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Moody’s downgrade of China’s rating not fair

International rating agency Moody’s downgraded China’s credit rating to A1 from Aa3 on Wednesday, based on its forecast that China’s financial strength would be affected by rising debt and a slowdown in growth that would lead to more dependence on policy stimulus. It was Moody’s first downgrade for the country since 1989.
Source: Global Times | 2017/5/25 23:18:39

Chinese firms should prepare to deal with fallout from mounting crisis in Brazil

Brazil’s political crisis is escalating, affecting the country’s economic and social stability, and Chinese companies and investors should be prepared to guard against potential risks in the country.
Source: Global Times | 2017/5/25 23:13:39

Long way to go for flammable ice to be a solution

China has recently succeeded in mining flammable ice in the South China Sea, a historic breakthrough for the country’s exploitation and utilization of natural gas hydrates. This is of great significance for China, which is in a phase of upgrading its energy systems, as well as economic transformation and air quality improvement. However, despite the huge interest in commercialization of flammable ice, realizing this goal will still be very tough.
Source: Global Times | 2017/5/25 23:13:39

Wal-Mart success shows importance of online strategy for struggling retail sector

Wal-Mart’s online therapy may help revive ailing retailers. The $242 billion giant is starting to reap the benefits of embracing e-commerce while shares in digital laggards like Macy’s and J.C. Penney have plummeted after poor results. Unless they follow the behemoth’s lead, they’re likely to hand more market share to Wal-Mart and Internet megastore Amazon.
Source: Global Times | 2017/5/25 23:08:39

B&R can help strengthen China-Turkey ties

At the opening ceremony of the Belt and Road Forum, it was noted that Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan sat on both sides of Chinese President Xi Jinping. President Erdogan, who delivered a speech at the opening ceremony, was prominent at the event, indicating that the Sino-Turkish relationship has become warmer. It shows that China attaches great importance to Turkey’s contribution to the Belt and Road (B&R) initiative.
Source: Global Times | 2017/5/24 23:38:39

India’s desire to block Chinese power firms will only hurt its own people’s interests

India’s reported move to block Chinese companies in the power sector seems to be new evidence of the country’s overly suspicious attitude toward China, but this could backfire given that India is still plagued by electricity shortages and unstable supply.
Source: Global Times | 2017/5/24 23:33:39

Strong regulation vital for Chinese stock market stability

China’s stock market has had a torrid time recently, with the benchmark Shanghai Composite Index falling more than 230 points since early April. This has been met with a torrent of criticism from individual and institutional investors alike.
Source: Global Times | 2017/5/24 23:28:39

Deadly bomb attack in Manchester set to influence upcoming UK general election

A suicide bomber has brought a tragic twist to the British election. The attack that killed at least 22 concertgoers in the northern city of Manchester and left another 59 injured was the country’s deadliest for more than a decade. Even in a country familiar with acts of terror, this will shift the debate.
Source: Global Times | 2017/5/24 23:23:39

Eurozone outlook less grim than many realize

I have been out of the world of international finance and economic forecasting for more than four years, but much of what I learned during my 30 years working full-time in the field still influences how I view the world. One lesson was to measure an entity’s economic and financial performance by how it compares both to the entity’s underlying potential and the market’s valuation of its performance. Applying this approach to the major economies gives rise to some surprising observations – and possibilities.
Source: Global Times | 2017/5/23 21:53:40

China-US trade plan yields early benefits, but far harder negotiations still to come

While the latest progress on the 100-day action plan for trade talks between China and the US was the announcement that the two markets would open up to each other in certain areas such as agricultural products and financial services, the plan has failed to address problems in some key trade areas between the two countries, stoking fears of challenges ahead for their future trade negotiations.
Source: Global Times | 2017/5/23 21:53:39

Tax reform needed to avoid middle income trap in China

Not long ago, Peking University economics professor Cao Heping wrote in an op-ed in the Global Times that China had avoided the threat of the middle income trap. But shortly after that, Xu Xiaonian, professor of economics and finance at the China Europe International Business School, advanced the opposite opinion, which surprised me.
Source: Global Times | 2017/5/23 21:48:39

Political fragmentation in Spain could put a dampener on prospects for recovery

Spain’s rapid economic revival had it billed once as a rival to Germany. But after the leftist surge in Sunday’s socialist primaries, Madrid’s fragmented political landscape makes it look a bit like slower-growth peer Italy.
Source: Global Times | 2017/5/23 21:43:39

Failure to tackle deleveraging task in China will only lead to greater pain

With China currently facing the urgent tasks of tightening financial supervision and clamping down on financial leverage, there is a need to learn from the experiences of the Japanese and US economies in handling deleveraging.
Source: Global Times | 2017/5/22 23:28:40

Singapore poised to overtake Switzerland

If this city island nation in Southeast Asia wants to survive, extraordinary efforts should be made to make the country extraordinary, Singapore’s founding father, Lee Kuan Yew, wrote in his memoirs. This can also apply to Singapore’s current efforts to maintain its competitiveness in global financial markets.
Source: Global Times | 2017/5/22 23:23:39

Japanese efforts to entice US back to embattled TPP trade pact appear to have failed

In the absence of the US, Japan – currently the largest economy among the 11 member countries left in the Trans-Pacific Partnership (TPP) pact – has been leading the way in salvaging the TPP. But skepticism remains about whether the deal can survive.
Source: Global Times | 2017/5/22 23:18:28

SoftBank offering few specifics but investors tempted by remarkable return rate

Can you have vision without clarity? When it comes to SoftBank boss Masayoshi Son, it seems the answer is yes.
Source: Global Times | 2017/5/22 23:18:27

Trade support needed to boost aid for Africa

Aid to sub-Saharan Africa decreased in 2015, as a result of sluggish global growth and weak commodity prices. And the 2018 budget blueprint recently announced by the US cut the foreign aid budget by one third, while the impact of Brexit on Africa is a further reason for uncertainty.
Source: Global Times | 2017/5/21 22:08:39

CNPC, Sinopec set to ride out oil sector woes

In the coming few years, we expect China’s refining capacity to rise as new refineries begin operating and demand growth remains sluggish. As a result, utilization rates, and subsequently profit margins, will likely decline for Chinese refiners.
Source: Global Times | 2017/5/21 22:03:39