China Money and Wealth

Financial news and features about China's wealthy, and how they spend their money. 
  1. State-owned China Three Gorges Renewables Group is seeking to raise 25 billion yuan (US$3.5 billion) in what could be one of the country’s biggest initial public offerings this year.The company plans to sell as many as 8.57 billion shares in Shanghai, according to a prospectus posted on the website of the China Securities Regulatory Commission (CSRC). The assets to be listed are mainly domestic solar and wind farms, as well as small hydro power plants, with a total capacity of almost 10…
  2. China’s short-term goal of pulling its economy out of the trouble created by the coronavirus pandemic is in danger of exacerbating the existing pressure on its national pension system already strained by an ageing population.Beijing announced in February that businesses could reduce or even stop contributions to provincial pension funds amid the outbreak in an effort to help them weather the current economic storm.This is part of a concentrated effort by governments at all levels with China’s…
  3. China’s central bank on Friday said it would pump two rounds of funds into rural and regional lenders in the latest “targeted” measure to help the economy amid the coronavirus outbreak.The People’s Bank of China (PBOC) said it would cut the required reserve ratio for the banks on April 15 and May 15, releasing 400 billion yuan (US$57 billion) in total and freeing up more money to lend to rural households and small businesses.The central bank also said it would adjust down the interest rates on…
  4. Luckin Coffee – touted as China’s rival to Starbucks – has suspended its chief operating officer for alleged misconduct as part of an ongoing internal investigation, causing its share price to plummet on the Nasdaq.The Xiamen-based start-up has formed a committee to lead an internal investigation into misconduct related to “fabricating transactions” last year by Chief Operating Officer Liu Jian and several employees working under him, Luckin said in a statement.The company’s turnover was…
  5. China’s private housing market is springing back to life as more sales offices reopened across the country following a nationwide shutdown, saving home builders from a deeper financial slump this year.Transactions in at least eight large cities – Shenzhen, Chengdu, Fuzhou, Hangzhou, Huaian, Yangzhou, Jiaxing, Shantou – indicated buyers have returned in recent weeks, with volume surpassing the average levels in the final quarter of 2019, according to China Real Estate Information Corporation …
  6. Global fund managers are putting more money on Chinese health care and infrastructure-related stocks, even as they retreated from the onshore market at the fastest rate on record amid the worsening coronavirus pandemic.Shenzhen Mindray Bio-Medical Electronics and Wuxi AppTec were among the companies that attracted inflows this month, according to Citic Securities, China’s biggest stock brokerage. Machinery and cement manufacturers also gained favour during the sell-off that sank more than 30…
  7. Li Ning Company Limited, the eponymous sportswear brand by China’s best-known Olympic gymnast, said it is on track to improve its 2020 profit margin by 1.4 percentage point, even if the coronavirus pandemic has kept shoppers from stores and forced large sports events to be postponed or cancelled.The Beijing-based producer of sports shoes and apparel forecasted a 2020 profit margin of 10.5 per cent on the back of a bumper year in 2019, during which revenue beat estimates and rose 32 per cent to…
  8. Profits at China’s industrial firms plummeted 38.3 per cent from a year ago in the first two months of 2020, with the biggest loss on record offering fresh evidence of the overwhelming impact of the coronavirus on the world’s second largest economy.Earnings for large companies with annual revenue of more than 20 million yuan from their main operations tumbled to 410.7 billion yuan (US$56 million) for January and February, according to data released by the National Bureau of Statistics on Friday…
  9. Thousands of bankers are set for a reprieve as Morgan Stanley and Citigroup joined European lenders in pledging to preserve jobs amid the widespread impact of the coronavirus.Citigroup will suspend any planned job cuts, according to a person familiar with the matter. And Morgan Stanley Chief Executive Officer James Gorman told employees in a memo Thursday that the bank will not trim the workforce this year. The New York-based banks are seeking to reassure employees as the pandemic roils markets…
  10. Describing herself as an ordinary white-collar worker with a stable income based in China’s manufacturing hub of Guangdong, Li Yue was left shocked by phone calls from two friends asking for urgent help to pay rent and salaries for their businesses.“[I am] not any kind of wealthy investor or boss. I’ve known both of them for over a decade and it’s the first time they have asked me for anything. I think their money is just exhausted,” Li said.Her experience underscores a new troublesome aspect…