Asia Pacific

China’s steel crisis is setting the stage for a wave of bankruptcies and speeding a much-needed consolidation of the industry, according to Bloomberg Intelligence. Almost three-quarters of the country’s steelmakers suffered losses in the first half and bankruptcy is likely for many of them, Michelle Leung, a senior analyst at BI, said in a note. Xinjiang Ba Yi Iron & Steel Co., Gansu Jiu Steel Group and Anyang Iron & Steel Group Co. face the highest risk, and could be potential acquisition targets, she said.
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China’s central bank has lowered a short-term policy rate and pumped more liquidity into the financial system, as it continues efforts to help boost the economy, the Wall Street Journal reported. The People’s Bank of China cut the 14-day reverse repurchase interest rate by 10 basis points to 1.85%, and injected 74.5 billion yuan, equivalent to $10.6 billion, of liquidity via the policy tool, it said on its website on Monday.
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