22 February 2017

Jiang Han

HKEJ columnist
  • Steel price recovery has shored up the bottom lines of Chinese steel mills, but it is adding to a structural problem within the industry.

    Don’t get over-excited about steel price rebound

    - Feb 17, 2017 3:57pm
    Commodity prices have rebounded as investors expect global economic growth to pick up steam. China’s iron ore price index surged nearly 90 percent in past one year and prices of steel products have also jumped. The...
  • More supportive policy initiatives are expected to be unveiled during the plenary meetings of the National People's Congress and the National People's Political Consultative Conference in Beijing in March. Photo: China Daily

    China equities gather momentum ahead of Two Sessions

    - Feb 10, 2017 5:30pm
    Both mainland and Hong Kong markets have become more active in recent days. Hong Kong market turnover rose to over HK$90 billion while China’s A shares saw turnover surpass 450 billion yuan (US$65.38 billion). It seems...
  • If US President Donald Trump decides to impose a 45 percent tariff on goods imported from China, it could slash China’s exports by 10 percent, experts say. Photo: Reuters

    Dark clouds over China economy: Trump uncertainties and others

    - Feb 3, 2017 4:36pm
    Two weeks on, US President Donald Trump has been doing exactly what he said he would do during his campaign. Does that mean heavy tariff on goods imported from China is about to become reality, too?...
  • Last year,  China issued the first national guidelines to pave the way for pension funds to invest in the stock market. Photo: China Daily

    China stock markets hope for pension fund boost

    - Jan 27, 2017 3:15pm
    Low fertility rate and an aging population have become major issues for China. The working-age population, or those between 15 and 59 years old, has already started to decline after peaking in 2011. The nation’s overall...
  • Movie-related business has become a core profit center for Wang Jianlin’s commercial property group Dalian Wanda. Photo: Reuters

    China’s business tycoons venture into culture industry

    - Jan 20, 2017 4:44pm
    Chinese billionaires like Alibaba’s Jack Ma and Wanda’s Wang Jianlin are venturing into the cultural business. At the moment, numerous culture-related areas such as the news industry are still off limits to the private sector. That...
  • Despite the overall robust demand for property in China, home prices edged up just marginally in northeast China amid population outflows, low private investment and a poor job market. Photo:

    Northeast China: The toughest nut to crack

    - Jan 13, 2017 5:18pm
    Northeast China, a former heavy industry hub, is in deep trouble as the country struggles to transform its economy. The three northeastern provinces — Liaoning, Jilin, Heilongjiang — used to be the heartland of China’s steel,...
  • China aims to raise gas consumption to 10 percent of its energy mix by 2020 by promoting the adoption of the cleaner fuel in the utilities sector, transportation and industrial production. Photo: Reuters

    Natural gas companies to gain as China declares war on pollution

    - Jan 9, 2017 11:15am
    Northern China has been shrouded in choking smog in recent days. The capital Beijing has kept its orange alertfor heavy pollution for over 200 hours, the longest ever. Although the government has poured enormous sums into tackling...
  • Wei Zexi died after receiving treatment at the No. 2 Hospital of the Beijing Armed Police Corps. Photo: internet

    Student death reveals China’s chaotic private hospital sector

    - May 6, 2016 6:37pm
    The furore over the death of mainland college student Wei Zexi (魏則西), who received ineffective treatment for cancer after following a link from the Baidu search engine, has sent the shares of several listed medical companies plummeting. It...
  • The availability of charging facilities is an important factor for those considering buying an electric vehicle. Photo: CNSA

    Why new-energy vehicles cannot save the car industry

    - Apr 29, 2016 4:03pm
    Transportation systems around the world have different characters. In cities with a high population density, like Hong Kong and Singapore, residents depend mainly on public transport. In European and US cities, which have lower population densities,...
  • China's high leverage ratio puts the economy at a high-risk position. Photo: Bloomberg

    China’s deleverage dilemma

    - Apr 22, 2016 6:18pm
    China has been trying to deleverage to avoid financial risks. However, given the downward pressure on the economy, the authorities appear to be starting to raise the leverage ratio again. By the end of 2015, debt...
  • Industries such as steel, which are mired in overcapacity, won't find it easy to come out of the woods in China. Photo: Bloomberg

    Will debt-for-equity swaps save China’s overcapacity businesses?

