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☆ North Korea's Kim blasts 'irresponsible' top officials for flood damage
▼ + stars: | 2023-08-22 | by ( Soo-Hyang Choi | ) www.reuters.com time to read: +2 min

[1/6] North Korean leader Kim Jong Un gives a field guidance in South Pyongan Province, North Korea, in this undated photo released by North Korea's Korean Central News Agency (KCNA) on August 21, 2023. KCNA via REUTERS Acquire Licensing RightsSEOUL, Aug 22 (Reuters) - North Korean leader Kim Jong Un has lashed out at top officials for their "irresponsible" response to flood damage, saying they had "spoiled" the national economy, state media reported on Tuesday. Such irresponsibility and lack of discipline from officials is "mainly attributable to the feeble work attitude and wrong viewpoint of the premier of the cabinet," Kim said. This week's visit is the latest in a series of inspections the North Korean leader has made of flood-hit farmlands amid mounting concerns over a food crisis in the reclusive country. Lim Eul-chul, a professor of North Korean studies at South Korea's Kyungnam University, said Kim's harsh criticism could herald a cabinet reshuffle.

Persons: Kim Jong Un, Kim Jong, Kim, KCNA, Kim Tok Hun, Kim Tok, Lim Eul, Lim, Soo, hyang Choi, Miral Organizations: North, Korean Central News Agency, KCNA, REUTERS Acquire, Rights, North Korean, Korea's Kyungnam University, Thomson Locations: South Pyongan Province, North Korea, Rights SEOUL

☆ China has U-turned on almost all major policies it put in place in the last 3 years — and it's not surprising, given the state of its economy
▼ + stars: | 2023-02-16 | by ( Huileng Tan | ) www.businessinsider.com time to read: +10 min

But the country reversed some major policies in response to the abysmal GDP growth. China's GDP grew by 3% in 2022 — the worst since the chaotic Cultural Revolution ended. Most recently, after three years of pandemic lockdowns and isolation, China abruptly reversed course and abolished its zero-COVID policy — leaving the world guessing why. China's GDP grew only 3.0% in 2022 — the worst in nearly half a century since the chaotic Cultural Revolution ended. China's GDP growth is vital because it is the world's second-largest economy after the US, so it's a driving force for global investment and trade.

☆ 'The worst is over': Tech investors are bullish on investing in China again
▼ + stars: | 2023-02-07 | by ( Sheila Chiang | ) www.cnbc.com time to read: +5 min

Liu Ranyang | China News Service | Getty ImagesTech investors say the worst is over as China reopens and exits its zero-Covid policy. The firm raised nearly $500 million for a new China tech fund set to close by early this year — more than earlier plans for $400 million. Tech companies see government supportInvestors are not worried of new challenges on the regulatory front. Gobi's Tang said, "I do think that they're going to do everything they can to try to spur the economic growth. "There's still a lot to catch up [in semiconductor tech] for China.

☆ China Jan services activity expands for first time in five months - Caixin PMI
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +3 min

The Caixin/S&P Global services purchasing managers' index (PMI) rose to 52.9 in January from 48.0 in December, above the 50-point mark which indicates expansion in activity, marking an end to a four-month contraction. The reading mirrored the results of a larger official services PMI published earlier this week, adding to evidence of a rebound in activity in the world's second-largest economy as disruptions from reopening fade. "Improving expectations, restoring confidence, increasing income, expanding consumption, and stimulating domestic demand will be among the priorities," Wang said. Caixin/S&P's composite PMI, which includes both manufacturing and services activity, rose to 51.1 in January from 48.3 the previous month, marking the first expansion in five months. The Caixin PMI is compiled by S&P Global based on responses to questions sent to purchasing managers in China.

☆ Exclusive: China eyes help for shell-shocked consumers but big stimulus unlikely-sources
▼ + stars: | 2023-02-03 | by ( Kevin Yao | ) www.reuters.com time to read: +6 min

That has raised expectations that hefty household stimulus measures could be announced at a parliament meeting in March. Prominent academics have felt emboldened to speak publicly about sizeable demand-side measures such as 1 trillion yuan ($148.28 billion) or more in consumption vouchers. Some analysts say pent-up demand during the pandemic may be enough for consumption to grow with little policy support. Household savings jumped 7.9 trillion yuan last year to 17.8 trillion yuan. Several Chinese cities have already offered about 5 billion yuan in consumption vouchers and subsidies in total since December.

