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Rise of Greens in new German govt could spell trouble for energy, auto sectors

Germany’s new electoral landscape promises upheaval for companies as well as politicians. Chancellor Angela Merkel faces tricky coalition negotiations after Sunday’s elections. Organizing a parliamentary majority requires simultaneous support from the pro-business Free Democrats and the Greens. The environmental party’s inclusion would be good news for Germany’s emission-reduction ambitions, but may hurt car
Source: Global Times | 2017/9/28 21:53:39

BRICS face internal challenges as global role grows

Following the BRICS Summit in Xiamen, East China’s Fujian Province, the question is how to build the second golden decade of the bloc. The BRICS (Brazil, Russia, India, China and South Africa) have expanded their “friends” circle with the “BRICS plus” mechanism so that a new cooperation partnership model with other developing countries can be built.
Source: Global Times | 2017/9/27 23:03:39

China’s economic achievements offer lessons in reform, opening up as India faces slowdown

Malaysia and Hong Kong “are proving to be the biggest growth surprises in Asia” this year while India received the steepest downgrade among major economies in the Asian Development Bank’s latest outlook, Bloomberg News reported recently.
Source: Global Times | 2017/9/27 22:58:40

Why lowered credit rating won’t affect China

What will be the impact of Standard & Poor’s decision to lower China’s sovereign credit rating? I don’t believe there will be any serious effect.
Source: Global Times | 2017/9/27 22:53:42

High yield earns stamp of approval for Japan Post, despite weak growth prospects

Japan Post is relying on fat payouts again. Tokyo is selling down about $11 billion of stock in the postal operator and financial holding company, with about three-quarters going to local households. Like the huge privatization in 2015, this sequel owes little to the former state monopoly’s growth prospects – and almost everything to a cheap valuation and high dividend yield.
Source: Global Times | 2017/9/27 22:53:40

Action needed as Chinese buyers drive up housing prices in Southeast Asian countries

Property investors from the Chinese mainland are shifting their sights to Southeast Asia, a development that may have negative implications for the economies in that region, so tougher regulations are necessary.
Source: Global Times | 2017/9/26 20:18:39

Venezuela seeks dollar freedom by pricing oil in yuan

Venezuela has recently begun pricing its crude oil in the yuan in a bid to circumvent US sanctions. As a Latin American country heavily relying on oil exports, Venezuela’s decision came as a surprise.
Source: Global Times | 2017/9/26 20:18:39

Sea can see potential benefits from $1b IPO but growing competition a big concern

Listed life can be rough. Sea, a Southeast Asian startup formerly known as Garena, has filed for a US IPO of up to $1 billion. But larger deep-pocketed rivals are ramping up competition. An IPO at this stage could make the fight to come harder.
Source: Global Times | 2017/9/26 20:03:39

Japan still struggling to move on after lost decades

The concept of a “lost 20 years” is used to describe the prolonged period of stagnation in Japan since the country’s 1991 economic crisis. People who experienced the Showa period (1926-89) and Heisei period (1989 to present) will be able to recognize the changes in Japanese society. However, compared to the former glory, what the mediocre Heisei period has lost is far more than just the economic downturn reflected by data.
Source: Global Times | 2017/9/26 20:03:39

Chinese enterprises need sense of mission in Pakistan

Pakistan has enjoyed a firm relationship with China for more than 60 years. However, in terms of bilateral cooperation related to the Belt and Road (B&R) initiative, many Pakistani media reports have alleged that these investments do not simply reflect the Sino-Pakistan friendship or represent pure assistance to Pakistan, but are instead driven by China’s interests.
Source: Global Times | 2017/9/25 22:23:19

Merkel manufactures victory by focusing on retaining, modernizing industrial sector

While many talk excitedly about how Angela Merkel’s reassuring image played a central role in the German election, less attention was paid to the economic logic behind Merkel’s re-election as German chancellor.
Source: Global Times | 2017/9/25 22:23:18

China’s bid for economic upgrade depends on chips

Whether the Chinese economy can succeed in shifting toward transformation and upgrading depends to a large extent on whether or not the country can become the world’s leading integrated circuit (IC) chip producer.
Source: Global Times | 2017/9/25 21:33:39

HTC hoping to leave troubles behind as it focuses on promising new virtual reality

HTC is embracing an alternative reality. The ailing Taipei-based group is offloading part of its handset unit to Google for $1.1 billion. This will free up HTC to focus more on its risky but promising virtual reality business, where it is winning market share. Deeper ties with the US giant might also help fend off rivals like Sony and Facebook.
Source: Global Times | 2017/9/25 21:29:49

Yuan set for stability despite short-sellers’ pessimism

In sharp contrast to widespread concern over the yuan’s depreciation in 2016 and at the beginning of this year, the currency experienced an unexpected rally in recent months.
Source: Global Times | 2017/9/24 21:51:42

Influence of Washington should never be overlooked in Sino-Indian relationship

India is committed to strengthening its partnership with Afghanistan by taking up 116 “high-impact community developmental projects” in the country. The move came after US President Donald Trump in August unveiled his new strategy on Afghanistan, in which he sought a larger role by India in reinvigorating the economy of the war-torn country.
Source: Global Times | 2017/9/24 21:50:13

Spread of ESGs could herald new global movement

An ESG is a financial product that complies with environmental, social and governance rules, and until recently it was just part of financiers’ jargon – their chat is full of short-form acronyms that many of us do not understand. But recently ESG has come into common parlance. This is good, as it represents a new global inclination to save the planet and to save ourselves from investments we do not understand.
Source: Global Times | 2017/9/24 18:43:40

Fed decision to reduce balance sheet could rock fiscal boat amid choppy waters

The Federal Reserve is sailing into uncharted waters. The US central bank will start shrinking its $4.5 trillion balance sheet next month. The timing is risky, with lawmakers set to spar again over government funding and the debt ceiling. The Fed’s portfolio downsizing will also cut the nearly $92 billion it sent to Treasury last year, adding to budget pressures.
Source: Global Times | 2017/9/24 18:43:39

Rise of retail industry in India can draw on experience of China consumer sector

India has replaced China as the top retail investment destination, the Hindustan Times reported recently, citing AT Kearney partner Subhendu Roy. This is not necessarily a bad thing, if the growth of the retail sector in India can be the glue that increases the closeness of Sino-Indian relations.
Source: Global Times | 2017/9/21 22:23:39