EMerging Equity
state-owned enterprises
Three Trends On Deck For China’s Economy This Year
China’s annual parliamentary session of the National People’s Congress kicked off last week, with Prime Minister Li Keqiang presenting the government’s report on its economic targets for 2016. The report indicates three key trends that will affect China’s economy and the direction of its macro policies this year: 1. Maintaining Growth is a Top Priority The government set … Continue reading
China Prepares To Lay Off Millions Of State Workers Amid Industrial Overcapacity
By John Ward and Peter Symonds In the lead-up to the National People’s Congress (NPC) starting on Saturday, the Chinese government has announced massive layoffs in state-owned enterprises in coal and steel. Further sackings in other basic industries are being foreshadowed in moves that will result in millions of workers losing their jobs and heightened … Continue reading
China’s Credit Rating Outlook Lowered To Negative By Moody’s
The outlook on China’s credit rating was lowered from stable to negative by Moody’s Investors Service on Wednesday as they cite a weakening of fiscal metrics, a continuing fall in foreign exchange reserves, and uncertainty about implementation of reforms. According to Moody’s, the key drivers of China’s outlook revision are: The ongoing and prospective weakening of fiscal metrics, … Continue reading
Opinion Is Divided On State Of Chinese Economy, But Not On Its Importance
It is difficult to gauge true fragility of China, but economists agree it will have profound impact on the rest of the world in 2016. By Heather Stewart It was perhaps fitting that China’s latest lacklustre industrial survey was the first fragment of financial data to greet the new year. Economists are divided about the risks … Continue reading
Next Focal Point Of China’s Stock Market: Earnings—But Can We Trust The Numbers?
By Shaomin Li, Seung Ho Park The recent stock market turmoil and the economic slowdown in China have kept analysts busy projecting where the economy is going and what the government will do. The Chinese government has also issued a number of reforms of state-owned enterprises and other aspects of the economy. However, these reforms and … Continue reading
China’s “Zombie Companies” Could Slow Economic Growth For Years To Come, Commerzbank Warns
China’s state-owned banks will support its highly indebted companies, and thus avoid a recession, however, Japan shows that keeping many seemingly “dead companies” (or “zombies”) afloat weighs on the long-term growth prospects of a country, of which China is unlikely to quickly recover, Commerzbank says. The Chinese government attaches at least as much importance to … Continue reading
How China Can Contain The Impact Of Its Economic Slowdown
By Lee Jong-Wha Pundits love debating the Chinese economy’s growth prospects, and nowadays the pessimists are gaining the upper hand. But many are basing their predictions on other economies’ experiences, whereas China has been breaking the mold on economic growth for the last three decades. So, are China’s economic prospects as bad as prevailing wisdom … Continue reading
China’s Stock Market Crash Reveals Serious Flaws In The Xi Administration’s Economic Policies
By Willy Lam The recent Chinese stock market crisis has exposed the fallacy of the Chinese Communist Party’s (CCP) contention that it is possible to seek economic development and reform without commensurate political changes. That the authorities have to use a barrage of executive fiats–including deploying the police to investigate what Beijing calls “malicious” brokers and … Continue reading
How China’s Stock Market Could Bleed Into Its Economy
By Oliver Rui Don’t bet more than you can afford. Don’t borrow to play. Don’t chase your losses. Quit while you’re ahead. If only Chinese stock market investors had followed these basic gambling rules. Seduced by dreams of getting rich quick, millions of inexperienced Chinese investors have lately been treating China’s stock market like a casino. … Continue reading
Flying Blind: Gulf Subsidies Debate Ignores Regional Realities
By Francis Wilson The ongoing debate over the fairness and transparency of state-owned enterprises (SOEs) in the Middle East intensified in March when three of America’s largest airlines entered the fray. In a 55 page white paper released to the public in April, American, Delta, and United attacked what they believed to be the unfair business … Continue reading
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