Chinese Economics Thread
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AssassinsMace
Lieutenant General
See even they will eventually believe in their own lies. How did Vietnam escape being labelled a currency manipulator? It's simple. Democratic rights and values takes a back seat to needing to gang-up others against China so that the US isn't the only one that will suffer China's wrath in retaliation. They wonder as if democratic principles actually mattered more than anything else...
China-Australia relations: miner Rio Tinto questioned by China steel association over ‘unreasonable’ iron ore prices
There is definitely some oligopolic price fixing by the iron ore cartel. If you can understand Chinese the video helps explain. While China is a producer of iron ore, it is really hungry for iron ore and is reliant on a few main countries to import iron ore. So in effect there is a cartel and they're jacking up prices since China does not have alternative options. Of course the opening of the Guinea mine will alleviate things, but China is just too hungry for iron ore. Recycling scrap metal will help, but only to a certain extent.
There is definitely some oligopolic price fixing by the iron ore cartel. If you can understand Chinese the video helps explain. While China is a producer of iron ore, it is really hungry for iron ore and is reliant on a few main countries to import iron ore. So in effect there is a cartel and they're jacking up prices since China does not have alternative options. Of course the opening of the Guinea mine will alleviate things, but China is just too hungry for iron ore. Recycling scrap metal will help, but only to a certain extent.
China's drinkers develop taste for home-grown wines
@Gatekeeper So I mentioned that China in fact has their own vineyards, and more Chinese are starting to appreciate homegrown wine. You can always check out Ningxia wine one day in your free time. Xinjiang is also another region perfect for growing wine.
@Gatekeeper So I mentioned that China in fact has their own vineyards, and more Chinese are starting to appreciate homegrown wine. You can always check out Ningxia wine one day in your free time. Xinjiang is also another region perfect for growing wine.
China’s Central Bank Going It Alone Spurs an Influx of Capital
With most of the world’s major nations still battling the pandemic and struggling to recover from deep recessions, China’s economy is on track to grow by about 2% this year and more than 8% in 2021.
That’s allowing People’s Bank of China Governor Yi Gang to turn his attention to a record debt burden, an issue that’s come into sharp focus following a spate of corporate defaults in recent weeks. He’s vowed to normalize policy, a signal to analysts he’ll seek to keep a lid on credit expansion.
No need for quantitative easing (QE), a favorite of many Western nations
- PBOC sticks to conservative monetary policy as economy grows
- Divergence could put yuan’s global role back on track
With most of the world’s major nations still battling the pandemic and struggling to recover from deep recessions, China’s economy is on track to grow by about 2% this year and more than 8% in 2021.
That’s allowing People’s Bank of China Governor Yi Gang to turn his attention to a record debt burden, an issue that’s come into sharp focus following a spate of corporate defaults in recent weeks. He’s vowed to normalize policy, a signal to analysts he’ll seek to keep a lid on credit expansion.
No need for quantitative easing (QE), a favorite of many Western nations
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China eyes demand-side reforms over stimulus measures to boost domestic consumption, economy
The new focus on “demand-side reforms” would mean greater efforts on addressing difficult structural issues, such as unequal income distribution, improving the social safety net, and reforming land-use and ownership policies as an alternative to large-scale government-provided consumer subsidies and investment stimulus measures, which have been, until now, Beijing’s preferred methods to support growth, according to analysts.
Demand-side reform was first mentioned at the December 11 meeting of the Politburo, China’s top decision-making body, headed by President Xi Jinping. This puts the initiative on par with supply-side structural reforms such as curbing industrial overcapacity and reducing financial risks that have dominated China’s economic policymaking over the past five years.
- New policy focus is in line with China’s dual-circulation economic strategy, as nation seeks to rely more on domestic demand and home-grown innovation
- But China’s top leadership has pointed to a lack of quality in the supply of goods and services as being incompatible with people’s desire for a better life
The new focus on “demand-side reforms” would mean greater efforts on addressing difficult structural issues, such as unequal income distribution, improving the social safety net, and reforming land-use and ownership policies as an alternative to large-scale government-provided consumer subsidies and investment stimulus measures, which have been, until now, Beijing’s preferred methods to support growth, according to analysts.
