Business
China’s economic rebalancing act is finally starting to pay off
The Chinese economy ended the first half of 2017 on a solid note, comfortably beating what is required to achieve the government’s full-year target of 6.5 per cent.
Data for second-quarter gross domestic product, released early this week, showed the economy expanded at a respectable clip of 6.9 per cent, well ahead of market expectations. While annual growth was level with the first quarter, sequential growth accelerated on a quarter-on-quarter basis, suggesting the economy has, if anything, gained further momentum following the usual seasonal pattern.
Besides the solid headline print, the details of the data also revealed some encouraging signs. Most noticeably, the structure of the economy has continued to improve, with growth rebalancing towards more sustainable sources.
Second-quarter GDP data showed that the services sector had made up the largest part of the Chinese economy, commanding a 52 per cent share
According to the official data breakdown, household consumption accounted for close to 70 per cent of GDP expansion in the second quarter. Its share has risen by 13.5 percentage points over the past two years. At the same time, the investment share in the economy has fallen from 35.8 per cent to 32.6 per cent, suggesting a clear rebalancing from investment to consumption has taken hold. Even though this process has been accompanied by a slowdown in headline growth, the rebalancing – away from credit-intensive investment – is needed to take the economy off its debt binge.
Progressing hand-in-hand with rising consumption, the economy has also become more services-oriented. Second-quarter GDP data showed that the services sector had made up the largest part of the Chinese economy, commanding a 52 per cent share, and its growth had continued to outpace that of the manufacturing and agricultural sectors. Compared to a typical developed economy, where the services sector usually accounts for two-thirds of growth, China still has plenty of room to grow its tertiary sector, meeting the demand of its burgeoning middle class.
Promoting growth in the services sector is also positive for improving…
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
Business
Wegovy: The Popular Weight-Loss Drug Now Available in China
Novo Nordisk launched Wegovy in China after approval, competing with Eli Lilly’s upcoming weight-loss drug. The treatment, costing 1,400 yuan, targets obesity but has potential side effects and isn’t covered by healthcare.
Wegovy Launch in China
Novo Nordisk recently launched its weight-loss drug, Wegovy, in China after obtaining approval from local health authorities in June. The introduction of Wegovy is expected to increase competition with Eli Lilly, which has also received approval for its weight-loss treatment, although it has not yet been released in China’s significant pharmaceutical market.
Cost and Accessibility
In China, a set of four Wegovy injections will be priced at 1,400 yuan (approximately $194), significantly lower than the drug’s U.S. price. However, patients will need to pay the full amount out of pocket since Wegovy is not yet covered by the national healthcare insurance plan.
Benefits and Side Effects
Research indicates that Wegovy can help users lose over 10% of their body weight. The drug contains semaglutide, which assists with appetite control and satiety. While Wegovy has been gaining traction globally, it may cause side effects like nausea. Concerns have emerged about its misuse among individuals who are not obese, prompting medical professionals to remain vigilant.
Source : Popular weight-loss drug Wegovy goes on sale in China
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
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