Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4%

Asia markets fell sharply on Thursday, with the stock indexes in Shanghai and Shenzhen both tumbling more than 5 percent. In the Greater China region, the Hang Seng index was down by 3.88 percent in afternoon trade. Over on the mainland, the Shanghai composite fell 5.22 percent to close at 2,583.46 and the Shenzhen composite plunged 6.445 percent to end at 1,293.90. The fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information


Asia markets fell sharply on Thursday, with the stock indexes in Shanghai and Shenzhen both tumbling more than 5 percent. In the Greater China region, the Hang Seng index was down by 3.88 percent in afternoon trade. Over on the mainland, the Shanghai composite fell 5.22 percent to close at 2,583.46 and the Shenzhen composite plunged 6.445 percent to end at 1,293.90. The fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information
Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4% Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: eustance huang
Keywords: news, cnbc, companies, shenzhen, day, fell, dropped, asia, shanghai, close, nearly, markets, nikkei, topples, end, stocks, index, crumble, composite, declines


Asia stocks crumble: Shanghai topples more than 5%, Nikkei declines nearly 4%

Asia markets fell sharply on Thursday, with the stock indexes in Shanghai and Shenzhen both tumbling more than 5 percent.

In the Greater China region, the Hang Seng index was down by 3.88 percent in afternoon trade. Over on the mainland, the Shanghai composite fell 5.22 percent to close at 2,583.46 and the Shenzhen composite plunged 6.445 percent to end at 1,293.90.

The fall in the Shanghai index was its worst day since February 2016, according to Chinese financial services firm Wind Information.

In Taiwan, the tech-heavy Taiex dropped by 6.31 percent to close at 9,806.11, with shares of lens maker and Apple supplier Largan Precision plunging 9.89 percent.

Japan’s markets also faltered. The Nikkei 225 dropped by 3.89 percent to close at 22,590.86 while the Topix index declined by 3.52 percent to end the trading day at 1,701.86, with major sectors down.


Company: cnbc, Activity: cnbc, Date: 2018-10-11  Authors: eustance huang
Keywords: news, cnbc, companies, shenzhen, day, fell, dropped, asia, shanghai, close, nearly, markets, nikkei, topples, end, stocks, index, crumble, composite, declines


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Tesla is close to securing land for its Shanghai factory, report says

Tesla is moving toward securing a $145 million plot of land for its planned factory in Shanghai, China, Bloomberg reported Wednesday, citing unnamed sources. The automaker is the sole bidder on the plot of land, and the Shanghai government could award the deal to Tesla as soon as this month, the report said. Tesla intends to build a factory there capable of making 500,000 cars a year. In its ongoing trade war with the United States, China has imposed a total 40 percent tariff rate on Tesla vehic


Tesla is moving toward securing a $145 million plot of land for its planned factory in Shanghai, China, Bloomberg reported Wednesday, citing unnamed sources. The automaker is the sole bidder on the plot of land, and the Shanghai government could award the deal to Tesla as soon as this month, the report said. Tesla intends to build a factory there capable of making 500,000 cars a year. In its ongoing trade war with the United States, China has imposed a total 40 percent tariff rate on Tesla vehic
Tesla is close to securing land for its Shanghai factory, report says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: robert ferris, wang zhao, afp, getty images
Keywords: news, cnbc, companies, close, shanghai, china, cars, vehicles, production, tesla, land, report, factory, plot, chinese, securing


Tesla is close to securing land for its Shanghai factory, report says

Tesla is moving toward securing a $145 million plot of land for its planned factory in Shanghai, China, Bloomberg reported Wednesday, citing unnamed sources.

The automaker is the sole bidder on the plot of land, and the Shanghai government could award the deal to Tesla as soon as this month, the report said. Tesla intends to build a factory there capable of making 500,000 cars a year.

The move is the latest in Tesla’s plan to boost production in the world’s largest car market, which is known for favoring locally made vehicles over imports. Unlike many foreign automakers, Tesla has no joint partnerships with Chinese companies and no production currently in the country.

