Latest news with #HuangYiping
Yahoo
15-07-2025
- Business
- Yahoo
ETFs in Focus as China Exceeds Growth Expectations in Q2
China's economy expanded at a slightly faster-than-expected pace in the second quarter of 2025, surpassing Beijing's full-year target of 5%. This stronger performance has eased immediate pressure on policymakers to introduce further economic stimulus, as quoted on CNBC. According to the National Bureau of Statistics (NBS), gross domestic product (GDP) grew by 5.2% in Q2, outpacing the 5.1% forecast by Reuters-polled economists. However, this figure still marked a slowdown from the 5.4% growth recorded in the first quarter. Despite some weak spots, analysts believe China may hold off on introducing additional stimulus measures in the near term, as quoted on CNBC. Some analysts believe that more significant stimulus could be delayed until September, should economic momentum weaken further. Beijing's earlier stimulus efforts have had a partial effect. Manufacturing activity improved. Exports held up well. Shipments to Southeast Asia rose by 13%, and exports to the European Union increased 6.6%. In April, U.S. President Donald Trump escalated tariffs on Chinese imports to a steep 145%, prompting Beijing to deploy a round of supportive measures. The two countries reached a truce in May, agreeing to roll back most tariffs. A follow-up meeting in London in June resulted in a framework agreement, with China committing to faster approval of rare-earth mineral exports, while the United States pledged to ease technology restrictions and relax visa rules for Chinese students. A deadline of August 12 has been set for finalizing a permanent trade agreement. Despite outward signs of resilience, economists warn of underlying vulnerabilities in the Chinese economy. In a recent report, People's Bank of China (PBOC) advisor Huang Yiping and co-authors urged the government to introduce up to 1.5 trillion yuan in fiscal stimulus to bolster household spending and counter the effects of U.S. tariffs. China's economy appears to be on track to meet its 5% growth target for 2025, supported by exports and selective stimulus. However, weaker domestic demand, a struggling real estate sector, and global uncertainties are negatives. Against this backdrop, investors can keep a track of China-based exchange-traded funds (ETFs) like iShares MSCI China ETF MCHI, KraneShares CSI China Internet ETF KWEB, iShares China Large-Cap ETF FXI, Xtrackers Harvest CSI 300 China A-Shares ETF ASHR and Invesco China Technology ETF CQQQ. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report iShares China Large-Cap ETF (FXI): ETF Research Reports Invesco China Technology ETF (CQQQ): ETF Research Reports iShares MSCI China ETF (MCHI): ETF Research Reports KraneShares CSI China Internet ETF (KWEB): ETF Research Reports Xtrackers Harvest CSI 300 China A-Shares ETF (ASHR): ETF Research Reports This article originally published on Zacks Investment Research ( Zacks Investment Research
Business Times
11-07-2025
- Business
- Business Times
PBOC adviser urges 1.5 trillion yuan stimulus to counter US tariffs
[BEIJING] China should add as much as 1.5 trillion yuan (S$268 billion) in fresh stimulus to boost consumer spending and maintain currency flexibility to counter US tariffs' drag on growth, academics including an adviser to the country's central bank said. The Chinese economy has been facing 'new disruptions' since April, when US levies jumped, in addition to persistent deflation, Huang Yiping, a member of the monetary policy committee of the People's Bank of China (PBOC), and two other experts wrote in a report published on Friday (Jul 11). 'To address these evolving challenges, China must adopt a more forceful counter-cyclical approach to maintain stable growth, while advancing aggressively with structural reforms,' said the authors, who include Guo Kai, a former PBOC official, and Alfred Schipke, director of the East Asian Institute at the National University of Singapore. The authorities should consider an additional one trillion yuan to 1.5 trillion yuan package over 12 months to lift household consumption to mitigate damages on the economy from 20 to 30 per cent US tariffs, they wrote. That compares with 300 billion yuan that central authorities plan to borrow this year by selling ultra-long sovereign special bonds to subsidise consumer purchases in its flagship initiative to boost spending. Economists broadly expect Beijing to ease policies further in the coming months to shield the economy from a potential slump in exports due to US President Donald Trump's tariffs and Washington's tightening scrutiny over the rerouting of Chinese shipments. Domestically, the property market is still struggling and deflationary pressures are building as businesses cut prices to keep customers. Huang and his colleagues also see room for the PBOC to cut policy rates further and guide banks to lower the Loan Prime Rates to help bolster expectations of stronger nominal growth, which is key for corporate profits. They suggest that the central bank to maintain 'sufficient' flexibility in the yuan to absorb future external shocks. Over the longer term, the government needs to expand the personal income tax base and simplify value-added tax structures in part of the reforms to ensure fiscal sustainability, they said. They also called for managing risks associated with loans to small- and medium-sized enterprises (SMEs) to free up banks' capacity to extend new credit to more productive sectors. After years of policies to encourage lending to SMEs and extended repayment deadlines, outstanding loans to the group now exceed 60 per cent of China's gross domestic product, up from 37 per cent in 2019 and surpassing exposures to local government financing vehicles, they said. BLOOMBERG
