Country Garden shares jump after Chinese developer strikes debt deal

European stocks hit three-week high as China’s government tries to prop up ailing economy

The share price of the ailing Chinese developer Country Garden has jumped by as much as a fifth after its creditors agreed a delay on debt repayments, offering some respite from the country’s crisis-hit property market.

The company agreed over the weekend to extend the payment dates on a 3.9bn yuan (£430m) private bond, to the relief of investors who had thought it would default on payments due on Saturday. Country Garden will instead have three years to repay the debt, after it won a narrow vote with the backing of 56% of its creditors, Reuters reported.

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China continues coal spree despite climate goals

World’s biggest carbon emitter approving equivalent of two new coal plants a week, analysis shows

China is approving new coal power projects at the equivalent of two plants every week, a rate energy watchdogs say is unsustainable if the country hopes to achieve its energy targets.

The government has pledged to peak emissions by 2030 and reach net zero by 2060, and in 2021 the president, Xi Jinping, promised to stop building coal powered plants.

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Evergrande shares plunge further amid China economy fears

Property developer’s value fell by more than $2bn as stock resumed trading after 17-month suspension

Shares in Evergrande fell a further 13% on Tuesday after more than $2bn was wiped off the Chinese property developer’s market value when it resumed trading for the first time in almost 18 months on Monday.

Evergrande, the world’s most indebted property firm with liabilities of $328bn (£260bn), has lost more than 99% of its share market value over the past three years.

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China cuts key interest rate amid economic slowdown

Central bank reduces one-year loan prime rate but surprises analysts by leaving five-year rate unchanged

China’s central bank has cut one of its key lending rates but left another unchanged, surprising economists who had expected more forceful action to support economic growth amid widespread concerns over its path.

The world’s second-largest economy is in the midst of a slowdown, and has slipped into deflation with prices falling year on year as slowing domestic spending weighs on the country’s post-Covid economic recovery.

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China’s property crisis deepens with developer Country Garden at risk of default

Evergrande has filed for bankruptcy protection and firms covering 40% of Chinese home sales have defaulted

China’s property crisis has deepened with two major developers facing severe financial difficulties that threaten to send shock waves through the country’s economy and beyond.

Evergrande, the poster child for the woes of China’s property sector, filed for chapter 15 bankruptcy protection in New York on Thursday. The provision permits the company to protect its US assets and will allow cross-border bankruptcy proceedings as it undergoes a restructuring.

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China’s struggling property giant Evergrande files for bankruptcy protection in US

The company’s chapter 15 protection will protect its US assets while it attempts a restructuring deal

China’s Evergrande Group, the world’s most heavily indebted property developer and the poster child for the country’s property crisis, has filed for bankruptcy protection in a US court.

The company sought protection under chapter 15 of the US bankruptcy code, which protects its US assets while it attempts a restructuring deal. The code also provides mechanisms for dealing with insolvency cases involving more than one country.

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In previous downturns the world turned to China as an engine of growth – this time that driver may not be there

What might Chinese deflation mean for interest rates, commodity prices and even EV exports outside China?

When Australia’s central bank released its quarterly economic update last week, China’s “uncertain” economic outlook topped a list of domestic worries for Australia.

The International Monetary Fund too singled out China in its latest world economic outlook as among the “downside” tilts to its balance of risks.

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China GDP growth falls short of expectations as sinking property prices hit economy

Data shows the economy grew just 0.8% in the June quarter, down from 2.2% in the first three months of 2023

China’s economy expanded 6.3% in the second quarter from a year ago, falling short of market expectations as export demand remained tepid and sinking property prices sapped consumer confidence.

Compared with a year earlier, China’s GDP in the April-June period was 6.3% larger, the national bureau of statistics said on Monday, quickening from the 4.5% annual growth pace for the first three months of 2023. Economists had forecast growth to accelerate to 7.3%, according to a Reuters survey.

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International Energy Agency warns of higher bills this winter

Fatih Birol says China’s economic recovery combined with harsh winter could pile pressure on gas supplies

The head of the International Energy Agency has said energy prices may spike again this winter, forcing government to subsidise bills – just days after state support for UK households fell away.

Fatih Birol said a rapid improvement in the Chinese economy, coupled with a harsh winter, could put pressure on gas supplies and push up bills for consumers.

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AstraZeneca considers spinning off its China business

UK’s largest stock-market-listed firm weighs up Hong Kong or Shanghai listing to shield it from geopolitical tensions

AstraZeneca is considering spinning off its business in China and listing it in Hong Kong or Shanghai to shield the multinational drugmaker from geopolitical tensions.

Britain’s largest stock-market-listed company has drawn up the plans in attempt to protect its business from the fallout from increasing tensions between China and the US and its allies.

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UK and Europe are falling behind US and China in biotech, says AstraZeneca boss

Pascal Soriot says decline in startups across Europe differs markedly from ‘explosion’ of firms and clinical trials in China

The boss of Britain’s biggest drugmaker has said that the UK and the rest of Europe are falling behind China and the US in the creation of biotech firms and clinical trials of new medicines.

