Latest news with #LynnSong
Yahoo
23-07-2025
- Business
- Yahoo
China's Long Bonds Join Global Drop as US Trade Tensions Ease
(Bloomberg) -- A global selloff in longer-dated bonds has finally spilled over into Chinese debt, as easing US trade tensions and Beijing's efforts to tackle deflation damp demand for the notes. Trump Awards $1.26 Billion Contract to Build Biggest Immigrant Detention Center in US Why the Federal Reserve's Building Renovation Costs $2.5 Billion Salt Lake City Turns Winter Olympic Bid Into Statewide Bond Boom Milan Corruption Probe Casts Shadow Over Property Boom How San Jose's Mayor Is Working to Build an AI Capital Futures on China's 30-year government securities fell as much as 0.7% on Wednesday to head for the longest run of losses since the contracts were launched in April 2023. Yields on similar-maturity debt in the cash market were on track to rise for a sixth straight session after climbing one basis point to 1.92%. Long-end bonds have borne the brunt of investors' ire worldwide as election largesse and tax cuts trigger fears of bigger fiscal deficits in major markets such as Japan and the US. In the case of China, the rise in yields may suggest that pessimism toward the domestic growth outlook is easing, although a continued increase would likely drive up the cost of government financing. Another extension of the US-China trade 'truce would likely be positive for risk assets, and may encourage a further rotation from bonds to equities,' said Lynn Song, chief Greater China economist at ING Bank NV. 'It would not be surprising to see 30-year yields move higher toward 2% in the event we get risk-positive developments in August.' China's longer-dated notes had earlier shrugged off the selloff in their global peers as investors wagered that authorities would ease policy further and keep liquidity loose to fight persistent deflation. But the focus has now shifted to Beijing's anti-involution drive to curb oversupply in industrial products and boost prices. Becky Liu, head of China macro strategy at Standard Chartered Bank, said the campaign reduces the risk of a prolonged period of deflation and interest-rate cuts. However, the supply-side reforms may be less effective than earlier efforts seen in 2015 to 2016, and this should limit the upside in yields, she added. On the trade front, US Treasury Secretary Scott Bessent said he will meet his Chinese counterparts in Stockholm next week for a third round of talks aimed at extending a tariff truce and widening the discussions. The decline in bonds also came on the heels of the launch of a 1.2 trillion yuan ($167 billion) mega-dam project in Tibet, which is expected to provide more support to the economy. --With assistance from Julia Zhong. Elon Musk's Empire Is Creaking Under the Strain of Elon Musk Burning Man Is Burning Through Cash A Rebel Army Is Building a Rare-Earth Empire on China's Border Thailand's Changing Cannabis Rules Leave Farmers in a Tough Spot How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All ©2025 Bloomberg L.P.
Malaysia Sun
17-07-2025
- Business
- Malaysia Sun
World Insights: China's economic resilience drives global growth
Since the beginning of 2025, the international economic and trade order has experienced severe shocks and increasing uncertainties. In the face of mounting pressure, China's economy has maintained a steady and positive momentum, presenting a high-quality performance. BEIJING, July 17 (Xinhua) -- In the face of a complex international landscape and mounting challenges, China achieved steady economic growth in the first half of 2025, boosting confidence in global growth potential. According to data released by the National Bureau of Statistics (NBS) on Tuesday, China's gross domestic product (GDP) grew 5.3 percent year on year in the first half of 2025 and 5.2 percent year on year in the second quarter. Analysts noted that by steadfastly advancing high-quality development and steadily expanding high-level opening-up, the Chinese economy has demonstrated strong resilience, providing a reliable driving force for global economic growth. STRONG RESILIENCE Since the beginning of 2025, the international economic and trade order has experienced severe shocks and increasing uncertainties. In the face of mounting pressure, China's economy has maintained a steady and positive momentum, presenting a high-quality performance. "Resilience" has become a key word used by overseas media when reporting on the Chinese economy, with many noting that China's economic data in the first half of the year exceeded market expectations and that the country stays on course to meet its annual growth target of around 5 percent. China's GDP growth, despite the impact of U.S. tariff policy, signals strong resilience, highlighting China's adaptive policies and manufacturing depth, said Philippe Monnier, former executive director of the Greater Geneva Berne area (GGBa), the investment promotion agency for Western Switzerland. The encouraging growth of the Chinese economy is mainly attributed to the strong performance in trade, industrial production and retail sales, said Lynn Song, chief economist for Greater China at ING, a Dutch bank. He added that the solid results in the first half should keep China on track to achieve its full-year growth target. Thanks to efforts to strengthen economic and trade ties globally, China's foreign trade sector delivered a strong performance, significantly contributing to overall economic growth. In the first half of the year, China's total goods trade hit 21.79 trillion yuan (3.04 trillion U.S. dollars), reaching a record high for the same period. During this time, China's imports and exports with more than 190 countries and regions registered growth, with 61 trading partners posting trade volumes exceeding 50 billion yuan (6.96 billion dollars). In addition to increased trade with traditional markets such as the European Union, Japan and Britain, emerging markets provided additional momentum. Notably, China's trade with Africa and Central Asia rose by 14.4 