A lack of innovation could be why investments in China’s tech firms are plunging

China has spawned some of the world’s largest private technology companies like TikTok parent, Bytedance and Alibaba affiliate, Ant Financial. Foo has invested in large Chinese technology companies such as ride-hailing service DiDi, and electric car start-up Xpeng Motors. The concern over the public market performance of Chinese tech firms has had an effect on early stage venture investors. Some public companies also continue to lose money as they sink money into growing the company. They come o


China has spawned some of the world’s largest private technology companies like TikTok parent, Bytedance and Alibaba affiliate, Ant Financial. Foo has invested in large Chinese technology companies such as ride-hailing service DiDi, and electric car start-up Xpeng Motors. The concern over the public market performance of Chinese tech firms has had an effect on early stage venture investors. Some public companies also continue to lose money as they sink money into growing the company. They come o
A lack of innovation could be why investments in China’s tech firms are plunging Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: arjun kharpal
Keywords: news, cnbc, companies, capital, public, technology, investments, lack, firms, plunging, companies, chinese, investors, market, liu, tech, chinas, innovation, money


A lack of innovation could be why investments in China's tech firms are plunging

An investor observes the stock market at a stock exchange hall on June 29, 2018 in Jinhua, Zhejiang Province of China. VCG | Visual China Group | Getty Images

A lull in innovation is one of the major forces behind a recent plunge in venture capital (VC) investment in Chinese technology companies, according to investors who spoke to CNBC. The value of VC investment in China was $9.7 billion in the second quarter of 2019, according to financial data company Prequin. This was down by nearly 77% from the $41.3 billion invested in the same period last year. China has spawned some of the world’s largest private technology companies like TikTok parent, Bytedance and Alibaba affiliate, Ant Financial. But investors say the country’s tech sector lacks innovation. “If you look at the past decade, there is a lot of low hanging fruit when there is the first mobile boom. And then after mobile, there hasn’t been a new … platform to host and spawn out of the new innovations coming out of the platform,” Yuan Liu, managing director of China-based VC fund Zhenfund, told CNBC in an interview. “So people were thinking whether VR (virtual reality) will be the next big thing, whether crypto will be the next big platform that would … do this. They didn’t turn out to be,” Liu said. “And AI (artificial intelligence), there is a lot of hope for that. And then after AI … investors started to think, is AI a bubble?” For now, he said, “there hasn’t been many innovations in the market so investors haven’t seen anything that excites them.”

That sentiment was echoed by Jixun Foo, managing partner at GGV Capital, a venture capital firm that invests in entrepreneurs in the U.S., Asia and other emerging economies. Foo has invested in large Chinese technology companies such as ride-hailing service DiDi, and electric car start-up Xpeng Motors. During a CNBC-hosted panel at the RISE conference in Hong Kong, Foo said the “innovation wave” has “slowed down.” “Things always goes in cycles,” Foo said. “If you were to project forward where 5G comes up, there will be a new innovation wave. From 3G to 4G we see short form video. What will come with 5G, with AR (augmented reality), with VR, there may be new innovation waves that will propel new investment.”

5G refers to next-generation mobile networks that promise super-fast data speeds with the ability to support new technologies like driverless cars. “There is no lack of capital. It’s just where money is being put, there needs to be innovation that drives this new capital requirement,” Foo added.

