21 November 2017

Macro Economy

  • China is able to maintain economic growth momentum without excessive credit expansion and a red-hot housing market. Photo: Bloomberg

    China’s economic growth outlook sustainable amid curbs

    - Nov 15, 2017 4:22pm
    China’s broad money supply or M2 growth has slowed to a record low. Chinese authorities are stepping up property curbs. Nevertheless, the nation’s economic growth has not shown any sign of weakening, which suggests the government’s...
  • China has marked another milestone in the path to financial sector liberalization. Photo: Bloomberg

    China accelerates financial market liberalization

    - Nov 14, 2017 10:10am
    China has accelerated the opening up of its financial sector, announcing last Friday that it will ease limits on foreign ownership of banks and securities firms. It marks a big milestone, and sends a signal that authorities...
  • The limit on foreign ownership in joint-venture firms involved in the futures, securities and funds markets will be raised to 51 percent from the current 49 percent. Photo: AFP

    China lifts foreign ownership limits on financial firms

    Nov 10, 2017 4:54pm
    The Chinese government on Friday said it will raise foreign ownership limits in domestic financial firms, a long-anticipated step that grants greater access to overseas investors into the Asian giant’s financial services market, Reuters reports. The...
  • China will focus on developing advanced manufacturing, internet, big data, artificial intelligence and integrate new technologies into the real economy. Photo: Wikipedia

    19th Party Congress: What it means for the economy

    - Nov 7, 2017 12:58pm
    I have visited many mainland friends in senior financial or business positions in Beijing after the 19th Party Congress to discuss its implications. The once-in-five-years meeting typically sets the direction for future development. Interestingly, this time...
  • Pony Ma says there are more than 7,000 official CPC members among his company’s 30,000-strong staff. Photo: Reuters

    Why politics will be even more pervasive after party congress

    - Nov 2, 2017 10:54am
    A friend of mine recently raised a question about the implications of the 19th National Congress of the Communist Party of China (CPC) for the mainland as well as Hong Kong. My answer is simple: “Everything...
  • The language during the 19th Party Congress suggests that China will become more assertive on the world stage and Beijing will push its unique model of political economy. Photo: Reuters

    How policy shifts will impact China’s economy

    - Oct 31, 2017 10:41am
    China’s 19th Party Congress has concluded with Xi Jinping cementing his role as China’s most powerful leader since Mao Zedong. There is no need to restate how powerful Xi is; he is only the third leader...
  • Rather than trying to forcefully squeeze into a startup mold, companies need to invest in producing the systemic conditions for innovation to flourish. Photo: Glints

    How the startup ecosystem is set up to thrive

    - Oct 30, 2017 2:11pm
    Startups tell attractive and compelling stories that inspire a sense of endeavour and individual pursuit. They represent the unlikely hero that wins the day, the computer geek who builds a multimillion dollar empire from his parent’s...
  • China's Greater Bay Area plan is expected to create significant long-term benefits for the people and businesses of Hong Kong and the other ten cities of the Pearl River Delta. Photo: CNSA

    Tax reform suggestions in relation to the Greater Bay Area

    - Oct 27, 2017 3:16pm
    China’s Greater Bay Area plan should create significant long-term benefits for the people and businesses of Hong Kong and the other ten cities of the Pearl River Delta. Fruition of the plan is likely to see...
  • Good central bankers would make decisions based on what they believe is best for the economy, relying on evolving data, not on evolving political imperatives. Photo: Bloomberg

    The next Federal Reserve chair

    - Oct 27, 2017 9:24am
    US President Donald Trump’s administration is expected, by Nov. 2, to announce its choice, subject to Senate approval, to succeed Janet Yellen as chair of the Federal Reserve Board in February 2018. The White House has...
  • Instead of Guangzhou, Hangzhou is featured in a memorial stamp for the 19th Party Congress, along with three other top Chinese cities -- Beijing, Shanghai and Shenzhen. Photo: Wenweipo

    Will Guangzhou get left behind amid the tech boom?

