CX Daily: Panda Bond Boom Follows Government Easing Effort
TOP STORIES
Panda bonds?/
Panda bond issuances have jumped this year as foreign institutions have sought to take advantage of cheaper borrowing costs in China in the wake of government efforts to ease rules for how their proceeds can be used amid an ongoing drive to internationalize the yuan.
Panda bonds are yuan-denominated bonds issued by foreign institutions and sold on the Chinese mainland. While issuances of the bonds have been growing in recent years, the trend has picked up pace this year. ?
China-Africa?/
President Xi Jinping pledged 360 billion yuan ($50.7 billion) in financial assistance to countries in Africa in the next three years, speaking at the opening ceremony of the Forum on China-Africa Cooperation (FOCAC) in Beijing on Thursday.
The support would include 210 billion yuan in lines of credit, 70 billion yuan of investment from Chinese companies and 80 billion yuan in other forms of aid, according to a copy of Xi’s speech released by the Ministry of Foreign Affairs. ?
FINANCE & ECONOMY
GDP?/
Amid a persistent slowdown in the property market, Nomura Securities has given a cautious forecast for China’s economic growth, expecting it to be limited to 4.5% in 2024 and 4.0% in 2025, slower than the 5% growth in the first half of this year.
Nomura Securities joins a number of global banks expecting China’s economy to grow more slowly in the second half, with UBS the latest to slash its forecast, following in the wake of Goldman Sachs Group Inc. and JPMorgan Chase & Co.
Quick hits?/
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BUSINESS & TECH
Alibaba?/
China’s two internet giants Alibaba Group Holding Ltd. and Tencent Holdings Ltd. have taken another step toward breaking down long-standing barriers between their platforms.
Alibaba will finally allow shoppers on its Taobao platform to check out via Tencent’s WeChat Pay. In the past, Alibaba favored Alipay, the digital payment created by its affiliate Ant Group Co. ?
Lithium?/
Yichun is known by some as the “lithium capital of Asia” — a moniker to wave proudly just two years ago. But the wind has been taken out of the Jiangxi province city’s sails somewhat as a supply glut of the key electric-vehicle (EV) battery material sent prices tumbling, hitting Yichun and its core industry hard.
Many processors and producers in the lithium hub have had to curb production or shut down entirely to stem losses. This marks a stark contrast to 2022, when the industry boomed, fueled by growing demand for state-subsidized EVs that drove lithium prices soaring. ?
Quick hits?/
Energy Insider?/
Long Read?/