Skip to main content

China hopes to consumption increase.

 The Chinese gov­ern­ment has vowed to make con­sump­tion the «main driv­ing force» of the eco­nomy as hopes

China

grow that Beijing’s aban­don­ment of zero-Covid policies will unleash a flood of spend­ing by Chinese con­sumers, fuel­ling a global rebound. «The greatest poten­tial of the Chinese eco­nomy lies in the con­sump­tion by the 1.4bn people,» Li Keqi­ang, premier, said dur­ing a meet­ing of China’s cab­inet, the state coun­cil, accord­ing to a state­ment released late on Sat­urday. While China has long sought to boost con­sumer spend­ing, the com­ments from its out­go­ing premier come at a cru­cial moment as Beijing seeks to rebuild the eco­nomy after years of pun­ish­ing lock­downs. The Chinese eco­nomy grew by just 3 per cent in 2022, under­scor­ing the impact of the gov­ern­ment’s zero-Covid strategy before it was aban­doned last month.

Mul­tina­tion­als includ­ing Uni­lever have said in recent weeks they were expect­ing a rebound in demand in the coun­try and banks includ­ing Mor­gan Stan­ley have increased their Chinese growth fore­casts. Still doubts remain over the will­ing­ness of Chinese con­sumers to start spend­ing again. Chinese cit­izens cel­eb­rated lunar new year last week for the first time since pan­demic con­trols were lif­ted.
Labels:

Comments

Post a Comment

Cloud Bookkeeping

H&M struggles with profitability.

  H&M blamed high clothes prices ,  its exit from Rus­sia and a cost-cut­ting pro­gramme for an unex­pec­tedly large col­lapse in its earn­ings as the world’s second-largest fash­ion retailer’s struggles with prof­it­ab­il­ity con­tinue .  Oper­at­ing profit plunged 87 per cent to SKr820mn in the fourth quarter to the end of Novem­ber from a year earlier .  Shares in H&M fell more than 4 per cent to SKr125 . 80 yes­ter­day ,  hav­ing lost nearly half of their value since their recent peak in April 2021 .  The Swedish retailer ,  which lags behind Indi­tex ,  the Span­ish owner of Zara ,  in sales and prof­it­ab­il­ity ,  launched a SKr2bn cost-cut­ting pro­gramme last year that included 1 , 500 job losses . H&M’s sales in the fourth quarter were up 10 per cent to SKr64 . 4bn but flat in local cur­rency terms .  It said sales from Decem­ber 1 to Janu­ary 25 had increased 5 per cent in local cur­ren­cies .  «Sales in ...
2 comments
Read more

Commercial properties continue to fall

  UK commercial property values and rents are projected to «tumble off a cliff edge» in the first quarter of 2023, as estate agents warn offices will fare worst as prices fall. A survey of more than 400 commercial agents forecast a 2.9 per cent decrease in prices per square foot across the industry in the first three months of the year, with offices falling 3.1 per cent. «Where we saw the market stop still, we will see the market finding its level, people working out where things are, where value is,» he said. Listed vehicles have already seen this valuation drop in their share prices, with real estates investment trusts such as Land Securities and British Land falling by a fifth or more this year. According to the RIB estate report, offices are expected to suffer the most significant sales price falls, with nearly a third of respondents expecting them to come down by more than 5 per cent. In addition, the survey projected a 1.3 per cent fall in rents per square foot over the perio...
Post a Comment
Read more

BoE is considering to increase deposit guarantee.

  According to anonymous sources, the Bank of England is considering reforming its deposit guarantee scheme. The move comes in response to concerns that the current system may not be sufficient to protect customers in case of a bank failure. The Financial Services Compensation Scheme guarantees deposits up to £85,000 per person per institution. However, some experts have raised concerns that this may not be enough to prevent a run on banks in a significant financial crisis. As a result, the Bank of England is reportedly considering several options for reforming the scheme, including increasing protection and introducing more stringent bank regulations. A final decision on any changes will be made later this year. One option the Bank of England considers is increasing the protection offered by the deposit guarantee scheme. This could involve raising the maximum amount guaranteed per person or extending coverage to more types of deposits. Another possibility is to introduce more stri...
Post a Comment
Read more