Xiaomi shares plunge despite the Chinese tech giant’s earnings beat

Chinese smartphone maker Xiaomi saw its stock swoon during Wednesday trade despite posting a fourth-quarter earnings report that beat expectations the previous day. Xiaomi’s net profit for the fourth quarter more than tripled to 1.85 billion yuan (approx. $276 million), beating the 1.7 billion yuan average estimate of 10 analysts, according to Refinitiv data. Still, revenue for the period increased 27 percent to 44.4 billion yuan, which was lower than the 47.4 billion yuan average estimate of 13


Chinese smartphone maker Xiaomi saw its stock swoon during Wednesday trade despite posting a fourth-quarter earnings report that beat expectations the previous day. Xiaomi’s net profit for the fourth quarter more than tripled to 1.85 billion yuan (approx. $276 million), beating the 1.7 billion yuan average estimate of 10 analysts, according to Refinitiv data. Still, revenue for the period increased 27 percent to 44.4 billion yuan, which was lower than the 47.4 billion yuan average estimate of 13
Xiaomi shares plunge despite the Chinese tech giant’s earnings beat Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: eustance huang, josep lago, afp, getty images
Keywords: news, cnbc, companies, yuan, smartphone, chinese, earnings, plunge, billion, tech, successful, beat, reason, 2018, shares, refinitiv, according, revenue, despite, xiaomi, giants


Xiaomi shares plunge despite the Chinese tech giant's earnings beat

Chinese smartphone maker Xiaomi saw its stock swoon during Wednesday trade despite posting a fourth-quarter earnings report that beat expectations the previous day.

In Wednesday’s trading session in Hong Kong, shares of Xiaomi dropped 4.59 percent.

That move came a day after Xiaomi announced quarterly earnings that bested expectations. That’s despite 2018 being the “worst year ever for smartphone shipments,” according to market research company IDC, with tech heavyweights such as Apple and Samsung Electronics all warning of weakening sales.

Xiaomi’s net profit for the fourth quarter more than tripled to 1.85 billion yuan (approx. $276 million), beating the 1.7 billion yuan average estimate of 10 analysts, according to Refinitiv data.

Still, revenue for the period increased 27 percent to 44.4 billion yuan, which was lower than the 47.4 billion yuan average estimate of 13 analysts, according to Refinitiv data.

In an interview with CNBC’s “Squawk Box” ahead of the market open on Wednesday, Xiaomi CFO Shou Zi Chew attributed the company’s fourth-quarter performance to keeping efficiency at “a very high level.”

“Our entire operating expense for the year 2018 was still below 10 percent of our revenue and what we have done is, you know, we kept forcing ourselves to be more efficient as a company and return the savings to our users,” Chew said. “This is the reason why we were successful in 2018 and this is the reason why we will be successful going into the future.”


Company: cnbc, Activity: cnbc, Date: 2019-03-20  Authors: eustance huang, josep lago, afp, getty images
Keywords: news, cnbc, companies, yuan, smartphone, chinese, earnings, plunge, billion, tech, successful, beat, reason, 2018, shares, refinitiv, according, revenue, despite, xiaomi, giants


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China’s new social media craze: Paying to be given compliments online

One group administrator who spoke to CNBC said they offer a service where you can invite another person into a group, and that individual will be given custom-made compliments. The administrator, who asked to remain anonymous, said they charge 15 yuan for three minutes or 25 yuan for five minutes of praise in the WeChat group. You are then invited to one of the groups on WeChat alongside the other person you have nominated. CNBC found a number of postings on Chinese social networking site Douban


One group administrator who spoke to CNBC said they offer a service where you can invite another person into a group, and that individual will be given custom-made compliments. The administrator, who asked to remain anonymous, said they charge 15 yuan for three minutes or 25 yuan for five minutes of praise in the WeChat group. You are then invited to one of the groups on WeChat alongside the other person you have nominated. CNBC found a number of postings on Chinese social networking site Douban
China’s new social media craze: Paying to be given compliments online Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: arjun kharpal, justin chin, bloomberg, getty images, -a kuakuaqun user, encouraging a cnbc reporter to enjoy his time in a
Keywords: news, cnbc, companies, yuan, number, online, paying, social, group, craze, groups, media, praise, chinas, person, given, wechat, administrator, compliments, spare


China's new social media craze: Paying to be given compliments online

“This is awesome! Now you have more spare time. Take this opportunity to enjoy your ‘me time.’ One can be very happy by himself. And you have us here!”

