Financial crisis

Gantry cranes at the Yantian International Container Terminals in Shenzhen, China, on 16 January 2024. (Qilai Shen/Bloomberg)

How can China deal with deflationary pressure?

Although the Chinese economy showed some signs of recovery in 2023, prices have not improved in tandem, with key economic indicators signalling a persistent decline. This has served to deepen fears of deflation and sparked calls for more supportive policy measures.
Four thousand US dollars are counted out by a banker counting currency at a bank in Westminster, Colorado, 3 November 2009. (Reuters/Rick Wilking)

Could de-dollarisation develop into an irreversible historical trend?

Zhang Yugui, dean of the School of Economics and Finance at the Shanghai International Studies University, notes that while the renminbi has gained traction as a global currency for trade settlements, investment and as a reserve currency, the US dollar will still maintain its hegemony until 2030. However, the US is most worried that de-dollarisation could develop into an irreversible historical trend.
Residential buildings under construction in Shanghai, China, on 27 July 2022. (Qilai Shen/Bloomberg)

China’s economic crisis is a ticking time bomb

Taiwanese commentator Chen Kuohsiang believes that China’s economy is under threat, with the unravelling of intertwining issues in the financial industry, property sector and government finances that cannot be easily resolved. How will China boost its investment-led economy, push down unemployment rates, and regain consumer and investor confidence?
The construction site of a China Evergrande Group development in Wuhan, China, on 22 December 2021. (Andrea Verdelli/Bloomberg)

Chinese homebuyers are refusing to pay their mortgages: Is there a way out?

Homebuyers refusing to continue repaying their loans following stalled projects by developers has gained attention in China, with the government calling on banks to extend loans for these ailing real estate companies. Will this lead to a spillover effect that will ultimately damage China’s financial system and economic stability? Zaobao correspondent Yang Danxu tells us more.
Pedestrians walk in front of an electronic quotation board displaying share prices of the Tokyo Stock Exchange in Tokyo, Japan, on 6 January 2022. (Kazuhiro Nogi/AFP)

Can a sliding Japanese yen survive the Fed's interest rate hike?

The Japanese yen has been on a prolonged decline and is unlikely to see an upside given the Japanese central bank’s persistence with its ultra-loose monetary policy. As a result, Japan’s trade balance is worsening and the Japanese people are feeling the crunch as energy and consumer goods prices soar. Chinese academic Zang Shijun believes that the Japanese currency will face even more pressure of rapid depreciation as the US Federal Reserve raises interest rates.
A woman crosses a street in Beijing, April 22, 2020. China's economy shrank for the first time in decades last quarter. (Nicolas Asfouri/AFP)

Salvaging China’s economy: Economic growth is meaningless if the society is ruined

Professor Zheng Yongnian recognises that the economic impact of the coronavirus will be deep. Beyond thinking about whether short-term cash payouts should be given, he mulls over measures that can see China through protracted headwinds. Key is the political will needed to move the country’s strategies away from GDPism, or an obsession with GDP, to those of building social safeguards as the country strives to build a sustainable economy.
Chinese RMB banknotes are seen behind an illuminated stock graph in this illustration taken on 10 February 2020. (Dado Ruvic/Illustration/File Photo/Reuters)

China's yet-to-be-announced stimulus package: Dispensing the right dose

In the aftermath of the 2008 Global Financial Crisis, China trotted out a mega stimulus package that some analysts say did more harm than good. Months into the coronavirus pandemic and China’s support measures have still been measured. How much further will it go in the coming weeks to alleviate the economic strain on enterprises and individuals?