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☆ 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.”

☆ China factory activity unexpectedly shrinks in April
▼ + stars: | 2023-04-30 | by ( Ellen Zhang | Ryan Woo | ) www.reuters.com time to read: +3 min

BEIJING (Reuters) -China’s manufacturing activity unexpectedly shrank in April, official data showed on Sunday, raising pressure on policymakers seeking to boost an economy struggling for a post-COVID lift-off amid subdued global demand and persistent property weakness. That missed expectations of 51.4 tipped by economists in a Reuters poll and marked the first contraction since December, when the official manufacturing PMI was at 47.0. The world’s second-biggest economy grew faster than expected in the first quarter thanks to robust services consumption, but factory output has lagged amid weak global growth. The manufacturing sector, which employs about 18% of China’s workforce, remains under pressure due to slack global demand. The composite PMI, which includes manufacturing and non-manufacturing activity, dropped to 54.4 from 57.0.

☆ China factory activity unexpectedly cools in April
▼ + stars: | 2023-04-30 | by ( Ellen Zhang | Ryan Woo | ) www.reuters.com time to read: +3 min

☆ 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.

CNN —A Taiwan-based book publisher has been placed under investigation in China on suspicion of “endangering state security,” Beijing said Tuesday amid mounting concern over his disappearance. Li’s detention comes at a tense moment in cross-strait relations, and several Taiwan citizens have been detained in China on state security grounds in recent years. CNN has reached out to Taiwan’s Mainland Affairs Office to inquire about Li’s citizenship status. One of them, Lam Wing-kee, has said he was kidnapped by Chinese “special forces” after crossing the border into mainland China from Hong Kong. Hong Kong used to be a hub for publishing politically sensitive books that would be banned in mainland China.

☆ The Warren Buffett of China, whose company just posted a 95% dip in annual profits, is selling billions of dollars of assets — but he says it's 'only pathetic if no one wants what we offer'
▼ + stars: | 2023-04-25 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +2 min

The company posted a 95% year-on-year dip in annual 2022 profits. "It's not pathetic that we are selling assets," he said at an entrepreneur forum in March, per Bloomberg. Hong Kong stock exchange-listed Fosun International's shares have rebounded to 5.4 Hong Kong dollars, or $0.7, apiece on Tuesday, from a low of 4.6 Hong Kong dollars in September. They're still down from about 7.8 Hong Kong dollars in late January. Fosun International's market capitalization is around 44 billion Hong Kong dollars now.

The insurance company posted 84 cents in adjusted earnings per share and $1.11 billion in revenue. However, the company's $592.2 million quarterly revenue fell below the $593.9 million anticipated by Wall Street. Although the company's quarterly adjusted earnings and revenue topped analysts' expectations, investors may have been disappointed in its muted full-year outlook. Danaher's GAAP operating profit of $1.79 billion fell below analysts' estimates of $2.12 billion, according to FactSet. General Motors — Shares fell 3.3% after the automaker lowered its guidance for net income attributable to stockholders in 2023.

Hong Kong CNN —A Taiwan political activist has been formally arrested on suspicion of “secession” in China, more than eight months after he was detained amid heightened tensions across the Taiwan Strait. Taiwan’s Mainland Affairs Council said they had repeatedly reached out to mainland authorities about Yang’s detention but had not received a direct response. In 2019, he became the vice chairman of the Taiwan National Party, a fringe political party advocating Taiwan independence. Handcuffed and escortedCCTV said Yang had long advocated the idea of “Taiwan independence” and founded the Taiwan National Party to push for Taiwan to become an independent, sovereign country and a member state of the United Nations. However, Taiwan’s Mainland Affairs Council reminded Taiwan citizens to evaluate the risks before traveling to mainland China, citing the “repeated occurrence of similar cases recently,” without elaborating on the incidents.

☆ Global rice shortage is set to be the largest in 20 years – here's why
▼ + stars: | 2023-04-19 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +6 min

The global rice market is set to log its largest shortfall in two decades in 2023, according to Fitch Solutions. "At the global level, the most evident impact of the global rice deficit has been, and still is, decade-high rice prices," Fitch Solutions' commodities analyst Charles Hart said. That would mar the largest global rice deficit since 2003/2004, when the global rice markets generated a deficit of 18.6 million tonnes, said Hart. "The global rice production deficit situation will increase the cost of importing rice for major rice importers such as Indonesia, Philippines, Malaysia and African countries in 2023," said Tjakra. "It is our view that global rice production will stage a solid rebound in 2023/24, expecting total output to rise by 2.5% year on year," Fitch's report forecast, hinging on India being a "principal engine" of global rice output over the next five years.

