China

Hong Kong (CNN Business) China plans to cut its reliance on fossil fuels to below 20% by 2060, according to a cabinet document published in state media Sunday. While the document detailed new measures on how the world's biggest polluter will decarbonize, the country is not updating its pledge to reduce emissions. The guidelines come less than a week before world leaders descend on Glasgow, Scotland, for crucial COP26 international climate talks. There, they will be expected to hash out a plan to accelerate reductions in greenhouse gas emissions over this decade. Chinese President Xi Jinping hasn't left China since the pandemic began and is unlikely to attend COP26 in person. The government has yet to announce details of its delegation to the summit. The official document sheds more light on how Xi intends to make good on previous pledges to reach peak emissions by 2030 and achieve carbon neutrality by 2060. Carbon neutrality, or net zero … [Read more...] about China unveils plan to slash fossil fuels but fails to announce new emissions target

- A + A BEIJING (Jan 20): Chinese forces followed and warned away a US warship which entered waters near the Paracel Islands in the South China Sea, the country's military said on Thursday (Jan 20), in the latest uptick in tensions in the disputed waterway. The Southern Theatre Command of the People's Liberation Army noted that the USS Benfold "illegally" sailed into Chinese territorial waters without permission, violating the country's sovereignty, and that Chinese naval and air forces tracked the ship. "We solemnly demand that the US side immediately stop such provocative actions. Otherwise, it will bear the serious consequences of unforeseen events," it added. The US Navy said the Benfold "asserted navigational rights and freedoms in the vicinity of the Paracel Islands, consistent with international law". "At the conclusion of the operation, the USS Benfold exited the excessive claim and continued operations in the South China Sea," 7th Fleet spokesman … [Read more...] about Beijing says it warned away US warship in South China Sea

- A + A TOKYO (Jan 20): Japan's Nikkei share average rebounded from a five-month low on Thursday (Jan 20), led by Sony and other video-game makers, after China ramped up its monetary easing measures to shore up a slowing economy by lowering a set of key policy rates. The Nikkei ended up 1.11% at 27,772.93, extending the morning's gains in the afternoon. About three stocks gained for every one that fell. The benchmark survived a sharp mid-morning dip, which pushed the index to its lowest intraday level since Aug 23. China's surprise interest rate cut initially stoked fears of an economic slowdown, but investors were cheered by the rally in shares in the rest of the region, market participants said. With the property downturn seen persisting into 2022 and the fast-spreading Omicron variant of Covid-19 dampening consumer activity, many analysts in China expect more easing measures will be necessary despite other major economies appearing set to tighten their monetary … [Read more...] about Nikkei rebounds from five-month low on China rate cut, game-maker rally boost

- A + A HONG KONG (Jan 20): Stocks and bonds of Chinese property developers stretched their gains into Thursday on hopes a slew of recent government measures would help ease a funding squeeze in the embattled sector, even as another developer warned of default. Beijing unexpectedly lowered borrowing costs on its medium-term loans for the first time since April 2020, and cut its benchmark lending rates for corporate and household loans for a second straight month. Sources have told Reuters that policymakers were also drafting nationwide rules to make it easier for developers to access funds from sales still held in escrow accounts. These accounts are currently controlled by municipal governments, with no central oversight, and withdrawals have been tightened in the wake of the sector's woes. Better access to escrow funds would improve the short-term liquidity and help developers buy time "to meet their debt repayments until property sales show meaningful … [Read more...] about China property shares, bonds rally on hopes govt measures will aid liquidity

Share to Twitter Share to Linkedin Key News Asian equities were a sea of red other than China and the Philippines overnight. Reuters is reporting “according to three people briefed on the matter… the Biden Administration is reviewing e-commerce giant Alibaba’s cloud business to determine whether it poses a risk to US national security”. Clearly, there are some loose lips if three different people were willing to spill the beans. However, this is a non-event as even the article admits Alicloud only has $50 million of revenue generated in the United States. If this happens: A) Alibaba should sue in US court as it would win just as Xiaomi and Tik Tok did. B) Microsoft and Amazon could be the target for a tit for tat response due to their cloud business in China. Over the three-day weekend, the PBOC cut the 1-year medium-term lending facility from 2.95% to 2.85% and the reverse repo rate to 2.1% from 2.2%. Banks are expected to lower their loan rates in … [Read more...] about Biden’s Alibaba Bark Has No Bite

