China’s ZTE headed to court
Lawyers for ZTE Corp have been summoned to U.S. federal court in Texas. This is for a hearing over whether the Chinese telecommunications equipment maker violated probation in connection with an alleged conspiracy to commit visa fraud. ZTE is on probation in the United States after pleading guilty in Dallas in 2017 to illegally shipping U.S. […]
Norway wealth fund diverts from China’s Yunnan Baiyao over pangolins
Norway’s $1.4 trillion wealth fund has divested from Chinese pharmaceutical firm Yunnan Baiyao. They say that this decision was because the company uses and sells body parts from pangolins, which is an endangered species. The fund also said that it had put Marfrig Global Foods, under observation for possible exclusion from its investments for contributing […]
Evergrande, Kaisa cut by Fitch to default
Ratings agency Fitch downgraded property developers China Evergrande Group and Kaisa Group. They stated that they had defaulted on offshore bonds. Also, Kaisa had started work on restructuring its $12 billion offshore debt. The downgrades to the restricted default status come even though Evergrande. And Kaisa have not officially announced defaults that could result in […]
Birkin bag maker Hermes shrugs off China slowdown
Sales at Birkin bag maker Hermes grew by 31%. This has beaten the market expectations, even though, the rebound from the fallout of the pandemic slowed down. Analysts had expected comparable revenues at the French luxury group. This is according to a consensus cited by UBS. Revenues at the end of the quarter stood at […]
Asian tech shares jump, China property stocks rally
Tech stocks climbed in Asia, following U.S. peers higher. The Chinese property stocks rallied following a surprise interest payment by debt-ridden property developer China Evergrande Group. Also, the cyclical stocks dragged amid worries that central bankers will need to tighten monetary policy into slowing growth in order to tackle persistent inflation. Regional bond yields rose with […]
China’s belt and road plans losing momentum
China’s vast Belt and Road Initiative is in danger of losing momentum. Because, opposition in targeted countries rises and debts mount paved the way for rival schemes. President Xi Jinping launched BRI in 2013, in order to harness China’s strengths in financing and infrastructure construction. This is for building a broad community of shared interests […]
China encourages mainland insurers to sell catastrophe bonds
A notice was released by the China’s banking and insurance regulator. That encouraged the sales of catastrophe bonds by mainland insurers in Hong Kong. According to a statement of the China Banking and Insurance Regulatory Commission (CBIRC), the mainland property, casualty insurance companies and reinsurance companies can set up special-purpose entities in Hong Kong. This is for […]
After China central bank vows to crack crypto trade, Bitcoin slips
Bitcoin fell nearly 5% after China’s central bank said that it would crack down on cryptocurrency trading. From providing services to mainland investors, they have banned the overseas exchange. The largest cryptocurrency was last down 4.6% at $42,874. This fall down is with smaller coins that typically trade in tandem with bitcoin also tumbling. Ether fell over […]
Evergrande crisis spill beyond China
China Evergrande have put investors on guard for evidence that the crisis may be spilling over into broader markets. Evergrande was once China’s top-selling property developer. They owe $305 billion and has run short of cash. Investors are worried that a collapse could pose systemic risks to China’s financial system. There have been few signs […]
Dollar wallows near one week low
The dollar wallowed near its lowest level in a week. This is because, the improved risk sentiment wiped out recent gains amid easing concerns about contagion from a potential China Evergrande Group default. Risk appetite returned, lifting oil and global equities. The 10-year U.S. Treasury notes hit the highest since July overnight at 1.437%. That […]