There appears to be varying business models, however. One group administrator who spoke to CNBC said they offer a service where you can invite another person into a group, and that individual will be given custom-made compliments. It could be a friend or partner, for example.

The administrator, who asked to remain anonymous, said they charge 15 yuan for three minutes or 25 yuan for five minutes of praise in the WeChat group. You can send in additional information such as details of your relationship with a person and their likes and dislikes. You are then invited to one of the groups on WeChat alongside the other person you have nominated. And then the compliments begin.

The administrator said he runs the side business in his spare time with friends.

There are also free groups. CNBC found a number of postings on Chinese social networking site Douban for praise groups. On one of the posts, a number was listed. CNBC added that number and the person — known by their WeChat alias “Abelard” — then pulled us into the free praise group they run.


Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: arjun kharpal, justin chin, bloomberg, getty images, -a kuakuaqun user, encouraging a cnbc reporter to enjoy his time in a
Keywords: news, cnbc, companies, yuan, number, online, paying, social, group, craze, groups, media, praise, chinas, person, given, wechat, administrator, compliments, spare


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China’s new social media craze: Paying to be given compliments online

One group administrator who spoke to CNBC said they offer a service where you can invite another person into a group, and that individual will be given custom-made compliments. The administrator, who asked to remain anonymous, said they charge 15 yuan for three minutes or 25 yuan for five minutes of praise in the WeChat group. You are then invited to one of the groups on WeChat alongside the other person you have nominated. CNBC found a number of postings on Chinese social networking site Douban


One group administrator who spoke to CNBC said they offer a service where you can invite another person into a group, and that individual will be given custom-made compliments. The administrator, who asked to remain anonymous, said they charge 15 yuan for three minutes or 25 yuan for five minutes of praise in the WeChat group. You are then invited to one of the groups on WeChat alongside the other person you have nominated. CNBC found a number of postings on Chinese social networking site Douban
China’s new social media craze: Paying to be given compliments online Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: arjun kharpal, justin chin, bloomberg, getty images, -a kuakuaqun user, encouraging a cnbc reporter to enjoy his time in a
Keywords: news, cnbc, companies, yuan, number, online, paying, social, group, craze, groups, media, praise, chinas, person, given, wechat, administrator, compliments, spare


China's new social media craze: Paying to be given compliments online

“This is awesome! Now you have more spare time. Take this opportunity to enjoy your ‘me time.’ One can be very happy by himself. And you have us here!”

There appears to be varying business models, however. One group administrator who spoke to CNBC said they offer a service where you can invite another person into a group, and that individual will be given custom-made compliments. It could be a friend or partner, for example.

The administrator, who asked to remain anonymous, said they charge 15 yuan for three minutes or 25 yuan for five minutes of praise in the WeChat group. You can send in additional information such as details of your relationship with a person and their likes and dislikes. You are then invited to one of the groups on WeChat alongside the other person you have nominated. And then the compliments begin.

The administrator said he runs the side business in his spare time with friends.

There are also free groups. CNBC found a number of postings on Chinese social networking site Douban for praise groups. On one of the posts, a number was listed. CNBC added that number and the person — known by their WeChat alias “Abelard” — then pulled us into the free praise group they run.


