Issue 349 - 14.08.2023
21.11.2023

China’s finance and investments in the Belt and Road initiative (BRI) updated

10 years after the announcement of the Belt and Road Initiative (BRI), cumulative BRI engagement breached the USD 1 trillion mark (USD1.016 trillion), with about USD596 in construction contracts, and USD420 in non-financial investments.

China’s energy related engagement in the first half of 2023 were the greenest in any 6-month period since the BRI’s inception in 2013.

BRI finance and investments is picking up in the first half of 2023 with about 103 deals worth USD43.3 billion compared to about USD35 billion in the first half of 2022.

Investments as a share of BRI engagement reached record levels at 61% – the first time that it constitutes more than 50% of total BRI engagement. A growth area of strategic importance is metals and mining through Chinese investment for ownership. Engagement in the sector has grown by 131% compared to the first half of 2022. The minerals and metals are particularly relevant to the green transition (e.g., lithium) and batteries for electric vehicles.

Major growth countries of Chinese engagement were Bolivia, Namibia, Eritrea, and Tanzania – making Sub-Saharan Africa the fastest growing area of BRI engagement. 26 countries saw a 100% drop in BRI engagement, including Turkey, Poland and Kenya; Russia continued to see no public engagement from China;

BRI investments in the first half of 2023 were for the second time after 2022 dominated by private sector enterprises, including Huayao Cobalt and CATL, whileconstruction contracts were dominated by state-owned enterprises (SOEs).

In global comparison, global FDI into emerging economies developed similar toChina’s BRI engagement – with a mixed bag of growth and decline. For the rest of 2023, further rebound of Chinese BRI engagement is possible with a strong focus on BRI country partnerships in renewable energy and related technologies. Potential future engagements can be expected in six project types: manufacturing in new technologies (e.g., batteries), renewable energy, trade-enabling infrastructure (including pipelines, roads), ICT (e.g., data centers), resource-backed deals (e.g., mining, oil, gas), high visibility or strategic projects (e.g., railway).

Cumulative BRI engagement in the 10 years since the announcement of the BRI in 2013 breached the USD1 trillion mark to reach USD1.014 trillion, about USD596 in construction contracts, and USD418 in non-financial investments.

Preliminary data on Chinese engagement through financial investments and contractual cooperation for the first half of 2023 in the 148 countries of the Belt and Road Initiative show about 102 deals worth USD43.3 billion. This equals to about 60% of China’s BRI engagement in all of 2022 (USD72.6 billion).

Of this engagement, about USD24.1 billion through investment and USD16.3 billion through construction contracts (partly financed by Chinese loans). China’s overall engagement shows a steady development since 2020 from the onset of COVID-19.

The share of Chinese engagement in the BRI through investments compared to construction has seen its highest levels in the first half of 2023: investments reached about 59% of BRI engagement compared to 29% in 2021.

2023 is the first time that more than 50% of the BRI engagement is through investments where Chinese investors take equity stakes with higher risks. This compares to construction contracts that are typically financed through loans provided by Chinese financial institutions and/or contractors with the project often receiving guarantees through the host country’s government institutions.

The average deal size for investments has decreased from about USD617 million in 2022 to USD392 million in the first half of 2023. Compared to the peak in 2018, the investment deal size is 48% smaller.

For construction projects, the deal size in the first half of 2023 was the lowest since the BRI was announced in 2013, with about USD327 million compared to USD338 million in­­­­­­­­­­ 2022. Compared to the peak in 2017, this is a 35% decrease. This tendency is likely in line with the ambition to have “small or beautiful projects” in the BRI propagated through official channels. Another reason is that China adjusted its risk management strategies to adjust for BRI country risks that are more pronounced and challenging in large scale projects with more social, environmental and governance (ESG) requirements and issues.

Chinese BRI engagement was not evenly distributed among all regions. BRI countries in Sub-Saharan countries saw a 130% increase in Chinese investments and 69% increase in construction contracts. The region became dominant for construction engagement and the second most important target region for BRI investments (after East Asia).

Middle Eastern countries continued to be a major recipient of Chinese engagement, receiving USD8.1 billion in total engagement, yet significantly less than the USD12.3 billion in the first 6 months of 2022.

East Asian BRI countries, meanwhile, expanded cooperation with China from USD8.84 billion to USD13.2 billion in the first 6 months of 2022 and 2023, respectively. Interestingly, South American BRI countries saw no construction engagement in the first 6 months of 2023, but significant growth (+227%) in investments, receiving overall the highest level of Chinese engagement in the region since 2018.

China’s financing and investment spread across 45 BRI countries in 2023, with 24 countries receiving investments and 29 with construction engagement.

The country with the highest construction volume in the first half of 2023 was Saudi Arabia, with about USD3.8 billion, followed by Tanzania (about USD2.8 billion) and UAE (USD1.2 billion).

Regarding BRI investments, Indonesia was the single largest recipient with about USD5.6 billion in investments, followed by Peru (USD2.9 billion) and Saudi Arabia (about USD 1.6 billion).

26 countries saw a 100% drop of BRI engagement compared to 2022, including Turkey, Poland, and Kenya. China’s engagement in Pakistan for the China Pakistan Economic Corridor (CPEC) dropped by about 74%. The countries with the largest growth of BRI engagement were Bolivia (+820 %), Namibia (+457%), Eritrea (+359%), Tanzania (+347%), and Cambodia (+230%).

The focus of China’s overseas BRI engagement continued to be in infrastructure, particularly in energy (36%) and transport (28%), expanding these sectors’ significance from a combined value of 57% in 2022.

In the first 6 months of 2023, particularly the agriculture (+271%) and real estate (+269%) grew compared to the first half of 2022.  

Technology saw a significant drop, compared to the announcement of the USD7.6 billion investment by China’s largest battery producer CATL battery plant in Hungary in 2022.

Some noteworthy engagements include manufacturing facilities, such as two automotive production capacity in Serbia through Minal Europe Green Material and Jiangsu Liango Precision, as well as manufacturing of chemical materials (e.g., chlorine and derivatives) in Saudi Arabia

Only one manufacturing plant related to renewable energy technology could be found: the Goldwind agreement for the implementation of a wind turbine industrial unit worth around USD36 million, which will generate about 1,100 direct and indirect jobs.

