Singapore’s soaring currency, economy give Lawrence Wong plenty to smile about
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Lawrence Wong, Singapore’s current deputy prime minister and minister for finance, is set to succeed Lee Hsien Loong as the city state’s prime minister on May 15. Wong will inherit a currency that has risen 40% against its major trading partners over the past two decades. Under Lee Hsien Loong, the economy has doubled in size and total assets under management have climbed to US$3.6 trillion. Total returns on Singapore government bonds have outpaced their global peers by around 16 percentage points. The city-state's stock market has outperformed the MSCI Asean Index by nearly 32 percentage points since Lee took office. However, more than half of the locally listed companies are trading below their book value, indicating a lack of high-growth firms in the small, mature economy. Wong may take steps to support local equities and increase incentives for listing companies in the Singapore market.
Trade war 2.0 looms after US actions, testing China’s economic recovery
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US President Joe Biden calls for tripling tariffs on Chinese steel and aluminium to 22.5%. The US Trade Representative initiates a Section 301 investigation into China’s maritime, logistics, and shipbuilding sectors. China responds with strong protests and vows to take retaliatory measures. China's economy grows by 5.3% in the first quarter, driven by investment and net exports. However, growth in industrial output and retail sales falls short of expectations. China's trade outlook is overshadowed by trade tensions with the EU and the US over the question of overcapacity. China aims to keep growth at 5% in 2024. Concerns include property sector investment, unemployment rates, and industrial capacity utilization. Premier Li Qiang defends China's leading position in the new energy sector. China imposes anti-dumping penalties against US propanoic acid imports. The US trade moves come ahead of a visit by US Secretary of State Antony Blinken. The trade actions could disrupt global supply chains and impact China's economic recovery.
#UschinaRelations #TradeWar #Tariffs #EconomicGrowth #Investment #Exports #Overcapacity #PropertySector #Unemployment #IndustrialCapacity #NewEnergySector #AntidumpingPenalties #GlobalSupplyChains
Trade war 2.0 looms after US actions, testing China’s economic recovery
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US President Joe Biden calls for tripling tariffs on Chinese steel and aluminium to 22.5%. The US Trade Representative initiates a Section 301 investigation into China’s maritime, logistics, and shipbuilding sectors. China responds with strong protests and vows to take retaliatory measures. China's economy grows by 5.3% in the first quarter, driven by investment and net exports. However, growth in industrial output and retail sales falls short of expectations. China's trade outlook is overshadowed by trade tensions with the EU and the US over the question of overcapacity. China aims to keep growth at 5% in 2024. Concerns include property sector investment, unemployment rates, and industrial capacity utilization. Premier Li Qiang defends China's leading position in the new energy sector. China imposes anti-dumping penalties against US propanoic acid imports. The US trade moves come ahead of a visit by US Secretary of State Antony Blinken. The trade actions could disrupt global supply chains and impact China's economic recovery.
#UschinaRelations #TradeWar #Tariffs #EconomicGrowth #Investment #Exports #Overcapacity #PropertySector #Unemployment #IndustrialCapacity #NewEnergySector #AntidumpingPenalties #GlobalSupplyChains
Exclusive | Hong Kong’s justice minister after domestic national security law: I’ll go where I’m welcome, like the Middle East, not the West
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Hong Kong's justice minister, Paul Lam Ting-kwok, has stated that he will visit the Middle East next month to strengthen exchange and cooperation between local legal professionals and their counterparts. Lam cited concerns over personal safety and whether he will be given a fair hearing as reasons for not planning to visit the West to assuage fears about the city's legal system. He mentioned the "bad experiences" encountered by other Hong Kong officials during visits to Chicago and Britain. Lam emphasized that Hong Kong could invite people to visit the city instead of going abroad to share the true Hong Kong story. No foreign sanctions have been imposed on Lam so far, but the US is preparing new visa restrictions on city officials. Lam's visit to the Middle East is part of the Hong Kong administration's focus on emerging markets in the Middle East and Southeast Asia amid China-US tensions. Lam believes that Hong Kong's quality legal service and independent judiciary make it an attractive base for investments from Middle Eastern countries.
#HongKong #JusticeMinister #MiddleEast #West #DomesticNationalSecurityLaw
Exclusive | Hong Kong’s justice minister after domestic national security law: I’ll go where I’m welcome, like the Middle East, not the West
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Hong Kong's justice minister, Paul Lam Ting-kwok, has stated that he will visit the Middle East next month to strengthen exchange and cooperation between local legal professionals and their counterparts. Lam cited concerns over personal safety and whether he will be given a fair hearing as reasons for not planning to visit the West to assuage fears about the city's legal system. He mentioned the "bad experiences" encountered by other Hong Kong officials during visits to Chicago and Britain. Lam emphasized that Hong Kong could invite people to visit the city instead of going abroad to share the true Hong Kong story. No foreign sanctions have been imposed on Lam so far, but the US is preparing new visa restrictions on city officials. Lam's visit to the Middle East is part of the Hong Kong administration's focus on emerging markets in the Middle East and Southeast Asia amid China-US tensions. Lam believes that Hong Kong's quality legal service and independent judiciary make it an attractive base for investments from Middle Eastern countries.
