Handout scheme to reach non-smartphone users

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Discussed: 20 Oct 2024 at 05: 22

Eligible people have recently flocked to GSB's branch at Sanam Chai Khet, Chachoengsao province, to withdraw cash given under the state-sponsored cash handout programme. (Photo supplied)
Available people have recently flocked to GSB’s tree at Sanam Chai Khet, Chachoengsao territory, to withdraw money given under the state-sponsored money flyer program. ( Photo supplied )

Deputy Finance Minister Julapun Amornvivat announced that the government would allow those without smartphones to sign up for the state institutions ‘ 10-millennium-baht handout program starting next month.

He claimed on Saturday that the first step of the money handout program for 14.5 million vulnerable people has resulted in a quick flow of money and helped to boost the business nationwide.

For individuals in resilient groups who do not have phones, the government is expected to open enrollment through state-owned businesses in November, he said.

After the first appointment of the Economic Stimulus Policy Committee, which is led by the prime minister, a clear finish may follow. By the end of this month, he promised that the gathering would take place as soon as possible.

He claimed that position institutions ‘ registration system is fully operational and ready to provide services to customers in November.

For step two of the program, he said the government may proceed with the same number of 10, 000 baht.

He said he never verify whether it will be made in a pile sum or in installments because the government does not yet have a set date for when the next phase will begin.

” We continue to work toward creating an open-loop payment program that will allow purchases via online cards,” he said.

When asked if the government may restore the” Khon La Khrueng” co-payment scheme, he said the government has accepted all proposals for attention.

If the job helps persons, the government may choose it to assist promote spending, he said.

The Thai Retailers Association’s president, Nath Vongphanich, stated that the association has suggested that the Revenue Department’s” Shop Dee Mee Khuen” ( Shop and Get Rebates ) program be reinstated at the end of this year, which is regarded as a high season that will greatly increase the mood for spending.

” This will give entrepreneurs and SMEs who have registered for VAT but have n’t yet used it or are requesting approval to issue tax invoices in electronic form as required by the Revenue Department more opportunities to sell goods.

” The estimate is proposed to decrease fees by up to 50, 000 baht for consumers. He predicted that the economic liquidity campaign would result in more than 100 billion ringgit in circulation.

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iCon suspects face grilling

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Failed to pay money duty: Income Dept

Warathaphon 'Boss Paul' Waratyaworrakul, founder and CEO of The iCon Group, is escorted by police from the Central Investigation Bureau (CIB) to the Criminal Court in Bangkok on Friday morning. (Photo: Central Investigation Bureau)
Warathaphon ‘ Boss Paul ‘ Waratyaworrakul, founder and CEO of The iCon Group, is escorted by police from the Central Investigation Bureau ( CIB ) to the Criminal Court in Bangkok on Friday morning. ( Photo: Central Investigation Bureau )

The iCon Group direct sales company will be interviewed by the Revenue Department ( RD ) after they failed to file personal income taxes.

Julapun Amornvivat, the lieutenant finance minister, announced on Friday that an exploration had revealed some business executives did not turn in tax payment aspects to the Revenue Department.

The Department will request the managers ‘ information from financial institutions so that it can be used in tax assessments. They will also get summoned to give explanations, he said.

He added that in order to keep up with the present situation, the Fiscal Policy Office was given the task of reviewing and improving the 1984 executive decree regulating the issuing of false debts.

The Finance Ministry is in charge of enforcing the order, according to Lavaron Sangsnit, continuous director for financing, but some people who have been impacted by the incident have complained to the authorities or the Department of Special Investigation.

According to him, the authority to impose the law may be given to the organizations that have received the issues, adding that police have not yet filed charges against the suspects in the image situation under the 1984 edict.

It is prohibited to urge 10 or more people to invest and promises returns that are higher than the bank’s highest loan interest rates, as per the decree. A person who violates the law may face a sentence in prison of up to 10 times and/or a fine of up to 1 million baht.

Warathaphon” Boss Paul” Waratyaworrakul, a prime suspect in The image Group incident, was remanded in prison along with 17 different suspects after the Criminal Court approved a police ask for confinement on Friday.

The well-known online business’s 41-year-old founder and CEO appeared stressed as he was led off Ratchadaphisek Road by the Central Investigation Bureau ( CIB ).

Police fought for parole, citing collusion with other suspects, organized offences, and victim-sustained behavior by the police. He may create a trip risk if released briefly, according to officials.

After examining the officer’s ask and Mr Warathaphon’s evidence, the courtroom granted the incarceration request. The suspect was taken to Bangkok Remand Prison without asking for loan.

