DIRS.INFO The most relevant business & tech news

☆ China's disappointing rebound could bring in more stimulus, economists say
▼ + stars: | 2023-05-30 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

Photographer: Qilai Shen/Bloomberg via Getty Images Qilai Shen | Bloomberg | Getty ImagesChina's much-vaunted economic rebound after its emergence from strict zero-Covid lockdown measures has yet to fully materialize, prompting some economists to speculate that further fiscal stimulus or monetary policy easing could be coming down the pipeline. Data from China's Bureau of Statistics shows that 6 million of the 96 million 16 to 24-year-olds in the urban labor force are currently unemployed. watch nowIn a research note Monday, Capital Economics assessed that, despite losing some momentum, China's economic recovery was still progressing at the start of the second quarter, with scope for further service sector-led improvement. But we do not expect policy rate cut or major fiscal stimulus, barring a precipitous fall in exports in the coming months." Any consensus among economists as to the trajectory of fiscal and monetary policy seems to be unraveling in light of the tenuous recovery.

☆ China's skidding factory sector taps brakes on economic recovery
▼ + stars: | 2023-05-04 | by ( Ellen Zhang | Ryan Woo | ) www.reuters.com time to read: +3 min

BEIJING (Reuters) -China’s factory activity unexpectedly contracted in April as orders fell and poor domestic demand dragged on the sprawling manufacturing sector, a private survey showed on Thursday, imperilling the broader economic outlook for the second quarter. China Daily via REUTERSThe Caixin/S&P Global manufacturing purchasing managers’ index (PMI) fell to 49.5 in April from 50.0 in March. The latest PMIs may lower expectations for the economy in the second quarter, said Zhou Hao, economist at Guotai Junan International. “But to what extent the economic recovery momentum will weaken, the market is not sure,” Zhou said. “The manufacturing sector will be under pressure in the second quarter, and won’t get any relief at least until June.”

"I was previously considered wealthy in the area," said Liu, who also owns some commercial property in the northeastern city of Liaoyuan. In play now in China, where around 70% of household wealth is in property, this phenomenon is weighing on the post-pandemic recovery of household consumption, which Chinese policymakers have vowed to make a more prominent driver of economic growth. Capital Economics estimates net household wealth declined 4.3% overall last year, due to falling house and stock prices, the first decline since at least 2001. Indeed, deposits rose a further 9.9 trillion yuan in the first quarter of this year. ($1 = 6.8376 Chinese yuan renminbi)Additional reporting by Shuyan Wang; Editing by Marius Zaharia and Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

☆ China March services activity accelerates on new orders - Caixin PMI
▼ + stars: | 2023-04-06 | by ( ) www.reuters.com time to read: +2 min

BEIJING, April 6 (Reuters) - China's services activity in March revved up at the quickest pace in 2-1/2 years on robust new orders and job creation and a consumption-led post-COVID recovery, a private-sector survey showed on Thursday. The upbeat figure echoed an official PMI released last week, which shot to the highest level in more than a decade. Thanks to improvements in customer demand, the rate of new orders was the sharpest since November 2020, the Caixin survey showed. Notably, new export orders in the services sector grew at the fastest pace on record. Caixin/S&P's composite PMI, which includes both manufacturing and services activity, rose to 54.5 in March from 54.2 a month prior, marking the quickest expansion since June.

The People's Bank of China (PBOC) said it would cut the reserve requirement ratio (RRR) for all banks, except those that have implemented a 5% reserve ratio, by 25 basis points from March 27. "In the first two months of this year, China's main economic indicators showed a positive trend, but the overall recovery foundation is not yet solid." The central bank has yet to give an estimate of how much long-term liquidity will be released following the cut, which will allow banks to lend out more funds. The weighted average RRR for financial institutions stood at around 7.6% after the cut, the central bank said. China's economic activity picked up in the first two months of 2023 as consumption and infrastructure investment drove a recovery from COVID-19 disruptions.

Starbucks (SBUX.O) warned of a "cautious" recovery in its China sales. "Consumers have become more meticulous in their spending," its chief executive, Xu Lei, said in an earnings call on Thursday. "Now the Chinese tourists are either super rich or very poor," said the owner, who spoke on condition of anonymity. "This suggests that once the initial reopening rebound has happened, we shouldn't expect a further surge in consumer spending," he wrote in a note to clients. ($1 = 6.8780 Chinese yuan renminbi)Editing by Marius Zaharia and Bradley PerrettOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

☆ China's factory prices fall as manufacturing struggles to recover
▼ + stars: | 2023-02-10 | by ( Joe Cash | ) www.reuters.com time to read: +4 min

[1/2] Employees work at the production line of aluminium rolls at a factory in Zouping, Shandong province, China November 23, 2019. The drop in factory gate prices was unexpected because China's economic activity returned to growth in January. The official purchasing managers' index (PMI), which measures manufacturing activity, crossing the 50-point threshold for the first time since September. Falling input prices, including chemicals, as well as lower crude oil and domestic coal prices contributed to the greater-than-expected decline. Core inflation, which excludes food and energy prices ticked up to 1.2% last month from an annual gain of 0.7% in December.

