Chinese Economics Thread


Rettam Stacf

Junior Member
Registered Member
The Alibaba Group, bellwether for Chinese consumers sentiment, reported earning today.

Alibaba sees China retail volume growing near pre-pandemic levels but stock falls amid U.S.-China tensions

  • Alibaba Group Holding Ltd. said that volume on its China retail marketplaces was back to growing at near pre-pandemic rates, but its shares dropped about 4% in Friday morning trading on a weak day for Chinese internet stocks given new fears about U.S.-China relations.
  • The Chinese e-commerce giant reported better-than-expected results for its March quarter before the opening bell, clearing a lowered bar after the COVID-19 crisis pressured its business and prompted analysts to lower their forecasts in the months leading up to Alibaba’s
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    report.
  • Chief Executive Daniel Zhang said on the company’s earnings call that Alibaba saw “signs of recovery in certain major markets starting in April” but that the business also faces “uncertainties.”
  • Among the positive points is that gross merchandise volume since the start of April has shown “year-on-year growth at a similar rate to the December quarter’s level,” Zhang said. Alibaba saw a 8% decline in revenue from its local consumer services businesses, but volume growth for the company’s food-delivery business swung into positive territory during April.

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  • Alibaba (
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    ) reported quarterly results before the market open Friday that beat estimates as total gross merchandise volume for the year hit a record $1 trillion.
  • The China e-commerce giant reported adjusted earnings of $1.30 per share, up from $1.28 a year earlier. Revenue grew 22% in local currency to $16.14 billion. Wall Street expected earnings of 85 cents on revenue of $15.1 billion. The results were for its fiscal fourth quarter for the period ended March 31.
  • The company said it expects revenue of $91 billion in fiscal 2021. But it cautioned, "It is not possible to determine the ultimate impact of the Covid-19 pandemic on our business operations and financial results."
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Gatekeeper

Captain
Registered Member
The Alibaba Group, bellwether for Chinese consumers sentiment, reported earning today.

Alibaba sees China retail volume growing near pre-pandemic levels but stock falls amid U.S.-China tensions

  • Alibaba Group Holding Ltd. said that volume on its China retail marketplaces was back to growing at near pre-pandemic rates, but its shares dropped about 4% in Friday morning trading on a weak day for Chinese internet stocks given new fears about U.S.-China relations.
  • The Chinese e-commerce giant reported better-than-expected results for its March quarter before the opening bell, clearing a lowered bar after the COVID-19 crisis pressured its business and prompted analysts to lower their forecasts in the months leading up to Alibaba’s
    Please, Log in or Register to view URLs content!
    report.
  • Chief Executive Daniel Zhang said on the company’s earnings call that Alibaba saw “signs of recovery in certain major markets starting in April” but that the business also faces “uncertainties.”
  • Among the positive points is that gross merchandise volume since the start of April has shown “year-on-year growth at a similar rate to the December quarter’s level,” Zhang said. Alibaba saw a 8% decline in revenue from its local consumer services businesses, but volume growth for the company’s food-delivery business swung into positive territory during April.

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  • Alibaba (
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    ) reported quarterly results before the market open Friday that beat estimates as total gross merchandise volume for the year hit a record $1 trillion.
  • The China e-commerce giant reported adjusted earnings of $1.30 per share, up from $1.28 a year earlier. Revenue grew 22% in local currency to $16.14 billion. Wall Street expected earnings of 85 cents on revenue of $15.1 billion. The results were for its fiscal fourth quarter for the period ended March 31.
  • The company said it expects revenue of $91 billion in fiscal 2021. But it cautioned, "It is not possible to determine the ultimate impact of the Covid-19 pandemic on our business operations and financial results."
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Good sign that things are moving in the right direction.

With stock market value. It's not an issue unless the company is trying to raise funds for investment or expansion. Otherwise, value rise and fall, it is just white noise. It is more important in the western market, because executives are judged on the performance of the market. Which give rise to short-termism.
 

muddie

New Member
The US government is blatantly waging war against Chinese Enterprise. If this trend continues to escalate, next step will be intimidation and sanction against Chinese person for the lamest reasons.

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That's the direction the Trump administration is going, so the question is what will China's answer be? I have to imagine that China is playing the waiting game to see election results before responding.

If Trump is re-elected, it will be a very rocky 4 years and China will need to retaliate in kind. If it's Biden, I imagine China would want to try and rekindle relationships and see if Biden bites.

IMO, a Trump re-election would actually benefit China in the long run. Trump's administration has been very forward and transparent in what they are planning to do and it gives China lead way to prepare. COVID has also shown how incompetent the Trump administration really is at handling big tasks and the administration's protectionism policies are driving away key allies. A rise in nationalism post COVID would further weaken the U.S. society.
 

Hendrik_2000

Brigadier
The grass is not always greener on the other side of the fence . Now they know
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Coronavirus: wealthy Chinese families say pandemic has eroded appetite for overseas schooling and investing
  • A series of interviews with affluent Chinese families find they have had their desire to emigrate, educate their children, or invest abroad damaged by coronavirus
  • Economic uncertainty, Western responses to the pandemic, as well as rising anti-China sentiment in parts of the world are causing rich Chinese to reconsider plans


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in Guangdong
Published: 12:00pm, 23 May, 2020

The coronavirus pandemic could permanently change wealthy Chinese families’ plans to send their children to study abroad or to use investment vehicles to emigrate overseas, according to a series of interviews with families in the mainland.
A mix of pandemic-based problems for China’s urban rich, including the sudden uncertainty over future incomes, the health risks of living abroad, and China’s deteriorating image in Western countries, have forced many to reconsider, if not totally give up, plans to send their kids to American or British schools, or to buy property in Canada or Australia.
“Many of us are very surprised by how poorly some advanced countries in western Europe have handled the epidemic. We always thought that both the quality of life and health in Western societies were far better than in China, but now our views have changed,” Alice Tan, who runs a tea trading firm in Guangzhou, wrote in a chat group of over 300 members.
 

