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China is considering raising its retirement age due to economic challenges and an aging population. Currently, women can retire at 50 and men at 60, but these policies have remained unchanged since the 1950s. The government has expressed a desire for citizens to work longer, but has been hesitant to make any changes due to potential social backlash. The National People's Congress is reviewing a draft law to gradually delay mandatory retirement ages, although specific details have not been announced. The move is being closely watched as unemployment is high among young people and local governments are facing financial constraints. The need to delay retirement ages has been recognized for some time, and the government previously promised to raise the retirement age in small steps after consulting the public. However, these attempts have faced strong opposition. China's working-age population has been declining, while life expectancy has nearly doubled since the introduction of the current retirement system. By 2050, 31% of the Chinese population is projected to be 65 or older. The government is concerned about the financial strain of supporting an aging population and the potential impact on economic growth. [Extracted from the article]

The article details how Chinese artificial intelligence (AI) developers are accessing advanced Nvidia chips indirectly through brokers and overseas computing power, circumventing U.S. export controls. Topics discussed include the use of cryptocurrency and blockchain for anonymity, the role of decentralized graphics processing unit (GPU) platforms in providing computing resources, and the ongoing debate about the effectiveness of U.S. export restrictions and enforcement.

Oaktree Capital, a U.S. investor, has taken control of FC Inter Milan, the Italian soccer champions, after the team's Chinese owners failed to repay a rescue loan. Oaktree had provided a loan during the Covid pandemic to keep the team afloat, and they are now capitalizing on that loan to seize control of the club. This move comes as Inter Milan has experienced success on the field, winning this year's Serie A title. Oaktree aims to ensure the long-term stability and prosperity of the club. This is part of a trend of large U.S. private fund managers investing in international sports clubs to diversify their portfolios. [Extracted from the article]

The European Bank for Reconstruction and Development (EBRD) has stated that the economies of central Europe are expected to experience stronger growth this year and next due to cooling inflation. However, the bank also warns that Russia's invasion of Ukraine will continue to impact these economies by increasing borrowing costs. The EBRD also notes a surge in Chinese investment in parts of Europe and North Africa as businesses seek to avoid trade barriers. The war between Israel and Hamas is also affecting countries where the EBRD invests, with Egypt's growth forecast being lowered due to a loss of revenue from the Suez Canal. Overall, the EBRD expects a pickup in growth across all countries it operates in, but this forecast has been revised downward due to weak demand for exports from western Europe. [Extracted from the article]

The article discusses the global rush for physical gold, including bars, coins, and jewelry, driven by geopolitical turbulence and economic concerns. Small investors, worried about government debt and stock market volatility, are seeking tangible assets for security. The price of gold has risen over 40% since October 2022, despite the lack of bullish bets in futures and options markets. Chinese consumers, in particular, have been hoarding gold due to concerns about their country's economy. Central banks and individual buyers are both contributing to the increased demand for gold. The article suggests that uncertainty, inflation, and global debt are factors driving investors towards gold. [Extracted from the article]

Noel Quinn, the CEO of HSBC, has unexpectedly announced his retirement after more than four years in the position. The bank is now searching for a successor as it navigates geopolitical tensions between the West and China. Quinn's tenure saw the bank's stock price rise and its financial performance improve, with strong profits and the largest dividend payout since 2008. HSBC has a significant presence in both the UK and Asia, and its leaders often play a diplomatic role in addition to their executive responsibilities. Quinn's departure was influenced by his desire for a better work-life balance and the bank's successful transformation. [Extracted from the article]

Hong Kong Exchanges & Clearing (HKEX) reported a 13% decrease in net profit for the first quarter of the year, marking the second consecutive quarter of decline. The company attributed the decrease to poor market sentiment, which resulted in lower trading and listing activity. HKEX also mentioned challenges such as a prolonged stock-market slump, concerns about China's economy, and foreign investors leaving the city. Despite these challenges, HKEX remains optimistic about its ability to capitalize on China's long-term growth and build connections with capital hubs in Southeast Asia and the Middle East. [Extracted from the article]

Chinese President Xi Jinping has called for the People's Bank of China (PBOC) to increase trading of treasury bonds in its open-market operations, a policy tool that has rarely been used in the past two decades. While economists believe that China is unlikely to adopt U.S.-style quantitative easing, they see Xi's comments as a potential policy pivot that could enrich the central bank's toolbox. The PBOC currently has limited room for further cuts to the reserve requirement ratio, so trading government bonds could provide the central bank with more flexibility in managing liquidity. [Extracted from the article]