On suspicion of conspiring with the people and entering false data into a computer system, Mr. Warathaphon was one of 18 suspects in custody. All denied the claims.

On Thursday, 17 defendants were taken to court. After three well-known artists ‘ loan requests were turned down due to flight risks, the court sentenced them all, while the others chose not to seek release. The three stars are professional Yuranunt” Boss Sam” Pamornmontri, artist Pechaya” Boss Min” Wattanamontree and TV network Kan” Boss Kan” Kantathavorn.

The suspects, referred to as “bosses” within The image Group’s marketing order, were apprehended on Wednesday following over 1, 000 fraud problems. Patients claimed that the company pressured them into making additional financial commitments, leading to significant losses, after tempting them with low-cost website marketing courses.

Pol Maj Gen Suwat Saengnum, the CIB deputy director, said Mr Warathaphon wanted to give more comments concerning his company. Before he was taken to court the following day, authorities completed their doubting on Thursday at around 8 o’clock.

In terms of public skepticism about the company, Pol Maj Gen Suwat said that researchers needed time to work on the situation and would work with appropriate organizations, promising justice to all parties involved.

Withoon Keng-ngarm, Mr Warathaphon’s counsel, said on Friday that he would not seek bail after other defendants were denied release. Before the court hearing, the attorney made a visit to his client at the CIB business.

During doubting, Mr Warathaphon insisted that his business operated legitimately.

Pol Maj Gen Jaroonkiat Pankaew, assistant director of the CIB, questioned Mr. Warathaphon on Thursday about an sound picture containing a conversation between two people.

The CEO of the company acknowledged that the audio tape that went viral on social media was his own speech. Nevertheless, he insisted he had not paid money to any state firms as alleged.

His lawyer even refuted statements made by Ekkapop Luangprasert, an assistant to the inside minister, regarding commodity transition into bitcoin for bribes.

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China economy slowdown deepens, official figures show

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China’s economic downturn grew worse in the three months leading up to September as the nation fought to resurrect its slowing economy.

Gross domestic product (GDP) rose by 4.6% on an yearly basis, below the government’s 5% annual target, according to China’s National Bureau of Statistics.

Beijing has announced a number of measures to encourage growth in recent months.

The world’s second largest market has been hit by a number of problems, including a home problems, as well as poor customer and business trust.

This may raise questions for the Chinese government because it is the second time in a column that its official economic growth indicator has fallen below the goal of 5 %.

China’s central banks announced earlier on Friday that it had urged banks and other financial institutions to increase borrowing to encourage growth.

Last month, the People’s Bank of China ( PBOC ) announced the country’s biggest stimulus package since the pandemic, including large cuts to interest and mortgage rates.

The plans also included measures to encourage banks to contribute more to both businesses and individuals in addition to helping the sagging investment business.

More programs have been made available by the Ministry of Finance and various government agencies since then to promote economic growth.

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FM to represent Thailand in Brics Plus meet in Kazan

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PUBLISHED: 18 Oct 2024 at 05: 00

(Photo: brics-russia2024.ru)
( Photo: brics-russia2024. ru )

Thailand will participate in the fourth Brics Plus Summit in Russia, though it was previously announced that Prime Minister Paetongtarn Shinawatra may be speaking alongside the land, Maris Sangiamposa may represent the country, not Maris Sangiamposa.

According to Foreign Affairs Ministry official Nikorn Balankura yesterday, the state will take part in the conference, which will be held from Oct 22-24 in Kazan, Tatarstan, after it was invited to attend by Russian President Vladimir Putin.

The fourth edition of the Brics Plus Summit will see the bloc’s founding members– namely Brazil, Russia, India, China and South Africa– welcome Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates ( UAE ) as new members.

Mr Putin even invited around two hundred other countries that have expressed their interest in joining the team, including Thailand, Malaysia, Indonesia, Laos, Vietnam, and Kazakhstan.

This week’s meeting will be held under the theme” Brics and the International South: Building a Better World Up”.

Thailand does have a great opportunity to reaffirm its efforts to strengthen its relationship with the Brics, he added, noting that the nation summited its application for Brics membership in June.

In the meantime, Russia is attempting to persuade Brics nations to create an alternate payment system that would be free of American sanctions.

Mr. Putin wants to strengthen Brics as a strong counterpoint to the West in world politics and business. According to a report prepared by Russia’s finance department and central banks, the request for a new payment program based on a system of corporate banks linked to one another through the Brics central banks may be presented to journalists ahead of the summit.

