Newsletter By 2022-05-09
【Interview】Corriere della Sera, one of Italy's oldest and most-read newspapers, has recently
interviewed ANBOUND’s founder Kung Chan on the recent speeches of both Ukrainian and Russian foreign ministers published by China’s official state press agency Xinhua. He pointed out in the interview that the war in Ukraine does not align with the Chinese interest, and that China's official position emphasizes its support for peace. He also noted that Ukraine certainly wants to negotiate a ceasefire, their cities are in ruins, their women and children have become refugees wandering all over the world. However, Kyiv will not accept losing its territories as the condition of a ceasefire, because that would mean the Ukrainians’ past sacrifices would become meaningless, said Kung Chan.
>>【Judgement and Predictions】Due to the high infectivity, long incubation period, and low case fatality rate of the Omicron variant, countries have made different choices when faced with the latest development of the COVID-19 pandemic. One way is that most Western and some Asian countries (Singapore, Vietnam, etc.) choose to "coexist" with the virus under the premise of high vaccination rates, medical treatment, and increased immunization rates. The other way is China's "dynamic clearing" which insists on relying on a large number of tests and strict social control measures in responding to and preventing the outbreaks. Why is there a deadlock with the existence of the two parallel worlds in the combat against COVID-19? It is a situation that China needs to avoid in its future development, and in its strategy to deal with the pandemic. This would also be the case for its post-pandemic recovery. ANBOUND scholars discussed that tying to such a circumstance, after all, is not in line with its development concept of a "community with a shared future for mankind".
>>The adverse impacts of the Japanese yen’s depreciation, which puts additional pressure on currencies other than the U.S. dollar, would further negatively affect China's economy and foreign trade. Fundamentally, maintaining the stability of the Chinese renminbi mainly lies in advancing China's domestic economic, trade, financial and international geopolitical relations. The market confidence and expectations brought about by stable economic growth will essentially stabilize China's exchange rate and financial market. Implementing economic stabilization policies is crucial to improving monetary policy and financial market expectations.
>>The Federal Reserve has hinted at hiking interest rates due to several factors. This helps to explain the recent dramatic loss in European and American stock markets, as well as the significant gain in the U.S. Dollar, at least in the near term. Economists at ANBOUND have long warned that the Fed's quick rate hike will surely result in two outcomes: slowed U.S. economic growth and increased capital market volatility. The global financial market has seen a rare major plunge as a result of the Fed's interest rate hike. Rapid policy tightening has caused the current instability in global capital markets, and would push the world’s economy into a crisis.
>>With the continuous disclosure on Chinese economic data and the performance of listed companies in the 1st quarter, the capital market felt chilly contradictions and began to re-price and revalue the problems of industrial structure. The share prices of some state-owned energy enterprises have risen, while a large number of manufacturers and private sectors keep on adjusting their valuations downward, driving the overall market in downtrend. Such structural problems pose a threat to the economic growth, and directly affect the stability of capital market. Although the industrial revenue and profits rebounded significantly in the first quarter, structural problems and contradictions have been more prominent. It is highly demanding for right policy consideration and response. To address those structural issues is also a focus that the country builds its long-term unified market.
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