Chinese Economics Thread


Bellum_Romanum

Senior Member
Registered Member
can you pls post the text or archive it. thnx.
From the article:

Things looked bad for China Telecom after it was kicked out of New York markets in January. Former US president Donald Trump, who deemed China’s mobile carriers to have Chinese military links, banned US investment and forced a delisting. This now looks like a boon.

Since China Telecom’s ejection, shares of other US-listed Chinese companies have been hammered as Beijing cracks down on domestic companies listed overseas. Ride-hailing group Didi is still suffering. Meanwhile, shares of China Telecom, which also has a listing in Hong Kong, are up more than 50 per cent this year. With a market value of $33bn, it has received regulatory
Please, Log in or Register to view URLs content!
to raise $8.4bn in Shanghai.

The listing, set to be world’s biggest this year, is well timed and sets the stage for other Chinese groups planning to return to the mainland. China Telecom’s choice of Shanghai as its primary listing signals that Hong Kong may not be the default for companies forced out of New York. As a household name, it should also boost retail investor appetite for mainland listings, which have totalled $43bn this year.

An investor shift out of local Chinese tech stocks is looming. Companies are running out of options to protect profits in the face of antitrust crackdowns. Regulators are reportedly weighing potential penalties for Didi that range from fines to the suspension of certain operations.

That should mean higher demand for safer, defensive sectors less likely to come under scrutiny by authorities. More funds would also be available. The trend is already in evidence. Two new mainland listings, an apparel maker and a local publisher, rose by their daily limit of 44 per cent.

State-owned China Telecom fits the bill. It is growing, adding 43m new users this year — the most among local companies. Even after this year’s gains it trades at 9 times forward earnings, in line with global peers.

US delistings of Chinese companies may have provided them with an early start on the path towards stability.
 

DarkStar

Junior Member
Registered Member
It's not enough for DiDi to just get away with fines; what they did was basically collude with the enemy (anglo america) for profit (NY stock exchange listing); the board members knew that they were a potential national security hazard allowing anglo american spies and their tech cold warriors access to the private data of billions of Chinese (can u imagine zuckerberg drooling over all of that Chinese market data?!)- especially in light of the Trump years with Pompe- and yet the DiDi leadership persisted out of greed, or out of a slavish desire to get in good with the anglo american elite like TikTok's former CEO.

There should be a national security investigation by the MSS into the board of DiDi for such obvious collusion with foreign enemies.
 

WTAN

Junior Member
Registered Member
It's not enough for DiDi to just get away with fines; what they did was basically collude with the enemy (anglo america) for profit (NY stock exchange listing); the board members knew that they were a potential national security hazard allowing anglo american spies and their tech cold warriors access to the private data of billions of Chinese (can u imagine zuckerberg drooling over all of that Chinese market data?!)- especially in light of the Trump years with Pompe- and yet the DiDi leadership persisted out of greed, or out of a slavish desire to get in good with the anglo american elite like TikTok's former CEO.

There should be a national security investigation by the MSS into the board of DiDi for such obvious collusion with foreign enemies.
Thats right......the moment DiDi got listed in the NYSE, it became a Foreign Owned Company operating in China.
Its natural that it is scrutinised for National Security Reasons as it has access to private data of Chinese Citizens.
A Chinese company operating in the US with access to such sensitive data would come under similar scrutiny. In fact it could be banned from operating altogether in the US.
The only way DiDi could normalise its operations in China once again might be to De-List from the NYSE in a few years time and Re-list in either Shanghai or Hong Kong.
 

Strangelove

Junior Member
Registered Member
Please, Log in or Register to view URLs content!

The Chinese yuan is on course to become a much more influential part of the global financial system with almost a third of central banks planning to add the currency to their reserve assets, a closely followed survey showed on Wednesday.

The Global Public Investor survey, published annually by the London-based OMFIF think tank, showed 30% of central banks plan to increase yuan holdings over the next 12-24 months, compared with just 10% last year.

It comes despite the differences between Western governments and China on the global stage. The yuan's rise will almost certainly be a global trend, but may be especially strong in Africa where almost half of central banks are planning to increase their yuan reserves.

Other eye-catching findings showed that 75% of central banks now thought monetary policy was having excessive influence on financial markets, although only 40% thought these policies needed to be actively reconsidered.

