24 January 2018

Macro Economy

  • WTO director-general Roberto Azevedo urged members to do some “real soul searching” about the way forward and realize they cannot get everything they want. Photo: Reuters

    WTO meeting ends in stalemate

    Dec 14, 2017 8:34am
    The World Trade Organization’s biennial meeting ended in stalemate on Wednesday after US criticism and member country vetoes, raising questions about the body’s ability to govern increasingly disputed global trade, Reuters reports. Ministers gathered in Buenos...
  • Fed chair Janet Yellen signals an all-clear for the US economy during her final press conference before her term ends in February, in Washington on Wednesday. Photo: Reuters

    Fed raises interest rates, three more hikes in 2018 seen

    Dec 14, 2017 8:10am
    The Federal Reserve raised interest rates but left its rate outlook for the coming years unchanged even as policymakers projected a short-term jump in US economic growth from the Trump administration’s proposed tax cuts, Reuters reports....
  • Last year’s policy mix of credit/fiscal stimulus combined with supply-side constraints effectively eliminated the threat of deflation and lifted China’s all-important housing sector.

    Emerging markets review: Differentiation but few surprises

    - Dec 12, 2017 12:26pm
    Emerging markets in 2017 were marked by relatively fewer surprises compared with recent years. The global upturn in trade and production lifted growth beyond last year’s expectations, but emerging markets were largely in line with the broader,...
  • China's current policy tightening is aimed at lowering growth rates and restructuring, rather than reacting to stagflation. Photo: Reuters

    Drivers behind the change in China’s macroeconomic policies

    - Dec 11, 2017 9:58am
    Market participants have been watching closely how the “new era” referenced by President Xi Jinping at the 19th Party Congress will affect government policy. With a lesser emphasis on GDP growth target, does that mean the...
  • Global market liquidity remains abundant as Europe and Japan are still pumping money into the market while US tightening pace remains moderate. Photo: Reuters

    Global economic outlook remains positive

    - Dec 8, 2017 12:09pm
    At this time of the year, I’ll give my 10 predictions for 2018, covering the macro economy, interest rates, currencies, stock markets and housing markets over next three weeks. For next year, the global economic outlook...
  • China’s credit-to-gross domestic product ratio is very high by global standards and consistent with a high probability of financial distress, the IMF said. Photo: Xinhua

    China growth objectives clash with financial stability goal: IMF

    Dec 7, 2017 2:30pm
    China should prioritize financial stability above development goals, as pursuit of regional growth targets and helping firms avoid heavy job losses had led to a surge in debt, particularly at local government level, the International Monetary...
  • China's central bank is stepping up efforts to prevent risks in the financial system. Photo: Bloomberg

    China to place top priority on risk control

    - Dec 5, 2017 11:18am
    The People’s Bank of China recently unveiled some guidelines aimed at curbing financial risk in the asset management industry. The impact of the new rules will gradually be felt in the market. The nation’s asset management...
  • President Donald Trump is trying to lure US multinationals to repatriate their profits to the US with a preferential tax rate of 10 percent. Photo: Reuters

    Is US tax overhaul good or bad for Hong Kong?

    - Dec 5, 2017 8:00am
    US President Donald Trump has scored his first big legislative victory — US senators have passed a sweeping tax overhaul. Under the new tax code, the corporate tax rate will be permanently lowered from 35 percent...
  • Venezuelan leader Nicolas Maduro speaks during a weekly radio and TV broadcast in Caracas on Sunday. Photo: Reuters

    Venezuela to launch oil-backed cryptocurrency: Maduro

    Dec 4, 2017 8:44am
    Venezuela plans to launch a cryptocurrency backed by oil reserves and gold in a bid to shore up its economy and overcome US-led financial sanctions. “Venezuela will create a cryptocurrency” backed by oil, gas, gold and diamond reserves,...
  • A decision to deny 'market economy' status to China will give the US wider discretion to impose higher duties on Chinese goods. Photo: Bloomberg

    US rejects China bid for ‘market economy’ status

    Dec 1, 2017 8:10am
    The US has formally rejected China’s demand that it be treated as a “market economy” under global trading rules, a move likely to add to tensions between the two powers, the Wall Street Journal reports. The Trump...
  • US consumer confidence is close to a 17-year high. Photo: Reuters

    Positive economic data sets stage for 2018

    - Nov 28, 2017 11:51am
    Global economic data continues to impress, US consumer confidence has hit new highs, China’s economy has stabilized, and the country is focusing on upgrading its economy. The positive economic data sets the stage for 2018. In...
  • 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...

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