CNBC’s The China Connection Newsletter: New Bets, old concerns

This report from CNBC newsletter in CNBC for this week, which brings you visions and analyzes about what leads the second largest economy in the world. Every week, we will explore the largest business stories in China, and make a decrease in market movements and help you prepare for the next week. Like what you see? You can subscribe here.

Among the bleak titles this summer, one of them is moving A lot of attention on the Internet The account of the social media run by the state published a comment on Saturday To calm fears.

Anxiety was that a The ruler of the court kicks on September 1 It would compel companies that are fighting to buy national insurance for all employees, amid frequent talk about wage discounts and forced competition.

But in reality, the ruling is not a new thing.

“It is not that the government changed the policy, it is (many companies) has not followed the policy,” said Win Piao, General Manager of CNBC.

It is a gray area that has not been applied, allowing workers to take more wages or companies to spend less on employment. The “Social” insurance program in China includes health and retirement coverage, which means that the money is closed for medical occasions or retirement decades away.

Renewed interest has sparked discussions on low wages and frequent additional work, adding to a feeling of depression.

The feelings of consumers also deteriorated in the United States, according to Preliminary For the month of August, it was collected by the University of Michigan. The report said that while American consumers are not preparing for the worst, as they were in the escalation of trade tensions in April, many of them still expect inflation and unemployment to get worse.

Trade tensions are still in place, despite the United States and China last week Extending a trade truce until mid -November. But this still leaves the tariffs of about 55 % on most Chinese exports to its largest commercial partner.

Bruce Bang, assistant professor at the Chinese College of Business Administration at the University of Hong Kong, said that the growth of the strongest exports in China did not obscure insufficient local demand.

It didn’t take a long time until these issues appear.

Only in the past few days, data releases have shown for the month that new bank loans have been unexpectedly dropped For the first time in 20 years. Retail sales, industrial and investment numbers I missed expectations – Emphasizes the recession of real estate that is still not a solution – that Chinese Prime Minister Lee Qiang Acknowledging in a government meeting Monday.

He called me more effective measures to address the real estate market, install market expectations and ensure social stability. The real estate and construction sector in China represented more than a quarter of GDP in China and the main driver of family wealth is still.

Local governments also fully struggled after losing revenue from land sales to developers.

To meet the real estate challenge, Lu Tchanish, chief economist at Yuekai Securities, suggested that the central government create a 2 trillion yuan ($ 280 billion) fund to end the construction of qualified real estate projects. He also called for more financial support for local governments.

Despite the opposite winds, Beijing maintained the goal of the official growth at about 5 % for this year – the Prime Minister repeated this week.

Pang from the Chinese University of Hong Kong said the economy is still able to achieve the goal, although some loss in the momentum.

In his opinion, work confidence was worse in the past year, and now it has become a matter of time for policy to be in effect. He said that the challenge is that the external situation may disrupt these plans, noting that any additional incentive depends on uncertainty about the trade tensions between the United States of China and reduce the interest rate in the potential federal reserve.

Shein’s IPO Saga continues. Fast fashion giant Looking at the move Bloomberg said on Tuesday that its base returns to China from Singapore, where Beijing’s approval is trying to take the long -awaited public subscription.

Tence has enough artificial intelligence training chips. This is what his president Martin Lao told investors last week, after the company informed the improvements of artificial intelligence Increased marketing of marketing services by 20 % In the second quarter.

Electric car investments in China. For the first time, the industry has Invest more in factories abroad From the home, according to a report published by the US -based Rhodium Group.

Hong Kong Hang Singh Fahras It increased by 0.19 %, while CSI 300 on the main land added 0.99 % after China left the main lending rates in August for a third consecutive month, identical to market expectations.

Data from LSEG showed that the main righteous standard rises more than 8 % so far.