Trade war worries

Other investors cited the ongoing U.S.-China trade war as well as poor performance of some Chinese technology companies in the public markets, as factors for the fall in investment. “It has a lot to do with the confidence level with the China-U.S. trade war definitely part of it,” Edith Yeung, managing partner at Proof of Capital, told CNBC. “And then I think also a lot of the IPOs (initial public offering) that happened in 2018 haven’t really performed … so it sends not-so-good of a signal for the early VCs.” Chinese tech companies have been caught in the middle of tensions between the U.S. and China. Huawei, for example, has been put on a U.S. blacklist that restricts American companies from selling to the Chinese firm. Some of those restrictions have since been eased. While Huawei is not publicly listed, negative sentiment toward Chinese technology firms have played out in the public markets, particularly with some of the companies that have listed in the past year. Smartphone maker Xiaomi, which went public in July 2018, is down over 26% this year. Shares of electric carmaker NIO, which is listed in the U.S., are down more than 46% this year. The concern over the public market performance of Chinese tech firms has had an effect on early stage venture investors. “When you see the public markets not performing well, the pre-IPO or the growth equity guys will be more cautious when they look at their valuation metrics and dynamics … which will then trickle down to the series B guys, ” Liu said. Series B refers to a relatively early stage funding round for businesses.

‘Cash burn’ concerns

Many start-ups looking to grow quickly burn through cash to gain market share and scale with the aim of trying to achieve profitability later on. Some public companies also continue to lose money as they sink money into growing the company. Liu of Zhenfund, which is an early stage investor, said companies are now discussing “unit economics” earlier in their fund-raising, something that didn’t happen five years ago. Unit economics refers to the revenue and costs associated with a company’s business model. In the case of many internet companies, a single user is the unit. Working out unit economics can be a way of projecting how profitable a company will be and if their business model is viable. Liu said he is advising companies to act like they won’t be able raise money for the next 6-12 months. Some start-ups are also looking to raise funds so they have some money in case things turn sour. “Some of them raise money, come out to market proactively before they actually need (it), when they have say 12 months’ capital to go. They come out now just so they have more buffer because people are uncertain about the future capital market,” Liu told CNBC.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: arjun kharpal
Keywords: news, cnbc, companies, capital, public, technology, investments, lack, firms, plunging, companies, chinese, investors, market, liu, tech, chinas, innovation, money


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Amid swine fever outbreak, China’s pork output in the first half of 2019 falls

China’s pork output fell by less than expected in the first half as the country tackles a devastating disease outbreak, although official data showed conflicting figures on the size of the decline in the hog herd. Feng said pork output should have declined by more than 10%. Live hog prices were steady through much of the second quarter but began rising “fiercely” in early June, said Feng. Rising pork prices are pushing overall food prices to their highest in years. Total meat output including po


China’s pork output fell by less than expected in the first half as the country tackles a devastating disease outbreak, although official data showed conflicting figures on the size of the decline in the hog herd. Feng said pork output should have declined by more than 10%. Live hog prices were steady through much of the second quarter but began rising “fiercely” in early June, said Feng. Rising pork prices are pushing overall food prices to their highest in years. Total meat output including po
Amid swine fever outbreak, China’s pork output in the first half of 2019 falls Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15
Keywords: news, cnbc, companies, bureau, hog, prices, outbreak, half, yuan, chinas, herd, 2019, million, pork, output, swine, amid, falls, fever


Amid swine fever outbreak, China's pork output in the first half of 2019 falls

A hired hand feeds a sow which recently gave birth to a new litter at the Grand Canal Pig Farm in Jiaxing, in China’s Zhejiang province.

China’s pork output fell by less than expected in the first half as the country tackles a devastating disease outbreak, although official data showed conflicting figures on the size of the decline in the hog herd.

China produced 24.7 million tonnes of pork in the first six months of 2019, down 5.5% from a year earlier, according to figures from the National Bureau of Statistics, amid a severe epidemic of African swine fever.

China’s hog herd — the world’s largest — declined 15% from a year ago to 347.61 million head, the bureau said, as pigs died from the virus and farmers held back from restocking.

But figures from the Ministry of Agriculture and Rural Affairs on the same day said the herd had shrunk 25.8% in June from a year earlier, with the number of sows down 26.7%. The ministry does not publish total number of pigs.

Analysts were surprised at the fall in pork output, which showed the pace of decline little changed from 5.2 percent in the first quarter, even as swine fever has spread to every province in China.

