China

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China optimism lifts Asia equities

LONDON | By EM Asia Rates Strategy analyst Rohit Arora | Asian equities continued to march higher, with stocks in Korea and Japan outperforming on the day. The Nikkei’s outperformance, despite weaker-than-expected readings on retail sales and jobless data, was counterintuitive and likely reflects increasing market expectations of BoJ easing. In FX, the NZD was a notable underperformer after Fonterra lowered its 2014-15 milk price forecast to NZD6/kg from NZD7/kg.


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How the hammer falls as China nails corruption

BEIJING |By Gao Yu and Wang Heyan via Caixin | Curiosity is one reason the website of the Central Discipline Inspection Commission (CDIC) attracts up to 2 million page views every day. Another reason is fear. Some website visitors, for example, want to know whether they or anyone they know has been targeted by a government campaign to root out corruption led by the CDIC Inspection Team.



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China embraces credit expansion

MADRID | The Corner | The world’s second economy is entering an enthusiastic summer period, with credit lending indicators rising in June. New loans denominated in yuan grew up by 1.08 bn CNY in China, aggregate financing went up by 1.97 bn CNY and the M2 monetary offer, in 14.7% year on year in June. All these data exceeded market expectations and show that the authorities are favoring the expansion of credit to boost growth.


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The Global Investment Issue

By Jean Pisani Ferry via Caixin Investment in many advanced and emerging economies is down – except in China – but governments around the world can take steps to improve the situation.


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China: “Growth has stabilized, but strong recovery unlikely”

SHANGHAI | Op-ed by Hong Hao at Caixin |  Relaxing restrictions on property purchases, reintroducing discount mortgages or even further monetary easing are likely, given the importance of the property sector in the economy and its multiplier effects. No one is willing to be held responsible for an ugly crash in China. This is one certainty among the many uncertainties that the market is facing. But nor is anyone willing to inflate the property bubble further.


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Why Europe is losing out in China

COPENHAGUEN | By Peter Lundgreen via Caixin | In China, the right phone app can get 30 to 40 million users in six to 12 months. The focus on exporting goods to this market ignores the contributions Europeans could make in the dynamic tech sector. 




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China: Banks start using new loan-to-deposit ratio

BEIJING | By Huo Kan and Wu Hongyuran via Caixin | Starting July 1 banks in China are using a new method of calculating the loan-to-deposit ratio, a change that the regulator and analysts say will allow for more loans to be extended.  The China Banking Regulatory Commission (CBRC) announced on June 30 the new set of rules for figuring the ratio, which is capped by law at 75 percent, meaning that banks cannot lend out more than three-quarters of the deposits they accept.