Radio France Internationale (RFI) Chinese Edition recently reported that China’s steel output fell more than 10 percent in August from a year earlier. The fall was due to low steel prices and a slump in demand. China’s steel industry, which is the largest in the world, has not seen such low levels of output since 2017.

Major supplier China’s Baowu Steel Group warned that the situation may become increasingly dire. As Chinese steel mills’ losses continue to grow for every ton of steel they produce, more and more mills are choosing to shut down their furnaces. According to China’s National Bureau of Statistics, Crude steel production fell to 77.9 million tons in August, down 10.4 percent year-over-year.

The country’s decline in demand for steel comes after more than two decades of rapid industrialization and urbanization. Demand has been affected by a continuing slump in construction activity in China this year, especially during the summer. China’s economic woes, from a battered real estate market to weakening consumer confidence, are also weighing on the demand.

Source: RFI Chinese, September 14, 2024
https://tinyurl.com/yum6hw66

Since the beginning of August there have been more than 1,100 official resignations tendered by executives at companies with listed A-shares on the Chinese stock markets.

The financial industry accounts for a particularly large proportion of the resignations seen in the current wave, with many bank executives stepping down. This includes Liu Jin, Vice Chairman, who was the Bank of China’s Executive Director, President, and a Member of the Strategic Development Committee of the Board of Directors. Since the beginning of 2024, almost all senior executives positions at the top six state-owned national banks have undergone personnel changes. Moreover, the current trend has seen not only turnover in senior management positions but also among regular employees in the banking industry. According to Wind Statistics, in the first half of 2024, the country’s 42 mainstream banks saw a decrease in headcount of about 60,000 compared with the same period last year.

Like banks, asset management companies in China have performed relatively poorly in recent years. Compared with the wave of resignations in the banking sector, resignations in the securities industry has been relatively more correlated with age. The largest shareholders of China’s leading securities companies are mostly state-owned assets, and these companies have adopted a model of leadership associated with state ownership.

Although most executives who resigned in the recent wave cited personal reasons for stepping down, it cannot be ruled out that many stepped down out of concern that they might take the blame if their companies’ current poor economic performance were to continue. That being said, for an executive to resign would not necessarily provide him or her with full reputational protection.

Source: JRJ, September 11, 2024
https://stock.jrj.com.cn/2024/09/11100143171400.shtml

The Chinese government has adjusted its policy on international adoption. In the future, no more children will be sent abroad for adoption except for adoption of relatives and stepchildren.

Since 1979, China has implemented a strict “one-child policy” nationwide. This family planning policy led to a large number of baby girls and children with disabilities being abandoned, who were taken in by orphanages. The CCP first allowed adoption of children by families abroad starting in the 1980s. In 2005 Beijing enacted a “Convention on the Protection of Children and Cooperation in Respect of Intercountry Adoption.” That year, the number of international adoptions of Chinese children by foreign families peaked, with over 13,000 children adopted. In the past few years, China has moved to a “domestic adoption first” policy.

A post from the U.S. State Department’s ShareAmerica social media account on July 18 stated that American families have been the primary adopters of Chinese orphans since China opened up international adoptions in the 1980s. According to statistics from the U.S. State Department’s Bureau of Consular Affairs, 82,658 Chinese children have been adopted by American families since the year 2000, accounting for 29.2 percent of all adoptions of foreign-born children by Americans. Adoptions of Chinese-born children by Americans have dropped to near zero since the COVID pandemic due to the CCP’s suspension of international adoptions.

Source: VOA, September 5, 2024
https://www.voachinese.com/a/china-halts-foreign-adoptions-for-its-children-20240905/7772418.html

According to Nikkei Chinese, mid-year financial reports for Chinese real estate developers in the first half of 2024 revealed that 56% of large real estate companies in China and Hong Kong reported losses, comprising 88 of the 158 companies covered by the analysis. The real estate downturn has led to a persistent slump in new home sales, with sales declining by 15%. Fifteen of companies, including the Evergrande Group and Country Garden Holdings, did not disclose their mid-year reports by the August 31 deadline and were excluded from Nikkei’s statistics.

The total losses for the 158 companies covered amounted to 64.3 billion yuan ($8.9 billion), significantly higher than the 13.1 billion yuan ($1.8 billion) loss during the same period last year. Private enterprises with poor financing capabilities accounted for the majority of top losses.

Shimao Group Holdings reported the largest loss at 22.7 billion yuan ($3.1 billion), an increase from the previous year’s 12.1 billion yuan ($1.7 billion) loss. The company defaulted on its debt in July 2022, releasing a statement to the effect that the real estate market continues to adjust with no turning point in sight for the current sales slump.

Sunac China Holdings reported the second-largest loss at 15 billion yuan ($2.1 billion).

China Aoyuan Group reported the highest profit at 22.3 billion yuan ($3.1 billion), a turnaround from the company’s 2.9 billion yuan ($400 million) loss last year. This company’s profits, which came despite a 57% decrease in sales, were largely due to gains from foreign currency debt restructuring.

Source: Nikkei Chinese, September 3, 2024
https://zh.cn.nikkei.com/china/ccompany/56585-2024-09-03-09-14-39.html