Biden, Goldman Sachs, Derek Scissors, Xi, Craig Singleton, Xi Jinping, “ Organizations: Hong Kong CNN — Investors, Shanghai Stock Exchange, Shenzhen Stock Exchange, Connect, CSI, Foundation, National University of Singapore Business School, Chinese Communist Party, Kaiyuan, “, China’s Taiwan Affairs Office, China Centre of Oxford University, Global, People’s Bank of China, National People’s, Central Huijin Investment, American Enterprise Institute, Dingtai, Foundation for Defense of Democracies Locations: China, Hong Kong, Beijing, China’s, Shanghai, Shenzhen, Hai'an, China's Jiangsu, Capri, United States, ”

☆ Evergrande’s chairman has been detained. The company will struggle to survive
▼ + stars: | 2023-09-29 | by ( Laura He | ) edition.cnn.com time to read: +7 min

But that plan now looks to be in peril, after police detained its chairman as well as staff at a financing subsidiary. Previously China’s second biggest real estate company, Evergrande’s default in 2021 ignited a crisis in the property sector that continues to weigh on the wider economy. It said it needed to reassess the terms of the restructuring plan, in part because sales had been weaker than expected. “The debt restructuring can’t really happen if Evergrade can’t issue new debt or equity, and it doesn’t seem like it can,” Magnus said. As for Magnus, he believes Evergrande’s time as an independent company is over.

Persons: Evergrande, Xu Jiayin, Hui Ka Yan, ”, George Magnus, Bobby Yip, ” Magnus, “, Tyran Kam, Fitch, Kam, Yicai, What’s, Magnus, “ They’ll Organizations: Hong Kong CNN, Sunday, Oxford University’s China, SOAS University of London, Shenzhen government’s, CNN, Fitch Locations: China, Hong Kong, Beijing, Shenzhen, United States

☆ Analysis: China's Xi Jinping skipping G20 may be part of his plan to reshape global governance
▼ + stars: | 2023-09-08 | by ( Nectar Gan | ) edition.cnn.com time to read: +8 min

Since its first leaders’ summit in 2008, China’s top leader has always attended the gathering – including by video link during the Covid pandemic. Now, “China sees the G20 space as increasingly oriented toward the US and its agenda, which Xi Jinping regards as hostile to China,” Werner said. Alternative governance structureXi last attended the G20 summit in Bali, Indonesia, in November last year, when he emerged from China’s Covid isolation and declared his return to the world stage. All the while, Xi has only made two trips abroad this year – and both are central to his attempt to reshape the global world order. Next month, the Chinese leader is expected to host the Belt and Road Forum to mark the 10th anniversary of his global infrastructure and trade initiative – a key element in Beijing’s new global governance structure.

Persons: Jinping, Premier Li Qiang, Beijing’s reticence, Xi, ”, George Magnus, I’m, I’ve, Jake Werner, ” Werner, Biden, Werner, Happymon Jacob, China’s, Shi Yinhong, Joe Biden –, Antony Blinken, Vladimir Putin –, Magnus, they’re, ” Magnus, –, “ It’s Organizations: Hong Kong CNN, Premier, China Center, Oxford University, “, Quincy Institute in, Quincy Institute in Washington DC, Pacific NATO, ”, India, New, Jawaharlal Nehru University, Divisions, Renmin University, EU, Beijing, Global Security Initiative, Global Development Initiative, Civilization Initiative, Forum, Shanghai Cooperation Organization – Locations: Hong Kong, New Delhi, China, Xi’s, India, United States, Quincy Institute in Washington, Beijing, New, Washington, Pacific, Ukraine, Moscow, Bali , Indonesia, Germany, France, Brazil, Indonesia, Johannesburg, South Africa, BRICS

☆ Torrid summer for Chinese economy but hope for rebound, says professor
▼ + stars: | 2023-09-05 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailTorrid summer for Chinese economy but hope for rebound, says professorGeorge Magnus, a research associate at the University of Oxford China Centre and SOAS China Institute, discusses the current economic climate in China, and explains why President Xi is so opposed to stimulating the economy.