When looking at China’s engagement strategy in these sectors distinguished by construction and investment, it becomes clear that investment with equity shares and thus higher risk within the Chinese organizations becomes an increasingly important strategy in all strategic sectors (energy, transport, metals & mining).

An important growth area of strategic importance is China’s engagement in metals and mining. Engagement in the sector has grown by 131% compared to the first half of 2022. The minerals and metals are particularly relevant to the green transition (e.g., lithium) and batteries for electric vehicles. Engagement has been strong in African and Latin American countries. China already holds significant shares of global mining sources (e.g., over 80% of global graphite resources), and even more control in material processing (where across lithium, nickel, cobalt and graphite, China owns more than 50% of global capacity).   Examples include significant expansion of lithium and copper mining (both mines and processing), for example within the last 6 months through Hainan Mining’s acquisition of Kodal Minerals part of a lithium mine in Mali, a copper processing plant agreement in Saudi Arabia, and a commissioning of a lithium processing plant in Zimbabwe.

China’s energy related engagement in the first half of 2023 were the greenest in any 6-month period since the BRI’s inception in 2013. In the first 6 months of 2023, about 41% of energy engagement went into solar and wind, plus an additional 14% into hydropower.

Chinese engagement related to the energy sector constitutes the largest share of China’s BRI engagement. In the first half of 2023, total engagement in the energy sector reached USD12.3 billion – which is on par with the first half year of 2022. However, compared to e.g., 2019, when it reached about USD20 billion in the first six months, the engagement in energy is down by 40%. An important reason for this green performance in 2023 is a drop in gas- and oil related projects that dominated in 2022 and 2021, respectively.

Following China’s announcement in September 2021 to not to build new coal fired power plants, select new coal-fired power projects seem to progress.

While we reported last year about the 1.5 GW of new coal-fired power plants announced in 2022 in Indonesia, the Pakistan government approved a 300 MW of coal fired power in Gwadar, Pakistan in January 2023 to be constructed by China. While Pakistan had announced in December 2020 to not build new coal-fired power plants, various sources report that China was interested in providing financial and technical support for the project – including the design that requires import of coal (rather than using possibly more affordable domestic coal in Pakistan).  However, no financial closing has been announced, which is why this project is not included in the 2023 H1 dataset.

Oil and gas engagement fell to USD3.8 billion (45% of Chinese overseas energy engagement), USD1.4 billion through investment, and USD2.4 billion in construction contracts.

Rumors of an 8 GW gas power plant in Yakutia, Russian Far East, with China’s Power China from June 2023 have not yet been confirmed.

Oil-related investments reached their lowest level in the history of the BRI as they dropped to zero after several higher profile projects in the previous years inside and outside the BRI (e.g., China’s CNOOC engaged in a USD1.9 billion production sharing deal with Petrobras to explore Brazil’s Buzlos field).

At the same time, BRI partners invested in China to support oil development, such as Aramco’s investment in a petrochemical complex in Panjin City, Liaoling Province.

China’s total engagement in green energy (solar and wind) and hydropower amounted to about USD4.8 billion in the first half of 2023. This compares to USD3.8 billion in the first half of 2022.

Looking at investment only, Chinese green energy and hydropower investment decreased to USD990 million in the first half of 2023 from USD1.3 billion in the first half of 2022. Meanwhile, construction projects related to green energy (including hydropower) increased from 1.6 billion in the first half 2022 to USD2.6 billion in the first half of 2023.

Analyzing Chinese energy engagement in different BRI countries, we find that, similar to 2022, Saudi Arabia was the country that received the most energy engagement in the first half of 2023 (USD1.5 billion), followed by Qatar (USD1.4 billion). Both countries received all of their engagement in fossil fuels.

Overall, the most important partners for China’s BRI energy engagement since the BRI’s initiation in 2013 remains Pakistan, which has received close to USD30 billion through investment and construction contracts (most of which in hydropower and coal). Pakistan is followed by Russia and Saudi Arabia. An interesting case for China’s energy investment is Zimbabwe: after a cancelled coal-fired power plant in 2021, Zimbabwe saw strong engagement in green energy through an agreement on a 1GW  floating solar station.

Transport-related engagement is key to providing the means to trade between China and the BRI countries – where trade is a core component of the BRI. Accordingly, China has invested in and constructed projects in road, rail, aviation, shipping, and logistics across the world.

No aviation related contracts were announced in the first half of 2023. Total rail engagement was worth USD5.6 billion (all through construction contracts).

A particularly interesting case is the USD2.2-billion contract with a Chinese company to build the final section of a railway line aimed at linking the Tanzania’s main port with its neighbours as part of a broader regional, 2,561-kilometre line that aims to link the Indian Ocean port of Dar es Salaam to Mwanza on Lake Victoria, with eventual spurs to Burundi, Democratic Republic of Congo (DRC), Rwanda and Uganda.

Other noteworthy projects include an agreement on the tram project in Colombia.

China continues to engage in road construction projects across many countries. Examples include a toll road in Cambodia worth about USD1.6 billion. Some shipping and port-related projects investments were announced in the first half of 2023, such as an agreement with Saudi Arabia to support Aramco’s corporations shipping projects.

Among the major players for BRI investments in the first half of 2023 were – contrary to most years before – not exclusively Chinese SOEs, but private enterprises.

For investment projects, Zhejiang Huazou Cobalt led ahead of battery producer CATL. The Chinese companies most prominently featured in construction projects in the BRI in 2022 was China Railway Construction, followed by Power Construction Corporation (PowerChina), and China National Petroleum Corp (CNPC). This is in line with previous years’ trends.

After foreign direct investment (FDI) rebound to pre-pandemic levels in 2021 and saw further growth in the first quarter of 2022, a multitude of crises on the global stage (e.g., debt pressure, invasion of Ukraine) led to a slower growth of FDI in the following quarters resulting in a 12% decline of global FDI in 2022.

According to UNCTAD, project finance and mergers and acquisitions (M&A) “were most affected by deteriorating financing conditions, rising interest rates, and growing uncertainty in financial markets”. International project finance values shrunk by 30% in 2022.

Yet, effects of lower FDI were most prevalent in developed countries, while ASEAN economies saw a 21% increase in greenfield project announcements.  Similarly, Brazil saw an increase of 30% of greenfield announcements. Another winner was India, which attracted as many R&D projects as the US, UK, and China combined. It also outpaced China to become the largest destination and source of Greenfield FDI in Asia and the Pacific in 2022. India received USD60 billion in inward greenfield FDI and invested USD35 billion in other countries.