Company: cnbc, Activity: cnbc, Date: 2019-03-19  Authors: arjun kharpal, justin chin, bloomberg, getty images, -a kuakuaqun user, encouraging a cnbc reporter to enjoy his time in a
Keywords: news, cnbc, companies, yuan, number, online, paying, social, group, craze, groups, media, praise, chinas, person, given, wechat, administrator, compliments, spare


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Asia markets: Brexit deal, pound and China economic data in focus

Asia Pacific markets traded mixed on Thursday after data showed growth in China’s industrial output fell. Overnight, British lawmakers rejected the idea of leaving the European Union without a Brexit deal in place. The Nikkei 225 in Japan gave up its gains to finish flat at 21,287.02 while the Topix index fell 0.24 percent to 1,588.29. Data on Thursday showed China’s industrial output growth fell to a 17-year low in the first two months of the year, according to Reuters. The on-shore yuan traded


Asia Pacific markets traded mixed on Thursday after data showed growth in China’s industrial output fell. Overnight, British lawmakers rejected the idea of leaving the European Union without a Brexit deal in place. The Nikkei 225 in Japan gave up its gains to finish flat at 21,287.02 while the Topix index fell 0.24 percent to 1,588.29. Data on Thursday showed China’s industrial output growth fell to a 17-year low in the first two months of the year, according to Reuters. The on-shore yuan traded
Asia markets: Brexit deal, pound and China economic data in focus Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: saheli roy choudhury, toshifumi kitamura, afp, getty images
Keywords: news, cnbc, companies, markets, fell, economic, china, asia, showed, midpoint, data, growth, brexit, focus, deal, traded, pound, output, industrial, chinas, index, yuan


Asia markets: Brexit deal, pound and China economic data in focus

Asia Pacific markets traded mixed on Thursday after data showed growth in China’s industrial output fell. Overnight, British lawmakers rejected the idea of leaving the European Union without a Brexit deal in place.

The Nikkei 225 in Japan gave up its gains to finish flat at 21,287.02 while the Topix index fell 0.24 percent to 1,588.29.

In South Korea, the Kospi wavered between gains and losses to close up 0.34 percent at 2,155.68. Hong Kong’s Hang Seng Index was down 0.22 percent in afternoon trade.

Chinese mainland shares withdrew as the Shanghai composite fell 1.2 percent to 2,990.68 while the Shenzhen composite tumbled 2.311 percent.

Data on Thursday showed China’s industrial output growth fell to a 17-year low in the first two months of the year, according to Reuters. That further pointed to an economic slowdown in the world’s second-largest economy. But investments picked up pace as the government fast-tracked more road and rail projects, the news agency added.

Beijing has already pledged hundreds of billions of dollars in tax cuts and infrastructure spending to support the flagging economy.

The on-shore yuan traded at 6.7134 to the dollar at 2:44 p.m. HK/SIN after the People’s Bank of China set the day’s yuan midpoint at 6.7009. China’s central bank allows the currency exchange rate to rise or fall 2 percent from the midpoint rate.

Australia’s benchmark ASX 200 closed up 0.3 percent at 6,179.60.


Company: cnbc, Activity: cnbc, Date: 2019-03-14  Authors: saheli roy choudhury, toshifumi kitamura, afp, getty images
Keywords: news, cnbc, companies, markets, fell, economic, china, asia, showed, midpoint, data, growth, brexit, focus, deal, traded, pound, output, industrial, chinas, index, yuan


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China’s yuan ‘may already be overvalued’ and is set to move lower, Nomura says

The Chinese yuan is probably already overvalued against the U.S. dollar and any efforts by President Donald Trump’s team to lock in that level as part of trade negotiations will likely backfire, according to Japanese financial firm Nomura. The yuan has long been a sticking point for the U.S., which, despite years of long-term appreciation in the currency, accuses Beijing of keeping it artificially undervalued to boost exports. “We believe (the) yuan may already be overvalued against (the dollar)


