15 July 2018

Macro Economy

  • Many supermarkets in China are offering hefty discounts before the Chinese New Year to lift slowing sales. Photo: Reuters

    Deflation risk adds pressure on China to expand credit

    Feb 11, 2015 8:16am
    As China faces growing risk of a deflationary spiral, the nation’s central bank will come under further pressure to expand credit, the Wall Street Journal reported, citing economists. Consumer prices in the world’s second largest economy...
  • The Chhatrapati Shivaji railway station in Mumbai is illuminated for the recent Republic Day festivities. India expects its economy to grow 7.4 percent this fiscal year.

    India plays down China comparison as GDP poised to soar

    Feb 10, 2015 8:11am
    India’s economy is expected to grow at 7.4 percent this fiscal year, reflecting a strengthening recovery and changes in the way it calculates gross domestic product. The growth rate would also compare favorably with that of...
  • Sharply lower imports, particularly of coal, oil and commodities, produced a record monthly trade surplus of US$60 billion in January. Photo: Reuters

    China trade slump shows deepening slowdown

    Feb 9, 2015 11:45am
    Chinese exports slumped 3.3 percent in January from a year earlier while imports tumbled 19.9 percent, highlighting deepening weakness in the economy, Reuters reported Monday. The sharply lower imports, particularly of coal, oil and commodities, produced...
  • Political stability and social environment are important factors affecting executives' decision to relocate to or from Hong Kong. Photo: AFP

    More executives leaving HK than those coming in: report

    - Feb 9, 2015 9:56am
    The number of multinational company executives who relocated out of Hong Kong last year is two times more than those who moved in, according to a report by US-based UniGroup Relocation. The top three destinations, for those leaving...
  • Alan Greenspan says the Greek bailout crisis will not be resolved without the country leaving the eurozone. Photo: Internet

    Greenspan: Greece will be out of eurozone

    Feb 9, 2015 8:48am
    Former Federal Reserve chairman Alan Greenspan is predicting Greece will be forced to leave the eurozone. Greenspan said no one would be willing to give the country any more loans to bolster its economy, BBC News...
  • Debt as a proportion of GDP has risen in many nations, posing a threat to global financial stability, a report warns. Photo: Bloomberg

    Rising global debt fuels fears of another crisis

    Feb 6, 2015 11:36am
    Debt relative to gross domestic product (GDP) has risen in many nations compared to the levels prior to 2007, a situation that is prompting some experts to warn of another potential global crisis. According to consultancy...
  • Alicia Buenrostro Massieu (second from left) at the signing of the MOU on intellectual property Thursday.  Photo:HKEJ

    Mexico rail project halt temporary, diplomat says

    - Feb 6, 2015 9:33am
    The suspension of Mexico’s US$3.75 billion high-speed railway project is not indefinite but just a “temporary and domestic” measure, the country’s top diplomat in Hong Kong told EJ Insight in an interview. The move is part...
  • Mainland property markets remain in a downtrend. Photo: CNSA

    RRR reduction was inevitable as economic growth slows

    - Feb 5, 2015 5:56pm
    The People’s Bank of China announced a 50 basis point (0.5 percentage point) cut in the reserve requirement ratio for banks Wednesday, an action the central bank took amid mounting pressure to do so. The country’s...
  • Jimmy Jim, director and advocacy chair of the HKSFA, said investment professionals are worried about the long-term development of Hong Kong as a financial center because of the political uncertainty. Photo: EJ Insight

    Political instability seen as biggest risk to Hong Kong market

    - Feb 5, 2015 5:20pm
    Political instability is seen by investment professionals as the biggest risk to the local market as tensions over electoral reform persist after the Occupy protests. According to the CFA Institute’s 2015 Global Market Sentiment Survey, nearly...
  • Yanis Varoufakis, the new finance minister of Greece, says it cannot be business as usual in his country as Athens tries to rewrite the terms of a 240 billion euro bailout. Photo: Bloomberg

    ECB blocks Greek junk bond as loan collateral

    Feb 5, 2015 8:15am
    The European Central Bank will no longer accept junk-rated Greek government debt as collateral for regular central bank loans amid attempts by the new government to rewrite the terms of a 240 billion euro (US$272 billion)...
  • The People's Bank of China has cut the bank reserve requirement ratio due to weak domestic economic data as well as some external factors. Photo: Bloomberg

