The Chinese economy grew at its slowest pace in 24 years in 2014. Provinces have in response lowered their GDP targets for 2015, with Shanghai eliminating its target altogether. Today’s graphic tracks the growth targets across Chinese provinces.
Reuters Breakingviews released its annual predictions book this week, preparing readers for the year ahead with punchy, provocative views on what will happen in 2015 – and what won’t happen, but should. Columnists on three continents apply insight and intelligence to topics ranging from global economic growth to oil prices, the fate of banking giants like Bank of America and Deutsche Bank, activist investors’ next targets and the UK’s next government.
The collected predictions range from the controversial to the analytical, accompanied by images, interactive graphics and calculators designed to help readers make a year’s worth of smart decisions. And whether the forecasts prove spot on, half right, or misguided, each of them offers the agenda-setting financial foresight Breakingviews readers have come to expect.
Animal Spirits and Crisis Ghosts (more…)
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New developments are opening up China’s capital markets to growth-hungry global investors.
When China’s premier Li Keqiang announced in April that China would finally move ahead with the Shanghai-Hong Kong Stock Connect in October, investors around the world applauded the move as a breakthrough for China’s capital markets. The news followed a raft of wide-ranging financial reforms announced late last year, which aim to clean up the Asian giant’s banking system, gradually open its capital account, and above all internationalize the use of the country’s currency, the renminbi (RMB) – also known as the yuan.
The Shanghai-Hong Kong Stock Connect is a major step forward for China’s financial reform process.
The program offers international investors deeper access to China’s A-shares, while more mainland investors will acquire access to Hong Kong equities, bringing more liquidity – as well as arbitrage opportunities – to both markets, although valuation gaps between dual-listed stocks are expected to close over time.
Last month, Thomson Reuters participated in the first World Internet Conference (WIC) in Wuzhen, Zhejiang Province, China. The conference is co-sponsored by China’s newly formed Cyberspace Administration (formerly named the State Internet Information Office) and Zhejiang Provincial Government, and attracted about 1000 policymakers and top industry executives. The conference covered topics including global internet governance, mobile, cross-border e-commerce, cyber security and terrorism, and has the stated mission to promote the “development of [the] Internet to be the global shared resources for human solidarity and economic progress.” (more…)
Designed to plough the trade route between Asia and Europe, China Shipping Container Lines (CSCL) Globe is the first ship of its kind to transport as many goods in a single journey. Today’s graphic is a diagram of the world’s largest ship, a comparison to other (smaller) competitors and a timeline of its maiden voyage port calls.
As global dairy prices plummet due to falling demand from China and Russia, signs are emerging that supply in New Zealand is starting to slow following record-high prices and production from last season. Today’s graphic looks at the recent change in New Zealand dairy production, prices and exports.
Our Intellectual Property & Science business recently released research outlining the patent landscape in China, and best practices for developing a strategic outlook on the emerging areas in the country’s portfolio. The new paper, Chinese Corporate Trends and Globalization for IP, aims to provide insight and understanding of China as an emerging global economy and how that growth is being driven by attempts to harness the tremendous potential of human and natural resources through innovation and the global IP system.
Intellectual Property is a central plank of China’s national strategy as it pushes to become an innovation-driven economy. Effective IP protection is also necessary for China to successfully continue on that journey. Although there is recognition at the national level of the importance of IP, this does not always translate down to the enterprise level. Major Chinese corporations are making strides in embracing and using IP as an integral part of their business strategy as they seek to drive revenue growth, gain market share and deliver cost benefits through the protection of innovative technology. But as data in this report shows, this is still the exception rather than the rule. (more…)
Among 150 real estate companies listed in China, 32 companies have borrowings that would take more than 10 years to repay at their current pace of cash generation. Construction loans, which form a major part of the borrowed funds, are typically of 3 years tenor. Today’s graphic maps out the debt to EBITDA ratio for China’s real estate companies as well as the market cap of its top developers.
Hong Kong shares in dual-listed Chinese firms are trading at deep discounts to their onshore versions, confounding fund managers and revealing shortcomings in the Hong Kong-Shanghai stock connect’s design. Theoretically, because the stock connect enables two-way investment flows, prices should converge as investors arbitrage away the differential. This hasn’t happened and today’s graphic shows how big some of the price differences are.
Hundreds of billions of dollars are remitted annually to countries in Asia, mostly to India, China and the Philippines. Today’s graphic tracks the remittance flow to Asian countries as well as the top remitting and receiving countries, globally.