    - Apr 15, 2016 4:23pm
    China is planning a debt-for-equity swap program to help companies mired in overcapacity to lower their debt burden. Now, let us examine if the move will really prove effective in resolving the problem. First, how bad...
  • China has to resolve the issue of tax income distribution between the central and local governments. Photo: Bloomberg

    China faces a long and difficult road in tax reform

    - Apr 8, 2016 4:52pm
    China has in recent years begun reforming its tax regime in a bid to reduce the tax burden on businesses amid slowing economic growth. One of the key measures is the “business tax (BT) to value...
  • Food demand and consumption has been buoyant in China despite the weaker overall economy. Photo: Xinhua

    Food is heaven

    - Apr 1, 2016 6:50pm
    Despite the slowdown of the overall economy in China, food demand in the country has been relatively inelastic. In the first two months of this year, the nation’s food industry realized income of 565.1 billion yuan,...
  • China's aging population will bring huge business opportunities to many enterprises. Photo: Xinhua

    Aging population offers business opportunities

    - Mar 4, 2016 6:01pm
    An aging population is a heavy load for the government, but it offers opportunities for companies. By the end of 2014, 15.5 percent of China’s population was over 60 years old. The ratio will rise to...
  • China is attempting to overhaul the nation's bloated state enterprises, but the task won't be easy. Photo: Xinhua

    Corporate governance key to SOE reform

    - Feb 26, 2016 6:19pm
    China’s state assets regulator, the State-owned Assets Supervision and Administration Commission (SASAC), has disclosed implementation plans on the previously-released pilot reform initiative for state-owned enterprises (SOEs). The root cause of the problems in the SOEs is...
  • Chinese authorities may seek to shore up the property market as it will benefit sectors such as iron and steel and cement. Photo: CNSA

    How investors can prepare for key China annual meetings

    - Feb 19, 2016 2:28pm
    The 2016 National People’s Congress (NPC) and Chinese People’s Political Consultative Conference (CPPCC) meetings will be held in Beijing in about two weeks. The events will naturally set off renewed speculation in the stock market about...
  • Mainland Chinese may find it hard to believe official pronouncements on the direction of the renminbi, as in the past, the opposite of what they predicted has come to pass. Photo: HKEJ

    Why official word on RMB decline provokes skepticism

    - Jan 15, 2016 4:41pm
    The mainland stock markets are being dragged down on one side by weak investor confidence amid a decelerating economy and on the other side by overseas short sellers of the renminbi. Unlike what the government usually does...
  • The smog has affected the daily lives of Beijing residents, threatening their health and well-being. Photo: Xinhua

    Investment themes related to China’s smog

    - Dec 14, 2015 2:45pm
    Beijing recently issued its first pollution “red alert” as heavy smog shrouded the capital city.   The index for PM2.5 or airborne particles hit nearly 300 micrograms per cubic meter. Local schools were ordered closed, while companies...
  • China's property market is not out of the woods yet despite easier policies in many cities. Photo: Xinhua

    Why China may take a fresh look at the property market

    - Dec 7, 2015 11:14am
    As the Chinese government seeks new growth drivers, an existing economic pillar — real estate — has been languishing. Although central authorities have unveiled measures to help clear the property inventory, it would be difficult for...
  • China's new two-child policy could go some way in helping address the demographic and social problems confronting the nation. Photo: Xinhua

    Two-child policy: Better late than never

    - Oct 31, 2015 8:05am
    Rumors had been doing the rounds for some time that China would be discarding its decades-long one-child policy. Still, when the announcement came on Thursday after a top Communist Party meeting, it took many observers by...

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