Regarding greenfield project numbers, developing countries saw an increase by 26%, particularly countries in Africa, while international project finance deals were down by 6%. Similarly, the value of cross-border M&A sales were down by 6% in developing countries, particularly in Central Asia, South-East Asia and South Asia.

A particular focus of global FDI in 2022 was in semiconductors (e.g., a USD28 billion investment by Taiwan Semiconductor Manufacturing (TMSC) in the United States) and in renewable energy (e.g., a USD13 billion investment by India’s ACME Group in Egypt). Europe was the main source and destination of FDI for wind energy projects, with USD55 billion pledged by Western European wind developers, of which USD23 billion went to places like North America, Latin America, Africa, and Asia Pacific.

Another focus of FDI, however, was in oil & gas extraction, which by August 2022 had reached USD42.15 billion – the same as the cumulative FDI between 2018 and 2021. 

According to OECD, cross-border M&A and FDI in 2023 is facing a “gloomy outlook”, also in emerging markets and developing economies. Reasons for challenges include high inflation and interest rates (depressing financing opportunities in projects and M&A), as well as geopolitical tensions and soaring protectionism.

However, some optimism has returned with inflation levels sinking and overall economic activity showing stronger resilience than expected.

Countries that are expected to perform well and attract FDI include those with relevant natural resources to finance the green transition (e.g., lithium), as well as those with relevant markets or technical capacity to warrant a supply chain localization (e.g., for semiconductor manufacturing).  African countries would perform very differently among each other, depending on their governance, debt levels, and opportunities (e.g., as a market or as a source for commodities). Developing Asian countries are expected to grow by 4.9% in 2023, possibly also due to shifts from investments into China into neighboring economies, particularly from those companies that depend on Western markets.  

With much needed green energy transition and political willingness and direction, also FDI in renewable energies should further accelerate.

Chinese finance and investments into the Belt and Road Initiative countries in the first half of 2023 have remained steady and partly increased.

For the rest of 2023, with China’s COVID-related lockdowns fully lifted, a broader recovery of BRI investments and construction contracts seems possible. On the one hand, there is clear need for investments to boost growth in the post-COVID19 world supported by global financial institutions, including developing finance institutions (such as the World Bank, Asian Development Bank, AIIB), from which Chinese contractors can benefit. On the other hand, with travel restrictions lifted, Chinese developers are able to travel freely to negotiate, plan, and implement new projects.

We do not expect Chinese BRI engagement to reach levels as in 2018-2019. This is also a recognition of the Chinese Ministry of Commerce (MOFCOM), which put a break on fast overseas expansion in its 14th Five-Year Plan (FYP) for 2021 to 2025: it plans for China to invest USD550 billion (that includes non-BRI countries), down 25% from USD740 billion in the 2016-2020 period. Also, Chinese contracting volume is planned to decrease from USD800 billion in the previous FYP to USD700 billion in this FYP. However, with relatively low levels of BRI engagement in 2021 and 2022, more acceleration should be possible.

In line with our previous predictions, this should mean that deal number is increasing. As we have been seeing in 2021 and early 2022, many smaller projects have been financed even in more difficult economic circumstances and often provide both the means to boost sustainable economic development, provide employment and are better able to protect the environment.

At the same time, we see two types of large projects to continue: strategic engagements (such as in strategic transport infrastructure in the region), and resource-backed deals (such as in mining, oil, gas).

To move the BRI investments forward, we expand our recommendations from the previous reports:

Investors in BRI projects within China and outside China should focus on smaller projects that are easier to finance and faster to implement. Particularly in infrastructure and energy investments, scalable solar and wind investments seem viable, as long as local conditions provide the relevant grids to handle renewable energy supply.

With decreasing energy cost for renewable energy, we also see an opportunity to invest in early phase-out of existing older coal projects, which would be both economically and environmentally relevant.

Debt is a major concern for future growth in many BRI countries. As we found in our in-depth analysis of debt in BRI countries, China has a unique opportunity to support BRI countries in dealing with their debt both bilaterally and multilaterally. Dealing with the debt issue is crucial for providing BRI countries with the necessary fiscal space for future investments.

While debt-for-resource or debt-for-equity swaps might seem beneficial for China in the short-term to reduce the debt burden in the BRI countries, these swaps tend to undermine future domestic growth opportunities for BRI countries. Rather, Chinese relevant stakeholders together with international partners through multilateral frameworks should support green recovery by swapping part of the debt for nature and providing necessary frameworks to increase transparency and accountability of the use of funds.

Furthermore, sustainable debt instruments could be applied to raise more funds, e.g., through nature performance bonds.

Tripartite cooperation with international financial and implementation partners can support BRI projects through better access to financial resources, risk sharing and knowledge sharing. Particularly non-SOEs that often have a higher burden of accessing investments from Chinese large financial institutions could benefit through broader access to finance, as witnessed for example in the Zhanatas wind farm in Kazakhstan, co-financed by EBRD, AIIB, GCF and ICBC, while it was build and is operated by China International power Holding. Also, Chinese financial institutions could benefit to de-risk project finance by broaden their international cooperation. A report “China Third-Party Market Cooperation for Infrastructure Finance Financing Mechanism Handbook” had been released in September 2021 to accelerate tri-partite project finance.

In addition, with European Union (EU) launching its “Global Gateway” and the US pushing its “Build Back Better World” (B3W) initiative, competition for the BRI is increasing. However, if cooperation for project finance and development in emerging markets is the goal, Chinese investors and developers can accelerate their cooperation with both public and private financial institutions from various economies, particularly if they manage to share standards.

In July 2021, the Ministry of Commerce (MOFCOM), together with the Ministry of Ecology and Environment, issued the Guidelines for Greening Overseas Investment and Cooperation and in January 2022, the Guidelines for Ecological Environmental Protection of Foreign Investment Cooperation and Construction Projects”[5]. Within these Guideline, Chinese developers are encouraged to adhere to international or Chinese environmental standards, particularly in countries whose domestic environmental standards and governance does not meet international standards.

