Tag: china

Indian benchmark indices opened lower today (20th Dec.2021) as investors continue to track the spread of the Omicron Covid variant. The World Health Organization recently warned that the number of cases is doubling in 1.5 to 3 days in areas with community spread. That apart, Asian stocks dropped in early trading today after China slashed its benchmark lending rate for the first time in more than one-and-a-half years. The move likely indicates policymakers' concerns around the slowing economic growth in China, which worried investors. The BSE Sensex quoted 653 points lower at 56,358 level while the Nifty50 broke below the 16,800-mark at 16,795, down 190 points. Both the indices were down over 1 percent each. In the broader markets, the BSE MidCap and SmallCap indices fell 2 percent each. Read more

Veteran investor Mark Mobius has allocated almost half of his emerging-markets fund to India and Taiwan to help offset a slide in China shares that has dragged down returns from developing nations as a whole. “People say emerging markets look bad because China is dragging down the index, but they have to look at other areas such as India that are going up,” said Mobius, who founded Mobius Capital Partners LLP after a career at Franklin Templeton Investments. Mobius’ bullish view on India clashes with those of analysts at Morgan Stanley and Nomura Holdings Inc., who have downgraded the stock market after the benchmark S&P BSE Sensex Index more than doubled from a March 2020 low. Emerging-market equities have trailed behind their developed-nation peers this year, held back by losses in China as the government has roiled markets with a widespread regulatory crackdown. Read more

U.S. stock index futures fell 1% today (20th Sept.2021), as investors worried about rising COVID-19 cases and the pace of economic growth at the start of a week in which the Federal Reserve will decide on potentially tapering its massive pandemic-era stimulus. Futures tracking the blue-chip Dow index, which mainly comprises stocks reliant on a steady economic recovery, were down 1.5% by 04:31 a.m. ET. Wall Street's main indexes have been hurt this month by fears of potentially higher corporate tax rates denting earnings and have shrugged off signs inflation might have peaked. The benchmark S&P 500 is on track to snap a seven-month gaining streak. All eyes on Wednesday(22nd Sept.) will be on the Fed's policy meeting, where the central bank is expected to lay the groundwork for a tapering, although the consensus is for an actual announcement to be delayed until November or December meetings. Read more

Shares of Zee Entertainment zoomed in as much as 39.14% to Rs 260 apiece on Tuesday after top investors of the company have sought the removal of current Managing Director Punit Goenka and two independent directors Manish Chokhani and Ashok Kurien from the board. Invesco Developing Markets Fund and OFI Global China Fund LLC, which together hold 17.88 percent of the total paid-up share capital of the company, have demanded the removal of CEO Punit Goenka and have also sought the appointment of six independent directors. Invesco Developing Markets Fund and OFI Global China Fund LLC’s move to call an extraordinary general meeting seeking the removal of Goenka was a positive development for corporate governance, experts said. Chokhani and Kurien have submitted their resignations with immediate effect before the extraordinary general meeting (EGM). Read more

Bytedance, the owner of Tiktok and Helo apps, has announced the closure of its India business following continued restrictions on its services in the country. TikTok's global interim head Vanessa Pappas and vice president for global business solutions Blake Chandlee in a joint email to employees have communicated the decision of the company that it is reducing team size and the decision will impact all employees in India. The executives expressed uncertainty about the company's comeback to India but expressed hope to do so in times to come. "We look forward to receiving the opportunity to relaunch TikTok and support the hundreds of millions of users, artists, storytellers, educators, and performers in India," the spokesperson said.

China is forcing Australia to confront what many countries are concluding: The coal era is coming to an end. China has now officially blocked coal imports from Australia after months of vague restrictions that dramatically slowed trade and stranded huge ships at sea. For Australia, the world’s largest coal exporter, the decision is a gut punch that eliminates its second-biggest market at a time when many countries are already rethinking their dependence on a filthy fossil fuel that accelerates the devastation of climate change. While Beijing’s motives are difficult to divine, there are hints of mercantilist protection for local producers and the desire to punish Australia for perceived sins that include demanding an inquiry into the source of the coronavirus. China’s commitment to cut emissions may also allow it to be marginally more selective with its vast purchases.