Chinese investors are increasingly turning to gold as a safe haven investment due to concerns about the country's shaky economy. The central bank of China has been increasing its gold reserves, while consumers are buying gold jewelry and stock traders are investing in gold miners and exchange-traded funds. This surge in demand has contributed to the recent rally in gold prices, which reached an all-time high of over $2,200 per troy ounce. However, the price of gold could be affected by the Federal Reserve's interest rate cuts and strong economic data from the US. Chinese investors are diversifying into gold as a result of difficulties in the real estate sector, volatility in the equity market, and a weak currency. [Extracted from the article]

China's $200 billion quant fund industry, which uses algorithms to make trading decisions, has faced significant losses and regulatory scrutiny due to the government's attempts to control the stock market. The quant funds did not account for the unpredictability of government interventions, leading to heavy losses when their bets on small companies' shares went wrong. The government's actions, such as buying exchange-traded funds focused on large-cap stocks, caused a selloff in small-cap stocks and further exacerbated the quant funds' losses. The industry now faces increased pressure and tighter regulations, raising concerns about its ability to thrive in a market subject to government interventions. [Extracted from the article]

China has imposed increased fines on the Beijing arm of Mintz Group, a New York-based due-diligence firm, for allegedly unapproved statistical work. This comes after authorities raided Mintz's Beijing office last year and detained all five Chinese nationals working there. The fines raise the total penalties by 50% to approximately $2.2 million. Beijing has been placing greater scrutiny on the corporate-investigations business in recent years, limiting access to business data and citing concerns over national security. Mintz has not publicly disclosed the financial penalties it has received and it is unclear if the company intends to appeal the additional fines. [Extracted from the article]

Hong Kong Exchanges & Clearing (HKEX) experienced a decline in quarterly net profit for the first time in over a year due to China's slow economic recovery and weak demand for fundraising in the region. The net profit fell 13% year on year in the fourth quarter, dropping to HK$2.60 billion. Revenue also fell 7% from the previous year. HKEX saw a significant decrease in trading volume during the quarter, with average daily turnover sliding 28%. Despite these challenges, HKEX posted an 18% net profit gain for the full year of 2023. The company remains cautiously optimistic about capitalizing on the global pivot to Asia as sentiment improves. [Extracted from the article]

HSBC, a major banking giant, has reported a quarterly loss of $153 million, its first since late 2019. The loss was primarily due to a $3 billion write-down of its stake in Bank of Communications (BoCom), one of China's largest lenders. The write-down was influenced by a slowdown in China's economic growth, which affects BoCom's earnings and asset value. Despite the loss, HSBC remains confident in China's economy and sees strong potential for growth in the region. However, there is a possibility of further write-downs of the BoCom stake in the future. [Extracted from the article]

Fan Bao, the founder of China Renaissance, has resigned from his position as chairman and CEO of the firm. This comes after Bao was detained by Chinese authorities last year in relation to a corruption investigation. The investigation also involved Cong Lin, the former president of China Renaissance. Bao's detention and the disappearances of other executives have raised concerns in China's business community and have contributed to foreign firms withdrawing earnings from the country. China Renaissance has faced financial pressure and delays in publishing audited results since Bao's detention. [Extracted from the article]

Despite a ban on cryptocurrency trading in China, small investors in the country are finding ways to continue trading through an underground network of brokers and go-betweens. Chinese traders are using a combination of location-masking technology, lax exchange controls, and secretive meetings in public places to evade the rules. They have received a net $86 billion in cash from cryptocurrency activity between July 2022 and June 2023, and were responsible for around $90 billion of trading on Binance, the world's largest crypto exchange, in a single month last year. The success of Chinese crypto traders in evading regulations poses a challenge for regulators worldwide. [Extracted from the article]

China's economic slowdown has impacted banks that serve wealthy clients, such as Citigroup, JPMorgan, and UBS. These banks had previously competed for business from China's wealthy population, offering services like buying shares in Hong Kong and investing in real estate and expensive art. However, stock market declines, bond defaults, and the faltering Chinese economy have hurt this business model. Wealthy Chinese investors are now shifting their money to safer investments and are less willing to take risks. The rise in U.S. interest rates has also made it more attractive for Chinese investors to invest in the U.S. Furthermore, the market for Chinese junk bonds has collapsed, and the use of leverage in client portfolios has declined. Many Chinese investors have a home bias, favoring Chinese and Hong Kong securities, which has exacerbated the impact of the recent slide in Chinese asset prices. Chinese high-net-worth individuals are increasingly holding cash and gold as investments. Wall Street firms are facing challenges in winning new customers from their investment banking divisions due to a drop in Hong Kong initial public offerings. However, private bankers still see opportunities in China, as there will be a significant transfer of wealth from the first generation to the second in the coming years. Verification of a customer's source of wealth has become more stringent, slowing the addition of Chinese clients for global banks. [Extracted from the article]