The Chinese yuan is probably already overvalued against the U.S. dollar and any efforts by President Donald Trump’s team to lock in that level as part of trade negotiations will likely backfire, according to Japanese financial firm Nomura. The yuan has long been a sticking point for the U.S., which, despite years of long-term appreciation in the currency, accuses Beijing of keeping it artificially undervalued to boost exports. “We believe (the) yuan may already be overvalued against (the dollar)
China’s yuan ‘may already be overvalued’ and is set to move lower, Nomura says Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-11  Authors: kelly olsen, honglouwawa, getty images
Keywords: news, cnbc, companies, long, nomura, dollar, trade, yuan, lower, set, chinas, growth, japanese, firm, overvalued, efforts


China's yuan 'may already be overvalued' and is set to move lower, Nomura says

The Chinese yuan is probably already overvalued against the U.S. dollar and any efforts by President Donald Trump’s team to lock in that level as part of trade negotiations will likely backfire, according to Japanese financial firm Nomura.

The yuan has long been a sticking point for the U.S., which, despite years of long-term appreciation in the currency, accuses Beijing of keeping it artificially undervalued to boost exports. Washington has reportedly pressed Chinese officials to maintain currency stability amid trade talks.

Despite that request, Nomura said the American side appears to have it all wrong.

“We believe (the) yuan may already be overvalued against (the dollar), and China’s latest round of monetary and credit easing may push (the yuan) further into overvalued territory,” Nomura said in a Monday note, referring to the country’s efforts to put a floor under slowing growth in the world’s second-largest economy.

In fact, attempts to stabilize the rate “could result in an increasingly overvalued yuan, slower export growth, elevated import growth and worsening current account deficits in China,” the Japanese firm said.

Nomura said it ultimately expects the yuan to move lower against the dollar “in the medium to long term,” though it did not suggest any levels or ranges.


Company: cnbc, Activity: cnbc, Date: 2019-03-11  Authors: kelly olsen, honglouwawa, getty images
Keywords: news, cnbc, companies, long, nomura, dollar, trade, yuan, lower, set, chinas, growth, japanese, firm, overvalued, efforts


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Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory

Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker’s Gigafactory in Shanghai. The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May. Tesla has said that the Gigafactory will cost around $2 billion. Producing cars locally is likely to help the company minimize the impact of the U.S.-


Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker’s Gigafactory in Shanghai. The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May. Tesla has said that the Gigafactory will cost around $2 billion. Producing cars locally is likely to help the company minimize the impact of the U.S.-
Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: getty images
Keywords: news, cnbc, companies, electric, agreement, shanghai, cars, gigafactory, company, xpeng, chinese, lenders, yuan, tesla, enters, facility, prices, help


Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory

Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker’s Gigafactory in Shanghai.

The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May.

Tesla has said that the Gigafactory will cost around $2 billion.

Producing cars locally is likely to help the company minimize the impact of the U.S.-China trade war, which has forced Tesla to adjust prices of its U.S.-made cars in China.

Keeping prices in check will also help Tesla fend off competition from a swathe of domestic electric vehicle startups such as Nio Inc, Byton and XPeng Motors.


Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: getty images
Keywords: news, cnbc, companies, electric, agreement, shanghai, cars, gigafactory, company, xpeng, chinese, lenders, yuan, tesla, enters, facility, prices, help


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Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory

Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker’s Gigafactory in Shanghai. The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May. Tesla has said that the Gigafactory will cost around $2 billion. Producing cars locally is likely to help the company minimize the impact of the U.S.-


Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker’s Gigafactory in Shanghai. The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May. Tesla has said that the Gigafactory will cost around $2 billion. Producing cars locally is likely to help the company minimize the impact of the U.S.-
Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: getty images
Keywords: news, cnbc, companies, help, chinese, prices, tesla, agreement, facility, electric, gigafactory, yuan, shanghai, enters, lenders, cars, xpeng, company


Tesla enters into agreement with Chinese lenders for Shanghai Gigafactory

Tesla said on Thursday it signed an agreement with lenders in China for a 12-month facility of up to 3.5 billion yuan ($521 million) for the electric carmaker’s Gigafactory in Shanghai.