Rettam Stacf

Junior Member
Registered Member
Although the article is titled The world needs pharmaceuticals from China and India to beat coronavirus, it really talks about the role China and India play in the global pharmaceutical supply chain. Interesting and informative read.
  • The pharmaceutical manufacturing supply chain involves two main stages. The first is the production of active pharmaceutical ingredients (APIs). These are the key parts of a drug which produce an effect. Such production is chemical-intensive, involving reactors for drug substance manufacture. The second stage is a physical process known as formulations production. Substances known as excipients are combined with APIs to turn a drug into a consumable form, such as a tablet, liquid, capsule, cream, ointment or injectable product.
  • For more than a decade now, China has been the largest producer of APIs in the world. The US, Europe and Japan produced 90% of the world’s APIs until the mid-1990s. But now it is estimated that Chinese manufacturers make around 40% of all APIs used worldwide and that China and India are the source of 75% to 80% of the APIs imported to the US.
  • India plays a prominent role in the formulations segment of the industry. India is the third largest producer of pharmaceuticals in the world by volume. The country’s Department of Pharmaceuticals reported that it supplies 20% of global exports of"generic" drugs.
  • India has the largest number of FDA approved plants outside the US and it is estimated to supply 40% of the generic formulations in America.
  • So now India relies on China for about 70% of its supply of APIs. And for some well known drugs, such as paracetamol, amoxicillin and ibuprofen, India is almost 100% dependent on China.
  • India’s restrictions on exporting key drugs in March (albeit later rescinded) are a worrying sign of things that may be to come.
  • In contrast to some of the doomsday fears of what might happen amid a global public health crisis, China has not yet issued any restriction or ban on export of medical goods.
  • Although often framed in the US as an unhealthy dependency on China, what is often overlooked is that China also relies on the US and major European countries for some of its medicines. In 2019, Germany was the largest source of China’s medicine imports, followed by France, the US, Italy and Sweden. Much of China’s anti-cancer drugs are imported.
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Given China's population size, she needs to expand her activities in the pharmaceutical supply chain by taking the first step in increasing her activities in the formulation stage also, following by the development of new drugs.
 

B.I.B.

Senior Member
Although the article is titled The world needs pharmaceuticals from China and India to beat coronavirus, it really talks about the role China and India play in the global pharmaceutical supply chain. Interesting and informative read.
  • The pharmaceutical manufacturing supply chain involves two main stages. The first is the production of active pharmaceutical ingredients (APIs). These are the key parts of a drug which produce an effect. Such production is chemical-intensive, involving reactors for drug substance manufacture. The second stage is a physical process known as formulations production. Substances known as excipients are combined with APIs to turn a drug into a consumable form, such as a tablet, liquid, capsule, cream, ointment or injectable product.
  • For more than a decade now, China has been the largest producer of APIs in the world. The US, Europe and Japan produced 90% of the world’s APIs until the mid-1990s. But now it is estimated that Chinese manufacturers make around 40% of all APIs used worldwide and that China and India are the source of 75% to 80% of the APIs imported to the US.
  • India plays a prominent role in the formulations segment of the industry. India is the third largest producer of pharmaceuticals in the world by volume. The country’s Department of Pharmaceuticals reported that it supplies 20% of global exports of"generic" drugs.
  • India has the largest number of FDA approved plants outside the US and it is estimated to supply 40% of the generic formulations in America.
  • So now India relies on China for about 70% of its supply of APIs. And for some well known drugs, such as paracetamol, amoxicillin and ibuprofen, India is almost 100% dependent on China.
  • India’s restrictions on exporting key drugs in March (albeit later rescinded) are a worrying sign of things that may be to come.
  • In contrast to some of the doomsday fears of what might happen amid a global public health crisis, China has not yet issued any restriction or ban on export of medical goods.
  • Although often framed in the US as an unhealthy dependency on China, what is often overlooked is that China also relies on the US and major European countries for some of its medicines. In 2019, Germany was the largest source of China’s medicine imports, followed by France, the US, Italy and Sweden. Much of China’s anti-cancer drugs are imported.
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Given China's population size, she needs to expand her activities in the pharmaceutical supply chain by taking the first step in increasing her activities in the formulation stage also, following by the development of new drugs.
It's interesting that the writer of the above article points out that China supplies about 40% of the API's while India is also big in the formulations segment

Have you heard of the book by Rosemary Gibson "China RX" I have not read the book but I heard it being promoted by China basher podcaster Leighton Smith.
In it she talks about the ignorance of the west in its dealings with China.
1/China has overwhelmed the West on multiple fronts, but specifically in the field of pharmaceuticals.
2/China could literally shut most of the world’s hospitals by pulling supply.
3/The author says the media has failed in its responsibility.
 

Rettam Stacf

Junior Member
Registered Member
It's interesting that the writer of the above article points out that China supplies about 40% of the API's while India is also big in the formulations segment

Have you heard of the book by Rosemary Gibson "China RX" I have not read the book but I heard it being promoted by China basher podcaster Leighton Smith.
In it she talks about the ignorance of the west in its dealings with China.
1/China has overwhelmed the West on multiple fronts, but specifically in the field of pharmaceuticals.
2/China could literally shut most of the world’s hospitals by pulling supply.
3/The author says the media has failed in its responsibility.
I have not read the book by Rosemary Gibson. But the article I quoted did reference her book "China Rx : Exposing the Risks of America's Dependence on China for Medicine" she coauthored with Janardan Prasad Singh.
 

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