CNBC’s The China Connection newsletter: New bets, old worries

This report brings you insight and analysis from this week’s CNBC’s The China Connection bulletin about what directs the world’s second largest economy. Every week, we will discover the biggest business stories in China, decrease in market movements, and help you set up for next week. As you can see? You can subscribe Here.

One of the dripping of gloomy headlines this summer was mixed Very online attention That a social media account operated by the state has published a comment on Saturday To eliminate fears.

Anxiety, one The court decision starts on September 1 Struggling enterprises often forced the purchase of national insurance for all employees due to wage cuts and brutal competition.

But in reality, the decision is not something new.

“The government did not change politics, this [many businesses] He hadn’t followed the policy, “he said, Wen Biao, General Manager of the Shenzhen -based Qianhe Technology Logistics, in the Mandarin statements translated by CNBC.

It is a gray area that enables workers to charge more home or spend less on workmanship. China’s “Social” Insurance Program includes the scope of health and retirement, which is locked for decades of cash medical activities or retirement.

Renewed attention, low wages and frequent overtime studies fueled discussions and added to depressive sensitivity.

The consumer feeling in the USA also worsened, pre -reading Compiled by Michigan University for August. In the report, although American consumers are not prepared for the worst, many still expect inflation and unemployment to deteriorate.

Although the US and China extend a trade ceasefire until mid -November last week, trade tensions continue. However, this leaves approximately 55% tariffs to the largest trade partner in most Chinese exports.

Bruce Pang, an assistant professor at Hong Kong Business School Chinese University, hidden China’s inadequate domestic demand for more powerful export growth than expected.

It did not take long for these problems to emerge.

Only in the last few days, data bulletins for July have shown that new bank loans have fallen unexpectedly. For the first time in 20 years. Retail sales, industrial and investment figures missed expectations – underlining a still unresolved real estate collapse – Chinese Premier Li Qiang ACCEPTED AT A GOVERNMENT MEETING Monday.

Li called for more effective measures to address the real estate market, balance market expectations and provide social stability. China’s property and construction industry once made up more than a quarter of China’s GDP, and it is still the main driving force of its household.

Local governments fought financially after the loss of their income from land sales to developers.

In order to address the Real Estate Struggle, Luo Zhihang, Chief economist of Yuekai Securities, proposed the central government to create a 2 trillion Yuan ($ 280 billion) fund to develop qualified real estate projects. He also called for more financial support for local governments.

Despite the winds, Beijing maintained its official growth target as 5% throughout the year – this week reiterated a goal.

Pang of Hong Kong Chinese University, despite some acceleration loss of the economy can still reach the target, he said.

According to him, work trust was worse last year, and now it is just a matter of time for politics to come into force. The difficulty said that the external situation may disrupt these plans, that an additional stimulus depends on the uncertainty around the US-China trade tensions and a possible federal reserve interest rate deduction.

However, while China’s domestic economy goes out through a transition away from real estate, its companies return abroad.

For Wen from Qianhe Technology, the main business in the field of logistics and overseas e-commerce was shot by the US-China tensions. Unless the trade ceasefire ends in November, he does not expect the orders to revive again.

“This is not only China, but the whole world in the case of restlessness,” he said.

But it is still optimistic. According to him, tensions created a generation opportunity for Chinese enterprises to invest in factories abroad – just as Singapore, Hong Kong and Taiwan shifted the production of production after the World Trade Organization in 2001.

Shein’s public offering epic continues. Fast fashion giant Bloomberg, Bloomberg reported that Beijing is considered to be confirmed for the long -awaited public offering for the long -awaited public offering.

Tencent has sufficient AI training chips. After the company declares that AI -oriented improvements, President Martin Lau told the investors last week Increase marketing services income by 20% In the second quarter.

China’s electric car investments are increasing. According to a report published by the US -based consulting firm Rhodium Group on Monday, the industry has first invested in factories abroad for the first time than home.

Hong Kong’s While the Hang Seng index increased by 0.19%, the CSI 300 of the mainland added 0.99% after leaving China’s basic credit rates constant in August for a third straight month.