Persons: George Magnus, Xi Organizations: University of Oxford China Centre, SOAS China Institute Locations: China

☆ China's auto workers bear the brunt of price war as fallout widens
▼ + stars: | 2023-09-05 | by ( ) www.reuters.com time to read: +9 min

Millions of auto workers and suppliers in China are feeling the heat as an electric vehicle price war forces carmakers to shave costs anywhere they can. State-run China Automotive News estimates there are over 100,000 auto suppliers in the country. Suppliers typically negotiate prices once a year, but many have been pressed to lower prices on a quarterly basis in 2023, two senior executives at auto suppliers said. And in June, a group of small suppliers wrote to state-owned Changan Automobile to push back against 10% price reductions. Three months later, he told Reuters that price cuts had been more aggressive in 2023 than in previous years.

Persons: Aly, Mike Chen, Chen, carmakers, Tesla, George Magnus, Elon Musk, Mike Chen's, Li Auto, Liu, Changan Automobile's, Chen Yudong, They've, Zhang Yan, Brenda Goh, Kripa Jayaram, Marius Zaharia, David Clarke Organizations: SAIC Volkswagen, REUTERS, Rights, Shanghai, SAIC, Volkswagen, VW, Oxford University's China, China Passenger Car Association, Tesla, GM, HK, Changan Automobile, Mitsubishi Motors, Toyota, Hyundai, China Automotive, Automobile, EV, Reuters, Thomson Locations: Shanghai, China, China's, Beijing, Shenzhen, Hefei, Chongqing, Chery's, Qingdao

“I don’t necessarily need a higher paid job or a better life,” she added. College graduates looking for jobs at a fair in central China's Hubei province on July 20. A growing trendOn Douban, about 4,000 members of a group called “full-time children’s work communication center” discuss topics related to their daily “working” lives. By contrast, today’s “professional” children spend time with parents and do housework in exchange for financial support. In addition to her family duties, she’s busy applying for government jobs and taking exams for graduate school.

Persons: Litsky Li, Li, ”, “, headwinds, Zhang Dandan, ” hashtag, somethings, today’s, ’, Fang Xu, Nancy Chen, she’s, Chen, hasn’t, It’s, George Magnus, Magnus Organizations: Hong Kong CNN, College, CNN, Peking University, University of California, China News Service, Harvard University, China Centre, Oxford University, SOAS University of London Locations: Hong Kong, Luoyang, China's Hubei, Beijing, ”, China, University of California Berkeley, Jiangxi, Wanshou, China's Jiangxi

But last week, Chinese state media slammed Goldman Sachs after the Wall Street firm recommended selling shares in local banks because of their exposure to risks in the domestic economy. Group of 20 central bankers and finance ministers are meeting this week in India, with this data adding to their worries about the state of the global economy. Some pessimists say the Chinese economy has peaked and a significant slowdown is coming. But, Mr. Pettis added, international investors need to look at China differently than they once did. “When China was growing at double-digit rates, even poor parts of the economy were growing,” he said.

Persons: ” George Magnus, DealBook, Xi, Goldman Sachs, Covid, Michael Pettis, Pettis, ”, “ Organizations: Oxford University’s China Center, UBS, West, Street, Peking University Locations: China, Beijing, India, Russia, Ukraine, Moscow, Kyiv

☆ Weaker China offers opportunities to US and allies
▼ + stars: | 2023-07-03 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

It is also a setback for his most important ally, Chinese President Xi Jinping. So the United States and its allies can’t let their guard down. In 2021 the United States chaotically pulled out of Afghanistan and its alliance of rich democracies was in disarray. It seemed only a matter of time before China would overtake the United States as the world’s largest economy. At some point, the Chinese president may conclude that the Russian president is such a loser that he should do just that.

Persons: Vladimir Putin hasn’t, Xi Jinping, can’t, United States chaotically, Xi’s, Putin, Yevgeny Prigozhin, Narendra Modi, Joe Biden, George Magnus, Antony Blinken, Biden can’t, Peter Thal Larsen, Thomas Shum Organizations: Reuters, PUTIN, Russia, U.S, Shanghai Stock, Reuters Graphics, Thomson Locations: Russian, China, Taiwan, United States, Afghanistan, Russia, Ukraine, Moscow, Pacific, India, America, U.S, Kyiv

☆ One in 5 young people in Chinese cities are out of work. Beijing wants them to work in the fields
▼ + stars: | 2023-04-30 | by ( Laura He | ) edition.cnn.com time to read: +7 min

Guangdong, the manufacturing powerhouse that abuts Hong Kong, said last month it will help college graduates and young entrepreneurs to find work in villages. Guangdong’s plan, which was widely panned on social media, coincided with the rate of urban unemployment among 16- to 24-year-olds surging to 19.6%, the second highest level on record. Kong Yiji, a famous literary figure from the early 20th century, has been one of the hottest memes on China’s social media since February. A tourist shop named 'Kong Yiji' in China's Zhejiang province. Other popular buzzwords have included “lying flat” and “letting it rot.”Authorities, uneasy about dissatisfaction expressed through memes, have banned the hashtag of Kong Yiji.