☆ Europe’s ban on Russian diesel could send pump prices even higher
▼ + stars: | 2023-01-17 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

That has included a ban on all Russian seaborne crude oil imports, which came into force in December. Russia is the bloc’s biggest supplier, making up 29% of its total diesel imports last year, data from Rystad Energy shows. “On diesel we see the opposite, where imports have picked up — almost a final dash before the finish line,” he added. But importing diesel from suppliers further afield, including the United States and Saudi Arabia, will push up freight costs, feeding into higher consumer prices, he said. But León said that the impact of the ban won’t be felt immediately in Europe because of the large amount of diesel in its stocks.

☆ Alibaba, other China ADRs surge as Ant Group capital plan approval fuels hope for relaxing scrutiny
▼ + stars: | 2023-01-04 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

Alibaba has faced growth challenges amid regulatory tightening on China's domestic technology sector and a slowdown in the world's second-largest economy. Chinese tech stocks that trade in the U.S. jumped Wednesday morning after Chinese officials approved an expanded capital plan from Ant Group. U.S.-listed shares of Alibaba jumped more than 6% in premarket trading after the news, as did stock of JD.com . The moves come as investors are seeing signs of a more relaxed Chinese regulatory environment. Correction: Chinese tech stocks that trade in the U.S. jumped Wednesday morning.

Industrial profits fell 3.6% in January-November from a year earlier to 7.7 trillion yuan ($1.11 trillion), according to data released by the National Bureau of Statistics (NBS) on Tuesday. Industrial profits could fall further in December with many cities facing a surge in COVID infections, said Hao Zhou, chief economist at GTJAI. For January-November, profits at private-sector firms shrank 7.9%, a slight improvement from the 8.1% fall in the first 10 months. China's economic growth was just 3% in the first three quarters of this year and is expected to stay around that rate for the full year, one of its worst years in almost half a century. Industrial profit data covers large firms with annual revenues above 20 million yuan from their main operations.

☆ China Jan-Nov industrial profit data shows deepening slump
▼ + stars: | 2022-12-27 | by ( ) www.reuters.com time to read: +2 min

Industrial profits fell 3.6% in January-November from a year earlier to 7.7 trillion yuan ($1.11 trillion), according to data released by the National Bureau of Statistics (NBS) on Tuesday. Business confidence in China has fallen to its lowest level since January 2013, a survey showed last week, reflecting the impact of surging COVID cases on economic activity. At this year's closed-door Central Economic Work Conference, top leaders and policymakers pledged to step up policy adjustments to support the slowing economy. Industrial profit data covers large firms with annual revenues above 20 million yuan from their main operations. ($1 = 6.9601 Chinese yuan renminbi)Reporting by Joe Cash and Ellen Zhang; Editing by Edmund KlamannOur Standards: The Thomson Reuters Trust Principles.

HONG KONG, Dec 21 (Reuters Breakingviews) - China has become a headache for Western executives. The good news is that the dilemma need not require drastic action from U.S. and European chief executives, since local Chinese partners could solve the problem by relocating themselves. Foreign executives have had a hard time dealing with China’s zero-Covid policy, rising labour costs and U.S. tariffs. On the other hand, existing economic interests plus Beijing’s renewed push to attract foreign investment both argue for staying put. But if Chinese suppliers now start boosting foreign investment to keep hold of key customers, the government may have little choice but to give its blessing.

Now, as the country rapidly relaxes restrictions, millions of people have been told to keep going to work — even if they’re infected. For three years, its stringent approach has kept Covid cases and deaths relatively low in the country. Covid control workers walk by a closed shop near a community with residents under health monitoring for Covid on December 4 in Beijing. Top leaders at the Central Economic Work Conference, a key annual meeting that ended Friday, said in a statement that stabilizing economic growth was the top priority for 2023. Officials nationwide had worked frantically to contain Covid cases ahead of the highly sensitive twice-a-decade leadership reshuffle, which saw Chinese leader Xi Jinping emerge more powerful than ever into his third term.

☆ China holds benchmark lending rates for 4th consecutive month
▼ + stars: | 2022-12-20 | by ( ) www.reuters.com time to read: +2 min

SHANGHAI, Dec 20 (Reuters) - China kept benchmark lending interest rates unchanged for the fourth consecutive month on Tuesday, matching the forecasts of most market watchers who nevertheless expect further monetary easing to prop up a slowing economy. The one-year loan prime rate (LPR) was left at 3.65%, while the five-year LPR was held at 4.30%. Market watchers regard MLF announcements as guides to any LPR changes. Xing Zhaopeng, senior China strategist at ANZ, said with rates unchanged, household spending would continue without any increase in disposable income. Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages.

