Act now, talk later. The U.S. is refusing to resume trade negotiations with China until Beijing delivers a clear plan for tackling issues raised by Washington, such as China’s policy of forcing technology transfers and demanding user data be stored within China. The impasse could threaten a proposed meeting between President Trump and Xi Jinping, due to take place on the sidelines of the G20 summit next month. The Wall Street Journal
Heavily indebted. China’s central bank plans to provide $1.4 billion to China Bond Insurance Co, to provide credit support for private enterprises looking to sell debt. The move is the latest in a series of measures to return investor confidence in the market. Bloomberg
Bubbling stock. Chinese stocks had their best performing day in three years Monday with the CSI 300 index, which covers both Shanghai and Shenzhen, closing 4.6% up. The rally came after Vice Premier Liu He attempted to enthuse investors last week, claiming damage from the Trade War is more psychological than actual. But China has been enduring its worst rout in four years, which has wiped $130 billion off the fortunes of China’s wealthiest tycoons. Financial Times
Changing course. Two funds linked to the Chinese government liquidated over $4 billion of assets combined this week, with no explanation. The two funds were established in 2015 to help soothe the turbulent stock market. The surprise sell-off could indicate a change in strategy for China’s ‘National Team’ of state-backed investors, tasked with stabilizing the market. Bloomberg
Assets assessed. China’s State Council issued a report on the condition of State-Owned Assets (SOAs) for the first time. SOAs in non-financial enterprises amounted to $26.4 trillion in 2017 while those in financial enterprises were at $35 trillion. China Daily
Take it to the bridge. On Tuesday, the Hong Kong-Zhuhai-Macau bridge officially opened, connecting the three cities with 24 miles of highway stretching over the sea. The bridge is part of a policy to integrate Hong Kong, Macau and Guangdong province into an economic powerhouse, called the Greater Bay Area. After years of delay, the opening was announced suddenly, leaving tour bus operators scrambling to establish routes across the bridge. South China Morning Post
Credit: Fortune
via USAHint.com
No comments:
Post a Comment