☆ Alibaba's revamp puts renewed focus on Ant Group's suspended IPO
▼ + stars: | 2023-03-29 | by ( Jihye Lee | ) www.cnbc.com time to read: +1 min

"I truly believe [Alibaba is] aiming for a bigger target," said Kingston Securities Executive Director Dickie Wong. "In terms of the bigger picture, obviously would be Ant Group [being] re-introduced into the equity market," he told CNBC's "Street Signs Asia" on Wednesday. HANGZHOU, CHINA - OCTOBER 27: A logo of Ant Group is seen at the company's headquarters on October 27, 2020 in Hangzhou, Zhejiang Province of China. To be clear, there was no mention of Ant in Alibaba's announcement for its overhaul overnight. KraneShares' CIO Brendan Ahern said investors it's likely investors will be focusing Ant's IPO.

☆ SVB collapse will have limited impact on Asia, but one analyst says it could be a warning sign
▼ + stars: | 2023-03-13 | by ( Jihye Lee | ) www.cnbc.com time to read: +4 min

HANGZHOU, CHINA - MARCH 12, 2023 - Photo taken on March 12, 2023 shows the logo of SPD Silicon Valley Bank in Hangzhou, Zhejiang province, China. Future Publishing | Future Publishing | Getty ImagesAnalysts say the collapse of Silicon Valley Bank is not likely to have a major contagion effect in Asia, but one person says it could be seen as a "warning" — especially for economies that haven't hiked interest rates aggressively. It came after U.S. regulators announced measures to further stem systemic risks from Silicon Valley Bank's collapse. While a number of companies within Asia's venture capital and tech start-up sector do have exposure to Silicon Valley Bank, not many have openly admitted to seeing major losses from SVB's bankruptcy. SPD Silicon Valley Bank, a joint venture between Shanghai Pudong Bank and Silicon Valley Bank sought to reassure investors over the weekend and said its operations have been "independent and stable."

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.

China's four new vice premiers:Ding Xuexiang, 60, is the first-ranked vice premier who also sits in the ruling Communist Party's Politburo Standing Committee, China's top echelon of power. Wang Zhigang, 65, remains minister of science and technology. Huai Jinpeng, 60, remains minister of educationPan Yue, 62, remains head of the National Ethnic Affairs CommissionWang Xiaohong, 65, remains minister of public securityChen Yixin, 63, remains minister of state security. Considered a Xi ally, he had worked with Xi when the latter was party chief of Zhejiang province from 2002-2007. Tang Dengjie, 63, remains minister of civil affairsHe Rong, 60, remains minister of justiceWang Xiaoping, 59, remains minister of human resources and social securityWang Guanghua, 59, remains minister of natural resourcesHuang Runqiu, 59, remains minister of ecology and environmentNi Hong, 60, remains minister of housing and urban-rural developmentLi Xiaopeng, 63, remains minister of transportLi Guoying, 63, remains minister of water resourcesTang Renjian, 60, remains minister of agriculture and rural affairsHu Heping, 60, remains minister of culture and tourismMa Xiaowei, 63, remains head of the National Health CommissionPei Jinjia, 59, remains minister of veterans affairsWang Xiangxi, 60, remains minister of emergency managementHou Kai, 60, remains auditor-general of the National Audit OfficeReporting by Yew Lun Tian, Ziyi Tang, additional reporting by Albee Zhang; Editing by Raju GopalakrishnanOur Standards: The Thomson Reuters Trust Principles.

☆ China's Xi nominates Li Qiang to become premier
▼ + stars: | 2023-03-11 | by ( ) www.reuters.com time to read: +1 min

BEIJING, March 11 (Reuters) - Chinese President Xi Jinping on Saturday nominated Li Qiang, 63, to become premier during the ongoing annual meeting of China's rubber-stamp parliament, a role charged with managing the world's second-largest economy. Li, the former Communist Party chief of Shanghai, China's largest city, will replace Li Keqiang, who is retiring during the National People's Congress session that ends on Monday, after serving two five-year terms. Li Qiang is a close ally of Xi, serving as his chief of staff between 2004 and 2007, when Xi was provincial party secretary of eastern China's Zhejiang province. He was put on track for premier in October, when he was appointed to the number-two role on the Politburo Standing Committee during the once-in-five-years Communist Party Congress. Reporting by Laurie Chen and Tony Munroe; Editing by Sandra Maler and William MallardOur Standards: The Thomson Reuters Trust Principles.

