CX Daily: Why China’s 2023 Fiscal Policy May Be Less Expansionary Than It Seems
Xi and Putin call for “responsible dialogue” to end the Ukraine crisis. Beijing’s deaths outrun births for the first time in two decades
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A garment factory produces clothing for export in Qingdao, East China's Shandong province, on March 14. Photo: VCG
Fiscal /
Analysis: Why China’s 2023 fiscal policy may be less expansionary than it seems
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.
China-Russia /
Xi, Putin call for ‘responsible dialogue’ to end Ukraine crisis
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.”
Population /
Beijing’s deaths outrun births for first time in two decades
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.
FINANCE & ECONOMY
Under the UBS takeover, Credit Suisse shareholders will receive UBS shares equivalent to 0.76 of a Swiss franc ($0.82) per share, or about 60% less than the bank was worth when markets closed Friday.
Bonds /
Why some Credit Suisse bondholders got wiped out and shareholders didn’t
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.
Corruption /
Henan rural banking scandal claims another senior official
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.
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.
Quick hits /
Hong Kong says borrowing cost surge driven by demand for cash
Citadel Securities boosts China presence as peers cut costs
BUSINESS & TECH
Pinduoduo /
Google suspends Pinduoduo after finding malware in app versions
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.
Delisting /
Qutoutiao becomes yesterday’s news with Nasdaq 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.
Quick hit /
U.S. ‘guardrails’ to limit chipmakers’ operations in China
Long Read /
The Chinese scholars taking on fraud in academic journals
GALLERY