☆ China steps up support for private sector to boost Covid-hit economy
▼ + stars: | 2022-12-19 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Hong Kong CNN —Beijing has vowed to go all out next year to save its Covid-hit economy by boosting consumption and loosening control over private industry, including the struggling tech and property sectors. Covid infections are surging in China after leaders unexpectedly eased its restrictive Covid policy earlier this month. Stabilizing economic growth is the top priority for 2023, according to an official readout following the conclusion of the Central Economic Work Conference (CEWC), a key annual meeting of top leaders, which ended Friday. “We need to encourage and support the private sector economy and private enterprise in terms of policy and public opinion,” the statement said. A shopping mall is decorated with rabbit stickers to welcome the Lunar New Year, the Year of the Rabbit, on December 10, 2022 in Beijing, China.

☆ China to maintain ample liquidity in 2023 to implement proactive fiscal policy - state media
▼ + stars: | 2022-12-17 | by ( ) www.reuters.com time to read: +1 min

SHANGHAI, Dec 17 (Reuters) - China will maintain reasonably ample liquidity in financial markets while better serving needs from the real economy next year, state media quoted a vice governor of the People's Bank of China (PBOC) as saying on Saturday. Monetary policy in 2023 will ensure sufficient amount of liquidity and the structure will be accurate to aid key sectors, PBOC Deputy Governor Liu Guoqiang said. "Funding cost will remain reasonably flexible, with little ups and downs," Liu was quoted by state broadcaster CCTV as saying. At the same forum, Vice Finance Minister Xu Hongcai said China will also implement a proactive fiscal policy next year, setting a reasonable deficit ratio and the size of local government special bonds. China will "appropriately expand the areas where special government bond funds can be invested and used as capital," CCTV reported Xu as saying.

☆ China Shows More Pragmatism—And Less Ideology—on Economy
▼ + stars: | 2022-12-16 | by ( James T. Areddy | Keith Zhai | ) www.wsj.com time to read: 1 min

Confronting a struggling economy, Chinese leader Xi Jinping is loosening policies that have sacrificed growth at the expense of his relentless focus on centralized control, political purity and national security. The latest sign: Senior leaders huddling in Beijing for the Communist Party’s Central Economic Work Conference on Friday endorsed a more pro-business approach, saying China would “encourage and support the development and growth of the private economy and private enterprises.”

[1/4] People wait in line at a coronavirus disease (COVID-19) test centre in Xinyang, China, this still image obtained from social media video released December 15, 2022. China reported 2,157 new symptomatic COVID-19 infections for Dec. 15 compared with 2,000 a day. There is particular concern about China's hinterland in the run up to China's Lunar New Year holiday starting on Jan. 22. The COVID scare in China also led people in Hong Kong, Macau and in some neighbourhoods in Australia to go in search for fever medicines and test kits for family and friends on the mainland. JP Morgan on Friday revised down its expectations for China's 2022 growth to 2.8%, which is well below China's official target of 5.5% and would mark one of China's worst performances in almost half a century.

It marked the slowest growth since May when Shanghai was under lockdown, partly due to disruptions in key manufacturing hubs Guangzhou and Zhengzhou. Retail sales fell 5.9% amid broad-based weakness in the services sector, also the biggest contraction since May. "The weak activity data suggest that the policy needs to be eased further to revive the growth momentum," said Hao Zhou, chief economist at GTJAI. "The increased size of the MLF rollover this morning is in line with the overall easing policy tones. That would hit businesses and consumers, while a weakening global economy hurts Chinese exports.

[1/2] People line up next to a medical worker in a protective suit, at a fever clinic of a hospital amid the coronavirus disease (COVID-19) outbreak in Beijing, China December 15, 2022. The pivot away from President Xi Jinping's signature "zero-COVID" policy followed unprecedented widespread protests against it. But, WHO emergencies director Mike Ryan said COVID-19 infections were exploding in China well before the government's decision to phase out its stringent regime. There are increasing signs of chaos during China's exit from the zero-COVID policy - with long queues outside fever clinics, runs on medicines, and panic buying across the country. China Meheco Group Co Ltd (600056.SS) said on Wednesday it signed a deal to import the U.S. drugmaker's treatment.

