Here are five things that happened in China this week

Manyika Kangai

China Evergrande ordered to liquidate

A Hong Kong court ordered the liquidation of property giant China Evergrande Group on Monday. Justice Linda Chan decided to liquidate the indebted developer, with more than US$300 billion of total liabilities, after noting Evergrande had been unable to offer a concrete restructuring plan more than two years after defaulting on its offshore debt and following several court hearings. Evergrande chief executive Siu Shawn told Chinese media the company will ensure home-building projects will still be delivered despite the liquidation order, and that the ruling would not affect the operations of Evergrande’s onshore and offshore units.

China’s factory activity improves

China’s factory activity demonstrated improvement last month as businesses reported increased production and maintained an overall optimistic outlook. The Purchasing Managers’ Index (PMI) for China’s manufacturing sector came in at 49.2 in January 2024, up from 49 in December last year, according to data released by the National Bureau of Statistics (NBS) on Wednesday. The figure rebounded after a three-month decline that started in October 2023, indicating an improvement in manufacturing activity. The PMI for December, November and October was 49, 49.4 and 49.5, respectively. A reading above 50 indicates expansion, while a reading below 50 reflects contraction.

China’s state-owned enterprises log revenue growth

China’s state-owned enterprises (SOEs) posted increased revenue last year, according to official data from the Ministry of Finance released on Monday. These SOEs generated 85,73 trillion yuan (about US$12,06 trillion) in operating revenue in 2023, up 3,6 percent from a year earlier. The combined profits of SOEs increased 7,4 percent year-on-year to 4,63 trillion yuan (about US$651 billion) last year. SOEs saw their debt-to-asset ratio reach 64,6 percent as of the end of 2023, up 0,3 percentage points from the previous year. These figures, which exclude financial firms, were collected from SOEs in provincial-level regions and those administered by the central government.

China to support rental housing market

China will implement a new guideline to provide stronger financial support for the rental housing market, according to a guideline released by the People’s Bank of China and the National Administration of Financial Regulation that will take effect on February 5. According to the guideline, there will be more credit available for rental housing development and operation, and better financial services on offer for related businesses. The guideline encourages measures to meet the reasonable financing needs of groups wishing to purchase rental housing in bulk. It also encourages commercial banks to explore financial service models and financial products tailored for enterprises linked to the rental housing sector.

China develops hydrogen combustion aircraft

A Chinese four-seat hydrogen internal combustion aircraft prototype completed its maiden flight on Monday in Shenyang in northeast China’s Liaoning province. The aircraft, when at a flight altitude of 200 metres, has sufficient power and an acceptable level of vibration while producing good performance, according to the test pilot, Xu Xiaoben. The aircraft is 8,2 metres in length and is capable of high-pressure gas hydrogen storage of up to 4,5 kg. The cruising speed of this aircraft is 180 kilometres per hour. In addition, the maximum thermal efficiency of the aircraft’s hydrogen internal combustion engine is more than 43 percent. This is the first independently developed general aviation aircraft in China to be powered by a hydrogen internal combustion engine.

 

*Manyika Kangai is dedicated to helping African businesses and governments realise the full potential of the vast opportunities that China presents. He has over 18 years of experience facilitating and advising on China-Africa trade and investment deals. Feedback: ‪+27743487997/ www.muvambi-sa.co.za