Liquidators of debt-laden China Evergrande are still in talks with a potential buyer to sell a stake in the electric vehicle arm of the company with a view to provide a new credit line to support production, Reuters reported. In its initial days, the electric vehicle (EV) maker aimed to take on Tesla and had a market valuation higher than Ford Motor, but it has since been mired in the debt crisis engulfing its property developer parent.
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China
First it was the central bank. Now China's top political leaders are pledging to shore up the country's moribund economy and, in particular, its battered property sector, The Wall Street Journal reported. Here's how markets reacted to the Politburo's intervention. In New York, the Nasdaq Golden Dragon Index jumped nearly 10%. U.S.-listed Chinese stocks such as Alibaba, JD.com and PDD surged. Yum China, which operates KFC in the country, rocketed 17% higher. Hong Kong's Hang Seng Index advanced 4.2%, notching its highest close since August 2023.
China’s leaders have been drip-feeding support into their ailing economy for three years. This week, they jacked up the dose, according to an analysis in The Wall Street Journal. A major injection of stimulus from the central bank — and promises of more government support from the Communist Party’s top decision-making body — mark the beginning of a more muscular approach from Beijing to righting the economy after months of hesitancy, economists say.
China’s central bank announced a series of measures on Tuesday aimed at making it easier for households and companies to borrow money, in the boldest attempt by the Chinese authorities since the pandemic to revive economic growth, halt a housing market crash and stop a broad decline in prices, the New York Times reported. The central bank, the People’s Bank of China, cut short-term interest rates and rates on existing mortgages, reduced minimum down payments for housing purchases, and freed the country’s state-controlled commercial banks to lend a larger proportion of their assets.
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China's central bank on Tuesday unveiled its biggest stimulus since the pandemic to pull the economy out of its deflationary funk and back towards the government's growth target, but analysts warned more fiscal help was vital to hit these goals, Reuters reported. The broader-than-expected package offering more funding and interest rate cuts marks the latest attempt by policymakers to restore confidence in the world's second-largest economy after a slew of disappointing data raised concerns of a prolonged structural slowdown.
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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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