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The Chinese government intends to spend large amounts of money on stimulus – can it heal the country’s slowing economy?

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China’s relentless economic growth was once a wonder of the world. Oh, what a memory.

Over the past few years, China has struggled with an economic slowdown amid collisions crisesmany of which make it unique on a world scale. Consumer prices are coming deflationary There is an oversupply of housing in the territory and youth unemployment he rose.

The mounting pressure forced the Chinese government to step in. Over the past month, Beijing has proposed a set of significant economic stimulus measures aimed toward reviving China’s flagging economy.

According to Deutsche Bank research notethis stimulus could potentially develop into the “largest ever” in nominal terms. But there’s still quite a bit we do not know. So what measures are on this package to this point, and has China been here before?

What’s in the package?

On September 24, Mr. Gongsheng, Governor of the Central Bank of China, unveiled the Central Bank of China the bravest intervention to stimulate its economy since the pandemic.

Initiatives included lowering mortgage rates on existing homes and reducing the amount of money business banks must hold in reserves. The latter is predicted to pump about 1 trillion yuan (S$210 billion) into the financial market, enabling banks to lend more.

China is fighting an oversupply of housing and a crisis in the real estate sector.
Charles Bowman/Shutterstock

Additionally, it was announced that 800 billion yuan (S$168 billion) had been allocated to strengthen China’s capital market.

This included a brand new 500 billion yuan (S$105 billion) monetary policy instrument to help institutions more easily access funds for share purchases and 300 billion yuan (S$63 billion) possibility of renting again to speed up the sale of unsold apartments.

Further signs of economic recovery became visible, including: Politburo meeting top Chinese government officials, two days after the announcement.

Chinese President Xi Jinping has stressed the urgency of economic recovery. Xi even encouraged officials to “boldly help the economy” without fear of consequences.

On the same day, seven government departments were laid off common political package stabilize China’s 500 billion yuan (S$105 billion) dairy industry, which is severely impacted by falling milk and beef prices from 2023.

Trade fair rollercoaster

Initially, the market response was overwhelmingly positive. Perhaps too positive. In the last week of September, stock exchanges in Shanghai, Shenzhen and Hong Kong recorded gains biggest weekly increase in 16 years.

On October 8, after the national holiday in China, the turnover on the stock exchanges in Shanghai and Shenzhen reached unprecedented levels 3.43 trillion yuan (AU$718 billion). However, expectations for further stimulus measures were met with disappointment.

China National Development and Reform Commission moved forward 100 billion yuan (S$21 billion) in spending in the 2025 budget. This was not enough to maintain market optimism. On October 9, Chinese stocks saw their decline the hardest fall in 27 years.

This downturn only worsened a couple of days later when China’s Ministry of Finance suggested that “large room” on debt, but didn’t specify any latest stimulus measures.

Chinese President Xi Jinping holds a glass of wine and makes a toast on stage after delivering a speech at dinner
China’s president has personally called on local governments to help stimulate the economy.
Andy Wong/AP

We still don’t listen to the details

The market stays deeply uncertain about the future direction of China’s economic policy and what it might mean for the world. Hopes were high that more details could be revealed over the weekend intermittent.

Chinese authorities confirmed this in July at the third plenary session announcement that China “must remain strongly committed” to achieving this 12 months’s economic growth goal of 5%. Compared to the country economic performance in the reform erait’s a modest goal.

But in the face of persistently weak economic prospects, Xi later appeared to subtly change his tone, changing the language in September from “remain unwavering commitment” to “strive for fulfillment.”

Over the past a long time, China has often used massive stimulus measures to revive its economy in periods of economic downturn. These policies were able to significantly rejuvenate the economy, although they generally had some disturbing negative effects.

In response to the global financial crisis in 2008, the State Council of China published a document entitled 4 trillion yuan (A$837 billion) stimulus package. This helped China weather the crisis and was considered a key stabilizer of the global economy.

But it has also collected trillions of yuan of debt local government financing and accelerated the developmentshadow banking” – unregulated financial activities.

China also spent heavily to stimulate its economy in 2015 after stock market turmoil and nonetheless after the pandemic.

A Chinese investor is watching share prices
China implemented large-scale stimulus measures after the 2015 stock market crash.
Shan on/AP

What should we expect?

What should we expect this time? How sustainable and sustainable will further growth be?

We are still waiting on many details about the size and scope of the package, but any large increase in Chinese economic demand is probably going to have spillover effects.

As we’ve got already mentioned, many of the measures announced to this point could have the most direct impact on borrowing, lending and liquidity on China’s stock exchanges.

This suggests that we must always listen to the so-calledwealth effect“in economics. This is the theory that rising asset prices – comparable to housing or stocks – make people feel richer and subsequently spend more.

If China’s large stimulus spending ends in a sustained increase in asset values, it could spark economic optimism. Chinese consumers – and investors – can stop worrying about the future.

