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China’s economy is paying the price for the nation’s Covid Zero policy, with industrial output and consumer spending sliding to the worst levels since the pandemic began and analysts warning of no quick recovery, Bloomberg News reported. Industrial output unexpectedly fell 2.9% in April from a year ago, while retail sales contracted 11.1% in the period, weaker than a projected 6.6% drop. The unemployment rate climbed to 6.1% and the youth jobless rate hit a record. Investors responded by selling everything from Chinese shares to US index futures and oil.
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Chinese financial authorities on Sunday allowed a further cut in mortgage loan interest rates for some home buyers, in another push to prop up its property market and revive a flagging engine of the world's second-largest economy, Reuters reported. For purchases of first homes, commercial banks can reduce the lower limit of interest rates on home loans by 20 basis points, based on the corresponding tenor of benchmark Loan Prime Rates (LPRs), the People's Bank of China (PBOC) and China's Banking and Insurance Regulatory Commission said in a statement.
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Non-banking finance company Indiabulls Housing Finance Ltd NSE 0.93 % has approached the dedicated bankruptcy court on Friday a plea to admit Mumbai-based realty development firm Radius Estate Projects under Corporate Insolvency Resolution Process (CIRP), the Economic Times of India reported. The realty firm owes over Rs 798 crore to Indiabulls Housing Finance. This is the second such plea filed against the realty development company, which is also facing insolvency proceedings in a petition filed by SBICAP Trustee Company Ltd.
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Japan's wholesale prices in April jumped 10% from the same month a year earlier, data showed on Monday, rising at a record rate as the Ukraine crisis and a weak yen pushed up the cost of energy and raw materials, Reuters reported. The surge in the corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, marked the fastest year-on-year rise in a single month since comparable data became available in 1981. The gain followed a revised 9.7% increase in March, and was higher than a median market forecast for a 9.4% increase.
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Japanese audio equipment maker Onkyo Home Entertainment Corp. has filed for bankruptcy, with some 3.1 billion yen (about $24 million) in total liabilities, the company announced on May 13, the Mainichi Japan reported. The firm, based in the Osaka Prefecture city of Higashiosaka, filed for the commencement of bankruptcy proceedings with the Osaka District Court and its petition was accepted, the company said. Besides its Onkyo brand, the firm also has the "Pioneer" brand under its umbrella. Due to a decline in earnings, Onkyo had been struggling with cash management.
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Exiled Chinese businessman Guo Wengui has said that he will drop his personal bankruptcy case because he says he does not have the money to cover the associated legal costs, Reuters reported. Guo, the former real estate magnate who fled China for the U.S. in 2014 ahead of corruption charges, said in court papers filed on Wednesday that he would not contest a call for his chapter 11 case to be thrown out by a fund that loaned money to Guo's companies.
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The Seoul Bankruptcy Court on Friday selected a consortium led by chemical-to-steel conglomerate KG Group as the designated buyer of the debt-ridden automaker SsangYong Motor Co., the Yonhap News Agency reported. The decision approves the consortium between KG and homegrown private equity (PE) firm Pavilion PE as the new candidate to take over the automaker after a previous sales deal with local electric vehicle maker Edison Motors Co. fell apart. SsangYong has been under court receivership since April 15, 2021, after its Indian parent Mahindra & Mahindra Ltd.
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Sunac China, once one of the country’s best-performing developers, failed to make an overdue interest payment on a U.S. dollar bond, marking a comedown for founder Sun Hongbin, who had tried for months to prevent his property giant from spiraling into default, the Wall Street Journal reported. Tianjin-based Sunac on Thursday said it couldn’t cobble together enough money to make a $29.5 million bond-coupon payment by the end of a 30-day grace period.
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For decades, the world has depended on China as a massive factory floor and market. As the country’s economic growth crumbles, the pain is spreading globally, the Wall Street Journal reported. Lockdowns aimed at stamping out Covid-19 are throttling activity in the world’s second-largest economy. Overseas demand for China’s exports is fading as economies wrestle with surging prices and rising interest rates. The effects of China’s slowdown are showing up everywhere from German factories to Australian tourist spots.
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Hong Kong dipped into its foreign-exchange reserves for the first time in three years to defend its longstanding dollar peg, acting to shore up the local currency against a surging greenback, the Wall Street Journal reported. The Chinese territory’s de facto central bank, the Hong Kong Monetary Authority, on Thursday said it had acted twice to stop the local currency trading beyond the weak end of its permitted range of 7.75 to 7.85 Hong Kong dollars per U.S. dollar. The monetary authority said it had sold U.S.
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