☆ Li Qiang becomes China's premier, tasked with reviving economy
▼ + stars: | 2023-03-11 | by ( ) www.cnbc.com time to read: +5 min

Li Qiang, likely to become the next premier, is pictured here speaking at a major annual financial conference in Shanghai in 2020. Li Qiang, the former Communist Party chief of Shanghai, took office on Saturday as China's premier, the country's No.2 post, putting the close ally of President Xi Jinping in charge of reviving an economy battered by three years of COVID-19 curbs. Li Qiang is the first premier since the founding of the People's Republic never to have served previously in the central government, meaning he may face a steep learning curve in the initial months on the job, analysts said. Still, Li's close ties with Xi - Li was Xi's chief of staff between 2004 and 2007, when the latter was provincial party secretary of Zhejiang province - will empower him to get things done, leadership-watchers said. "My reading of the situation is that Li Qiang will have a lot more leeway and authority within the system," said Trey McArver, co-founder of consultancy Trivium China.

☆ As parliament meets, China keeps would-be protesters at bay
▼ + stars: | 2023-03-07 | by ( Engen Tham | ) www.reuters.com time to read: +4 min

[1/2] Demonstrators hold up signs during a protest over the freezing of deposits by some rural-based banks, outside a People's Bank of China building in Zhengzhou, Henan province, China July 10, 2022, in this screengrab from video obtained by Reuters. Text in foreground reads, "Henan Bank, return to us our legal deposits! The people's life-saving deposits!" China has a low tolerance for group displays of discontent, even if anger is not directed against the government. Some of those who spoke with Reuters declined to use their full names due to the sensitivity of the matter.

☆ 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.

☆ Baidu beats fourth-quarter revenue estimates, flags chatbot launch
▼ + stars: | 2023-02-22 | by ( ) www.reuters.com time to read: +3 min

Revenue for the quarter ended Dec. 31 came in at 33.08 billion yuan ($4.80 billion), inching past analysts' estimates of 32.01 billion yuan, according to Refinitiv data. Revenue from Baidu Core, which includes search-based ad sales, cloud offerings and its autonomous driving initiatives, fell 1% to 25.7 billion yuan. While non-online marketing revenue rose 11% to 7.6 billion yuan, driven by AI and cloud businesses, strict pandemic-related controls in China caused the company's online marketing revenue to drop 6% to 18.1 billion yuan in the reported quarter. A logo of Baidu is seen during the World Internet Conference (WIC) in Wuzhen, Zhejiang province, China, November 23, 2020. ($1 = 6.8963 Chinese yuan renminbi)Reporting by Yuvraj Malik in Bengaluru and Eduardo Baptista in Beijing; Editing by Devika Syamnath, Shounak Dasgupta and Tomasz JanowskiOur Standards: The Thomson Reuters Trust Principles.

☆ NBA and Ant Group launch a strategic partnership in China
▼ + stars: | 2023-02-21 | by ( ) www.cnbc.com time to read: 1 min

A logo of Ant Group is seen at the company's headquarters on October 9, 2020 in Hangzhou, Zhejiang Province of China. Chinese fintech giant Ant Group said on Tuesday it had entered a strategic partnership with the NBA league in China that would see the two cooperate in areas such as video content, program broadcasting and membership. Fans in China would have access to NBA video content on Alipay, the hugely popular payments app owned by Ant Group, the company said in a statement. The collaboration with the professional basketball league's Chinese business arm will also cover areas such as joint marketing campaigns and digital collectables, Ant Group said.