From Australia’s perspective, this might mean a rise in demand in the areas where our economies are situated related – iron ore, tourism, education and industrial food exports.

More broadly, Chinese demand could drive growth in other global economies, which might have a self-reinforcing effect on the world as a complete.

Shoppers walking in an outdoor shopping mall in China
China’s economic performance has implications for the rest of the world.
Andy Wong/AP

Beware of financialization

On the other hand, China’s increased reliance on volatile asset price increases in capital markets to sustain growth could have destabilizing effects. Where asset price increases profit the ‘top-tier city’, they can themselves create inequality and imbalance.

China”Black Monday” the 2015 stock market crash set off alarm in Beijing. Partly reflecting caution against excessive financialization, Xi warned at the moment that “the apartment is for living, not for speculation.”

For now, China continues to pursue a path towards a more sustainable development model, striving to strike a balance between maintaining economic growth and stabilizing domestic markets and the political landscape. As for the end result, it stays deeply uncertain for all of us – perhaps including China itself.

This article was originally published on : theconversation.com
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Business and Finance

First black lottery operator

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Emmanuel Bailey


In a city that pulls thousands and thousands of individuals all over the world, Emmanuel Bailey’s success story began in Washington. He began from humble beginnings, growing up with a single mother and moving from rental to rental throughout town and the Washington, D.C., metropolitan area for many of his childhood. At the peak of the drug epidemic, he saw his hometown affected by crime and poverty, and when he returned from college, his town was considered the murder capital of the country. Yet despite these adversities, he all the time worked hard and looked to a brighter future – a super his mother instilled in him since he was a small child.

As Bailey began his journey to a brighter future, he realized that to achieve success, he needed to pursue a university education. Through these pursuits, he became the primary member of his family to attend and graduate from college. He enrolled at Eastern Kentucky University, earning a bachelor’s degree in business administration. While at EKU, he set out to realize the high level of success his mother expected of him in all areas. After graduating from EKU, he obtained an Executive MBA from the Business School. Robert H. Smith on the University of Maryland.

Emmanuel achieved early success within the financial sector. Over the following 25 years, he rose through the ranks, starting as a branch manager at Citizens Bank of Maryland and ending with vice chairman of Fannie Mae. These roles provided him with invaluable experience as a seasoned entrepreneur and leader. After all the pieces he had achieved at Fannie Mae, it was time to strike out on his own.

Seeing the potential within the lottery industry, Emmanuel founded an operations and management services company to run lotteries more efficiently and effectively. Key service providers (VSC) has management experience in all facets of the state lottery contract, including providing direct supervision and management of lottery agents, retail systems, implementation and maintenance of gaming equipment, and oversight of the performance of the central gaming system. He worked in various positions in state lotteries across the country to achieve real institutional knowledge of the ins and outs of the brand new industry he was entering. Combining his latest knowledge with business sense, he decided to win contracts with the most important names within the industry.

The lottery industry is amazingly competitive, and contracts are sometimes awarded to large national firms. However, as Emmanuel grew his business, hiring experienced staff and expanding VSC’s capabilities, he began to make a reputation for himself as a trusted and talented operator within the industry. He soon partnered with titans in the sector and eventually became the one black business owner to operate a state lottery in your entire United States, in his home “state” of Washington.

But his success didn’t end there.

Bailey continued to hone his expertise, turning VSC right into a multi-million dollar company with over 100 employees. He was honored with the 2020 North American Association of State and Provincial Lotteries (NASPL) Powers Award, which he won based on nominations from the DC Lottery itself. In its nomination, the District of Columbia said Emmanuel “is far from a stereotypical executive… and will ensure that the DC Lottery continues to operate every day and that our company remains profitable into the long-term future.” It continues to grow its business by opening a VSC office in Maryland and searching to expand its geographic reach.

Despite all his success, Emmanuel never forgot his family and his connection to his community. He stays deeply committed to giving back to DC communities. He has donated a whole lot of 1000’s of dollars to varied local DC-based organizations supporting programs comparable to school athletic and humanities departments, educational support and health care. He also served and continues to serve on the boards of many local organizations.

Now Emmanuel looks to the longer term. Always striving to enhance his business, Emmanuel works to enhance operations and improve the efficiency of the DC Lottery, while also giving back to the community and creating more opportunities for young children growing up in circumstances like his own. While his feet are firmly planted within the DMV, his ambitious and entrepreneurial spirit has his eyes on expansion into additional states. He says his best achievement, above all his other achievements, is that he helped his mother retire.


This article was originally published on : www.blackenterprise.com
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Business and Finance

David Shands and Donni Wiggins host the “My First Million” conference at ATL

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December is the birth month of David Shands and Donnie Wiggins, friends and business partners. Most people have fun by throwing a celebration. Others imagine it must be catered for. The chosen ones spend the day relaxing in peace and quiet.

Then there’s Shands and Wiggins.

