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The Year in Review: Michael McTague

Michael McTague | Equities.com |

Looking back, 2021 was another year full of dramatic financial issues with many consequences. We tackled a number of them. Once again, we will take a look at how we did and provide an update.


US Companies Must Prove Imports From China's Xinjiang Region Are Made Without Forced Labor

AP News | Equities.com |

President Joe Biden signed a bill into law Thursday to block imports from China’s Xinjiang region unless businesses can prove the items were made without forced labor, the latest in a series of intensifying U.S. penalties against the Asian power for alleged abuses.

The measure had to overcome some initial hesitation from the White House, as well as corporate opposition, to win final passage last week in the Senate, following earlier House passage. Biden also signed a separate bill Thursday funding research into a cure for Lou Gehrig’s disease.


What's Next for Chinese Stocks?

Tradier | Equities.com |

While US stocks rallied in 2021, the trend in Chinese stocks remains lower, which is an opportunity for value investors but a red flag for many market participants.


Some Chinese Banks Stop Offering New Credit to Property Developers Amid Evergrande Scare

Reuters | Equities.com |

As fears of contagion from any default by China Evergrande Group mounted this month, some Chinese banks, insurers, and shadow banks stopped offering new credit to property developers, and ran urgent checks on their exposure to the troubled sector.

Carrying $305 billion in liabilities, China's second biggest property developer inched closer to a potential default on Friday by missing the deadline on an interest payment.


Chinese Property Developer Evergrande Not 'Too Big to Fail' — Global Times

Reuters | Equities.com |

The editor-in-chief of state-backed Chinese newspaper Global Times warned debt-ridden property giant Evergrande Group that it should not bet on a government bailout on the assumption that it is "too big to fail."

It was the first commentary to appear in state-backed media casting doubt on a government bailout for the country's second largest property developer, whose shares fell on Friday for the fifth consecutive day amid concerns it is heading for default.


US Trade Deficit Falls 4.3% in July to $70.1 Billion

AP News | Equities.com |

The U.S. trade deficit narrowed slightly to $70.1 billion in July as economic recovery overseas helped boost American exports while imports declined.

The Commerce Department reported Thursday that the trade deficit fell 4.3% in July after surging to a record $73.2 billion in June. The trade deficit represents the gap between what the country exports to the rest of the world and the imports it purchases from other countries.


China Likely To Maintain Tight Limits on International Flights Through First Half 2022

Reuters | Equities.com |

China's aviation regulator is likely to keep the current tight caps on international flights throughout the first half of 2022, analysts cited Air China as saying this week.

The move has broad implications for tourism in the Asia-Pacific region, where Chinese outbound travelers normally play an outsized role, though other countries have also been slow to open borders because of relatively low vaccination rates and rising COVID-19 cases.


China's Purchasing Managers' Index Falls to 50.1 in August

AP News | Equities.com |

China’s factory activity decelerated in August as export demand weakened, a survey showed Tuesday.

The monthly purchasing managers’ index of the Chinese statistics bureau and an official industry group declined to 50.1 from July’s 50.4 on a 100-point scale on which numbers above 50 show activity increasing.


Magnachip Acquisition by Chinese Private Equity Firm Is National Security Risk: US Treasury Dept

AP News | Equities.com |

The U.S. Treasury Department said the acquisition of Magnachip Semiconductor Corp by a Chinese private equity firm posed "risks to national security", in another hurdle for Chinese companies trying to invest abroad in critical tech industries.

In March, Chinese private equity firm Wise Road Capital agreed to acquire system chip manufacturer Magnachip in a deal valued at $1.4 billion.


Chinese Regulators Cracking Down on Internet Companies Seeking US IPOs

Kimberly Redmond | Equities.com |

China is weighing new rules that would restrict domestic internet companies from going public in the US.

Citing sources familiar with the matter, The Wall Street Journal reported on Friday that Chinese regulators are specifically targeting internet firms whose data is deemed to pose a potential security risk.


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