Technology
Economics
Finance
Environment
Infrastructure Projects
Climate
Climate emergency
Economic stimulus
All of this happened in China this week. A thread. 1/10
Climate emergency. A brutal heatwave and Sichuan's worst drought since 1961 spur power cuts and factory shutdowns. China is using two massive drones to seed rainclouds in the province, which is highly reliant on hydropower. 2/10
bloomberg.com
bloomberg.com
More stimulus. China announces 1t yuan of funds for infrastructure projects as part of a 19-point policy package. But borrowers remain cautious. Under pressure to pump more credit into the economy, at least six banks are inflating their loan numbers. 3/10
bloomberg.com
bloomberg.com
Targeted support for the property market. Chinese banks lower rates to make mortgages cheaper, the housing ministry offers 200b yuan in special loans to ensure homes are delivered, and some developers start selling onshore bonds with state guarantees. 4/10
bloomberg.com
bloomberg.com
Misconduct. A number of real estate executives are being investigated by authorities for suspected law violations. The liquidity crisis in the past ~18 months has revealed a number of legacy governance issues at Chinese property developers. 5/10
bloomberg.com
bloomberg.com
Currency defense. The dollar's unstoppable rally pressures the yuan, which weakens to a two-year low. The PBOC takes steps to keep things stable. It's a balancing act: a weaker yuan helps exports but *rapid* depreciation can stoke capital outflows. 6/10
bloomberg.com
bloomberg.com
Russia's yuan plans. The Chinese currency is so popular in sanction-hit Russia that Moscow is reviving a plan to sell yuan-denominated debt. Yuan trading has risen more than 40x in Russia since the start of the year, according to Citigroup. 7/10
bloomberg.com
bloomberg.com
Progress. Beijing and Washington may be nearing a deal to avoid mass delistings of Chinese ADRs. One option would have US regulators travel to Hong Kong to inspect audit papers, the WSJ reports. Tech stocks surge as investors welcome this possibility. 8/10
wsj.com
wsj.com
Supply chains. Apple will begin manufacturing the iPhone 14 in India only two months after the China release, shortening the lag. Separately, Maersk cancels a deal to sell its refrigerated container unit to a Chinese company after the DOJ said no. 9/10
bloomberg.com
bloomberg.com
Taiwan tensions. US Senator Marsha Blackburn is in Taipei, the third visit by a US lawmaker to the city this month. China reiterates its opposition to any official US-Taiwan ties, but keeps warships at least 24 nautical miles from the island's coast. 10/10
bloomberg.com
bloomberg.com
Loading suggestions...