This is a formalization of a number of previous Guidances, including the “Green Development Guidance for BRI Projects Baseline Study” and the “Application Guide for Enterprises and Financial Institutions” backed by various relevant Chinese ministries published by the BRI Green Development Coalition (BRIGC) in December 2020 and October 2021 respectively. These guidances calls for Chinese overseas investors to apply independent environmental impact assessments (EIA) and strict environmental and social risk management (ESMS) to ensure projects and investments are minimizing environmental harm and maximizing environmental benefits. Also, the Green Investment Principles (GIP) integrate sustainability into corporate governance, requiring boards to understand environmental, social and governance risks, as well as disclosing environmental information.

By applying international standards, Chinese financial institutions can more easily raise capital on the global capital markets, accelerate co-financing with international partners and take responsibility to fulfill the goal of building a “Green Belt and Road”.

Several investments in the Belt and Road Initiative have had to be stopped, mothballed or cancelled due to financial (e.g., difficulties in financing or servicing debt) and operational reasons (e.g. due to travel restrictions or problems in supply chains). According to our study, over 50% of announced coal fired power plants have been mothballed. In order to avoid reputational, social and environmental risks arising from stopped, mothballed or cancelled projects, plans should be developed and implemented by financial institutions including insurance companies, developers, local governments and relevant Chinese authorities that compensate any losses to workers and companies up to a specific extent, and that ensure that nature around mothballed and particularly stopped projects can be remediated. This also helps avoid having skeleton constructions serve as a reminder of unfinished projects.

By Christoph Nedopil on August 1 2023 for the Green Finance and Development Centre

China, Pacific

21.11.2023

China's trade with BRI economies rises 7.4% in January-July

In the first seven months of this year, China's trade with countries along the China-proposed Belt and Road Initiative (BRI) reached 8.06 trillion yuan ($1.12 trillion), up 7.4 percent year-on-year, data from the General Administration of Customs (GAC) showed on Tuesday, Global Times reports.

As the BRI embraces...

In the first seven months of this year, China's trade with countries along the China-proposed Belt and Road Initiative (BRI) reached 8.06 trillion yuan ($1.12 trillion), up 7.4 percent year-on-year, data from the General Administration of Customs (GAC) showed on Tuesday, Global Times reports.

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Chinese imports and exports up 6.7% in first seven months

Exports from China slumped 14.5% yoy to a five-month low of USD 281.76 billion in July 2023, worse than forecasts of a 12.5% fall. Exports to the US slumped by 23.12% from a year earlier, while those to the ASEAN countries, China's largest trade partner, and the EU plunged by...

Exports from China slumped 14.5% yoy to a five-month low of USD 281.76 billion in July 2023, worse than forecasts of a 12.5% fall. Exports to the US slumped by 23.12% from a year earlier, while those to the ASEAN countries, China's largest trade partner, and the EU plunged by...

21.11.2023

China's CPI registers negative growth in July, first time in more than two years

The Ministry of Agriculture and Rural Affairs said pork prices in the second week of March have declined for seven consecutive weeks. Photo: cnsphoto

China's consumer price index (CPI), a main gauge of inflation, registered negative year-on-year growth in July for the first time in more than two years, which was...

The Ministry of Agriculture and Rural Affairs said pork prices in the second week of March have declined for seven consecutive weeks. Photo: cnsphoto

China's consumer price index (CPI), a main gauge of inflation, registered negative year-on-year growth in July for the first time in more than two years, which was...

21.11.2023

Global financial institutions increasingly upbeat on Chinese market

A growing number of global financial institutions have in recent days increased or plan to increase their holdings of Chinese assets, as they express confidence in the recovery of the world's second-largest economy amid robust support measures, while other major economies, particularly the US, face rising economic risks, pushing investors...

A growing number of global financial institutions have in recent days increased or plan to increase their holdings of Chinese assets, as they express confidence in the recovery of the world's second-largest economy amid robust support measures, while other major economies, particularly the US, face rising economic risks, pushing investors...

21.11.2023

China's FX reserves rise in July for 2nd month

China's foreign exchange reserves rose for a second month in July, while gold reserves increased for a ninth month in a row, official data showed on Monday. 

The continued growth of China's gold and foreign exchange reserves reflects Chinese economy's resilience and ability to withstand risks, analysts said. 

Amid the complex and...

China's foreign exchange reserves rose for a second month in July, while gold reserves increased for a ninth month in a row, official data showed on Monday. 

The continued growth of China's gold and foreign exchange reserves reflects Chinese economy's resilience and ability to withstand risks, analysts said. 

Amid the complex and...

21.11.2023

China's machinery sector records resilient growth

China's machinery sector recorded a year-on-year added value growth of 9.7 percent in the first half of the year, showing the resilience of the nation's machinery industry, with equipment and automotive manufacturing driving the growth, a new report said.

In the first six months, the growth rate of the machinery sector,...

China's machinery sector recorded a year-on-year added value growth of 9.7 percent in the first half of the year, showing the resilience of the nation's machinery industry, with equipment and automotive manufacturing driving the growth, a new report said.

In the first six months, the growth rate of the machinery sector,...

21.11.2023

Yuan regains strength following long-lasting slump

China's yuan bounced from a three-week low against the dollar on Wednesday, as a firmer-than-expected official midpoint rate offset weakness from disappointing inflation data, while state banks also lent support.

Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate  around which the yuan is allowed...

China's yuan bounced from a three-week low against the dollar on Wednesday, as a firmer-than-expected official midpoint rate offset weakness from disappointing inflation data, while state banks also lent support.

Prior to the market opening, the People's Bank of China (PBOC) set the midpoint rate  around which the yuan is allowed...

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China stocks fall as economy slips into deflation

China A-shares extended losses on Wednesday as consumer prices fell into deflation, with markets looking forward to more stimulus policies to revive spending. Hong Kong stocks closed higher.

China's blue-chip CSI 300 Index dipped 0.31%, and the Shanghai Composite Index fell 0.49%.

Hong Kong's Hang Seng Index edged up 0.32% and the...

China A-shares extended losses on Wednesday as consumer prices fell into deflation, with markets looking forward to more stimulus policies to revive spending. Hong Kong stocks closed higher.

China's blue-chip CSI 300 Index dipped 0.31%, and the Shanghai Composite Index fell 0.49%.

Hong Kong's Hang Seng Index edged up 0.32% and the...

