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China surprises with cuts to key rates to support weak economy
  + stars: | 2024-07-22 | by ( ) www.cnbc.com   time to read: +3 min
China surprised markets by lowering a key short-term policy rate and its benchmark lending rates on Monday, in efforts to boost growth in the world's second-largest economy. Minutes later, China cut benchmark lending rates by the same margin at the monthly fixing. Following the rate cuts, China's yuan dropped to a near two-week low of 7.2750 per dollar before paring some losses. He expects more rate reductions in China after the Fed enters its rate cut cycle. China's rate cuts are aimed at "strengthening counter-cyclical adjustments to better support the real economy," the PBOC said in a statement.
Persons: Larry Hu, Ju Wang, Zhang Zhiwei, Pan Gongsheng Organizations: People's Bank of, People's Bank of China, Macquarie, Greater China FX, BNP, Federal Reserve, Xinhua, Fed Locations: People's Bank of China, Beijing, China
Economist discusses China trade data
  + stars: | 2024-03-07 | 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 EmailEconomist discusses China trade dataPinpoint Asset Management's chief economist Zhang Zhiwei says it remains to be seen that stronger-than-expected-imports were the result of improving domestic demand in China.
Persons: Zhang Zhiwei Organizations: Economist Locations: China
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailChina's August economic data shows stabilization but not a 'huge rebound,' economist saysZhang Zhiwei, president and chief economist of Pinpoint Asset Management, says the numbers are consistent.
Persons: Zhang Zhiwei
ORLANDO, Florida, July 20 (Reuters) - Chinese stocks have traded at a discount to global peers for over a decade but have rarely been cheaper than they are now. The fact that U.S. equities are more expensive than Chinese stocks is nothing new. At minimum, investors will need clearer evidence of a turnaround in China's economic and market conditions before moving back into its equities in any great size. The era of double-digit annual GDP growth looks to be over, and challenges are multiple and mounting. Nominal annual GDP growth of 4.8% in the second quarter was lower than real GDP growth of 6.3%, a huge deflation red flag.
Persons: Goldman Sachs, China's, Zhang Zhiwei, Zhang Dandan, Jamie McGeever, Jamie Freed Organizations: Nasdaq, NYSE, Monetary Fund, Citi, Bank of America, Societe Generale, Peking University, Wall, Reuters, Thomson Locations: ORLANDO, Florida, China, United States, U.S, Beijing, India
Factory activity in China in June contracted for a third month, official data released June 30, 2023 show. Weak China economic data in April and May have fanned calls for economic stimulus for the world's second-largest economy. China's factory activity in June contracted for a third month, while non-manufacturing activity was at its weakest since Beijing abandoned its strict "zero Covid" policy late last year. A PMI reading above 50 points to an expansion in activity, while a reading below that level suggests a contraction. It is not clear if the weak economic data would push the government to launch aggressive stimulus measures soon," he added.
Persons: , Zhang Zhiwei Organizations: National Bureau of Statistics, PMI Locations: China, Beijing
However, further announcements are expected in coming weeks as China implements a reorganisation of its financial regulatory structure and other government bodies. "Opting for continuity in these critical economic roles suggests an emphasis on credibility and stability," said Mattie Bekink, China director at the Economist Intelligence Corporate Network. The U.S.-educated central bank chief Yi, appointed PBOC governor in 2018, had widely been expected to retire after being left off the ruling Communist Party's Central Committee during the party's once-in-five-years congress in October. "It shows China wants to at least have a dialogue with the United States on monetary policy and financial cooperation," he said. The parliamentary session will end on Monday, with Xi expected to give a speech and Li, the new premier, scheduled to hold a televised media conference afterwards.
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