26 May 2017

Macro Economy

  • Hong Kong's financial secretary, Paul Chan, has taken issue with Moody's move to cut the territory's credit rating. Photo: HKEJ

    Hong Kong disagrees with Moody’s downgrade

    May 25, 2017 3:41pm
    Hong Kong’s finance chief said on Thursday that he strongly disagrees with Moody’s decision to cut the territory’s credit rating following a sovereign debt downgrade on China. The agency’s decision to “mechanically downgrade” Hong Kong’s local...
  • China's planned reform program is unlikely to prevent a rise in economy-wide leverage, says Moody's. Photo: Bloomberg

    Moody’s downgrades China rating amid debt worries

    May 25, 2017 8:44am
    Moody’s Investors Service downgraded China’s sovereign rating for the first time in nearly 30 years, citing potential further slowdown in the economy and financial risks from years of credit-fueled expansion. The ratings agency announced on Wednesday...
  • The Federal Reserve has moved toward a consensus on a proposal to start gradually shrinking its US$4.5 trillion in holdings of Treasury and mortgage securities later in the year. Photo: AP

    Fed minutes signal officials ready to raise rates again soon

    May 25, 2017 8:41am
    Federal Reserve officials expected at their policy meeting this month that it would “soon be appropriate” to raise short-term interest rates, a signal the U.S. central bank could move in June at its next gathering, the...
  • Malaysian Prime Minister Najib Razak (left) meets Chinese property tycoon Wang Jianlin in Beijing, The two discussed the Bandar Malaysia project. Photo:

    Bandar Malaysia project shows realities of One Belt, One Road

    - May 19, 2017 12:25pm
    The recent Belt and Road Summit held in Beijing is considered China’s biggest diplomatic event since 1949. But holding a successful meeting is one thing, making it happen is another. For example, the Bandar Malaysia project,...
  • The central bank's latest move is seen as part of Beijing's efforts to ease investor jitters over its recent campaign to rein in speculative investing fueled by debt. Photo: Bloomberg

    China central bank pumps US$24.7 bln into financial system

    May 17, 2017 9:04am
    China’s central bank made its biggest one-day cash injection into the financial system in nearly four months. The Wall Street Journal said the move is part of Beijing’s efforts to ease investor jitters over its recent...
  • It is said that Chinese President Xi Jinping (above) is keen to leave his legacy on the economic front through the promotion of the Belt and Road plan. Photo: Reuters

    Belt and Road plan: What has been achieved after four years?

    - May 16, 2017 9:07am
    China put forward the grand Belt and Road initiative in 2013. Back then, it was considered overly ambitious and vague. Four years on, the bad news is there has not been much progress. But at least,...
  • Heavy machinery maker Sany Heavy gets 70 to 80 percent of its overseas orders from countries along the Belt and Road routes. Photo: Xihuashe

    Belt and Road Initiative is not just about infrastructure

    - May 12, 2017 4:31pm
    Nearly 30 world leaders will be attending the Belt and Road Summit in Beijing on May 14-15. Chinese President Xi Jinping first put forward his grand vision, now known as the Belt and Road Initiative, at...
  • US Commerce Secretary Wilbur Ross said the deals will help reduce the massive US trade deficit with China. Photo: Reuters

    US, China reach deals on access for beef, financial services

    May 12, 2017 12:49pm
    The United States and China will expand trade in beef and chicken and increase access for financial firms, as part of a plan to reduce the massive US trade deficit with Beijing, US Commerce Secretary Wilbur...
  • Foreign trade is expected to face a better environment in 2017 compared with the past two years, the Ministry of Commerce said. Photo: Xinhua

    China’s April exports, imports rise less than expected

    May 8, 2017 1:03pm
    China’s exports and imports rose in April but missed analysts’ expectations, as domestic and foreign demand faltered and commodity prices fell. China’s April exports rose 8.0 percent from a year earlier, missing analysts’ expectations, while imports...
  • The People's Bank of China has been trying to reduce leverage by gradually raising borrowing costs. Photo: Bloomberg

    China deleveraging bid erases US$500 bln from stocks, bonds

    May 8, 2017 8:33am
    China’s stepped-up campaign to clamp down on financial leverage has erased at least US$453 billion from the value of Chinese stocks and bonds since mid-April, Bloomberg reports. The move has also resulted in the cancellation of US$21...
  • Far-right candidate Marine Le Pen, although far behind her centrist rival Emmanuel Macron in the polls, could still win the French presidential election. Photo: Reuters

