China to control exports of critical mineral antimony from next month; China’s stock market turnover sinks to 4-year low as investors fret over stimulus
Seoul authorities find toxic substances in Shein and Temu products
Welcome to this issue of The China Brief. Today is August 15, 2024. Here at The China Brief, we bring you the latest news on China's politics, economy, and society from global media sources, along with exclusive expert analysis. If you find our content helpful, please subscribe to our newsletter.
China to control exports of critical mineral antimony from next month
South China Morning Post
China has announced that it will impose export controls on rare antimony metals, ores, and oxides, effective from September 15. The move is aimed at safeguarding national security, defending its interests, and fulfilling its non-proliferation obligations. Antimony is a mineral critical to economic and national security, according to the US International Trade Commission. China accounted for nearly half of the world's total antimony ore production last year.
https://www.scmp.com/economy/economic-indicators/article/3274602/china-control-exports-critical-mineral-antimony-next-month?utm_source=rss_feed
China’s stock market turnover sinks to 4-year low as investors fret over stimulus
South China Morning Post
Daily turnover on China's onshore markets has fallen to its lowest level in four years, as investors wait for clearer signals on policy to support the economy. The combined value of shares changing hands on the Shanghai and Shenzhen exchanges was CNY472.9bn ($66.1bn) on Wednesday, the least since 25 May, 2020, according to Bloomberg data. Turnover in Hong Kong also shrank to a six-month low of HKD68bn ($8.7bn). The subdued trading mirrors investors' lack of interest in Chinese stocks, as they are underwhelmed by cuts to a policy loan rate and loan prime rate.
https://www.scmp.com/business/china-business/article/3274579/chinas-stock-market-turnover-sinks-4-year-low-investors-fret-over-stimulus?utm_source=rss_feed
Seoul authorities find toxic substances in Shein and Temu products
Japan Times
Authorities in Seoul have found toxic substances in women's accessories sold by popular online shopping firms such as Shein, Temu, and AliExpress. The levels of these toxic substances were sometimes hundreds of times above acceptable levels. This has raised concerns about the safety standards of these online platforms, especially as they have seen explosive growth in recent years. Similar inspections have been conducted in the EU and South Korea.
https://www.japantimes.co.jp/business/2024/08/15/companies/seoul-toxic-substances-shein-temu/
China’s economic recovery dragged down by property slump and weak consumption in July
Associated Press
China's economic recovery in July was hampered by a property crisis and weak consumption, according to data from the National Bureau of Statistics. Unemployment rose to 5.2%, industrial production increased by 5.1% year-on-year, and retail sales grew by 2.7%. The government plans to boost consumer spending with a $20.9bn scheme to finance trade-ins for consumer goods. Consumption contributed to 60% of China's economic growth in H1 2021 and is expected to play a larger role in supporting the economy. Investment in real estate fell 10.2% in the first seven months of the year.
https://apnews.com/article/china-economy-property-crisis-consumption-industrial-output-c57b620fbada4d39dfe1d19e2c9f72c3
China’s July home prices fall at a slower pace as state support shows ‘some effect’
South China Morning Post
Home prices in China continued to decline in July, marking the 14th consecutive month of decline. Prices of new homes in 70 medium and large cities dropped 0.6% month on month, while second-hand home prices slid 0.8% compared with the previous month. The property sector, once a growth engine for China's economy, has become a drag since the government implemented measures to deleverage home builders and reduce debt. Weak consumption and a slower-than-expected economic growth rate are also affecting the property market. China's top 100 developers reported a 37.5% decline in home sales in the first seven months of this year compared to the same period last year.
https://www.scmp.com/property/article/3274551/chinas-falling-home-prices-slow-descent-slightly-decline-extends-14-months?utm_source=rss_feed
A Chinese Autonomous Driving Start-Up Is About to Go Public in the U.S.
