Daily News-20191018

 |  Xinhua / China Daily

Today's point


IMF warns of buildup in financial risks, calls for solutions


E-commerce behemoths jump on the real estate bandwagon


Ethiopia working hard to boost its coffee exports to China


Chinese bus maker Yutong delivers 500th vehicle to UK



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1. IMF warns of buildup in financial risks, calls for solutions

Pedestrians walk in front of the IMF building during the IMF and World Bank Fall Meetings on Tuesday in Washington, DC. [Photo/Agencies]

The International Monetary Fund has called for "urgent action" by policymakers to tackle rising financial vulnerabilities across the globe, as a loose monetary environment has magnified debt burden and encouraged riskier investments.

Over the past six months, while global central banks' shift toward a more dovish stance mitigated near-term downside concerns amid escalated trade disputes, it also "encouraged more financial risk-taking and a further buildup of financial vulnerabilities", the multilateral lending agency said in its latest Global Financial Stability Report.

The rising financial instabilities are "putting medium-term growth at risk", said the IMF report released on Wednesday.

"Policymakers need to take urgent action to mitigate financial stability risks," Tobias Adrian, director of the monetary and capital markets department at the IMF, said during the launch of the report.

Specifically, the IMF listed three key vulnerabilities in the global financial system - rising corporate debt burden, increasing holdings of riskier and more illiquid assets by institutional investors, and greater reliance on external borrowings by emerging and frontier market economies.

As a low-interest-rate environment compelled investors to make riskier investments, the share of debt owed by firms with weak debt repayment capacity has risen to a "sizable" level in several major economies, and could reach post-global financial crisis levels in the event of a material economic downturn, the IMF said.

(source: China Daily)


2. E-commerce behemoths jump on the real estate bandwagon

A JD outlet is pictured in Luoyang, Henan province. [Photo/IC]

Major Chinese e-commerce players are betting big on the real estate market and will sell properties during this year's Singles Day shopping spree, in a bid to increase sales revenue, diversify their product portfolio, as well as inject new vitality to the country's housing sector.

Online retailer JD will release more than 6,000 discounted housing resources in cooperation with over 200 property developers in 70 cities across the nation for the upcoming shopping bonanza, while Alibaba Group Holding Ltd will launch over 10,000 properties on Nov 11.

Cao Lei, director of China E-Commerce Research Center, said property developers are facing great pressure to cut inventories as the government has maintained tight regulations to curb speculation in the property market.

"The e-commerce platforms have become an important channel for real estate developers to boost sales. Meanwhile, Alibaba and JD need such eye-catching commodities with high per-customer transactions to increase the gross merchandise volume," Cao said, while noting this move will have a limited influence on the real estate market.

Cao added Chinese consumers could not only buy daily necessities, but also tourism products, houses and automobiles via online marketplaces.

(source: China Daily)


3. Ethiopia working hard to boost its coffee exports to China

ADDIS ABABA, Oct. 17 (Xinhua) -- Exploiting the opportunity from the Chinese emerging market for Ethiopian coffee is one of the areas on which the East African country is focusing, said Tatek Girma, Director of Market Development and Promotion at the Ethiopian Coffee and Tea Authority.

Though the Chinese market has the potential, the export to the country of Ethiopian coffee is very low, when it is compared to its export of the commodity to other countries and regions.

Therefore, in addition to the traditional markets, mainly Europe, the U.S. and some Middle East countries, among others, Ethiopia is now focusing on the Chinese emerging market for the export of its organic coffee, Tatek told Xinhua.

China imported around 4,000 tons of Ethiopian coffee last year, but its import of Ethiopian coffee shows an annual growth of around 16 percent, according to the Ethiopian Coffee Exporters Association.

Reiterating that the country's exporters previously focusing on the traditional market as far as coffee export is concerned, the Director of Market Development and Promotion at the Authority underlined the need to take the opportunity created by the ever increasing coffee consumption by the Chinese.

(source: Xinhua)


4. Chinese bus maker Yutong delivers 500th vehicle to UK

LONDON, Oct. 17 (Xinhua) -- Since it first entered the UK market in 2013, Chinese bus manufacturer Zhengzhou Yutong Bus Co. Ltd. has delivered 500 vehicles to the country.

At a ceremony in Leeds, north England, on Wednesday to mark the milestone delivery, Richard Crump, general manager of Pelican Engineering Co. Ltd. which represents the Chinese company in the UK, said: "The sales of Yutong vehicles have exceeded my expectation. I strongly believe that the 1,000th vehicle will take less than five years to reach."

Li Kejie, west Europe manager of Yutong, said that the production of new energy vehicles was an important element of Yutong's international business strategy.

"With the help of its new energy strategy in China, Yutong has become the leading new energy bus maker in the world. We have already sold 120,000 new energy vehicles worldwide," he added.

Bus company Go North East had ordered the first electric bus from Yutong in the UK.

"We are looking forward to using Yutong vehicles as the first electric buses in Newcastle in 2020," said Martijn Gilbert, managing director of the company.

(source: Xinhua)


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