Demand-side reform was first mentioned at the December 11 meeting of the Politburo, China’s top decision-making body, headed by President Xi Jinping. This puts the initiative on par with supply-side structural reforms such as curbing industrial overcapacity and reducing financial risks that have dominated China’s economic policymaking over the past five years.
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Rise of Livestreaming Investment Advisors in China
With 1.3 billion mobile internet users, more than any country in the world, China’s tech platforms are disrupting the Chinese finance sector. Welcome to the cutting-edge and cutthroat world of China’s 18.3 trillion yuan ($2.8 trillion) mutual funds industry, where traditional fund distribution networks like banks are overwhelmed by colorful and noisy livestreamers and globally renowned names such as BlackRock Inc. and Vanguard Group Inc. hold little clout among a young, tech-savvy investor class. The shift has gathered steam as Covid-19 lockdowns confine people to their couches and foster an online shopping boom.
“Every asset manager is jumping on the bandwagon,” says Ken Kang, the Shenzhen-based chief executive officer of Invesco Great Wall. “Livestreaming is really a new phenomenon this year but has taken off fast.”
Last year, Invesco Great Wall relied mostly on text and voiced-based social media to promote products, but this year it’s gone all-in on livestreaming, with fund managers hosting more than 90 sessions. During Deng’s appearance, graphics show his returns, industry experience, and a rough breakdown of the fund’s holdings to entice viewers to become investors.
For foreign companies trying to break into, or win, a bigger slice of the market as China opens its financial sector, it can be an alien and at times bizarre environment. Funds backed by international companies raised $470 billion from mostly Chinese retail investors in the first eight months of the year, less than half the $967 billion raked in by more than 100 local rivals, according to data compiled by Morningstar Inc. and Bloomberg. Of the 10 biggest funds raised, only two were backed by foreign companies.
The shift comes as a generation of tech-savvy digital people reach an age where they have enough money to invest and are looking for ways to increase their wealth. Online platforms are playing a rapidly increasing role, most notably in the past five years after popular sites obtained fund-sales licenses to sell mutual funds. East Money Information Co.’s 1234567.com.cn, one of the largest third-party distribution platforms, sold 659 billion yuan of funds last year, beating traditional distribution giants such as Industrial & Commercial Bank of China Ltd.
“In the past, fund management companies would be quite happy if a new fund collected 2 billion to 3 billion yuan in its initial launch,” says Lu Haiyang, CEO of Hongtai Wealth, the distribution unit of investment group Hongtai Aplus. “Now a well-known manager can easily raise more than 10 billion yuan if online distribution channels are used.”
Led by Ant Group Co. and Tencent Holdings Ltd., a raft of new but pervasive players have uprooted sectors from loans to insurance to asset management. Ant has sold mutual funds to more than 500 million people and is distributing products for more than 20 asset managers, including Invesco’s local venture. The fintech giant offers livestreaming services for asset managers on its Alipay app, which has 1 billion users.
The market is ultracompetitive. Other platforms including those operated by Nasdaq-listed Bilibili Inc. and TikTok’s owner, ByteDance Ltd., are racing to beef up their finance channels to attract viewers keen on learning how to invest. That’s prompted a race for talent.
Among local finance influencers, few command as loyal a following as Zheng Zhiyong. A 10-year fund veteran, he operates personal accounts on multiple platforms under the nickname “Wangjing Bogle,” an homage to Vanguard founder and index fund legend John Bogle. Based in Bejing’s Wangjing tech hub, Zheng has almost 500,000 followers on Alipay and more than 200,000 on China’s Xueqiu, an investment-focused, Reddit-type site, and 1234567.com.cn.
Almost 3,000 members pay him 1,000 yuan ($153) a year for access to his daily investment picks. Zheng chooses lower-fee funds, like certain exchange-traded funds, for his portfolio and buys on internet platforms, which often offer low subscription fees compared with bank channels. He says this gives his followers a cost advantage in the long term over banks and other distributors who tend to pick higher-fee products to earn higher commissions.
