17 January 2017

Macro Economy

  • If you have to hire new people or invest in new software and hardware for one-off or short-term projects, you might as well outsource them. Photo: mindpluckd

    Tips for outsourcing projects

    - Jan 17, 2017 4:39pm
    Business expansion is one of the sensitive periods in the business lifecycle. Every change or a decision made during this process has to be based on accurate data and any partnerships have to be made very...
  • China's credit-fueled recovery could be storing up deeper problems, the IMF warns. Photo: Bloomberg

    IMF raises China 2017 growth forecast to 6.5% on stimulus

    Jan 17, 2017 9:43am
    The International Monetary Fund (IMF) announced Monday that it has raised its forecast for China’s economic growth for this year by 0.3 percentage points to 6.5 percent on expectations of continued government stimulus. While growth has...
  • Among the uncertainties that the financial world faces this year is whether Donald Trump can deliver on his campaign promises. Photo: Reuters

    Why 2017 is not the time for investors to be brave

    - Jan 16, 2017 5:27pm
    The investment world witnessed various black swan events last year. Now, 2017 could also turn out to be a year full of uncertainties and grey swans, if not black. In Europe, UK will kick off the...
  • Li Keqiang says China will ensure the nation's economy runs smoothly and will improve the quality and efficiency of growth. Photo: Reuters

    China economy faces more pressure, global uncertainty

    Jan 16, 2017 7:44am
    China’s economy will face more pressure and problems in 2017, with changes in global politics and challenges to economic rules adding further uncertainty to the outlook, Reuters reports. Premier Li Keqiang said China will ensure the nation’s...
  • 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,...
  • Had investors sold properties based on Beijing’s pledge to rein in real estate prices a couple of years ago, they would have missed one of the biggest rallies. Photo: Reuters

    Why it’s tough to make policy-driven investment bets

    - Jan 12, 2017 10:58am
    In the old days, it was often said that the key to career success for officials is knowing what’s on the king’s mind. Investors have been applying that thinking to investing in Chinese firms. It did...
  • Donald Trump speaks during a news conference in the lobby of Trump Tower in New York City on Wednesday. Photo: Reuters

    Trump vows ‘major border tax’ on foreign-made US products

    Jan 12, 2017 8:08am
    US President-elect Donald Trump on Wednesday warned of a “major border tax” on firms that shift jobs outside the United States, echoing the threats made during his election campaign. “You want to move your plant, and...
  • Donald Trump may well understand that what he proposes will violate World Trade Organization rules, but he may also know that it will take a long time for the WTO to rule against him. Photo: Reuters

    Trumpian uncertainty

    - Jan 11, 2017 3:32pm
    Every January, I try to craft a forecast for the coming year. Economic forecasting is notoriously difficult; but, notwithstanding the truth expressed in Harry Truman’s request for a one-armed economist (who wouldn’t be able to say...
  • Consumption accounted for 73.4 percent of China's first-half economic growth. Sectors like sportswear, auto and home appliances are likely to gain. Photo: Reuters

    HK equities waiting for a clear trend to form

    - Jan 11, 2017 12:14pm
    US stocks continue to hit new highs. The financial market is waiting to see if President-elect Donald Trump will deliver on his promises after taking office. While Beijing is trying to stabilize growth and win more...
  • Xu Shaoshi, the head of China's National Development and Reform Commission, speaks at a news conference in Beijing on Tuesday. Photo: Reuters

    China vows to contain corporate debt levels

    Jan 11, 2017 8:52am
    China vowed on Tuesday to contain high company debt levels and further cut excess coal and steel capacity in the country in a bid to ensure balanced economic growth and prevent asset bubbles. Xu Shaoshi, chairman...
  • Donald Trump could offset potential gains from his promised tax cuts if he triggers a trade war with rivals such as China and Mexico. Photo: AP

    Trump’s tax cuts could boost US, global growth, says World Bank

    Jan 11, 2017 8:29am
    Donald Trump’s proposed tax cuts could goose global economic growth this year and next, the World Bank said Tuesday. That would be fresh fuel for a world struggling with stagnant trade, weak investment and rising policy...
  • 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...
  • China boosted government spending, saw a housing rally and posted record high levels of bank lending last year. Photo: Reuters

    China confident economy grew 6.7% in 2016

    Jan 9, 2017 8:34am
    China is confident it reached an economic growth rate of 6.7 percent in 2016, within a targeted range set earlier in the year, Reuters reports. Vice Finance Minister Zhu Guangyao said the economy expanded at a steady...
  • Country Garden CFO Wu Jianbin wants to devote more time to photography and writing. Photo: Bloomberg

    Senior management changes are not always bad news

    - Jan 6, 2017 5:07pm
    Given precedents like Kaisa Group Holdings (01638.HK) and Greentown China Holdings (03900.HK), key personnel changes in listed companies are usually an early sign of trouble and can easily spook investors. But some senior management reshuffles have...
  • CEFC China Energy founder Ye Jianming is close to Middle East leaders and top European politicians. Photo:

    China’s oil baron invests in Evergrande

    - Jan 6, 2017 10:12am
    In an eye-catching deal, China Evergrande Group (03333.HK) introduced eight strategic investors who will contribute 30 billion yuan for a combined 13.16 percent of the enlarged equity interest in the firm’s property unit Hengda Real Estate....
  • The large supply of yuan is a key factor behind the Chinese currency’s softness in recent years. Photo: China  Daily

    Aside from a strong dollar, what else is keeping the yuan weak?

    - Jan 5, 2017 4:30pm
    The overnight Hong Kong Interbank Offered Rate for offshore yuan, or CNH Hibor, spiked to 17.75 percent on Tuesday, the first trading session of the new year. That’s close to the peak of 20 percent in...
  • Traders see a rate hike by June as highly likely, according to prices of federal funds futures. Photo: Bloomberg

    Fed officials see gradual rate hikes

    Jan 5, 2017 8:29am
    Federal Reserve officials focused on the impact of potential fiscal stimulus during their December policy meeting, with many starting to worry that the central bank might eventually be forced to quicken the pace of interest-rate increases...
  • US non-farm payrolls data due Friday may provide further support to the greenback. Photo: Reuters

    US dollar poised for further gains

    - Jan 4, 2017 4:49pm
    Powered by a rally in the last quarter, the US dollar posted a 3.7 percent gain in 2016, helping the unit advance for the fourth straight year. More than a week into the New Year, the...
  • Companies with substantial overseas businesses, such as HSBC Holdings, might become popular targets for Chinese investors under the stock link program. Photo:  Reuters

    Why China’s clampdown on fund outflows is good for stock link

    - Jan 4, 2017 10:27am
    China’s foreign exchange regulator has tightened its control over foreign exchange purchases in a bid to curb capital outflows. The State Administration of Foreign Exchange (SAFE) is stepping up scrutiny of foreign currency purchases while pledging to...
  • The prospect of higher US interest rates and trade conflicts with Washington will have a strong bearing on China's stock markets. Photo: AFP

    2017 likely to be a year full of uncertainties and headwinds

    - Jan 3, 2017 4:50pm
    The year 2017 looks set to be dominated by uncertainties and hostile trends. First of all, the loose monetary policy over the past eight years has finally come to an end, and interest rate normalization could...

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