In its ongoing trade war with the United States, China has imposed a total 40 percent tariff rate on Tesla vehicles. Including the costs of shipping, Tesla is operating at a 55 to 60 percent cost disadvantage compared with Chinese-made cars, the company said in early October.

Tesla said it plans to raise most of the money it needs to build the factory through Chinese banks.

Tesla declined to comment on the report.

Read the full story in Bloomberg.


Company: cnbc, Activity: cnbc, Date: 2018-10-10  Authors: robert ferris, wang zhao, afp, getty images
Keywords: news, cnbc, companies, close, shanghai, china, cars, vehicles, production, tesla, land, report, factory, plot, chinese, securing


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders

US-China trade tensions are the ‘tip of the iceberg,’ analyst says 5 Hours Ago | 02:26On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend. The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The People’s Bank of China announced on Sunday it was cutting the r


US-China trade tensions are the ‘tip of the iceberg,’ analyst says 5 Hours Ago | 02:26On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend. The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The People’s Bank of China announced on Sunday it was cutting the r
China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: eustance huang
Keywords: news, cnbc, companies, central, 37, trade, requirement, markets, cuts, bank, ratio, composite, worst, china, shanghai, fall, reserve, lenders, banks, rrr


China markets fall more than 3.7 percent after central bank cuts reserve ratio for lenders

US-China trade tensions are the ‘tip of the iceberg,’ analyst says 5 Hours Ago | 02:26

On Monday, the Shanghai market posted its worst daily performance in months on Monday after the central bank cut the reserve requirement for banks over the weekend.

The Shanghai composite fell 3.72 percent to close at around 2,716.51 — which marked its largest decline since June 19, according to Chinese financial services firm Wind Information. The Shenzhen composite dropped by 3.834 percent to end at about 1,386.28 on the first trading day since the Golden Week holidays ended. As of 3:21 p.m. HK/SIN, Hong Kong’s Hang Seng index traded lower by 1.2 percent.

The People’s Bank of China announced on Sunday it was cutting the reserve requirement ratio (RRR) — or the amount of cash that banks have to hold as reserves — by 100 basis points effective Oct. 15. The RRR is currently 15.5 percent for large commercial banks and 13.5 percent for smaller lenders.

The move by China’s central bank, its fourth in 2018, came amid concerns about the economic impact of Beijing’s ongoing trade war with Washington.


Company: cnbc, Activity: cnbc, Date: 2018-10-08  Authors: eustance huang
Keywords: news, cnbc, companies, central, 37, trade, requirement, markets, cuts, bank, ratio, composite, worst, china, shanghai, fall, reserve, lenders, banks, rrr


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

GM to recall more than 3.3 million vehicles in China

General Motors’ joint venture in China, Shanghai GM, will recall more than 3.3 million Buick, Chevrolet and Cadillac vehicles from Oct. 20 because of a defect with the suspension system, China’s market regulator said on Saturday. The recall includes cars produced between 2013 and 2018, the State Administration for Market Regulation said in a statement. GM will contact those affected and repair the vehicles free of charge, it said.


General Motors’ joint venture in China, Shanghai GM, will recall more than 3.3 million Buick, Chevrolet and Cadillac vehicles from Oct. 20 because of a defect with the suspension system, China’s market regulator said on Saturday. The recall includes cars produced between 2013 and 2018, the State Administration for Market Regulation said in a statement. GM will contact those affected and repair the vehicles free of charge, it said.
GM to recall more than 3.3 million vehicles in China Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-29  Authors: str, afp, getty images
Keywords: news, cnbc, companies, 33, market, vehicles, suspension, venture, state, statementgm, gm, system, recall, million, saturdaythe, china, shanghai


GM to recall more than 3.3 million vehicles in China

General Motors’ joint venture in China, Shanghai GM, will recall more than 3.3 million Buick, Chevrolet and Cadillac vehicles from Oct. 20 because of a defect with the suspension system, China’s market regulator said on Saturday.

The recall includes cars produced between 2013 and 2018, the State Administration for Market Regulation said in a statement.

GM will contact those affected and repair the vehicles free of charge, it said.