Started with livestreaming shopping, where celebrities livestream goods online, in China
With 1.3 billion mobile internet users, more than any country in the world, China’s tech platforms are disrupting the Chinese finance sector. Welcome to the cutting-edge and cutthroat world of China’s 18.3 trillion yuan ($2.8 trillion) mutual funds industry, where traditional fund distribution networks like banks are overwhelmed by colorful and noisy livestreamers and globally renowned names such as BlackRock Inc. and Vanguard Group Inc. hold little clout among a young, tech-savvy investor class. The shift has gathered steam as Covid-19 lockdowns confine people to their couches and foster an online shopping boom.
“Every asset manager is jumping on the bandwagon,” says Ken Kang, the Shenzhen-based chief executive officer of Invesco Great Wall. “Livestreaming is really a new phenomenon this year but has taken off fast.”
Last year, Invesco Great Wall relied mostly on text and voiced-based social media to promote products, but this year it’s gone all-in on livestreaming, with fund managers hosting more than 90 sessions. During Deng’s appearance, graphics show his returns, industry experience, and a rough breakdown of the fund’s holdings to entice viewers to become investors.
For foreign companies trying to break into, or win, a bigger slice of the market as China opens its financial sector, it can be an alien and at times bizarre environment. Funds backed by international companies raised $470 billion from mostly Chinese retail investors in the first eight months of the year, less than half the $967 billion raked in by more than 100 local rivals, according to data compiled by Morningstar Inc. and Bloomberg. Of the 10 biggest funds raised, only two were backed by foreign companies.
The shift comes as a generation of tech-savvy digital people reach an age where they have enough money to invest and are looking for ways to increase their wealth. Online platforms are playing a rapidly increasing role, most notably in the past five years after popular sites obtained fund-sales licenses to sell mutual funds. East Money Information Co.’s 1234567.com.cn, one of the largest third-party distribution platforms, sold 659 billion yuan of funds last year, beating traditional distribution giants such as Industrial & Commercial Bank of China Ltd.
“In the past, fund management companies would be quite happy if a new fund collected 2 billion to 3 billion yuan in its initial launch,” says Lu Haiyang, CEO of Hongtai Wealth, the distribution unit of investment group Hongtai Aplus. “Now a well-known manager can easily raise more than 10 billion yuan if online distribution channels are used.”
Led by Ant Group Co. and Tencent Holdings Ltd., a raft of new but pervasive players have uprooted sectors from loans to insurance to asset management. Ant has sold mutual funds to more than 500 million people and is distributing products for more than 20 asset managers, including Invesco’s local venture. The fintech giant offers livestreaming services for asset managers on its Alipay app, which has 1 billion users.
The market is ultracompetitive. Other platforms including those operated by Nasdaq-listed Bilibili Inc. and TikTok’s owner, ByteDance Ltd., are racing to beef up their finance channels to attract viewers keen on learning how to invest. That’s prompted a race for talent.
Among local finance influencers, few command as loyal a following as Zheng Zhiyong. A 10-year fund veteran, he operates personal accounts on multiple platforms under the nickname “Wangjing Bogle,” an homage to Vanguard founder and index fund legend John Bogle. Based in Bejing’s Wangjing tech hub, Zheng has almost 500,000 followers on Alipay and more than 200,000 on China’s Xueqiu, an investment-focused, Reddit-type site, and 1234567.com.cn.
Almost 3,000 members pay him 1,000 yuan ($153) a year for access to his daily investment picks. Zheng chooses lower-fee funds, like certain exchange-traded funds, for his portfolio and buys on internet platforms, which often offer low subscription fees compared with bank channels. He says this gives his followers a cost advantage in the long term over banks and other distributors who tend to pick higher-fee products to earn higher commissions.
Started with livestreaming shopping, where celebrities livestream goods online, in China
The problem is that the WTO appeals court is not functioning. So, china could just appeal whatever sentences to oblivion.