China’s Economic Data for Jan-Feb, 2021. Graphic: Jin Jianyu and Chen Xia/GT
The fixed asset investment in China shot up by 35 percent in the first two months of 2021, compared with a 24.5 percent slump in the same period last year, thanks to the accelerating investment into high-tech industries and social welfare sectors, as the country’s economy has returned to its normalcy.
From January to February, China’s fixed asset investment hit 4.523 trillion yuan ($695 billion), a year-on-year increase of 35 percent and 3.5 percent higher than the same period of 2019 with the two-year average growth rate of 1.7 percent, according to the National Bureau of Statistics (NBS).
The figures tell of a very strong growth in investment, particularly in the fields where effort is needed to make up for past vulnerabilities, indicating the key role of investment in optimizing the country’s supply side structure, said Liu Aihua, a spokesperson of NBS.
Growth has been accelerated by investment in high-tech industry which has soared 50.1 percent year-on-year, of which, investment in high-tech manufacturing and high-tech service industry were up 50.3 percent and 49.8 percent respectively.
The investment in computer and office equipment manufacturing shot up by 99.5 percent while on medical equipment and instrument manufacturing were up by 66.6 percent.
For the high-tech service industry, the investment in e-commerce service industry and R&D design service industry climbed by 88.4 percent and 85.3 percent respectively.
The investment in social welfare sector rose 48.0 percent year-on-year, with investment in health and education up by 63.0 percent and 53.0 percent respectively.
The central government has drummed up the core position of tech innovation in the industrial structure which has brought vigor to the market, which helped raise the investment in strategic industrial lines, Cong Yi, a professor at the Tianjin University of Finance and Economics told the Global Times on Monday.
“The accelerated growth in high tech industries including computers, medical equipment, new energy generation and biomedical industry reflects that in the future, information and high-tech industry is the direction of industrial upgrade,” Cong said.
Liu noted that the investment in manufacturing industry is recovering slowly despite the fact that the pandemic has been effectively controlled in China.
According to NBS data, manufacturing investments were up by 37.3 percent thanks to a low base in 2020
“Recovery momentum for manufacturing is on the climb, restricted by enterprises’ investment ability. As the pressure of pandemic prevention and control still exists, and the overseas environment is complex, it may take some time for the manufacturing investment to recover fully,” Liu said.
To break it down, the investments in the primary industry climbed 61.3 percent, in the secondary industry rose 34.1 percent, and the investment in the tertiary industry rose 34.6 percent.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
