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The stimulus measures should have come far sooner, says Lun, but better late than never. Beijing has largely held back on unveiling fiscal measures, which can include the use of taxation or other measures to impact public spending. Another one trillion yuan may be set aside for recapitalizing banks or helping indebted local governments to issue bonds. Jia said China’s economy had expanded sufficiently since then to support the issuance of Treasury bond financing between four trillion to 10 trillion yuan. Any meaningful stimulus measures must tackle the problem of oversupply in the property market, experts said.
Persons: Francis Lun, he’s, Lun, , we’re, Juliana Liu, Ray Dalio, Pan Gongsheng, Li Yunze, Wu Qing, Pan, Jing Liu, it’s, Xi, Jia Kang, Jia, Chi Lo Organizations: Hong Kong CNN —, Index, CNN, Geo Securities, Nikko Asset Management, Bridgewater Associates, National Development Reform Commission, People’s Bank of China, Financial Regulatory, China Securities Regulatory, HSBC, Reuters, Ministry, Finance, Ministry of Finance, China Academy of New, Barclays, BNP, Management Locations: China, Hong Kong, Causeway, Beijing, Renhuai
“The policymakers recognize the urgency to prevent an outright property crisis,” said Zhaopeng Xing, senior China strategist at ANZ Research. According to Goldman Sachs, the total value of unsold homes, unfinished projects and unused land in China is about 30 trillion yuan ($4.1 trillion). On Friday, Tao Ling, deputy governor of the PBOC, said the relending program could eventually underpin 500 billion yuan ($69 billion) worth of bank loans to support the buying. The Housing Ministry said Friday that local governments can instruct local state-owned enterprises to help purchase some unsold homes from developers. Just the beginningAddressing the oversupply of unsold homes is only the first step, experts say.
Persons: , Zhaopeng Xing, Goldman Sachs, it’s, Tao Ling, Ting Lu, Nomura, Helen Qiao, It’s, Tao, ” Jing Liu, Taylor Wang, Xing, Goldman, Donald Trump, Michelle Lam, Wei Yao, Société Générale Organizations: Hong Kong CNN —, ANZ Research, Goldman, People’s Bank of China, Greater China, Bank of America, Housing Ministry, HSBC, European Union Locations: China, Hong Kong, Hong Kong CNN — Beijing, Beijing, Greater, Société, Japan
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThere are both cyclical and structural factors behind China’s high youth unemployment rate: HSBCJing Liu of HSBC says one factor behind China's high youth unemployment rate is the mismatch between what jobs are available in the market and what young job seekers are looking for.
Persons: HSBC Jing Liu Organizations: HSBC
"Consumers are not spending, mainly driven by the bleak outlook for the property market. Disappointing retail numbers and property market sales show it doesn't seem that the boost from rate cuts is sufficient. ..the property market is beginning another slowdown - the government will have to come up with more stimulus for property." "Nonetheless, we think more stimulus is required to stabilise and restore confidence in the property market." ZHIWEI ZHANG, CHIEF ECONOMIST, PINPOINT ASSET MANAGEMENT, HONG KONG"Nominal GDP growth turns out to be lower than real GDP growth in Q2, the first time since comparable data are available in Q4 2016.
Persons: CHRISTOPHER WONG, LOUIS KUIJS, CAROL KONG, XING ZHAOPENG, KEN CHEUNG, ALVIN TAN, VISHNU VARATHAN, MARCO SUN, CHEN, TONY SYCAMORE, ZHIWEI ZHANG, JING LIU Organizations: Gross, National Bureau, Statistics, Shanghai, NBS, BANK OF, ANZ, MIZUHO BANK, OF, OF ASIA FX, RBC, MUFG BANK, IG, SYDNEY, Friday's, BANK OF SINGAPORE, HSBC, stoke, Authorities, Reuters, U.S, Thomson Locations: U.S, SINGAPORE, ASIA, HONG KONG, SYDNEY, CHINA, SHANGHAI, OF ASIA, China
BEIJING, Jan 18 (Reuters) - China's state planner approved 1.48 trillion yuan ($218.35 billion) worth of fixed asset investment projects in 2022, nearly double the value from the previous year, as authorities geared up to support the COVID-hit economy. Looking to 2023, the NDRC spokesperson remarked that the country's economic recovery remains complicated given that China must grapple with shrinking demand, supply chains shocks and turbulence in the global economy. China's exports shrank sharply in December as global demand cooled, contracting 9.9%, while imports fell by a more modest 7.5%. Officials also addressed the country's grain supply, commenting that the NDRC could ensure the safe supply of grain despite the challenges the market is facing. Reporting by Joe Cash and Shen Yan; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.
watch nowThe Chinese yuan significantly strengthened in the past few days as China announced further easing of its Covid control measures. However, it quickly recovered to 6.96 within about a month as Chinese health authorities continued to announce further easing measures. "That will renew the demand for the Chinese yuan and drive the yuan even higher than it is right now." Beijing has been rolling back the restrictions "pretty quickly," and the surge in demand for the yuan comes with a sooner-than-expected easing measures, Lien said. Woman holds Chinese Yuan banknotes in this illustration taken May 30, 2022.
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