Company: cnbc, Activity: cnbc, Date: 2018-09-29  Authors: str, afp, getty images
Keywords: news, cnbc, companies, 33, market, vehicles, suspension, venture, state, statementgm, gm, system, recall, million, saturdaythe, china, shanghai


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Trade war: American autos look to be hit the most by both US and China tariffs

The move came as both countries implemented tariffs this summer on $50 billion worth of goods from the other. The combined tariffs are reducing profits and increasing manufacturing costs for more than 60 percent of respondents in the automotive industry, the survey found. The survey of more than 430 AmCham China and AmCham Shanghai member companies, including 36 in automotive and transportation, was conducted between Aug. 29 and Sept. 5. Members of AmCham China include local branches of General


The move came as both countries implemented tariffs this summer on $50 billion worth of goods from the other. The combined tariffs are reducing profits and increasing manufacturing costs for more than 60 percent of respondents in the automotive industry, the survey found. The survey of more than 430 AmCham China and AmCham Shanghai member companies, including 36 in automotive and transportation, was conducted between Aug. 29 and Sept. 5. Members of AmCham China include local branches of General
Trade war: American autos look to be hit the most by both US and China tariffs Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-14  Authors: evelyn cheng, bobyip
Keywords: news, cnbc, companies, autos, tariffs, trade, shanghai, hit, china, billion, amcham, respondents, survey, look, companies, american, war, chinese, industry


Trade war: American autos look to be hit the most by both US and China tariffs

U.S. automakers in China are feeling the most pain as some American companies are getting hurt by new tariffs from both the White House and Beijing, according to a survey released this week from the American Chamber of Commerce in Shanghai and Beijing-based American Chamber of Commerce in China.

The automobile industry is in the crosshairs of rising trade tensions between the two countries. In July, China raised the tariff on imports of U.S. autos to 40 percent just days after broadly cutting duties on foreign-made vehicles and parts to 15 percent from 25 percent.

The move came as both countries implemented tariffs this summer on $50 billion worth of goods from the other. Vehicles and components appeared on both lists. U.S. President Donald Trump’s administration has also proposed duties on an additional $200 billion worth of Chinese goods, while Beijing is planning counter tariffs on $60 billion worth of U.S. goods.

Industries of U.S. businesses operating in China that are most impacted by initial $50 billion tariffs from both sides

Source: AmCham China, AmCham Shanghai

The initial round of U.S. tariffs has affected 80.5 percent of survey respondents in the automotive industry, and 75 percent say the Chinese duties have hit them. That makes the industry the only one to appear in the ranks of the three or four most impacted by tariffs from both sides.

Overall, the survey found more than 60 percent of respondents are affected by the U.S. and Chinese tariffs, and significantly more expect negative impact from the proposed second round of duties.

U.S. companies that have supply chains running through China or that conduct a significant part of their operations there face “dual headwinds” from trade tensions, said Hannah Anderson, global market strategist at J.P. Morgan Asset Management. Such challenges “are especially strong for companies that engage in a high degree of specialization and invest significantly for innovation.”

The combined tariffs are reducing profits and increasing manufacturing costs for more than 60 percent of respondents in the automotive industry, the survey found.

As a result of such business pressures, roughly half of respondents in the automotive industry said they are looking to source components or assembly outside of China and the U.S., the survey said. A quarter of companies in the industry are relocating China-based manufacturing to southeast Asia, the report said.

The survey of more than 430 AmCham China and AmCham Shanghai member companies, including 36 in automotive and transportation, was conducted between Aug. 29 and Sept. 5.

Members of AmCham China include local branches of General Motors, Ford, BMW, Goodyear and Harley-Davidson, according to the chamber’s website. AmCham Shanghai does not publicly disclose its membership.

But since companies submitted responses anonymously, it is unclear to what extent high-profile U.S. automakers are affected.

Publicly, Ford said in late August that as a result of potential increases in U.S. tariffs, it has decided not to sell a small Chinese-made vehicle in America.

Earlier in August, Morgan Stanley cut its price target and earnings per share estimates on General Motors due to concerns about a slowdown in the Chinese market.

