BUSINESS >> Comments

A-share revival can't bank on CSRC leadership change

Chinese mainland shares closed lower on Monday, the first trading day after Saturday's announcement of banking veteran Yi Huiman becoming the new head of the China Securities Regulatory Commission (CSRC), the country's securities regulator. A multitude of retail investors anticipating the onset of a bull market after getting a new CSRC boss, were disappointed.
Source: Global Times | 2019/1/31 18:38:41

US will feel impact of shifts in Chinese investment

A study released by China's Ministry of Commerce on Tuesday reminded Chinese companies of increased risks of investing in North America, especially the US and Canada. As Washington grows more hostile toward Chinese investment through an increase in security reviews, Chinese companies' willingness to go to the US has been decreasing. In 2017, China's investment in North America was down 68.1 percent from the previous year, Chinese official figures have shown.
Source: Global Times | 2019/1/31 0:29:13

US' conservative unilateral trade protectionism will affect Southeast Asian economies

Whether Southeast Asia has become one of the beneficiaries of the trade frictions between China and the US appears to have been a hot topic at the World Economic Forum in Davos, Switzerland. However, economic data recently released by Southeast Asian countries implies that it is not that easy for Southeast Asia to benefit from the China-US trade tensions, at least in the short term, and in fact quite the opposite may be seen.
Source: Global Times | 2019/1/31 0:28:39

Vale's mining tragedy puts Brazilian government's deregulation attempt in muddy waters

A lethal dam collapse wiped $18 billion off Brazilian miner Vale's market capitalization. It may also derail newly elected President Jair Bolsonaro's plans to bolster business by rolling back environmental and other regulations. Angry Brazilians and skittish lawmakers may want to go in the opposite direction.
Source: Global Times | 2019/1/30 18:23:40

Efforts needed to ensure healthy property growth

Since the beginning of 2019, the PBC, China's central bank, has taken a slew of moves to release liquidity into the economy. These moves are targeted to smooth out the capital squeeze of major banks before the Chinese New Year and are aiming to channel capital to the small and micro-sized enterprises. However, the changes have triggered concerns about whether China has gone back to reopen the floodgates of stimulus seen a decade ago. The real estate sector also wonders if the upcoming year will be their time again.
Source: Global Times | 2019/1/30 18:20:56

US, allies should match China's opening-up moves

China is moving quickly to push forward a draft law amendment that aims to further open its economy to foreign investment.
Source: Global Times | 2019/1/29 21:08:01

Consumption quality of China's middle-income population needs more attention

The latest official data shows that in 2018, China's GDP grew by 6.6 percent to hit 90 trillion yuan ($13.32 trillion) for the first time. Consumption expenditure accounted for 76.2 percent of GDP growth, up by 18.6 percentage points compared with the previous year.
Source: Global Times | 2019/1/29 21:04:35

China can handle economic challenges with reform

The global economy could well be headed for serious trouble in 2019. At work is a new twist to the time-honored linkage between global trade and GDP. With growth in global trade sharply diminished since the global financial crisis of 2008-09, an upsurge of protectionism and disruptions to global supply chains is all the more problematic. As a result, there is a distinct possibility that a slight turn in the trade cycle could well spark a surprisingly swift deterioration in the global economic climate.
Source: Global Times | 2019/1/29 17:33:40

WEF heeding 'gilets jaunes' messages, though unity in social fairness is hard to achieve

Davos 2019 has a jaundiced hue – that is, the color of the vests worn by protesters rocking Paris every weekend. The gripes of the “gilets jaunes” should be familiar to attendees at the World Economic Forum (WEF), who have talked about income inequality regularly since the financial crisis. What's different now is the specter of widespread social unrest – even violence.
Source: Global Times | 2019/1/29 17:13:40

Modi's task is jobs, and Chinese investment can help

Ahead of a general election due by May, Indian Prime Minister Narendra Modi suffered a setback in an India Today poll, which showed his popularity rating had dropped to a record low of 46 percent.
Source: Global Times | 2019/1/28 20:30:36

What will the impact of an economic slowdown in China mean for India?

With China's official economic growth coming in at 6.6 percent in 2018, it seems certain that India again would overtake China as the world's fastest growing economy. While official data about the Indian economy is still unavailable, the World Bank has already forecast that India's GDP would grow at 7.3 percent in the fiscal year 2018-19.
Source: Global Times | 2019/1/28 20:29:39

A shift from dependence on Tesla may help diversify Panasonic's battery business

A joint venture with Toyota should help recharge Panasonic's battery business. The deal unveiled on January 22 involves pooling resources at factories in both Japan and China, by the end of 2020. It represents a technological step forward for the $200 billion automaker, whilst reducing Panasonic's dependence on Tesla.
Source: Global Times | 2019/1/28 15:23:39

Taxation, loose monetary policies aggravate inequality

The gap between rich and poor keeps widening as the wealth of the world's billionaires increased by $2.5 billion a day in 2018, according to a report by global charity organization Oxfam, released ahead of the yearly World Economic Forum in Davos, Switzerland.
Source: Global Times | 2019/1/28 15:18:39

West can boycott Huawei, but not all Chinese products

The Canadian government will provide up to $40 million for Finnish telecom giant Nokia to conduct research on 5G wireless technology, Canadian Broadcasting Corp (CBC) reported Friday. That story was confirmed soon by a post on the website of the Government of Canada.
Source: Global Times | 2019/1/27 20:53:10

With 5G services and applications still on the horizon in China, 6G hype is premature

With the advent of the 5G era in China this year, the rollout of massive networks is underway and 5G pre-commercial trials will begin in the second half of the year. A portion of users will likely try out 5G services some time in 2019. Media attention has also been drawn to 5G at fever pitch.
Source: Global Times | 2019/1/27 20:53:09

Big money proves tempting even for those Democrat candidates trying to shun donations

White House hopefuls are in denial about Wall Street donors. Some Democratic presidential contenders promise to shun corporate funds. But a large war chest will be handy amid a crowded field of progressives. President Donald Trump has already raised more than $100 million for his 2020 re-election bid.
Source: Global Times | 2019/1/27 15:03:39

Fed's interest rate hike may be too little too late

The US Federal Reserve's policy-setting Federal Open Market Committee (FOMC) in December voted unanimously to increase the short-term interest rates by a quarter of a percentage point, taking it from 2.25 percent to 2.5 percent. This was the fourth increase in 12 months, a sequence that had been forecast a year ago, and the FOMC members also indicated that there would be two more quarter-point increases in 2019. The announcement soon met with widespread disapproval.
Source: Global Times | 2019/1/27 14:58:39

Sticking to the cost-cutting target can lift up UBS stock price even with market turmoil

UBS has sounded the end of an era on a negative note. A quarterly pre-tax loss at the lender's investment bank coincided with the sudden departure of chief rainmaker Andrea Orcel, while market declines also saw the wealth management profit fall sharply. Still, as long as Chief Executive Sergio Ermotti can stick to his cost-cutting targets the group should be able to manage volatile conditions better than its peers.
Source: Global Times | 2019/1/24 19:59:57