The Indian Army and the Chinese People's Liberation Army(PLA) have been locked in a tense standoff in multiple areas along the Line of Actual Control(LAC) in eastern Ladakh since early May. The two countries agreed to a five-point plan for resolving the prolonged border face-off in eastern Ladakh that included abiding by all existing agreements and protocol on management of the frontier, maintaining peace and tranquility, and avoiding any action that could escalate matters. The plan was finalised during the talks between External Affairs Minister S Jaishankar and his Chinese counterpart Wang Yi in Moscow on Thursday evening on the sidelines of a Shanghai Cooperation Organisation (SCO) meet. Read more

An incident of firing took place on the LAC in the Eastern Ladakh sector where troops of India and China have been engaged in a stand-off for over three months, according to sources, today(8th Sept.2020). India recently outflanked China by taking control of strategic height near Pangong lake's southern bank. It thwarted an attempt by the Chinese army to transgress into Indian areas near the southern bank of Pangong Tso near Chushul in Ladakh. India and China are engaged in a standoff since April-May over the transgressions by the Chinese Army in multiple areas including the Finger area, Galwan valley, Hot springs, and Kongrung Nala. The situation worsened after 20 Indian soldiers were killed in violent clashes with Chinese troops in Galwan valley in June. The talks between the two sides have been going on for the last three months including five Lieutenant general-level talks but have failed to yield any results, so far.

Indian and Chinese armies witnessed a violent clash that led to the death of 20 Indian Army personnel. Why is it that the Chinese have chosen to make Ladakh a flashpoint, especially now? The answer lies in the strategic advantage offered by Ladakh. As reported by Economic Times, Chinese troops have intruded up to 3 km in the Galwan area and are dominating the heights that threaten the strategic Darbuk-Shyok-Daulat Beg Oldie (DSDBO) road. Colonel Bhat (retired) says that the intention of the Chinese could possibly be to attempt and capture the entire Galwan valley and its confluence point with the Shyok river, along which the Indian road runs. Read more

After foreign direct investment (FDI), the Indian government is looking to clamp down on unbridled access to the Indian market by Chinese portfolio investors as it seeks to plug a possible loophole that investors from across the border can use to acquire shares in listed domestic companies. The department of economic affairs in the finance ministry is looking at options, including the possibility of mandating the “approval route” for Chinese foreign portfolio investment (FPI) as well. FPI investors typically acquire smaller shares and keep churning their investments. The government will initiate the steps in consultation with markets regulator Sebi. Read more

The coronavirus outbreak in China will have a limited impact on India but the global GDP and trade will definitely get affected due to the large size of the Chinese economy, RBI Governor Shaktikanta Das has said. The pharmaceutical and electronic manufacturing sectors in India are dependent on China for inputs and they may be impacted, Das told. Alternatives are being explored to overcome these issues, he said. For India, China is an important trading partner and policymakers both in the government and the monetary authority "are very watchful of the developments that are taking place," Mr Das said. He noted that the critical thing to be watched and monitored now is how quickly Chinese authorities are able to contain the problem. For India, he said, the important aspect is manufacturer should be able to quickly develop alternative sources.

China's exports and imports fell in January after a brief rebound at the end of last year and a rapidly spreading virus outbreak could disrupt its global trade for months to come. Exports from the world's second-largest economy are expected to have dropped 4.8% in January from a year earlier compared with a 7.9% gain in December and marking the steepest fall since February 2019. Imports fell 6% from a year earlier in January, a sharp contrast with 16.5% growth in the previous month. The drop was likely due to seasonal distortions caused by the long Lunar New Year holidays. The impact of the virus on trade will start to show in February data as many Chinese exporters say they're facing difficulty in fulfilling overseas orders for February as companies are unsure when they will resume production.

Stocks in Shanghai opened 8.7 percent lower in early Monday, while shares in the southern Chinese boomtown of Shenzhen fell 9 percent. The markets had been closed since Jan. 23 for the Lunar New Year holiday, and government officials extended that closure until Monday while the authorities dealt with the outbreak. Read more