China's LPR cut part of global trend
China's September loan prime rate (LPR) was lowered 5 basis points to 4.2 percent for one-year maturities on Friday, according to the National Interbank Funding Center, a unit of the People's Bank of China (PBC). The five-year prime rate, which is generally used as a reference for mortgages, remained unchanged at 4.85 percent.
Beijing needs to prepare for emergence and development of a new global monetary system
With increasing risk aversion in the global financial market, 2019 marks the beginning of a new bull market in gold. Thus far this year, the spot gold price is up by more than 20 percent, and is the most popular safe-haven asset in 2019. As investors are buying into gold, central banks of more than 30 countries including China and Russia have also increased their gold holdings. According to the latest statistics, by the end of August, China's gold reserves reached 62.45 million ounces, with a market value of about $95.5 billion. August also marked the ninth consecutive month that China increased its gold reserves.
China has contributed greatly to global prosperity
October 1 this year will mark the 70th anniversary of the founding of the People's Republic of China. In a matter of seven decades, China has evolved from a third-world country, devastated by two world wars, to an emerging power. It is a strong economy and a beacon of hope that is stabilizing global economic order, acting as a defender of a multipolar world, exercising its sovereign rights without external influences, and bringing about new institutions to spur economic growth.
Saudi attack shows importance of oil reserves
Crude oil prices were on a roller coaster ride across global markets this week. The Saudi attack is the biggest knock to oil output to date, and immediately removed 5.7 million barrels per day (bpd) from the Middle Eastern country's oil production capacity – equivalent to over 5 percent of the world's daily supply. According to data from the US Energy Information Administration (EIA), Saudi Arabia produced 9.85 million bpd on average in August.
China remains attractive to foreign capital
The China Development Forum Fall Summit was recently held in Beijing. Against the backdrop of China-US trade dispute upgrades, the forum brought together 60 representatives from the US side, including former US government officials, well-known scholars and industry leaders.
China, US heightening influence on crude market
At a ministerial-level meeting in Abu Dhabi on Thursday, the Organization of the Petroleum Exporting Countries (OPEC) and its oil-producing allies reaffirmed the compliance to the previous output reductions. OPEC+, a 14-nation cartel and a group of 10 allied countries, previously agreed to cut oil output by 1.2 million barrels per day (bpd) beginning early 2019.
Can Hong Kong's linked exchange rate system withstand shocks amid trade war?
With the yuan's rate breaching the psychologically important 7 threshold against the US dollar in August, the Hong Kong dollar's exchange rate has also been affected. Many market participants are worried about whether or not Hong Kong's financial market can maintain stability and if Hong Kong's linked exchange rate system can withstand the impact.
Patience required when India is one step away from its moon landing
The moon lander of India's Chandrayaan-2 plan was just 2.1 kilometers away from the lunar surface when it lost communication. Compared with the 380,000 kilometers between the Earth and the moon, this distance was so close that it was virtually one step away.
Reliance on mainland key for HK economy
Since the Chinese mainland's reform and opening-up began, it has received worldwide attention for its great achievements for which Hong Kong has played a valuable and irreplaceable role.
US needs to stop using tariffs at will
Tariffs are now becoming toys for US President Donald Trump. He always plays the “tariff card” when he feels bored, and he needs to because he is addicted to tariffs. Without tariffs, President Trump has no fun with himself and his team members.
Trump government needs to change course and stop the trade war with China
Following a ferocious rhetorical spat between Washington and Beijing over the past two months, the world's two major powers have agreed to hold high-level trade talks in the US in early October. The world has been watching aghast, concerned that the unprecedented-scale trade war will cause a global recession in 2020.
US unions cannot be overlooked by Chinese businesses
American Factory, a documentary backed by former US President Barack Obama and former first lady Michelle Obama, records the twists and turns that Chinese glass manufacturer Fuyao encountered while setting up a factory in Dayton, Ohio. In 2017, the New York Times reported on the cultural conflicts the Chinese company had encountered.
Cao Dewang, the Chinese businessman who owns Fuyao, fired several American managers for being inefficient and not doing their jobs, while Americans said the Chinese management did not pay attention to safety and environmental protection.
China's real estate sector unlikely to weaken despite declining statistics
The decline of the home-buying fervor in China, as evidenced by some statistics, is not tantamount to a housing recession.
Chinese footwear companies should focus on market trends
Chinese shoe brand Fuguiniao was de-listed from the Hong Kong Stock Exchange in August.
A draft of the company's reorganization plan was rejected by the court, its reorganization was terminated and the company has been declared bankrupt.
US foreign aid abandons moral cover amid rescission struggle
US President Donald Trump's recent plan to freeze $4 billion in foreign aid incited broad bipartisan backlash. The funding is actually unobligated, expiring balances from fiscal year 2018, and is supposed to go to the US Agency for International Development, UN peacekeeping activities, and UN humanitarian programs.
China needs new push to become global AI leader
China needs to stay coolheaded and push for technology-based innovation amid escalating trade tensions with the US. This seems especially the case in the arena of AI, which has increasingly become a two-man contest.
HK should get on technology fast track with mainland
At the end of July, Hong Kong installed 50 “smart lamp posts,” which have several features including a Bluetooth detector for traffic flow, a sensor for weather and an artificial intelligence, panoramic camera. The devices installed have triggered the concerns of some younger generations, who worry that their privacy may be invaded and monitored.
Western corporate governance outdated
Last week, a group of US business leaders, including chief executives of Apple, Pepsi, Walmart and JPMorgan Chase, held a Business Roundtable meeting before issuing a statement on “the purpose of a corporation.” To redefine the role of business in society, the statement said that a company should have a broader responsibility to society instead of caring only about shareholders' interests. The new statement was signed by more than 180 chief executive officers.