Tuesday, December 11, 2018

It’s All Suddenly Going Wrong in China’s $3 Trillion Bond Market

The unprecedented boom in China's $3 trillion corporate bond market is starting to unravel. Spooked by a fresh wave of defaults at state-owned enterprises, investors in China's yuan-denominated company notes have driven up yields for nine of the past 10 days and triggered the biggest selloff in onshore junk debt...

China posts slowest quarterly growth in seven years

China is getting a slow start out of the gate this year, growing at its slowest pace in seven years during the first quarter. Gross domestic product expanded by 6.7% in the three months ended March, compared with the same period a year earlier, according to China's National Bureau of...

China’s Giant Steel Industry Just Churned Out Record Supply

The world’s biggest steel producer pushed output to a record in March as mills in China fired up plants to take advantage of a price surge since the start of the year that’s rescued profit margins. Output rose 2.9 percent to 70.65 million metric tons from a year earlier, the...

China’s obsession with IMF’s accounting unit and forging new global financial order reaches new...

Beijing is reviving efforts to broaden use of Special Drawing Rights to achieve longstanding strategic aim of dethroning US dollar in international monetary system. It is just one line in a foreign exchange document, but it signals a renewed seriousness. Last week, China's central bank started publishing the nation’s foreign exchange...

China Railway links Ethiopia to Red Sea

Nothing could be more symbolic of the decline of Europe and the rise of Eurasia than the construction of a modern railway from the Ethiopian capitol of Addis Ababa to a port on the Red Sea in Djibouti. The Rail line is being built by Chinese Civil Engineering Construction...

It’s Never Been This Hard for Chinese Debtors to Pay Interest

Just as monetary easing is pushing Chinese bond yields to record lows, the ability of listed companies to service their debt has dropped to the weakest on record. Firms generated just enough operating profit to cover the interest expenses on their debt twice, down from almost six times in 2010,...

China SDR announcement enshrines move away from its dollar focus

China pushes a multicurrency reserve system at heart of the world’s financial order. China's utterances over the years on the International Monetary Fund's special drawing rights confirm the Beijing authorities’ reputation for long-term thinking as well their ability to create riddles on what the goals actually are. The mystery is starting...

China Goes Prospecting for World’s Gold Mines

Hunt by Chinese companies for overseas deals could make China an even bigger player in the global gold market. Chinese gold miners are aggressively scouting for overseas acquisitions, encouraged by historically low gold prices that could help them scoop up assets cheaply. Though gold prices have risen by more than 16%...

In Odyssey for Chinese, Greece Sells Its Fabled Port of Piraeus

With the sale, China’s state-owned COSCO aims to turn a once-sleepy port into the “dragon’s head” of the New Silk Road. Beijing’s ambitions to build a modern-day “Silk Road” connecting China, Central Asia, and Europe took a big step forward Friday when Chinese state-owned shipping giant COSCO finally sealed a...

Greece seals sale of biggest port Piraeus to China COSCO

ATHENS, (Reuters) - Greece is to sell its biggest port Piraeus Port Authority to shipping group China COSCO Shipping Corporation, marking the second major privatization for the country since late last year. The port sale had been halted by the leftist government of Alexis Tsipras when it won elections in...

China develops continent-spanning railroad to Europe

China is pioneering a trans-continental rail service carrying cargo between the Far East and Western Europe with the aim of capturing some of the freight which currently moves by sea and air. China has the financial resources and the economic incentive to build a major transcontinental railroad service within the...

Top Chinese carmakers plot major push into India

China's top carmaker SAIC Motor Corp and Great Wall Motor, its biggest maker of SUVs, are spearheading the country's first major push into India, one of the world's fastest growing auto markets, as growth at home stagnates. The entry is late and risky - global carmakers like Volkswagen AG, Ford...

Chinese Censors Rush to Make Panama Papers Disappear

Several Beijing leaders were implicated in the big leak. Reading social media, you’d never know it. On April 3, the Washington, DC-based non-profit International Committee of Investigative Journalists (ICIJ) dropped what struck many as a bombshell: news that a leaked trove of 11.5 million previously secret files from Panama-based law...

Chinese Central Bank Vows to Expand Use of IMF Reserve Currencies

The Chinese yuan was included in the IMF's elite basket of reserve currencies last year. BEIJING—China’s central bank Governor Zhou Xiaochuan said the government will make efforts to expand the use of the International Monetary Fund’s basket of reserve currencies in its domestic economy. Mr. Zhou said China will use both...

India seeks $500 million loan from AIIB for solar power projects

India has set an ambitious target of having 100 GW solar power generation capacity by 2022 under the National Solar Mission. India has sought $500 million from the newly created, China-led Asian Infrastructure Investment Bank (AIIB) for solar power projects. "We have applied for $500 million funding from AIIB. Besides, $1...

