China Press Review – June 16, 2017

Press review

As America’s Trapped In Ideological Civil War, China Advances Economy
How much economic legislation, after all, has been passed under President Trump? Nothing truly consequential. China’s various government departments have passed hundreds of minor measures and several major economic measures
www.forbes.com

Commentary: China remains calm in face of U.S. rate hike
With a growing capacity to better manage potential shocks to its economy, a calm and watchful China is expected to astutely handle the impact of the latest U.S. interest rate hike.
news.xinhuanet.com

China’s holdings of U.S. Treasuries rise to six-month high
China’s holdings of U.S. Treasuries rose for a third straight month in April, reaching the highest in half a year amid signs the economy is stabilising.
www.scmp.com

China has world’s second largest stock of assets
China has the worlds’ second-largest stock of public pension funds, sovereign wealth fund and central bank assets, according to a new report. Such Chinese banks and funds control $4.2 trillion in assets, around 12 percent of the world’s total.
www.chinadaily.com

Coronado: China Key to Global Economy, Real Estate
Economist also notes that US rate rise likely to be slow based on high levels of debt.

Coronado: China Key to Global Economy, Real Estate

The Chinese economy: it’s about debt
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.” These scenarios, developed by the economist Ludwig Mises, seem dire. Will they apply to China?
www.gisreportsonline.com

Can China really rein in credit?
China’s regulators, it seems, are on the attack. Guo Shuqing, chairman of the China Banking Regulatory Commission, announced recently that he’d resign if he wasn’t able to discipline the banking system. Under his leadership, the CBRC is stepping up scrutiny of the role of trust companies and other financial institutions in helping China’s banks circumvent lending restrictions. The People’s Bank of China has also been on the offensive. It has recently raised the cost of liquidity, attacked riskier funding structures among smaller banks, and discontinued a program that effectively monetized one-fifth of last year’s increase in lending.
thestandard.com

WHY CHINA’S CREDIT RATING WAS CUT
With monetary policy largely hamstrung by the potential risk of triggering capital outflows, the responsibility for maintaining high growth rates over the coming years falls to China’s fiscal policy.

Why China’s Credit Rating Was Cut

China’s Central Bank Makes Largest Single-Day Cash Injection in Five Months
A day after the U.S. Federal Reserve tightened monetary policy, China’s central bank effectively loosened, in a move that suggests Chinese authorities are now more concerned about financial turmoil inside the country than money flowing out of it.
www.foxbusiness.com

Tencent outspent Baidu, Alibaba in tech mergers and acquisitions
China’s biggest operator of mobile games and social network has spent US$62.5 billion since 2012 in acquisitions, outspending Baidu and Alibaba.
www.scmp.com

China applying for more patents than ever before as companies push to innovate, protect brands
As more and more Chinese companies are relying on technology innovation to fuel their growth and profitability than ever before, it’s important that they possess a clear strategy for managing and protecting their intellectual property rights as they expand overseas.
www.scmp.com

Why Chinese Carriers Are Betting Big On 5G
5G standards are expected to provide wireless internet speeds that are as much as 40 times as fast as 4G. Although the technology is still in its early stages, and global standards are in the process of being finalized, Chinese wireless carriers have been taking the opportunity more seriously. Mobile data adoption in China has been soaring (the country’s 4G subscriber base was up by ~55% year-over-year as of April) amid increasing digitization of the economy and also due to the government’s push to improve internet connectivity and reduce pricing as it looks to gradually shift the economy from manufacturing towards services.
www.forbes.com

Chinese bike-sharing firm Mobike successfully closes $600m funding round
“We will accelerate the pace of global expansion, and our new target is to be in 200 cities by the end of this year,”

Chinese bike-sharing firm Mobike successfully closes $600m funding round

China’s Graft Watchdog Turns its Focus on Corporate Moguls Linked With Former Regimes
China’s anti-corruption investigators seem determined to hit hard those corporate moguls who are closely attached to the supreme power of former regimes. Besides, some companies that have been rumored to have grown big by sticking to the former regimes are reportedly being very careful not to upset the anti-corruption investigators. If this is true, a dramatic change might take place in the Chinese economy.
www.huffingtonpost.com

Anbang’s Sales Dry Up in New Challenge for Chinese Insurers
Data released days after Anbang’s chairman was detained by the police shows sales of insurance policies and investment products virtually stopped in April.

Chinese banks told to stop business dealings with troubled insurer Anbang, source says
Anbang Insurance Group, whose chairman has been detained amid a police investigation, faces an added challenge as authorities asked banks to suspend business dealings with the insurer, according to a person with knowledge of the matter.
www.scmp.com

China removes 27 restrictions for foreign investment in free-trade zones
China has removed 27 restrictions in its newly issued negative list for foreign investment in its free-trade zones, its cabinet said on Friday in a notice.
www.reuters.com

China Foreign Direct Investment Drops for Second-Straight Month in May
China’s foreign direct investment decreased for the second straight month in May, underscoring the challenges Beijing faces in attracting foreign businesses, official data showed Thursday.
www.foxbusiness.com

Cyber law creates hurdle to Chinese internet companies’ growth
asia.nikkei.com

Chinese e-commerce adapts to new consumption trends
– As Chinese consumers become increasingly affluent and sophisticated, the country’s e-commerce companies are catering to new consumption patterns to grab a larger market share. Yanxuan, an e-commerce site under Chinese internet company NetEase, offered a special deal for the June 18 shopping festival: customers can enjoy 20 percent off for the first three items they buy, but no discount will be given for any extra purchase. They want to concentrate on the quality of purchases not just the volume.
www.chinadaily.com

5 SURPRISING TRENDS IN CHINESE CONSUMPTION
Chinese consumers are known to be prolific spenders, but what is less known is what they’re buying. These days, that spending is as much about lifestyle as it is basic needs.
www.alizila.com

Alibaba beefs up services while eyeing overseas users
asia.nikkei.com

China, ADB establish green financing platform to curb air pollution
A green financing platform jointly supported by China and the Asian Development Bank (ADB) was launched Friday to help fight air pollution in the Beijing-Tianjin-Hebei region and its neighboring areas.
www.china.org

China still ‘economic hope of the world’: former premier of Aussie state
John Brumby, currently serving as the chairman of the Australia China Business Council, spoke to Xinhua on the sidelines of a national forum in Canberra on Thursday that with the G20 on the horizon, the current global economic situation is “sluggish”.
www.chinadaily.com

Will China’s Belt and Road Projects Ease Disputes in the Middle East?
Experts say the dispute between Qatar and its Gulf neighbors will cause problems for Belt and Road trade deals in the region. Projects for the initiative stretch across 65 countries in Asia, Africa and Europe.
learningenglish.voanews.com

China’s Real Estate Mirage
Unaffordable properties have become a potent symbol of thwarted economic hopes and dwindling social mobility.

China’s sharing economy charges, pedals and bounces into overdrive – and it’ll even keep you dry if it rains
30 bike-sharing apps launched already, with a dozen players fighting it out in the smartphone power bank sharing market, and six more dedicated solely to sharing umbrellas
www.scmp.com

As Trump Bets on China’s Help on North Korea, Aides Ask: Is It Worth It?
China’s failure to tighten pressure on its neighbor has left the Trump administration with few good options in dealing with the North Korea crisis.

What Americans don’t get about China
In China, almost every major city has a subway, new, clean, and graffiti-free. Even though most riders are Chinese, the speaker system makes announcements in both Mandarin and British-accented English. At each stop, passengers are reminded to “mind the gap” between the platform and train.
www.ecns.cn/2017/06-16/261740.shtml

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Alain Gillard
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