The system may save and move electronic tokens that were secured by foreign currencies using blockchain technology. This would subsequently make it possible to exchange those assets without having to use the money.

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Now’s not the time to short the yuan – Asia Times

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As the” Trump business” returns to create fear of political upheaval great once, global hedge funds are racing to little China’s yuan money.

They are betting that Trump’s designed combination of tax and business measures will boost local rise if elected, and that China may seek to become more dynamic.

However, betting on a weaker yuan could prove to be a lot of a mistake if the last several decades of the Xi Jinping age are any link.

Let’s begin with the Trump estimate. Obviously, the November 5 US vote is a true toss-up. One time, polls suggest Kamala Harris ‘ Democrats may emerge. The second, hp emerges to telephone a Trump 2.0 White House is coming.

This year, the speed seems to be on Trump’s part. In the US$ 300 billion dollar options business, hedge funds are placing higher stakes on a weaker renminbi. Yuan uncertainty is currently at its highest level since the middle of 2022.

However, it seems as though Trump’s 2017-2021 phrase will be forgotten due to fears that he might prefer a stronger dollar. Trump was unwaveringly in favor of a lower US transfer rate to benefit American companies and stifle China.

It’s also worth remembering Trump’s abuse on the US Federal Reserve. Trump was angry that his chosen Fed chair, Jerome Powell, continued father Janet Yellen’s price hikes. He then browbeat Powell into cutting rates, adding stimulus in 2019 that the economy did n’t need.

On top of the Fed’s broken trust, the US federal debt soared under Trump and present President Joe Biden, then topping$ 35 trillion.

Include social fragmentation to the picture until January 20, 2025, when the next management will take office. Even if Trump loses, no significant journalist thinks he will go away quietly.

One of the causes of Fitch Ratings ‘ cancellation of its AAA standing on US bill, joining Standard & Poor’s, was the fallout from the uprising on January 6, 2021, which Trump fomented. The next rating agency to assess America AAA is now Moody’s Investors Service, the source of the current query.

The Beijing component of this riddle is more crucial, though. There are at least four causes why Beijing is unlikely to help the yuan to fall very little.

One, a falling yuan may make payment on onshore bill more difficult for very obliged organizations like home builders. That would boost proxy risks in Asia’s biggest market. The last thing Xi wants is to see# ChinaEvergrande trending once more in the internet.

Two, the economic easing needed to sustain the yuan’s declines — especially with the Fed cutting rates, also— could harm Xi’s deleveraging efforts. Xi’s interior group has made significant strides over the past few years in eradicating financial abuse.

This explains why Xi and Premier Li Qiang have been reluctant to permit the People’s Bank of China ( PBOC ) to cut rates more forcefully, despite China Inc.’s reputation for deflationary pressures.

Three, increasing the yuan’s global usage is probably Xi’s biggest economic transformation achievement since 2012. In&nbsp, 2016, China&nbsp, won a place for the yuan in the International Monetary Fund’s” special&nbsp, drawing&nbsp, right” box, joining the dollar, yen, euro and pound.

Since next, the stock’s apply in business and banking has soared. Increased easing then may dent trust in the yuan, slowing its headway toward reserve-currency position.

Fourth, it may produce China a more contentious and important issue during a distinctly divisive US election. Trump’s Republicans and Democrats who are close to Harris concur that they must be strong with Beijing.

Beijing’s claims that it is manipulating the renminbi lower could stoke bipartisan support in Washington. especially in light of the Trump administration’s plan to impose 60 % taxes on all products made in China.

” As well as levies, the badge of ‘ money manipulator’ may be a second red flag for an Eastern economy”, said Robert Carnell, Asia-region head of research at ING Bank.

A weaker renminbi would be used by Xi to sign a sense of anxiety and anguish. Certainly the stories Xi wants international investors to be thinking about as the year 2025 draws near.

Otherwise, Xi and Li have been ratcheting up the signal without triggering sounds of 2015, 2008 and additional past incidents of large pro-growth “bazooka” storms.

Earlier this month, Beijing cut borrowing costs, slashed businesses ‘ supply need numbers, reduced mortgage costs and unveiled market-support resources to put a floor under share costs. Bolder fiscal stimulus steps are being mulled, too.

On Thursday ( October 17 ), Team Xi raised the loan quota for unfinished housing projects to 4 trillion yuan ($ 562 billion ), nearly double the previous amount.