“If almost a half of American companies anticipate a strong negative impact from the next round of U.S. tariffs, then the U.S. administration will be hurting the companies it should be helping,” Eric Zheng, chairman of AmCham Shanghai, said in a statement. “We support President Trump’s efforts to reset U.S.-China trade relations, address long-standing inequities and level the playing field. But we can do so through means other than blanket tariffs.”


Company: cnbc, Activity: cnbc, Date: 2018-09-14  Authors: evelyn cheng, bobyip
Keywords: news, cnbc, companies, autos, tariffs, trade, shanghai, hit, china, billion, amcham, respondents, survey, look, companies, american, war, chinese, industry


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Chinese investors expect a turnaround in the beaten-down stock market, survey shows

A majority of mainland Chinese investors expect the battered local stock market to rise over the next 12 months, according to a J.P. Morgan Asset Management survey released Monday. The Shanghai composite is one of the worst performing stock indexes in the world this year. In June, the index fell 20 percent from a recent high, or into bear market territory. Despite the Shanghai market’s drop this summer, 73 percent of roughly 200 investment professionals in Shanghai and Beijing said in August the


A majority of mainland Chinese investors expect the battered local stock market to rise over the next 12 months, according to a J.P. Morgan Asset Management survey released Monday. The Shanghai composite is one of the worst performing stock indexes in the world this year. In June, the index fell 20 percent from a recent high, or into bear market territory. Despite the Shanghai market’s drop this summer, 73 percent of roughly 200 investment professionals in Shanghai and Beijing said in August the
Chinese investors expect a turnaround in the beaten-down stock market, survey shows Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-09-03  Authors: evelyn cheng, chinafotopress, getty images
Keywords: news, cnbc, companies, shows, turnaround, survey, stocks, market, morgan, months, chinese, stock, expect, investors, beatendown, jp, shanghai


Chinese investors expect a turnaround in the beaten-down stock market, survey shows

A majority of mainland Chinese investors expect the battered local stock market to rise over the next 12 months, according to a J.P. Morgan Asset Management survey released Monday.

The Shanghai composite is one of the worst performing stock indexes in the world this year. In June, the index fell 20 percent from a recent high, or into bear market territory. It remains more than 15 percent lower for 2018, hit by investors’ worries about a slowing Chinese economy, authorities’ efforts to reduce reliance on debt-fueled growth and rising trade tensions with the U.S.

In contrast, U.S. stocks are at record highs.

Despite the Shanghai market’s drop this summer, 73 percent of roughly 200 investment professionals in Shanghai and Beijing said in August they predicted positive returns for domestic stocks, known as A shares, the J.P. Morgan survey showed.

Investor predictions for the performance of Chinese stocks over the next 12 months


Company: cnbc, Activity: cnbc, Date: 2018-09-03  Authors: evelyn cheng, chinafotopress, getty images
Keywords: news, cnbc, companies, shows, turnaround, survey, stocks, market, morgan, months, chinese, stock, expect, investors, beatendown, jp, shanghai


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Inside the world’s largest Starbucks, which draws long lines in Shanghai

It’s not uncommon for a line to form outside the Starbucks Reserve Roastery in Shanghai on weekends, and even on weekday nights. There may be another standalone Starbucks coffee shop right across the street, but the customers waiting in line aren’t here just for a caffeine fix. For them, it’s about hanging out inside the largest Starbucks in the world, which offers a high-end experience in a flashy building spanning nearly 30,000 square feet. There are only two Starbucks Reserve Roastery outlets


It’s not uncommon for a line to form outside the Starbucks Reserve Roastery in Shanghai on weekends, and even on weekday nights. There may be another standalone Starbucks coffee shop right across the street, but the customers waiting in line aren’t here just for a caffeine fix. For them, it’s about hanging out inside the largest Starbucks in the world, which offers a high-end experience in a flashy building spanning nearly 30,000 square feet. There are only two Starbucks Reserve Roastery outlets
Inside the world’s largest Starbucks, which draws long lines in Shanghai Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-24  Authors: uptin saiidi
Keywords: news, cnbc, companies, starbucks, shanghai, lines, largest, world, inside, reserve, coffee, outside, draws, prepared, square, pizza, long, worlds, roastery


Inside the world's largest Starbucks, which draws long lines in Shanghai

It’s not uncommon for a line to form outside the Starbucks Reserve Roastery in Shanghai on weekends, and even on weekday nights.

