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☆ China Development Forum: Li Qiang rolls out the welcome wagon for foreign companies
▼ + stars: | 2023-03-28 | by ( Laura He | ) edition.cnn.com time to read: +4 min

“China’s economy has been deeply integrated into the global division of labor.”Li pledged that the country will align with international economic and trade rules, give equal treatment to foreign investment and facilitate trade and investment by removing government controls. Worries about foreign investmentConcerns about foreign capital leaving China have grown. To boost business confidence, China’s new economic leadership is trying to reassure foreign business and the domestic private sector. “You are not foreigners, but family,” Wang Wentao, the commerce minister, told attendees at the China Development Forum. In a meeting with Cook on Monday, he said China is willing to “provide a good environment and services” for foreign enterprises including Apple.

☆ China says it ‘firmly opposes’ a potential forced sale of TikTok
▼ + stars: | 2023-03-24 | by ( Laura He | ) edition.cnn.com time to read: +2 min

China’s commerce ministry said Thursday that a forced sale of TikTok would “seriously damage” global investors’ confidence in the United States. “If the news [about a forced sale] is true, China will firmly oppose it,” Shu Jueting, a spokeswoman for the ministry, told a Thursday news conference in Beijing, adding that any potential deal would need approval from the Chinese government. “The sale or divestiture of TikTok involves technology export, and administrative licensing procedures must be performed in accordance with Chinese laws and regulations,” she said. “The Chinese government will make a decision in accordance with the law.”Previously, Beijing didn’t weigh in directly on a potential forced sale. Chinese regulators first added algorithms to the restricted list of technologies in August 2020, when the Trump administration threatened to ban TikTok unless it was sold.

☆ Most Asian shares reverse early losses after US Fed raises rates by a quarter point
▼ + stars: | 2023-03-23 | by ( Juliana Liu | ) edition.cnn.com time to read: +1 min

Hong Kong CNN —Most Asia Pacific shares pared early losses on Thursday, after the US Federal Reserve reaffirmed its dedication to bring down inflation. The broader Topix index was 0.3% lower, reversing some of its early morning losses. South Korea’s Kospi was 0.2% higher, while Australia’s S&P ASX 200 advanced by half a percentage point. Asian shares had opened broadly lower, tracking losses on Wall Street. The Fed raised rates by a quarter point at the conclusion of its two-day meeting, even though its historic rate hiking campaign was a contributing factor in the banking crisis.

☆ Evergrande Group announces long-awaited debt restructuring deal after 2021 collapse
▼ + stars: | 2023-03-23 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —China’s Evergrande Group, whose collapse in 2021 sparked China’s worst property market crisis on record, has unveiled a multi-billion dollar restructuring plan to make peace with its international creditors. The long-awaited plan could set an important precedence for investors dealing with the growing defaults and restructuring in China’s real estate industry. Evergrande has reached “binding agreements” with its international bondholders on the key terms of its restructuring plan, the company said late Wednesday in a 200-page filing. That means most of the company’s international creditors have agreed on the deal. Earlier this week, Evergrande said at a court hearing in the city that it would publish details of the restructuring plan on Wednesday.

☆ China may prefer TikTok to be banned than fall into US hands
▼ + stars: | 2023-03-22 | by ( Laura He | ) edition.cnn.com time to read: +7 min

TikTok’s algorithms, which keep users glued to the app, are believed to be key to its success. The intended sale of TikTok in 2020 to Oracle and Walmart hit a snag after Beijing added algorithms to its export control list. Under the plans, known as Project Texas, the US government and third-party companies such as Oracle would also have some degree of oversight of TikTok’s data practices. But that hasn’t reassured US officials, likely because no matter what TikTok does internally, China would still theoretically have leverage over TikTok’s Chinese owners. But, he believes Beijing would ultimately prefer for TikTok leave the US market rather than surrender its algorithm.

