CX Daily: Why China’s 2023 Fiscal Policy May Be Less Expansionary Than It Seems
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Fiscal?/
China’s proactive fiscal policy is likely to be less expansionary in 2023 than it seems even though the government set a higher official deficit-to-GDP ratio target,?analysts estimate .?
The focus will also shift to supporting infrastructure investment in a bid to spur economic growth?and away from the massive tax and fee relief of last year that was aimed at helping companies survive the disruption caused by stringent Covid-19 controls.
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China-Russia?/
President Xi Jinping and his Russian counterpart Vladimir Putin said the Ukraine crisis could best be settled through “responsible dialogue” in?a joint statement? signed Tuesday as they called on all parties to halt actions that could lead to escalation and a prolonged war.
The statement published by the Chinese Ministry of Foreign Affairs added that?Russia welcomes China’s willingness to play an active role in resolving the crisis through political means.?Russia said in a separate statement released by the Kremlin that some provisions in a Chinese position paper released last month could be “taken as the basis” for a peaceful settlement “when the West and Kiev are ready for it.”
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Population?/
Beijing’s permanent resident population?fell by 0.2% to 21.84 million ?in 2022 as deaths outpaced births in the Chinese capital for the first time since 2003, the local government said Tuesday.
The death rate rose 6.1% to 5.72 per 1,000 people last year, while the birth rate dropped around 11% to 5.67 per 1,000 people in 2022,?according to an annual government report on Beijing’s economic and social development.
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Bonds?/
News that roughly $17 billion of?Credit Suisse Group AG’s AT1 bonds?were wiped out? sparked a global market sell-off and fueled investors’ jitters over the health of the broader global banking system.
As part of the Swiss government-brokered takeover of Credit Suisse by its larger rival?UBS, the value of $17 billion of Credit Suisse’s riskier AT1 bonds was slashed to zero Sunday.
The move angered bondholders and stirred market controversy?because shareholders of Credit Suisse are still able to recover part of their investment even though bondholders usually rank ahead of equity shareholders when a company goes bust.
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Corruption?/
Another senior official who once oversaw the rural credit system in central China’s Henan province?turned himself in to authorities? investigating a?multibillion-dollar banking scam , the province’s anti-graft watchdog said.
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Wu Jinpeng, 49, former deputy head of the Henan Rural Credit Union,?is under investigation on suspicion of serious violation of law and discipline, the Henan office of the Central Commission for Discipline Inspection said.
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Quick hits?/
Pinduoduo?/
Google?suspended? PDD Holdings Inc.’s main Chinese shopping app Pinduoduo after discovering malware in unsanctioned versions of the software, dealing a blow to one of the country’s biggest online retailers.
The Mountain View, California-based company said Tuesday it is investigating the matter and suspended downloads of the Play Store version of Pinduoduo as a security precaution.?Google didn’t mention Temu,?PDD’s popular shopping app for the U.S., which remains available to download.
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Delisting?/
Chinese news aggregator?Qutoutiao Inc.?said?it won’t fight ?its looming delisting from the Nasdaq, potentially moving a step closer to the end for a service that once was worth more than $4 billion and tipped to possibly challenge China’s leading Toutiao news app.
Qutoutiao’s shares plunged nearly 60% Tuesday after it said it would not appeal the stock exchange’s decision after it failed to meet several listing requirements.?The company first fell out of compliance with listing rules when its shares continuously remained below the requisite $1 mark since August.
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Quick hit?/
Long Read?/
Pollution has soared to hazardous levels across the region, leaving residents in a thick haze on Wednesday morning. China’s national observatory renewed a yellow weather alert, the second highest, through Thursday morning for a wide range of areas in the north. This is the third time sand and dust has obscured the Beijing skyline this year, and PM10 levels reached more than 500 micrograms per cubic meter in provincial-level regions including Tianjin, Hebei and Heilongjiang
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1 年Thanks for the updates on China ????.