Companies
Outbound cash flow slows in June
Controls start to work, as 1st half total fell 46% from a year earlier
China faces less pressure from capital outflows, according to data released by its currency regulator on Thursday, and economists said the situation may continue to improve in the second half of this year.
China’s banks sold a net $93.8 billion of foreign exchange to clients in the first six months of this year, down 46 percent year-on-year, according to data released by the State Administration of Foreign Exchange.
The foreign exchange savings by individuals dropped by $1.7 billion in the first half of the year, compared with a rise of $12.9 billion in the same period a year earlier, Wang Chunying, the administration’s spokeswoman, said at a news conference.
The falling net foreign exchange sales and savings, together with other statistics released by the regulator, show that “the cross-border capital flow situation China faces is improving in the first half of this year”, Wang said.
China has faced heavy capital outflow pressure in recent years, with its foreign exchange reserves falling to about $3 trillion at the end of 2016 from nearly $4 trillion in 2014. As the country’s economic fundamentals improve and its management of cross-border capital flow has strengthened in recent months, the situation has stabilized, with foreign exchange reserves rising for five consecutive months by June.
China’s GDP growth reached a faster-than-expected 6.9 percent year-on-year in the first half. Meanwhile, authorities have tightened checks of dubious overseas investment projects in some sectors, such as real estate, hotel and sports, which has helped reduce abnormal outflows of capital.
“In terms of supply-demand balance in the foreign exchange market, we are facing the best situation in three years,” Wang said.
Analysts said although China suffers from a foreign exchange sales deficit, it is not worrisome. “The SAFE (administration) data show the situation is…
China
Government subsidies don’t boost Chinese firms’ productivity
China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.
Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.
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Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).
(more…)Companies
Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.
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