26 March 2017

Jiang Han

HKEJ columnist
  • Rising interbank rates keep Chinese equities in check. Photo: Reuters

    Why China equities are stuck in a range

    - Mar 24, 2017 4:47pm
    The Shanghai Composite Index has been hovering around 3,200 points for more than a month, with the overall turnover of the Shanghai and Shenzhen bourses at about 500 billion yuan (US$72.53 billion) most of the time....
  • Asset bubble fears, rising inflation and capital outflow pressure are some of the factors that could prompt further tightening moves by China's central bank. Photo: Reuters

    Why investors shouldn’t be too complacent about rate prospects

    - Mar 17, 2017 4:52pm
    Hong Kong equities surged along with global markets after the US Federal Reserve announced a 25 basis points rate hike and kept its plan for two more rate increments within this year. Investors took comfort from...
  • China has realized that given the different market situations in various cities, it cannot adopt a 'one rule fits all' approach toward property controls. Photo: Bloomberg

    Why China must stick to differentiated property policies

    - Mar 10, 2017 5:33pm
    In regulating the property market, China has ended the “one rule fits all” approach and moved to differentiated policies and controls in various regions. The new approach has been applauded by property tycoons. “Houses are for...
  • Each year, some fresh major economic themes come out of the 'two sessions' in March. Deeper supply-side reform and population policy are tipped to be a major focus this time. Photo: Xinhua

    China A shares cool as ‘two sessions’ kick off

    - Mar 3, 2017 4:54pm
    China’s top two annual policy meetings have kicked off in Beijing. At the same time, speculation on sectors that might benefit from a policy boost has taken a pause, awaiting actual announcements. China’s A shares usually...
  • Resolving the local government debt issue is crucial because heavy infrastructure spending will continue to be a key growth engine. Photo: China Daily

    China takes new steps to defuse debt bomb

    - Feb 24, 2017 4:33pm
    Local government debt has always been seen as a time bomb ticking away beneath China’s economy. Central authorities have tried various ways to address the issue. In 2015, they unveiled a debt swap scheme aimed at...
  • 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...

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