21.11.2023

China's CPI logs monthly increase as consumer demand recovers

China's consumer price index (CPI), a main gauge of inflation, registered a monthly increase of 0.2 percent in July thanks to continued recovery of consumer demand, the National Bureau of Statistics (NBS) said Wednesday.

In breakdown, food prices declined 1 percent month on month, but the prices of non-food items rose...

China's consumer price index (CPI), a main gauge of inflation, registered a monthly increase of 0.2 percent in July thanks to continued recovery of consumer demand, the National Bureau of Statistics (NBS) said Wednesday.

In breakdown, food prices declined 1 percent month on month, but the prices of non-food items rose...

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China's July economic data trusted to highlight improvement, challenges

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21.11.2023

China's foreign trade to sustain growth with resilience, potential

China's foreign trade is expected to maintain steady growth despite a challenging external environment, as the country continues to strengthen endogenous impetus and expand multilateral economic and trade relations, experts have said.

China's imports and exports expanded 0.4 percent year on year to total 23.55 trillion yuan (about 3.29 trillion U.S....

China's foreign trade is expected to maintain steady growth despite a challenging external environment, as the country continues to strengthen endogenous impetus and expand multilateral economic and trade relations, experts have said.

China's imports and exports expanded 0.4 percent year on year to total 23.55 trillion yuan (about 3.29 trillion U.S....

21.11.2023

China's State Council issues 24-point guideline to streamline foreign investment

China's State Council, the cabinet, on Sunday issued a 24-point guideline covering six areas, which is intended to improve the climate for foreign investment and attract more funds, the latest move to stabilize second-half economic growth.

The guideline pledged to continue China's high-quality opening-up by using the advantages of the nation's...

China's State Council, the cabinet, on Sunday issued a 24-point guideline covering six areas, which is intended to improve the climate for foreign investment and attract more funds, the latest move to stabilize second-half economic growth.

The guideline pledged to continue China's high-quality opening-up by using the advantages of the nation's...

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China's status as world factory remains solid amid changes in global industrial chain

In a serious move to thwart cooperation in global industrial chains, US President Joe Biden signed an executive order on Wednesday to block and restrict US high-tech investment going toward China. While the US intentionally accuses China of "disrupting the security of the global supply chain," it is Washington that...

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21.11.2023

Private Chinese firms achieve good performance in Q2

A number of private Chinese firms including the country's largest chipmaker Semiconductor Manufacturing International Corporation (SMIC) released financial results in the second quarter of the year on Thursday and Friday, reporting revenue increases and good expectations for the rest of the year.

Observers said that China has always provided strong support...

A number of private Chinese firms including the country's largest chipmaker Semiconductor Manufacturing International Corporation (SMIC) released financial results in the second quarter of the year on Thursday and Friday, reporting revenue increases and good expectations for the rest of the year.

Observers said that China has always provided strong support...

21.11.2023

China confirms 592 tons of gold reserves in country’s largest gold mine

China has completed the detection of the country's largest gold mine, Xiling gold mine in Laizhou, East China's Shandong Province, and confirmed 592.19 tons of gold reserves with potential economic value of over 200 billion yuan ($27.74 billion), the China Gold Association (CGA) said on Thursday.

Li Hang, a representative from...

China has completed the detection of the country's largest gold mine, Xiling gold mine in Laizhou, East China's Shandong Province, and confirmed 592.19 tons of gold reserves with potential economic value of over 200 billion yuan ($27.74 billion), the China Gold Association (CGA) said on Thursday.

Li Hang, a representative from...

21.11.2023

China's railway sector investment up 7% in first seven months: CSRG

The Fuxing bullet trains with a designed speed of 160 km per hour officially started operation on the 829 km-long Xining-Golmud section of the Qinghai-Tibet Railway on Saturday.

Fixed-asset investment in China's railway sector grew 7 percent year-on-year during the first seven months this year to reach 371.3 billion yuan ($51.6...

The Fuxing bullet trains with a designed speed of 160 km per hour officially started operation on the 829 km-long Xining-Golmud section of the Qinghai-Tibet Railway on Saturday.

Fixed-asset investment in China's railway sector grew 7 percent year-on-year during the first seven months this year to reach 371.3 billion yuan ($51.6...

21.11.2023

Struggling Chinese property sector keeps yuan subdued

China's yuan weakened to a one-month low on Friday though trading was confined to a tight range, as the deteriorating health of the country's debt-laden property developers deepened concerns about the overall economic recovery.

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China's yuan weakened to a one-month low on Friday though trading was confined to a tight range, as the deteriorating health of the country's debt-laden property developers deepened concerns about the overall economic recovery.

The sector, which accounted for a quarter of China's economy, sank deeper into trouble this week after Country Garden...

21.11.2023

Chinese yuan strengthens in July

China's yuan strengthened against a basket of currencies in July, according to the China Foreign Exchange Trade System (CFETS).

At the end of last month, the CFETS yuan exchange rate composite index, which measures the yuan's strength relative to a basket of currencies, edged up 0.07 percent from the end of...

China's yuan strengthened against a basket of currencies in July, according to the China Foreign Exchange Trade System (CFETS).

At the end of last month, the CFETS yuan exchange rate composite index, which measures the yuan's strength relative to a basket of currencies, edged up 0.07 percent from the end of...

21.11.2023

Negative look on China economy presses stock markets

Chinese stocks fell on Friday, as investors were disappointed by authorities' latest stimulus measures, amid fresh data showing that the post-pandemic recovery is continuing to lose steam.

China's blue-chip CSI 300 Index dropped 1.4% by the lunch break, while the Shanghai Composite Index lost 1.2%. Hong Kong's Hang Seng Index fell...

Chinese stocks fell on Friday, as investors were disappointed by authorities' latest stimulus measures, amid fresh data showing that the post-pandemic recovery is continuing to lose steam.

China's blue-chip CSI 300 Index dropped 1.4% by the lunch break, while the Shanghai Composite Index lost 1.2%. Hong Kong's Hang Seng Index fell...

21.11.2023

Lock-up shares worth 146.3 bln yuan to become tradable in China

Lock-up shares worth around 146.3 billion yuan (about 20.44 billion U.S. dollars) will become eligible for trade on China's bourses next week.

From August 14 to August 18, about 8.05 billion shares will become tradable on the Shanghai and Shenzhen bourses, according to data from financial information provider Wind.