percent and 13.8 percent year on year, respectively. EFFECTIVE POLICY Facing an increasingly complex and challenging external environment, China has effectively implemented more proactive and effective macroeconomic policies, further strengthened the domestic economic circulation, continued to advance high-level opening-up and steadily pushed forward economic transformation and high-quality development. In the first half of 2025, domestic demand contributed 68.8 percent to GDP growth, serving as the main engine of economic expansion, according to the NBS. China's emphasis on household subsidies, fiscal support and credit access for small businesses has helped stabilize internal demand while shielding the economy from external shocks, making it more resilient to trade tensions and global slowdowns, Rwandan economic analyst Teddy Kaberuka told Xinhua. Japan's Jiji Press noted that the Chinese government's implementation of a moderately accommodative monetary policy has yielded tangible results in supporting the real economy, and measures introduced to boost consumption also played a positive role in driving economic growth. During the first half of 2025, China saw rapid growth in high-tech sectors such as scientific innovation and green development. Value-added industrial output in high-tech manufacturing rose by 9.5 percent, 3.1 percentage points higher than that of overall industrial output during the same period. With strategic support for sectors such as artificial intelligence, semiconductors, electric vehicles and clean energy, China is transitioning toward a more sustainable, consumption-driven growth model that benefits global supply chains and investment flows, said Monnier. Karim Adel, head of the Cairo-based Al Adl Center for Economic and Strategic Studies, noted that in the challenging year of 2025, China has introduced a series of proactive policies not only to advance its own growth objectives but also to provide sustained momentum for the global economy. BENEFIT THE WORLD In the face of the challenging international landscape, the Chinese economy has demonstrated strong resilience and vast development potential. Driven by innovation, it is advancing high-quality development, contributing to global economic growth and sharing development opportunities with the world. Nicole Hoffmeister-Kraut, minister of economic affairs of the German state of Baden-Wurttemberg, who led a delegation to visit China recently, told Xinhua that she was deeply impressed by China's achievement in science and technology, adding that China is an exciting market in intelligent transportation, robot industry and other emerging areas. In recent years, Germany and China have been deepening cooperation in cutting-edge areas, said Bernd Einmeier, president of the German-Chinese Association for Economy, Education, and Culture. German enterprises remain enthusiastic about investing in China, while a growing number of Chinese companies view Germany as a strategic gateway for expanding into the European market, said Einmeier, noting that this two-way interaction serves as a stabilizing force for global industrial and supply chains. Munetsi Madakufamba, executive director of the Southern African Research and Documentation Center, praised China's zero-tariff measures covering all taxable products for 53 African countries, saying it represents a significant development that has the potential to enhance China-Africa trade relations. The positive performance of the Chinese economy can help Africa unlock its vast economic potential and contribute to its development aspirations, he added. In an era marked by uncertainty, China's stability and development represent confidence and opportunity, said Ng Chin Long, chairman of the Malaysia Friends of Silk Road Club.
Al Jazeera
15-07-2025
- Business
- Al Jazeera
China's economy grows at steady pace despite Trump's trade war
China's economy grew by more than 5 percent in the second quarter, according to official data, staying on track to meet Beijing's annual growth target despite United States President Donald Trump's trade war. China's gross domestic product (GDP) expanded by 1.1 percent from April to June, data from China's National Bureau of Statistics showed on Tuesday. On an annualised basis, China's economy grew 5.3 percent in the first half of the year, keeping it in line with Beijing's full-year target of about 5 percent growth. 'Generally speaking, with the more proactive and effective macro policies taking effects in the first half year, the national economy maintained steady growth with good momentum, showcasing strong resilience and vitality,' the statistics agency said in a statement. Lynn Song, chief economist for Greater China at ING, said China's economic performance was 'certainly encouraging' compared with the 'very downbeat expectations at the start of the year'. 'Trade data benefited from frontloading in the first quarter, but generally held up better than expected in the first half as a whole,' Song said in a note. 'As a result, industrial production has outperformed.' Still, Song cautioned that the second half of the year could 'prove to be more challenging'. 'The tariff uncertainty will remain an overhang, with the next key deadlines coming up soon in August. Though we don't expect a return to the April peak tariffs, we wouldn't rule out further escalations,' he said. Despite Trump's tariffs, exports rose by 5.8 percent year-on-year in June, customs data released on Monday showed, as shipments to non-US markets and a reprieve from the highest duties boosted trade. After US tariffs on Chinese goods soared as high as 145 percent earlier this year, the Trump administration in May reached a deal with Beijing to scale back taxes on each other's exports for at least 90 days. Under the truce, Chinese imports to the US are subject to a minimum duty of 30 percent, while US exports are subject to a 10 percent rate. The two sides have until August 12 to renew their deal or forge a new agreement to avoid the tariffs reverting to their higher rates.
