China Economic News

(03-03-2017, 06:08 PM)Behappyalways Wrote: Like Hyflux ^^

China's Great Balance Sheet Play
https://www.bloomberg.com/gadfly/article...-it-s-debt

Yah loh, they did a lot of debt to equity swaps and all that sort of financial engineering stuffs last year. 

i think Beijing is just in reaction mode now, busy clamping down on any speculative markets or assets. All the excess credit they have created and is now unable to go offshore will continue sloshing around. Property market there is like bubbling up again once more. 

Recently clamping down on steel mill as a reaction to pollution. I think everytime chairman Xi go back Beijing he will need to get some supply of fresh compressed mountain air for his residence, so he also sian ji pua.

Mixed bag of news out of China... Go figure...

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China Jan-Feb factory, investment beat forecasts but retail sales disappoint

BEIJING (Reuters) - China's factory output and fixed-asset investment grew more strongly than expected in the first two months of the year, but retail sales disappointed after the government reduced a tax break on small cars.
Industrial output rose 6.3 percent in January-February from the same period a year earlier, fixed-asset investment 8.9 percent and retail sales 9.5 percent.
The overall readings are likely to reinforce views that the world's second-largest economy is on a steady growth path, despite worries about the risks of slightly tighter credit policy this year and a surge in U.S. trade protectionism.
China combines January and February activity data in a bid to smooth out seasonal distortions caused by the timing of the long Lunar New Year holidays, which began in late January this year but fell in February last year.

https://sg.finance.yahoo.com/news/china-...11292.html

Some China property stocks listed on HK exchange are reporting better final results this time round compared to last year.

It is quite interesting in the sense that the Gov is the boss of these banks and despite boss's direct orders, the big banks are reluctant to follow (and doing a "wait and see"?). In theory, the Gov has already spoken ("you are not accountable") but in practice, when the commoners start appearing and smashing the custodian bank's doors when the P2P lender disappears, you don't need to be accountable to end up paying the bill, in order to protect your image.

Another way to interpret this would be the lack of trust in general of the Chinese population, or the lack of faith in the viability of P2P platforms on a whole?

Banks Still Reluctant to Be Custodians for Peer-to-Peer Lending Funds

(Beijing) — Big banks remain wary of risks involved in providing custodian services for peer-to-peer (P2P) lending platforms’ investor funds, despite reassurances from the banking regulator.

One month after the China Banking Regulatory Commission (CBRC) issued a policy that requires P2P platforms to appoint commercial banks as custodians of clients’ money to prevent misuse of funds, only a handful of banks have showed enthusiasm for providing such services, according to data compiled by Caixin.

http://www.caixinglobal.com/2017-03-20/101067926.html

(20-03-2017, 04:59 PM)weijian Wrote: It is quite interesting in the sense that the Gov is the boss of these banks and despite boss's direct orders, the big banks are reluctant to follow (and doing a "wait and see"?). In theory, the Gov has already spoken ("you are not accountable") but in practice, when the commoners start appearing and smashing the custodian bank's doors when the P2P lender disappears, you don't need to be accountable to end up paying the bill, in order to protect your image.

Another way to interpret this would be the lack of trust in general of the Chinese population, or the lack of faith in the viability of P2P platforms on a whole?

Banks Still Reluctant to Be Custodians for Peer-to-Peer Lending Funds

(Beijing) — Big banks remain wary of risks involved in providing custodian services for peer-to-peer (P2P) lending platforms’ investor funds, despite reassurances from the banking regulator.

One month after the China Banking Regulatory Commission (CBRC) issued a policy that requires P2P platforms to appoint commercial banks as custodians of clients’ money to prevent misuse of funds, only a handful of banks have showed enthusiasm for providing such services, according to data compiled by Caixin.

http://www.caixinglobal.com/2017-03-20/101067926.html

It's a communist country after all. Gov IS THE BOSS. But sometimes the boss find it hard to control the underlings...

In other news, looks like the beginnings of a trade war. 

China's trading partners alarmed by food import controls

Trump has spoken but hasn't actually done anything yet, whilst Europeans have recently done things like import duties on Chinese Steel. So maybe China wanna be preemptive and start flexing some muscles. If anything they probably need to have stricter regulations for their own internal food/farming sector.

China's Banks Are Still in Trouble
https://www.bloomberg.com/view/articles/...in-trouble

China Finally Halts Outflows. Now What?
https://www.bloomberg.com/view/articles/...s-now-what

(11-04-2017, 11:48 AM)Behappyalways Wrote: China Finally Halts Outflows. Now What?
https://www.bloomberg.com/view/articles/...s-now-what

http://www.baldingsworld.com/

Should follow his blog, has very detailed analysis of China, its capital controls and his analysis of the possible outcomes.

IMF Raises China Growth Forecast, but Warns of Debt-Related Risks
http://www.caixinglobal.com/2017-04-19/101080395.html

China's Control Problem
https://www.bloomberg.com/view/articles/...ol-problem