☆ Tencent, NetEase, Bilibili allowed to distribute foreign video games as China reopens market to global titles
▼ + stars: | 2023-03-21 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —China has approved 27 foreign video games, including titles to be released by Tencent, NetEase and Bilibili, as it gradually reopens the world’s largest mobile entertainment market to international titles. It was the second batch of foreign games to be allowed to enter the Chinese market since December. Bilibili (BILI) will publish the localized version of “Uma Musume: Pretty Derby,” a hugely popular franchise from Japan’s Cygames. “We believe this implies a more supportive regulatory policy towards foreign titles that further support a healthier and normalized development of online gaming industry going forward,” said Citi analysts on Tuesday. But foreign games were still unable to access the Chinese market until December, when the regulator finally approved 45 foreign titles, including “Pokémon Unite” by Nintendo and “Valorant” by Riot Games.

☆ Asian markets rebound after First Republic Bank gets rescued by US lenders
▼ + stars: | 2023-03-17 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Asian markets rebounded Friday after First Republic Bank was rescued by a group of major US lenders, which eased worries about the current banking turmoil. First Republic Bank (FRC) is set to receive a $30 billion lifeline from a group of America’s largest banks, including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (CBEAX), Citigroup (C) and Truist (TFC). “Following the recent global financial instabilities, First Republic Bank was expected to be the next domino to fall,” said Yeap Jun Rong, a market analyst at IG. Worries deepened on Wednesday after shares of Credit Suisse plummeted in Europe. Regulators on both sides of the Atlantic have taken emergency measures to shore up confidence, including protecting deposits at Silicon Valley Bank and Signature Bank and giving a $54 billion lifeline to Credit Suisse.

☆ China makes surprise rate cut to boost banking liquidity and the economy
▼ + stars: | 2023-03-17 | by ( Laura He | ) edition.cnn.com time to read: +2 min

The People’s Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for almost all banks by 0.25 percentage points, effective March 27. “[We must] make a good combination of macro policies, better serve the real economy, and maintain reasonable and sufficient liquidity in the banking system,” the PBOC said in a statement. The central bank had already injected hundreds of billions of yuan into the banking system since January, mainly through a medium-term lending facility, the analysts said. Regulators on both sides of the Atlantic have taken emergency measures since Sunday to provide liquidity support to troubled lenders and shore up the confidence in the banking system. But he also acknowledged that the RRR cut “remains an effective monetary policy tool” to provide long-term liquidity and support the economy.

A Credit Suisse Group AG office building is seen in Bern, Switzerland, on Wednesday. In October, social media chatter that the Swiss bank was on the brink of going bust sent shares on a wild ride. Credit Suisse has since embarked on a massive turnaround plan that will see it slash 9,000 full-time jobs by the end of 2025. It lost 7.3 billion Swiss francs ($7.9 billion) in 2022, compared to a loss of 8.2 billion Swiss francs ($8.9 billion) in 2008. Investors sent shares in the country’s second biggest lender crashing by as much as 30% Wednesday.

☆ China’s economic recovery is on track. But youth unemployment is getting worse
▼ + stars: | 2023-03-15 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —China’s economic recovery appears to be on track as it gradually emerges from three years of its strict zero-Covid policy. But rising youth unemployment underscores the tough challenges ahead for the new government to achieve its economic targets and maintain social stability. “The economic data released today confirmed the recovery in China was well on track,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management. Recent PMI figures had indicated a strong recovery in China’s economic activity, with February’s factory output from large, state-owned enterprises hitting the highest level in more than a decade. A large number of employment seekers line up outside a job fair in Nanning, Guangxi province on February 18, 2023.

