Banks pumped more than $150bn last year into companies whose giant “carbon bomb” projects could destroy the last chance of stopping the planet heating to dangerous levels, the Guardian can reveal. The carbon bombs – 425 extraction projects that can each pump more than one gigaton of carbon dioxide into the atmosphere – cumulatively hold enough coal, oil and gas to burn through the rapidly dwindling carbon budget four times over. Between 2016 and 2022, banks mainly in the US, China and Europe gave $1.8tn in financing to the companies…
Tag: Chinese economy
High interest rates help double HSBC profits
HSBC will hand more than $3bn (£2.5bn) to shareholders, after higher interest rates helped to more than double quarterly profits, despite taking a financial hit on China’s property crisis. The London-headquartered bank said it was launching the share buyback, and pay a dividend worth 10 cents a share, after what its chief executive, Noel Quinn, hailed as “three consecutive quarters of strong financial performance”. The move came as HSBC revealed it had made $7.7bn in pre-tax profits between July and September. While it fell short of average analyst forecasts for…
China launches tax investigations into Apple iPhone maker Foxconn
China’s tax authorities have launched multiple investigations into the company that makes the iPhone, months after its billionaire founder announced he would run in Taiwan’s presidential elections. Foxconn faces tax audits of its operations in China, as well as investigations into land use in two Chinese provinces, according to reports by local media. The investigations, which were confirmed by the Taiwan-based manufacturer but have not been officially announced by any of China’s government departments, are thought to be politically motivated. Foxconn’s founder, Terry Gou, announced in August he would run…
China’s Country Garden risks default after ‘missing bond payment’
The crisis in China’s property sector deepened as Country Garden, the country’s biggest developer by sales, reportedly missed its final deadline for an interest payment on a dollar bond, putting it at risk of default. The company, which has about $200bn (£163bn) in liabilities and nearly $11bn in dollar-denominated offshore bonds, was due to make a $15.4m coupon repayment this week, but failed to do so, according to reports. Its share price fell 4% in Hong Kong on Thursday, and is down 74% since the beginning of the year. Country…
China’s economy grows faster than expected as retail sales rise
China’s economy grew at a faster than expected rate in the third quarter, suggesting the recent flurry of policy measures is helping to bolster a tentative recovery in the world’s second-biggest economy. Rapidly weakening growth in China since the second quarter has prompted authorities to step up support, with Wednesday’s data indicating the stimulus is starting to gain traction, although a property crisis and other problems continue to pose risks. Gross domestic product (GDP) grew 4.9% in July-September from a year earlier, data released by the National Bureau of Statistics…
China’s Economy Grew More Than Expected Over the Summer
China’s economy grew more than expected over the summer, as the government offset some of the harm from a real estate crisis by pouring money into infrastructure construction projects, like building rail lines. Data released on Wednesday showed that gross domestic product grew from July through September compared with the prior three months. Industrial production of everything from chemicals to steel began to stabilize as the government built more roads, sewage lines and other public works. China’s economy, the world’s second largest, has struggled since the spring, as housing sales…
Former Bank of China boss arrested on corruption charges
China has arrested the former head of one of the country’s largest commercial banks on charges of accepting bribes and illegally granting loans, amid a two-year anti-corruption drive targeting the financial sector. China’s Central Commission for Discipline Inspection (CCDI), which is investigating corruption within the ruling Communist party, said on Monday that Liu Liange had been arrested, after announcing the start of the investigation in March. President Xi Jinping has made fighting corruption a key part of his political project as he has cemented his position as paramount leader. A…
In China Businesses Cut Prices as Consumers Spend Less
To understand today’s penny-pinching Chinese consumers, behold the vicious price war playing out among the country’s coffee store giants. Luckin Coffee, a popular Chinese chain, rose to prominence and opened 10,800 stores by successfully undercutting Starbucks’s prices. But now, Cotti Coffee, an upstart rival started by the same two people who founded Luckin, is undercutting Luckin’s prices. Cotti has opened stores near Luckin shops, and it is charging — in some cases — 1 yuan, or 15 cents, less than its rival for the same drink. Earlier this year, Cotti…
China’s Country Garden warns it could default on debt
China’s largest private developer has warned it could default on its international debts, dealing another blow to the country’s embattled property industry. Country Garden has about $200bn (£163bn) in liabilities and nearly $11bn in dollar-denominated offshore bonds. It has not defaulted so far, but has missed coupon payments on some dollar bonds since last month and faces the end of 30-day grace periods for making payments from next week. It said in a statement to the Hong Kong stock exchange the company said that it “expects that it will not…
Beijing’s mixed messages leave businesses ‘questioning’ investments in China
In July 2021, Chinese markets braced for a buzz. Syngenta, the Swiss agritech giant, filed for a $10bn-dollar listing on Shanghai’s STAR Market, a tech-focused stock exchange. It should have been a win-win for China; Syngenta said it would invest some of the new financing into agricultural technology, promising an injection of cash into an important sector. But, more than two years later, Syngenta still hasn’t listed. Beijing insists that China is open for business and that it is committed to supporting the private sector. But a renewed focus on…