Donning a suit and tie, with an earpiece in his ear, a security guard stands outside the world’s largest Starbucks — which, given its hip exterior, could easily be mistaken for a nightclub.

There may be another standalone Starbucks coffee shop right across the street, but the customers waiting in line aren’t here just for a caffeine fix.

For them, it’s about hanging out inside the largest Starbucks in the world, which offers a high-end experience in a flashy building spanning nearly 30,000 square feet. It even has an in-house map, which looks very much like the something for an amusement park.

There are only two Starbucks Reserve Roastery outlets in the world: one in Shanghai and the other in Seattle where the company is headquartered. The coffee giant already has plans to open more outlets globally in locations such as Milan, Tokyo, New York and Chicago.

The Shanghai superstore, which opened in December 2017, features its own roasting facility and hand-crafted coffee bars. It has new offerings — such as nitro draft lattes and alcoholic drinks — which are not found in normal Starbucks outlets.

It is also home to the innovation center where new concoctions such as beer infused with coffee are created.

The food there is prepared by Starbucks strategic partner Princi Café — a Milan-based cafe that offers pastries, pizza and alcoholic drinks.

Inside the Shanghai store, staff members go around taking orders with their tablets instead of customers lining up behind the counter to make their purchases.

But be prepared. Items aren’t cheap here: One serving of a pizza square can cost 78 yuan, or about $11.40.


Company: cnbc, Activity: cnbc, Date: 2018-08-24  Authors: uptin saiidi
Keywords: news, cnbc, companies, starbucks, shanghai, lines, largest, world, inside, reserve, coffee, outside, draws, prepared, square, pizza, long, worlds, roastery


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Waymo sets up subsidiary in Shanghai as Google plans China push

Alphabet Inc’s self-driving unit Waymo has set up a subsidiary in Shanghai, according to a business registration filing, the latest sign that the U.S. internet giant is attempting to make new inroads into China. Waymo established a wholly-owned company called Huimo Business Consulting (Shanghai) Co on May 22 in Shanghai’s free trade zone with registered capital of 3.5 million yuan ($509,165), according to China’s National Enterprise Information Publicity System. Its scope includes business and l


Alphabet Inc’s self-driving unit Waymo has set up a subsidiary in Shanghai, according to a business registration filing, the latest sign that the U.S. internet giant is attempting to make new inroads into China. Waymo established a wholly-owned company called Huimo Business Consulting (Shanghai) Co on May 22 in Shanghai’s free trade zone with registered capital of 3.5 million yuan ($509,165), according to China’s National Enterprise Information Publicity System. Its scope includes business and l
Waymo sets up subsidiary in Shanghai as Google plans China push Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-24
Keywords: news, cnbc, companies, subsidiary, business, whollyowned, shanghai, selfdriving, ways, china, sets, push, google, plans, according, waymo, chinas, zone, incs, yuan


Waymo sets up subsidiary in Shanghai as Google plans China push

Alphabet Inc’s self-driving unit Waymo has set up a subsidiary in Shanghai, according to a business registration filing, the latest sign that the U.S. internet giant is attempting to make new inroads into China.

Waymo established a wholly-owned company called Huimo Business Consulting (Shanghai) Co on May 22 in Shanghai’s free trade zone with registered capital of 3.5 million yuan ($509,165), according to China’s National Enterprise Information Publicity System.

Its scope includes business and logistics consultancy as well as services related to the design and testing of self-driving car parts, said the document, which also listed the firm’s legal representative as Kevin Bradley Vosen.

Waymo did not immediately respond to a request for comment.

Alphabet Inc’s Google, which quit China’s search engine market in 2010, has been actively seeking ways to re-enter the sector in the country where many of its products are blocked by regulators.