“It’s much smaller than expected,” said Feng Yonghui, chief analyst at industry portal Soozhu.com. “The gap between this and the decline in pig herd is too big.”

Feng said pork output should have declined by more than 10%.

The number of slaughtered hogs in the first half fell 6.2% to 313.46 million head, the statistics bureau said.

Others have also questioned official data on China’s hog herd. Four people who supply large farms recently told Reuters as many as half of China’s sows have either died from African swine fever or been slaughtered because of the spreading disease.

African swine fever is not harmful to humans but kills almost all pigs it infects.

Live hog prices were steady through much of the second quarter but began rising “fiercely” in early June, said Feng. Average prices have hit 17.8 yuan ($2.59) per kilogram, up from 14.2 yuan at the end of May.

Retail pork prices reached 26.45 yuan per kg in the final week of June, up 33% on the year, according to weekly data from the Ministry of Agriculture and Rural Affairs, but still some way off the record of 31.56 yuan in June 2016.

Rising pork prices are pushing overall food prices to their highest in years.

Beijing has urged poultry producers to boost output to help supplement the fall in pork production.

Output of poultry meat rose 5.6% in the first six months, while beef output increased 2.4% and lamb output rose 1.4%, the bureau said.

Total meat output including pork, beef, lamb and poultry fell 2.1% in the first half to 39 million tonnes.


Company: cnbc, Activity: cnbc, Date: 2019-07-15
Keywords: news, cnbc, companies, bureau, hog, prices, outbreak, half, yuan, chinas, herd, 2019, million, pork, output, swine, amid, falls, fever


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Europe stocks trade higher as China data meets expectations; Galapagos up 17%

European stocks traded higher Monday morning, despite worries that China’s economy is slowing amid a trade war with the U.S. Traders kept a close watch on the latest economic figures out of China. The country posted second-quarter figures on Monday that showed its economy grew 6.2% in the second-quarter, at its slowest pace in 27 years. Still, China’s GDP (gross domestic product) growth was in line with expectations, and data for industrial production, retail sales and fixed-asset investment cam


European stocks traded higher Monday morning, despite worries that China’s economy is slowing amid a trade war with the U.S. Traders kept a close watch on the latest economic figures out of China. The country posted second-quarter figures on Monday that showed its economy grew 6.2% in the second-quarter, at its slowest pace in 27 years. Still, China’s GDP (gross domestic product) growth was in line with expectations, and data for industrial production, retail sales and fixed-asset investment cam
Europe stocks trade higher as China data meets expectations; Galapagos up 17% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: elliot smith ryan browne, elliot smith, ryan browne
Keywords: news, cnbc, companies, secondquarter, composite, europe, galapagos, figures, chinas, watch, economy, trade, stocks, data, 17, worries, expectations, meets, china, higher


Europe stocks trade higher as China data meets expectations; Galapagos up 17%

European stocks traded higher Monday morning, despite worries that China’s economy is slowing amid a trade war with the U.S.

The pan-European Stoxx 600 edged 0.5% higher in early deals. Basic resources leading led the gains with a 1.3% rise while food and beverage stocks slipped 0.2% and were the only sector trading in negative territory.

Traders kept a close watch on the latest economic figures out of China. The country posted second-quarter figures on Monday that showed its economy grew 6.2% in the second-quarter, at its slowest pace in 27 years. Still, China’s GDP (gross domestic product) growth was in line with expectations, and data for industrial production, retail sales and fixed-asset investment came in above analyst expectations.