☆ Asian bank stocks sink as Credit Suisse fear roils markets
▼ + stars: | 2023-03-15 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Banking stocks in Asia fell on Thursday, dragging the broader markets lower, as troubles at Credit Suisse sparked fears that banking turmoil is spreading around the world. The lender said it would borrow up to 50 billion Swiss Francs ($53.7 billion) from the Swiss National Bank. In Hong Kong, Standard Chartered (SCBFF) sank nearly 4%. Local bank BOC Hong Kong was down 3.1%. The bank failures had already forced US regulators to take emergency measures on Sunday to protect deposits at both lenders: Silicon Valley Bank and Signature Bank.

☆ Asian markets tumble as SVB fears rattle banking sector
▼ + stars: | 2023-03-14 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Investors are now on edge over whether the demise of SVB could spark a broader banking sector meltdown. On Monday, US stocks were mixed, with banking shares taking a hit. In Hong Kong, shares in Bank of China (Hong Kong) and Hang Seng Bank fell 3.7% and 1.3% respectively. Sumitomo Mitsui Financial Group and Mizuho Financial Group both dropped more than 7%. In Seoul, KB Financial Group and Shinhan Financial Group fell 3.6% and 2.5% respectively.

☆ Chinese companies and tycoons rush to calm investors after SVB collapse causes anxiety
▼ + stars: | 2023-03-13 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —The collapse of Silicon Valley Bank (SVB), which courted Chinese start-ups, has caused widespread concern in China, where a string of founders and companies rushed to appease investors by saying their exposure was insignificant or nonexistent. “As China’s first technology bank, SPD Silicon Valley Bank is committed to serving Chinese science and technology companies, and has always had sound operations in accordance with Chinese laws and regulations.”It’s unclear what will happen to SVB’s ownership of the joint venture. BeiGene, one of China’s largest cancer-focused drug companies, said Monday it had more than $175 million uninsured cash deposits at SVB, which represents approximately 3.9% of its cash, cash equivalents and short-term investments. Zai Lab, a pharmaceutical firm, announced that its cash deposits at SVB were “immaterial” at about $23 million. “We never opened an account with Silicon Valley Bank, nor placed a deposit,” he said late Sunday on his Weibo account.

☆ Li Qiang: China's new premier tries to reassure private sector amid widespread concerns about future
▼ + stars: | 2023-03-13 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN —China’s new premier has tried to reassure the private sector in his debut press conference, as concerns grew about the country’s future policy direction with the introduction of a new cabinet loyal to leader Xi Jinping. Li Qiang, a long-time aide to Xi, officially succeeded Li Keqiang as premier over the weekend. Li Qiang speaks during his first press conference as premier at the Great Hall of the People in Beijing on March 13, 2023. As a group of Xi’s close associates stepped into office, some Western-educated, reform-minded officials departed – including former Premier Li Keqiang and former Vice Premier Liu He. Analysts are worried that Xi’s preference for personal loyalty over technocratic competence signals a more ideology-driven policy direction that could further dent private sector growth and worsen Beijing’s ties with Washington.

☆ Andon Health: Chinese company says it has full access to SVB-parked funds
▼ + stars: | 2023-03-13 | by ( Laura He | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —China’s Andon Health, a maker of medical devices, says it has full access to funds parked at Silicon Valley Bank, after the US government intervened to backstop all the deposits at the failed lender. The Tianjin-based company, which manufactures consumer health devices and supplied Covid test kits to the United States during the pandemic, has cash deposits at SVB worth 5% of its total cash and cash equivalents. “Our deposits at Silicon Valley Bank can be used in full and have not suffered any losses,” the company said in a Tuesday filing to the Shenzhen Stock Exchange. Those measures include guaranteeing that customers of the bank will have access to all their money starting Monday. The SPD Silicon Valley Bank, which was owned 50-50 owned by SVB and local partner Shanghai Pudong Development Bank, said Saturday that its operations were “sound.”

