CHINA HOUSING CRISIS
China's June factory activity contracts again, services slows
China's economic indicators for June painted a challenging picture, with manufacturing activity stagnating and services slipping to a five-month low, according to an official survey released on Sunday. The Purchasing Managers' Index (PMI) remained unchanged at 49.5, below the growth threshold of 50, indicating ongoing economic struggles despite some positive signals in industrial production. Analysts noted that while exports have been a strong driver, both domestic and external demand remain insufficient to fully utilize China's manufacturing capacity, prompting calls for additional policy support to stimulate growth.
China's May industrial output misses forecasts, retail sales a bright spot
China's industrial output fell below expectations, leading to calls for fiscal and monetary policy support. Retail sales exceeded forecasts, driven by global demand.
5 world market themes for the week ahead
Central bank decisions in Britain, Switzerland, and Norway will show the rate cutting trend, while retail sales data from the US and China will indicate consumer health. Europe gears up for the Euros 2024 tournament in Germany. Investors are monitoring cocoa supply issues in Ivory Coast, Ghana, and other countries like Brazil.
G7 Summit: How G-7 nations plan to counter rising clout of Russia and China
The G-7, facing challenges from rising powers like China and Russia, grapples with economic and military limitations while navigating a shifting global landscape. Focused on protecting democracy, the group confronts issues such as defense spending, economic vitality, and trade tensions, seeking to maintain its influence and address geopolitical threats.
US National Security Adviser Jake Sullivan expected in India in June for iCET review
US National Security Adviser Jake Sullivan plans to visit India this month to discuss shared priorities with the new government. Sullivan will focus on the iCET review and the upcoming Quad Summit during his trip. Sullivan had twice postponed India trip this year due to West Asia crisis
IMF revises China's GDP to 5% this year; growth may decelerate to 3.3 per cent by 2029, says Gita Gopinath
The 5 per cent growth revision by the International Monetary Fund (IMF) is in line with the target set by the Chinese government for the world's second-largest economy which is grappling with a slowdown triggered by the crippling property sector crisis and industrial overcapacity.
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IMF upgrades China's 2024, 2025 GDP growth forecasts but warns of risks ahead
"China's economic growth is projected to remain resilient at five percent in 2024 and slow to 4.5 percent in 2025," the IMF said in a press release, adding the decision was "driven by strong first-quarter GDP data and recent policy measures".
Shanghai lifts home-buying curbs to boost property sector
Shanghai eases property buying rules amidst a real estate crisis, reducing residency requirement to 3 years and minimum down payment to 20% for commercial housing mortgages.
'Made in China' housing crisis solution may not be enough
China grapples with a colossal housing crisis, with millions of unoccupied apartments and unfinished developments, threatening its economy. Beijing's plan involves massive state intervention, buying unsold properties and converting them into social housing. However, doubts still persist about its adequacy and efficacy, raising concerns about the broader economic impact on China
Asserting its strategic choice, China backs Russia to the hilt
China supports Russia in the Ukraine conflict, defying calls for neutrality. Xi Jinping and Vladimir Putin, autocratic leaders, reaffirm their alliance during Putin's visit to mark the 75th anniversary of diplomatic relations. They strengthen military cooperation, denounce US actions, and agree on deep-space exploration, satellite navigation systems, telecommunications, and a multipolar world order.
New Taiwan president Lai hails 'glorious' democracy
Taiwan President Lai Ching-te has hailed the arrival of a "glorious era" for Taiwan's democracy and called on China to cease political and military intimidation. In an inauguration speech, Lai thanked citizens for refusing to be swayed by external forces and urged them to demonstrate their resolution to defend their nation. Lai has been described by Beijing as a "dangerous separatist" for his past comments on Taiwan's independence, but has since moderated his rhetoric.
China allocates billions of dollars to bailout its crisis-hit property sector
China has taken decisive measures to tackle the crisis in its property sector, which has been a crucial driver of its economic growth. The People's Bank of China has announced a 300-billion-yuan relending facility to support government-subsidized housing projects. Local state-owned enterprises are encouraged to purchase completed commercial homes to provide affordable housing. Commercial banks have issued significant loans for real estate development and individual housing.
Charting the global economy: US inflation eases; rescue package for China property crisis
Soft retail sales, manufacturing signal cooling demand. As Biden hiked tariffs, China's economic recovery shifted to manufacturing.
China lays out 'historic' plans to prop up its realty market
Investors hoped the measures marked the beginning of more decisive government intervention to compensate for waning demand for new and old apartments, to slow down falling prices and to reduce a growing stock of unsold homes. Since the property market began its steep downturn in 2021, a string of developers have defaulted, leaving scores of idle construction sites behind, and sapping confidence in what had been the preferred savings instrument for the Chinese population.
