China shares plunged Tuesday at 6.4%. The Shanghai index closed below 2,800 for the first time since December 2014. The condition has worried the investors for the capital outflow from China. Other Asian markets dropped as oil prices decreased.
China
It's too early to dump Chinese stocks, Citigroup tells investors
Citigroup holds view that it's too early to come to a conclusion about the state of the world's largest economy. It advises investors not to offload stocks over China. Citigroup in its latest research reports terms the present uncertainty and sluggishness in the Chinese economy and markets as a 'correction.'
Martin Prosperity Institute Published Global Venture Capital Statistics
Venture capital and private equity that sprung from California Bay Area in 1960's has been a global phenomenon. A Canadian reseach institute publish a report about venture capital investment in tech startups around the world.
MSCI to delist few Hong Kong shares over high shareholding concentration
MSCI to delist Hong Kong firms over high shareholding concentration. The companies eliminated will not be eligible for enclosure in MSCI Global Investable Market Indexes until adequate public disclosure on their stockholdings is produced.
Food Safety: US Meat Supplier Disputes Chinese Court Verdict Over Selling Expired Meat in China Restaurants
The supplier's subsidiary units in China was convicted for selling substandard and expired meats to restaurants including McDonald's and KFC. However, the company argued that the verdict was unjust and inconsistent with the evidence presented in court.
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Oil prices rebounded on news that there may be production cut by OPEC. US Brent futures recouped losses by 6.8 percent and US crude pared 9.3 percent losses during the week. In overall, oil prices rebounded by over 25 percent after hitting 12-month low in January. Oil price hit $27.10 on 20 January 2016.
At the end of the month, Chinese stocks rallied and closed higher on Friday. Despite this, Shanghai Composite Index suffered its biggest monthly fall in the past seven years. The Chinese benchmark index Shanghai Composite tumbled 22.6 percent in January and this is the biggest monthly fall since October 2008. Chinese currency Yuan was marginally moved up against the US dollar on support extended by People's Bank of China (PBOC).
Global Innovation: China, India, and Thailand Are Among Countries With Lesser Support for Innovation
The Information Technology and Innovation Foundation (ITIF) concluded the study based on 27 factors that bring both positive and negative impact towards global innovation. The study involved 56 countries, whereas China stood at the 44th rank, Thailand the 53rd, followed by India. ITIF also noted that supporting global innovation is crucial for countries' economic growth.
China's tech startup may find 2016 as a tough year as venture capital will face a slowdown this year. Analyst predicted venture capital in China will decline this year, and government try hard to boost the development.
Many Chinese factories are being abandoned due to the downturn in the country. This has caused millions of workers unemployed, and many of the remaining workers should have their salaries cut.
China’s central bank, the People's Bank of China is putting the largest amount of cash into the financial system in nearly three years which is around 340 billion yuan. The move was done as the bank is preparing for lots of cash out as it is nearing the Lunar New Year.
Wynn Palace, an under construction casino, is widely expected to attract Chinese consumers and thus transform Macau to a popular tourist region. The casino project has been expected to be completed by June 25 followed by a revision on deadline. But work progress seems to be slow and the contractor for the $4.1 billion project is probably going the miss the extended time frame further. Steve Wynn, founder of Wynn Macau Ltd. has sent a letter to the construction company cautioning to count compensation up to $200 million if it fails to meet the revised deadline.
China's President Xi Jinping and his Iranian counterpart Hassan Rouhani enter a new era of cooperation between two countries. In their meeting on Saturday, both countries agreed to expand trade to $600 billion in the next 10 years and bilateral cooperation.
China has emerged a winner against crashing commodity prices and recorded a benefit of $460 billion this year. Out of this windfall, $320 came from cheaper oil prices alone and the remaining $140 billion from other commodities like energy, metal, and agricultural items.