Pascal Soriot, chief executive of AstraZeneca, said that while China had seen an “explosion of biotech companies”, and a “rapid expansion of clinical trials” that puts it ahead of the US, the UK and EU had posted declines.

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China to reopen to foreign tourists for first time since Covid crisis

Authorities will resume issuing all visas after closing borders to international holidaymakers in 2020

China will reopen its borders to foreign tourists for the first time in the three years since the Covid pandemic erupted by allowing all categories of visas to be issued.

The removal of this last cross-border control measure on Wednesday comes after authorities declared victory over the virus last month.

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Xi Jinping handed unprecedented third term as China’s president

Coronation sets up Xi, who has overseen consolidation of power, to become modern China’s longest-serving head of state

Xi Jinping has been handed an unprecedented third term as president, capping an ascent in which he has become China’s most powerful leader in generations.

In a carefully choreographed ceremony in Beijing, Xi held up his right fist and placed his left hand on a red leather copy of China’s constitution. In the oath – beamed live on state television across China – he vowed to “build a prosperous, strong, democratic, civilised, harmonious and great modern socialist country”.

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Confusion surrounds China’s energy policies as GDP and climate goals clash

Wave of permits for coal-fired power plants sparks concern as ambitions for GDP growth and lowering emissions come into conflict

China’s energy policies are fast creating a type of “emissions ambiguity”, as the twin goals of boosting GDP growth and reducing carbon emissions come into conflict.

The uncertainty is whether and when the world’s biggest carbon emitter will start to curb greenhouse gas pollution. The release of the country’s annual statistics communique on Tuesday did not clear things up.

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China’s provinces spent almost £43bn on Covid measures in 2022

Third of provinces yet to publish data as country looks to revive economy after zero-Covid policy ends

Chinese provinces spent more than £42.8bn on tackling Covid-19 in 2022, according to data released by local governments, with the figure expected to rise as the huge cost of the pandemic hits the world’s second-largest economy.

Although national statistics are not yet available, at least 20 of China’s 31 provinces have published figures on how much money they spent on measures to control the pandemic.

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China’s shrinking population: what it means for the rest of the world – expert panel

From climate change to women’s rights, what effect will the demographic time bomb at the heart of China’s economy have?

China has entered a period of “negative population growth”, an important moment in the history of the country. As recently as 2019, the UN projected the population would peak in 2031-32, but despite major government efforts to reverse the trend, China has now begun what is expected to be a long period of population decline.

The ongoing shift in demographics could have a profound effect on everything from how the economy operates to Xi Jinping’s legitimacy. The Guardian spoke to experts about the implications for everything from climate change to the Chinese Communist party.

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China’s economy slows sharply with GDP growth among worst on record

The economy grew 3% in 2022, exceeding some forecasts, but still well below China’s official target for the year

China’s GDP expanded at its slowest pace since the mid-1970s bar the Covid-hit 2020 year, as the world’s second-largest economy struggled under tight pandemic restrictions that were abruptly ditched late in 2022.

The economy grew 3% last year, well shy of the 5.5% pace the government had targeted at the start of the year and the 8.1% recorded for 2021. The actual rate though, was better than the 2.7% predicted by the World Bank earlier this month.

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China to take ‘golden shares’ in tech firms Alibaba and Tencent

Move marks shift in focus by Beijing as it tries to extend influence and keep sector in check

China is to take “golden shares” in two of its biggest tech companies, Alibaba and Tencent, as Beijing extends its influence on the country’s star tech firms and its most powerful and wealthy business people.

Beijing’s move marks a shift away from imposing hefty fines and sanctions in its two-year tech crackdown, which was launched after Alibaba founder, Jack Ma, criticised regulators,

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China’s move to ease Covid travel restrictions lifts hopes for global economy

Analysts says lifting of many rules may soften impact of higher interest rates and unblock supply chains in 2023

China’s decision to ease rules on travel in and out of the country, the world’s second-largest economy, has offered investors hope that it could soften the toll from higher interest rates on global stock markets and unblock supply chains amid a dark outlook for 2023.

Chinese authorities said late on Monday that inbound travellers would not have to quarantine on arrival, from 8 January onward. The announcement marked the latest in a series of steps to reopen the country, which is home to vital global supply chains and 1.4 billion people.

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Covid’s still a big issue for China – and that’s trouble for global economy

The economic outlook for China is not good however its leaders respond to anti-lockdown protests

For much of the world there has been hope for some time that the worst economic shocks from the Covid pandemic are in the rearview mirror. In China, however, there are important reminders that risks to the world economy still remain.

Three years since the virus first spread, protests in several Chinese cities against the Beijing government’s strict zero-Covid policies have reignited concerns in financial markets over the economic costs of the pandemic. Global oil prices have fallen back, while the Chinese yuan and stock markets across Asia have taken a hammering.

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