The bump was less than markets wanted, as evidenced by Chinese stocks falling into” correction” territory this week. The&nbsp, CSI 300 Index&nbsp, ended Tuesday down 1.1 %, bringing its declines since an October 8 high to roughly 11 %.

The bigger issue, of course, is repairing the balance sheets of giant property developers.

” They’re still trying to talk the talk, with more noise about stabilizing the property market”, said Stephen Innes, an economist at SPI Asset Management.”

As Thursday’s housing moves were” rolled on, it was clear: traders were not thrilled,” Innes said”. Let’s be honest, though – China’s property mess is n’t something that can be patched up with a few speeches and half-baked measures.”

According to Morgan Stanley economist Robin Xing, “resolving the debt issue is a crucial step in stopping a key deflationary downward spiral,” while adding that direct demand stimulus is equally crucial.

Team Xi has made several commitments over the past few years to develop a method to remove toxic assets from property developers ‘ balance sheets.

Beijing has in fact demonstrated what is required to turn things around: a bold plan to boost the finances of high-quality developers, encouraging mergers and acquisitions, promoting property investment so that more people no longer consider real estate as their only option, and establishing social safety nets to encourage households to spend more and save less.

Indeed, over the past few decades, there have been numerous crises from which to draw lessons. They include Japan’s efforts to remove toxic loans from banks ‘ balance sheets in the early 2000s, as well as the US’s use of the Troubled Asset Relief Program, or TARP, to deal with troubled assets after 2008.

More fundamentally, Xi’s reform team must step up efforts to recalibrate growth engines away from exports toward innovation and high-niche industries.

Investors should be reassured that the brutal crackdowns on tech companies have ended in 2020. China also needs to shed its adversity toward the fundamental level of economic transparency that the world’s funds demand.

But as Xi and Li understand, a weaker yuan wo n’t bring about any of these big-picture reforms. It might give China a little more time to achieve its 5 % growth goal this year, but at a cost that Chinese leaders appear unwilling to pay.

There are myriad other reasons why, in the US, one reason is to believe that the dollar’s outlook will be more red ink than black.

One of the issues with the US national debt, which is now twice the size of China’s annual gross domestic product, is that it is two times that large. However, there are a good chance that Trump will backtrack on some of the financial planning moves he made during the first, only to have them halted by economic advisers in a second term.

One was Trump considering canceling large sums of the US owed to Beijing in order to punish Xi’s economy in the midst of trade negotiations. These considerations were hardly ever out of the blue.

In May 2016, six months before he was first elected, &nbsp, Trump, a serial bankruptcy offender as a businessman, floated reneging on US debt in a&nbsp, CNBC&nbsp, interview.

” I would borrow, knowing that if the economy crashed, you could make a deal,” &nbsp, Trump&nbsp, said”. And if the economy was good, it was good. So therefore, you ca n’t lose.”

Moody’s Analytics economist Mark Zandi spoke for many when he called the idea of reneging on US debt” complete craziness” that” would be financial Armageddon.”

Trump&nbsp, 1.0 considered a dollar-to-yuan devaluation of the kind that Argentina or Vietnam might employ. In April, for example, Politico&nbsp, reported that Trump 2.0’s inner circle is” actively debating” an Argentina-like pivot at the behest of advisors like&nbsp, Robert&nbsp, Lighthizer, Trump’s former international trade representative.

Yet, instead of” America first,” such a detour might do more to advantage China in the longer run. Buenos Aires would be operating a Group of Seven economy if devaluation were a method for prosperity. Turkey and Zimbabwe would be booming. As Asia’s largest economy, Indonesia would be giving China a run for its money.

To China’s advantage, the US trying this gambit would increase inflationary pressures and expose the dollar’s status as a reserve currency.

Investors generally believe that the policies they are proposing to promote US reindustrialization, such as steep tariffs on goods imported, will tend to result in dollar strength in comparison to other currencies, according to a note from Global Analysts.

But, they added, the” likely consequences of this disconnect include a potential conflict between the White House and Fed, and a diplomatic drive to&nbsp, weaken the US dollar, possibly involving a new version of the 1985 &nbsp, Plaza&nbsp, Accord.”

Trying such a gambit in 2024 would be extraordinarily destabilizing. The odds are very low that Xi would choose to pursue it. China recalls how Japan’s acceptance of a stronger yen ravaged its economy for decades to come, aside from the Communist Party’s aversion to being pushed around.

Even so, hedge funds that are betting on a weaker yuan in the months ahead might be ignoring the bigger picture of the Xi era.

