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Time of India
19-05-2025
- Business
- Time of India
Why China has asked its officials to cut spending on alcohol, cigarettes and travel
The directive specifically addressed spending on cigarettes, alcohol and receptions. (AI image) China has instructed government officials nationwide to reduce unnecessary expenditure on travel, meals and office facilities, signalling President Xi Jinping 's commitment to fiscal prudence amidst challenging economic conditions affecting government finances. The regulations reinforce Xi's initiative for officials to reduce expenditure, particularly as declining land sale revenues constrain budgets whilst local administrations face substantial debt obligations. In late 2023, central authorities instructed government officials to embrace austerity measures, strengthening Xi's drive against corruption and ostentatious displays of affluence. Also Read | 'Big ban' actions: How India is shunning Pakistan and its allies like Turkey & Azerbaijan - top 5 measures According to the official Xinhua News Agency on Sunday, the directive from the government and Communist Party leadership specifically addressed spending on cigarettes, alcohol and receptions. The announcement emphasises the importance of practising careful spending and frugality whilst condemning excessive expenditure. Xinhua quoted the directive stating that "waste is shameful and the economy is glorious." On Monday, consumer staples stocks experienced a significant decline within the CSI 300 Index's sub-categories, dropping by 1.7%. Notably, Kweichow Moutai Co. saw its largest decline in six weeks, falling by 2.4%, according to a Bloomberg report. Beijing launched its most comprehensive programme in recent years to tackle local-authority debt concerns in the previous year. This initiative sought to minimise default risks and enable local governments to maintain economic development support. Meanwhile, China recorded a 5.4% economic growth in the first quarter, surpassing projected figures. Officials maintain their optimism about reaching Beijing's growth objective of approximately 5% for the year, although economists caution that UStariffs could impact this progress. Also Read | Why India can be a big winner of Donald Trump 2.0 era if it plays its cards right Concerned about the negative effects of tariffs on economic performance, the government introduced stimulus initiatives earlier this month, encompassing reductions in interest rates and substantial liquidity support. The monetary policy measures were implemented prior to the China-U.S. trade agreement, which was finalised following crucial negotiations in Geneva, representing a notable reduction in the prolonged period of increasing friction. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
South China Morning Post
21-04-2025
- Business
- South China Morning Post
Chinese stocks rise by most in a week as trade war with US fuels stimulus hopes
Chinese stocks rose by the most in a week on Monday amid expectations of stimulus measures from Beijing to offset the impact of the trade war with the US. Advertisement The CSI 300 Index, a gauge of the nation's biggest companies, advanced 0.2 per cent to 3,778.18 at the trading break, after jumping as much as 0.5 per cent to log the best intraday gain since April 14. The Shanghai Composite Index added 0.3 per cent. Hong Kong's stock market is closed for the Easter holiday and will reopen on Tuesday. The gains were led by tech firms. Artificial intelligence chip designer Cambricon Technologies jumped 5.7 per cent to 707.60 yuan, while high-end processor maker for servers and computers Hygon Information Technology advanced 2.1 per cent to 152.82 yuan. Electric vehicle battery maker Contemporary Amperex Technology rose 3.3 per cent to 232.78 yuan. Limiting gains, Chinese baijiu maker Luzhou Laojiao fell 1.8 per cent to 129.43 yuan, while property developer China Vanke eased 1.9 per cent to 7.17 yuan. Traders are betting on bolder stimulus in the coming months to help mitigate risks amid intensifying trade tensions between China and the US, according to global investment banks. While UBS, Goldman Sachs, Nomura and others have cut their forecasts for China's economy, they expect more measures from Chinese policymakers to underpin the economy. Advertisement 'We expect the government to accelerate bond issuance and the spending of proceeds in the coming months,' Andrew Tilton, an economist with Goldman Sachs, said in a note over the weekend.