Chinese stocks got a boost from the fresh data, with the Shanghai composite climbing 0.76% and the Shenzhen composite up 1.26%. MSCI’s broadest index of Asian shares outside Japan rose 0.26%.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: elliot smith ryan browne, elliot smith, ryan browne
Keywords: news, cnbc, companies, secondquarter, composite, europe, galapagos, figures, chinas, watch, economy, trade, stocks, data, 17, worries, expectations, meets, china, higher


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

China’s stocks rise as data shows lowest quarterly growth in 27 years

Chinese stocks recovered from an earlier slip to finish the trading day higher on Monday, following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years. The Shanghai composite added 0.4% to 2,942.19, while the Shenzhen component rose 1.04% to 9,309.42. The Shenzhen composite also gained 1% to 1,572.34. Elsewhere, South Korea’s Kospi ended the trading day in Seoul 0.2% lower at 2,082.48. overall, the MSCI Asia ex-Japan index rose 0.28%.


Chinese stocks recovered from an earlier slip to finish the trading day higher on Monday, following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years. The Shanghai composite added 0.4% to 2,942.19, while the Shenzhen component rose 1.04% to 9,309.42. The Shenzhen composite also gained 1% to 1,572.34. Elsewhere, South Korea’s Kospi ended the trading day in Seoul 0.2% lower at 2,082.48. overall, the MSCI Asia ex-Japan index rose 0.28%.
China’s stocks rise as data shows lowest quarterly growth in 27 years Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, trading, chinese, lowest, quarterly, shows, shenzhen, wealth, rose, growth, index, 27, data, chinas, day, company, added, rise, composite


China's stocks rise as data shows lowest quarterly growth in 27 years

Chinese stocks recovered from an earlier slip to finish the trading day higher on Monday, following the release of GDP data that showed the Chinese economy growing at its slowest pace in at least 27 years.

The Shanghai composite added 0.4% to 2,942.19, while the Shenzhen component rose 1.04% to 9,309.42. The Shenzhen composite also gained 1% to 1,572.34.

Hong Kong’s Hang Seng index added 0.22%, as of its final hour of trading, with the city still stuck in turmoil surrounding a controversial extradition bill. Meanwhile, the Budweiser initial public offering in Hong Kong, which was set to be the world’s biggest listing of 2019, was canceled by parent company Anheuser-Busch InBev.

Elsewhere, South Korea’s Kospi ended the trading day in Seoul 0.2% lower at 2,082.48.

Over in Australia, the S&P/ASX 200 declined 0.65% to close at 6,653.00 as most sectors slipped. Shares of wealth manager AMP plunged 15.81% after the company said it was “highly unlikely to proceed ” with the sale of its life insurance and wealth protection business.

overall, the MSCI Asia ex-Japan index rose 0.28%.

Markets in Japan were closed on Monday for a holiday.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: eustance huang
Keywords: news, cnbc, companies, stocks, trading, chinese, lowest, quarterly, shows, shenzhen, wealth, rose, growth, index, 27, data, chinas, day, company, added, rise, composite


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

China posts its lowest quarterly growth in 27 years as the trade war drags on

China released second-quarter figures on Monday showing that its economy slowed to 6.2% — the weakest rate in at least 27 years, as the country’s trade war with the U.S. took its toll. From April to June, China’s economy grew 6.2% from a year ago, the country’s statistics bureau said on Monday. The second quarter economic growth was the country’s slowest pace since the first quarter of 1992 — the earliest quarterly data on record, according to Reuters. China’s statistics bureau said the economy


China released second-quarter figures on Monday showing that its economy slowed to 6.2% — the weakest rate in at least 27 years, as the country’s trade war with the U.S. took its toll. From April to June, China’s economy grew 6.2% from a year ago, the country’s statistics bureau said on Monday. The second quarter economic growth was the country’s slowest pace since the first quarter of 1992 — the earliest quarterly data on record, according to Reuters. China’s statistics bureau said the economy
China posts its lowest quarterly growth in 27 years as the trade war drags on Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: huileng tan
Keywords: news, cnbc, companies, countrys, drags, growth, 27, quarter, chinas, quarterly, lowest, economy, trade, war, bureau, statistics, 62, china, posts


China posts its lowest quarterly growth in 27 years as the trade war drags on

China released second-quarter figures on Monday showing that its economy slowed to 6.2% — the weakest rate in at least 27 years, as the country’s trade war with the U.S. took its toll.