The company broke ground on the factory in January, and a Shanghai city government official said on Wednesday that the facility is expected to be completed in May.

Tesla has said that the Gigafactory will cost around $2 billion.

Producing cars locally is likely to help the company minimize the impact of the U.S.-China trade war, which has forced Tesla to adjust prices of its U.S.-made cars in China.

Keeping prices in check will also help Tesla fend off competition from a swathe of domestic electric vehicle startups such as Nio Inc, Byton and XPeng Motors.


Company: cnbc, Activity: cnbc, Date: 2019-03-07  Authors: getty images
Keywords: news, cnbc, companies, help, chinese, prices, tesla, agreement, facility, electric, gigafactory, yuan, shanghai, enters, lenders, cars, xpeng, company


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China says it needs ‘stronger’ responses to support its slowing economy

Chinese Premier Li Keqiang said on Tuesday that risks threatening the world’s second-largest economy may warrant “stronger mitigating action” as growth is expected to slow further this year. During his opening speech, Li announced cuts in taxes and fees worth nearly 2 trillion yuan ($289.28 billion). Partly due to greater fiscal support to the economy, the Chinese government budget deficit in 2019 is expected to widen to 2.76 trillion yuan, representing around 2.8 percent of China’s gross domest


Chinese Premier Li Keqiang said on Tuesday that risks threatening the world’s second-largest economy may warrant “stronger mitigating action” as growth is expected to slow further this year. During his opening speech, Li announced cuts in taxes and fees worth nearly 2 trillion yuan ($289.28 billion). Partly due to greater fiscal support to the economy, the Chinese government budget deficit in 2019 is expected to widen to 2.76 trillion yuan, representing around 2.8 percent of China’s gross domest
China says it needs ‘stronger’ responses to support its slowing economy Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: yen nee lee, sean gallup, getty images news, getty images
Keywords: news, cnbc, companies, stronger, slowing, responses, china, needs, risks, li, yuan, worth, special, trillion, taxes, projects, growth, official, economy, support


China says it needs 'stronger' responses to support its slowing economy

Chinese Premier Li Keqiang said on Tuesday that risks threatening the world’s second-largest economy may warrant “stronger mitigating action” as growth is expected to slow further this year.

Beijing is attempting to maintain stable growth, while reducing the economy’s reliance on debt. At the same time, China and the U.S. have been embroiled in a trade war that saw the world’s two largest economies slap tariffs on each other’s imports — which analysts said partly hurt business activity worldwide.

China hasn’t been spared, Li said at the opening of the annual National People’s Congress. He announced the official economic growth target is 6 percent to 6.5 percent this year, down from the 6.6 percent expansion in 2018.

“The many risks and potential problems that have built up over the years demand stronger mitigating action, but in doing so we need to observe objective laws and take the right approach,” said Li, according to the official English version of his prepared remarks.

“Our approach must be firm, controllable and systematic, and it should be applied with the right degree of intensity,” he added.

During his opening speech, Li announced cuts in taxes and fees worth nearly 2 trillion yuan ($289.28 billion). In particular, the premier said the value-added tax rate for the manufacturing sector will be reduced from 16 percent to 13 percent, while the duty for transportation and construction will be cut from 10 percent to 9 percent.

In addition, Li announced plans to increase the country’s infrastructure financing: Around 2.15 trillion yuan worth of local government special bonds will be issued this year to meet spending needs for key projects. A special bond is a type of debt asset, which Beijing created after an earlier crackdown on non-bank lending, so projects such as railways and roads can still secure funding.

Partly due to greater fiscal support to the economy, the Chinese government budget deficit in 2019 is expected to widen to 2.76 trillion yuan, representing around 2.8 percent of China’s gross domestic product, Li said. The country’s 2018 budget deficit accounted for around 2.6 percent of GDP, according to official figures.