Follow William Pesek on X at @WilliamPesek

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Borong to invest US.4mil to boost Sarawak’s MSMEs and digital economy

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  • Strengthen footprint directly, grow globally via cross-border digitisation
  • Target 60k MSMEs that offer online tools to move their businesses from offline to online

SDEC CEO Ir. Ts. Sudarnoto Osman (left) with Aizat Rahim, co-founder of Borong at the signing.

At today’s 7th International Digital Economy Conference Sarawak, five other companies, including Sarawak Digital Economy Corporation ( SDEC ), and leading startup Macro Tech Ventures Sdn Bhd, which operates in the market under the name” Borong brand,” and a collaboration between five other companies. Many of the state’s MSMEs are now under the radar.

In a MOU signing Borong committed to invest US$ 17.4 million ( RM75 million ) via Digital Niaga, a credit financing scheme in collaboration with development banks BSN, Bank Rakyat, and Agrobank, to enable digitalization across Sarawak’s MSMEs, boosting local businesses growth.

The relationship between Borong and SDEC, according to Aizat Rahim, co-founder of Borong, is a good step in the direction of innovation and developing businesses in the modern time to improve Sarawak’s economic growth. ” We are committed to invest in Sarawak’s MSMEs to improve their footprint directly and grow globally via cross-border automation”.

SDEC CEO Ir. Ts. Sudarnoto Osman said,” The MOUs ( with Borong and the other five companies ) represent a critical step in Sarawak’s journey toward becoming a digital economy powerhouse. These partnerships are about more than just technology—it’s about empowering the group through modernization. By integrating digital options, we are equipping our regional businesses with the knowledge, support, and funding to thrive”.

Borong aims to transform over 60 000 Enterprises by providing online tools and resources that enable them to move their companies from offline to online. With an estimated average monthly purchase of US$ 92.8 ( RM400 ) each, with Borong providing RM1, 200 of credit financing for each MSME for three months, the RM75 million financing, “is just the beginning for us to catalyse the growth of these MSMEs in Sarawak”, said Lennise Ng, co-founder and CEO of Borong.

]RM1 = US$ 0.232 ]

” We are very satisfied with the outcomes when we have a stronger foundation to entice other colleagues to make more investments in MSMEs, not just in Sarawak but throughout Malaysia,” she continues. &nbsp,

Along with SDEC, Borong will carry knowledge, online training, and onboarding activities. These small businesses are being trained to use Borong’s retail and industry platforms to expand their global reach and profitability. Borong earns a small 2.5 % split from deals on its platform.

When incorporated into the Borong ecosystem, these Enterprises will have easy access to affordable financing that can be as low as 2.5 % per year. Borong and its banking partners have so far allocated over RM300 million in SME financing that is willing to be used and deployed.

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Will China’s epic spend be enough? – Asia Times

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China’s unrelenting monetary expansion was once known as the world’s wonder. Oh, what a remembrance.

China has been dealing with an economic downturn in the last few years as a result of colliding problems, many of which are world-class. Consumer prices have been approaching negative place, there’s an oversupply of accommodation, and children unemployment has soared.

The Taiwanese government has been forced to intervene due to increasing pressure. Beijing has approved a number of important economic stimulus measures over the past month to revive the country’s struggling business.

This stimulus may have the potential to be” the largest in story” in nominal terms, according to a study word from Deutsche Bank. But there’s still a lot we do n’t know. What kinds of actions have been included in this package so much, and has China already been there?

What’s in the item?

On September 24, Pan Gongsheng, chancellor of China’s northern lender, unveiled the government’s boldest intervention to raise its market since the pandemic.

Reduce the amount of cash commercial lenders are required to carry in reserves and lower the loan rates for existing homes were among the initiatives. By allowing the banks to lend out more money, the latter is anticipated to reinvest about 1 trillion yuan ( US$ 140. billion ) into the financial sector.

On top of this, 800 billion renminbi was announced to develop China’s money market.

A new 500 billion yuan economic policy hospital was added to this to facilitate easier access for institutions looking to purchase stocks, as well as a 300 billion yuan re-lending facility to aid in faster housing sales that were already sold.

Further evidence of financial revival became visible at a&nbsp, Politburo meeting&nbsp, of China’s top government officials two weeks after this statement.

Xi Jinping, the president of China, emphasized the need for an economical revival. Xi also encouraged officers to “go strong in helping the market” without having to fear the consequences.

A joint policy offer was released on the same day that seven government sections released a joint plan to maintain China’s 500 billion yuan cheese sector, which has experienced severe damage from milk and beef prices decline since 2023.

