Chinese Economics Thread

[Sinnavuuty]

https://twitter.com/i/web/status/1822074600928505926

China’s headline CPI beat, but mostly because of food supply issues and weather. As such, it’s not yet a sign of strengthening domestic demand. That said, recent import growth has surprised strongly on the upside. Recent thirty-point polices on consumption are a sign that to stimulate weak consumption is now a work focus. Last night the PBOC’s monetary policy report emphasizes “counter-cyclical policies 逆周期”, and removes the words “cross-cycle policies 跨周期”. This is the strongest hint yet to suggest policies are on their way. The PBOC has already cut 10bps interest rate ahead of the Fed. Chinese markets have been weathering the recent global market rout quite well. These initiatives must have helped. Of course, stimulus most likely can only produce one-off effects. To initiate secular changes, structural reforms will be needed.

 

[siegecrossbow]

Not everyone can do this but it is an outlet for those fed up with traditional 9 to 5 (or more like 6 to 6 for most Chinese corporations).

 

[SanWenYu]

China plans to grow her environment protection and energy saving industries to 15 trillion yuans by 2030.

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主要目标是：到2030年，重点领域绿色转型取得积极进展，绿色生产方式和生活方式基本形成，减污降碳协同能力显著增强，主要资源利用效率进一步提升，支持绿色发展的政策和标准体系更加完善，经济社会发展全面绿色转型取得显著成效。到2035年，绿色低碳循环发展经济体系基本建立，绿色生产方式和生活方式广泛形成，减污降碳协同增效取得显著进展，主要资源利用效率达到国际先进水平，经济社会发展全面进入绿色低碳轨道，碳排放达峰后稳中有降，美丽中国目标基本实现。

（四）大力发展绿色低碳产业。加快发展战略性新兴产业，建设绿色制造体系和服务体系，不断提升绿色低碳产业在经济总量中的比重。加快培育有竞争力的绿色低碳企业，打造一批领军企业和专精特新中小企业。大力推广合同能源管理、合同节水管理、环境污染第三方治理等模式和以环境治理效果为导向的环境托管服务。推动文化产业高质量发展，促进文化和旅游深度融合发展。积极鼓励绿色低碳导向的新产业、新业态、新商业模式加快发展。到2030年，节能环保产业规模达到15万亿元左右。

 

[escobar]

Chinese airlines are gaining market share on international routes, industry data shows, as foreign rivals are deterred by weak China travel demand and rising costs and extended flight times because of the need to avoid Russian airspace.

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[daifo]

I wonder how much of the western narrative that China is collapsing coming from International Brands showing decrease sales in China. When drag onto a cnbc, these brands can't just say "Chinese are no longer buying our brands as much because we are not competitive anymore", but have to say "we see declining sales in China due to slow down in the economy"

According to this video, GenZ and Millenials are increasingly preferring local brands and breaking away from international brand propaganda.

 

[GiantPanda]

I wonder how much of the western narrative that China is collapsing coming from International Brands showing decrease sales in China. When drag onto a cnbc, these brands can't just say "Chinese are no longer buying our brands as much because we are not competitive anymore", but have to say "we see declining sales in China due to slow down in the economy"

According to this video, GenZ and Millenials are increasingly preferring local brands and breaking away from international brand propaganda.

That is most certainly a large part of the reasoning. I'm not going to say that the (deliberate and fairly orderly) popping of the real estate bubble hadn't hurt some consumer sentiment but the growth of Chinese brands is the far bigger story
(not a lot of this from foreign press but there are some):

 

[tphuang]

This and the 50 year bond yield really blow my mind. I remember this is what happened for much of early 2010s to UST.

https://twitter.com/i/web/status/1823022942378189067

 

[FairAndUnbiased]

This and the 50 year bond yield really blow my mind. I remember this is what happened for much of early 2010s to UST.

https://twitter.com/i/web/status/1823022942378189067

Bond yields going down means the cost of government borrowing is low.

 

[Maikeru]

This and the 50 year bond yield really blow my mind. I remember this is what happened for much of early 2010s to UST.

https://twitter.com/i/web/status/1823022942378189067

Perhaps unwinding of CNH carry trade? USD into Chinese bonds = higher bond prices =lower yields?

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[ZeEa5KPul]

Perhaps unwinding of CNH carry trade? USD into Chinese bonds = higher bond prices =lower yields?

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You don't do carry trades with a Hotel California currency.