From April to June, China’s economy grew 6.2% from a year ago, the country’s statistics bureau said on Monday. That was in line with the expectations of analysts polled by Reuters, and lower than the 6.4% year-on-year growth in the first quarter of 2019.

The second quarter economic growth was the country’s slowest pace since the first quarter of 1992 — the earliest quarterly data on record, according to Reuters.

China’s statistics bureau said the economy faces a complex situation with increasing external uncertainties, Reuters reported. The world’s second largest economy also faces new downward pressures and will try to ensure steady economic growth, the statistics bureau added.

China’s months-long trade dispute with the U.S. has weighed on its economy.

“Uncertainty caused by the US-China trade war was an important factor and we think this will persist, despite the recent tariff truce, ” said Tom Rafferty, principal economist for China at The Economist Intelligence Unit.

“Businesses remain skeptical that the two countries will reach a broader trade agreement and recognise that trade tensions may escalate again,” wrote Rafferty in a note on Monday.

One analyst said he will be watching China’s employment numbers more closely for a better read of the economy.

“Are factories shedding workers as their order book falls? Because that leads to the overall target of saying ‘we want to grow employment’ — and the social structure of China hinges on that, and I think that’s very important for the authorities,” said Colin Graham, Chief Investment Officer of multi asset solutions at Eastspring Investments.

Graham said there is room for the People’s Bank of China to introduce more fiscal stimulus in the months ahead to steady the economy.

“They have room to make sure the economy doesn’t slow too quickly,” Graham told CNBC’s “Street Signs” on Monday after the GDP numbers were released. He said he expected China’s 2019 full-year GDP growth to be flat at between 6.2% and 6.3% from a year ago.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: huileng tan
Keywords: news, cnbc, companies, countrys, drags, growth, 27, quarter, chinas, quarterly, lowest, economy, trade, war, bureau, statistics, 62, china, posts


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

McKinsey research finds the world becoming more exposed to China — but not the reverse

The world has become more economically exposed to China at a time when the Asian giant is increasingly relying on its own consumers to boost growth, according to a July report by consultancy McKinsey and Company. The findings by McKinsey come as China is locked in a year-long tariff fight with the U.S. that has spilled into areas such as technology and security. But the report by McKinsey found that consumption contributed to more than 60% of China’s growth during 11 out of 16 quarters — from Ja


The world has become more economically exposed to China at a time when the Asian giant is increasingly relying on its own consumers to boost growth, according to a July report by consultancy McKinsey and Company. The findings by McKinsey come as China is locked in a year-long tariff fight with the U.S. that has spilled into areas such as technology and security. But the report by McKinsey found that consumption contributed to more than 60% of China’s growth during 11 out of 16 quarters — from Ja
McKinsey research finds the world becoming more exposed to China — but not the reverse Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: yen nee lee
Keywords: news, cnbc, companies, finds, research, exposed, mckinsey, growth, yearlong, asian, world, economy, report, trade, reverse, chinas, reliance, china


McKinsey research finds the world becoming more exposed to China — but not the reverse

The world has become more economically exposed to China at a time when the Asian giant is increasingly relying on its own consumers to boost growth, according to a July report by consultancy McKinsey and Company.

The findings by McKinsey come as China is locked in a year-long tariff fight with the U.S. that has spilled into areas such as technology and security. Economists generally predicted that the Chinese economy — instead of the U.S. — will experience a larger hit from elevated tariffs partly due to the Asian country’s relatively heavier reliance on exports.

But the report by McKinsey found that consumption contributed to more than 60% of China’s growth during 11 out of 16 quarters — from January 2015 to December 2018.

That means China’s economy has been reducing its reliance on trade as a source of growth. In fact, the study found that China’s net trade — the value of total exports minus that of imports — “actually made a negative contribution” to growth last year.