Business coaster

First, the market’s reaction was overwhelmingly positive. Maybe too optimistic. In the last week of September, investment areas in Shanghai, Shenzhen and Hong Kong saw their biggest regular rise in 16 years.

On October 8, the Shanghai and Shenzhen stock markets reported an extraordinary 3.43 trillion renminbi in churn following China’s National Day holiday. But, anticipation for more stimulus measures were met with sorrow.

From the funds for 2025, China’s National Development and Reform Commission approved 100 billion yuan in expenditures. That was n’t enough to sustain market optimism. The most drastic decline in Chinese securities in 27 years occurred on October 9.

This decline only gotten worse a few days later, when the Chinese Ministry of Finance made the suggestion that there was “ample place” for debt collection but did not specify any fresh stimulus measures.

Also thin on the information

The market’s opinion of China’s economic policies ‘ future way and what they might suggest for the world is still largely unknown. Hope that more information would be made over the weekend were generally squandered.

Chinese officials stated in a communiqué released in July that China “must continue to be strongly committed” to meeting this year’s 5 % economic growth goal. Compared to the government’s reform-era financial performance, that’s a reasonable goal.

But facing a consistently weak economic outlook, Xi after seemed to subtly shift the tone, changing the language from “remain strongly dedicated” to” strive to fulfill” in September.

Over the past years, China has frequently employed massive-scale trigger measures to revive its economy during recessions. Although often having unfavorable side effects, these plans have been able to significantly revive the business.

In response to the 2008 global financial crisis, China’s State Council released a 4 trillion yuan signal package. This was credited as a significant stabilizer of the world economy and helped China stay resilient throughout the issue.

However, it also contributed to the rise of” shadow banking,” or illegal economic activity, by accumulating billions of yuan in debt through regional government financing. In response to the stock market volatility and the pandemic, China also spent a lot of money to boost its business in 2015.

Following a property market collapse in 2015, China implemented extensive signal actions. &nbsp, Image: Shan he / AP via The Talk

What to expect?

What can we anticipate from this moment? How stable or healthy will any subsequent growth be? Any significant increase in Chinese financial demand will likely own” spillover” effects, but we are still awaiting some information regarding the package’s size and scope.

As we’ve discussed, many of the actions announced to date may include their most immediate impact on loans, financing and cash in China’s share markets.

That suggests we may see for what’s called the “wealth effect” in finance. This is the idea that rising commodity prices, such as those for housing or shares, cause people to feel more wealthy and therefore to invest more.

If China’s huge stimulus invest causes sustained increases in property values, it may give rise to economic enthusiasm. Foreign investors and customers may start to feel less anxious about the future.

From Australia’s point of view, that could see increases in demand in areas where our economy are interlinked – iron ore, hospitality, training and manufactured foods exports. More widely, Chinese demand may lead to development in different global economy, with a self-reinforcing effect on the world as a whole.

Beware financialization

On the other hand, China’s switch to rely on dangerous asset price increases in its capital markets to support growth may have unbalanced effects. Where property price rises benefit those at the” bottom end of town,” they can lead to their own inequities and imbalances.

China’s” Black Monday” stock market crash in 2015 raised sirens in Beijing. Primarily reflecting a wariness of excessive financialization, Xi cautioned at the time that “housing is for living in, never for debate”.

China is also working on a more sustainable growth model, trying to strike a balance between maintaining economic growth and stabilizing its social and private environment. For us all, perhaps perhaps China itself, the result is still incredibly questionable.

Wesley Widmaier is an Australian National University professor of global connections, and Wenting He is a PhD candidate for the Australian National University.

This content was republished from The Conversation under a Creative Commons license. Read the original post.

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Market unsatisfied with Beijing’s 6 trillion yuan stimulus – Asia Times

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In order to relieve the local government debt problems and boost the economy, the Chinese Ministry of Finance is anticipated to challenge 6 trillion yuan ( US$ 843 billion ) of ultra-long special Treasury securities in the next three years.

The release of ultra-long unique government securities, which have maturities of more than 10 times, is a part of China’s efforts to boost its market through fiscal signal, Caixin reported on Monday, citing some unknown options. &nbsp,

Stock investors had been speculating about the size of the government’s potential stimulus package after the People’s Bank of China ( PBoC ) and financial regulators on September 24 announced interest rate and reserve requirement ratio ( RRR ) cuts and vowed to stop home prices from falling.