    China cuts bank reserve requirement to spur growth

    Feb 5, 2015 8:05am
    The People’s Bank of China (PBoC) announced on Wednesday a system-wide cut to the reserve requirements of commercial lenders, signaling new concerns about the nation’s slowing economy. The central bank slashed the reserve requirement ratio (RRR)...
  • Greece’s problems are made more difficult by the structure of the eurozone. European solidarity that must accompany loss of policy flexibility is missing. Photo: Bloomberg

    Greece needs a fresh start, not more austerity

    - Feb 4, 2015 3:25pm
    When the euro crisis began a five years ago, Keynesian economists predicted that the austerity that was being imposed on Greece and the other crisis-stricken countries would fail. It would stifle growth and increase unemployment —...
  • The PBOC doesn't want the RMB to weaken too much. Photo: Reuters

    China brings back floor for RMB to stem outflows

    Feb 4, 2015 8:34am
    The People’s Bank of China is using its official guidance rate to put a floor under the renminbi, Reuters reported. The move suggests Beijing is worried enough about growing capital outflows to resume intervention in the foreign...
  • The weaker yuan is prompting some exporters to hold on to foreign exchange instead of converting it into the local currency. Photo: Bloomberg

    China capital outflow biggest in more than a decade

    Feb 4, 2015 8:11am
    China posted a US$91.2 billion deficit in its capital and financial account for the fourth quarter of 2014, the largest in more than a decade. The figure, which covers investments, is the latest evidence capital is...
  • Central bank governor Glenn Stevens said  financial conditions are very accommodative globally. Photo: Bloomberg

    Australia cuts interest rates to record low

    Feb 3, 2015 2:18pm
    Australia’s central bank on Tuesday slashed its benchmark interest rate to a record low of 2.25 percent as it seeks to counter the deflationary impact of falling oil prices, the Wall Street Journal reported. Governor Glenn...
  • The Greek national flag (left) flies alongside the European Union flag in Athens.  The eurozone must continue to bend toward Greece, if it is not to break. Photo: Bloomberg

    What’s plan B for Greece?

    - Feb 3, 2015 9:11am
    Financial markets have greeted the election of Greece’s new far-left government in predictable fashion. However, although the Syriza party’s victory sent Greek equities and bonds plummeting, there is little sign of contagion to other distressed countries...
  • Beijing's central business district. Two Harvard scholars believe China's annual GDP growth rate will inevitably regress to less than 4 percent in the future. Photo: Bloomberg

    Three major hurdles lying ahead for Chinese economy

    - Feb 2, 2015 12:08pm
    I have a feeling that Premier Li Keqiang himself may be doubtful about his optimistic outlook for the Chinese economy in this year’s World Economic Forum in Davos. Instead, let’s turn to academic studies based on...
  • China's central bank is boosting liquidity to support economic activity, but is holding off on stronger monetary easing for now. Photo: CNSA

    PBoC remains cautious on structural easing

    - Jan 30, 2015 5:18pm
    China’s central bank has added 28-day reverse repos this week to smooth out cash demand in the run-up to Lunar New Year holidays, after it resumed 7-day reverse repos the week before. There has been net...
  • Russia's gold hoard got a tremendous boost last year when the country went on a buying spree, snapping up one-third of all purchases by central banks. Photo: Reuters

    Russia buying up gold as never before

    Jan 30, 2015 10:29am
    Russia has been buying gold in quantities not seen since the break-up of the Soviet Union. Last year, the country accounted for one-third of central banks’ gold purchases amid escalating tensions with the West and a...
  • Managing director Xuong Liu (center) says challenges remain for Chinese companies in how they manage assets acquired overseas. Photo: A&M

    Global advisory group eyes China M&A wave

    - Jan 29, 2015 6:58pm
    Global advisory firm Alvarez & Marsal (A&M) is launching a new Shanghai-based business group to capitalize on Chinese companies’ outbound mergers and acquisitions spree. Managing director Xuong Liu, who will lead the new transaction advisory group,...

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