Share to Twitter Share to Linkedin Key News Asian equities were a sea of red, except for the small gains by Hong Kong and Singapore. Japan was off -2% as Sony was smoked -12.79% post-Microsoft/Activision announcement. The Hang Seng Index managed to gain +0.06% while the Hang Seng Tech Index was off -0.98% on volumes that were up +2.36% from yesterday, which is only 70% of the 1-year average. Foreign investors are starting to pick up on China’s monetary easing narrative, which makes their underweight potentially dangerous if we get a rally. Hong Kong internet stocks didn’t fall nearly as much as the US names yesterday as Tencent +0.66% (Tencent US listing -5.14% yesterday), Meituan -0.65% (US -0.71% yesterday), Alibaba HK -1.74% (US -2.26%) and JD.com HK +0.86% (US -0.43%). JD merchants will gain access to Shopify’s e-commerce platform while Shopify merchants can gain access to suppliers on JD’s platform. Alibaba HK felt yesterday’s ridiculous article on how … [Read more...] about Monetary Easing Gains Momentum, Hong Kong Internet Holds Up

Tweaks for the revised Test & Go will be debated by the CCSA and hopefully announced today. A few leaks indicate that the Test & Go program will, indeed, be re-introduced but there will be tightening of aspects of the program. If the rumours are true, arrivals will undergo two PCR tests during their initial seven days, the first when travellers arrive and the second on the fifth or sixth day. The Public Health Ministry also suggested yesterday that overseas visitors will have to take out comprehensive health insurance that covers all Covid-19 contingencies. The Ministry’s permanent secretary announced yesterday that visitors must ensure they are fully covered for all types of Covid-19 treatments. The hot tip for a reboot of the Test & Go program, which only requires a single night stay in an SHA+ hotel whilst waiting for your arrival test results, is for the start of February. The Thaiger will bring you all the details and latest decisions from the CCSA meeting as … [Read more...] about Thailand News Update | Tweaks for the revised Test & Go announced today!

- A + A KUALA LUMPUR (Jan 20): Manulife Investment Management (Manulife IM) says Malaysia’s accelerated vaccination rates, which was faster than what the market had anticipated, combined with increased government spending ahead of the next general election could support domestic demand amid the lingering effects of the pandemic. At a media briefing on Thursday (Jan 20), Manulife IM’s Head of Macro Strategy (Asia), Sue Trinh said the outlook for Asian countries in 2022 is a mixed bag as the cyclical macro conditions are favourable for reopening and recovery in Taiwan, select Asean countries such as Vietnam, Indonesia, Thailand, Singapore and Malaysia, as well as Japan. “Structurally, the Asian region has a lot of work to do to recoup lost output due to the pandemic. The biggest concern remains weak consumer demand which will be exposed by the looming downturn in export growth. “On the other hand, Asia’s milder inflation expectation comes down to one simple factor — … [Read more...] about Accelerated vaccination rates, higher govt spending to support domestic demand, says Manulife IM

- A + A LONDON (Jan 20): European stocks fell on Thursday as cautious investors continued to assess how far and fast the US Federal Reserve will begin raising interest rates this year. Also keeping a lid on risk taking were the tech-laden US Nasdaq entering correction territory on Wednesday, a sell-off in bonds, still elevated crude oil prices and increased political tensions over Ukraine. But Chinese stocks were a bright spot after the country cut benchmark mortgage reference rates to ease pressure on its property sector. The STOXX index of 600 European companies was down 0.17% at 480 points, below its life-time high of 495.46 points hit in the first week of trading this year. Blue-chip indexes in Frankfurt, Paris and London were all lower. Gains in Asia helped to counter the pullback in Europe to keep the MSCI all country stock index in positive territory, up 0.16% at 728 points, but still down about 3.8% so far this year. "There is a tonne of caution now," … [Read more...] about Stocks slip in Europe as investors refine Fed hike bets

(CNN Business) The next-generation of wireless technology is now even faster for 5G users in some parts of the country. Telecom companies have rolled out 5G networks to various locations across the United States over the last few years, delivering an experience that's arguably only a notch above what 4G offers. But on Wednesday, Verizon ( VZ ) and AT&T ( T ) turned on their C-band 5G networks -- an important set of radio frequencies that will supercharge the internet as we know it. "The impact will be that users will likely consume more data, the connection will be more robust and most likely we may see new types of applications emerging," said Dimitris Mavrakis, senior director at market research firm ABI Research. "5G is also positioned toward enterprise services, so this upgrade may push both carriers' plans to address this domain even further." International airlines suspend some US flights over 5G uncertainty If … [Read more...] about What is C-band 5G? Verizon and AT&T are flipping on the switch in the US