In the fifth China Macroeconomy Forum on September 21, Liu Shijin, a leading scholar and former deputy leader of the China State Council’s Development Research Center, recommended that the main federal issue ultra-long unique government bonds within one to two times. &nbsp,

He suggested that the central government should use the bonds ‘ proceeds to buy up empty homes from the industry in the near future and promote industrialization over the long term. &nbsp,

Liu’s remarks had a role in the recent rise in the property business in Hong Kong and mainland China. &nbsp,

Both the Shanghai Composite Index and the Hang Seng Index have increased 27 % since September 24 before reaching their maximums on October 8 and 7, respectively. &nbsp,

Some property owners have been reducing their holdings over the past year as a result of the perception that China’s economic stimulus deal is not delivered on time.

The Shanghai Composite Index has declined 8.5 % from its peak of 3, 498 on October 8 to 3, 201 on Tuesday. The Hang Seng Index has lost 12 % from 23, 099 on October 7 to 20, 318 on Tuesday.

A live-mic murmur

Finance Minister Lan Fo’an stated in a media briefing on October 12 that the central government would considerably raise debt by issuing ultra-long specific treasury bonds to help China’s local debt problems. However, he refrained from making the bond issuance plan’s scale and timing public. &nbsp, &nbsp,

When Deputy Finance Minister Liao Min was questioned by a journalist about the size of the bond issuance, Lan told Liao with a whisper not to reveal it for the time being because” the size is big.” The media heard Lan whispering to Liao while his microphone was turned on. &nbsp,

Prior to that, according to a report from Bloomberg on October 11 that the majority of 23 investors and analysts polled predicted that China would invest up to 2 trillion yuan in a stimulus package to boost its economy.

On the same day, Reuters reported that Beijing was anticipated to announce 2 trillion to 3 trillion yuan in new spending. &nbsp,

These predictions were actually not far off the recently released 6 trillion yuan package because the majority of the money will be funded by an existing special bond issuance program. &nbsp,

The Ministry of Finance announced in March that it would start issuing ultra-long special treasury bonds in 2024. According to the statement, local governments can use half of the proceeds to pay off debt, and the central government can use the other half.

A total of 752 billion yuan of ultra-long special treasury bonds were issued in the first three quarters of this year, some of which had maturities of up to 50 years. &nbsp,

If the Finance Ministry continues with this initiative, it will be able to raise an additional 3 trillion yuan over the course of three years.

Local governments can apply for 500 billion yuan of loans each year under this program, which will not be enough to cover the interest payments on the remaining local debt, which is now 43.6 trillion yuan from 40.7 trillion yuan as of 2023. According to the Finance Ministry, the average term for the outstanding local debt is 9.4 years, while the average interest rate is 3.15 percent. &nbsp, &nbsp,

Claire Xiao, a senior credit analyst at Fidelity International, said in a report earlier this year that China’s public debt is about 70 % of the country’s gross domestic product at the end of 2023. However, she added that if additional 60 trillion yuan are accounted for by LGFV loans, China’s government debt to GDP ratio is about 130 %. &nbsp, &nbsp,

A basket of measures

Lan stated in the media briefing on October 12 that Beijing would introduce a number of incremental fiscal policy measures:

  • reduce the potential for local and LGFV debt,
  • replenish state-owned banks ‘ tier-one capitals, &nbsp,
  • stop home prices from falling,
  • grant loans to underprivileged families and scholarships to students, and
  • increase people’s overall consuming power.

He claimed that since there is still room for the central government to raise debt and raise the fiscal deficit, Beijing’s stimulus measures wo n’t be limited to these areas.

It is possible that Beijing will provide more information about the issuance of sovereignty and special bonds after the National People’s Congress standing committee holds its regular meeting later this month, according to a commentary published by Yicai.com. &nbsp,

Read: Chinese stocks cool down as investors check reality

Follow Jeff Pao on X: &nbsp, @jeffpao3

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Sri Lanka arrests over 230 Chinese in cybercrime raids

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The foreign minister said on Tuesday ( Oct 15 ) that Sri Lankan police have detained more than 230 Chinese men who are accused of stealing money from international banks through online scams with assistance from security officials sent by Beijing. According to Vijitha Herath, authorities have seize 250 computersContinue Reading

Prosecutors seek 20 years’ jail for Hin Leong oil tycoon OK Lim, 82

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When Lim directed his workers to falsify documents for false transactions, Judge Toh had determined that Lim had “dishonest purpose.”

At the time of the crimes committed in March 2020, Lim was the managing director and 75 % of Hin Leong Trading, an crude trading firm incorporated in Singapore.