    Risk from French presidential election still there

    - May 4, 2017 4:45pm
    Emmanuel Macron and Marine Le Pen will face off in the second round of France’s presidential election on May 7. A recent poll shows Macron has a support rate of 59.8 percent, 19 percentage points higher...
  • Mrs. Yeung (left), boss of Wing Lai Yuen restaurant and Chan Yue-Kwong (right), former head of Chinese fast-food chain Cafe De Coral share their family business succession experiences in a gathering. Photo: HKEJ

    Challenge of succession for family-run businesses

    - May 4, 2017 2:59pm
    Many family businesses and entrepreneurs in Hong Kong are facing the challenge of wealth succession. Hong Kong’s economy started to take off in the 1960s, and many of the first-generation patriarch or even the second generation...
  • The Federal Reserve is on course for two more rate hikes this year. Photo: Reuters

    Fed holds interest rates steady, downplays economic weakness

    May 4, 2017 7:42am
    The US Federal Reserve kept interest rates unchanged on Wednesday and downplayed weak first-quarter economic growth while emphasizing the strength of the labor market, Reuters reports. It is a sign it is still on track for two...
  • ASEAN as a group is now Hong Kong's second largest trading partner. Photo: Reuters

    Why Singapore doesn’t want to see a HK-ASEAN free-trade deal

    - Apr 27, 2017 9:39am
    Following the handover by Britain in 1997, Hong Kong has been seeking free-trade agreements (FTAs) with various countries and regions. However, progress has been sluggish over the years, As of now, the city has inked FTAs...
  • Premier Li Keqiang last week unveiled a new round of tax cuts worth 380 billion yuan. Photo: Reuters

    China tax cuts to inject new energy into equity markets

    - Apr 26, 2017 5:20pm
    Hong Kong’s stock market regained its momentum last week after consolidating for a while in mid-April. Was the strong performance spurred by investor relief over the results of the first round of the French presidential election,...
  • China's proposal is unlikely to get the required unanimous support of the 164 WTO members including the United States. Photo: Reuters

    China wants revamp of dumping rules

    Apr 25, 2017 8:29am
    China is proposing tighter rules on when countries can impose anti-dumping and anti-subsidy tariffs, saying their use was rising and that such charges were often misused and distorted international trade, Reuters reports. In a filing published...
  • Traditionally highly reliant on heavy industries and resources, northeast China is one of those areas desperately needing new demonstration zones to revitalize the local economy. Photo: Reuters

    The role of China’s demonstration zones

    - Apr 24, 2017 3:37pm
    China has a large number of old cities that are struggling to find ways to rejuvenate their local economies. The National Development and Reform Commission, the Ministry of Industry and Information Technology and three other government...
  • The AIIB and the World Bank have co-financed five projects, supporting power generation in Pakistan, a natural gas pipeline in Azerbaijan, and projects in Indonesia to rebuild slums, improve dam safety and develop infrastructure. Photo: Reuters

    World Bank Group, AIIB agree to deepen cooperation

    Apr 24, 2017 8:36am
    The World Bank Group and the China-led Asian Infrastructure Investment Bank have agreed to deepen their cooperation with a framework for knowledge sharing, staff exchanges, analytical work, development financing and country-level coordination, Reuters reports. The memorandum...
  • China is the largest national producer of steel and makes far more steel than it consumes, selling the excess output overseas, often undercutting domestic producers. Photo: Reuters

    Trump orders national security probe into cheap China steel

    Apr 21, 2017 8:03am
    US President Donald Trump launched a trade probe against China and other exporters of cheap steel, raising the possibility of new tariffs, Reuters reports. Citing concerns about national security, Trump made the announcement on Thursday at...
  • While millennials prefer autonomy, a survey found that Gen Zers value job security and are more likely to stay with a company longer. Photo: Bloomberg

    Paving the hiring road for Generation Z

    - Apr 20, 2017 3:01pm
    Just as companies, marketers and recruiters thought they were starting to understand millennials and their unique characteristics – a new demographics’ coming-of-age is set to see more changes in 2017. How different can the two generations...

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