Yahoo
11-07-2025
- Business
- Yahoo
PBOC Adviser Urges $209 Billion Stimulus to Counter US Tariffs
(Bloomberg) -- China should add as much as 1.5 trillion yuan ($209 billion) in fresh stimulus to boost consumer spending and maintain currency flexibility to counter US tariffs' drag on growth, academics including an adviser to the country's central bank said. Singer Akon's Failed Futuristic City in Senegal Ends Up a $1 Billion Resort Are Tourists Ruining Europe? How Locals Are Pushing Back Can Americans Just Stop Building New Highways? Why Did Cars Get So Hard to See Out Of? How German Cities Are Rethinking Women's Safety — With Taxis The Chinese economy has been facing 'new disruptions' since April, when US levies jumped, in addition to persistent deflation, Huang Yiping, a member of the monetary policy committee of the People's Bank of China, and two other experts wrote in a report published Friday. 'To address these evolving challenges, China must adopt a more forceful counter-cyclical approach to maintain stable growth, while advancing aggressively with structural reforms,' said the authors, who include Guo Kai, a former PBOC official, and Alfred Schipke, director of the East Asian Institute at the National University of Singapore. The authorities should consider an additional 1-1.5 trillion yuan package over 12 months to lift household consumption to mitigate damages on the economy from 20%-30% US tariffs, they wrote. That compares with 300 billion yuan that central authorities plan to borrow this year by selling ultra-long sovereign special bonds to subsidize consumer purchases in its flagship initiative to boost spending. Economists broadly expect Beijing to ease policies further in the coming months to shield the economy from a potential slump in exports due to US President Donald Trump's tariffs and Washington's tightening scrutiny over rerouting of Chinese shipments. Domestically, the property market is still struggling and deflationary pressures are building as businesses cut prices to keep customers. Huang and his colleagues also see room for the PBOC to cut policy rates further and guide banks to lower the Loan Prime Rates to help bolster expectations of stronger nominal growth, which is key for corporate profits. They suggest the central bank to maintain 'sufficient' flexibility in the yuan to absorb future external shocks. Over the longer term, the government needs to expand the personal income tax base and simplify value-added tax structures in part of reforms to ensure fiscal sustainability, they said. They also called for managing risks associated with loans to small- and medium-sized enterprises to free up banks' capacity to extend new credit to more productive sectors. After years of policies to encourage lending to SMEs and extended repayment deadlines, outstanding loans to the group now exceed 60% of China's gross domestic product, up from 37% in 2019 and surpassing exposures to local government financing vehicles, they said. Will Trade War Make South India the Next Manufacturing Hub? Trump's Cuts Are Making Federal Data Disappear 'Our Goal Is to Get Their Money': Inside a Firm Charged With Scamming Writers for Millions 'Telecom Is the New Tequila': Behind the Celebrity Wireless Boom For Brazil's Criminals, Coffee Beans Are the Target ©2025 Bloomberg L.P.
Bloomberg
11-07-2025
- Business
- Bloomberg
PBOC Adviser Urges $209 Billion Stimulus to Counter US Tariffs
China should add as much as 1.5 trillion yuan ($209 billion) in fresh stimulus to boost consumer spending and maintain currency flexibility to counter US tariffs' drag on growth, academics including an adviser to the country's central bank said. The Chinese economy has been facing 'new disruptions' since April, when US levies jumped, in addition to persistent deflation, Huang Yiping, a member of the monetary policy committee of the People's Bank of China, and two other experts wrote in a report published Friday.
South China Morning Post
03-07-2025
- Business
- South China Morning Post
Economist Huang Yiping floats Hong Kong as stablecoin staging ground
Issuing a stablecoin pegged to the offshore yuan in Hong Kong may be more feasible than in mainland China due to the latter's capital controls, a central bank adviser has said. The comments from Huang Yiping, also dean of Peking University's National School of Development, came as worries arise in Beijing's policy circles that Washington could gain an upper hand through the cryptocurrency offshoot as a means of consolidating US dollar dominance. 'As China's capital account is not fully liberalised, it would be very difficult to roll out a stablecoin domestically,' he told financial news outlet on Wednesday. Huang, an influential figure in his second stint at the People's Bank of China's monetary policy committee, acknowledged Hong Kong's speedy progress in this area. The special administrative region – often a staging ground for financial experimentation – has taken a more permissive stance than the mainland. In late May, the city passed a law establishing a regulatory framework for stablecoins that is set to take effect on August 1. Although stablecoins can be pegged to any fiat currency, more than 99 per cent are currently backed by the US dollar or US dollar-denominated assets – far exceeding the US dollar's roughly 50 per cent share in global payments and its 58 per cent share of global foreign exchange reserves. 'The issue with issuing a stablecoin in Hong Kong is that if it's pegged to the Hong Kong dollar, which in turn is pegged to the US dollar - so ultimately, it's the US dollar that plays the foundational role,' Huang said.