Straits Times
15-07-2025
- Business
- Straits Times
China's economy grows 5.3% in first half of 2025, momentum slowing amid trade tensions
Find out what's new on ST website and app. After a strong start to the year with 5.4 per cent growth in the first quarter, the growth in the second quarter slowed to 5.2 per cent. BEIJING – China's economy grew 5.3 per cent in the first half of 2025, official data showed on July 15, even as ongoing trade tensions with the United States slowed momentum in the second quarter. The headline gross domestic product (GDP) figure for the first half of 2025 announced by China's National Bureau of Statistics is broadly in line with the government's full-year growth target of 'around 5 per cent'. After a strong start to the year with 5.4 per cent growth in the first quarter, the growth in the second quarter slowed to 5.2 per cent, as trade tensions and prolonged property slump weigh down on the world's second-largest economy. China has so far sidestepped an abrupt downturn, thanks to a fragile trade truce struck with the US in mid-May and government policy support. But analysts warn that the second half of 2025 could prove tougher, as exports lose steam and consumer confidence remains low. June's trade figures received a lift from the tariff reprieve, which saw duties on Chinese goods cut to around 55 per cent – down sharply from a punishing 145 per cent. Exporters raced to ship out orders ahead of an August deadline, giving trade a temporary boost. Mr Lynn Song, chief economist of greater China at ING, said in a note to clients on July 14: 'Overall, exports have held up better than most forecasters expected through the first half of the year, and contributed to first-half GDP comfortably beating very downbeat forecasts from the start of the year.' Experts say increasing external uncertainties due to the US-China trade war could raise pressure on policymakers to roll out additional stimulus to support growth. Top stories Swipe. Select. Stay informed. Singapore $3b money laundering case: MinLaw acts against 4 law firms, 1 lawyer over seized properties Business 'Some cannot source outside China': S'pore firms' challenges and support needed amid US tariffs Multimedia From local to global: What made top news in Singapore over the last 180 years? World Trump arms Ukraine and threatens sanctions on countries that buy Russian oil Singapore Turning tragedy into advocacy: Woman finds new purpose after paralysis Opinion Sumiko at 61: Everything goes south when you age, changing your face from a triangle to a rectangle Sport World Aquatics C'ship women's 10km open water swimming event delayed by a day due to water quality Singapore HSA intensifies crackdown on vapes; young suspected Kpod peddlers nabbed in Bishan, Yishun Investors will be watching for signs of fresh stimulus at the upcoming July meeting of the Chinese Communist Party's Politburo, a group of 24 top officials who oversee the party and central government led by President Xi Jinping.
South China Morning Post
12-07-2025
- Business
- South China Morning Post
Plunging pork and poultry prices put pressure on Chinese farmers
China's major protein categories – from pork to poultry – fell into a severe state of oversupply in the first half of this year, with prices declining across the board and widespread losses throughout the supply chain. Analysts said weak end-market demand and high inventory levels are weighing heavily on the breeding sector, and that while marginal improvements are expected in the second half of the year, the overall scope for recovery remains limited. The trend highlights the fragility of China's economic recovery under persistent deflationary pressure, with losses now common among livestock farmers. Many farmers have taken to social media to lament their plight. 'I haven't made any money since February, and I can't afford to replace the cages even though they're broken,' a farmer in Shandong province said on Monday in a post on Douyin, China's version of TikTok, adding that she was losing over 300 yuan (US$42) a day on her more than 6,000 egg-laying hens. China's consumer price index, a key gauge of inflation, entered positive territory in June for the first time since January, but food prices were down 0.3 per cent year on year, the fifth straight month of decline, Lynn Song, Greater China chief economist at Dutch bank ING, said on Wednesday. Most types of food remained in deflationary territory, with the price of pork, down 8.5 per cent, and the price of eggs, down 7.7 per cent, exerting the most downward pressure. Aquatic products, up 3.4 per cent, and fruit, up 6.1 per cent, were among the few categories that saw price increases.
