Economy/Resources - 22. page

On December 17, 2024, the Chinese Ministry of Immigration announced that it would fully relax its transit visa exemption policy starting from that day. Citizens of 54 countries will now enjoy transit visa-free treatment when passing through China on their way to a third country or region. They can enter China through any of its 60 open ports of entry across 24 provinces, and stay within the “designated area” for up to 240 hours.

These 54 countries include 40 European nations, 6 from the Americas, 6 from Asia, and 2 from Oceania, covering almost all of the world’s most economically developed countries. This list also includes what the Chinese Communist Party viewed as “hostile nations” such as the United States, Canada, Japan, South Korea, and Australia. Among these 54 countries, citizens of 38 have already enjoyed the unilateral visa exemption treatment by China in the past year, with a current stay limit of 30 days.

In the face of economic decline, China is attempting to attract more foreigners to visit for tourism and business purposes. NTDTV reported that online commentators had remarked “the government is really desperate.”

Source: NTDTV, December 17, 2024
https://www.ntdtv.com/gb/2024/12/17/a103938629.html

Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that nearly 40 brokerages have exited the Hong Kong market in 2024. The withdrawals came Beijing’s efforts to boost liquidity and adopt stimulus plans with the goal of reviving trading.

Hong Kong’s stock exchange saw fewer participants for the third consecutive year amid sluggish trading and lackluster initial public offerings, leaving many smaller brokerages struggling financially. Data from Hong Kong Exchanges and Clearing Limited shows that 37 companies have stopped trading this year and no new participants have joined. Another six companies have decided to restart trading business after suspension. The total number of brokerage firms now participating in trading on the Hong Kong Exchange is now 616.

Brokerages that have exited this year include United Securities Co., Ltd. In its heyday, United Securities was one of a handful of homegrown corporate advisers joining Wall Street giants at the top of the IPO charts, but now its profit margins are razor-thin and the stakes are high. According to Gao Juan, chairman of the Hong Kong Securities Association, the trend of brokers withdrawing from the market may continue for another two to three years even though trading volume has rebounded.

Source: Lianhe Zaobao, December 18, 2024
https://www.zaobao.com.sg/finance/china/story20241218-5616428

Primary Taiwanese news agency Central News Agency (CNA) recently reported that the Hong Kong General Chamber of Commerce has released a survey report showing member companies are bearish on Hong Kong’s economic outlook for the coming year.

The survey results indicated that 44.3 percent of the members surveyed were pessimistic about Hong Kong’s economy in 2025, while only 18.3 percent were optimistic, and 25.1 percent remained unchanged. In terms of recruitment intentions, only 26 percent of the surveyed companies plan to hire more staff, 49.8 percent will keep the staff unchanged, and 17.4 percent plan to lay off employees. The survey also showed that members of the Chamber are optimistic about the prospects of overseas regions, with 38.6 percent and 25.9 percent of the surveyed companies planning to increase investment in the ASEAN and the Middle East markets, respectively.

The Chairman of the General Chamber of Commerce said that, in the face of global economic turmoil, strong growth in these overseas regions will help Hong Kong businesses offset the impact of economic and geopolitical headwinds.

Source: CNA, December 13, 2024
https://www.cna.com.tw/news/acn/202412130055.aspx

Nikkei Chinese Edition recently reported that money is flowing out of emerging market assets, especially Chinese equity funds. Chinese stock markets experienced outflows for five consecutive weeks. Outflows from the Chinese market during the last four weeks reached US$16.9 billion, an all-time high. Nikkei cited data from EPFR, an American research firm that tracks global investment trust funds.

The Conference of the Chinese National People’s Congress, which concluded on November 8, did not introduce further fiscal stimulus to the Chinese markets. According to Naoki Tsukioka, chief economist at Mizuho Research & Technology in Japan, “There is a growing view in Chinese markets that the situation is ‘worse than expected.'”

Equity funds in India, Brazil, and Thailand also saw major capital outflows. The backdrop to such outflows is the strength of the US economy. The appreciation of the US dollar relative to other currencies has led to the expansion of US dollar debt in emerging market countries. Capital flows in emerging markets may further change under policies expected from the coming Trump administration, with China and Mexico likely to be negatively affected.

Source: Nikkei Chinese, November 19, 2024
https://cn.nikkei.com/china/cfinancial/57284-2024-11-19-09-14-59.html

According to the recently released 2024 China Statistical Yearbook, China’s population decreased by 2.08 million people in 2023. The country’s natural population growth rate fell to -1.48 per thousand, marking a decline of 8.8 percentage points from the previous year. The national birth rate dropped to 6.39 per thousand, meaning fewer than 7 births per 1,000 people.

Among China’s 31 provinces and regions, only eight maintained positive natural population growth rates. These areas included Guangdong, Guangxi, Hainan, Guizhou, Tibet, Qinghai, Ningxia, and Xinjiang. Among these, Guangdong Province stands out — despite being highly urbanized (ranking 4th in urbanization nationwide), the province achieved a birth rate of 8.12 per thousand, making it a significant exception to the general trend where higher birth rates typically correlate with lower urbanization levels.

Guangdong has maintained its position as China’s leading province in terms of births, being the only province to record over 1 million births (1.03 million) for four consecutive years. Population experts attribute this to several factors. Dr. Dong Yuzheng, president of the Guangdong Sociological Association, points to strong family values and traditional influences in the eastern (Chaoshan) and western regions of Guangdong. Additionally, Peng Peng, Executive Chairman of the Guangdong System Reform Research Society, notes that while fertility intentions are declining across the board, these regions maintain relatively higher birth rates due to cultural factors and a large, young migrant population of childbearing age.

Source: Central News Agency (Taiwan), November 10, 2024
https://www.cna.com.tw/news/acn/202411100108.aspx