Page 11 - China Economic Growth

China increases its defence budget 7.2% as it pushes for global heft

China on Tuesday increased its defence budget by 7.2 per cent to USD 232 billion as it continues with the massive modernisation of its military amid prevailing tensions over Taiwan, the disputed South China Sea as well as border frictions with India. China, which is the second highest spender on defence after the US, has allocated 1.67 trillion yuan (about USD 232 billion) for defence spending. The increase in terms of the percentage was the same as last year. China last year hiked its defence budget by 7.2 per cent to 1.55 trillion yuan (about USD 225 billion), marking the eighth consecutive year of increase in its military spending. Like its previous budgets, this year's defence budget of China was almost three times higher than that of India. India's defence allocation this year amounted to Rs 6,21,541 crore (about USD 74.8 billion). China has simmering territorial disputes with some of its neighbours. China views Taiwan as a rebel province that must be reunified with the ...

China targets 2024 economic growth around 5%, on par with last year's rate

China's official growth target for this year is around 5 per cent, Premier Li Qiang said Tuesday in an annual report on the government's plans and performance that prioritized both security and the economy. Li also said the government would issue 1 trillion yuan (about USD 139 billion) in "ultralong special treasury bonds" in 2024 and over each of the coming several years a long hoped-for extra promise of government spending to help support flagging growth. The ruling Communist Party has been emphasizing the need to raise consumer spending to help drive the economy. But the consumer-led recovery it was counting on after anti-pandemic controls ended in late 2022 faltered midway through last year. Falling housing prices and worries over jobs left many families either reluctant or unable to spend more. Last year, the economy grew at a 5.2 per cent pace, but that was after a very slow 3 per cent annual growth rate in 2022, when the country was enduring the worst disruptions from the .

China, Myanmar likely to be on agenda at Asean-Australia Special Summit

An increasingly assertive China and a humanitarian crisis in Myanmar are likely to be high on the agenda when Southeast Asian leaders meet in Australia for a rare summit this week. The ASEAN-Australia Special Summit that starts in Melbourne on Monday marks 50 years since Australia became the first official partner of the Asian bloc. Leaders of nine of the 10 Association of Southeast Asian Nations are expected to attend the three-day summit, with Myanmar excluded from political representation over its failure to stem violence in that country since a military junta seized control in 2021. East Timor's leader has been invited as an official ASEAN observer and Australian Prime Anthony Albanese invited his New Zealand counterpart to Melbourne to meet regional leaders. "Australia sees ASEAN at the center of a stable, peaceful and prosperous region," Albanese said in a statement on Friday. "Strengthening our relationship ensures our shared future prosperity and security," he added. Austr

China's factory activity slows for 5th month as weak demand hampers growth

A gauge of non-manufacturing activity rose to 51.4, versus an estimate of 50.7, helped by a pickup in travel and tourism during a recent long holiday

China's factory activity rises on expansion in output, orders: Caixin PMI

The upbeat results, however, contrasted with an official survey released earlier in the day showing factory activity contracted for a fifth straight month

CCP Politburo vows to meet growth targets amid China's slow recovery

The Politburo also pledged to speed up development of 'new productive forces,' a vague new slogan favored by Xi that refers to fresh engines of economic growth

Over 80% of Taiwanese favour maintaining status quo with China: Survey

The fastest growing category of people were those who want to maintain the status quo indefinitely; it rose from 9.8 per cent in 1994 to 33.2 per cent last year, rising sharply since 2020

China's 'dragon' baby boom may increase population in 2024: Report

Many young people, however, are opting to stay single or put off getting married due to poor job prospects, record youth unemployment and chronically low consumer confidence

StanChart lowers income target as China weighs, launches $1 bn buyback

StanChart also said it would aim to increase returns on tangible equity, a key profitability metric, "steadily" from the current 10% to 12% by 2026

Despite China's pressure, Taiwan reiterates cooperation with Palau

The Ministry said in a statement that Taiwan has long supported Palau in tourism development in a bid to strengthen the Pacific nation's "economic resilience and sustainability"

China's ongoing property crisis is starting to ripple across the world

The 60 Curzon residential development in Mayfair where insolvency experts from Interpath Advisory have been appointed

China's consumer prices suffer steepest fall in more than 14 years

Citigroup economists said in a research note last week that they expect mild reflation in 2024, and forecast annual CPI inflation at 1.2 per cent year-on-year