Under China's stock...

Lock-up shares worth around 146.3 billion yuan (about 20.44 billion U.S. dollars) will become eligible for trade on China's bourses next week.

From August 14 to August 18, about 8.05 billion shares will become tradable on the Shanghai and Shenzhen bourses, according to data from financial information provider Wind.

Under China's stock...

Eurasia

21.11.2023

Russian trade balance with China slips into red zone

In July, Russia's trade balance with China became negative, which means that imports to Russia exceeded exports. Thus, the demand for currency, which is formed by importers, increased, while the supply, which comes from exporters, decreased. The main reason is the rise in oil prices and the subsequent decline in...

In July, Russia's trade balance with China became negative, which means that imports to Russia exceeded exports. Thus, the demand for currency, which is formed by importers, increased, while the supply, which comes from exporters, decreased. The main reason is the rise in oil prices and the subsequent decline in...

21.11.2023

Chinese enterprises jump in where scared western firms due to anti-Russia sanctions leave

Major European companies have incurred at least €100 billion ($110 billion) in direct losses from their Russia operations as a result of Western sanctions, the Financial Times reported on Sunday. 

The newspaper’s survey of 600 European groups’ annual reports and 2023 financial statements showed that 176 firms recorded asset impairments, foreign...

Major European companies have incurred at least €100 billion ($110 billion) in direct losses from their Russia operations as a result of Western sanctions, the Financial Times reported on Sunday. 

The newspaper’s survey of 600 European groups’ annual reports and 2023 financial statements showed that 176 firms recorded asset impairments, foreign...

21.11.2023

China dubs Russia trustworthy and reliable good friend

China's top diplomat Wang Yi assured Russian Foreign Minister Sergei Lavrov that China will maintain a fair position on the Ukraine crisis, and that China and Russia are "trustworthy and reliable good friends" in a phone call late Monday. In return, Lavrov said Russia appreciates and welcomes China's constructive role...

China's top diplomat Wang Yi assured Russian Foreign Minister Sergei Lavrov that China will maintain a fair position on the Ukraine crisis, and that China and Russia are "trustworthy and reliable good friends" in a phone call late Monday. In return, Lavrov said Russia appreciates and welcomes China's constructive role...

21.11.2023

BRI helps CEEC tap green business in Central Asia

Chinese enterprises led by China Gezhouba Group Overseas Investment Co, an overseas investment arm of China Energy Engineering Corp, recently embarked on a transformative journey to Central Asia, amid the strong push globally for green energy transition.

Earlier this month, a freight train carrying solar modules left Xi'an, Shaanxi province, to...

Chinese enterprises led by China Gezhouba Group Overseas Investment Co, an overseas investment arm of China Energy Engineering Corp, recently embarked on a transformative journey to Central Asia, amid the strong push globally for green energy transition.

Earlier this month, a freight train carrying solar modules left Xi'an, Shaanxi province, to...

21.11.2023

China, Russia extend engagement in Kazakh industry

By the end of this year, 28 projects with a total cost of 256 billion tenge will be implemented in Almaty. This list includes gelatine production, small industrial parks and a school. According to the nationwide pool, companies from China, Russia, Malaysia, Turkiye, Iran, Poland and Kazakhstan are investing in...

By the end of this year, 28 projects with a total cost of 256 billion tenge will be implemented in Almaty. This list includes gelatine production, small industrial parks and a school. According to the nationwide pool, companies from China, Russia, Malaysia, Turkiye, Iran, Poland and Kazakhstan are investing in...

21.11.2023

Chinese company to build logistics hub in Uzbekistan’s Navoi FEZ

A Chinese company will open a logistics hub in a free economic zone (FEZ) in the Navoi region, the press service of the regional administration reports .

As part of his visit to China, the governor of the Navoi region Normat Tursunov visited the Chongqing International Logistics Hub...

A Chinese company will open a logistics hub in a free economic zone (FEZ) in the Navoi region, the press service of the regional administration reports .

As part of his visit to China, the governor of the Navoi region Normat Tursunov visited the Chongqing International Logistics Hub Park and the...

21.11.2023

Kazakhstan eyes to attract Chinese investors for agricultural development

Kazakhstan considers the possibility to attract Chinese investors for the development of agriculture in the country, according to the Kazakh Deputy Prime Minister, Minister of Trade and Integration Serik Zhumangarin. Zhumangarin announced his planned visit to Shenzhen, Jinan, Beijing, and Urumqi to study the neighbouring country's experience.

According to him, the...

Kazakhstan considers the possibility to attract Chinese investors for the development of agriculture in the country, according to the Kazakh Deputy Prime Minister, Minister of Trade and Integration Serik Zhumangarin. Zhumangarin announced his planned visit to Shenzhen, Jinan, Beijing, and Urumqi to study the neighbouring country's experience.

According to him, the...

Europe

21.11.2023

Air Silk Road speeds up trade with EU

A decade ago, Central China's Henan province didn't have an established intercontinental freight route network. Now, rapid growth of the Air Silk Road between Zhengzhou, Henan, and Luxembourg, has made it convenient for Henan consumers to get products delivered to their doorsteps from around the world.

China began to support building...

A decade ago, Central China's Henan province didn't have an established intercontinental freight route network. Now, rapid growth of the Air Silk Road between Zhengzhou, Henan, and Luxembourg, has made it convenient for Henan consumers to get products delivered to their doorsteps from around the world.

China began to support building...

21.11.2023

Rising commerce helps China Southern boost business ties with Europe

Lin Ling is the freight manager of China Southern Airlines' cargo business in Amsterdam, the Netherlands, and the transport of salmon from Europe to China is one of the projects that she has been responsible for.

Amsterdam stands as one of the most important airfreight ports in Europe, and it is...

Lin Ling is the freight manager of China Southern Airlines' cargo business in Amsterdam, the Netherlands, and the transport of salmon from Europe to China is one of the projects that she has been responsible for.

Amsterdam stands as one of the most important airfreight ports in Europe, and it is...

21.11.2023

German firms attract Chinese cash

In the debate on investment and trade with China, German executives are increasingly confronted with public sentiment when making business decisions. In this op-ed, I test the argument that Corporate Germany became dependent on profits from China and show that inferring the generality from the individual case...

