China (Country in Asia)

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China: FRAGILE CHINA

Published September 2, 2015 by godshope1971

The head of the International Monetary Fund, Christine Lagarde, summed up the global outlook in a speech in Indonesia, where she said global economic growth was now likely to be weaker than had been expected just a few months ago.

She cited a slower recovery in major advanced economies and a further slowdown in emerging nations and highlighted the need to “be vigilant for spillovers” from China’s stutters.

In the metals markets, benchmark copper CMCU3 on the London Metal Exchange ended at $5,067 a tonne, down 1.3 percent from Friday’s close, as markets reopened after a long holiday weekend.

Gold rose 1 percent as the dollar and global equities dropped. Spot gold XAU= rose to a session high of $1,147.16 an ounce. ∞∞∞∞∞ MORE »»»»

China: China fears drive down stocks and oil, fuel turmoil

Published September 2, 2015 by godshope1971

World stock indexes and oil prices slumped on Tuesday as weak Chinese data fueled worries about a slowdown in its economy, the world’s second biggest, and sparked more market turmoil.

The fall in oil prices ended a three-day rally that had driven crude up more than 20 percent. Brent fell below $50 a barrel on concerns about global demand for petroleum.

U.S. stocks fell nearly 3 percent, with all three major U.S. equity indexes firmly in negative territory for the year-to-date. The benchmark S&P 500 is down 7 percent since Dec. 31.

The CBOE Volatility index , known as Wall Street’s “fear gauge”, was up 10.45 percent at 31.40, above its long-term average of 20. The index had spiked to 53.29 on Aug. 24.

The moves followed a stormy week that left investors concerned about further market losses due to slowing growth in China and the effect on the global economy. The S&P 500 on Monday posted its worst monthly decline since 2012.

The recent signs of weakness in big economies has raised doubts about earnings growth and fueled worries about whether central bank support could make a difference after years of loose policy around the globe.

Comments by Federal Reserve Vice Chairman Stanley Fischer over the weekend appeared to keep alive the chances of a U.S. interest rate increase in September.

“It’s general risk aversion manifesting itself after a really bad August,” said Mohannad Aama, managing director at Beam Capital Management LLC in New York. “The continued uncertainty about China is definitely adding to worries.”

Sparking Tuesday’s selloff, surveys showed China’s manufacturing sector shrank at its fastest pace in three years while its services sector also cooled.

Data showing U.S. factory activity hit a more than two-year low in August added to investor jitters.

The Dow Jones industrial average .DJI fell 469.68 points, or 2.84 percent, to 16,058.35, the S&P 500 .SPX lost 58.33 points, or 2.96 percent, to 1,913.85, and the Nasdaq Composite .IXIC dropped 140.40 points, or 2.94 percent, to 4,636.11.

MSCI’s all-country stock index fell 2.7 percent and is now down 7.4 percent for the year-to-date. The pan-European FTSEurofirst 300 stocks index .FTEU3 closed down 2.8 percent.

In the oil market, Brent crude LCOc1 dropped 8.5 percent to $49.56 a barrel. U.S. crude CLc1 fell 7.7 percent to $45.41.

While shares and commodities remained the focus, the mood was similarly wary in the currency and bond markets.

U.S. Treasuries prices rose as the Chinese and U.S. data fueled safe-haven bids. Possible selling of long-dated Treasuries by foreign central banks capped those bonds’ gains.

U.S. 10-year Treasuries were last up 8/32 in price to yield 2.17 percent, from a yield of 2.20 percent late on Monday.

The dollar sagged against the safe-haven yen and low-yielding euro as investors unwound bets against the two currencies, which are widely used to fund positions in riskier assets.

The dollar was last off 1.20 percent against the yen, at 119.80 yen JPY=, while the euro rose 0.70 percent to $1.1297 EUR=. ∞∞∞∞∞ MORE »»»»

China: Doubts about China’s ability to manage a tough economic transition sap investor confidence

Published September 1, 2015 by godshope1971

WASHINGTON – The fear that gripped financial markets this month is a stark one: That China’s economy might be slipping into a decline that could persist for years.

But the world’s second-largest economy isn’t collapsing — certainly not yet, anyway. What’s really in freefall is confidence in its leaders, once seen as wielding near-mythic power to keep their economy growing at a propulsive pace. ∞∞∞∞∞ MORE »»»»

China: China’s Richest Traders Flee Stocks as the Masses Pile In

Published August 23, 2015 by godshope1971

Two months into China’s stock rout, the dynamics of the declines are becoming clearer: The wealthiest investors have been the quickest to bail out of the market.
The number of traders with more than 10 million yuan ($1.6 million) of shares in their accounts shrank by 28 percent in July, even as those with less than 100,000 yuan rose by 8 percent, according to the nation’s clearing agency. While some of the drop is explained by falling market values, CLSA Ltd. says China’s rich have taken advantage of state buying to cash out after the nation’s record-long bull market peaked in June.

Investors with the most at stake are finding fewer reasons to own Chinese shares amid weak corporate earnings and some of the world’s highest valuations. With this month’s tumble in the yuan adding to outflow pressures, bulls have started to question whether there’s enough buying power to prop up prices once the government pares back its unprecedented rescue effort — a concern that contributed to the Shanghai Composite Index’s 6 percent plunge on Tuesday.

“The high net worth clients are the ones who moved the market,” Francis Cheung, the head of China and Hong Kong strategy at CLSA, wrote in an e-mail. “They tend to be more savvy.”

The median stock on mainland bourses traded at 72 times reported earnings on Monday, more expensive than any of the world’s 10 largest markets. The ratio was 68 at the peak of China’s equity bubble in 2007, according to data compiled by Bloomberg. ∞∞∞∞∞ CLICK HERE FOR MORE »»»»

China: Attractive Assets

Published August 23, 2015 by godshope1971

The yuan’s retreat to the weakest level since 2011 is increasing the allure of assets denominated in foreign currencies, according to Steve Wang, the chief China economist at Reorient Financial Markets Ltd. in Hong Kong. Yuan positions at China’s central bank and financial institutions fell by the most on record last month, a sign that investors are moving money out of the country.

“China’s capital outflow in July coincided with big investors selling shares,” Wang said. “Small players have been drawn in by government measures to support the market, while wealthy investors cut their stakes.” ∞∞∞∞∞ CLICK HERE FOR MORE »»»»

China: Cyanide in waters near China blast site 277 times acceptable level – government report

Published August 21, 2015 by godshope1971

Chinese authorities warned that cyanide levels in the waters around the Tianjin Port explosion site had risen to as much as 277 times acceptable levels although they declared that the city’s drinking water was safe.

The local government, under pressure from China’s leaders in Beijing to improve industrial safety, also said it would relocate chemical plants away from the area, where thousands of residents were forced to evacuate last week after the release of toxic chemicals by explosions that killed 114 people. ∞∞∞∞∞ CLICK HERE FOR MORE »»»»