Europe’s benchmark Stoxx Europe 600 index fell 1.5% in early trading, while London’s bank-heavy FTSE 100 (UKX) index slid 1.8%. Meanwhile, Japan’s Nikkei ended Friday down 1.7% as the country’s central bank decided to keep its ultra-low interest rates unchanged. Futures on the benchmark S&P 500 (DVS) index fell 0.43%, while futures on the tech-heavy Nasdaq Composite (COMP) dropped 0.2%. Wall Street wipeoutThe losses come after US bank stocks logged the largest falls in nearly three years on Thursday. The KBW Bank Index, which tracks 24 leading US banks, fell 7.7%, its biggest drop in almost three years.

Hong Kong CNN —Europe’s biggest producer of advanced chipmaking technology has joined the United States in its escalating standoff with China. Japan has also been involved in three-way discussions with the Netherlands and the United States, a source familiar with the talks told CNN. China said Thursday it “firmly opposes” the Netherlands’ upcoming curbs, which come just months after the United States restricted sales of some semiconductor machinery to Beijing. He accused Western countries led by the United States of trying to “contain” and “suppress” China. European battlegroundThe announcement of the Netherlands’ export restrictions, the details of which are expected to be confirmed before the summer, isn’t the first time the US-China tech rivalry spilled over into Europe.

☆ China's State Council shakeup aims to counter rising US tech restrictions and financial risks
▼ + stars: | 2023-03-08 | by ( Laura He | ) edition.cnn.com time to read: +6 min

“These proposed institutional changes reflect key focus areas of Chinese policymakers in the next few years, namely improving financial regulation coordination to enhance financial stability,” Goldman Sachs analysts said on Wednesday. Among the changes announced Tuesday during the annual gathering of the National People’s Congress, Beijing will set up a new powerful financial regulator: the National Financial Regulatory Administration (NFRA). VCG/Getty ImagesA super regulatorChina’s financial system has traditionally been jointly overseen by the People’s Bank of China, the CBIRC and the China Securities Regulatory Commission (CSRC). The new regulator is meant to “better manage risks” in the financial system and strengthen the supervision of “institutions, behaviors, and functions,” the government proposal said. The move comes as risks to the stability of China’s financial system are rising amid a housing market slump and economic slowdown.

☆ NPC 2023: Xi Jinping hits out at US as he urges China's private firms to 'fight' alongside Communist Party
▼ + stars: | 2023-03-07 | by ( Laura He | ) edition.cnn.com time to read: +5 min

“The private sector is an important force for our party to govern in the long term,” Xi said. Business confidence has plummeted following an unprecedented regulatory crackdown on the private sector and increasing uncertainties about China’s future path. Major contributorThe private sector, despite being dwarfed in size by the state sector, contributes more than 60% to China’s GDP and over 80% of employment, according to official statistics. It’s also necessary to protect the property rights of private companies and entrepreneurs and treat state firms and private companies equally, so as to “boost market expectations and confidence,” he said. “[We should] let private companies play an important role in stabilizing employment and increasing [government] income,” he said.

☆ China's Li Keqiang announces lowest GDP target in decades amid major economic leadership overhaul
▼ + stars: | 2023-03-06 | by ( Laura He | ) edition.cnn.com time to read: +6 min

Hong Kong CNN —China’s outgoing Premier Li Keqiang has announced the country’s lowest GDP growth target in decades, highlighting the domestic and global challenges the world’s second largest economy still faces despite its decision late last year to ditch draconian anti-Covid measures. It fell well short of the official growth target of “around 5.5%.”“Having declared the end of pandemic, the leaders are sticking to the slowing GDP growth path in the long term by lowering annual GDP target gradually,” said Ken Cheung, chief Asian foreign exchange strategist at Mizuho Bank. “Moreover, China has been downplaying the numeric GDP target and shifted to balance the quality since President Xi’s era,” he said. Premier Li also said the government would only raise fiscal spending by 5.6% this year, which is lower than the growth of 6.1% in fiscal spending in 2022. “After three years of pandemic [measures], it could be more than desirable for governments, especially the local governments, to restore fiscal resilience,” said Citi analysts.