☆ Cash-strapped Chinese cities are cutting medical benefits for seniors
▼ + stars: | 2023-03-31 | by ( Laura He | ) edition.cnn.com time to read: +8 min

Censors removed hashtags for “Wuhan health insurance” from Weibo’s hot topics section after the demonstrations began in January. State media reported at the time that some other regions had already spent public money on mass testing. CFOTO/Future Publishing/Getty ImagesCovering the shortfallChina’s health insurance scheme is a key part of its limited social safety net. To protesters, however, it looked like local governments were dipping into their individual accounts to cover the shortfalls of the collective pool. “There has to be some resolution of the financial capacity of local governments to meet current, and prospective, age-related costs,” Magnus said.

☆ China's cities are running out of money to pay huge COVID lockdown bills, report says
▼ + stars: | 2022-12-02 | by ( Sinéad Baker | ) www.businessinsider.com time to read: +3 min

China's zero-COVID strategy is having a big financial impact on local governments, CNN reported. China's strict strategy involves mass testing and locking down major cities. And local governments have had to pay for much of this, CNN reported. As a result, some local governments have delayed or suspended payments to coronavirus test providers and some are now asking residents to pay for their own coronavirus tests, CNN reported. The zero-COVID strategy has harmed China's economy more widely, by restricting movement and tourism and locking down cities of millions of people, which has also at times meant shutting down factories and manufacturing sites.

☆ Debt woes and zero-Covid: China's cities are running out of cash to pay huge bills
▼ + stars: | 2022-12-02 | by ( Laura He | ) edition.cnn.com time to read: +9 min

They spent 11.8 trillion yuan ($1.65 trillion) more than they raised in revenue between January and October, borrowing heavily to do so, according to data from China’s Ministry of Finance. Andy Wong/AP‘Widest in history’For nearly three years, local governments have borne the brunt of enforcing pandemic controls. The weak fiscal position of local governments has been a drag on the country’s overall financial standing. Kevin Frayer/Getty ImagesLow income, high costsWhy are local governments in this parlous state? In May, Beijing told local governments that they had to bear the costs for regular Covid testing in their regions.

☆ Beijing focuses on security to draw attention from U.S. semiconductor sanctions, says researcher
▼ + stars: | 2022-10-17 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBeijing focuses on security to draw attention from U.S. semiconductor sanctions, says researcherGeorge Magnus, economist and research associate at Oxford University's China Centre, weighs in on Chinese President Xi Jinping's message for his country at the opening of Communist party congress.

☆ Xi Jinping has silver linings for rest of world
▼ + stars: | 2022-10-17 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

LONDON, Oct 17 (Reuters Breakingviews) - A third term for Xi Jinping would risk a cold war, or even a hot one. Until recently, most analysts agreed it was only a matter of time before China’s economy, which was three-quarters the size of America’s in dollar terms last year, became the world’s largest. Register now for FREE unlimited access to Reuters.com RegisterSTUCK IN SECONDBut China’s economy is running into all sorts of problems. But Beijing-based Dimitri De Boer, of the environmental organisation Client Earth, thinks that’s very unlikely because the target is binding and China’s president has positioned himself as an environmental champion. But Germany challenged Britain in World War I when its economy was still powering ahead, according to Allison.

☆ 1 in 5 of China's urban youth are unemployed. That's a huge headache for Xi Jinping
▼ + stars: | 2022-09-19 | by ( Laura He | Cnn Business | ) edition.cnn.com time to read: +9 min

The youth unemployment rate has repeatedly hit new highs this year , rising from 15.3% in March to a record 18.2% in April. In the past few months, mass layoffs have engulfed once booming Chinese industries ranging from private tutoring to real estate. Xi is seeking a historic third term when the Communist Party hold its congress next month. But youth unemployment will constitute a "major threat" to China's economic and political stability in the long run, he added. But the government seems unwilling to tackle the main reason behind China's economic slowdown this year — the zero Covid policy .

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