However, the judge determined that Lim remained a “hands on” “big manager” of Hin Leong even after he resigned in April 2020, and that his consent was required for investments.

LEGEND IN OIL INDUSTRY ORCHESTRATED FRAUD: DPP

Deputy Public Prosecution Christopher Ong, Kelvin Chong and Foo Shi Hao sought 20 times ‘ prison for the elderly.

Mr Ong said the amounts in Lim’s lying charges are among the highest in Singapore for business financing scams, and that Lim’s offences “tarnished Singapore’s hard-earned popularity” as Asia’s leading crude trading gateway.

Lim’s two lying claims are “examples of the worst possible types of cheating” and permit the maximum sentence of 10 times per command, Mr Ong argued.

For the fraud charge, the prosecutors sought nine decades, a time less than the maximum. The utmost a district judge can impose in a single trial is requested that the two cheating words be run continuously for a total of 20 times.

According to Mr. Ong, Senior Counsel Davinder Singh and his team’s prevention request, “given the weight of the offences,” no weight should be given to Lim’s era or his health condition.

The trial claimed that if the judge wanted to give Lim’s advanced age a week’s discount at the most, it should have been at least one.

The prosecutors cited the amount of money being cheated, the losses being made, how the crimes may have affected Singapore’s financial services and economic system, as well as potential “undermined public trust in Singapore’s fuel trading industry” as justification for their 20-year claims. &nbsp,

Mr Ong said Lim was the architect, directing his people to undertake the infractions, with a full excellent damage of about US$ 85 million.

In the past of Singapore’s business financing scams offences, his situation is second only to the loss caused by Lulu Lim, the former chief financial officer of&nbsp, commodity firm Agritrade International, who was” only an employee” in her company, said Mr Ong.

He argued that Lulu Lim committed the offences out of self interest, and it is clear that Hin Leong was Lim Oon Kuin’s “life’s work”.

The latter had provided proof of how he had transformed the business from a small group of individuals he had described as family members.

” He was the managing director of Hin Leong, the sole and original managing director, all the way until April 2020, for 47 years”, said Mr Ong.

In contrast to how he tried to” throw the employees under the bus and blame them completely” at trial, Mr. Ong said in his mitigation argument that any suggestion Lim committed the crimes out of concern for his employees ‘ continued livelihood must be taken into account.

Mr. Ong claimed that Lim was prepared to lay the blame entirely on the shoulders of a devoted employee who he claimed treated like a daughter.

Mr. Ong claimed that the defense had requested a seven-year period that was “manifestly inadequate.”

In terms of Lim’s medical offenses and his claim that Lim would suffer disproportionately from a lengthy sentence, Mr. Ong said the idea that a sentence does not in effect amount to a life sentence is not “iron-cast” is not true.

The only thing that needs to be taken into account when deciding whether a sentence against the accused… will amount to a life sentence is that the accused was still vital enough, still in charge of Hin Leong enough to engineer and direct that these frauds take place or be committed, according to Mr Ong.

” It would be unjust, I submit, if having been able to engineer these crimes at this advanced age, the accused then escapes the appropriate punishment for his crimes by using that age as an excuse,” the accused said.

Mr. Ong said the Singapore Prison Service can treat the medical conditions that the defense has highlighted, such as Lim’s wheelchair use and fall risk.

Mr. Singh said in his reply arguments that the prosecution did not have sufficient evidence to support some of its claims, such as that Lim attempted to throw his employees under the bus or that his crimes had the potential to undermine trust in Singapore’s oil trading industry.

The prosecution had compared Lim’s case with that of&nbsp, former Asia Pacific Breweries finance manager Chia Teck Leng&nbsp, -&nbsp, who was sentenced to 42 years ‘ jail for swindling four foreign banks out of S$ 117 million. However, &nbsp, Mr Singh said Chia’s case was from 2004. Adjusted for inflation, the amounts involved in Chia’s case are higher than Lim’s, he argued.

Mr Singh also argued that there are “very serious gaps” in a letter from the prison service, which the prosecution used in saying that&nbsp, Lim ‘s&nbsp, needs can be met in jail. The letter does not address all of Lim’s medical conditions, Mr Singh said. &nbsp,

These include anxiety, depression, insomnia, a large prostate, asthma, coronary artery disease and cerebral vascular disease with cognitive impairment.

The issue of whether Lim would suffer disproportionately was” not even addressed” by the prison service, said the veteran lawyer.

Without addressing these concerns, “how can this court know that there is no such concern”? asked Mr Singh.

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