“I think that’s one of the things they’re trying to do: To build a more robust, a more diversified economy,” Oliver Tonby, McKinsey’s chairman in Asia, told CNBC’s “Squawk Box” on Monday.


Company: cnbc, Activity: cnbc, Date: 2019-07-15  Authors: yen nee lee
Keywords: news, cnbc, companies, finds, research, exposed, mckinsey, growth, yearlong, asian, world, economy, report, trade, reverse, chinas, reliance, china


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Asia stocks edge up; China’s June exports fall less than expected

Meanwhile, China’s trade with the U.S. declined in the first half of the year, amid an impasse between the two economic giants. The Nikkei 225 in Japan closed 0.2% higher at 21,685.90, while the Topix index fell 0.15% to end its trading day at 1,576.31. Data on Friday showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period. Economists polled by Reuters had expected China’s June exports to have declined 2% from a year ago, while


Meanwhile, China’s trade with the U.S. declined in the first half of the year, amid an impasse between the two economic giants. The Nikkei 225 in Japan closed 0.2% higher at 21,685.90, while the Topix index fell 0.15% to end its trading day at 1,576.31. Data on Friday showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period. Economists polled by Reuters had expected China’s June exports to have declined 2% from a year ago, while
Asia stocks edge up; China’s June exports fall less than expected Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: eustance huang
Keywords: news, cnbc, companies, close, higher, trade, fell, trading, stocks, exports, chinas, showed, expected, index, declined, edge, fall, asia


Asia stocks edge up; China's June exports fall less than expected

Stocks in major Asian stock markets mostly closed higher on Friday. Meanwhile, China’s trade with the U.S. declined in the first half of the year, amid an impasse between the two economic giants.

The Nikkei 225 in Japan closed 0.2% higher at 21,685.90, while the Topix index fell 0.15% to end its trading day at 1,576.31. Over in South Korea, the Kospi advanced 0.29% to close at 2,086.66.

Australia’s S&P/ASX 200 slipped 0.29% to close at 6,696.50.

Mainland Chinese stocks rose on the day, with the Shanghai composite up 0.44% to 2,930.55 and the Shenzhen composite 0.506% higher to 1,556.77. The Shenzhen component also gained 0.66% to close at 9,213.38.

Hong Kong’s Hang Seng index added 0.23%, as of its final hour of trading. Overall, MSCI’s broadest index of Asia-Pacific shares outside Japan declined fractionally.

Data on Friday showed that China’s dollar-denominated exports fell 1.3% in June from a year ago while imports fell 7.3% in the same period. Economists polled by Reuters had expected China’s June exports to have declined 2% from a year ago, while imports were expected to have contracted 4.5% from a year earlier.

In the first half of the year, China’s total trade with the U.S. was down 9%, customs data showed.


Company: cnbc, Activity: cnbc, Date: 2019-07-12  Authors: eustance huang
Keywords: news, cnbc, companies, close, higher, trade, fell, trading, stocks, exports, chinas, showed, expected, index, declined, edge, fall, asia


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

China’s soybean demand is ‘surprisingly’ strong despite continued swine fever outbreak

Soybean demand in China appears to be surprisingly robust despite the widespread culling of pigs due to African swine fever. “If China loses about 40% or more of their hogs, we would normally assume soybean demand would be down a large amount as well. Dutch agribusiness lender Rabobank said in a June report that losses in pig herd are “difficult to estimate” and could be anywhere from 20% to 70%. “Even if every pound of pork lost was exactly replaced by one pound of poultry, the overall soybean


