CNBC’S The China Connection Bleatter: New Begtation, Old Troubles

This report is given using the CNBC China Connection newsletter that gives you an understanding and analysis of what drives the second -largest economy in the world. Every week we study the biggest business stories in China, give up the market steps and help you set up a week ahead. How is what you see? You can subscribe Here.

Among the grim headlines this summer, one stirred So much attention online What on Saturday in a state -owned social media account published a comment on Saturday To get rid of fears.

Concern that a A court ruling that began on September 1 To force the business to buy national insurance for all employees, against the background of frequent talks about reducing payment and ruthless competition.

But in reality, the decree is not new.

“The point is not that the government has changed politics, it is that (many enterprises) did not adhere to politics,” said Wen Biao, CEO of Shenzhen in Qianhe’s technological logistics, in Mandarin’s remarks translated by CNBC.

It is a gray zone that has not been fulfilled, allowing workers to pick up more pay or businesses to spend less. The Chinese “social” insurance program includes health care and pension, which means that cash is blocked for medical activities or pension decades.

The updated attention was fueled by low salary discussions and frequent work of overtime, adding depressive mood.

According to reports, consumers’ moods in the US also deteriorated The previous reading In August, compiled by the University of Michigan. While US consumers are not attracted to the worse because they were on escalation in trading tensions in April, many still expect inflation and unemployment, the report said.

Last week in the US and China remain tensions despite the US and China Armistice extension by mid -November. But this still leaves rates about 55% with most Chinese exports to its largest trading partner.

In Chinese, than expected, export growth has obscured insufficient domestic demand, said Bruce Pang, associate professor at the Chinese University of Hong Kong Business School.

It didn’t take a long time to get these problems.

Only in the last few days data issues for July showed that new bank loans have suddenly fallen on First time in 20 years. Retail sales, industrial and investment figures Missed expectations – emphasizing the still unresolved real estate recess – this Chinese Prime Minister Lee recognized at a government meeting Monday.

Lee called for more efficient measures to resolve the real estate market, stabilize the market expectations and ensure social stability. China’s property and construction sector once accounted for more than a quarter of Chinese GDP and still remains the main engine of domestic wealth.

Local authorities also financially fought after the loss of land sales to developers.

To decide real estate call, Luo Zhichen, Chief Economist of the Yuekai Securities, suggested on Monday the Central Government to create 2 trillion yuan ($ 280 billion) to complete the construction of qualified real estate projects. He also called for greater financial support for local self -government.

Despite the winds, Beijing retained its official growth goal by about 5% a year – this week, Prime Minister Lee.

Pang of Chinese University Hong Kong said the economy is still capable of reaching the goal despite a certain loss of impulse.

According to him, the confidence in the business was worse last year, and now it is just a matter of time to take effect. The task is that the external situation can violate these plans, he noted, noting that any additional incentives depend on the uncertainty around US and China’s tension and a possible reduction in the interest rate in the federal reserve system.

IPO Saga Shein continues. The fast fashion giant is Given the movement Its base back to China from Singapore when she tries to judge Beijing’s approval on his long -awaited IPO, Bloomberg reports on Tuesday.

Tencent has enough AI training chips. That’s what his President Martin Lau said last week after the company reported about AI improvements that helped improve AI Attracting profits from marketing services by 20% In the second quarter.

Chinese investments in electric cars are increasing. For the first time in the industry there is Stacked more in factories abroad What at home, according to a report published on Monday by a consulting firm Rhodium Group.

Hong Kong Hang the Index rose 0.19%, while CSI 300 mainland added 0.99% after China left its key lending rates in August for the third consecutive month, complying with market forecasts.

The mainland landmark has increased by 8%today, LSEG data showed.