China Asks Citic Group to Examine Huarong’s Finances
Charlie Zhu, Zheng Li, Jun Luo, and Heng Xie, 28 June 2021
China has asked one of its biggest state-owned conglomerates to examine the finances of China Huarong Asset Management Co., people familiar with the matter said, adding a new twist to the drama that has roiled the world’s second-largest credit market for months.
Citic Group, whose businesses span everything from banking to securities and mining, recently dispatched a team to Huarong to pore over the embattled distressed-debt manager’s books, the people said, asking not to be identified discussing private information. Continue reading “Article: China Asks Citic Group to Examine Huarong’s Finances”
Chinese Factories Delay New Orders as Costs Rise, Risking Global Supply Shortages
Stella Yifan Xie, 01 June 2021
HONG KONG—Buffeted by rising costs, some Chinese manufacturers are refusing to accept new orders or are even considering shutting down operations temporarily—moves that could put more strain on global supply chains and cause more inflation.
Surging raw-material prices and a shortage of workers have pinched smaller Chinese manufacturers, including many that sell their products to the U.S. and other Western markets. While many have passed their higher costs on to overseas buyers, the pain is so severe at some manufacturers that they are finding it hard to raise prices enough to make up the difference. Others don’t want to risk losing business to competitors. Many are now looking for other solutions to avoid losing money. Continue reading “Article: Chinese Factories Delay New Orders as Costs Rise, Risking Global Supply Shortages”
China Tries to Temper Rising Commodity Prices
Quentin Webb and Stella Yifan Xie, 26 May 2021
China is trying to cool red-hot markets for key industrial commodities such as iron ore, seeking to ensure runaway prices for these raw materials don’t hurt the broader post-pandemic recovery.
Chinese officials, led by Premier Li Keqiang, have stepped up their rhetoric on natural resources since mid-May. The national cabinet, or State Council, which Mr. Li chairs, said last week it would take steps to ensure adequate supply and stable prices for commodities. Continue reading “Article: China Tries to Temper Rising Commodity Prices”