Company: cnbc, Activity: cnbc, Date: 2018-08-24
Keywords: news, cnbc, companies, subsidiary, business, whollyowned, shanghai, selfdriving, ways, china, sets, push, google, plans, according, waymo, chinas, zone, incs, yuan


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Two US airlines cut China routes as state-backed rivals turn up heat

Two U.S. airlines on Tuesday cut routes between China and the United States, underscoring increasingly tough competition from state-backed Chinese rivals as they aggressively expand their fleets with cut-price tickets. American Airlines, the largest U.S. carrier by passengers, said it would drop a route between Chicago and Shanghai, canceling the second direct flight from the U.S. city to China in four months. Competition from Chinese airlines is expected to grow with the anticipated easing of C


Two U.S. airlines on Tuesday cut routes between China and the United States, underscoring increasingly tough competition from state-backed Chinese rivals as they aggressively expand their fleets with cut-price tickets. American Airlines, the largest U.S. carrier by passengers, said it would drop a route between Chicago and Shanghai, canceling the second direct flight from the U.S. city to China in four months. Competition from Chinese airlines is expected to grow with the anticipated easing of C
Two US airlines cut China routes as state-backed rivals turn up heat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-22  Authors: scott olson, getty images news, getty images
Keywords: news, cnbc, companies, chinese, rivals, airlines, chinas, cut, boyd, turn, heat, statebacked, routes, beijing, route, shanghai, president, china, aviation


Two US airlines cut China routes as state-backed rivals turn up heat

Two U.S. airlines on Tuesday cut routes between China and the United States, underscoring increasingly tough competition from state-backed Chinese rivals as they aggressively expand their fleets with cut-price tickets.

American Airlines, the largest U.S. carrier by passengers, said it would drop a route between Chicago and Shanghai, canceling the second direct flight from the U.S. city to China in four months. It had canceled a flight to Beijing in May, although it still operates daily flights to the capital from Los Angeles and Dallas-Fort Worth, Texas.

“The two China routes … have been colossal loss makers for us,” said Vasu Raja, vice president of network and schedule planning, adding that high fuel costs had also made the route unsustainable.

Hawaiian Airlines said it would from October suspend its thrice-weekly nonstop service between Honolulu and Beijing, which it opened in 2014, citing slower-than-expected growth in demand.

Competition from Chinese airlines is expected to grow with the anticipated easing of China’s near-decade-old “one route, one airline” policy, which would allow more local airlines to fly long-haul international routes.

“U.S. airlines are at a severe disadvantage,” said Mike Boyd, president of aviation forecaster Boyd Group. “The majority of demand is China-generated, and that gives Chinese carriers the advantage.”

Chinese passengers arriving at U.S. airports are expected to nearly triple to 12.8 million in 2024 from 4.3 million this year, and the profile is shifting from groups to independent travelers, according to Boyd Group.

United Airlines President Scott Kirby said Shanghai and Beijing had rebounded for the airline after several years of weakness, although revenue per available seat mile was below levels of two or three years ago.

“We’ve had several years of weakness as there was an awful lot of capacity growth out of Beijing and Shanghai,” Kirby said on the sidelines of the International Aviation Forecast Summit in Denver.

American and Hawaiian said the route cancellations were unrelated to demands placed by China’s civil aviation regulator on foreign airlines to amend the way they referred to Hong Kong, Macau and Taiwan on their websites.

Chinese state media had earlier this month singled out the two companies and other U.S. airlines as being among the last firms to comply with China’s demands.

“That issue of how Taiwan was displayed on our website had absolutely zero impact on this decision,” Hawaiian’s chief executive, Peter Ingram, said. “Our economic evaluation was well underway long before that issue arose.”