☆ China to optimise epidemic prevention and control next year -state media
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +2 min

BEIJING, Dec 7 (Reuters) - China should optimise epidemic prevention and control measures next year as it seeks to better coordinate epidemic policies with economic and social development, state media reported on Wednesday, after a high-level meeting of the Communist Party. The world's second-largest economy suffered a broad slowdown in October and the recent spike in COVID cases has deepened concerns about growth in the last quarter of 2022. "For next year, China will seek progress while maintaining stability," Xinhua cited the meeting as saying, adding that "it will hold the bottom-line of preventing systemic risks." China will continue to implement active fiscal policy and prudent monetary policy next year, it said. China's economy grew just 3% in the first three-quarters of this year, well below the annual target of around 5.5%.

☆ Analysis: China c.bank to offer limited, targeted growth support, no bazooka
▼ + stars: | 2022-12-01 | by ( Kevin Yao | ) www.reuters.com time to read: +5 min

Since 2020, when the world's second-largest economy was first jolted by the coronavirus, the PBOC has expanded its arsenal of structural policy tools, including relending and rediscount facilities and other low-cost loans. "The central bank is likely to expand the scope of structural policy tools and step up the use of such tools," said a person involved in policy discussions who spoke on condition of anonymity. Its outstanding loans made via structural tools amounted to nearly 5.6 trillion yuan ($781.64 billion) at the end of September, central bank data showed. A central bank adviser said last month that China should set a growth target no lower than 5% for next year. On Nov. 21, the central bank kept its benchmark lending rates unchanged for a third straight month.

"While we have been cautious, there is an important shift going on with the COVID reopening." The protests were the strongest public defiance during Xi's political career, China analysts said. If protests were to continue, this would add to the risk premium, said Sean Taylor, chief investment officer for Asia-Pacific at DWS Group. Social discontent stemming from the zero-COVID policy added to risks in executing and implementing government policies, said Mark Haefele, global wealth management CIO at UBS in Zurich. We also view China’s sluggish recovery as a risk for the global economy and markets."

"Protests are a concern in the short-term," Seema Shah, chief strategist at $500 billion asset manager Principal Global Investors told Reuters, adding that latest events supported the view that winds were changing. "While we have been cautious, there is an important shift going on with the COVID reopening." If protests were to continue, this would add to the risk premium, said Sean Taylor, chief investment officer for Asia-Pacific at DWS Group. "We believe this divergence in view will drive an outperformance in A shares over H shares," Tang said. We also view China’s sluggish recovery as a risk for the global economy and markets."

☆ Chinese stocks roar in a comeback, but here’s why big investors remain cautious
▼ + stars: | 2022-11-17 | by ( Seema Mody | ) www.cnbc.com time to read: +4 min

A stunning reversal in Chinese stocks in November has investors once again reassessing whether now is the time to double down on this once-hot market. "Biden's comments that he did not see an imminent threat to Taiwan from China were also noteworthy...," said Chang to CNBC. Investors CNBC spoke to remain encouraged by the country's much-needed reopening but want more evidence to suggest Beijing is easing its zero-Covid policy. The latest third-quarter 13F filings ending Sept. 30 also show several reputable hedge funds reducing their exposure to Chinese tech stocks. These positions may have changed since the end of September, but the data does suggest buy-side investors remain cautious on owning Chinese tech.

China's strategy aims to win over "swing" countries to score United Nations votes, the diplomat said on Tuesday. Washington said it had taken note of the congress and stressed the importance of keeping open lines of communication. Like many up-and-comers, he is a former subordinate from Xi's days as party chief of the eastern province of Zhejiang. Other pro-reform policymakers excluded from the party's new central committee were outgoing economic czar Liu He, 70, and central bank party chief Guo Shuqing, 66. Also among the newcomers is Ding Xuexiang, who was Xi's chief of staff and named to the new Standing Committee.

☆ Analysis: Xi's next premier faces tough task reviving Chinese economy
▼ + stars: | 2022-10-24 | by ( Kevin Yao | ) www.reuters.com time to read: +4 min

China's economic tsar, Liu He, a U.S.-trained economist who is seen as the brains behind earlier reforms, will be replaced by He Lifeng, another Xi acolyte. "We face the problem of weakening expectations and confidence and it's empty talk if we cannot revitalise the economy," Jia said. China's economic miracle started in 1978 when Deng Xiaoping kicked off historic reforms, allowing more private enterprises and opening the economy to foreign investment. The poll showed China's growth could pick up to 5.0% in 2023, helped by a lower base. Xi's Standing Committee choices disappointed investors who had been hoping he would keep some reform-minded officials, including former Guangdong party boss Wang Yang.

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