Briefing: IMF Cuts China Growth Forecast

The International Monetary Fund (IMF) has revised its 2024 growth forecast for China to 4.8% from a previous 5%, citing factors such as weak economic performance, low household and business confidence, and challenges in the real estate sector. This revision does not account for possible fiscal stimulus measures. In contrast, financial institutions like Goldman Sachs and UBS have raised their forecasts for China's 2024 GDP growth, influenced by Beijing's stimulus package [para. 1].

Huawei Technologies Co. Ltd. has advanced its mobile operating system by incorporating a digital yuan service, which allows users to make payments without needing the separate digital yuan app. This integration facilitates the use of the central bank digital currency, enhancing its internationalization and contribution to global payment systems. By the end of June, the digital yuan was reported to have been used in transactions worth approximately $1 trillion [para. 2].

In the UK, the Crown Prosecution Service has commenced civil recovery proceedings linked to a substantial Bitcoin money laundering case involving billions of dollars belonging to Chinese investors. Victims are now able to file compensation claims with the UK’s High Court. The British Metropolitan Police described the case as the largest Bitcoin money laundering case in the nation’s history. However, the civil recovery process is anticipated to be lengthy [para. 3].

Saudi Arabia is launching its first exchange-traded fund (ETF) focused on Hong Kong-listed Chinese stocks, scheduled to debut on October 30. This ETF is a collaboration between CSOP Asset Management Ltd. and Albilad Investment Co., representing a step forward in the financial collaboration between China and Saudi Arabia, which has strengthened in recent years [para. 4].

BYD Co. Ltd., an electric vehicle manufacturer, and smartphone maker Oppo Co. Ltd. announced a partnership aimed at developing technologies to connect mobile devices with vehicles. Their initial offering, the "phone-car connectivity" system, will enable Oppo phones to unlock and control BYD electric vehicles. This partnership illustrates BYD's commitment to enhancing user experiences through advanced smart car technologies and Oppo's aim to expand its business ventures beyond smartphones [para. 5].

Apple Inc.'s CEO, Tim Cook, met with China's Minister of Industry and Information Technology, Jin Zhuanglong, during his Beijing visit. Cook expressed Apple's commitment to increasing investments in China and supporting the development of a high-quality supply chain. Amidst this, Apple has been facing challenges with diminishing market share in China, having fallen out of the top five in smartphone sales in the recent quarter [para. 6].

China has issued its first zero-carbon energy consumption certificates. Henan Hydrogen Energy Co. Ltd. has purchased 4,000 certificates from biomass and waste cogeneration firms. These certificates will help meet carbon footprint and traceability standards, making its products more competitive globally. The IEA has emphasized the role of renewable fuels like biogas and solid biomass in future energy systems [para. 7].

In a significant diplomatic meeting, Chinese President Xi Jinping and Indian Prime Minister Narendra Modi met during the BRICS Summit in Kazan, Russia. This meeting followed an announcement that both countries had reached a resolution regarding their border disputes. The leaders agreed on maintaining long-term perspectives for Sino-Indian relations while committing to further talks to ensure stable relationship development [para. 8].