☆ China's Jan factory activity contracts at slower pace - Caixin PMI
▼ + stars: | 2023-02-01 | by ( ) www.reuters.com time to read: +3 min

The data contrasted with a stronger-than-expected result from an official survey that on Tuesday showed manufacturing activity swinging back to growth. The official survey largely focuses on big and state-owned firms, whereas the Caixin survey centres on small firms and coastal regions, which includes many exporters. With global economic growth sluggish and customer demand cooling, a sub-index of new export orders indicated shrinkage for a sixth straight month in January, though less quickly than in December. The International Monetary Fund on Tuesday revised China's growth outlook sharply higher for 2023, to 5.2% from 4.4% previously, because of the end of zero-COVID. The policy and its lockdowns had slashed China's 2022 growth rate to 3.0%, a pace below the global average for the first time in more than 40 years.

☆ China's 'great migration' kicks-off under shadow of COVID
▼ + stars: | 2023-01-07 | by ( Casey Hall | ) www.reuters.com time to read: +6 min

BORDER REOPENINGSunday marks the reopening of China's border with Hong Kong and the end of China's requirement for inbound international travellers to quarantine. More than a dozen countries are now demanding COVID tests from Chinese travellers, as the World Health Organisation said China's official virus data underreported the true extent of its outbreak. In Shanghai, for example, the city government on Friday announced an end to free PCR tests for residents from Jan. 8. China has relied on nine domestically-developed COVID vaccines approved for use, including inactivated vaccines, but none have been adapted to target the highly-transmissible Omicron variant and its offshoots currently in circulation. China reported three new COVID deaths in the mainland for Friday, bringing its official virus death toll to 5,267, one of the lowest in the world.

☆ China's trade shrinks sharply as feeble demand, domestic COVID woes take toll
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: +4 min

"Of much greater consequence will be the downturn in global demand for Chinese goods due to the reversal in pandemic-era demand and the coming global recession." Inbound shipments were down sharply by 10.6% from a 0.7% drop in October, weaker than a forecast 6.0% decline. But analysts remain sceptical the steps could achieve quick results, as Beijing has not announced a full reopening from COVID containment yet. China's economy grew just 3% in the first three quarters of this year, well below the annual target of around 5.5%. "As global demand weakens in 2023, China will have to rely more on domestic demand," he said.

☆ Factbox: China's COVID-19 policy in flux
▼ + stars: | 2022-12-05 | by ( ) www.reuters.com time to read: +4 min

Here are questions and answers about a key turning point in President Xi Jinping's signature policy:IS CHINA ABANDONING ZERO-COVID? Changes varying by location have taken place even in cities such as southern Guangzhou and Beijing, the capital, despite recent record infections. Yet the current tally of 5,235 COVID-related deaths is a tiny fraction of China's population of 1.4 billion, and extremely low by global standards. Many, especially in big cities, frustrated by the inconvenience, uncertainty, economic toll and travel curbs accompanying zero-COVID, would welcome its end. Reporting by Beijing and Shanghai newsroom, Writing by Bernard Orr; Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ China's factory gate prices suffer first drop since Dec 2020 as COVID curbs take toll
▼ + stars: | 2022-11-09 | by ( Anant Chandak | Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

The consumer inflation also moderated from a 29-month high in September, and underlying price pressures remained much more modest with core inflation rising 0.6% in October, unchanged from September. "However, the worsening of global growth is denting external demand." Reuters Graphics Reuters GraphicsPOLICY CHALLENGEThe consumer price index climbed 2.1% from a year earlier, easing from a 29-month high of a 2.8% increase in September, mainly driven by falling food prices. Food prices rose 7.0% in annual terms, slowing from 8.8% rise in the previous month, with fresh vegetable prices off 8.1% from a 12.1% rise in September. However, Pork prices - a key driver of the CPI - rose 51.8% year-on-year in October, faster than 36% growth in September.