Soybean demand in China appears to be surprisingly robust despite the widespread culling of pigs due to African swine fever. “If China loses about 40% or more of their hogs, we would normally assume soybean demand would be down a large amount as well. Dutch agribusiness lender Rabobank said in a June report that losses in pig herd are “difficult to estimate” and could be anywhere from 20% to 70%. “Even if every pound of pork lost was exactly replaced by one pound of poultry, the overall soybean
China’s soybean demand is ‘surprisingly’ strong despite continued swine fever outbreak Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: huileng tan
Keywords: news, cnbc, companies, demand, pig, feed, china, food, chinas, friedrichs, surprisingly, hogs, herd, outbreak, despite, strong, fever, swine, continued, soybean, pork


China's soybean demand is 'surprisingly' strong despite continued swine fever outbreak

A hired hand feeds a sow which recently gave birth to a new litter at the Grand Canal Pig Farm in Jiaxing, in China’s Zhejiang province.

Soybean demand in China appears to be surprisingly robust despite the widespread culling of pigs due to African swine fever.

That may be indicating that farmers are switching from food waste to manufactured feed, according to one analyst, which could mean better-than-expected demand will persist.

The Chinese use of soybeans is an important metric for the country’s trade relationships. Since China is the world’s top buyer of the oilseeds, it could give some support to American exports as shipments for the current marketing year may be on pace to top U.S. government forecasts, a recent Reuters analysis showed.

China’s sustained demand for soybeans has been called into question not just by trade war tensions but also by a raging outbreak of African swine fever, which has forced farmers to cull a significant percentage of their pigs.

Nevertheless, China’s need for the feed material seems to be defying expectations.

“The soybean crushing rate and soybean demand is down compared to last year at this time, but is still surprisingly strong given how many hogs China has lost,” said Darin Friedrichs, senior Asia commodity analyst at INTL FCStone.

“If China loses about 40% or more of their hogs, we would normally assume soybean demand would be down a large amount as well. At this point it’s maybe only down 5-10% or so which is surprising,” Friedrichs told CNBC.

However, China-based firms such as Cofeed are estimating year-to-date figures for certain soybean processing fell just 3.6% from a year ago, Friedrichs said.

Analysts have been struggling to assess the severity of the virus on China’s pig herds. Dutch agribusiness lender Rabobank said in a June report that losses in pig herd are “difficult to estimate” and could be anywhere from 20% to 70%.

China, which produces half the world’s pork, said in June its sow herd declined by a record 23.9% in May from a year ago, a slightly deeper drop than for the overall pig herd, Reuters reported. The government’s figures have, according to Rabobank, represented “one of the most optimistic estimates we have seen.”

The decline in pork supply in China has pushed up prices of food in the country and spurred consumers to eat other proteins such as chicken or seafood.

However, alternative meat sources such as poultry or seafood do not consume as much feed as pigs, said Friedrichs.

“Even if every pound of pork lost was exactly replaced by one pound of poultry, the overall soybean demand would be lower,” Friedrichs added in his report.

So, “perhaps this all comes down to the question of how much food waste was being fed to hogs,” Friedrichs said.


Company: cnbc, Activity: cnbc, Date: 2019-07-08  Authors: huileng tan
Keywords: news, cnbc, companies, demand, pig, feed, china, food, chinas, friedrichs, surprisingly, hogs, herd, outbreak, despite, strong, fever, swine, continued, soybean, pork


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

China says there will be no trade deal unless existing tariffs are stripped

Chinese President Xi Jinping (R) and US President Donald Trump attend their bilateral meeting on the sidelines of the G20 Summit in Osaka on June 29, 2019. The U.S. has to lift all the tariffs placed on Chinese goods if there is to be a trade deal, China’s Ministry of Commerce said on Thursday. “If the two sides are to reach a deal, all imposed tariffs must be removed,” Ministry of Commerce spokesman Gao Feng said on Thursday. “China’s attitude on that is clear and consistent.”