“These arrangements meet the demands of spending across various areas, send a signal of proactive and vigorous fiscal policy, help to better guide enterprise expectations, more strongly boost market confidence, and also take into consideration the importance of keeping policy options open in case there is a need to respond to risks in the future,” said the Chinese premier.

Analysts have largely expected China to cut taxes as the ongoing trade war takes a toll on its economy. Last year, Beijing cut taxes and fees worth 1.3 trillion yuan and allowed local governments to issue 1.35 trillion yuan in special bonds to fund key projects.


Company: cnbc, Activity: cnbc, Date: 2019-03-05  Authors: yen nee lee, sean gallup, getty images news, getty images
Keywords: news, cnbc, companies, stronger, slowing, responses, china, needs, risks, li, yuan, worth, special, trillion, taxes, projects, growth, official, economy, support


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US wants a more stable yuan, China wants that too: Experts

“The risk of Beijing engaging in CNY devaluation is an overstated, if not imagined, risk.” “Fact is, the PBoC is also after a stable CNY,” he said, using the three-letter abbreviation for the Chinese yuan (which is also called the renminbi, or RMB). “The idea of CNY devaluation as a (mercantilist) strategy is not only outdated, but is also misguided,” Varathan said. “The risk of Beijing engaging in CNY devaluation is an overstated, if not imagined, risk,” he said. “First, China, as a responsible


“The risk of Beijing engaging in CNY devaluation is an overstated, if not imagined, risk.” “Fact is, the PBoC is also after a stable CNY,” he said, using the three-letter abbreviation for the Chinese yuan (which is also called the renminbi, or RMB). “The idea of CNY devaluation as a (mercantilist) strategy is not only outdated, but is also misguided,” Varathan said. “The risk of Beijing engaging in CNY devaluation is an overstated, if not imagined, risk,” he said. “First, China, as a responsible
US wants a more stable yuan, China wants that too: Experts Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: weizhen tan, afp, getty images, -vishnu varathan, mizuho bank head of economics
Keywords: news, cnbc, companies, china, markets, market, experts, wants, exchange, devaluation, yuan, stable, trade, strategy, cny, risk, chinese


US wants a more stable yuan, China wants that too: Experts

“The risk of Beijing engaging in CNY devaluation is an overstated, if not imagined, risk.”

That reportedly hasn’t stopped the White House from seeking assurances there’d be no devaluation, but that American pursuit for yuan stability is “superfluous,” according to Mizuho Bank Head of Economics and Strategy Vishnu Varathan.

“Fact is, the PBoC is also after a stable CNY,” he said, using the three-letter abbreviation for the Chinese yuan (which is also called the renminbi, or RMB).

The world’s second-largest economy has been on a drive to open up its financial sector, and has also been pushing for more international use of the yuan. So, it’s already in China’s interest to maintain currency stability as Beijing opens domestic markets up to international investment, said Tuan Huynh, emerging markets chief investment officer at Deutsche Bank Wealth Management.

“The idea of CNY devaluation as a (mercantilist) strategy is not only outdated, but is also misguided,” Varathan said. “Beijing’s struggle at the margin is to prevent abrupt and excessive slide in the CNY (brought about by US-China trade risks, which in turn could trigger capital outflows and asset market wobbles).” Editor’s note: Varathan included the above parentheses in his emailed comments to CNBC.

“The risk of Beijing engaging in CNY devaluation is an overstated, if not imagined, risk,” he said.

Chinese authorities also dismissed such concerns in a press conference on Wednesday, following Bloomberg’s report that sources familiar with the trade negotiations said Trump’s team is asking China to keep the yuan stable.

“First, China, as a responsible major country, has made clear its position repeatedly that it does not engage in competitive devaluation. Second, we will not use the RMB exchange rate as a tool amid trade disputes,” said Chinese Foreign Ministry spokesman Geng Shuang.