☆ China's factory gate prices drop for first time since Dec 2020 as COVID curbs take toll
▼ + stars: | 2022-11-09 | by ( Anant Chandak | Tetsushi Kajimoto | ) www.reuters.com time to read: +4 min

☆ Analysis: For China's COVID policy, change comes in small increments
▼ + stars: | 2022-11-06 | by ( Tony Munroe | ) www.reuters.com time to read: +6 min

Authorities are making changes such as more precisely targeting lockdowns, rolling out new vaccines and adding international flights. Daily infections, though extremely low by international standards, are hitting six-month highs, while officials repeatedly reaffirm the zero-COVID policy that President Xi Jinping argues saves lives. Still, Huang does not expect fundamental change in China's COVID policy anytime soon. "COVID is not scary, it is preventable and treatable," the city's health authority told residents. China recently began rolling out what is believed to be the world's first inhalable COVID vaccine, which could help in reducing vaccine hesitancy that is especially widespread among older Chinese.

☆ He Lifeng: China's expected new economic tsar has big shoes to fill
▼ + stars: | 2022-10-30 | by ( Kevin Yao | ) www.reuters.com time to read: +3 min

BEIJING, Oct 30 (Reuters) - He Lifeng, head of China's state planning agency, is likely to succeed the country's economic tsar Vice Premier Liu He in March, but may struggle to maintain his predecessor's policy clout. That paves the way for He's expected promotion as the 70-year-old Liu is due to step down in March. The departing Liu, Xi's top economic adviser and a childhood friend, holds an unusually powerful portfolio: it covers economic policy, the financial sector and trade ties with Washington, overshadowing the role of outgoing Premier Li Keqiang. Some analysts say part of the expanded role that Liu built up during his time as economic tsar could be taken over by other top officials. "If He Lifeng does indeed get the job, his portfolio will overlap with that of the new Premier, Li Qiang," Julian Evans-Pritchard at Capital Economics said in a note.

☆ Xi Jinping just became unassailable. Here’s why investors are running scared
▼ + stars: | 2022-10-26 | by ( Laura He | ) edition.cnn.com time to read: +8 min

Xi’s preference for personal loyalty over technocratic competence bodes ill for China’s already bleak economic outlook, analysts said. “In effect, Xi Jinping establishes an echo chamber around his own ideas,” she said. People watch the opening session of the 20th Chinese Communist Party Congress in Huaibei, in China's eastern Anhui province. Li Qiang, the party boss of Shanghai who presided over the city’s chaotic two-month lockdown, is now the second-highest ranking party official after Xi. The NDRC is China’s top economic planner, responsible for drafting the country’s economic plans and overseeing major state investment projects.

On a quarterly basis, GDP rose 3.9% versus a revised drop of 2.7% in April-June and an expected 3.5% rise. 1/9 Workers work at a construction site, following the coronavirus disease (COVID-19) outbreak, in Shanghai, China, October 14, 2022. A Reuters poll forecast China's growth to slow to 3.2% in 2022, far below the official target of around 5.5%, marking one of the worst performances in almost half a century. Retail sales grew 2.5%, missing forecasts for a 3.3% increase and easing from August's 5.4% pace, underlining still fragile domestic demand. "On the policy front, the overall policy will remain supportive," said Hao Zhou, chief economist at Guotai Junan International.

☆ China's Sept exports likely cooled further on weakening global demand: Reuters poll
▼ + stars: | 2022-10-13 | by ( Tetsushi Kajimoto | ) www.reuters.com time to read: +2 min

BEIJING, Oct 13 (Reuters) - China's export growth is expected to have slowed further in September as overseas demand weakens, adding to strains on the shaky economy amid COVID curbs and a property crisis, a Reuters poll showed on Thursday. Outbound shipments likely rose 4.1% from a year earlier after growing 7.1% in August, according to the median forecast of 30 economists in the poll. Surging inflation, higher interest rates and the months-long Ukraine war are increasingly weighing on the global economy, with China's protracted slowdown adding to the pressure. South Korea's export growth, a leading indicator for China's imports, hit the slowest pace in nearly two years in September. With the weakening yuan, China's trade surplus is likely to have widened to $81.0 billion from $79.39 billion in August, the poll showed.

☆ China's tech stocks are tumbling, but short sellers have a different sector in their sights
▼ + stars: | 2022-10-11 | by ( Ganesh Rao | ) www.cnbc.com time to read: +4 min

Chinese tech stocks continue to be beaten down , but short sellers appear to be targeting another sector known for its high valuations: real estate. ETFs tracking the MSCI China Real Estate index, such as CHIR , have declined by more than 35% this year. Short sellers of China's real estate sector already have profits on paper of $2.6 billion year-to-date, according to S3's data. But although short sellers have been taking profits throughout the year, they've also kept taking new short positions in stocks that haven't fallen by as much. As the downturn in the real-estate sector is predicted to last longer, "short sellers should continue to be active," according to S3 Analytics.

Search resuls for: "Julian Evans"

21 mentions found