Chinese President Xi Jinping (R) and US President Donald Trump attend their bilateral meeting on the sidelines of the G20 Summit in Osaka on June 29, 2019. The U.S. has to lift all the tariffs placed on Chinese goods if there is to be a trade deal, China’s Ministry of Commerce said on Thursday. “If the two sides are to reach a deal, all imposed tariffs must be removed,” Ministry of Commerce spokesman Gao Feng said on Thursday. “China’s attitude on that is clear and consistent.”
China says there will be no trade deal unless existing tariffs are stripped Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: yun li
Keywords: news, cnbc, companies, stripped, commerce, ministry, china, unless, chinese, chinas, trade, trump, xi, existing, tariffs, deal, president


China says there will be no trade deal unless existing tariffs are stripped

Chinese President Xi Jinping (R) and US President Donald Trump attend their bilateral meeting on the sidelines of the G20 Summit in Osaka on June 29, 2019.

The U.S. has to lift all the tariffs placed on Chinese goods if there is to be a trade deal, China’s Ministry of Commerce said on Thursday.

“If the two sides are to reach a deal, all imposed tariffs must be removed,” Ministry of Commerce spokesman Gao Feng said on Thursday. “China’s attitude on that is clear and consistent.”


Company: cnbc, Activity: cnbc, Date: 2019-07-05  Authors: yun li
Keywords: news, cnbc, companies, stripped, commerce, ministry, china, unless, chinese, chinas, trade, trump, xi, existing, tariffs, deal, president


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Private survey of China’s factory activity in June shows lowest reading since January

China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey. The PMI reading for May was 50.2. PMI readings above 50 indicate expansion, while those below that signal contraction. The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator, features a bigger mix of small- and medium-sized firms.


China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey. The PMI reading for May was 50.2. PMI readings above 50 indicate expansion, while those below that signal contraction. The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator, features a bigger mix of small- and medium-sized firms.
Private survey of China’s factory activity in June shows lowest reading since January Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: huileng tan
Keywords: news, cnbc, companies, lowest, chinas, pmi, factory, survey, reading, caixin, shows, zhong, readings, private, orders, activity, indicator, polled


Private survey of China's factory activity in June shows lowest reading since January

China’s manufacturing activity shrank unexpectedly in June, coming in at its worst reading since January, according to a private survey.

The Caixin/Markit factory Purchasing Managers’ Index for June was 49.4 — the lowest since January when the indicator came in at 48.3.

Analysts polled by Reuters had expected the indicator to come in at 50. The PMI reading for May was 50.2.

PMI readings above 50 indicate expansion, while those below that signal contraction.

The lackluster reading was due to new orders falling into contractionary territory, pointing to shrinking domestic demand, said Zhengsheng Zhong, director of macroeconomic analysis at CEBM Group, a subsidiary of Caixin. The index measuring new export orders was also in negative territory,.

“Overall, China’s economy came under further pressure in June,” Zhong wrote in a report.

“It’s crucial for policymakers to step up countercyclical policies. New types of infrastructure, high-tech manufacturing and consumption are likely to be the main policy focuses,” Zhong added.

The Caixin survey finding was in line with readings from China’s official PMI which stood at 49.4 in June, contracting more than expected, according to China’s National Bureau of Statistics on Sunday. That was unchanged from the previous month. Analysts polled by Reuters had predicted a reading of 49.5.

The official PMI survey typically polls a large proportion of big businesses and state-owned enterprises. The Caixin indicator, features a bigger mix of small- and medium-sized firms.

The PMI is a survey of businesses about the operating environment. Such data offer a first glimpse into what’s happening in an economy, as they are usually among the first major economic indicators released each month.

For China, the PMI is among economic indicators that investors globally watch closely for signs of trouble amid domestic headwinds and the ongoing U.S.-China trade dispute.


Company: cnbc, Activity: cnbc, Date: 2019-07-01  Authors: huileng tan
Keywords: news, cnbc, companies, lowest, chinas, pmi, factory, survey, reading, caixin, shows, zhong, readings, private, orders, activity, indicator, polled


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post