He added: “Third, we hope the US can respect law of markets and objective facts, and refrain from politicizing exchange rate issues.”

Jameel Ahmad, global head of currency strategy and market research at foreign exchange broker FXTM, echoed that sentiment, saying the idea of a Chinese devaluation is not worthy of attention “in the current day and age.”

If anything, he added, a neutral observer would expect Beijing’s “preference would be for strength in the Chinese currency, because of the impact this can have on risk appetite and emerging market sentiment.”


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: weizhen tan, afp, getty images, -vishnu varathan, mizuho bank head of economics
Keywords: news, cnbc, companies, china, markets, market, experts, wants, exchange, devaluation, yuan, stable, trade, strategy, cny, risk, chinese


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Chinese search giant Baidu beats on advertising sales but streaming costs surge

Chinese search engine operator Baidu beat market estimates for fourth-quarter revenue and profit on Thursday, as its core online marketing business stayed resilient and revenue surged in its Netflix-like streaming service iQiyi. The company, which is trying to cut its dependence on its core search business, spent heavily on content for iQiyi and promotions to attract new customers last year as its online ad business showed signs of pressure. “New growth will be driven by technological innovation


Chinese search engine operator Baidu beat market estimates for fourth-quarter revenue and profit on Thursday, as its core online marketing business stayed resilient and revenue surged in its Netflix-like streaming service iQiyi. The company, which is trying to cut its dependence on its core search business, spent heavily on content for iQiyi and promotions to attract new customers last year as its online ad business showed signs of pressure. “New growth will be driven by technological innovation
Chinese search giant Baidu beats on advertising sales but streaming costs surge Cached Page below :
Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: simon lim, afp, getty images
Keywords: news, cnbc, companies, chinese, online, surge, beats, business, search, baidu, core, streaming, yuan, sales, billion, advertising, iqiyi, revenue, costs, giant


Chinese search giant Baidu beats on advertising sales but streaming costs surge

Chinese search engine operator Baidu beat market estimates for fourth-quarter revenue and profit on Thursday, as its core online marketing business stayed resilient and revenue surged in its Netflix-like streaming service iQiyi.

Baidu is betting its focus on streaming and new areas such as artificial intelligence (AI) will boost revenue and offset lower ad sales from real estate, finance and other sectors impacted by China’s economic slowdown.

The company, which is trying to cut its dependence on its core search business, spent heavily on content for iQiyi and promotions to attract new customers last year as its online ad business showed signs of pressure.

“We have entered a new stage for the Chinese internet,” Baidu Chief Executive Robin Li said in a conference call with analysts, warning that the market has saturated.

“New growth will be driven by technological innovation, and for our core search and news feed we continue to see a lot of room to grow.”

Baidu will begin expanding its AI capabilities, such as smart speakers and autonomous driving, to enterprise and government customers to boost profits, executives said.

The company’s key online marketing business, which includes search, news feeds and a video app and accounts for more than three quarters of the company’s revenue, grew 10 percent to 21.2 billion yuan ($3.15 billion) in the quarter ended Dec. 31.

But revenue from the business rose 10 percent in the December quarter, the slowest pace in six quarters, while spending per customer slipped 4 percent.

Revenue from iQiyi, in contrast, jumped 55 percent to 7 billion yuan. Content costs however nearly doubled to 7.3 billion yuan, mostly for iQiyi, and the company expects such expenses to rise in 2019.

“We made a huge promotion around Chinese new year. So we have to consider that cost,” Chief Financial Officer Herman Yu said, referring to a campaign run in cooperation with state broadcaster CCTV.


Company: cnbc, Activity: cnbc, Date: 2019-02-22  Authors: simon lim, afp, getty images
Keywords: news, cnbc, companies, chinese, online, surge, beats, business, search, baidu, core, streaming, yuan, sales, billion, advertising, iqiyi, revenue, costs, giant


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