China’s yuan set for biggest quarterly gain since Sept 2014

SHANGHAI: China's yuan is poised for its biggest quarterly gain since September 2014, underpinned by firmer central bank guidance as the country's financial markets continue to stabilise and the dollar loses momentum. Federal Reserve Chair Janet Yellen's cautious view on U.S. rate hikes this week, which dampened views of other...

Global Steel Industry Facing Ice Age, Top China Mill Warns

The crisis engulfing the global steel industry is so severe that one of China's top producers has warned a new Ice Age has set in as mills confront overcapacity and rising competition that threaten their survival. “In 2015, China experienced a slowdown in economic growth and excess steel capacity, which...

Chinese Stocks in Hong Kong Enter Bull Market; Shanghai Rebounds

China’s Shanghai Composite Index capped its steepest monthly advance in almost a year, while a gauge of Chinese companies trading in Hong Kong entered a bull market amid signs the nation’s economy and currency are stabilizing. The Shanghai Composite rebounded 12 percent in March, led by consumer and technology companies....

China shifts axed miners to lower-paid jobs in farming, cleaning

Anticipating millions of layoffs from bloated state-owned coal and steel companies, Chinese authorities are shunting redundant workers into jobs in farming, forestry and public services. While this may keep unemployment rates under check, such jobs generally pay less, and could mean a step down in quality of living, reduced spending...

Too Big to Sanction

How the internationalization of China’s currency hurts Washington’s ability to punish human rights violators. In November 2015, when the International Monetary Fund announced it was adding China’s currency, the renminbi (RMB), to its basket of four reserve currencies known as Special Drawing Rights (SDR), the fund’s managing director, Christine Lagarde,...

China’s yuan hits 2016 high on strong fixing, global US dollar weakness

SHANGHAI (REUTERS) - China's onshore yuan on Friday (March 11) hit its strongest level against the US dollar in 2016, buoyed by the central bank's firmest midpoint this year and the greenback's slide after the European Central Bank suggested it was done cutting rates for now. Offshore yuan strengthened 0.3...

Chinese New Year Not So Happy For China’s Growing Number Of Unpaid Workers

SHANGHAI — On a side street in China's biggest metropolis, workers in white T-shirts painted with red slogans stand on the sidewalk outside a private club, accompanied by a pair of uniformed policemen talking anxiously into their radios. The slogans call for their employer, which has closed down, to pay them the back salary they are...

China to ease commercial banks’ bad debt burden via equity swaps

China's central bank is preparing regulations that would allow commercial lenders to swap non-performing loans of companies for stakes in those firms, two people with direct knowledge of the new policy told Reuters. The new rules would reduce commercial banks' non-performing loan (NPL) ratios, and free up cash for fresh...

Chinese exports plunge 25% in February

Chinese exports have seen their sharpest drop in almost seven years, adding to concerns over the health of the world's second largest economy. Exports dropped sharply by 25.4% from a year earlier, while imports fell 13.8%. The weak data comes on the heels of Beijing registering the slowest economic growth in...

China Trade Balance Plunges To 11-Month Lows As Exports Crash Over 25%

Worse than expected is an understatement. Things are not getting better in China as Exports crashed 25.4% YoY (the 3rd largest drop in history), almost double the 14.5% expectation and Imports tumbled 13.8%, the 16th month of YoY decline - the longest ever. Altogether this sent the trade surplus down...

China to lay off five to six million workers, earmarks at least $23 billion

China aims to lay off 5-6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution, two reliable sources said, Beijing's boldest retrenchment program in almost two decades. China's leadership, obsessed with maintaining stability and making sure redundancies do not...

Yuan Soars Most In A Month Ahead Of National People’s Congress

With all western eyes firmly focused on US payrolls tomorrow, China is preparing for the biggest leadership gathering of the year this weekend. Offshore Yuan (USDCNH) is soaring (up over 5 handles in the last 24 hours) ahead of The National People's Congress as PBOC Deputy Governor hinted at...

China is spending nearly $1 trillion to rebuild the Silk Road

Two weeks ago, a 32-container train from Wuyi, China arrived in Tehran, Iran. You might think the arrival of cargo by rail would be no big deal, but in this case you’d be wrong. This was the first journey of its kind between the two cities, and it shortened...

China economy: Workers of the world’s factory protest against wage cuts and layoffs

In China's industrial heartland, the Communist Party controls the unions – but workers who feel mistreated refuse to be silenced. In the “world’s factory”, the workers are angry and disillusioned. Strikes and other labour protests have spiked across the country as Chinese manufacturing plants lay off workers and reduce wages in...

Huge steel and coal layoffs show just how big China’s industrial slowdown really is

BEIJING (Reuters) - China said on Monday it expects to lay off 1.8 million workers in the coal and steel industries, or about 15 percent of the workforce, as part of efforts to reduce industrial overcapacity, but no timeframe was given. It was the first time China has given figures...

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