Newscasts - Asia Markets Briefing: China leaves key lending rates unchanged

Kaisa group

20/08/2024 09:52

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Source: 'Reuters - Business videos'

Description: China ft its chief lending rates unchanged - as expected.But
economists say more measures are needed to get the economy back on its feet.
Short Link: https://refini.tv/3AEEFHg

Video Transcript:

China leaves its key lending rates unchanged, as shrinking interest margins
disrupt efforts at fiscal easing. Welcome to Asia Markets Briefing. I'm Ramzan
Karmali. So, China once again finds itself hampered as it tries to stimulate
the slowing economy. Today left its chief lending rates unchanged as expected.
But economists say more measures are needed to get the economy back on its
feet. Bank lending tumbled more than expected last month, hitting the lowest
in nearly 15 years, dragged down by tepid credit demand and seasonal factors.
It's raised expectations that the central bank may still deliver more steps to
ease policy. To the markets now and Asian stocks have scaled a one-month peak,
tracking a Wall Street rally. China, however, saw a decline. Sentiment is
being driven by expectations the US Federal Reserve could offer further hints
of rate cuts later this week. Fed policymakers have signaled potential rate
easing in September, that's priming markets for a similar tone from Jerome
Powell at the annual meeting of Global Central bankers in Jackson Hole,
Wyoming this week. Chinese property company Kaisa Group has reached an
agreement with bondholders to restructure its offshore debt. It plans to swap
existing debt into new notes and shares in the company. Kaisa has been working
towards a restructuring since it defaulted on $12 billion in offshore bonds in
late 2021. Shares of Japan Seven & i fell by more than 10% on Tuesday after
surging on news of a takeover proposal from Canada's Couche-Tard. While the
value of the offer has not been disclosed, it would make the 7-Eleven owner
the largest ever Japanese target of a foreign buyout. Jefferies cautions,
however, that hurdles remain on the scale of the transaction and antitrust
issues. To India now, where the Rupee rose modestly today. Even so, it
continues to underperform its Asian peers. It's the worst performing Asian
currency so far this month down 0.2% against the Dollar, while its peers have
risen as much as 4%. The currency's weakness has been compounded by outflows
from equities and Dollar demand from importers. Chinese electronics maker
Xiaomi is due to report on Wednesday the half year results will be the
first-time auto sales revenue and smartphone performance will be broken down.
One analyst that spoke to Reuters expects revenue to rise by 29% year on year
in the second quarter of 2024. And Geely Autos also has first half earnings
out on Wednesday. They likely jumped with an improved product mix as shipments
and exports surged. Price competition should remain challenging in the second
half. Investors will also be looking out for any commentary on subsidiary
Zeekr. It's looking into building EVs in Europe to avoid EU tariffs. And
that's Asia Markets Briefing