South China Morning Post
21-04-2025
- Business
- South China Morning Post
Chinese stocks rise by most in over a week as trade war with US fuels stimulus hopes
Chinese stocks rose by the most in more than a week on Monday amid expectations of stimulus measures from Beijing to offset the impact of the trade war with the US. Advertisement The CSI 300 Index, a gauge of the nation's biggest companies, added 0.4 per cent to 3,787.84 at 9.50am local time, the most since April 11, while the Shanghai Composite Index gained 0.5 per cent. Hong Kong's stock market is closed for the Easter holiday and will reopen on Tuesday. The gains were led by tech firms. Artificial intelligence chip designer Cambricon Technologies jumped 5.9 per cent to 709.01 yuan, while high-end processor maker for servers and computers Hygon Information Technology advanced 2.7 per cent to 153.62 yuan. Electric vehicle battery maker Contemporary Amperex Technology rose 1.9 per cent to 229.66 yuan. Limiting gains, Chinese baijiu maker Luzhou Laojiao fell 1 per cent to 130.40 yuan, while property developer China Vanke eased 1.6 per cent to 7.18 yuan. Traders are betting on bolder stimulus in the coming months to help mitigate risks amid intensifying trade tensions between China and the US, according to global investment banks. While UBS, Goldman Sachs, Nomura and others have cut their forecasts for China's economy, they expect more stimulus measures from Chinese policymakers to underpin the economy. Advertisement 'We expect the government to accelerate bond issuance and the spending of proceeds in the coming months,' Andrew Tilton, an economist with Goldman Sachs, said in a note over the weekend.
South China Morning Post
08-04-2025
- Business
- South China Morning Post
China mounts market intervention as Huijin leads stock purchases amid tariff war
China stepped up its intervention efforts to stabilise its financial markets amid steep losses triggered by an all-out tariff war with the US, calling on at least US$1.3 trillion of funds at state-owned investment vehicles and insurance companies to help stem the worst rout in decades. Advertisement The People's Bank of China (PBOC) on Tuesday said it would provide more liquidity to back purchases by sovereign wealth fund Central Huijin Investment to safeguard local market stability. The National Financial Regulatory Administration said it would allow insurers to use more funds to invest in the stock market, while an array of state-controlled firms stepped up buy-back plans in a move to shore up prices. The CSI 300 Index, which tracks the biggest companies traded in Shanghai and Shenzhen, jumped 1.3 per cent at 2.42pm local time, clawing back some of the 7.1 per cent plunge on Monday. The Hang Seng China Enterprises Index, which crashed 13 per cent on Monday into bear-market territory, rebounded 0.8 per cent in Hong Kong. 'Beijing is sending a clear message [that] they're not going to let this market unravel without a fight,' said Stephen Innes, a managing partner at SPI Asset Management in Bangkok. 'This isn't moral support, it's a full-on monetary airlift.' 02:48 China vows to take 'countermeasures' after Trump's new 50% tariff threat China vows to take 'countermeasures' after Trump's new 50% tariff threat China met US President Donald Trump's 'Liberation Day' 34 per cent tariffs with a matching blow on US goods last week, sending global markets into a seizure on Monday and fanning demand for safe haven assets. The Hang Seng Index, dominated by China's biggest companies, suffered its worst one-day loss since the Asian financial crisis in 1997. Trump has threatened to impose another 50 per cent levy on Chinese goods if Beijing does not remove its tariff, worsening the outlook. Advertisement On Monday, Central Huijin said it bought exchange-traded funds (ETFs) to support the market and would boost its purchases in the future to restore confidence, without disclosing details. The firm, with 7.76 trillion yuan (US$1.1 trillion) of assets, is a unit of sovereign wealth fund China Investment Corp and owns strategic stakes in the nation's biggest lenders.