In the debate on investment and trade with China, German executives are increasingly confronted with public sentiment when making business decisions. In this op-ed, I test the argument that Corporate Germany became dependent on profits from China and show that inferring the generality from the individual case doesn’t do the...

21.11.2023

European companies set up R&D centers amid China's innovation boom

In recent years, many foreign companies have chosen China as the ideal location to settle their research and development centers to cater to the vast Chinese market demand and serve a larger global market.

In late July, The Laundress, a high-end fabric care brand affiliated with global consumer goods giant Unilever,...

In recent years, many foreign companies have chosen China as the ideal location to settle their research and development centers to cater to the vast Chinese market demand and serve a larger global market.

In late July, The Laundress, a high-end fabric care brand affiliated with global consumer goods giant Unilever,...

South Asia, Middle East

21.11.2023

China's EVE Energy builds new manufacturing facility in Malaysia

China-based global lithium battery manufacturer EVE Energy on Monday held a groundbreaking ceremony for its new manufacturing facility in Kedah, Malaysia, with an initial investment of $422 million.

In a joint statement, the company and Malaysian Investment Development Authority (MIDA) said that the new manufacturing facility, which will be EVE's 53rd,...

China-based global lithium battery manufacturer EVE Energy on Monday held a groundbreaking ceremony for its new manufacturing facility in Kedah, Malaysia, with an initial investment of $422 million.

In a joint statement, the company and Malaysian Investment Development Authority (MIDA) said that the new manufacturing facility, which will be EVE's 53rd,...

21.11.2023

Rashakai SEZ game-changer in Pakistan-China industrial cooperation

The Rashakai special economic zone (SEZ) in the country's northwest Khyber Pakhtunkhwa (KP) province is a game-changer project in industrial cooperation between China and Pakistan, said a Pakistani minister.

"It will not only contribute to the socio-economic progress of the province but the entire Pakistan," Sawal Nazir, minister for local government,...

The Rashakai special economic zone (SEZ) in the country's northwest Khyber Pakhtunkhwa (KP) province is a game-changer project in industrial cooperation between China and Pakistan, said a Pakistani minister.

"It will not only contribute to the socio-economic progress of the province but the entire Pakistan," Sawal Nazir, minister for local government,...

21.11.2023

India raises imports of major commodities from China

The reported rise in India's imports of at least 25 major commodities from China in the 2023 fiscal year reflects its economic dependence on the world's second-largest economy despite its desire to replace China in the global supply chain, an expert told the Global Times on Thursday. 

The 25 major commodity...

The reported rise in India's imports of at least 25 major commodities from China in the 2023 fiscal year reflects its economic dependence on the world's second-largest economy despite its desire to replace China in the global supply chain, an expert told the Global Times on Thursday. 

The 25 major commodity...

21.11.2023

Belt and Road Initiative enhances partnership between China, Brunei

Recently, a container ship loaded with shrimp slices, melons and aquatic products departed from the seaport of Muara in Brunei to Qinzhou Port in South China's Guangxi Zhuang autonomous region, with the cargo to be delivered by rail later to Southwest China for sale.

Muara Port is Brunei's largest port, while...

Recently, a container ship loaded with shrimp slices, melons and aquatic products departed from the seaport of Muara in Brunei to Qinzhou Port in South China's Guangxi Zhuang autonomous region, with the cargo to be delivered by rail later to Southwest China for sale.

Muara Port is Brunei's largest port, while...

Africa, Americas

21.11.2023

Angola's oil, gas projects seek bids from Chinese companies

Angola, a close partner of China and energy producer situated on the west-central coast of Southern Africa, is intensifying its efforts to foster oil and gas cooperation with Chinese companies through bids for new projects. This move aims to leverage the potential of the robust Chinese market.

With support from the...

Angola, a close partner of China and energy producer situated on the west-central coast of Southern Africa, is intensifying its efforts to foster oil and gas cooperation with Chinese companies through bids for new projects. This move aims to leverage the potential of the robust Chinese market.

With support from the...

21.11.2023

China-US trade continues to slide in July

Trade between the world's top two economies slid further in July, latest Chinese customs data showed. The US' purchase of a smaller quantity of made-in-China goods is primarily due to the cyclical decline in demand for electronic products, industry observers said, adding the US' unrelenting trade and tech war has...

Trade between the world's top two economies slid further in July, latest Chinese customs data showed. The US' purchase of a smaller quantity of made-in-China goods is primarily due to the cyclical decline in demand for electronic products, industry observers said, adding the US' unrelenting trade and tech war has...

21.11.2023

McDonald's China bullish on prospects

McDonald's China said it is on track to open a total of 10,000 stores by 2028, propelled by deeper localization in its expansion, digitalization and supply chains, said its top executive.

On the sixth anniversary of McDonald's China's partnership with CITIC Ltd, CITIC Capital Partners and The Carlyle Group, with McDonald's...

McDonald's China said it is on track to open a total of 10,000 stores by 2028, propelled by deeper localization in its expansion, digitalization and supply chains, said its top executive.

On the sixth anniversary of McDonald's China's partnership with CITIC Ltd, CITIC Capital Partners and The Carlyle Group, with McDonald's...

21.11.2023

Brazil’s Vale assures more capital for low-carbon solutions in China

Brazilian mining giant Vale SA has vowed to step up investment in low-carbon solutions along the steel value chain in China, according to its top executive.

The country's demand for steel is expected to remain resilient through 2030, holding significant potential for decarbonization due to its large scale. Decarbonization, in industry...

Brazilian mining giant Vale SA has vowed to step up investment in low-carbon solutions along the steel value chain in China, according to its top executive.

The country's demand for steel is expected to remain resilient through 2030, holding significant potential for decarbonization due to its large scale. Decarbonization, in industry...

21.11.2023

China's CITIC delivers final section of Algeria's landmark East-West Highway project

A landmark Algerian highway built to connect 17 provinces has been completed with China's CITIC Construction delivering its final 84-km segment on Saturday.

As the final leg of the ambitious East-West Highway project, the 84-km project stretches from Drean in the easternmost province of El Tarf to the town of Raml...

A landmark Algerian highway built to connect 17 provinces has been completed with China's CITIC Construction delivering its final 84-km segment on Saturday.

As the final leg of the ambitious East-West Highway project, the 84-km project stretches from Drean in the easternmost province of El Tarf to the town of Raml...