China unveils steps to stabilise crisis-hit property sector
China announced significant measures to stabilize the struggling property sector. The measures included allowing local governments to purchase apartments, easing mortgage rules, and committing to finishing incomplete homes. These efforts aim to address declining demand, falling prices, and a surplus of unsold properties, with the hope of reviving a sector that once contributed significantly to the economy.
China expected to announce new measures to fix property crisis, spur growth
China's housing prices dropped in the first four months of the year, while factory output increased by almost 7%. This has lead to officials planning new measures to boost the struggling property industry. The National Bureau of Statistics noted insufficient domestic demand. The State Council announced a news conference to address the property market challenges, including defaults by developers.
China to let local govt officials buy affordable housing at 'reasonable' prices
China plans to allow local government authorities to purchase affordable housing at reasonable prices, and promote the disposal of sold but difficult-to-deliver housing projects.
China considers government purchases of unsold homes: Reports
China plans for local governments to buy unsold homes to address the property crisis, with the State Council evaluating feasibility and awaiting a decision from the country's leaders.
Five dead, 33 injured as Tornado hits Southern China
Guangzhou tornado kills 5, injures 33. Level-three tornadoes damage factories. Heavy rains in Guangdong pose flood threats. Climate crisis intensifies extreme weather in China.
US committee finds China is subsidizing American fentanyl crisis
China continues to provide subsidies in the form of value-added tax rebates to its companies that manufacture fentanyl analogues, precursors and other synthetic narcotics, so long as they sell them outside of China, the House of Representatives' select committee on China said in a report.
China set to post slowing growth on housing, consumption woes
China's economy is expected to have slowed in the first quarter due to challenges in the property sector and weak consumer activity. Despite setting a growth target of around five percent for the year, analysts view this goal as ambitious. While industrial production has increased, consumption remains sluggish. The property market continues to be a concern, with falling home prices and challenges for developers. Policymakers have introduced measures to boost infrastructure spending and consumption, but more stimulus may be needed.
From overcapacity to TikTok, the issues covered during Janet Yellen's trip to China
Janet Yellen and her team wrapped up discussions in China, focusing on trade practices, money laundering, TikTok, and financial stability. While they addressed concerns like unfair trade practices and money laundering, issues like TikTok's future and financial stability cooperation remained unresolved.
Budget 2024 ammo for India to win real estate battle over injured China
Interim budget: India's budget plays a big role in strengthening the property market and supporting the Bharat Moment. The budget should focus on affordable housing and streamline clearance processes to promote growth in the residential real estate sector. It is crucial to grant industry status to the real estate sector and facilitate easier credit access. Increasing the tax rebate on home loan interest rates from Rs 2 lakh to Rs 5 lakh and providing incentives for developers and homebuyers will stimulate the affordable housing market. These measures will contribute to achieving 'housing for all' and invigorate the housing sector.
What China's EV city says about the state of the economy
Hefei, China, known for its ultramodern factories and thriving industries like electric vehicles and solar panels, is facing a decline in real estate and its devastating effects on small businesses. The city's success in nurturing technology manufacturers has led to the adoption of the Hefei model by the Chinese government, which involves using government funds to invest in manufacturers and provide attractive loans for new factories. However, the real estate market in Hefei has witnessed a significant drop in sales, leading to financial difficulties for debt-laden developers and a decline in land lease purchases from the government.
Over 230 home developers filed for bankruptcy in China last year: Report
An estimated 233 home developers in China filed for bankruptcy last year amid the economic crisis, according to the China Real Estate Association. The highest number of applications came from Zhejiang province, followed by Hunan and Guangdong provinces. The number of bankruptcies in 2023 was the lowest since 2020, but the impact on the housing market is expected to be limited.
White House's Sullivan, China's Wang to talk ties, Taiwan in Bangkok
The officials will meet on Friday and Saturday, a little more than two months after U.S. President Joe Biden and Chinese President Xi Jinping met for about four hours on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit in San Francisco. Biden and Xi agreed to open a presidential hotline, resume military-to-military communications, and work to curb fentanyl production, but remained at odds over Taiwan, which China claims as its own territory over the strong objections of the Taipei government.
China expands access to loans for property developers, acting to end its prolonged debt crisis
China has introduced new rules aimed at expanding access to commercial bank loans for property developers, allowing them to use loans secured against commercial properties like offices and shopping malls to repay existing loans and cover operating costs. These measures are part of Beijing's broader efforts to address the real estate industry crisis.
US asks China to urge Iran to curb Red Sea attacks by Houthis
White House national security adviser Jake Sullivan and his deputy, Jon Finer, discussed the issue in meetings this month in Washington with Liu Jianchao, head of the International Liaison Department of China's Communist Party, the newspaper said.
China Evergrande liquidation hearing unexpectedly adjourned to January
On Oct. 29, at the previous adjournment, Hong Kong High Court Justice Linda Chan said Monday's hearing would be the last before a decision was made whether to liquidate Evergrande in the absence of a "concrete" restructuring plan.
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