Star Bulk Carriers and Eagle Bulk Shipping have agreed to merge in an all-stock deal, creating the world's fourth-largest commodities carrier. The merger aims to attract larger investors and boost market interest. Star Bulk will own 71% of the combined entity, while Eagle Bulk shareholders will own 29%. The deal, valued at $2.1 billion, is expected to close next year. The merger comes as China increases its restocking of commodities, leading to higher freight rates for dry bulkers. The CEO of Star Bulk, Petros Pappas, will continue to serve as CEO in the combined company. [Extracted from the article]

China's money markets are showing signs of distress, which is concerning given the country's existing economic challenges. The recent problems in the property sector and the insolvency of asset manager Zhongzhi Enterprise Group have contributed to this unease. While there is no immediate crisis, unusual rate movements and actions by authorities are causing worry. The increase in short-term interbank lending, particularly to nonbank borrowers, is exacerbating the situation. The government's massive new debt issuance and the rebound in short-term money market borrowing are also contributing factors. The falling U.S. dollar and slower capital outflows may alleviate some pressure, but the balancing act between government obligations and leveraged nonbank financial institutions is causing instability in the money markets. [Extracted from the article]

China is facing a significant hidden-debt problem that could have severe consequences for its banking system. Local governments in the country have accumulated a massive amount of off-balance-sheet debt, estimated to be around $7 trillion to $11 trillion. Economists believe that a significant portion of this debt is at high risk of default. Chinese authorities are attempting to address the issue by swapping out hidden debt for explicit government debt, but there are concerns that a wave of defaults could lead to a nationwide financial crisis. The situation is particularly concerning because most of the debt is held by Chinese commercial banks. [Extracted from the article]

Chinese regulators have approved a $69 billion deal between chipmaker Broadcom and enterprise-software developer VMware, as well as granting New York-based payments processor Mastercard permission to issue yuan-denominated cards in China. These approvals are seen as attempts to appease American corporations and improve the bilateral relationship between the US and China. However, experts caution that these isolated cases are unlikely to significantly increase investment in China, as many multinational companies remain skeptical due to economic woes and challenges such as opaque data-localization laws and restricted access to information. [Extracted from the article]

Chinese online brokers Futu and Up Fintech have experienced a surge in their stock prices despite being blocked by Chinese regulators from opening accounts for investors. The stocks of both companies have risen significantly this year, with Futu's stock up over 40% and Up Fintech's stock up about 33%. The brokers have benefited from higher interest rates and a shift in focus away from China, where the stock market has faltered. They have turned to other markets such as Singapore, Australia, New Zealand, the US, and Hong Kong for growth. [Extracted from the article]

Shen told Chinese financial news outlet Yicai in a 2016 interview posted to YouTube in 2019 about an internal Sequoia database that held 40 years of the firm's intelligence on the companies it had invested in and that Sequoia teams worldwide could access. Shen excelled, with investments in companies including food-delivery company Meituan and e-commerce platform Pinduoduo. Since Sequoia China uses the firm's name, the staff aides and officials argued, there must be more that Sequoia Capital can do. [Extracted from the article]

"It wouldn't be in China's interest to create such a climate of fear among U.S. companies that they conclude that China is a dangerous market and start to head for the exits", he wrote. Keywords: Pharmaceuticals; Semiconductors; Risk Management Services; Healthcare/Life Sciences; Accounting/Consulting; Business/Consumer Services; Business Consultancy; Financial Services; Industrial Electronics; Industrial Goods EN Pharmaceuticals Semiconductors Risk Management Services Healthcare/Life Sciences Accounting/Consulting Business/Consumer Services Business Consultancy Financial Services Industrial Electronics Industrial Goods N.PAG N.PAG 1 05/02/23 20230428 NES 230428 Detentions, raids and unexpected visits belie Beijing's invitation to overseas investors Chinese authorities have embarked on a campaign to bring foreign businesses to heel, just months after Beijing delivered an open-for-business message to global investors. [Extracted from the article]