Hong Kong CNN —China has set an official economic growth target of “around 5%” for 2023, as it seeks to revive the world’s second largest economy after a year of tepid growth because of pandemic measures. The new figure was released Sunday alongside the opening of the annual gathering of the National People’s Congress (NPC), the country’s rubber-stamp legislature, in a government work report. Chinese Premier Li Keqiang speaks during the opening session of China's National People's Congress (NPC) at the Great Hall of the People in Beijing, Sunday, March 5. Ng Han Guan/APMoody’s Investors Service has since raised its China growth forecast to 5% for both 2023 and 2024, up from 4% previously, citing a stronger than expected rebound in the short term. Global growth will likely slow from 3.4% in 2022 to 2.9% in 2023.

☆ One of China’s richest women takes over for her father at real estate developer Country Garden
▼ + stars: | 2023-03-02 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Yang Guoqiang, founder of Country Garden, attends a signing ceremony in November 2017 in Guangdong province. VCG/Getty ImagesThe elder Yang was a farmer and construction worker before he founded Country Garden in 1992. In little more than a decade, he grew the firm into one of the largest real estate developers in the country. Last year, Country Garden was China’s No 1 developer by sales, which reached $67 billion. An aerial view of a residential project developed by Country Garden in Zhenjiang city in eastern China's Jiangsu province in October 2021.

☆ China's factories just had their best month in 11 years
▼ + stars: | 2023-03-01 | by ( Laura He | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —China’s factory activity has expanded at the fastest pace in more than a decade, as the world’s second largest economy staged what economists are calling a “very rapid” rebound after reopening from zero-Covid. In January, the reading was 50.1, a sharp increase from the month before, as disruptions caused by the abrupt end of pandemic restrictions was starting to fade. The official non-manufacturing PMI for February, which includes the construction and services industries, recorded its best level in two years, figures from the NBS showed. Also Wednesday, the Caixin/Markit manufacturing PMI, a private gauge of the country’s factory activity, jumped to 51.6 in February from 49.2 in January. The latest data is “exceptionally strong,” confirming a “very rapid rebound” in China’s economic activity, Julian Evans-Pritchard, head of China economics at Capital Economics, wrote in a research note.

☆ Meet the 4 men tipped to run China’s economy
▼ + stars: | 2023-03-01 | by ( Laura He | ) edition.cnn.com time to read: +8 min

Hong Kong CNN —The team of Communist Party officials running China’s economy is about to get a major makeover. They include the four men tipped to manage the world’s second biggest economy: Li Qiang as premier, Ding Xuexiang as executive vice premier, He Lifeng as vice premier and Zhu Hexin as the new central bank chief. That puts the 63-year-old in line to succeed Premier Li Keqiang when he steps down during the upcoming congress. Li would be the first premier since the Mao era not to have previously worked at the State Council, China’s cabinet, as vice premier, analysts say. Stringer/ICHPL Imaginechina/AP/FileThe 68-year-old would succeed Vice Premier Liu He, who led China’s negotiations with the United States during trade talks in 2018 and 2019.

☆ Hong Kong's financial secretary expects real GDP growth of 3.5% to 5.5% in 2023
▼ + stars: | 2023-02-22 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Hong Kong’s Covid-hit economy will return to growth this year and expand by between 3.5% and 5.5%, as the city opens up and China’s economic outlook improves, Hong Kong’s financial secretary said on Wednesday. On Wednesday, Hong Kong’s financial secretary Paul Chan said the economy will stage a significant rebound this year, with real GDP growth hitting 3.5% to 5.5%. Previously, analysts had broadly raised their forecasts for Hong Kong’s economic growth to a range between 3% and 6.5%. Industries like tourism, trade, and real estate, are set to “ride the crest of Hong Kong’s reopening wave,” they said. Currently, trading in Hong Kong’s financial market can be suspended under extreme weather, such as a typhoon.

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