21.11.2023

Trade ties between South Africa, China poised to deepen

China will deepen and expand trade and investment cooperation with South Africa, besides strengthening cooperation in emerging fields, the country's Commerce Ministry said on Thursday.

On Wednesday, Chinese Commerce Minister Wang Wentao met with South African Vice-President Paul Mashatile in Pretoria, the capital of South Africa.

Wang said China and South Africa...

China will deepen and expand trade and investment cooperation with South Africa, besides strengthening cooperation in emerging fields, the country's Commerce Ministry said on Thursday.

On Wednesday, Chinese Commerce Minister Wang Wentao met with South African Vice-President Paul Mashatile in Pretoria, the capital of South Africa.

Wang said China and South Africa...

21.11.2023

Sinohydro restores power in Zimbabwe

Going to bed and waking up in darkness had become the norm for Zimbabweans as the country endured rolling blackouts due to depressed power generation.

But now, according to Zimbabwe's President Emmerson Mnangagwa, the country has sufficient energy following the completion of the China-funded expansion of the Hwange Power Station, the...

Going to bed and waking up in darkness had become the norm for Zimbabweans as the country endured rolling blackouts due to depressed power generation.

But now, according to Zimbabwe's President Emmerson Mnangagwa, the country has sufficient energy following the completion of the China-funded expansion of the Hwange Power Station, the...

21.11.2023

China responds to US restrictions on high-tech investments

China is seriously concerned and reserves the right to take measures in response to US President Joe Biden signing an executive order on Wednesday local time that will block and regulate high-tech US-based investments going toward China, the Ministry of Commerce said in a statement on its official website on...

China is seriously concerned and reserves the right to take measures in response to US President Joe Biden signing an executive order on Wednesday local time that will block and regulate high-tech US-based investments going toward China, the Ministry of Commerce said in a statement on its official website on...

Markets

21.11.2023

Communicating tubes: greenback up, stock markets down

The dollar rose on Friday after a slightly bigger increase in U.S. producer prices in July lifted Treasury yields higher even as speculation grows that the Federal Reserve is at the end of hiking interest rates.

Rebounding cost of services at the fastest pace in nearly a year pushed the...

The dollar rose on Friday after a slightly bigger increase in U.S. producer prices in July lifted Treasury yields higher even as speculation grows that the Federal Reserve is at the end of hiking interest rates.

Rebounding cost of services at the fastest pace in nearly a year pushed the Producer...

21.11.2023

Demand upgrade sends Brent rallying

Oil prices gained ground on Friday amid optimistic demand forecasts from the OPEC producer group and the International Energy Agency (IEA).

Brent crude was up 37 cents, or 0.4%, at $86.77 a barrel at 1413 GMT while U.S. West Texas Intermediate (WTI) crude futures were up 40 cents, or 0.5%, at...

Oil prices gained ground on Friday amid optimistic demand forecasts from the OPEC producer group and the International Energy Agency (IEA).

Brent crude was up 37 cents, or 0.4%, at $86.77 a barrel at 1413 GMT while U.S. West Texas Intermediate (WTI) crude futures were up 40 cents, or 0.5%, at...

21.11.2023

Natural gas benchmarks retreat as LNG supplies look secured

Dutch and British wholesale gas prices mostly fell on Friday morning as the prospect of strikes at Australian liquefied natural gas (LNG) facilities appeared to ease after companies involved began talks to avert industrial action.

The front-month Dutch contract fell by 3.13 euro to 36.72 euro per megawatt hour (MWh) by...

Dutch and British wholesale gas prices mostly fell on Friday morning as the prospect of strikes at Australian liquefied natural gas (LNG) facilities appeared to ease after companies involved began talks to avert industrial action.

The front-month Dutch contract fell by 3.13 euro to 36.72 euro per megawatt hour (MWh) by...

21.11.2023

LNG surges on EU-Asia rivalry view

Asian spot liquefied natural gas (LNG) prices inched up this week as the prospect of possible industrial action at Australian LNG facilities sparked fears it would fuel competition between Asian and European buyers for cargoes.

The average LNG price for September delivery into north-east Asia rose to $11.50 per million British...

Asian spot liquefied natural gas (LNG) prices inched up this week as the prospect of possible industrial action at Australian LNG facilities sparked fears it would fuel competition between Asian and European buyers for cargoes.

The average LNG price for September delivery into north-east Asia rose to $11.50 per million British...

21.11.2023

Bullion veers up amidst weekly dive

Gold prices on Friday were on track for their worst week in seven, hurt by an overall stronger dollar and elevated bond yields as investors digested the latest U.S. inflation numbers and awaited more economic data later in the day.

Spot gold was up 0.3% to $1,917.99 per ounce at 1135...

Gold prices on Friday were on track for their worst week in seven, hurt by an overall stronger dollar and elevated bond yields as investors digested the latest U.S. inflation numbers and awaited more economic data later in the day.

Spot gold was up 0.3% to $1,917.99 per ounce at 1135...

21.11.2023

Ferrous, coal benchmarks score gains on China signal, coal down

Iron ore futures spiked more than 2% on Friday, helped by rising steel mill production in China, although lingering property sector and steel demand concerns continued to weigh on sentiment.

The most-traded January iron ore on China’s Dalian Commodity Exchange ended daytime trade 2.1% higher at 728 yuan ($100.64) per metric...

Iron ore futures spiked more than 2% on Friday, helped by rising steel mill production in China, although lingering property sector and steel demand concerns continued to weigh on sentiment.

The most-traded January iron ore on China’s Dalian Commodity Exchange ended daytime trade 2.1% higher at 728 yuan ($100.64) per metric...

21.11.2023

US wheat, maize contracts depreciate as US exports rise

Chicago soybeans rose on Friday as expectations of higher demand for U.S. cargoes underpinned prices, although the market looked poised for a third weekly decline.

Corn and wheat lost ground ahead of a key U.S. supply-demand report due later in the day.

“Demand for U.S. soybeans is picking up which should provide...

Chicago soybeans rose on Friday as expectations of higher demand for U.S. cargoes underpinned prices, although the market looked poised for a third weekly decline.

Corn and wheat lost ground ahead of a key U.S. supply-demand report due later in the day.

“Demand for U.S. soybeans is picking up which should provide...