Chinese state fund to expand share holdings to help support equity markets

A Chinese state investment fund has promised to expand its purchases of stock index funds to help markets that have been sagging under heavy selling pressure from a property crisis and slowing economy. Shares logged moderate gains on Tuesday after the announcement by Central Huijin Investment, a Chinese sovereign fund that owns China's state-run banks and other big government-controlled enterprises. The fund has stepped up buying of shares in big state-owned banks and other companies to counter heavy selling pressure in the Chinese markets. On Monday, benchmarks in Shanghai and the smaller market in Shenzhen bounced between small gains and big losses, while share prices of state-run banks and other big companies rose. The move followed warnings by the market regulator of a crackdown on market manipulation, insider trading and other abuses and promises to protect smaller investors who usually account for the majority of trading in Chinese markets. The market watchdog, the China ...

China's factory activity shrinks again in January, demand still weak

The composite PMI, which includes manufacturing and services, was at a four-month high of 50.9 in January compared with 50.3 the previous month

Taiwan CAA protests China's unilateral adjustment of flight routes

Taiwan's Civil Aviation Administration (CAA) protested China's unilateral adjustment of flight routes close to the median line of the Taiwan Strait on Tuesday

Court orders Evergrande to liquidate after it failed to reach debt deal

A Hong Kong court on Monday ordered property developer China Evergrande Group to liquidate after it was unable to reach a restructuring deal with creditors. Judge Linda Chan said it was appropriate for the court to order Evergrande to wind up its business given a lack of progress on the part of the company putting forward a viable restructuring proposal as well as Evergrande's insolvency. Evergrande was granted an earlier reprieve after it said it was attempting to refine a new debt restructuring plan of more than USD 300 billion in liabilities. Evergrande, the world's most indebted property developer, is one of many property firms that ran into trouble when Chinese regulators cracked down on excessive borrowing in the real estate sector. The company first defaulted on its financial obligations in 2021, just over a year after Beijing clamped down on lending to property developers in an effort to cool a property bubble.

China doubles down on moves to mend its economy, fend off financial crisis

China's leaders launched a barrage of new policies this week to prop up languishing financial markets and rekindle growth in the world's second-largest economy. The moves to support lending and spending with billions of dollars of fresh cash gathered pace when the central bank cut bank reserve requirements and issued new rules to encourage banks to lend more to property companies. A collapse in China's real estate market has been one of the key factors hindering the country's recovery from the shocks of the COVID-19 pandemic. What's at stake: stable financial markets and a major driver of global economic growth. HOW IS THE CHINESE ECONOMY DOING? The Chinese economy grew at a 5.2% annual pace in 2023, exceeding the government's target, and many indicators including factory output and retail sales show signs of improvement. But most economists are forecasting a slowdown this year and next that will drag on global growth. Meanwhile, Chinese stock markets have swooned since late 2023,

China expands access to loans for developers, acting to end debt crisis

China has rolled out new rules meant to expand access to commercial bank loans for property developers as Beijing doubles down on its effort to end a prolonged crisis in the real estate industry. The policies will allow real estate companies to use bank loans pledged against commercial properties such as offices and shopping malls to repay their other loans and bonds and to cover operating expenses. They were announced late Wednesday by the People's Bank of China, the National Financial Regulatory Administration and the Finance Ministry. Beijing has moved this week to stabilise ailing financial markets and boost the economy by freeing up more money for lending in various ways. That includes cutting required bank reserves. The flurry of new measures and pronouncements from senior Communist Party officials about the need to stabilise financial markets and build confidence in the economy, the world's second largest, appears to reflect a renewed determination to get growth back on ...

China cuts reserve requirements for bank to help boost its slowing economy

China's central bank said Wednesday it will cut the ratio of reserves banks must hold to help boost the slowing economy. The announcement by the People's Bank of China prompted a surge in share prices in Chinese markets, with Hong Kong's benchmark jumping 3.6%. Central bank Gov. Pan Gongsheng said the deposit reserve requirement would be cut by 0.5% as of Feb. 5. Pan said that would inject about 1 trillion yuan ($141 billion) into the economy. He told reporters in Beijing that the central bank also soon plans to issue a policy on lending to property developers to help support the industry.

12.44 mn urban jobs added in 2023, more effort needed this year: China

For the full year of 2023, the average nationwide survey-based jobless rate dropped to 5.2 per cent from 5.6 per cent in 2022