Company: cnbc, Activity: cnbc, Date: 2018-08-22  Authors: scott olson, getty images news, getty images
Keywords: news, cnbc, companies, chinese, rivals, airlines, chinas, cut, boyd, turn, heat, statebacked, routes, beijing, route, shanghai, president, china, aviation


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post

Why the drop in China’s stock market might not reflect its economic reality

China’s stock market is in terrible shape, but it may not reflect the state of the Chinese economy. Kudlow simply may have looked at the Chinese stock market. “In highly efficient full-production places like the U.S., the stock market is reflective somewhat to what the economy is doing. The Shanghai market staged a huge rally from 2014 into 2015, more than doubling in value, but again collapsed and is trading 45 percent lower since 2015. He agreed with Cashin’s point that the Chinese stock marke


China’s stock market is in terrible shape, but it may not reflect the state of the Chinese economy. Kudlow simply may have looked at the Chinese stock market. “In highly efficient full-production places like the U.S., the stock market is reflective somewhat to what the economy is doing. The Shanghai market staged a huge rally from 2014 into 2015, more than doubling in value, but again collapsed and is trading 45 percent lower since 2015. He agreed with Cashin’s point that the Chinese stock marke
Why the drop in China’s stock market might not reflect its economic reality Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2018-08-17  Authors: bob pisani, zhang peng, lightrocket via getty images
Keywords: news, cnbc, companies, does, reality, colas, market, china, economic, reflect, chinas, drop, versus, shanghai, chinese, stock


Why the drop in China's stock market might not reflect its economic reality

China’s stock market is in terrible shape, but it may not reflect the state of the Chinese economy.

National Economic Council director Larry Kudlow raised eyebrows Thursday when he said in a Cabinet meeting with President Donald Trump that China’s economy “looks terrible.”

But does it really? Most estimates for China’s 2018 economic growth remain near 6.5 percent. That doesn’t mean there aren’t concerns. New U.S. tariffs on Chinese goods are making it more costly for companies there to operate, and China’s central bank has recently been pumping money into its economy.

Kudlow simply may have looked at the Chinese stock market. The Shanghai exchange is down 25 percent from the high it hit at the end of January. He may have assumed that the decline reflects a dramatic deterioration in the Chinese economy.

That, some traders said, would be a mistake.

“I think our dear friend Larry Kudlow is off the mark,” UBS’ Art Cashin said on CNBC on Thursday. “In highly efficient full-production places like the U.S., the stock market is reflective somewhat to what the economy is doing. But there’s almost a total disconnect in China,” he said.

Nick Colas, who runs market analysis firm DataTrek Research, agreed. “The Chinese stock market actually tells us very little about the country’s economic welfare and doesn’t play anywhere near as dominant a role in the lives of its citizens as the US equity market does in America,” he wrote in a recent note to clients.

Colas backed up his assertion by noting that the Shanghai Composite trades for less than half its October 2007 peak, yet China’s economy in the 11 years since then has more than tripled to $13 trillion.

The Shanghai market staged a huge rally from 2014 into 2015, more than doubling in value, but again collapsed and is trading 45 percent lower since 2015.

“This decline has had no discernible impact on consumer spending or business investment over the last 3 years,” Colas said.

Colas also cited a September 2017 Bloomberg article noting that retail investors account for 80 percent of the trading volume on the Shanghai exchange. Colas said those traders can cause individual stock prices to swing wildly on arbitrary and noneconomic information.

He agreed with Cashin’s point that the Chinese stock market is not very efficient and does not necessarily reflect underlying economic realities.

Finally, Colas noted that the allocation of household wealth to stocks in China is relatively minuscule: 4 percent versus 23 percent in the U.S.

In China, households have far more of their wealth in cash (20 percent versus 4 percent in the U.S.) and real estate (65 percent versus 45 percent).

And what about the super rich? Colas noted that they tend to invest in private equity and venture capital rather than having their core holdings in stocks.

The fact that China’s stock market does not necessarily reflect the state of China economy’s has important policy implications: “Further declines in Chinese equities are unlikely to push the country’s leaders into an unfavorable trade deal with the US,” Colas said. “Stocks are just not a large enough part of household net worth there, and the country has a long history of growth despite equity market volatility.”


Company: cnbc, Activity: cnbc, Date: 2018-08-17  Authors: bob pisani, zhang peng, lightrocket via getty images
Keywords: news, cnbc, companies, does, reality, colas, market, china, economic, reflect, chinas, drop, versus, shanghai, chinese, stock


Home Forums

    • Forum
    • Topics
    • Posts
    • Last Post