News

  • London palates experience Bric wines

    Delegations from Brazil, Russia, India and China at wine fair despite the fact that Indian wines or Chinese baijiu roll off the tongue rather less easily than, say, Burgundy and vodka - May 23

  • The wobbly panda won't fall yet

    China still has the firepower to engineer growth, something the country badly needs in a year of fraught political transition, writes David Pilling - May 23

  • Domestic demand bolsters south-east Asia

    Rising wages and strong consumer spending fuel hopes that region be able to avoid impact of falling growth in China, India and Europe - May 23

  • Lenovo confident of growth in China

    Computer maker confident that continued growth of its home market will more than offset an expected fall in corporate orders from the west - May 23

  • China's exporters look closer to home

    Many exporters in southern China are looking to the domestic market as overseas orders plummet and costs rise - May 23

  • Junk bonds to be issued in China

    Corporates will be allowed to issue high-yield debt for the first time in a bid to broaden financing streams, under a pilot scheme starting next month - May 23

  • World Bank trims China growth to 8.2%

    Bank calls on Beijing to consider tax cuts and increased welfare spending to spark domestic consumption in the world's second-largest economy - May 23

  • Reviving Beijing's economic miracle

    Obfuscating data is never a good way to build confidence in an economy. What China should do instead is to find ways to reinvigorate its economy - May 22

  • China buys Treasuries directly from US

    The largest foreign holder of US government bonds has been bypassing Wall Street banks at monthly auctions and buying paper directly - May 22

  • China targets infrastructure investment

    China is moving to accelerate investment in major projects, according to an official newspaper report on Tuesday - May 22

  • Wanda /AMC: China goes to Hollywood

    The Chinese group will gain valuable knowhow in a deal that makes sense for both parties so long as matters such as funding fit the screenplay - May 21

  • Iron ore and coal hit by China deferrals

    Customer delays and defaults on shipments have led to prices for the commodities dropping 12% since start of April, boding ill for blue-chip miners - May 21

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For the bulls, Wednesday is so far a matter of “look away now”. Worst hit among Asian markets – all of which are comfortably in negative territory – is the Hang Seng, down more than 3 per cent by mid-afternoon.

While the main concern for investors globally might be Greece, the slow drum beat of bad news from China continues. Continue reading »

FTfm: Ewen Cameron Watt, chief investment strategist of BlackRock Investment Institute, thinks scaremongering about China’s property bubble has been overdone.

Another month, another alarming statistic from China. This month, amid all the other gloom, came the trade surplus.

It jumped from $5.3bn in March to $18.4bn in April. Not the right direction, certainly. But is there cause for alarm? And what is the long term pattern of China’s trade, anyway? Chart of the week takes a look. Continue reading »

In the run up to Hong Kong’s return to China in 1997, a favourite topic of debate was whether Shanghai would supplant Hong Kong as China’s financial centre.

Fifteen years on, the subject hasn’t lost its appeal. Last week, Chatham House revived the debate and added Taipei and the stock market in Shenzhen for good measure to the financial market beauty parade. Continue reading »

How ungrateful. Within minutes of the weak Chinese economic data last week, analysts began clamouring for policy action. The uniform prescription was for a cut to reserve requirement ratios, which promptly followed over the weekend.

But already the message seems clear: the RRR cut will do little in itself to spur growth. Continue reading »

Maybe it was all just wishful thinking. Analysts who said Chinese growth hit bottom in Q1 look to have been proved wrong, after a raft of miserable data from the world’s second largest economy showing that things are getting even worse.

Everything is falling. Continue reading »

The month-long impasse between Chinese and Philippine ships in a disputed area in the South China Sea has many unforeseen consequences. Now, the standoff over rich fishing grounds could potentially deprive wealthy Chinese consumers of the tasty but pricey Philippine bananas that used to be exported mainly to Japan. Continue reading »

We all know that China is having its Industrial Revolution on steroids: what took other countries 100 or 200 years, takes the Chinese 10 or 20. Society, the environment, human nature are all struggling to keep pace with the fact that China speed is always top speed.

But from time to time, a statistic emerges that really captures the breathtaking haste of it all. On Thursday the Shanghai statistics bureau, for example, released a survey showing that private car ownership more than tripled in central Shanghai over the past five years. Continue reading »

Whichever way you look at it, China’s latest set of trade figures is bad news. Not only did both exports and imports fall short of expectations, they missed by quite a way.

Although the first half of 2012 was expected to be a tough one, analysts say action is needed soon if the Q3 rebound many have been pinning their hopes on is going to happen at all. Continue reading »

At first sight, bad news from Beijing on Thursday for the world’s Big Four accountancy firms.

Orders from the finance ministry to hand control of their Chinese operations to Chinese citizens might appear to be a drastic threat to the way they do business.

But in fact the announcement is reasonably good news: it ends long-running uncertainty over the issue, sets a clear timetable and brings China into line with many other countries. Continue reading »

The proposal by Hong Kong’s securities watchdog to create an explicit civil and criminal liability for investment bank sponsors of new listings should be welcomed.

Yet, even if the Securities and Futures Commission gets what it wants – and that is a big ‘if’, since the proposals require a change to Hong Kong’s legislation – sponsors have little to fear. Continue reading »

It’s shopping season for China Inc. As banks in Europe and the US are forced to pare back their operations and shed assets to meet heightened regulatory requirements back home, Chinese banks are moving in.

The latest to shop abroad is China Construction Bank. According to Dow Jones, CCB, the world’s second largest lender by market value, is in talks to buy the Brazilian assets of WestLB, the troubled German bank, in a deal that could be worth $200m-$300m. Continue reading »

What’s holding back ecommerce in EMs? Two answers normally crop up: a lack of reliable internet connections and a lack of credit and debit cards.

Well, perhaps not the second one so much. According to payment processing business Worldpay, alternative payments – ie those not involving credit or debit cards – are booming. And emerging markets are at the forefront. Continue reading »

Chongqing isn’t just the world’s biggest city (depending how you measure it), one of the fastest growing places in China, and the venue for a murder mystery that is still shaking China’s political foundations. It is now reachable directly from Europe.

Finnair’s first Helsinki-Chongqing flight takes off on Wednesday, and opens a route that will operate four times a week. But is it needed? Continue reading »

The presidents of two of Latin America’s fastest growing economies are pressing the flesh in Asia this week, emphasising once again the gathering pace and importance of “south-south” trade amid gloom in the United States and Europe.

In China on Tuesday, Juan Manuel Santos of Colombia touched down for a five-day swing aimed at smoothing the way for a trade pact and greater Chinese investment in Colombian mining and agriculture. Continue reading »

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