Yahoo
29-03-2025
- Business
- Yahoo
Xi Woos Global Business Leaders as Trump Escalates Trade War
(Bloomberg) -- Chinese President Xi Jinping called on global business leaders to push back against protectionism, seeking to take advantage of growing backlash to rising US tariffs to promote his country as a reliable partner. Gold-Rush Fever Returns to Historic New Zealand Mining Town Why Did the Government Declare War on My Adorable Tiny Truck? How SUVs Are Making Traffic Worse Trump Slashed International Aid. Geneva Is Feeling the Impact. These US Bridges Face High Risk of Catastrophic Ship Strikes Xi on Friday made a veiled critique of Donald Trump's trade actions, touting China's stability at a meeting in Beijing with some 40 corporate leaders including Stephen A. Schwarzman of Blackstone Inc., Judy Marks of Otis Worldwide Corp and Jay Y. Lee of Samsung Electronics Co. His comments came a day after the American president intensified his trade war and prompted threats of retaliation from the EU and other allies. 'Some countries are building a small yard with high fences, erecting tariff barriers, politicizing business issues, using them as tools and weapons,' Xi said at the Great Hall of the People, without naming any nation. 'I hope you will share your sensible views and take actions to push back against the retrogressive rules and the zero-sum games,' he said. Xi's remarks are part of a campaign to court investors as slowing growth and mounting geopolitical tensions hurt the draw of the world's second-largest economy, with inbound investment tumbling last year to its lowest in over three decades. He promised to improve market access and address their challenges of operating in the country. 'We are providing a transparent, steady and predictable policy environment,' Xi said, calling the nation a 'favorite destination' for foreign investors. 'Embracing China is embracing opportunities.' The expanded guest list reflects Xi's ambition to direct his message to a wider audience. The number of attendees — spanning finance, manufacturing and technology — more than doubled that of last year's event, when Xi met about 20 mostly US business figures. The benchmark CSI 300 Index of onshore Chinese stocks pared some losses to close 0.4% down, while the offshore yuan also trimmed its decline versus the US dollar. Unlike in 2024, Xi invited reporters into the room when he gave a closing statement. Seven executives spoke in the meeting, including Aramco's Amin H. Nasser, who pledged to expand investment in chemical production in China and praised the country for 'becoming an oasis of certainty.' Stephen Orlins, president of the National Committee on US-China Relations, who attended the meeting, said Xi sought to put a personal touch on his relationship with the companies, recalling when he first met their representatives or visited their factories even before he became China's leader. Executives of FedEx Corp, Mercedes-Benz Group AG, Sanofi SA, HSBC, Hitachi and SK Hynix also spoke, he said. Sean Stein, president of US-China Business Council, who also attended, said Xi's response to each speaker was extensive, with a level of specificity that was 'quite impressive.' 'The message coming from the Chinese side was detailed. It was focused, and really took the time to analyze and discuss some of the issues that have been key pain points for multinational corporations,' he said. Chinese officials overseeing the economy, finance, trade and national development joined the meeting, highlighting the importance Xi attached to the event. Xi didn't disclose in his public remarks specific new measures to benefit foreign investors in the country, who have long complained of unfair competition and policies that favor Chinese companies. Michael Hart, president of the American Chamber of Commerce in China, said foreign companies maintain significant interest to operate in China, but worsening trade tensions are giving some pause. 'Barriers still remain and companies fear tit-for-tat actions because of the trade war,' Hart said. 'China needs to deliver for companies who have already met them at least halfway.' Several US firms have already been caught in the crossfire. Chinese authorities summoned Walmart Inc. executives this month over reports it asked suppliers to bear rising costs incurred by increased US tariffs. Beijing earlier placed Calvin Klein owner PVH Corp. and US gene sequencing company Illumina Inc. onto a so-called blacklist of entities as US tariffs took effect. More headwinds may come next month, when the US is set to complete a review of Beijing's compliance with the phase-one trade deal struck during US President Donald Trump's first term and impose reciprocal duties globally. China is almost certain to retaliate any new levies on Chinese products. Chinese Premier Li Qiang on Sunday said the country is prepared for 'shocks that exceed expectations' as the government targets an ambitious growth target of about 5% this year. Economists estimate that Beijing would need to unleash trillions of yuan in stimulus to hit that goal if tariffs surge. Many global CEOs had traveled to China for the annual China Development Forum and the Boao Forum for Asia, which concluded Friday. The meeting marks an upgrade from earlier years when China's No. 2 official met executives on the sidelines of the CDF, although Xi broke precedent last year to meet a group of US businesspeople. Republican Senator Steve Daines, a member of the Foreign Relations Committee, met with several Chinese leaders including Premier Li earlier this week, in what has been seen as an initial step to set up a summit between Xi and Trump. In his speech, Xi said friction in China-US ties should be managed through dialog and called on companies to work with China to uphold the global economic order. 'Blowing out another lamp won't make your own glow brighter, blocking another's path and you will ultimately block your own,' Xi said. --With assistance from Abhishek Vishnoi and Kari Lindberg. (Updates with executive comment in 11th paragraph.) Business Schools Are Back Israel Aims to Be the World's Arms Dealer Google Is Searching for an Answer to ChatGPT A New 'China Shock' Is Destroying Jobs Around the World Trump's IRS Cuts Are Tempting Taxpayers to Cheat ©2025 Bloomberg L.P. Sign in to access your portfolio
