China Economy

5

And now for some Chinese QE

Via Damien Boey at Credit Suisse: Executive summary. In this article, we explore some key concepts for understanding the unique plumbing of the Chinese monetary system, as well as some of our preferred tools for asset allocation. Our “deep dive” is motivated in part by recent policy announcements by the People’s Bank of China (PBoC) against the backdrop of the

2

China services PMI jumps but…

Via Markit: Better but it’s still shite. Remember that these are directional indexes so things getting better is pretty meaningless if the base is disastrous, which it is. I’d like see these indexes well north of 60 if we were going to see any kind of v-shaped recovery worthy of the name.

12

WHO’s internal documents reveal China’s COVID-19 ‘cover-up’

A new report has now unveiled how China withheld data on COVID-19 pandemic, leaving officers of the World Health Organisation (WHO) “helpless and frustrated”: At the height of the coronavirus outbreak, Chinese officials kept vital information from the World Health Organisation which could have slowed the spread and saved lives. Recordings obtained by the Associated

2

Chinese PMIs hang on empty apartments

Via China’s NBS: In May , China Manufacturing Purchasing Managers Index ( PMI ) was 50.6% , a decrease of 0.2 percentage points from the previous month . In terms of enterprise size, the PMI of large enterprises is 51.6% , an increase of 0.5 percentage points from the previous month ; the PMI of

17

Vale Hong Kong as CCP overlords take control

China’s National People’s Congress has approved a draft resolution that paves the way for anti-sedition laws to be enacted in Hong Kong. The laws will end Hong Kong’s autonomy by banning “acts and activities” considered to be a threat to China’s national security, and will permit “national security agencies” to operate in Hong Kong. The

19

FYI: Hong Kong general strike today

Via Bloomie: Hong Kong is bracing for what could be its biggest day of protests in months, with pro-democracy groups calling for a general strike against China’s latest moves to increase control of the city. Protests are planned for Wednesday near the Legislative Council building in central Hong Kong, where lawmakers plan to hold a

15

Hong Kong fights back against CCP overlord

Hong Kong citizens continue to fight back against the Chinese Communist Party’s (CCP) national security laws that will ban subversion, secession, foreign interference and any acts that threaten national security. Hong Kong residents have once again taken to the streets in large numbers to rally for independence, calling the national security law “a direct assault

32

Australia must shut down its CCP-run Confucius Institutes

You’ve got to hand it to the Swedes. They have responded in kind to the Chinese Communist Party’s (CCP) bullying by shutting down the Confucius Institutes operating throughout Sweden: The deteriorating bilateral ties between Sweden and China has resulted in closure of all Confucius Institutes in Sweden – making the Scandinavian country the first country

30

CCP crushes Hong Kong “terrorists”

As reported above by Sky News, thousands of Hong Kong citizens have held a demonstration protesting Beijing’s plan to enforce national security laws on the city. Beijing unveiled plans on Friday to impose laws on Hong Kong that would ban subversion, secession, foreign interference and any acts that threaten national security. According to a CCP

17

Chinese house prices begin to bubble

Chinese house prices were out yesterday and showed a sudden acceleration, up 0.5% on the month and 5.3% on year: The breadth of price rises expanded to 54 cities: Top tiers lagged: Here’s the raw data: It’s a little odd given sales remain shite: But that’s the rub in China. Monetary easing always ends up

54

Australia should fight China with export tariffs

The Chinese Communist Party (CCP) continues to threaten Australia with tariffs for daring to seek an independent investigation into the Wuhan Coronavirus: David Littleproud is the second minister in successive days to admit to being unable to talk to high-ranking Chinese government officials as trade tensions between the two nations continue to fester. It comes

30

62 nations back Australia’s COVID-19 probe

In a move that is certain to further inflame the Chinese Communist Party (CCP), a coalition of 62 countries will back Australia’s push for an independent inquiry into the COVID-19 outbreak ahead of a crucial meeting of the World Health Assembly. All 27 European Union member states, the UK, India, Japan, and Russia are among

30

Australia has the whip hand on China Trade

The Chinese Government has threatened trade sanctions if the Australia continues its push for an independent inquiry into the origins and response to the Wuhan Coronavirus pandemic: High-ranking calls to China have gone unanswered amid an escalating trade dispute with Australia that’s been fuelled by calls to investigate the origins of the deadly coronavirus pandemic.

31

More doubts about wet market virus source

From BioRvix comes the new study: In a side-by-side comparison of evolutionary dynamics between the 2019/2020 SARS-CoV-2 and the 2003 SARS-CoV, we were surprised to find that SARS-CoV-2 resembles SARS-CoV in the late phase of the 2003 epidemic after SARS-CoV had developed several advantageous adaptations for human transmission. Our observations suggest that by the time

16

Peak China is here

Via FTAlphaville: This is a guest post by George Magnus, an independent economist and commentator and research associate at the China Centre at Oxford University and at the School of Oriental and African Studies, in which he warns of the destabilising impact the Coronavirus will have on the world’s relationship with China. Frosty doesn’t begin

16

Hong Kong on brink of explosion once again

After months of relative calm owing to the COVID-19 shutdown, tensions are boiling over in Hong Kong once more. Heavily armed riot Police have stormed malls and fired pellets on pro-democracy protestors, lawmakers are brawling, and Hong Kong’s leader (and CCP puppet) Carrie Lam has vowed to overhaul Hong Kong’s education system to “re-educate the

2

China exports deflation and lot’s of it!

Via China’s NBS: The year-on-year change in industrial producer prices Among the ex-factory prices of industrial producers, the prices of means of production fell by 4.5% year-on-year , an increase of 2.1 percentage points from the previous month , which affected the overall level of ex-factory prices of industrial producers by about 3.31 percentage points.

15

China readying “flood stimulus”

Via Sinocism: The top items today’s newsletter look at: The economy, and signs from the PBoC that more stimulus is on the way as the focus expands from the “six stabilities” to include the “six ensures” and especially to ensure employment and avoid the potential social stability problems from mass unemployment; The claims that the