#HongKong #JusticeMinister #MiddleEast #West #DomesticNationalSecurityLaw
How can China remedy deflation risks without ditching long-held economic strategy?
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Persistent risks of deflation and a weakened banking sector may compromise the effectiveness of China’s monetary policy. The International Monetary Fund has urged Beijing to find new means of maintaining economic growth. S&P Global Ratings projected that the non-performing assets ratio for Chinese commercial banks would rise to 5.75% in 2026. The PBOC's monetary policy committee plans to guide large banks to play a main role in the 'real economy' while encouraging small to medium-sized banks to focus on their 'main business'. Analysts have warned of a potential liquidity trap. Yang Delong, chief economist at the First Seafront Fund, suggested that the PBOC could consider buying treasury bonds and local government bonds to boost market confidence. President Xi Jinping has called on the PBOC to gradually increase the trading of treasury bonds in its open market operations. Guan Tao, global chief economist at Bank of China International, said that more trading of government bonds from the PBOC could improve liquidity in the market. The PBOC is in a 'tricky situation' as it seeks to balance having a stable currency with a looser monetary policy. China has been battling low inflation, with its consumer price index growing by only 0.2% in 2023. China's producer price index declined in March by 2.8% year on year. Peng Wenshang, chief economist of CICC, said that one way for the PBOC to bring down real interest rates is to raise expectations of inflation through the purchase of government bonds.
#China #Deflation #EconomicStrategy #MonetaryPolicy #BankingSector #LiquidityTrap #TreasuryBonds #GovernmentBonds #Inflation
How can China remedy deflation risks without ditching long-held economic strategy?
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Persistent risks of deflation and a weakened banking sector may compromise the effectiveness of China’s monetary policy. The International Monetary Fund has urged Beijing to find new means of maintaining economic growth. S&P Global Ratings projected that the non-performing assets ratio for Chinese commercial banks would rise to 5.75% in 2026. The PBOC's monetary policy committee plans to guide large banks to play a main role in the 'real economy' while encouraging small to medium-sized banks to focus on their 'main business'. Analysts have warned of a potential liquidity trap. Yang Delong, chief economist at the First Seafront Fund, suggested that the PBOC could consider buying treasury bonds and local government bonds to boost market confidence. President Xi Jinping has called on the PBOC to gradually increase the trading of treasury bonds in its open market operations. Guan Tao, global chief economist at Bank of China International, said that more trading of government bonds from the PBOC could improve liquidity in the market. The PBOC is in a 'tricky situation' as it seeks to balance having a stable currency with a looser monetary policy. China has been battling low inflation, with its consumer price index growing by only 0.2% in 2023. China's producer price index declined in March by 2.8% year on year. Peng Wenshang, chief economist of CICC, said that one way for the PBOC to bring down real interest rates is to raise expectations of inflation through the purchase of government bonds.
#China #Deflation #EconomicStrategy #MonetaryPolicy #BankingSector #LiquidityTrap #TreasuryBonds #GovernmentBonds #Inflation
How can China remedy deflation risks without ditching long-held economic strategy?
==========
Persistent risks of deflation and a weakened banking sector may compromise the effectiveness of China’s monetary policy. The International Monetary Fund has urged Beijing to find new means of maintaining economic growth. S&P Global Ratings projected that the non-performing assets ratio for Chinese commercial banks would rise to 5.75% in 2026. The PBOC's monetary policy committee plans to guide large banks to play a main role in the 'real economy' while encouraging small to medium-sized banks to focus on their 'main business'. Analysts have warned of a potential liquidity trap. Yang Delong, chief economist at the First Seafront Fund, suggested that the PBOC could consider buying treasury bonds and local government bonds to boost market confidence. President Xi Jinping has called on the PBOC to gradually increase the trading of treasury bonds in its open market operations. Guan Tao, global chief economist at Bank of China International, said that more trading of government bonds from the PBOC could improve liquidity in the market. The PBOC is in a 'tricky situation' as it seeks to balance having a stable currency with a looser monetary policy. China has been battling low inflation, with its consumer price index growing by only 0.2% in 2023. China's producer price index declined in March by 2.8% year on year. Peng Wenshang, chief economist of CICC, said that one way for the PBOC to bring down real interest rates is to raise expectations of inflation through the purchase of government bonds.