In stark contrast to the yuan, 20% of central banks plan to reduce their holdings of the U.S. dollar over the next 12-24 months and 18% plan to reduce their euro holdings.

Some 14% also want to cut their holdings of euro zone sovereign debt in what could be interpreted as a response to the European Central Bank's deeply negative interest rates.

The report also showed that only 59% of central banks would be willing to use more than 30% of their reserves in the event of a serious currency shock, while 45% of pension funds now invested in gold, well up from 30% in last year's survey.

It estimated that central banks, sovereign wealth funds and public pension funds control a record $42.7 trillion worth of assets. Central bank reserves alone rose $1.3 trillion last year to new high of $15.3 trillion.

The report also showed the dramatic impact COVID-19 and the lower-for-longer interest rate outlook was having.

Trends in diversification – to boost or maintain returns, or to incorporate a more sustainable investment approach – are accelerating.

SUSTAINABILITY

In their search for yield, close to 30% of global public investors - central banks, sovereign wealth funds and public pension funds - will reduce their exposure to developed market sovereign bonds, while more than 20% plan to buy more emerging market government debt.

Just over a quarter of central banks also plan to expand their corporate bond holdings and 21% will increase their allocations towards equities.

It is likely to add to the concerns the central banks themselves have that experimental monetary policy, such as negative interest rates and mass stimulus programmes, are exerting excessive influence on financial markets.

"The way central banks are intervening in the market produces substantial changes to the prices of some assets and can lead to financial bubbles," one unidentified central bank respondent cited in the report said.

GPIs are also increasing demand for sustainable assets and becoming more active investors. Some 92% of central banks invest in green bonds and 21% already in sustainable equities. Around 65% of central banks plan to add to their green bond holdings, up from 45% last year.

One in 10 central banks also said that sustainability was now their joint-most important institutional priority, although 50% still did not explicitly implement environmental, social and governance considerations in their portfolios.

"There has definitely been an acceleration (towards ESG) due to COVID," OMFIF's Chief Economist Danae Kyriakopoulou told Reuters.

"At the beginning (of the pandemic), we thought there would be a focus on the short-term, the quick boosts to recoveries. But actually there has been this realisation that our financial systems are so vulnerable to things outside the financial world"
 

Chish

Junior Member
Registered Member
I like CCP and how it is proactive but as someone who lives in a country where we have free flow of information, the opaque nature of how it operates doesn't do it any favors in the international scene. It gives the anti China voices ammunition and China loses control of the narrative.
More like the West hate China way of governance and expect China to follow their standards. This paper is based only on their view, nothing on China's side. Not a balanced article. People in the West always think China fails because China do not conform to their opinions. While the Chinese think their present system works better for China ( with records to prove). Chinese private enterprise will continue to expand regardless how negative the western narratives are.
 

Kaine

Junior Member
Registered Member
So I have read more on the private tutoring education issue in China and I kinda agree on China's stance on this.

The only worrying thing is that by kicking out will reduce innovation on the education system. Yes yes I know that the pressure is too much for the students to handle but a middle point should be reached if possible.

China's private tutor education sector is very innovative. I am actually calling it more of a high-tech industry than a "normal" old school educational industry.

Maybe a middle point would be kicking out private enterprises on after class tutoring and instead use the public schools themselves to buy services from them in order to monitor the student's homework.

In this way the companies will be beholden to the gov and wont take extra time from the school as the school homework for the students would be integrated on their platforms

Then give the freedom to multiple schools districts (city-wide) to buy or use their "favourite" private company in order to create competition in the private and public sector.

IMO the key point is instead of having separate homework between school homework and private tutor companies, to merge these together in order to take less time and be more efficient. So that the only homework a student does is for the school and nothing else
 

Chish

Junior Member
Registered Member
@Hendrik_2000 correct bro, don't let other judge you, just do it and let your result and performance be the basis, its our owned craving that needed to be satisfied not theirs. Bro that dream (Chinese dream) needs a lot of hard work and toil, obstacle that need to overcome, it may shattered our hope but its up to us to decide.

I think all of us here had experience some sort of discrimination, people putting you down based on your status and race. It hurts but for me I used it to improved myself and become a better person, that kind of experience is what China had been experiencing now. Adversity brings out the best and greatness in one person, again sorry for the rant, I've been emotional this past few weeks after watching to many Romantic Anime....lol
I thought Anime is only for kids and dirty old men. LOL
 

Top