China markets team leader, senior correspondent, Shanghai, China
Pete's Feed
Aug 28, 2014

Productivity goes negative as China slips toward middle-income trap: study

SHANGHAI (Reuters) – Chinese productivity growth has gone into reverse for the first time since the Cultural Revolution tore the country apart in the 1970s, according to a new study, highlighting the failure of recent reforms to set China on a sustainable development path.

That means that despite dramatic rises in the cost of labor, energy, credit and property, the average Chinese company has actually been getting less bang for its buck since the global financial crisis – a classic sign of the “middle income trap” that many other emerging economies such as Brazil or Malaysia have found themselves stuck in after promising starts.

Aug 26, 2014

China foreign investment pattern changes as challenges grow

SHANGHAI (Reuters) – China’s foreign investment mix is changing, with portfolio investors buying more stocks but foreign direct investment falling to a two-year low on a slowing economy, rising business costs and anti-monopoly probes and crackdowns on foreign firms.

Foreign direct investment (FDI) in China fell in over the first seven months of 2014 compared with a year earlier, while the offshore funds flowing into mainland stocks hit the highest in more than two years last month.

Aug 26, 2014

China fund defaults expose foreign partners to shadow banking risk

SHANGHAI/HONG KONG, Aug 26 (Reuters) – Foreign joint venture
partners of Chinese mutual fund companies fear they will have to
bail out investors in one of the shadiest patches of China’s
shadow banking system, following two defaults by lightly
regulated subsidiaries peddling complex investment products.

While defaults of wealth management products (WMPs) issued
by Chinese banks and trust companies have ended in some form of
government rescue, there is no precedent for how problems with
fund management company (FMC) subsidiaries will be resolved.

Aug 21, 2014

China juices liquidity, and risk, at OTC exchange

SHANGHAI, August 22 (Reuters) – Chinese brokerages will
start making markets next week on China’s New Third Board, its
leading over-the-counter (OTC) exchange but one long derided as
a dead-end market populated by small little-known, opaquely
managed firms.

The move has revitalised interest and trading volumes have
exploded, but analysts warn of significant risk.

Aug 20, 2014

China shares fall on IPO worry; HK shares propped up by earnings

SHANGHAI, Aug 20 (Reuters) – China’s stock indexes fell
slightly by midday on Wednesday, on worries that upcoming
initial public offerings (IPOs) will tax market liquidity even
as investors look to take profits from a rise in large-cap

Hong Kong stocks, however, found some support on positive
earnings results from index majors and strong performance in
offshore equity markets.

Aug 19, 2014

China shares edge down on weak financials; Hong Kong flat

SHANGHAI, Aug 19 (Reuters) – China’s stock indexes fell
slightly by midday on Tuesday due to weakness in the financial
sector while Hong Kong shares were mostly flat on investor
caution ahead of earnings.

By midday, the CSI300 index of leading Shanghai
and Shenzhen A-share listings was down 0.2 percent. The Shanghai
Composite fell 0.2 percent to 2,234.61 points, easing
from an 8-month high earlier struck earlier in the day.

Aug 18, 2014

China home prices fall for third straight month in July

BEIJING, Aug 18 (Reuters) – China’s new home prices fell in
July for a third straight month with price declines spreading to
a record number of cities including Beijing, underlining a
worsening property downturn that is increasingly dragging on the
broader economy.

Average home prices slipped 0.9 percent in July on a monthly
basis, Monday’s data showed, as the declines spread to the
largest number of cities since January 2011, when authorities
started releasing the property price data.

Aug 18, 2014

Central bank and traders briefly see eye-to-eye on yuan

SHANGHAI/HONG KONG, Aug 18 (Reuters) – China’s central bank
and currency traders have found rare consensus on the yuan’s
value after months of widely divergent pricing, but analysts are
divided about whether the current accord signifies a genuine
relaxation of control by Beijing.

The spot market exchange rate and the central
bank’s guidance rate, or midpoint, have converged
dramatically in recent weeks after spending months on opposite
sides of the room. The 200-day moving average of the spot rate
and the midpoint matched up exactly on Monday morning at 6.1528
yuan per dollar.

Aug 18, 2014

China shares touch 8-month high despite weak property data

SHANGHAI, Aug 18 (Reuters) – China’s stock indexes rose
moderately on Monday, with the Shanghai Composite Index touching
its highest since December 2013 even amid weak investment and
housing data, but home price slides on the mainland dampened
shares in Hong Kong.

By midday, the CSI300 index of leading Shanghai
and Shenzhen A-share listings was up 0.4 percent and the
Shanghai Composite rose 0.4 percent to 2,235.44 points,
easing off its highest level since Dec 2013.

Aug 15, 2014

China shares up on large caps, Hong Kong reaches a more than 6-year high

SHANGHAI, Aug 15 (Reuters) – China’s stock indexes rose
nearly 1 percent by midday Friday, supported by large-cap
shares, while a surge for China Mobile lifted the Hang Seng
Index to its highest level since May 2008.

At midday, the CSI300 of leading Shanghai and
Shenzhen A-share listings was up 0.9 percent and the Shanghai
Composite Index was ahead 0.8 percent at 2223.39 points.

    • About Pete

      "Pete Sweeney is Senior Markets Correspondent at Reuters, focused on bond, forex, interbank and equities markets. Previously editor of China Economic Review, a Hong Kong-based monthly magazine focused on providing news and analysis on the mainland economy. Sweeney came to China as a Fulbright scholar in 2008, and conducted research on Chinese business policy in Hangzhou, Harbin and Chengdu. He has also lived and worked in Belgium, Ecuador and the U.S. He speaks Chinese, at the expense of his Spanish."
      Joined Reuters:
      March 2012
      Mandarin, Spanish
      Fulbright Scholar
      Foreign Languages and Area Studies Scholar
      Boeing Merit Award
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