#China #Deflation #EconomicStrategy #MonetaryPolicy #BankingSector #LiquidityTrap #TreasuryBonds #GovernmentBonds #Inflation
Doubts swirl as India aims to be a developed economy by 2047: ‘there is a big gap’
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Indian Prime Minister Narendra Modi's ruling Bharatiya Janata Party (BJP) has pledged to make India a developed economy by 2047, but economists have doubts due to stalled reforms, high business costs, and uneven development. Despite India's strong economic growth, there are legacy issues that need to be addressed for India to achieve developed nation status. To achieve inclusive growth, India needs to prioritize reforms in land and labor laws, as well as capital availability. The country's business environment remains challenging, hindering foreign direct investment. While some global manufacturers have expressed interest in opening factories in India, there are concerns over high import duties, slow government approvals, and opaque rules. India needs a clear strategy to improve efficiencies, boost manufacturing, and create jobs in order to climb up the income ladder and become a developed economy.
#India #Economy #NarendraModi #BharatiyaJanataParty #Reforms #BusinessEnvironment #ForeignDirectInvestment #InclusiveGrowth #LandAndLaborLaws #CapitalAvailability #Manufacturing #Jobs
Hong Kong developer Hang Lung to expand flagship Shanghai mall Plaza 66
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Hong Kong developer Hang Lung Properties is expanding its flagship mall Plaza 66 in Shanghai's West Nanjing Road. The expansion will add an additional gross floor area of 32,290 sq ft to the 592,000 sq ft mall, which is expected to be completed in 2026. Hang Lung aims to target China's booming luxury market and bring new luxury experiences to customers. China is set to overtake the US as the world's biggest luxury market, worth US$148 billion, in 2030. Hang Lung Properties has obtained approval from the local government for the expansion and plans to accommodate 20 new stores. The company's Plaza 66 and Grand Gateway 66 malls have seen increased spending by members, with the number of members spending more than 1 million yuan at Plaza 66 increasing five-fold in 2021 compared to 2019. Hang Lung Properties has been actively investing in China's commercial and residential real estate market since 1992 and currently derives 68% of its rental income from mainland China. The company has seven office projects and five residential projects in China. Hang Lung Properties is 60% owned by Hang Lung Group, and current group chairman Ronnie Chan Chi-chung will retire on April 26, with his son Adriel taking charge.
#HangLungProperties #Plaza66 #Shanghai #LuxuryMarket #Expansion #China
Exclusive | ‘Reform and opening are not dead’, but China ‘looks risky’ today, old hand says
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China watcher David Lampton says the current tightness of China's political system is likely to continue for the foreseeable future. The scope of reforms is narrower and the decision-making system is more tightly controlled. Reform and opening up are not dead, but the current political system is likely to remain tight. Each generation must find its own way to address challenges. China's foreign policy has greater affinity for nations the West finds problematic. China looks risky to businessmen due to larger investments, uncertain political direction, and health of foreign relations. Economic performance affects the legitimacy of all governments, including the Chinese Communist Party. Poor economic performance affects confidence in the ruling party. China's Communist Party is more present in foreign enterprises, which foreign businesses worry about. Succession plans in China are unclear, and lack of transparency can lead to power struggles. US-China relations are in a cold war period characterized by ideological differences, alliance behaviors, and military races. A victory in this cold war is an illusion, and both sides would prefer to see China evolve in a more reform-oriented way. China studies in the US have become more difficult due to restrictions on field research and access to archives. China's influence in terms of hard power and soft power is difficult to measure. Both countries are reducing direct access to each other's scholars and media. Talks between the US and China can help diminish distrust, but addressing the sources of distrust is essential. Modest steps like reopening consulates and reviving cooperation agreements can be helpful.
#China #Reform #OpeningUp #PoliticalSystem #UschinaRelations
Travel Kind: Hong Kong physiotherapists give back to local communities on their trip to Nepal
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Physiotherapists Gigi Fu Wing-chi and Sylvia Lee Wing-yi led injury prevention workshops for 15 young Nepalese women studying to become trekking guides during their week-long trip to Nepal. The young women are passionate about being trekking guides because they love the activity and want to introduce foreign travelers to the beauty of Nepal. The volunteer trip was organized by Rosina Shing Shuk-han's charity, Travel Kind, which aims to encourage Hongkongers to give back when they travel. Travel Kind worked with the Nepalese charity, 3 Summits for Nepal, to empower young women in rural areas to pursue their dreams of becoming trail guides. The trip was a unique blend of volunteering and tourism, allowing the physiotherapists to share their skills and learn about Nepalese culture. Rosina Shing started Travel Kind to promote giving back to local communities during travel.
