Business
Country Garden, a major Chinese property developer, successfully made two interest payments to bondholders just before the end of a 30-day grace period, avoiding a technical default. The company had recently issued a warning about the possibility of defaulting on its debt after reporting a significant quarterly loss. With a total liability of approximately $187 billion, its struggles have caused concern among investors. However, there was a brief rally in Chinese markets following this news, as well as announcements from Beijing, Shanghai, and other cities about relaxed mortgage requirements for homebuyers.
The challenges facing China’s economy are exemplified by the decline in its once-dominant trade performance. The country’s exports dropped by 8.8% in August compared to the previous year, marking the fourth consecutive month of decline (with a 14.5% plunge in July). Outbound shipments from China to Japan experienced a 20% decrease.
Saudi Arabia and Russia surprised the markets by extending their voluntary cuts in oil production until the end of 2023, instead of the expected October deadline. This news led to a price surge, with Brent crude trading at $90 per barrel for the first time since November of the previous year. Some analysts speculate that Russia aims to maintain higher oil prices, and consequently higher fuel prices, to exert pressure on the Biden administration ahead of the upcoming presidential election in America next year.
2023-09-07 09:20:20
Post from www.economist.com
rnrn