☆ Chinese provinces give 30 days' paid 'marriage leave' to boost birth rate
▼ + stars: | 2023-02-21 | by ( ) www.reuters.com time to read: +2 min

[1/3] A newly wed couple pose for pictures on Valentine's Day at a marriage registration office in Hangzhou, Zhejiang province, China February 14, 2023. China Daily via REUTERSHONG KONG, Feb 21 (Reuters) - Some Chinese provinces are giving young newlyweds 30 days of paid leave in the hope of encouraging marriage and boosting a flagging birth rate, the Communist Party mouthpiece People's Daily Health said on Tuesday. China's minimum paid marriage leave is three days, but provinces have been able to set their own more generous allowances since February. "Extending marriage leave is one of the effective ways of increasing the fertility rate," Yang Haiyang, dean of the Social Development Research Institute of Southwestern University of Finance and Economics, was quoted as saying. Yang said a host of other supporting policies were still needed, including housing subsidies and paid paternity leave for men.

☆ Analysis: Why China's reopening isn't inflationary
▼ + stars: | 2023-02-16 | by ( Rae Wee | ) www.reuters.com time to read: +6 min

However, economists see no challenge to global inflation, pointing instead to Chinese President Xi Jinping's new blueprint for self-sufficiency, broader prosperity and a socialist ideology as checks on big-ticket shopping. The slack in China's labour markets and Beijing's growth priorities will also take the edge off inflation, they say. "I don't think China's recovery or the reopening will cause any significant global inflation," said Chi Lo, senior market strategist for Asia Pacific at BNP Paribas Asset Management. BNP's portfolio managers are positioning for China's rebound to boost regional tourism, but not export price rises for manufactured goods. "I'm very much of the view that (China's reopening) will be positive for the world in terms of either not being too inflationary, but more widely having deflation in some key new goods and services," Westpac senior economist Elliot Clarke said.

☆ The property market is so bad in China that some banks are letting people be on mortgages till they are 80
▼ + stars: | 2023-02-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Some banks in China are now extending the upper age limit for mortgage borrowers to 80. Banks in cities like Beijing, Nanning, and Ningbo have raised the upper age cap. To attract more mortgage-seekers, some banks are starting to extend the upper age limit for homeowners servicing mortgages to 80 years old, according to various local media outlets. The upper age limit is typically 65 to 70 now, according to news outlet Sixth Tone. Banks have extended the upper age cap for mortgages in cities like Beijing and Nanning, the Beijing Youth Daily reported on February 14.

[1/2] A VLCC oil tanker is seen at a crude oil terminal in Ningbo Zhoushan port, Zhejiang province, China May 16, 2017. REUTERS/StringerBENGALURU, India, Feb 5 (Reuters) - Oil producers may have to reconsider their output policies following a demand recovery in China, the world's second-largest oil consumer, the International Energy Agency's Executive Director Fatih Birol said on Sunday. "We expect about half of the growth in global oil demand this year will come from China," Birol told Reuters on the sidelines of the India Energy Week conference. He added that China's jet fuel demand is exploding, putting upward pressure on demand. OPEC+ rolled over the group's current output policy at a meeting on Wednesday, leaving production cuts agreed last year in place.

☆ EV battery maker ONE raises $300 million, now valued at $1.2 billion
▼ + stars: | 2023-02-01 | by ( Paul Lienert | ) www.reuters.com time to read: +2 min

[1/2] Workers are seen at the production line of lithium-ion batteries for electric vehicles (EV) at a factory in Huzhou, Zhejiang province, China August 28, 2018. REUTERS/StringerFeb 1 (Reuters) - Michigan-based battery startup Our Next Energy (ONE) on Wednesday said it closed a $300 million Series B funding round that takes the three-year-old company’s valuation to $1.2 billion. The latest round, led by investors Franklin Templeton and Fifth Wall, makes Our Next Energy one of the most valuable privately held battery companies in the United States. Investors in the latest round include Temasek, Coatue, Riverstone Holdings, AI Capital Partners and Sente Ventures. The Series B round included an earlier $62.5 million convertible note closed with BMW iVentures, Assembly Ventures, Breakthrough Energy Ventures, Volta Energy Technologies, Flex and Coatue.

Maike's absence has encouraged some direct trade between sellers and buyers in the market but they face challenges. Fitch Solutions expects China's copper consumption to rise 4.4% this year, after just 1.5% growth in 2022. Anti-pandemic restrictions had also prolonged smelter maintenance and curtailed copper production growth last year, especially in the Guangdong area. Some smelters there have hiked their offers for 2023 copper premiums to 300 yuan a tonne, up from 200 yuan a tonne last year, a Shanghai-based trader said. While Maike's disappearance from the import market has been blamed for disrupting supplies and pricing, China's refined copper imports increased 6.6% in 2022, according to customs data.

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