‘Nothing to do with China’: trade body hits back over US Section 301 probes
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China's trade promotion body, CCPIT, plans to take legal action to defend Chinese shipbuilding, logistics, and maritime companies affected by the US Section 301 investigations. The investigations, launched by the US trade office, aim to determine whether Chinese trade practices are unfair and discriminatory. The CCPIT spokesperson called the probes 'unreasonable' and blamed the downturn in the US shipping industry on its own lack of competitiveness, stating that it had nothing to do with China. The Chinese commerce ministry expressed strong dissatisfaction with the US move but has not announced any retaliatory action. The USTR may take appropriate action if the investigations determine that foreign practices have unfairly affected US commerce. US Secretary of State Antony Blinken is expected to discuss unfair trade practices and industrial overcapacity during his visit to Beijing. President Joe Biden has called for tripling the tariff rate on Chinese steel and has pledged to protect American jobs from the impact of Chinese steel flooding the market.
#China #Us #Trade #Section301 #Investigations #Shipbuilding #Maritime #Logistics #UnfairTradePractices #Discriminatory #Competitiveness #Tariffs #Steel #CommerceMinistry #RetaliatoryAction #Ustr #AntonyBlinken #UnfairTradePractices #IndustrialOvercapacity #JoeBiden #AmericanJobs
‘Nothing to do with China’: trade body hits back over US Section 301 probes
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China's trade promotion body, CCPIT, plans to take legal action to defend Chinese shipbuilding, logistics, and maritime companies affected by the US Section 301 investigations. The investigations, launched by the US trade office, aim to determine whether Chinese trade practices are unfair and discriminatory. The CCPIT spokesperson called the probes 'unreasonable' and blamed the downturn in the US shipping industry on its own lack of competitiveness, stating that it had nothing to do with China. The Chinese commerce ministry expressed strong dissatisfaction with the US move but has not announced any retaliatory action. The USTR may take appropriate action if the investigations determine that foreign practices have unfairly affected US commerce. US Secretary of State Antony Blinken is expected to discuss unfair trade practices and industrial overcapacity during his visit to Beijing. President Joe Biden has called for tripling the tariff rate on Chinese steel and has pledged to protect American jobs from the impact of Chinese steel flooding the market.
#China #Us #Trade #Section301 #Investigations #Shipbuilding #Maritime #Logistics #UnfairTradePractices #Discriminatory #Competitiveness #Tariffs #Steel #CommerceMinistry #RetaliatoryAction #Ustr #AntonyBlinken #UnfairTradePractices #IndustrialOvercapacity #JoeBiden #AmericanJobs
TikTok to remove executive tasked with soothing US concerns: sources
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TikTok is preparing to remove Erich Andersen, the US-based general counsel for TikTok and ByteDance, who has led years-long talks with the American government to address national security concerns about the app's connections to China. These efforts failed to win over the government panel conducting a security review and lawmakers in Washington. The US House approved a bill requiring TikTok to be sold by its Chinese parent or face a ban in the US. Andersen is expected to exit his current role, although TikTok denies this. The divest-or-ban legislation is accelerating towards becoming law, with the Senate prepared to pass the measure next week. US President Joe Biden has already stated he would sign the legislation, mandating a sale of TikTok within a year. Andersen joined TikTok in 2020 from Microsoft.
#Tiktok #Bytedance #UsGovernment #NationalSecurity #China #Divestiture #Legislation #ErichAndersen #UsHouse #UsSenate #JoeBiden #Microsoft
China’s ‘sinking’ coastal cities at risk of floods as sea levels rise: study
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A new study warns that a quarter of China’s coastal land will sink below sea level within a century, putting hundreds of millions of people at risk of being flooded. Groundwater changes and building weight are linked to the phenomenon, and long-term control of groundwater extraction is key to addressing the issue. Around one-third of China’s population in 82 studied cities live in regions subsiding faster than 3mm a year, while 7% live in areas subsiding faster than 10mm a year. Subsidence causes ground fissures, damages buildings, and increases the risk of floods. Collaborations between policymakers, the research community, and civil engineers are needed to effectively address the issue. The study analyzed 82 major cities with populations of over 2 million people and found that 270 million Chinese people now live on sinking land, and 67 million people live in regions with rapidly sinking land. Hotspots for the issue include Tianjin and Beijing. Additionally, 22 to 26% of China’s coastal land is projected to fall below sea level by 2120 due to subsidence and rising seas, posing a serious threat to coastal populations.
#China #CoastalCities #SeaLevelRise #Flooding #Subsidence #GroundwaterExtraction