NY Times
Chinese autonomous driving start-up WeRide is preparing to go public on the Nasdaq stock exchange in New York this week. However, the strained relationship between China and the US is causing concern for potential investors. WeRide has warned that export controls on Chinese firms by the US government could limit its access to advanced semiconductors, while a crackdown on Chinese autonomous vehicle companies could restrict its ability to use its technology in America. WeRide is among a number of Chinese electric vehicle and automotive technology firms seeking capital on US financial markets.
https://www.nytimes.com/2024/08/15/business/weride-china-ipo-nasdaq.html
‘Not a bad thing’: Chinese students offered paid tours of Singapore universities for extra cash
South China Morning Post
Chinese postgraduate students at the National University of Singapore (NUS) have been offering campus tours to tourists, sparking discontent among local students. The tours, costing around CNY273 ($38) and lasting two hours, covered the Central Library, University Town and the NUS Museum. While the listing for the tours has been removed, 31 people purchased them and left positive reviews on Chinese social media platform Xiaohongshu. An NUS postgraduate student guide said she started offering the tours to make money, and that they occupied a "grey region".
https://www.scmp.com/week-asia/people/article/3274499/not-bad-thing-chinese-students-offered-paid-tours-singapore-universities-extra-cash?utm_source=rss_feed
China-Pakistan Economic Corridor sparks Pakistan protests
Deutsche Welle
Protests against a China-backed airport project in Balochistan, a Pakistani province, highlight growing discontent among the local population. As part of the China-Pakistan Economic Corridor, a new international airport is set to open in Gwadar, Balochistan. The project is part of China’s Belt and Road Initiative to improve global infrastructure and trade networks. However, many oppose the airport, with the ethnic Baloch population staging protests against the Pakistani authorities for exploiting their natural resources. Critics argue that Chinese investment in Gwadar is exploiting the province’s resources and the situation is volatile, with numerous militant attacks and terrorism-related incidents.
https://www.dw.com/en/china-pakistan-economic-corridor-sparks-pakistan-protests/a-69941212
Vietnam’s To Lam makes China his first stop after becoming party chief
South China Morning Post
Vietnamese party chief and president To Lam is set to visit Beijing to secure China's support for the country's rail projects as he looks to strengthen economic ties with China. Lam's visit comes amid simmering tensions between Hanoi and Beijing over their overlapping claims in the South China Sea. Observers believe Lam will be seeking to bolster Vietnam's economy through closer cooperation with China to solidify his political standing at home. The Vietnamese government is also looking for Chinese investments and technological support to advance its national and cross-border rail projects.
https://www.scmp.com/news/china/diplomacy/article/3274585/vietnams-lam-makes-china-his-first-stop-after-becoming-party-chief?utm_source=rss_feed
Singapore charges 2 former Chinese bankers in US$2.3 billion money-laundering scandal
South China Morning Post
Two former bank relationship managers have been charged in Singapore's largest money laundering case. Wang Qiming, a former employee of Citibank Singapore, has been charged with 10 counts including forging documents to cheat the bank. Liu Kai, formerly of Bank Julius Baer, has been accused of assisting a convicted money launderer in submitting a forged Chinese tax document to open a bank account in Switzerland. Last year, authorities seized assets worth $2.3bn as part of the investigation. Ten individuals of Chinese origin have already been jailed for money laundering offences.
https://www.scmp.com/news/asia/southeast-asia/article/3274539/singapore-charges-2-former-chinese-bankers-us23-billion-money-laundering-scandal?utm_source=rss_feed
Hong Kong stocks jump after China economic data points to stabilisation
South China Morning Post
Hong Kong stocks reversed early losses and joined a broader Asian rally as investors digested Chinese property and economic data that offered signs of stabilization. The Hang Seng Index added 0.4 per cent to 17,174.18, after losing as much as 1.1 per cent earlier in the trading session. China Merchants Bank jumped 2.2 per cent, Industrial and Commercial Bank of China added 1.1 per cent and Bank of China gained 0.9 per cent, leading gains among mainland lenders. Fresh housing data released on Thursday showed the property downturn might have slowed.
https://www.scmp.com/business/markets/article/3274531/hong-kong-stocks-jump-after-china-economic-data-points-stabilisation?utm_source=rss_feed
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