The two decided that the best birthday gift can be to offer individuals with resources for generational wealth through a conference called “My first million”in Atlanta.

It’s a compromise between how their families and family members need to honor them and their desire to proceed to serve others. Shands acknowledges that almost all people won’t understand, and he unapologetically doesn’t expect them to.

“It’s not up to us to convince anyone why we do what we do,” admits Shands.

“I think everyone does what they do for different reasons, and I would just attribute it to a sense of accomplishment that I can’t explain to anyone else.”

He doesn’t need to clarify this to Wiggins because she understands his feelings. Wiggins has had a passion for serving others for so long as she will be able to remember.

“When I was in middle school, there were child sponsorship ads on TV featuring children from third world countries. I was earning money at the time and I asked my mother to send money,” she says BLACK ENTERPRISES.

She recalls how sad she felt for youngsters living in a world with so many opportunities, but at the same time going hungry. Her mother allowed her to send money, and in return she received letters informing her of their progress.

“It was very real to me,” Wiggins says, now admitting she’s undecided the letters were authentic. “I received a letter from the child I sponsored, a photograph and some updates throughout the 12 months. It was such a sense of being overwhelmed and it was something I felt so good about. I didn’t even tell my friends I used to be doing it.”

She carried this sense throughout her life, even when she lost every little thing, including her house, cars, and money. She still found ways to serve and give back, which is the basis of her friendship with Shands.

They each love seeing people at the peak of their potential, and that is what “My First Million” is all about. There can be no higher birthday gift for them than helping others create generational wealth.

What to expect during the “My First Million” conference.

They each built successful seven-figure empires, then train others, write books about it, and launch an acclaimed podcast Social proof.

Now they’re imparting that knowledge through the My First Million conference, an event for aspiring and existing entrepreneurs. Shands and Wiggins need to prove that being profitable is feasible and encourage people to bet on themselves.

“David and I, on paper, are not two people who should have made millions of dollars. Number one, we want (people) to see it,” Wiggins says. “Then we want them to actually get out of that room with practical and actionable steps.”

Both are clear: this just isn’t a motivational conference. This is a conference where people, irrespective of where they’re of their journey, will come away with clarity about their business and what they must be doing as CEOs. Shands and Wiggins want individuals who do not have a transparent marketing strategy or are considering starting a business to also attend the meeting.

“A few areas we will cover are inspiration, information, plan and partnership,” adds Shands. “We will give you 1-2-3 steps because some people get depressed and uninspired. Even if they know what to do, they won’t leave, go home and do it. So we have to really put something into their heads and hearts that they come away with.”

Sign up and enroll for My First Million Here. The conference will happen on December 13 this 12 months. but Shands and Wiggins say it definitely won’t be the last for those who miss it.


This article was originally published on : www.blackenterprise.com
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Business and Finance

Operation HOPE on the occasion of the 10th annual world forum

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Operation HOPE Inc. takes over Atlanta for the biggest game in the country dedicated to financial literacy and economic empowerment, Saporta reports.

The HOPE Global Forums (HGF) Annual Meeting 2024 strengthens the crucial link between financial education, innovation and community upliftment in hopes of finding solutions to the problems that stifle challenges around the world.

Organized by Operation HOPE founder John Hope Bryant, together with co-chairs Atlanta Mayor Andre Dickens and U.S. Ambassador Andrew Young, the forums, to be held December Sep 11 at the Signia Hotel, will have fun its 10th anniversary with three days of engagement discussions, observations and forward-looking presentations.

Under the theme “The Future,” Hope Bryant says attendees are looking forward to a “powerful moment in history.”

“Over the past decade, we’ve brought together great minds with daring ideas, servant leaders with voices for change, and other people committed to a brand new vision of the world as we realize it. “‘The Future’ is a clear call to action for leaders to help ensure prosperity in every corner of society,” he said.

The extensive program includes influential and well-known speakers who address business, philanthropy, government and civil society. Confirmed speakers include White House correspondent Francesca Chambers, media specialist Van Jones and BET Media Group president and CEO Scott M. Mills.

“John Hope Bryant and his team have been doing this for ten years, and every year HGF raises the bar,” Young said. “Discussions about the FUTURE are important not only for civil dialogue; they are also essential to bridging the economic divide and solving some of today’s most important problems.”

Atlanta is predicted to welcome greater than 5,200 delegates representing greater than 40 countries.

“I have long said that Atlanta is a group project, and through our partnership with HOPE Global Forums, we are inviting the world to join the conversation,” Dickens mentioned. “From home ownership and entrepreneurship to youth engagement and financial education, HGF will offer bold and innovative ideas to ensure a bright future for all.”

It coincided with the organization’s annual meeting launched one other path to enhance financial knowledge with HOPE scholarships. With three tiers of scholarships – HOPE Lite, HOPE Classic and HOPE Silver – clients could have access to free financial coaching and academic resources.


This article was originally published on : www.blackenterprise.com
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