Share this page!

Sofia Horta e Costa Profile picture
Twitter logo
Aug 26 • 10 tweets • 4 min read
All of this happened in China this week. A thread. 1/10
Climate emergency. A brutal heatwave and Sichuan's worst drought since 1961 spur power cuts and factory shutdowns. China is using two massive drones to seed rainclouds in the province, which is highly reliant on hydropower. 2/10
bloomberg.com/news/articles/…
More stimulus. China announces 1t yuan of funds for infrastructure projects as part of a 19-point policy package. But borrowers remain cautious. Under pressure to pump more credit into the economy, at least six banks are inflating their loan numbers. 3/10
bloomberg.com/news/articles/…
Targeted support for the property market. Chinese banks lower rates to make mortgages cheaper, the housing ministry offers 200b yuan in special loans to ensure homes are delivered, and some developers start selling onshore bonds with state guarantees. 4/10
bloomberg.com/news/articles/…
Misconduct. A number of real estate executives are being investigated by authorities for suspected law violations. The liquidity crisis in the past ~18 months has revealed a number of legacy governance issues at Chinese property developers. 5/10
bloomberg.com/news/articles/…
Currency defense. The dollar's unstoppable rally pressures the yuan, which weakens to a two-year low. The PBOC takes steps to keep things stable. It's a balancing act: a weaker yuan helps exports but *rapid* depreciation can stoke capital outflows. 6/10
bloomberg.com/news/articles/…
Russia's yuan plans. The Chinese currency is so popular in sanction-hit Russia that Moscow is reviving a plan to sell yuan-denominated debt. Yuan trading has risen more than 40x in Russia since the start of the year, according to Citigroup. 7/10
bloomberg.com/news/articles/…
Progress. Beijing and Washington may be nearing a deal to avoid mass delistings of Chinese ADRs. One option would have US regulators travel to Hong Kong to inspect audit papers, the WSJ reports. Tech stocks surge as investors welcome this possibility. 8/10
wsj.com/articles/deal-…
Supply chains. Apple will begin manufacturing the iPhone 14 in India only two months after the China release, shortening the lag. Separately, Maersk cancels a deal to sell its refrigerated container unit to a Chinese company after the DOJ said no. 9/10
bloomberg.com/news/articles/…
Taiwan tensions. US Senator Marsha Blackburn is in Taipei, the third visit by a US lawmaker to the city this month. China reiterates its opposition to any official US-Taiwan ties, but keeps warships at least 24 nautical miles from the island's coast. 10/10
bloomberg.com/news/articles/…

• • •

Missing some Tweet in this thread? You can try to force a refresh
　

Keep Current with Sofia Horta e Costa

Sofia Horta e Costa Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @SofiaHCBBG

Sofia Horta e Costa Profile picture
Aug 19
All of this happened in China this week. A thread. 1/10
A surprise rate cut. The PBOC's first such reduction since January jolts markets, who read it as a sign the economy is in worse shape than thought. But there are questions over whether cheaper debt will help if China's households aren't borrowing. 2/10
bloomberg.com/news/articles/…
State support. Investors applaud the possibility of government help for developers, with the potential for guarantees on their upcoming onshore debt sales. Homeowners have been the priority of China's property stabilization efforts, not builders. 3/10
bloomberg.com/news/articles/…
Read 10 tweets
Sofia Horta e Costa Profile picture
Aug 12
All of this happened in China this week. A thread. 1/10
China ends military drills in Taiwan, but says such patrols will be regular. Taipei accused the PLA of rehearsing possible invasion scenarios after Pelosi's visit. The House Speaker says the US can't allow China to establish a 'new normal' in Taiwan. 2/10
bloomberg.com/news/articles/…
Baltic countries abandon the 16+1. The eastern European initiative to cooperate with China once threatened to divide the EU in its ties with Beijing. Relations will still be pursued bilaterally, Latvia and Estonia say. 3/10
bloomberg.com/news/articles/…
Read 10 tweets
Sofia Horta e Costa Profile picture
Aug 5
All of this happened in China this week. A thread. 1/10
Missiles over Taiwan. China protests Pelosi's Taipei visit with a series of military activities near the island. The exercises - Beijing’s most provocative since at least 1995 - show China is more assertive in its approach to Taiwan. 2/10
bloomberg.com/news/articles/…
Pressure on Xi. China's measures in reaction to Pelosi's visit fell short of expectations set by some nationalist commentators. China had warned repeatedly that the US would pay a heavy price. 3/10
bloomberg.com/news/articles/…
Read 10 tweets
Sofia Horta e Costa Profile picture
Jul 29
All of this happened in China this week. A thread. 1/10
Taiwan tensions. Presidents Biden and Xi speak for a fifth time in what was described as a “candid” conversation. Xi tells Biden it's China's will to safeguard its “national sovereignty and territorial integrity” over Taiwan. 2/10
bloomberg.com/news/articles/…
Alibaba's homecoming plan. The e-commerce giant is switching its primary listing to HK from New York - a template for the 200 or so Chinese companies listed in the US. There's an initial stock-market excitement around the plan. 3/10
bloomberg.com/news/articles/…
Read 10 tweets
Sofia Horta e Costa Profile picture
Jul 22
All of this happened in China this week. A thread. 1/10
Payment boycotts spread across the property market. Some suppliers refuse to make good on bank loans until real estate developers pay them. China considers a mortgage grace period for homebuyers. Henan sets up a property bailout fund. 2/10
bloomberg.com/news/articles/…
What about banks? They'd forfeit $4.6 billion of interest income if China gives homebuyers a temporary mortgage-payment holiday, Citi says. Separately, authorities say they'll repay more victims of China's biggest-ever bank scam. 3/10
bloomberg.com/news/articles/…
Read 10 tweets
Sofia Horta e Costa Profile picture
Jul 15
All of this happened in China this week. A thread. 1/10
Mortgage payment showdown. China's property market - an industry that accounts for about a quarter of the world’s second-largest economy - is taking a very rapid turn for the worse. 2/10
bloomberg.com/news/articles/…
Markets sink on contagion fears. Chinese bank stocks suffer their worst week since 2018. Some investment-grade property bonds trade at all-time lows. Iron ore futures drop almost 8% in a single day. 3/10
bloomberg.com/news/articles/…
Read 10 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!

Ethereum

0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy

Bitcoin

3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!

:(