    - Oct 26, 2017 12:34pm
    China’s State Post Bureau has released memorial stamps for the 19th Party Congress. The stamps feature Beijing, Shanghai, Shenzhen and Hangzhou. That has stoked debate on whether Hangzhou will overtake Guangzhou as one of the country’s...
  • Most of the wealth created since the 2008 global financial crisis has gone to the rich. Photo: AFP

    Economic growth is no longer enough

    - Oct 26, 2017 9:37am
    Macroeconomic data from the world’s advanced economies can be mystifying when viewed in isolation. But when analyzed collectively, the data reveal a troubling truth: without changes to how wealth is generated and distributed, the political convulsions...
  • The National Development and Reform Commission has indicated that the oil and gas sectors will be included in the mixed-ownership reform. Photo: Reuters

    Mixed-ownership reform to become a key investment theme

    - Oct 24, 2017 9:52am
    All eyes at home and abroad were on the Chinese Communist Party (CCP) 19th Party Congress when it kicked off last week. Chinese President Xi Jinping presented achievements over past five years and also outlined a...
  • The October 2017 IMF Financial Stability Report highlights the risk from the high indebtedness of developed countries. Photo: AFP

    Debt developments: More divergence in euro area

    - Oct 23, 2017 9:00am
    Debt-to-GDP ratios among euro area members have diverged since the financial crisis. However, for most countries interest expenses fell. This is a key risk to budget deficits if bond yields increase. We favor underweighting French sovereign...
  • Chinese President Xi Jinping wants to  build China into an advanced and modern socialist power in the 21st century. Photo: Reuters

    What investors can take away from Xi Jinping’s speech

    - Oct 20, 2017 11:10am
    Chinese President Xi Jinping delivered a three-and-a-half hour speech at the opening of the 19th party congress and the most striking thing in his report is his ideological confidence. He intends to build China into an...
  • As an example of the impact of tech disruption, the value of office-supply chain Staples has fallen by half over the past 10 years. Photo: Reuters

    Investing is a marathon, not a sprint — even during revolutions

    - Oct 17, 2017 4:40pm
    We live in revolutionary times with powerful implications of tech disruption, a shift to quantitative tightening and the populist revolt against globalization. With many markets near all-time highs and the best synchronous global growth this decade,...
  • Political shocks so far have not materially affected underlying economic activity. Photo: Reuters

    Political uncertainty not affecting economic activity

    - Oct 17, 2017 11:06am
    One question I am often asked by investors is – how can stock markets make new highs when there is so much political uncertainty in the world? On the whole, markets are coping rather well with...
  • Goldman Sachs has released a report on China’s Nifty Fifty, a selection of 50 stocks that would gain from China’s shift to a new economic structure. Photo: China Daily

    What betting on New China Nifty Fifty tells us

    - Oct 16, 2017 5:09pm
    As China’s 19th Communist Party Congress looms, many brokerages are releasing upbeat outlook on the nation’s economic growth prospects. Among them, Goldman Sachs has coined New China Nifty Fifty by selecting 50 stocks from 18 industries...
  • World Bank programs should be tailored to help transition some middle-income countries off donor assistance, says Steven Mnuchin, Photo: Reuters

    US calls for changes in IMF, World Bank policies

    Oct 16, 2017 8:51am
    The US urged the International Monetary Fund to help move trading powers away from large trade surpluses, and called on the World Bank to curtail its lending to middle-income countries, the Wall Street Journal reports. “The...
  • Haruhiko Kuroda says Japan is still a long way from achieving a 2 percent inflation target. Photo: Reuters

    BoJ to keep pursuing aggressive monetary easing: Kuroda

    Oct 16, 2017 8:39am
    Bank of Japan governor Haruhiko Kuroda said Sunday the central bank would continue its expansive monetary policy in an effort to boost inflation, the Wall Street Journal reports. “The Bank of Japan will consistently pursue aggressive...
  • Fed chief Janet Yellen expects the US economy to exceed its long-term trend during the second half of the year. Photo: Reuters

    US economic recovery warrants further rate hikes: Yellen

    Oct 16, 2017 8:24am
    The strength of the US labor market calls for continued gradual increases in interest rates despite subdued inflation, Federal Reserve Chair Janet Yellen said on Sunday. In a speech in Washington, the central bank chief also...

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